IBJNews

Old General Motors sites could receive $800M for clean up

Back to TopCommentsE-mailPrintBookmark and Share

The Obama administration on Tuesday proposed a trust fund of more than $800 million to pay for the cleanup of closed General Motors sites in 14 states, including one in Indianapolis and one in Kokomo.

President Barack Obama, speaking in Youngstown, Ohio, which is near a GM assembly plant, called the trust a "landmark agreement to help dozens of communities like Youngstown revitalize and redevelop old, shuttered GM facilities, preparing them for new industries, new jobs and new opportunity."

Ed Montgomery, who leads the White House Council on Automotive Communities and Workers, said the fund would clean up nearly 90 properties shuttered in the GM bankruptcy.

The proposed sites include the Indianapolis Stamping plant on the west side and the former GM Delco Plant 5 in Kokomo.

He said it represented the largest environmental and economic development effort for former manufacturing sites.

The cleanup plan will help raze or rehabilitate dozens of vacant manufacturing facilities and offices left barren by GM's government-led bankruptcy last year. Montgomery announced the cleanup at a conference sponsored by the White House and the Brookings Institution on the future of automotive communities affected by the industry's downsizing.

More than half of the sites are in Michigan, and others are located in Ohio, Indiana and New York. The fund will "take these properties and once again make them productive assets for your towns and communities," Montgomery said.

The Obama administration declined to provide a full list of the sites, but some of them include: former GM plants in Wilmington, Del.; Kansas City, Kan.; Shreveport, La.; Pontiac, Mich.; Flint, Mich.; Lansing, Mich.; and Moraine, Ohio. Other facilities are located in Syracuse, N.Y.; Janesville, Wis.; West Mifflin, Pa.; Fredericksburg, Va.; Framingham, Mass.; Danville, Ill., and Trenton, N.J.

General Motors received $50 billion in government aid to get through its bankruptcy last year. GM has repaid $6.7 billion that the government considered loans, with the remaining $43.3 billion converted to a 61 percent stake in the automaker.

GM said Monday that its net income rose to $865 million in the first quarter. Company officials have said a public stock offering — a key step in the government eventually selling its ownership stake — could come later this year or in 2011.

White House economic adviser Larry Summers gave an upbeat assessment of the company's future, saying there was a "real prospect of the government recovering most, if not all, of its investment" in GM.

Montgomery and Summers said the environmental plan would provide $536 million for the cleanup of properties and about $300 million to help states and communities pay for property taxes, demolition costs, plant security and other expenses.

The funding comes from $1.2 billion provided by the Treasury Department to wind down the "bad" assets of GM set aside in the company's bankruptcy.

The administration plans to work with states to finalize the plan and will present the framework of the cleanup to the U.S. Bankruptcy Court for the Southern District of New York for approval.

Michigan Gov. Jennifer Granholm said the rehabilitation of the manufacturing sites would help states trying to lure "green" manufacturing jobs such as battery production, wind turbines and solar panels.

"We want to make these sites the place for them to locate," Granholm said.

Granholm said environmental concerns have been the biggest barrier to redeveloping the state's 47 sites covered by the agreement. She said Michigan officials are talking with several companies who are interested in the locations.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1

ADVERTISEMENT