Michigan
Leaders say that racial equity in businesses is key for Michigan growth • Michigan Advance
During a Wednesday panel discussion that addressed the importance of racial equity in Michigan’s population growth at the Detroit Regional Chamber’s Mackinac Policy Conference, an African-American business leader said the issue is paramount to Michigan’s success.
“If we are a state that wants to grow and develop, we have to take on the racial equity issue, and we have to take on a different lens in shoring up opportunity for Black businesses and small businesses, generally,” said Charity Dean, Michigan Black Business Alliance president and CEO.
Joining Dean on the panel were Hilary Doe, Michigan Economic Development Corporation (MEDC) chief growth officer and marketing officer, and Andre Perry, Brookings Institution, senior fellow. Yazeed Moore, W.K. Kellogg Foundation Michigan Programs director, moderated the panel discussion.
Black business leaders applaud Detroit chamber’s focus on equity but say more needs to be done
Dean, a small owner and former city of Detroit Civil Rights Inclusion and Opportunity department director, said that strides have been made but “we have to be very honest about the disparities that exist.”
“We are looking at small businesses as a driver of economic development for our state and we are intentionally calling out all of the ways that disparity has impacted Black business, specifically, and small businesses, as well,” said Dean about the Michigan Black Business Alliance.
Doe said that this a “watershed moment” for Michigan but it has “momentum.”
Michigan has 9.9 million residents; African Americans compose about 14% of the population. The state’s largest city, Detroit, is 77% Black. Michigan’s population is expected to experience slow growth over the next decade and then decline through mid-century, according to an April report.
In June, Gov. Gretchen Whitmer signed an executive directive creating the Growing Michigan Together Council, a bipartisan panel aimed at developing strategies to attract and retain talent, improve education, and update transportation and water infrastructure. Doe heads that effort.
Since that time, MEDC has interacted with more than 11,000 people through 80 organizations that were essentially “listening sessions.” She said the goal of the growth strategy “needs to be owned by all of us.”
“It is so critical that it is owned by Michiganders, so critical that people see themselves in the strategy,” Doe said. She has said that efforts like Black Tech Saturday will help to retain and grow Michigan’s population.
Perry said that “as conditions for Black small business go, it creates better conditions and the quality of life for the entire community.”
After the panel discussion, a poll released by MEDC “underscore that Michigan’s leadership on climate action and other policies are population and economic growth drivers as well,” said Doe. “We want to build on our value proposition to appeal to the young talent in our state and across the country.”
The poll surveyed 6,098 people from 15 cities across the United States that are popular among young talent, including Atlanta, New York City and Austin, Texas, among others.
The most mobile people are those between age 20 and 34. Understanding why these individuals choose to move is critical to reversing Michigan’s existing population trends, according to U.S. Census data.
While Michigan is in-line with neighboring states when it comes to retention, attracting new residents has been challenging. Michigan is 49th in the nation in terms of residents who live here but weren’t born in-state. The population growth effort collaborated with Generation Lab to conduct this survey that targeted this age group to better understand their relocation trends.
The poll revealed which considerations are most important to young people when choosing a place to call home. Among the top factors were:
- Diverse and safe communities, and those welcoming to immigrants.
- Future-focused communities making investments in the fight against climate change.
- Access to reproductive health care.
- Amenity-rich and walkable communities, including those with robust transit.
Overall, more than 50% of survey respondents strongly agreed that access to reproductive healthcare, diversity and welcoming immigration policies, community safety, unionization and combating climate change were important factors in where they chose to live. Fifty-two percent of respondents aged 25 to 34 said they wish their community did more to combat climate change.
“When folks think about looking for a place to call home, we want them to think of Michigan,” Doe said. “The findings from this poll will be folded into the population effort’s work, and into our thinking as we partner with Michigan communities to launch pilots and programs that support regions in retaining current residents and welcoming new faces to our great state.”
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Michigan
Gotion wants Michigan township to pay the $23.7M it owes in incentives
A decade of Celebrate Michigan: See the images that won from 2015 to 2025
The Detroit News’ Celebrate Michigan photo contest is 20 years old. We’ve assembled the best of the best: Winners and runners up from 2015 to 2025.
The Detroit News
Gotion Inc. has asked a federal judge to order the Michigan township where it was supposed to call home to repay the roughly $23.7 million it owes the state in taxpayer-funded incentives.
Green Township’s actions opposing Gotion’s planned battery parts plant made it all but impossible to move forward, the company argued, leaving Gotion in default under its agreement with the state and on the hook for the $23.7 million in taxpayer-funded incentives it received for land purchases and improvements.
