GREEN CHARTER TWP., Mich. (Michigan News Source) – Despite receiving $50 million in taxpayer dollars for Gotion, Inc., their economic development partner “The Right Place” and the Chinese-linked company have managed to create just three jobs.

According to documents released through a FOIA request to EDRA of Michigan (Economic Development Responsibility Alliance) that wasn’t fully fulfilled, Michigan’s prized “green energy” darling has made more excuses than hires since receiving their taxpayer dollars.

Abandonment issues and backdated promises.

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In a letter dated June 18 and sent to Michigan state legislators and Mecosta County Commissioners, EDRA accuses Gotion and The Right Place of being in breach of contract with their state taxpayer- subsidized SOAR grants and Renaissance Zone and says that they have received new evidence of default and project mismanagement on Gotion SSRP grants.

In their letter, they say that the SSRP (Strategic Site Readiness Program) grant, administered by the Michigan Economic Development Corporation (MEDC) has terms that clearly state that if a project halts for 120 days, it counts as abandonment.

According to Gotion’s own report, EDRA points to activities slowing for at least six months in FY24 due to a lawsuit. Add to that no compliance certificates for 2023 (a legal requirement by the state), no verification of Milestone certifications (formal project progress checkpoints), and environmental reports dated a full nine months after officials claimed the site had already been assessed.

Possibly the most eyebrow-raising nugget in the whole mess according to EDRA: the second $25 million payment was issued before Milestone 2 documentation was even submitted. The state handed over the check on March 26; the paperwork came in on March 28.

Downsizing and dodging accountability.

Originally touted as a 528-acre mega-development, the project is now reportedly only 270 acres – complete with wetlands and a floodplain. Yet, somehow, no one at the MEDC thought this worthy of a red flag. Meanwhile, community opposition has been glossed over, and EDRA says the MEDC still hasn’t addressed several key concerns raised in their May letter of demand.

Taxpayers left holding the (empty) bag.

With compliance failures, misrepresentations, and environmental red flags stacking up, the project appears to be floundering – if not outright defaulting and EDRA is urging Mecosta County commissioners and Michigan lawmakers to step up and hold Gotion and The Right Place accountable before more public money disappears into this electric rabbit hole.

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In the concluding paragraph of their letter, EDRA states, “To legislators: it’s clear that these grants are not being executed in good faith. The Right Place and Gotion’s flagrant violation of the terms of their

contract undermine the integrity of our state’s democracy. The MEDC works for Michigan taxpayers, and they answer to you. We ask that you insist the MEDC uphold the contract terms by initiating default proceedings.”

Michigan News Source contacted the MEDC for comment on the letter but has not yet received a response.