Bay City, Michigan 48706
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www.mybaycity.com November 22, 2009
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General Motors Transfers $800,000 in Environmental Liability to City

City Supportive of Deal Despite Cost Because of GM $37 Million Investment

November 22, 2009       Leave a Comment
By: Dave Rogers

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The City of Bay City is continuing to support General Motors Corp. despite getting an additional $800,000 liability for environmental cleanup at the Middlegrounds.

In addition, the city may have to pick up additional cleanup costs for Crotty Street contamination because GM shifted liability to the old, bankrupt, GM, now called Motors Liquidation Company.

City Manager Robert V. Belleman said in his bi-weekly memo to commissioners:

"Even in light of these two environmental issues, the City wants to convey its support for the General Motors Powertrain Plant in Bay City, and GM's decision to invest approximately $37 million in the Chevrolet Volt at that plant."

GM, the city and Honeywell Corp. were principal responsible parties in the cleanup of the contaminated Middlegrounds site, the manager wrote.

"The interim response settlement agreement allocated costs of 70 percent to GM and Honeywell and 30 percent to the city, with the city liability capped at available grant funds. In light of the GM bankruptcy, the city must assume 31 percent of additional financial liability for the cleanup, the manager wrote.

Regarding the Crotty Street cleanup liability, the manager wrote: "This specific incident is being reviewed by city staff and the Ferguson Group to ensure that it was properly processed since the GM Powertrain plant is still operating."

The city manager and Mayor Charles Brunner returned from a three-day trip to Washington, D.C. last Friday for meetings sponsored by the lobbying firm The Ferguson Group with the Mayors and Municipalities Automotive Coalition (MMAC).

Mr. Belleman said "our primary purpose is to further develop our relationship with the administration as well as communicate with our elected officials about specific issues impacting the City of Bay City as it relates to the General Motors Powertrain Plant and the overall economic downturn."

During the visit to Washington, city officials learned that U.S. Rep. Dale F. Kildee, D-Flint, was successful in obtaining a $300,000 grant for reconstruction of Johnson Street, a $2.3 million project. Mr. Kildee said he will submit an additional funding request in the Fiscal year budget process for the project.

The officials said the U.S. Commerce Department is considering a $2 billion loan from the Economic Development Administration (EDA) to private companies for low interest loans to municipalities. The governments in turn would loan funds to private companies who are experiencing financing gaps.

"Mayor Brunner and I believe this trip, which focused on increasing federal program funds for Fiscal Year 2011, was extremely beneficial."

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Dave Rogers

Dave Rogers is a former editorial writer for the Bay City Times and a widely read,
respected journalist/writer in and around Bay City.
(Contact Dave Via Email at carraroe@aol.com)

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