News Story

Taxpayers’ cost of drinking whiskey and rye: $2 million

Traverse City business also receives $62k for equipment from 2025 Michigan budget

Michigan taxpayers gave $2 million to Mammoth Distillery to help the company create a new whiskey recipe. The business will purchase and redevelop Pugsley Correctional Facility, which was permanently closed in 2016.

The 2025 state budget conference report (p. 115) said the money will go toward “the redevelopment of a former corrections facility in Grand Traverse County into an agricultural tourism hub.”

Rep. Betsy Coffia, D-Traverse City, whose district includes the company’s address, told CapCon told Michigan Capitol Confidential in an email that she did not request the funds. The budget does not indicate which legislator made the request.

Crain’s Grand Rapids Business in July identified Mammoth Distillery, owned by Chad Munger, as the recipient of the $2 million state grant. Munger, it said, is working with farmers to grow Rosen Rye, a cultivar that was once grown in Michigan.

Munger did not respond to an email seeking comment.

Farmers stopped growing Rosen Rye around 1950. Mammoth Distillery provides a timeline of the crop’s history in Michigan on its website. Trevor Tkach, president of Traverse City Tourism, told Crain’s that agritourism is crucial to the area.

There are approximately 50 wineries in the region, according to Traverse City Tourism. This number does not include distilleries, breweries, and cideries.

The company plans to purchase the long-closed Pugsley Correctional Facility and develop the property, which is currently owned by the Grand Traverse Band of Chippewa and Ottawa Indians.

Munger expected to close on the purchase by Sept. 15, Crain’s reported. Munger did not respond to an email seeking comment. The Grand Traverse Band did not respond to an email inquiry about the possible sale. Grand Traverse County responded to a Freedom of Information Act request by saying it had no information on Mammoth Distillery.

Mammoth Distillery was also awarded $62,572 in June by the Michigan Department of Agriculture and Rural Development. The company would use the money ”for blending and packaging equipment to increase its processing and production capacity,” according to a state press release.

Gov. Gretchen Whitmer mentioned Mammoth Distillery in a COVID-era press release. In it, she said the company had shifted its operations to manufacture and distribute hand sanitizer to health care professionals.

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.

News Story

Detroit’s cider mill scores legal win, but the fight isn’t over yet

Civil hearing scheduled for Wednesday

The only cider mill in Detroit has won a court battle against the city, but a second court case looms.

A jury on Friday acquitted Leandra King, a farmer at Detroit Farm and Cider, of all criminal charges for owning livestock without a proper permit on her five-acre farm.

“What was exposed today is the political vendetta that was driving this whole case,” King said in a phone interview with Michigan Capitol Confidential.

In 2021, King said, the local government started revoking her permits for the farm, which housed 130 fruit trees, a youth equestrian program and livestock. The farm remains shut down.

The city of Detroit wants the farm to comply with the law, Corporation Counsel Conrad Mallett told CapCon in an email.

“Currently, they still have multiple violations of the city code including but not limited to: a new structure, plumbing, electrical without the proper permits, inspections, or approvals. We look forward to them being in compliance with all applicable codes and ordinances.”

The city plans to press compliance claims in civil court on Wednesday. The farm has harbored wild animals, operated a greenhouse without a permit, and used the property illegally, the city claims in a court document.

“Further, the following conditions at the Subject Properties are a threat to the public health and safety of the City of Detroit residents living near the surrounding property,” the emergency motion for a temporary restraining order says.

The city seeks a cease-and-desist order against what it calls “illegal use and operation of an illegal urban farm.” It also seeks a ruling to allow city officials to inspect the property within seven days.

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.