LANSING — A Jan. 25 memorandum from the Michigan Economic Development Corporation (MEDC) to the Board of Directors of the Michigan Strategic Fund (MSF) included details of requests from General Motors and Ultium Cells.

The request summary of the memo states that the request is for incentive assistance of expansions in the city of Lansing and Orion Township. The requests include:

— GM has requested a $600 million Critical Industry Program (CIP) grant to create a minimum of 3,200 jobs with a potential for up to 4,000 new jobs related to GM and Ultium expansion.

— Ultium requested a Renewable Energy Renaissance Zone for a period of 18 years or an MSF Designated Renaissance Zone in the event the State Administrative Board does not approve the Renewable Energy Renaissance Zone on or before December 31, 2022, which will require a minimum investment of $1.5 billion with the potential for up to $2.5 billion (“Renaissance Zone Request”) and;

— LEAP (Lansing Economic Area Partnership) Request — Strategic Site Readiness Program (SSRP) Grant of $66.1 million for public infrastructure and utility upgrades.

A Jan. 25 MEDC release declared:

“Gov. Gretchen Whitmer today joined General Motors CEO Mary Barra, union officials, elected officials, and local and state leaders to announce a historic investment that will secure the automotive manufacturer’s commitment to creating an all-electric future, and 5,000 new and retained manufacturing jobs, in Michigan. The $7 billion investment includes a $4 billion investment to convert GM’s Orion Township assembly plant for the production of full-size EV pickups and up to $2.5 billion to build Ultium’s third U.S. battery cell plant in Lansing, growing the state’s global leadership in electric vehicle and advanced battery production.”

While the deal has been touted by Governor Gretchen Whitmer and the MEDC as a historic win for Michigan that will create 4,000 new high-paying jobs and $6.5 billion in permanent investment, the Mackinac Center for Public Policy on Feb. 23 said the actual agreement brought before lawmakers falls short of the public promotions.

While meeting with the House Appropriations Committee to discuss details of the $666 million corporate welfare deal with GM, stated the Mackinac Center, MEDC representatives revealed that the deal creates fewer jobs and demands less from the auto giant than taxpayers were led to believe.

The deal would allow GM to create 20% fewer jobs, invest less than half the dollar amount and get out of the agreement six months after it hits the reduced targets.

The Mackinac Center report stated that combining all the company-specific benefits the government has given GM in this deal, Michigan taxpayers will underwrite almost 30% of GM’s minimum capital investment in the Lansing and Lake Orion facilities.

“This is an exorbitantly higher rate than agreements other states have struck with automakers and large-scale manufacturers,” the report states. “It also underscores the high price Michigan pays for our state’s long-term inattention to its mediocre business climate.”

The Jan. 25 memo from the MEDC states that on Dec. 20, 2020, Whitmer, in collaboration with the legislature, labor leaders, economic development agencies and various business groups, signed a package of economic incentives that will allow Michigan to compete for, and win, transformational projects like this investment by GM and Ultium that will bring economic opportunity and security to regions and communities across the state.

Michael LaFaive, senior director of fiscal policy at the Mackinac Center for Public Policy called the MEDC’s actions outrageous.

“It is outrageous,” he said, “that the MEDC sat before the House Appropriations Committee this morning (Feb. 23) and demanded the members write them a $666 million check to pass through to GM before the contract details are even finalized.”

The Legislature and the public, LaFaive said, deserve a greater level of visibility into how the MEDC handles its business.

“Yet,” he continued, “The MEDC wants to go back to the bad old days of blank checks and backroom deals where the public only found out the details after it was too late.”