BY KIRSTEN BRAUCHLI of the Shpeherd Express

Campaign contributions and Gov. Tommy Thompson's control of the state's Department of Natural Resources lie behind the DNR's failure to enforce restrictions in building permits during construction of the Kohler Company's luxurious Whistling Straits golf course on a bluff overlooking Lake Michigan, according to a new "DNR Watch" report by the Natural Resources Accountability Project.

Permit violations include construction of a berm that obstructs lake views and elimination of legally required public beach access.

"We feel this is another example of many, of the influence of wealth and power in government," said Rebecca Katers, a member of the Accountability Project.

According to the report, the Kohler Company began violating DNR permits one month after construction began.  In July 1995, Kohler started constructing Whistling Straits on a 600-acre property that includes two miles of Lake Michigan shoreline.  In August the  Town of Mosel issued a Conditional Use Permit requiring Kohler to "stabilize the lake bank along the northern portion of its property." 

The town also stipulated that "Kohler Company will not place any obstructions over the now existing beach."  By fall, residents noticed that Kohler had piled boulders that not only obstructed, but completely obliterated, the beach.

In August an unapproved berm was constructed on the north end of the property.  According to the report, the berm is "800 feet long and approximately 15 feet high and includes a concrete bunker-style toilet building."  Besides eliminating views of Lake Michigan for many neighbors, it is a public safety risk, the report says.

The report says the "northern end of the berm falls within several feet of the top of a 60-foot high, actively-eroding bluff on Lake Michigan at a point where Kohler's property adjoins the neighbor to the north and County Highway LS."  The berm has continuously caused slides and could threaten the highway.  According to NRAP's report, citizens complained to the Town of Mosel, Sheboygan County and DNR about the obstructed public beach and the instability of the bluff due to the berm.

By October 1995, after the DNR required Kohler to perform a stability analysis of the bluff, Woodward-Clyde Consultants confirmed that the berm had destabilized the bluff.  DNR engineer Lynn Togerson issued an internal memo stating, "the bluff is in a state of impending failure."

Despite the engineering report, NRAP says DNR District Director Gloria McCutcheon  wrote: "Our staff does not believe that construction of this berm significantly threatens  bluff stability ..." Kohler has defended itself by stating that a berm is not a  structure -- therefore it is not covered under the County's Shoreland Zoning Ordinance.

The report says McCutcheon admitted the berm was not part of the original plan, but  claimed the berm was not regulated because it was not a structure.

McCutcheon and three DNR staff members -- Jim Morrissey, Chip Krohn and Vic  Pappas, who worked closely on the Kohler project -- responded to the allegations during a phone interview with Shepherd Express.

Pappas discussed neighbors' complaints about obstructed views.  "Usually the shoreline setback requirements and loss of view applies to the view of water to land.  not the other way around.  We were not sure it applied in this case.  Our review had  more to do about the environment and water, not personal property issues.  We  suggested that they possibly contact a lawyer about their personal property rights."

 DNR Secretary George Meyer also responded to the Shepherd Express in a phone  interview, vehemently denying allegations that Kohler's contributions to the governor  had anything to do with political pressure on DNR not to strictly enforce the building  permits.

 "There was never any political pressure by the governor or by Kohler, and any  comments to that effect are totally inaccurate and untrue," Meyer said.

 "You know, a lot of people give money to the governor.  That does not mean favors are  being granted," Meyer said.  "There is no linkage between contributions and decisions  made by the DNR, and allegations like this only impugn the ethics and integrity of many   people in the DNR.  If we were not public officials, this would be legally actionable."

The most recent violation, according the report, occurred earlier this month when   Kohler closed the only public access to the beach with a "No Trespassing" sign and  placed a chain across the road.  State law requires that a developer must provide one  public access to the shore for every half-mile of shoreline owned.  There are currently  no public access points.

 McCutcheon and other DNR staff members said they were unaware of this recent  closure.

"We take pride in the integrity of our staff in the Southeastern region," McCutcheon  said.  "We made all of these decisions in this southeastern region and have used the  same standards on every project in review and approval."

Katers of the Accountability Project said many citizens in the area support the group's  efforts but are unwilling to publicly criticize the company.

"Everybody is afraid of Kohler Company here," Katers said.  "They really have total  dominance over this entire area and the people who reside in it.  Some of these  residents are very bitter about the limited fishing access and the lack of public access  to the beach, but will not publicly and vocally support us because their wives, brothers  and sisters work for Kohler."

Between January 1990 and October 1998, the Kohler family has contributed $67,918  to campaigns for governor, lieutenant governor and state Legislature.  Terry Kohler, a  former Republican gubernatorial candidate, and his wife Mary also have been major  contributors to national conservative campaigns.  According to the report, through  Windway Capitol Corporation they were the top contributors to Newt Gingrich's  re-election campaigns and his political action committee GOPAC, giving $816,107  over 10 years.

Legislative donations from 1993 through August 1998 and donations made to Gov.  Thompson from 1990 through October 1998 by Kohler employees totaled $88,569.   Because of soft-money contributions, issue campaigns and funneling money through  political parties, these figures may be a gross underestimation.

Katers said removing politics from environmental regulation was necessary in order to  restore integrity to the process.

"We need to have campaign finance reform, de-politicize the DNR and restore the  public intervenor [as an independent watchdog over environmental projects]," Katers  said. "We had a long history of scrupulously honest government with high expectations  before this last decade."