Big Rapids Twp. eyes life after Gotion; could cash in on state-bought land

• Gotion Inc.’s plan to build a battery factory in an industrial park near Big Rapids included buying two homes on the edge of the property
• After Gotion changed its plan, an economic development group bought the houses anyway and is offering to sell the land to the township for $1 
• Officials hope the additional land will jump-start efforts to find new industry for the region

BIG RAPIDS — Two years after intense public scrutiny drove Gotion Inc. to abandon plans to build a $2.36 billion battery plant in an industrial park here, Big Rapids Township wants to put out the word that it’s still a good place for business investment. 

“We want good industry,” Township Supervisor Bruce Borkovich told Bridge Michigan. “We want industry that doesn't negatively impact our environment, and we want industry that's safe.”

And there’s another condition. “The board wouldn't be in favor of industry where the business is going to be controlled by the Chinese Communist Party.”

Ironically, a 2-acre plot of land that was supposed to be part of the Gotion development could help jump-start the township’s efforts. The land, occupied until recently by two homes, may only cost $1. 

State funding

The tale of the 2 acres begins in October 2022, when Gotion received $175 million in state economic development funding. 

The grants included $125 million for the company to fulfill promises to hire 2,300 workers and $50 million for land acquisition and other site spending. 

The money was to come from the Strategic Outreach and Attraction Reserve (SOAR) fund, Michigan’s largest economic development subsidy program, which has funneled over $1 billion to business growth efforts.

Related:

• Warning of China threat, Trump and Michigan Republicans bash EV battery plant
• Where mega battery, EV projects stand after $1 billion in Michigan subsidies
• New scrutiny challenges Michigan's investment in Gotion EV battery plant
• Jobs v. China: How politics, communist ties roiled $2.3B Gotion plan in Michigan

In part because of the Gotion deal, SOAR has faced criticism and scrutiny from both Republican and Democratic legislators, with both parties vowing reforms to broaden subsidy spending from specific corporations and add transparency measures so that lawmakers know exactly how the money is spent. 

Gov. Grechen Whitmer is still battling to get additional SOAR funding in her budget after the program expires this year. 

At the time of Gotion’s award, the company had sought to build along 18 Mile Road, the border between Big Rapids and Green Charter townships, using land from both.

But scrutiny from Big Rapids Township over several issues — including US-based Gotion’s ties to its Chinese parent company and whether the company posed a safety threat — influenced the company to solely choose Green Charter Township. That is where the battery maker bought 264 acres with state money from the $50 million award.

Left behind, however, were Gotion’s plans to use state SOAR money to buy two homes nestled next to the other township's industrial park. 

The Right Place, which was contracted with the Mecosta County Development Corp. to lead economic development in the community, said it decided to still buy the land from two owners for $275,000 each. 

The deals closed in August 2023, six months after Gotion pulled out of the township. The funding came to the Right Place from the Build Ready Sites program of the Michigan Economic Development Corp (MEDC). 

The move kept the homeowners from “being stranded” between an industrial park and the planned massive battery component complex, Randy Thelen, CEO of The Right Place, told Bridge.

“We wanted to avoid having two homes in the center of an industrial area,” Thelen said. 

The county’s economic development group made the purchase with state funds transferred by The Right Place. 

The Mecosta Community Development Corp. doesn’t want to own property as it figures out its own future, board member Mark Gifford, Big Rapids city manager, told Bridge. 

The group approached the township with the potential $1 purchase option, saying it is seeking legal approval to move forward with a deal. Gifford called the land transfer “the next logical step.”

If the deal closes, it will coincide with a new township administration launching a community effort to attract “the right development” to the 135 acre vacant commercial site.

The effort to focus on business growth could counter the community upheaval and divisiveness caused as a result of Gotion’s plans to build in the county, the Big Rapids township supervisor said. 

“We're not at all anti-business or anti-industry,” Borkovich told Bridge. 

“We want to develop that industrial park,” he said. “It will provide jobs. It will provide us with a tax base.”

Moving forward

Gotion has indicated that it still plans to build its battery component factory, but community backlash continues. Gotion did not reply to a Bridge request for comment. 

The anti-Gotion movement went from local rallies to becoming part of the 2024 presidential campaign, including a visit by now-Vice President J.D. Vance, who accused Democrats of “ helping China destroy and replace our auto industry from the inside out.” 

Supervisors in both Green Charter and Big Rapids townships were replaced in recall votes, as well as leadership on the Mecosta County Board of Commissioners.

And Gotion sought legal remedy, suing Green Charter Township after newer elected officials reversed agreements affecting the planned factory and started a local planning commission to make building decisions. Litigation is in the Court of Appeals. 

There’s still “a pretty strong majority in the county that are against the Gotion project,” Borkovich of Big Rapids Township said. 

Using state funds to acquire the 2 acres and move it to the industrial park is consistent with the state build-ready sites grant used to acquire the property, Thelen said. The Right Place consulted the state in making the decision, he added. 

The township’s industrial park “has been marketing its land for free for many, many years,” Thelen said. 

But Borkovich and community development leaders hope that they soon can reverse that. Local reports say there’s interest in a portion of the industrial park, and Brokovich called the possibility of adding 2 acres “strategic” due to their road frontage.

The township board is waiting for the Mecosta economic development group to finalize a proposal, Borkovich said.