Charlevoix City Council member's husband scheduled for court

CHARLEVOIX — An investigation and eventual charges that have included efforts on the part of the Department of Homeland Security, the U.S. Coast Guard, the Department of Natural Resources and the Charlevoix County Prosecuting Attorney’s Office may be coming to a close next month.

John Kalbfell, Charlevoix City Council member Janet Kalbfell’s husband, will be in court on June 28 to face charges for economic crimes against the city. The charges specifically surround a commercial boat slip leased in the public marina. According to Charlevoix County Prosecuting Attorney Allen Telgenhof, a plea deal has been offered.

More:Coast Guard: Charlevoix council member's business under investigation

More:John Kalbfell charged with economic crimes against City of Charlevoix

John was arraigned in district court on Jan. 25, pleading not guilty to two counts of charter and livery boat general violations and one count of false pretenses — $20,000 or more but less than $50,000.  

The false pretenses charge is a felony with penalties up to 15 years in jail and/or $15,000 or three times the value of the money or property involved, whichever is greater. The two counts of general violations are misdemeanors with penalties up to one year and/or $1,000. 

The charges stem from an investigation led by the U.S. Coast Guard into the charter boat company, Little Traverse Charters, owned by the Kalbfells, and the use of a commercial boat slip at the city’s public marina, according to U.S. Coast Guard Detective Tom Swanson.  

An affidavit stated probable cause to believe that John used a false pretense to obtain a three-year commercial lease contract with the city in 2017.     

According to city officials, John was also awarded the contract again in 2020 due to a city policy favoring those who had previously been awarded contracts.    

Because of the existence of the contracts, John paid $4,100 per year for 2017-2019 and $6,150 for 2020 and 2021 for a slip in the city marina, for a total of $24,600.    

According to the City of Charlevoix, the rental rate for a comparable slip for the years 2017-2021 would have been $52,809.    

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The loss in revenue for the City of Charlevoix and the value of what was obtained by John (in the event it could have been obtained otherwise), is $28,209, according to the affidavit.    

Janet Kalbfell — who is running unopposed for reelection as Charlevoix’s Ward 1 city council member in November — is co-owner of Little Traverse Charters. At the time of publication, she has made no public comment on her husband’s charges. 

The Kalbfells were able to continue leasing the commercial boat slip from the city until earlier this month. After postponing their action to terminate Little Traverse Charter’s commercial boat slip lease at a March council meeting, city council formally offered the company an opportunity to voluntarily relinquish its claim to the commercial slip on or before May 4.  

According to city manager Mark Heydlauff, after some back and forth, the termination agreement was eventually accepted by the Kalbfells.