Michigan board approves $65 million for Marshall site 1 day after Ford pause

A Michigan board awarded $65 million on Tuesday for site improvements at a Marshall-area development intended for a massive Ford plant, one day after the automaker announced it would pause work on the touted and scrutinized project.

The money is one of several signs state officials anticipate Ford will resume work at the site soon, potentially once the Dearborn-based company reaches a labor agreement with the UAW. However, a key economic development official said even in an unlikely scenario that Ford withdraws from the Marshall project, the site is still likely to attract a different large plant or factory.

“I believe that this pause is temporary,” said Quentin Messer, CEO of the Michigan Economic Development Corporation, citing the strike and negotiations.

The Michigan Strategic Fund board approved $65 million on Tuesday to improve 800 acres very close to the main portion of a Marshall megasite, currently slated for a massive Ford plant.
The Michigan Strategic Fund board approved $65 million on Tuesday to improve 800 acres very close to the main portion of a Marshall megasite, currently slated for a massive Ford plant.

On Monday, a Ford spokesman told the Free Press the company would pause work effective immediately on the project, slated for a $3.5 billion investment from the company with the promise of creating roughly 2,500 jobs. He did not elaborate on the timing of the decision, saying work would stop only “until we’re confident about our ability to competitively operate the plant.”

More: Unifor members ratify 3-year contract with Ford that includes wage, pension gains

More: It's not your imagination: Ford logo on 2024 F-150 pickup is new, redesigned

Gov. Gretchen Whitmer and many other lawmakers worked to provide more than $1.7 billion in public subsidies for Ford in order to help ensure the plant is successful. The new money approved Tuesday increases that total to roughly $1.8 billion in tax dollars. A Whitmer spokesman offered similar comments as Messer’s on Monday, suggesting Ford would proceed with work after the strike.

Jim Durian, CEO of local organization Marshall Area Economic Development Alliance, said in a statement late Monday he's confident the project moves foward after Ford and the UAW reach an agreement. In a new statement Tuesday, he applauded deploying additional funds at the site.

People walk downtown Marshall on Wednesday, July 12, 2023.The controversial construction of the Ford EV plant less than 5 miles from this area has some of the town divided on the support of the factory that is supposed to bring 3,000 jobs to the area.
People walk downtown Marshall on Wednesday, July 12, 2023.The controversial construction of the Ford EV plant less than 5 miles from this area has some of the town divided on the support of the factory that is supposed to bring 3,000 jobs to the area.

“Investment in this campus now will allow us to have a site ready for future suppliers and new businesses — and that means even more local jobs in Marshall long into the future,” Durian said.

“We are confident Ford’s BlueOval Battery Park will be a magnet for new investment and will spark new small businesses and we applaud state and local leaders for helping to ensure the vehicles of the future are built here in Michigan and the advanced manufacturing facilities of the future are built here in Michigan.”

After President Joe Biden visited UAW members at a GM parts facility near Willow Run Airport on Tuesday, union President Shawn Fain was asked about Ford’s decision to pause work in Marshall.

“I just think the Marshall decision yesterday or the Marshall threat as I’ll call it is just more of the same from the companies. They closed 65 plants, the Big Three have in the last 20 years, and this is just a testament to how they operate," Fain said.

"And It’s a shame when all their workers are asking for is their share of dignity in the workplace, that this is the type of thing they have to deal with in bargaining. It’s unfortunate."

The Michigan Strategic Fund board, an entity that has the authority to approve funding projects pursued by Messer’s organization, voted 11-1 in favor of the funding. But one member, Wes Eklund, voted against providing the money. Board Member Dan Meyering also questioned the need to send the money now, given Ford’s announced work stoppage.

This specific money is for the Marshall Area Economic Development Alliance to acquire and improve 800 acres of land for possible supplier park adjacent to the main Ford megasite, a massive plot just west of downtown Marshall.

As Messer explained Tuesday, the land may be used by Ford, but it’s largely intended for others companies that may assist with Ford’s work on the larger site.

Glenn Kowalske, of Marshall, points out on a map on Wednesday, July 12, 2023, the location of part of the 3,000 acres of land Ford has bought to construct a new EV battery plant. The Kowalskes are two of many in the small town not happy with Ford Motor Company moving forward on their EV battery plant.
Glenn Kowalske, of Marshall, points out on a map on Wednesday, July 12, 2023, the location of part of the 3,000 acres of land Ford has bought to construct a new EV battery plant. The Kowalskes are two of many in the small town not happy with Ford Motor Company moving forward on their EV battery plant.

“The opportunity here before us is to support infrastructure development that is independent of Ford. I can tell you that even up until earlier this week, we have gotten inquiries for companies that not only were looking at co-locating with Ford. But if ... in the highly, highly, highly unlikely chance Ford was not to continue, they would have sufficient wherewithal to continue on this site,” Messer said.

“I think the risk of this potentially being something that is dormant is highly, highly unlikely.”

Work at the main Marshall megasite began months ago, with construction equipment clearing away what was once largely farmland. The Michigan Department of Transportation has already spent more than $575,000 on “preliminary engineering work and temporary improvements for traffic safety” along the main road outside the site, a spokesman told the Free Press on Tuesday.

While many local businesses and residents support the project, many do not. Those that oppose it, for a variety of reasons, do so largely because of the changes it would bring to the community.

Some championed the news Monday of the stoppage, they had broader concerns about Ford either restarting work or another company moving onto the site.

Free Press staff writers Clara Hendrickson and Eric Lawrence contributed to this report.

Contact Dave Boucher: dboucher@freepress.com and on X, previously called Twitter, @Dave_Boucher1.

This article originally appeared on Detroit Free Press: Michigan board OKs $65M for Marshall site 1 day after Ford pause