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Summary 

This report analyzes the permit process involved in the construction of the Whistling Straits Golf Course and apparent permit violations by the Kohler Company.  It seeks to examine the DNR’s performance relative to the enforcement of their own permits as well as the DNR’s oversight responsibility for the enforcement of Sheboygan County’s Shoreland Zoning Regulations and the Town of Mosel’s Conditional Use Permit. 

The Purpose of this Report 

This is the fifth in a series of reports discussing Governor Thompson’s political control over Wisconsin’s Department of Natural Resources.  

The Governor has now appointed all seven of the citizen members of the Natural Resources Board, which sets policy for the DNR.  In the 1995 state biennial budget, the Governor also made the DNR Secretary a political appointment of the Governor, making the Department the subject of serious political influence.   In the same budget, the Governor eliminated the Wisconsin Public Intervenor Office which advocated for public rights in natural resources and served as watchdog over the DNR and other government agencies.   Subsequent to the Governor gaining this control in 1995, many negative changes have occurred in the DNR.  
  
Each report in this series explores a specific example of these negative changes. 

Introduction  
  
In 1995, the Kohler Company began construction of a links-style golf course in the Town of Mosel in Sheboygan County.  The site of this course consists of more than 600 acres and includes two miles of Lake Michigan shoreline.    After the requisite public meetings, certain permits were granted to the Kohler Company by the Township, the County and the DNR.  Almost immediately these Permits began to be violated seriously and systematically.  For nearly two years citizens complained to the DNR that Kohler was in violation of every permit they held.  George Meyer’s response in April of 1997 was that “My staff are not aware of any current violations of the permits issued.” 1  
  
One of the preceding statements is patently false.  This report will lay out the facts in an attempt to find the truth. 

Background on Kohler 

The Kohler Company, based in Sheboygan Wisconsin, is diversified in plumbing fixtures for the kitchen and bath, furniture and accessories, cabinetry and tile, engines and generators.13 

In addition, the company has extensive operations in resorts, recreation businesses and real estate, including Village Realty in Kohler. 

Specific enterprises include: Kohler Plumbing, Kohler Engines, Kohler Generators, Ann Sacks Tile & Stone, Baker Furniture, McGuire Furniture, and several other furnishings lines.  Recreation outlets include: the American Club resort hotel, Blackwolf Run championship golf, a horse breeding ranch, and Whistling Straits, near Sheboygan. 

The company is actively expanding throughout the world, and now includes 37 manufacturing plants, 20 subsidiaries and affiliates and dozens of sales offices spread over every continent but Antarctica. Recent growth has occurred in Southeast Asia and China.  They have 18,000 “associates.” 

Windway Capital Corporation is a Kohler holding company with diverse interests, including Vollrath Company, in Sheboygan, which manufactures commercial cookware, kitchen assessories and plasticware for the food service and catering industry.  Windway also oversees North Marine Group, Inc. which makes sails and other items for luxury yachts, and other companies which make sailboats.  Windway is listed as a federal Department of Defense contractor. 

The Kohler Company plays a dominant role in the Sheboygan area, including having built the entire Village of Kohler nearby, about 75 years ago, as a planned community for Kohler employees. 

Timeline 

July 1995 ---  The Kohler Company begins construction of the Whistling Straits golf course in Sheboygan  Co. 

August 9, 1995 ---  Town of Mosel issues Conditional Use Permit requiring Kohler to “stabilize the lake bank along the northern portion of its property” and stating that  “Kohler Company will not place any obstructions 
over the now existing beach...” 2 

August 10, 1995 ---  DNR issues Permit #3-SE-95-0445. 

August of 1995 ---  Kohler constructs an earthen berm which is not part of the  DNR Approved Grading Plan. 

August 1995 to July 1996 --- Citizens attempt to learn if the berm is a temporary stockpile of material or if it is meant to be permanent.  No definitive answer is forthcoming from the Kohler Company, Town of Mosel, 
Sheboygan County or DNR. 

Fall of 1995 ---  Kohler constructs revetments (large boulders or “rip-rap”) on the shore of Lake Michigan. 

Fall of 1995 ---  Citizens complain revetments have been placed directly on the public beach in violation of permits. 

September 7, 1995 ---  Citizens complain to the DNR about the apparently unlawful construction of the berm citing obstructed views and concern about the stability of the 60’ bluff and adjacent public highway. 

September 1995 ---  DNR requires Kohler to do a Stability Analysis of bluff. 

October 18, 1995 ---  Analysis done by Woodward-Clyde Consultants concludes that construction of the berm has destabilized the bluff. 

November 30, 1995 ---  DNR engineer writes memo agreeing that the bluff is ready to fail. 

December 4, 1995 --- DNR District Director Gloria McCutcheon denies that DNR staff believe the berm threatens bluff stability. 
May 16, 1996 --- McCutcheon admits the berm was not on original plan, but defers to the Sheboygan Co. Zoning staff claim that the berm is not regulated because it’s “not a structure.”  

April 28, 1997 ---  DNR Secretary George Meyer writes “Based on the reported data, the berm did not threaten bluff stability on adjacent property” and “Kohler should have notified us prior to constructing the berm” and “the berm addition complies with the intent of the permit conditions” and “no corrective action is warranted.”  1 

1998 ---Runoff from berm causes fresh slides on Kohler’s property and on adjacent property.  

March, 1999 --- Kohler Compnay closes the only public access to the beach, with a “No Trespassing” sign and chain across the road. 
 
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