St. Joseph County launches external investigation into planning officials amid controversy over proposed trail

ST JOSEPH, Mich. -- St. Joseph County officials have launched an independent investigation into two county officials in-part in response to allegations of financial mismanagement tied to the now-shelved Midwest Continental Divide Trail project.

The proposed Midwest Continental Divide Trail would connect approximately 160 acres of forests, parks and hiking trails throughout St. Joseph County as an ecotourism destination. 

When first introduced, the project received public support, according to St. Joseph County Commissioner Carl Baxmeyer.

That support has since eroded following months of delays, public concern over potential use of eminent domain and questions about how project funds were spent.

At a July 6 public meeting in North Liberty, residents voiced concerns that the county could acquire private property for the trail through eminent domain. Baxmeyer said he does not believe the proposal gave the county that authority.

"There are claims that the commission can come and put a trail through my property, and if I don't want to sell, they can use it," Baxmeyer said. "The way it's written, it doesn't really give the authority."

During the same meeting, St. Joseph County Surveyor Derek Dieter accused county officials of misusing public funds connected to the project.

Dieter pointed to a 2024 memorandum presented by Schalliol to the county Redevelopment Commission authorizing a contract not to exceed $300,000. He alleged an additional $75,000 was later added to the contract without public knowledge.

Part of that funding was used for a contract with Community Redevelopment to complete a land study related to the proposed trail.

Dieter said the financial transactions exceeded what had originally been approved and questioned the handling of public funds. 

He emphasized he was raising the concerns as a private citizen, not in his role as county surveyor.

Despite the funding for studies, no final trail map was ever presented to the public before the proposal was ultimately tabled.

The allegations prompted the St. Joseph County Board of Commissioners to authorize an independent investigation into economic development director Bill Schalliol and area plan director Shawn Klein.

Baxmeyer said he does not believe Schalliol intentionally acted improperly.

"There are claims that certain people, especially our economic development director, cut some corners," Baxmeyer said. "That’s not true, in my opinion."

Dieter has also publicly criticized Schalliol on social media but said he does not believe his Facebook posts directly prompted the investigation.

"I think he's in a bad spot," Dieter said. "I think he has too many irons in the fire, and at this point, I disagree with some of his decisions."

In a statement, the St. Joseph County Board of Commissioners said the investigation is intended to ensure transparency and public trust.

"When concerns arise regarding the actions of appointed officials, we have a duty to ask questions, review the facts and, if necessary, take appropriate action to restore confidence in the process," the statement read. "Accountability is not punitive; it is an essential part of good governance."

Schalliol declined an interview. He referred questions to the Board of Commissioners and said he has not retained an attorney and has not been advised to do so.