“Now that it is clear the project cannot move forward in the face of this continued opposition and the state of Michigan’s withdrawal of support, Gotion seeks to add these constitutional claims and request damages as a result of the township’s breach of the development agreement and violation of Gotion’s constitutional rights,” a May 29 court filing in the case said.
Last week’s filing seeks to amend an earlier lawsuit Gotion filed against Green Township over zoning changes that made its development all but impossible to proceed.
In February, the Sixth Circuit Court of Appeals blocked Gotion’s lawsuit, arguing that it was moot because the state had already found the project in default and had demanded back roughly $23.7 million that had been given to the subsidiary of a Chinese company to purchase and prepare land in Green Township. In light of that ruling, Gotion is seeking to amend its lawsuit to seek additional damages.
“…the Sixth Circuit implied that given the facts of the dispute at this point, the correct form of damages for Gotion’s breach of contract claim against the township is likely monetary damages and no longer injunctive relief,” Gotion said in the May 29 filing.
The amended filing includes demands for damages arising from the “millions” Gotion paid or spent in reliance on the project moving forward, lost profits the company would have made if the manufacturing facility were built, attorney fees and an amount “not less than $23,670,873.56 for funds advanced towards land and development costs related to the project that the state of Michigan is now claiming should be repaid.”
Attorney General Dana Nessel’s office, which is seeking to recoup the $23.7 million on behalf of the Michigan Strategic Fund, said it was aware of Gotion’s May 29 filing against Green Township and is “monitoring the situation.” The office declined further comment, citing attorney-client privilege.
Gotion first sued Green Township in March 2024 after the board — all of whom had been replaced in November 2023 with members concerned about the Gotion project — rescinded two resolutions needed for the project to move forward. Gotion sued in federal court for breach of contract, and a U.S. district court judge issued a preliminary ruling in Gotion’s favor.
But the Sixth Circuit later blocked the case after Gov. Gretchen Whitmer’s administration, last fall, found Gotion to be in default of its grant agreement.
The state’s finding of default was in part due to the Green Township lawsuit. The company’s agreement with the state prohibits involvement in a suit that “would reasonably be expected to have a material adverse effect on the project or the grantee’s performance of its obligations under this agreement.”
The state also maintained Gotion’s “cessation of eligible activities” for a period of 120 days constituted an “abandonment” in violation of the grant agreement.
The Michigan Strategic Fund said it would seek to recoup the $23.7 million used to purchase and prepare land for Gotion in Green Township.
The Gotion project in Green Township was fraught with controversy shortly after its announcement. The company had planned to locate a battery parts plant in the Big Rapids area, creating up to 2,350 jobs and receiving about $175 million in taxpayer-funded incentives for the project.
Local opponents pushed back on the project because of the secretive nature with which it was negotiated, the unknown environmental effects of the project and Gotion’s parent company in China. Those concerns were amplified by Republican candidates in 2024, including both Vice President JD Vance and President Donald Trump.
The legal maneuverings with Gotion have already come at a cost to the township.
For the past three years, the state Treasury Department has flagged Green Township in Mecosta County because its expenditures have exceeded the amount of money authorized in its annual budget. In a corrective action plan submitted to Treasury last month, the township said its deficits were “primarily due to the legal fees.”
eleblanc@detroitnews.com
Michigan
Residents in Taylor, Michigan, fight against possible rezoning
A group of residents on Holland Road in Taylor, Michigan, say they are now doing everything they can to keep their neighborhood the way it is after some of them received a letter saying the city is considering rezoning their neighborhood.
“People across the street from me could have warehouse front property instead of woods and nice residential homes,” said Matthew Streicher.
Streicher, whose family has owned property on Holland Road for more than 100 years, says that has been his concern after he received a letter from the city about a proposed rezoning from residential to light industrial directly behind his home near Wick and Holland roads.
“So that’s when I also decided to start knocking on doors around here and saying this is what is going on, we need to speak out and have a voice as to what happens in our backyards, literally,” said Streicher.
Streicher told CBS News Detroit that three of his neighbors received that letter, informing residents that there’s a possibility of a new cold storage warehouse development if this land is rezoned.
“Nothing that belongs in a neighborhood,” said Tim Adkins.
“Heartbreaking, heartbreaking, you know,” said Denise Haggadone.
Many who live on Holland Road say this possibility is even more disturbing because of how long everyone has lived on this quaint road. And these same homeowners say that an industrial facility would only bring in more traffic and take away natural green space, most likely hurting their property value as well.
