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What’s wrong with public-private economic development?
From Detroit to rural Mecosta County, public-private economic development corporations are selling Michigan communities to multinational corporations, using state taxpayer funding.
What economic developers are supposed to do
Economic development corporations, or EDCs, were initially designed and implemented as non-profit organizations that promote economic development within a targeted geographic area, for a targeted purpose, without profiting off the venture.
The Michigan Economic Development Corporation (MEDC) is under the same mission as the purely public kind–to uplift communities by supporting targeted development, without profit–but with more cash to work with, to be able to do bigger projects.
Michigan has experienced the influence of such economic development since 2008, in the form of the MEDC’s “Pure Michigan” campaign, which is also the slogan for the MEDC. The Pure Michigan campaign received $45 million in public funding in 2008 under Governor Granholm, and has since maintained annual advertising budgets of over $20 million per year.
What the Michigan Economic Development Corporation (MEDC) is actually doing
Today, the MEDC more closely resembles a welfare agent for billionaires and unvetted foreign investments than it does a non-profit EDC making targeted investments to benefit the community. With the help of local public-private economic development partners, such as The Right Place and MAEDA, the MEDC has been unilaterally demolishing communities, using billions in taxpayer dollars, under the banner of economic development.
The regulatory capture of EGLE
Michigan’s Department of Environment, Great Lakes, and Energy (EGLE) is the state’s regulatory agency for environmental regulation, including permitting. You may have seen their representatives on news clips, or in articles, talking about cleaning up toxic waste out of our watersheds.
Unfortunately, EGLE has not been proactive in doing the most basic of due diligence on these EV megasites, let alone protecting our vulnerable watersheds from industrial development. In Marshall, EGLE allowed MAEDA, to come in and take out all of the trees–before EGLE’s field workers came out to check the site for nesting bats. In Big Rapids, residents demanding to see environmental impact studies on the Gotion plant are being told to talk to EGLE, whose people shrug and simply say that permits have not yet been filed.
State Funding Key Players
Local economic development corporations
These private-public economic development corporations spearhead the MEDC’s targeted investments, such as the manufacturing megasites. They include The Right Place (Gotion), Marshall Area Economic Development Alliance (Ford BlueOval/CATL), and Flint and Genesee Economic Alliance (Mundy AMD).
Michigan Economic Development Corporation
The MEDC is the state of Michigan’s private-public economic development corporation, which has been spearheading megasite developments and other large, risky investments across the state.
Michigan Department of Environment, Great Lakes, and Energy
Michigan Department of Environment, Great Lakes, and Energy
EGLE is the regulatory agency responsible for providing the permits these developers need for air, water, soil. EGLE also regulates the development of wetlands, lakes and rivers, and of water consumption.
Local township boards
Michigan State House Appropriations Committee
Michigan Department of Environment, Great Lakes, and Energy
Local township supervisors and board members play a key role in these taxpayer subsidized projects. Many local officials have been recalled for signing NDAs with developers. Local townships often control the zoning which the MEDC’s local developers need in order to begin building.
Local county commissions
Michigan State House Appropriations Committee
Michigan State House Appropriations Committee
Local county commission boards can play a key role in these projects as well by providing or reserving their adoption of support or by paving the way to access municipal utilities. The county also provides key permits, such as soil erosion and sediment control, water and drain permits, and other areas of county-level jurisdiction.
Michigan State House Appropriations Committee
Michigan State House Appropriations Committee
Michigan State House Appropriations Committee
Before the MEDC MSF board’s funding packages can go into effect, they must be approved by legislators. Bills must pass in the House first, before going on to the Senate.
Michigan State Senate Appropriations Committee
Michigan State Senate Appropriations Committee
Michigan State Senate Appropriations Committee
Michigan’s Senate has the final say on whether or not to approve the MEDC’s taxpayer funding packages. So far, state legislators have approved over $540M in funding for Gotion, $715M for Marshall, $259 for Mundy, and billions for other similar projects across the state.
Michigan has spent $1B on EV, battery plants. So far, they’ve created 200 jobs (Bridge MI)
Michigan’s stake in the EV transformation includes $1 billion already spent on five subsidy awards, including Ford Motor Co.'s battery plant in Marshall. So far, the projects have created fewer than 200 jobs. Payback for the taxpayer-funded incentives could take longer than expected due to slower-than-expected sales growth. (Bridge photo by David Ruck)
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