2 days ago
Township Seeks Cannabis Funds for Legal Challenge
Green Charter Township has been locked in a legal battle with Gotion, a Chinese battery manufacturer, for more than a year now. At one time, Gotion was set to build a $2.6 billion electric vehicle battery factory near the central Michigan town.
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But last year, after new leadership in Green Township changed its mind about the project, Gotion filed suit, alleging it stands to lose millions if the deal does not go through as originally agreed upon. Green leaders have countered with arguments that the township's previous leaders were never authorized to execute a development deal with Gotion.
Now Green is digging in for its standoff in court with Gotion and seeking funds from a somewhat unlikely source to help pay for the challenge to a judge's decision in favor of the battery maker. According to the Detroit News, the township has submitted a request for $200,000 of Mecosta County's cannabis excise tax revenue to help cover legal bills. It's equal to about 30% of cannabis tax funding awarded to the county by the state.
The problem is that Green Township doesn't allow cannabis retailers to set up shop within its confines. As the report points out, most of the dispensaries in Mecosta County are in nearby Big Rapids. It's caused some controversy over Green wanting a piece of the revenue from an industry it banned.
Green Township's issues with Gotion not only stem from the deal forged with its former leadership. There are also concerns regarding the environmental impact of the factory and Gotion's ties to China.
If the plant is eventually built as originally planned, it could create as many as 2,350 jobs while gobbling up $175 million in state incentives.
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