By Liz Nass
Gongwer News Service
The Department of Attorney General is stepping in to collect funds granted to Gotion, Inc., for a project the Michigan Strategic Fund declared in default last year.
Gotion, Inc., the company behind the battery plant in Green Charter Township outside of Big Rapids, has been asked to repay the $23.7 million in Site Strategic Readiness Plan grant dollars disbursed to the company.
The Michigan Strategic Fund first issued a notice of default in September with 30 days to resolve the default events, which was a lack of activity at the work site for 120 days.
In a Friday letter, the Department of Attorney General said the matter has been referred to the agency by the Michigan Strategic Fund.
“You were provided 30 days to cure the events of default. You have failed to do so,” the letter says. “As a consequence, the Michigan Strategic Fund is now seeking the immediate repayment of $23,670,873.56 of SSRP funds.”
The letter asks the company for payment within 30 days.
Danielle Emerson, spokesperson for the Michigan Economic Development Corporation, said they have been working to brief the attorney general’s office to coordinate the return of the balance, “in order to put the state in the strongest position for repayment.”
Now, Gotion has 90 days to repay the amount in full with no additional penalties, Emerson said.
“MEDC will continue to pursue the rights and remedies MSF is entitled under the agreement if there has not been a full repayment at the end of that 90-day period,” she said in a statement.
The $2.36 billion EV battery plant was approved for incentives in 2022 and planned to be built in Green Charter Township near Big Rapids. The battery components manufacturing facility was projected to bring 2,350 jobs to the region.
The attorney for Gotion, Mark Heusel, previously blamed the local opposition for the default in response to the MEDC.
Gongwer News Service
The Department of Attorney General is stepping in to collect funds granted to Gotion, Inc., for a project the Michigan Strategic Fund declared in default last year.
Gotion, Inc., the company behind the battery plant in Green Charter Township outside of Big Rapids, has been asked to repay the $23.7 million in Site Strategic Readiness Plan grant dollars disbursed to the company.
The Michigan Strategic Fund first issued a notice of default in September with 30 days to resolve the default events, which was a lack of activity at the work site for 120 days.
In a Friday letter, the Department of Attorney General said the matter has been referred to the agency by the Michigan Strategic Fund.
“You were provided 30 days to cure the events of default. You have failed to do so,” the letter says. “As a consequence, the Michigan Strategic Fund is now seeking the immediate repayment of $23,670,873.56 of SSRP funds.”
The letter asks the company for payment within 30 days.
Danielle Emerson, spokesperson for the Michigan Economic Development Corporation, said they have been working to brief the attorney general’s office to coordinate the return of the balance, “in order to put the state in the strongest position for repayment.”
Now, Gotion has 90 days to repay the amount in full with no additional penalties, Emerson said.
“MEDC will continue to pursue the rights and remedies MSF is entitled under the agreement if there has not been a full repayment at the end of that 90-day period,” she said in a statement.
The $2.36 billion EV battery plant was approved for incentives in 2022 and planned to be built in Green Charter Township near Big Rapids. The battery components manufacturing facility was projected to bring 2,350 jobs to the region.
The attorney for Gotion, Mark Heusel, previously blamed the local opposition for the default in response to the MEDC.
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