LANSING — Michigan has moved a step closer to potentially recouping tens of millions meant for the stalled Gotion project in Big Rapids.
A letter sent Friday is the state’s formal request that Gotion repay $23.6 million in public assistance.
The company had received that funding before work on the Green Charter Twp. project was stopped over legal challenges and objections from local communities.
The grant was awarded by the Michigan Economic Development Corporation, a semi-private entity that attempts to draw in job-creating projects.
Danielle Emerson, public relations manager for the MEDC, says that the letter is an important step in the potential return of taxpayer dollars, given out under the Michigan Strategic Fund.
“Now begins a statutory, 90-day clock for the company to repay that amount in full, with no additional penalties,” she said in a statement. “MEDC will continue to pursue the rights and remedies MSF is entitled under the agreement if there has not been a full repayment at the end of that 90-day period.”
Chuck Thelen, vice president of Gotion’s North American wing, says in a statement that the company is “pleased to continue” its conversations with the state.
The dispute over public funding is separate from a lawsuit between Gotion and Green Charter Twp.