Tudor Dixon criticizes using taxpayer funds to lure battery plant project to Big Rapids

Lansing — Republican nominee for governor Tudor Dixon spoke out Tuesday night against using taxpayer funds to lure a Chinese battery parts company that hopes to create 2,350 jobs in northern Michigan.

Dixon, a political commentator and businesswoman from Norton Shores, announced her stance in a video posted on social media as the leaders of the GOP-controlled Michigan Legislature and Democratic Gov. Gretchen Whitmer advanced a spending bill that includes $846 million for the state's economic development fund.

It's possible some of the money could go to the Big Rapids project by Gotion Inc., which plans to invest about $2.4 billion in private funds to construct a manufacturing facility that sprawls across two townships and 19 parcels of land.

Whitmer's administration has not revealed how much money from the state's Strategic Outreach and Attraction Reserve (SOAR) Fund might support the effort.

The Michigan Economic Development Corp. declined a request from The Detroit News on Wednesday to publicly release how much taxpayer money is being offered to Gotion from the SOAR fund for the project. The Right Place, a Grand Rapids-based economic development organization that helped orchestrate negotiations with Gotion, declined comment Wednesday.

But Dixon said lawmakers and Whitmer were working together to "put hundreds of millions of dollars worth of taxpayer money into a Chinese corporation that will be building a battery plant in the state of Michigan."

"Your taxpayer dollars should be used to make sure your kids are getting a world-class education, you have a reliable infrastructure, that you have safe cities, but now we're seeing taxpayer dollars go into an adversary, a Chinese corporation."

Maeve Coyle, spokeswoman for Whitmer's reelection campaign, said it was "disappointing to see Tudor Dixon threaten and undermine bipartisan economic development tools that are already helping to create thousands of good-paying jobs across the state."

"Gov. Whitmer worked across the aisle and with the business community to boost the state’s economic competitiveness, and Michigan has seen unprecedented economic growth and landed some of the largest business expansion projects in the state’s history," Coyle said. "Her strong record of bringing Republicans and Democrats together to create jobs has earned her the endorsement of business groups like the Michigan Manufacturers Association."

A spending bill that passed the Michigan Senate on Wednesday included $846 million for the SOAR fund, which was set up in December to lure large economic development projects. That fund could be tapped to help subsidize the Gotion project near the Big Rapids airport and U.S. 131.

On Monday, three local government boards gave unanimous approval to a 30-year property tax exemption for the $2.4 billion battery parts facility.

"All these great things, who could be against it?" said Jerry Everett, a trustee for Big Rapids Township, on Monday night. Everett did express some discomfort with how quickly local government boards were asked to approve the tax exemption zone.

According to The Right Place, Gotion chose Michigan over six other states: Ohio, Georgia, Illinois, Kentucky, South Carolina and Texas.

The plant is expected to produce cathode and anode precursor components for a final assembly plant elsewhere in North America that has not yet been announced.

An application for a 30-year property tax break estimated Gotion will create 586 jobs in the first year of operation, or through 2024; 556 in the third year of operation; and 723 in the fifth year of operation, or through 2028. Gotion expects total employment at the plant to reach 2,350 full-time jobs by 2031.

While the publicly traded company was founded in China in 2006, Gotion's U.S. subsidiary was incorporated in California since 2014 and its board is one-third German, one-third American and one-third Chinese, said Chuck Thelen, vice president for Gotion Global.

It also has locations in Ohio, Singapore, Japan and Germany. Volkswagen AG holds about 26% of Gotion's shares and is considered its largest shareholder.

Asked about Dixon's comment, Senate Appropriations Chairman Jim Stamas, R-Midland, said the Gotion project had not come before the Senate Appropriations Committee.

The Senate and House appropriations committees eventually have the power to authorize SOAR money for specific projects. The system is transparent and provides accountability, Stamas said.

"That's exactly why I have supported the SOAR process," Stamas said.

Lawmakers put $1 billion into the SOAR fund in December 2021. But after allocations for General Motors Co.'s electric vehicle investments and upgrades to Ford Motor Co. plants, there's about $230 million remaining in the program with more job-creation projects on the horizon.

Wednesday's session comes 89 days after the House and Senate approved a record $76 billion state budget for the fiscal year that begins Saturday. That spending plan included $1 billion for special projects.

A Detroit News investigation earlier this month found that the spending spree was orchestrated largely behind closed doors with taxpayer money being directed to benefit private real estate developers and other businesses, campaign donors and political interest groups, such as unions.

cmauger@detroitnews.com