A closed G.M. factory in Flint, Mich., attracted copper thieves. (click here for New York Times article.)
From the USA Labor Department yesterday:
| Wed, Oct 20, 2010 at 2:16 PM | |||||||||||||
| Environmental Liability Settlement with Old GM (click title to entry - thank you) |
Dear Friends,
I would like to take this opportunity to notify you of some exciting news for many communities affected by the GM Bankruptcy.
After months of negotiation, the United States, along with 14 states and a tribal government, have reached an agreement with Old General Motors (now known as Motors Liquidation Company or MLC) to establish a trust to cleanup and repurpose 89 properties left behind in the GM bankruptcy. Under this agreement, Old GM will commit $773 million to cleaning up property sites – two thirds of which are known to be contaminated with hazardous waste – in fourteen states.
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 Agreement was filed with the bankruptcy court that is overseeing the final dissolution of Old GM. It is expected that final approval will take place early next year.
· The $773 million trust will be divided as follows:
- o $431 million will be used directly in the states for cleaning up the Old GM properties.
- o $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.
- o Approximately $12 million will be credited to Old GM for approved cleanup activities.
- o $262 million in cash and other assets will be used to cover various administrative activities and activities that help return these properties to beneficial use such as demolition.
The Trustee will work closely with the local communities when selling or repurposing the properties. In addition to generating sale proceeds, the Trustee will consider both the potential for the reuse to create jobs in the applicable state and the views of the applicable state and affected communities.
As this process moves forward, the White House Council on Automotive Communities and Workers and its member agencies will continue to work diligently with affected automotive communities, the states, and the Trustee in recovery efforts. The agreement announced today will play a key role in moving these efforts forward.
For additional information, see the attached White House Fact Sheet and United States Attorney’s Office press release.
Best,
Jim McMullen, Deputy Director of Recovery for Auto Communities and Workers
| Breakdown of the $773 Million Announced Support | ||
| Cleanup Funding for Sites in each of the State | | |
| Delaware | $11,728,473 | |
| Illinois | $5,258,489 | |
| Indiana | $25,174,482 | |
| Kansas | $4,786,321 | |
| Massachusetts | $2,325,836 | |
| Michigan | $158,698,888 | |
| Missouri | $1,724,806 | |
| New Jersey | $24,708,069 | |
| New York | $153,864,758 | |
| Ohio | $39,394,990 | |
| Pennsylvania | $3,299,231 | |
| Virginia | $25,922 | |
| Wisconsin | $210,857 | |
| Total Site-Specific Payments | | $431,201,122 |
| Cushion Fund | $68,233,823 | |
| Cleanup Costs Paid by Old GM | $11,565,055 | |
| Administrative Costs | $262,000,000 | |
| TOTAL | $773,000,000 | |
