Mackinac Center sues economic development agency over alleged FOIA violations

A Michigan agency that distributes millions of dollars in subsidies is stonewalling a group seeking public records, according to a new lawsuit.

The Mackinac Center for Public Policy and Michigan Rising Action sued the Michigan Economic Development Corporation Sept. 12, alleging a violation of the Freedom of Information Act.

Michigan Rising filed a records request in late May, asking for the economic development corporation’s communications with American Lidar Inc., a Michigan company linked to the Chinese Hesai Group. The state agency distributes taxpayer-funded subsidies.

The MEDC responded on June 20, with a fee estimate of $593.48 and an estimated processing time of 16 hours to produce around 1,200 records.

Michigan Rising paid a 50% deposit on July 2, 2024, and the MEDC cashed the check on July 19, the lawsuit says. The agency did not produce any documents and failed to respond to follow-up inquiries, remaining uncommunicative until Aug. 29. On that date, it acknowledged it received payment but failed to provide an expected completion date.

“This is a willful effort to conceal from public inspection activities and discussions the MEDC is having that the public may not like,” said Abby Mitch, executive director of Michigan Rising Action. “This is a fair concern, as MEDC’s two flagship investments – Gotion and Ford CATL – have received nationwide public backlash. But the simple fact is that it should not take the threat of a lawsuit to get MEDC to follow the law.”

The MEDC’s conduct seems to violate Michigan’s transparency laws, which require official agencies to provide the public with prompt access to government records.

“The lack of transparency shown by the MEDC in this case is deeply troubling,” said Steve Delie, director of transparency and open government at the Mackinac Center. “Public records belong to the public. They should be readily accessible in a reasonable time period and at a reasonable cost. The delays our client encountered make it clear that the MEDC is falling short of that standard.”

The Michigan Economic Development Corporation declined to comment.