Lansing — A single vote made the difference Thursday and provided Michigan lawmakers’ final approval of $175 million in incentives for Gotion Inc.’s much-debated electric vehicle battery plant near Big Rapids.
The Senate Appropriations Committee voted 10-9 to approve the transfer of state tax dollars, allowing state officials to move forward with spending the money to bring a $2.4 billion EV battery parts facility to Green Township and an estimated 2,350 jobs.
Supporters, including Gov. Gretchen Whitmer, have touted the plans as “the biggest ever economic development project in Northern Michigan.” But opponents have protested the effort, voicing concerns about environmental impacts on a rural area of the state and about the company’s connections to China.
The 10 yes votes came from Democratic lawmakers. The no votes came from three Democrats and six Republicans. After the hour-long meeting Thursday, Senate Appropriations Chairwoman Sarah Anthony, D-Lansing, said Democrats were looking out for “all Michiganders.”
“If you have actually been into this area, it’s one of the poorest communities in the state,” Anthony said. “So I think that it is a point of privilege for individuals to say that good paying jobs … for a very rural, very low-income area should not be considered with due diligence.”
But opponents, including Michigan Republican Party Chairwoman Kristina Karamo, repeatedly focused on Gotion’s ties to China, saying they had national security concerns about the company controlling land in Michigan.
“If you choose to give these funds to Gotion, you are a Benedict Arnold. You are a traitor to this republic,” Karamo told lawmakers, referring to the Revolutionary War officer who defected to the British.
Gotion was founded in China in 2006, but its U.S. subsidiary has been incorporated in California since 2014. Volkswagen AG owns about 26% of the company. Its board is one-third German, one-third American and one-third Chinese.
After the committee meeting, Karamo thanked the three Democrats who opposed the transfer and said there needs to be recall campaigns again individuals who supported it.
The three Democrats who voted no were Sens. Rosemary Bayer of West Bloomfield, Jeff Irwin of Ann Arbor and Sylvia Santana of Detroit.
Before the vote, Jerrilynn Strong, chairwoman of the Mecosta County Board of Commissioners, said a “small but vocal” group of opponents was against the project. However, the board of county officials was supportive, she said.
“I believe this project will be critical to the future of our region and our state,” Strong told lawmakers.
Quentin Messer, CEO of the Michigan Economic Development Corp., has argued that if the Gotion facility doesn’t locate in Michigan, it will simply choose another state in the U.S.
“If it’s going to happen in the U.S., why wouldn’t we want it to happen in Michigan?” Messer asked earlier this month.
But Marjorie Steele, a Big Rapids resident, said there were clear security risks posed to her community by the development.
“Your votes today, senators, are lines drawn in the sand,” Steele told lawmakers.
U.S. Rep. John Moolenaar, R-Caledonia, labeled the Senate committee’s vote a “historic mistake.”
“This proposed facility will be 100 miles from Camp Grayling where the Michigan National Guard has trained military partners from Taiwan to prepare for possible CCP (Chinese Community Party) aggression,” Moolenaar said. “Yet, Michigan’s state government leaders are siding with CCP-affiliated companies.”
Overall, the project is slated to receive more than $800 million in incentives, including the $175 million approved by senators on Thursday. The House Appropriations Committee previously authorized the transfer.
Of the $175 million, lawmakers agreed to send $125 million to the Critical Industry Program, which paves the way for the money to go to Gotion. The rest, $50 million, goes to the Strategic Site Readiness Program to improve the site for the development.
Green Township Supervisor Jim Chapman labeled Thursday’s vote “another monumental step forward on our journey to bring thousands of good-paying jobs to the Big Rapids area.”
“Our local businesses will have more customers,” Chapman said. “Our families will have more good-paying jobs.”
Gotion has said in its application for a property tax exemption, it expects an annual average wage at the facility of $61,995, about 35% higher than Mecosta County’s median household income ($45,797) in 2020, according to Census Bureau data.
cmauger@detroitnews.com
Staff Writer Beth LeBlanc contributed.