$259M in tax funds spent, but Whitmer’s Mundy megasite has no buyer

The Mundy megasite near Flint, which state officials gave $259 million in taxpayer funds, is dead, Crain’s Detroit Business reported on July 16.

The megasite spans 1,194 acres, comprising the Advanced Manufacturing District of Genesee County, which is more than 10 times the size of California's Disneyland.

State officials tried and failed to lure memory chip maker Sandisk, according to documents obtained through a records request.

The development encountered trouble in April when the company Maple & Hill LLC, which was preparing the site, allegedly violated state wetland laws.

The plans for a development failed because of economic conditions, according to Quentin L. Messer Jr., CEO of the Michigan Economic Development Corporation.

“While economic factors outside of the state’s control ultimately proved insurmountable to this greenfield project moving forward in the U.S., we are proud of the tremendous work that resulted in Genesee County being the preferred, and final U.S. location for what would have been a generational semiconductor fab investment,” Messer told CapCon in an email.

The future for the plot of land “remains strong,” he said.

“That momentum remains strong and will continue onward, putting Genesee County in a dynamic position to secure future advanced manufacturing investments that will bring good paying jobs and economic opportunity to our state,” Messer said.

​​The Flint & Genesee Economic Alliance received over $259 million for the megasite and had spent more than $139 million as of October 2024, according to the latest state report.

The organization is disappointed by the announcement but remains committed to landing a project in Michigan, Tyler Rossmaessler, executive director, told CapCon in an email.

“While we are disappointed by this announcement, we remain 100% committed to attracting an advanced manufacturer to Genesee County and our top-notch team will continue our work to bring a project to Michigan. The Advanced Manufacturing District of Genesee County is the best site in North America for an advanced manufacturer to locate, and we will continue our important work together to attract a job-creating project that will benefit our region and the entire state for generations to come. We remain convinced that attracting an advanced manufacturer will create thousands of jobs, help boost and launch small businesses, create opportunities for young people and help us enhance national security by bringing our supply chain and jobs back to the U.S.”

Gov. Gretchen Whitmer blamed the failure on national economic turmoil, according to Crain’s. But House Speaker Matt Hall said choices on the state level, not the federal level, were responsible.

Michigan must cut red tape, cut taxes and improve government services, Hall said in a press release.

“We simply need state leaders who are focused on making sure Michigan is the best possible place to build and grow. That’s why House Republicans will continue to fight at the Capitol to cut unnecessary red tape, reverse the 2023 Democrat tax hike on small business and improve state government services to help as many job creators as possible choose Michigan as a permanent home.”

Local governments in the area mostly opposed the project, CapCon has reported.

Whitmer, who championed this project, hasn’t responded to a request for comment.

Local resident Don Ludwig has opposed the megasite for three years. Since then, the developers have been buying and demolishing homes.

“One home over from me, they’re tearing down a home right now with my money, your money, and everyone else’s money for a site with no buyer,” Ludwig said in a phone interview.

Instead, the state should have spent that money fixing local roads, he said.

“There’s no company on the planet that would want to come here with nine subdivisions, the day care, the school, and all the homes and lives that would be disrupted,” Ludwig said. “It just doesn’t make sense. If you’re going to spend our taxpayer dollars, then anyone in the state of Michigan should have a right to know what's going on.”

Michigan reportedly was going to hand $22 billion to a single company with zero transparency or opportunity for public debate, John Mozena, president of the Center for Economic Accountability, told CapCon in an email.

“That’s enough money to cover the entire state General Fund budget for a year and three months or so. That’s more money than is the entire School Aid Fund this year ($20.6B). Are you honestly telling me that this one factory is worth more to Michigan’s taxpayers and communities than a year’s worth of education for virtually every child in the state?”