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Subcommittee hears timeline for Goshen battery plant, $125 million SOAR allocation and local disputes
Summary
Witnesses described the Goshen EV battery project timeline, state incentives tied to it and escalating local opposition that led to recalls and litigation; state site‑prep funds have been partially allocated but direct SOAR disbursements have not been triggered.
The House Oversight Subcommittee on Corporate Subsidies and State Investments heard a timeline of the Goshen EV battery project and details on state incentives, including a $125 million SOAR allocation that has not been disbursed and about $23.7 million from a strategic site‑readiness pool that has been allocated to site work.
Randy Thelen, chief executive officer of The Right Place, told the committee he and local partners began work on the opportunity in June 2021 after the company shifted from seeking a building to searching for infrastructure‑served industrial land. “There’s three buckets to the incentive program,” Thelen said, describing (1) the direct SOAR award for the company, (2) a Strategic Site Readiness Program grant for land assembly and infrastructure, and (3) a Renaissance Zone property‑tax abatement that has not produced tax value because the company has not begun investment.
Thelen summarized the local approvals and subsequent dispute: site control and due diligence advanced through 2022; in September 2022 Big Rapids Charter Township, Green Charter Township and the Mecosta County Board of Commissioners voted unanimously in support of the incentives; the Michigan Strategic Fund later approved the package; and state appropriations committees gave later approvals. In fall 2023, a recall election changed much of the Green Charter Township board, the township took steps that Thelen said “violated a development agreement,” and the company subsequently sued. Thelen said permitting and other on‑the‑ground activity are effectively awaiting resolution of the court process.
Committee members asked Thelen how funds actually flow. Thelen said the $125 million SOAR award is an allocation to the project but “The Right Place does not have an agreement in place on those funds. … I know generally $0 have been transferred of those $125 to date. The company has milestones that must be achieved. They haven't hit those yet, therefore the money has not been dispersed.” He said about $23.7 million (rounded) of the $50 million Strategic Site Readiness appropriation had been allocated for site development.
Thelen also described public engagement on the project. He said early public meetings in late 2022 produced limited attendance and that community concern at first focused on environmental and infrastructure topics; China‑related questions increased in prominence in March 2023. He told the committee that turnout rose from “6 people” at one February 2023 meeting to about 150 at later meetings, and cited the recall vote results as roughly a 55/45 split in the community. Thelen said his door‑to‑door conversations with constituents produced 30 “no” and 6 “yes” responses among 36 people he and two state representatives spoke with.
No committee action or vote on the incentives occurred at the hearing. The subcommittee approved routine minutes at the start of the meeting; Representative Green moved to approve the May 7 minutes and the chair said, “Hearing no objection, they are approved.”
Thelen urged the committee to weigh the timeline and local dynamics as the courts and the parties resolve outstanding disputes. For now, Thelen said, state disbursements tied to company milestones remain on hold and permitting appears contingent on litigation and any required federal or state reviews.
