EGLE swoops in on Mundy megasite
Great Lakes department alleges wetland violations at site that is getting $259 million subsidy despite having no buyer
A project that was promised $259 million in subsidies from Michigan taxpayers has violated state environmental laws before it has begun building, according to an April 8 violation notice.
The Michigan Department of Energy, Great Lakes, and Environment issued a violation notice to the company Maple & Hill LLC, which is preparing an area larger than 1,100 acres — more than 10 times the size of California's Disneyland — for sale to a mystery buyer. The company is doing the work for the Flint & Genesee Economic Alliance, which has so far received $139 million from the people of Michigan.
“EGLE advises all unauthorized activities occurring within regulated areas on this property stop,” the notice reads, instructing the developer to respond by May 5.
The environmental agency inspected the site on March 18 and found the developer violated Part 301, Inland Lakes and Streams, of the Natural Resources Environmental Protection Act.
The developer installed a culvert and filled in the Lizard Valley Drain (a stream) to construct a stream crossing, placed rock fill in the Lizard Valley Drain to construct a check dam, and cut and removed vegetation along the Lizard Valley Drain and Warner Drain. All this happened, the state said, without the company having obtained the required permits.
Michiganders accused of violating wetland laws can face a fine of $25,000 per day, Michigan Capitol Confidential reported in April.
The developer must complete the land preparation by May 2, 2028, in order to get the taxpayer money, Don Ludwig, a megasite neighbor, told Michigan Capitol Confidential in a phone interview.
Ludwig has a keen interest in the site. That’s because he was involved in one of Michigan's most notorious cases of eminent domain. In 1981 the city of Detroit and General Motors seized his family home in Poletown, a 4,000-person community razed in 1981 to build an auto plant.
“My grandma was handcuffed to the porch,” said Ludwig, who was 12 at the time.
Locals residents sued and took the case to the Michigan Supreme Court, which ruled 5-2 for General Motors in Poletown Neighborhood Council v. City of Detroit.
In 2004, the Michigan Supreme Court overturned that ruling.
Ludwig said he won’t be pressured out of his home twice.
“They don’t have a buyer, but they’re destroying the farmland, taking everyone’s homes,” Ludwig said. “I’ll be the last one standing.”
Locals are concerned about how the megasite will affect water quality, Ludwig said. Day care centers, a church, a school, and several subdivisions sit across the street from the megasite.
CapCon has asked the economic development group how much water it plans to use each day. It has not responded.
The megasite can’t legally seize Ludwig’s home via eminent domain, Patrick Wright, Vice President for Legal Affairs of Mackinac Center for Public Policy, told CapCon in a phone interview. He cited a 2006 ballot proposal that 80% of Michigan voters approved.
The state forbids taking private property in the name of economic development and transferring it to a private entity.
The Flint & Genesee Economic Alliance is committed to protecting Michigan’s land, air, and water, the organization’s executive director, Tyler Rossmaessler, told CapCon in an email.
“We continue to work closely with Genesee County and the state Department of Environment, Great Lakes and Energy (EGLE) to ensure our local and state partners have information and insights they need about our efforts to follow policies and procedures and protect this area while also developing a site that attracts a job-creating project,” Rossmaessler wrote.
The $259 million of taxpayer money should go to efforts that help Genesee County residents, like fixing the roads and infrastructure, Erin Mooney, another neighbor of the Mundy megasite, told CapCon in a phone interview.
“If there’s $259 million spent and there’s no buyer, then what? Depending on how far they get with the site prep, now you can’t farm the land and there’s no factory with these alleged jobs,” Mooney said. “But if you don’t have a buyer, how do you know how many jobs there will be?”
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.