Michigan to receive $159M to clean up former auto sites

LANSING, MI--Governor Jennifer M. Granholm applauded the environmental settlement agreement reached by the Obama administration and the Motors Liquidation Company (Old GM) formerly known as General Motors, that will result in the cleanup and redevelopment of 56 auto properties in Michigan, accelerating the state's Project Phoenix, an effort to redevelop former manufacturing facilities. The new agreement will result in a trust which will provide 14 states and one tribe with more than $641 million to return contaminated properties back to productive use.

''Today marks another important step in Michigan's economic recovery,'' said Granholm. ''Cleaning up these former GM sites will allow new companies a greater opportunity to invest in Michigan and create jobs. I commend the Obama administration and Michigan's economic development team for their work to bring this process to a close, and urge that the court proceedings move as quickly as possible.''

The settlement, announced today by the U.S. Department of Justice addresses Old GM's environmental liabilities under several federal and state environmental laws at the 89 properties still owned by Old GM in Michigan and 13 other states. Under the settlement, an environmental response bankruptcy trust will be established to take ownership and possession of the properties and provide the funding to clean the properties up, administer them, and return them to beneficial use.

Michigan's Project Phoenix program, introduced by the governor in her State of the State address last February, brings the state, current and former property owners, businesses, communities, developers and other parties together to inventory - and promote for reuse- former manufacturing sites. The program includes buildings of 500,000 square feet or more, and land sites of 80 acres or more where former manufacturing facilities already have been demolished. The new trust announced today will provide funding for cleanup of 18 properties involved in Project Phoenix.

Michigan, which has the largest number of properties in the trust, will receive funding to address cleanup in:

Bay City - $3.5 million for one site

Burton - $2.4 million for two sites

Detroit - $183,000 for three sites

Flint - $42.4 million for 9 sites, including just under $33 million for cleanup at Buick City

Grand Blanc - $528,000 for one site

Grand Rapids - $3.75 million for one site

Lansing - $18.6 million for four sites

Livonia - $8.5 million for three sites

Pontiac - $13.9 million for 17 sites

Romulus - $276,000 for one site

Saginaw - $17.8 million for five sites

Van Buren - $3.2 million for two sites

Ypsilanti - $43.5 million for four sites, including $35.7 million for cleanup at Willow Run

Granholm noted that redevelopment of currently unused manufacturing sites could be ideal for clean energy companies looking to take advantage of Michigan's significant tax incentives and skilled workforce.

''Existing manufacturing infrastructure, a well-trained workforce and unbeatable incentives have already led to billions of dollars of investment in Michigan by advanced battery, wind, and solar manufacturers,'' said Granholm. ''The additional sites that will become available to new investors as a result of the environmental cleanup will continue to help Michigan diversify its economy and create new jobs for the 21st century.''

Copyright © 2010 State of Michigan

Published: Thu, Oct 28, 2010

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