“It’s nice to see the wildlife, you know, there’s so few places left,” said Adkins.
On Tuesday, CBS News Detroit spoke off-camera with City Council Chairman Charley Johnson, who also lives on Holland Road. Johnson says he understands all of his neighbors’ concerns and agrees with them.
He says the company proposing this rezoning has every right to do so, and that the planning commission will vote on it Wednesday evening.
“It’s sad, I raised my kid here, and he’s planning on having this home after I pass or retire or what have you,” Haggadone said,
The residents hope to see a big turnout at Wednesday’s planning commission meeting at 7 p.m. on Wednesday, June 3, at Taylor City Hall.
Michigan
Sterling Heights to consider opposing Michigan House tax policy bills
The Sterling Heights City Council is set to consider a resolution Tuesday evening opposing tax policy bills in Lansing that one councilmember contends put every municipality “at risk.”
The Michigan House voted in May to pass several bills that would slash property taxes across the state, but skipped a vote on a bill needed to replace some of the more than $5 billion in lost tax revenue.
At its Tuesday evening meeting, Sterling Heights City Council is slated to consider the adoption of a resolution opposing Michigan House Bills 5872 through 5879 due to “their potential negative impact on local government revenue, financial planning, and administrative operations,” a city document said. Sterling Heights City Manager Mark Vanderpool said the city would lose about $5 million in annual revenue from the bills. He said there’s no “guaranteed replacement” for the lost revenue, and the city would need to cut services, he said.
“So we’re deeply concerned about that,” he said.
The House’s sweeping tax cuts can’t be implemented without the passage of a separate bill levying a loosely defined 6% sales tax on services that has yet to be revealed. Republicans who control the House did not hold a vote on the sales tax hike bill, which remains in committee.
All combined, the four property tax cuts passed by the House are estimated to result in a tax revenue loss that could progress from $5.5 billion to $7.5 billion a year, according to a series of nonpartisan House Fiscal Agency analyses.
Vanderpool, the Sterling Heights city manager, said he wants the state Legislature to work “hand in hand” with cities, townships and villages to come up with a solution for “guaranteed revenue replacement.”
“We are more than willing ― I think our reputation precedes us ― to work with our state legislators hand in hand to come up with viable solutions that … may reform property taxes without harming communities across the state,” he said.
Sterling Heights Councilwoman Barbara Ziarko said the legislation reduces the city’s revenue without a guarantee of what it will be replaced with. She said that in the future, the legislation could prevent the city from maintaining positions that it has promised residents it would maintain, including public safety roles.
“When they put the burden on our local government, they’re actually putting it on the residents of whatever community it is,” she said.
State Rep. Steve Frisbie, a Calhoun County Republican, previously said that Michigan residents need to see tax relief immediately. He noted a ballot proposal collecting signatures last year would have eliminated all property taxes in the state. That citizens’ initiative, known as AxMiTax, fizzled out and won’t be on the ballot this fall.
“They realized that our property taxes are too high and they demand that we take action now,” Frisbie said.
More on the bills
The cuts passed by the House in May would eliminate the 6-mill State Education Tax and eliminate the 0.75% real estate transfer tax assessed on the sale price of real estate.
House Republicans also signed off on eliminating the personal property tax. That bill, largely intended to benefit utility companies, is tied to separate legislation that requires utilities such as Consumers Energy and DTE Energy to pass on personal property tax savings by cutting electric and gas rates for their residential customers. It also requires utilities to freeze rates for two years.
Jennifer Varney, Sterling Heights’ finance and budget director, said the elimination of the personal property tax would result in a $4.3 million annual revenue loss for the city. She said the personal property tax refers to the taxes that businesses pay on their assets, such as their machines and vehicles.
Another tax on the chopping block is the so-called “pop-up tax,” an increase in a property tax bill that occurs when a house transfers from one owner to the next in Michigan, uncapping a constitutional limit on the property tax increase on a home’s taxable value.
Under the state Constitution, a property’s taxable value cannot increase by more than the rate of inflation or 5% each year. But when a property is sold, that cap lifts and is reset at a new, often higher taxable value, resulting in a “pop-up” in property taxes.
Varney said the “pop-up” is the only way cities “recapture” the true value of a home. Michigan also has the Headlee Amendment, a state law that requires local governments to roll back millage rates if taxable property values rise faster than the rate of inflation.
“If you take away the pop-up … and you keep the rollback of the millage, you’re basically limiting any kind of growth in taxable base for municipalities,” she said.
Staff Writer Beth LeBlanc contributed.
asnabes@detroitnews.com
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