After obtaining the required approval from a bankruptcy judge next year, Motors Liquidation Company, the old G.M. formed from the assets shed by G.M. under bankruptcy protection in July 2009, will create a trust that devotes money to cleaning up 89 sites in 14 states..
Most of the money for this cleanup will come from the $1 billion the Obama administration provided to the old G.M. last year. Old G.M. will also supply $641.4 million and will transfer ownership of the properties, valued at $120 million, to the trust. This money will be used at various sites in Delaware, Illinois, Indiana, Kansas, Louisiana, Massachusetts, Michigan, Missouri, New Jersey, New York, Ohio, Pennsylvania, Virginia, and Wisconsin.
With 57 of these abandoned properties located in Michigan, the state is slated to receive $159 million from the trust for cleanup. Pontiac, Flint, Saginaw, Lansing, and Ypsilanti are among those who will receive funding for sites in their cities.
"Cleaning up these former G.M. sites will allow new companies a greater opportunity to invest in Michigan and create jobs," said Michigan Gov. Jennifer Granholm in a statement.
The funding will allow the cleanup of 18 properties involved in Michigan's Project Phoenix program. This program encourages the reuse of the state's former manufacturing sites by bringing together current and former property owners, businesses, developers, and communities.
Granholm and other Michigan residents hope that the redevelopment of these sites will prove ideal for clean energy companies looking to take advantage of Michigan's well-trained workforce and significant tax incentives.
"The additional sites that will become available to new investors as a result of the environmental cleanup will continue to help Michigan diversify its economy and create new jobs for the 21st century," Granholm said.