$6B Subsidy Offer Scrutinized as Mundy Township Megasite Falls Apart
State House panel questions why Michigan offered billions in taxpayer subsidies for a project that left vacant land and angry residents.
MUNDY TWP., Mich. — Five weeks after a multibillion-dollar semiconductor plant proposal in Genesee County unraveled, state lawmakers are scrutinizing how Michigan uses taxpayer money to lure large employers.
The House Oversight Subcommittee on Corporate Subsidies and State Investments met Wednesday to hear from Mundy Township officials and residents about the state’s $259 million investment in the so-called megasite, a sprawling 1,300-acre tract that remains empty despite promises of jobs and growth.
“This is the latest in a string of corporate welfare failures,” the committee chair said in opening remarks. “We owe it to the people of Michigan to ask tough questions and demand real answers about how public dollars are used.”
Local resident testimony
Mundy Township resident Don Ludwig, whose home sits near the proposed site, told lawmakers he first learned about the project in 2023 “by accident” from a real estate agent. He described how residents grew increasingly alarmed as they discovered land deals, nondisclosure agreements, and early demolition work.
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“Very few people, if any, had heard about this project,” Ludwig said. “I started a Facebook page to keep my neighbors informed. Residents felt betrayed and not being told the truth.”
Ludwig recounted petitions, environmental complaints, and disputes over farmland and housing developments tied to the megasite. He said residents were frustrated to see tax dollars used on land acquisition, demolition, and tree clearing while the project’s future remained uncertain.
“Everybody in Mundy Township you talk to was against it,” Ludwig testified. “When SanDisk pulled out, it was like Christmas morning. People were happy because we didn’t want it.”
Township manager addresses controversy
Township Manager Chad Young, who has worked for the community since 2016, told the subcommittee he remained neutral on the project but acknowledged signing a nondisclosure agreement with the Michigan Economic Development Corporation in 2022.
“I completely understand and respect the perspective of those who question NDAs by public officials,” Young said. “I entered into the agreement because I wanted to learn as much information as I could in order to best serve my board and community.”
Young said Mundy Township received no direct state funding for the site. The money went instead to the Flint Genesee Economic Alliance, which managed land purchases through a private entity.
“Our board has not received a cent to put toward site development or local infrastructure,” Young said. “Any abatements, Renaissance zones or tax breaks would require a public vote of our trustees.”
He emphasized that local growth was already happening without the megasite. “We have more than 650 new residential units in planning or permitting and significant commercial additions underway,” Young said. “This growth has been organic.”
Supervisor cites community impact
Township Supervisor Jennifer Stainton, elected last November on a platform opposing the megasite, told lawmakers that residents have lived with disruption from demolition and construction despite the project’s collapse.
“Perfectly good homes and businesses have been torn down,” Stainton said. “Residents have experienced noise, property damage, and environmental violations in their community. This is not the right place for heavy industrial development.”
Stainton said within a half mile of the site are nine subdivisions, four manufactured home parks, a school, and child-care centers. “This is a thriving residential and agricultural community, not an industrial zone,” she said.
Lawmakers weigh next steps
Committee members questioned whether state leaders should redirect economic development funds into infrastructure and revenue sharing with local governments instead of one-off corporate incentive packages.
Rep. Dylan Wegela, a Democrat from Garden City, called the proposed $6 billion incentive package for SanDisk “one of the most insane and ridiculous things I’ve ever seen.”
“That kind of money could be used to fund schools and roads,” Wegela said. “Why would we give it away for 50 years of tax abatements?”
The subcommittee is expected to continue its review of the Mundy Township megasite in the coming weeks. Lawmakers signaled they may seek tighter controls and greater transparency for future corporate subsidy deals.
“We have to make sure taxpayer dollars are used responsibly,” the chair said. “People deserve accountability, not empty promises.”
I believe the state is coming into this a little too late. There never should have been the secrecy about what was going on. If someone were to come into my neighborhood and start buying up land for some mega site, I'd be pissed off if they weren't up front about what was going on. There are plenty of sites in Genesee County that could have been used. The property that BUICK used to stand on or the property that was home to AC SPARK PLUG once occupied. What is on them? Why would you build a Mega Site where there are children being educated? Whose brain child was this? NOW after $259 million has been wasted destroying this property, the state is getting involved? Where the HELL were they when the money was being spent? That's a lot of my Witless made off with, how much of a profit did she make?
As a former resident of one of the homes that was demolished, and an area businessman of 39 years, I have always operated under the theory that if you do not grow, you will get smaller. The SanDisk plant would have had an enormous economic impact on the Genesee County Community as a whole, and there are few sites in the country with all of the necessary components giving us, and specifically that space, a big advantage when competing against other sites. I can't speak specifically to the incentives that were given; I will leave that to people who are more educated on the matter. All that being said, I think in this instance "Build It and They will come" is a good motto:-)