BIG RAPIDS, Mich. (Michigan News Source) – Gotion Inc., a China-linked company planning to establish a $2.4 billion electric-vehicle battery plant in the Big Rapids area of Michigan, has initiated legal action against Green Charter Township.

The lawsuit, filed in federal court on Friday, alleges that the township breached a development agreement by retracting its approval for a crucial water line necessary for the project’s operation.

Water line extension approval rescinded.

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The dispute arises from the newly-elected township board’s decision to rescind approval for the water line extension, a move deemed inconsistent with the township’s earlier commitment to support Gotion in obtaining requisite governmental authorizations.

The agreement, forged by seven previous board members, who subsequently either resigned or were replaced in the November election, mandated the township’s assistance in securing necessary permits for the project’s realization.

Gotion pushing back against possible unraveling of large investment.

The lawsuit against the township states, “To prevent the township’s sudden recalcitrance from unraveling an endeavor already years and millions of dollars in the making, this court should order the township to comply with its obligations under the parties’ agreement.”

Expressing disappointment over the necessity of legal recourse, Gotion’s Vice President of North American Manufacturing, Chuck Thelen, highlighted the company’s obligation to safeguard its interests in the face of non-compliance. In a Friday statement, Thelen said, “It’s unfortunate that Gotion has had to resort to litigation to get the township to comply with their obligations under the agreement.” He added, “We’re unable to comment further since this is now an ongoing legal matter.”

Green Charter Township holds firm, promises to protect community.

Green Charter Township Supervisor Jason Kruse, who inherited his position after the recall of his predecessor, emphasized the township’s steadfast commitment to its constituents’ welfare, asserting resilience against perceived intimidation. In his own statement, he said, “As township supervisor, my No. 1 concern is protecting the interests of the people of Green Charter Township, and we will vigorously defend our township’s position in the matter. We might be a small community, but we refuse to be bullied.”

The lawsuit, which was submitted to the U.S. District Court’s Western District, seeks judicial intervention to compel the township to reinstate its support for the water line extension and demands reimbursement of legal expenses incurred by Gotion.

Additionally, the lawsuit seeks to preempt any potential litigation against Mecosta County, as the township had cautioned them against proceeding with approvals for Gotion’s project pending the formulation of their own separate zoning ordinance.

Community has had issues with Gotion megasite since they learned about it.

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Gotion’s plans to establish the battery plant, using $175 million in state tax incentives, has encountered resistance since its announcement. Multiple concerns have been raised along the way including a lack of transparency, the signing of non-disclosure agreements, the environmental impact of the project, and foreign influence, particularly from China, where the company originates.

Many in the community and around the state are concerned that the China-linked Gotion plant would be within 100 miles from Camp Grayling, the largest U.S. National Guard training facility in the country, as well as within 60 miles of military armories.

Rep. John Moolenaar (R-MI), who serves on the House Select Committee on the Chinese Communist Party says about the project, “For our state to welcome CCP investment in Michigan 100 miles from the same facility where the Michigan National Guard has worked with military officials from Taiwan is a dangerous double standard that puts national security at risk. This land purchase in Green (sic) Township is a step backwards for Michigan and our communities.”

According to an article in the Business Insider, there is a rebel coalition called the “No-Gos” who have submitted Freedom of Information Acts (FOIAs), looking for information about the project after not receiving answers they wanted from Gotion, their township, their state, their representatives or any of the partners working together to make the megasite happen.

Contentious board meetings, protests and recalls of township officials have shown that a large portion of township, which only has a population of about 3,200, isn’t interested in having the megasite in their community and it looks like the new township board is willing to represent their voices.

Gotion says township is obligated to adhere to promises made by previous board.

Gotion, however, is pushing back against those voices and the direction of the new township board.

Gotion says that the development agreement says, among other things, that the township is required to assist the company in “obtaining or causing to obtain any licenses, permits or other governmental authorizations necessary to advance the project and conduct business to support the project.”

715,000 gallons of water a day needed for Gotion site.

Gotion’s projected water usage is a whopping need of 715,000 gallons of water per day. The options for the water supply include a line extension from the city of Big Rapids’ water supply (which are “subject to review and approval of the township”) or constructing a new city well and water plant that would be on or near the Gotion property. Final decisions on the matter are reportedly left up to the city.

The lawsuit says that township voted to rescind the water extension resolution because they said it lacked “sufficient time and legal expertise to review the resolution and agreement terms.” Gotion proceeded to notify the board on December 8th that they were in breach of contract. In February, the township said the water needs of Gotion were not pressing as they had yet to obtain approvals, permits and a finalized project design for the megasite.

Jurisdictional conflicts to play out in court.

The township’s directive to Mecosta County to suspend approvals pending the enactment of a new zoning ordinance further exacerbates the dispute. Mecosta County’s obligation to review project plans, notwithstanding the township’s impending zoning ordinance, underscores the complexity of jurisdictional conflicts entwined within the entire dispute.

Both township actions – rescinding support for the water line extension and cautioning against county approvals – reflect deviations from the development agreement, which obligates the township to facilitate Gotion’s regulatory compliance.

As the litigation moves forward, the Green Charter Township community will have to see if the new board is obligated to fulfill the promises of the previous board – and if judicial intervention will enforce certain contractual obligations while others are still pending and lack approval.

New bill could stop future China-linked projects from moving ahead in the United States.

In the meantime, a new bill in Congress that was inspired by the Gotion situation, would grant the federal government additional authority to investigate Chinese-backed business dealings in the U.S. according to the Detroit News. While the legislation wouldn’t directly affect the Gotion project, it could impact similar megasite projects in the future.