Motors Liquidation Corp., the estate of the now bankrupt General Motors Corp., has struck a deal with the federal and other governments by which 89 former auto sites will be the targets of environmental clean up efforts. The deal will likely not be approved until next year, as the U.S. government and some states will be accepting comments on the deal for 30 days.
Fifty of the 89 sites are in Michigan, and Governor Jennifer Granholm has said in a statement that the bulk of the money will go to clean sites in Flint and Ypsilanti. The 50 Michigan sites are spread across 13 cities.
The proposed amount of the trust is $773 million, but the deal must still be approved by a U.S. Bankruptcy Court. According to a White House fact sheet, the money will be divided as follows: $431 million will go directly to states to be used for cleaning up former GM properties. $68 million will be placed in a pooled account for environmental cleanup that may arise at any of the 89 properties transferred to the trust on account of unforeseen conditions. That’s dubbed the “cushion fund” to make sure other cleanup issues that arise can be taken care of.
“This kind of environmental trust is unprecedented in size, speed of settlement, and level of local involvement. It will give local communities the opportunity to participate in designing the strategy for repurposing these properties in accordance with their specific development objectives, using these funds to both properly clean them up and quickly return them to productive use creating jobs and restoring communities,” the fact sheet says.
– By: Stephen Calogera
Source: Detroit News