5 things to know about Mecosta County’s $200K marijuana tax funding for Gotion lawsuit

OG Article  edited by Stephanie Baum, reviewed by Robert Egan Watch Today's LIVE Episode on YouTube, X, and Rumble

Published July 02, 2025'

Under Michigan’s Regulation and Taxation of Cannabis Act, a 10% excise tax on recreational cannabis sales is distributed to communities. In Fiscal Year 2023, the state issued over $87 million, equating to roughly $59,000 per licensed dispensary or microbusiness.

Mecosta County received $886,295 in early 2024 based on 15 local dispensaries. Previous years saw similar distributions—$881,300 in 2023 (from 17 retailers) and $677,441 in the first cycle. However, the county’s share dropped to $698,743 in 2025 due to a decline to 12 operating cannabis retailers.

The City of Big Rapids also receives its own MET distribution (about $886,000 in FY2023), which it deposits into its general fund for capital and general needs.

Mecosta County, by contrast, created a structured process for allocating MET funds. Local governments, nonprofits, and organizations may apply annually. The Board of Commissioners typically sets application guidelines in the spring, reviews proposals in June — often through public presentations—and finalizes awards by mid-summer. This approach aims to direct funds to areas of greatest local need.

In 2023, after receiving the FY2022 MET disbursement of approximately $881,000, the county allocated the entire sum to 13 projects. Officials emphasized using the one-time funds to benefit as many county residents as possible.

Each year, demand far exceeds available resources. In 2023, the county received 62 applications totaling $4 million in funding requests—far more than the $886,000 available. The most recent cycle saw 41 applications requesting $2.06 million, competing for about $773,000.

Typical Use of Funding

In 2023, Mecosta County allocated 2022 tax funds to support public safety, infrastructure, and community well-being. The Commission on Aging received $160,500 to purchase four vehicles for senior meal deliveries and upgrade facilities. The Sheriff’s Office was granted $72,000, including $10,000 for the K-9 unit and $62,000 for a new rescue hovercraft.

Infrastructure projects included $200,000 to complete the Dragon Trail around Hardy Dam and $120,000 to the Road Commission for seasonal gravel road brining. The county also invested in health and housing, awarding $100,000 to Habitat for Humanity for low-interest home improvement loans, with loan forgiveness for the neediest families.

Other grants supported local healthcare, recovery, food security, and arts. Hope House Free Medical Clinic received $25,000 for expanded outreach. Sisters of Sobriety was given $23,000 to support women transitioning from incarceration or addiction. Smaller awards included $4,000 for Barryton’s mobile food pantry, $10,000 for the Mecosta County Historical Museum’s roof, $10,000 to RSVP for senior volunteer mileage, and $3,000 to Artworks for youth art programs.

The 2024 MET disbursement ($774,000 from FY2024 funds) is slated to fund approximately 30 projects, pending final approval in July 2025. Anticipated recipients included rural fire departments, libraries, school initiatives (e.g., Crossroads Charter Academy - ~$84,000), and nonprofits like WISE and Angels of Action.

New requests include $30,000 from TNR Mecosta for a countywide feral cat program, and $100,000 from Eagle Village to establish a children’s advocacy center after the closure of Open Arms. Small municipalities also applied: the village of Barryton requested $28,000 for sidewalk repairs and $54,800 for new recreation courts.

Gotion Lawsuit and Green Charter Township's $200,000 Request

In late 2022, Gotion Inc., a partly Chinese-owned electric vehicle battery component manufacturer, announced plans to build a major plant in Green Charter Township, near Big Rapids. Dubbed “Project Elephant,” the project promised significant economic investment and jobs. However, it quickly sparked controversy, with residents raising environmental concerns and expressing unease over the company’s ties to China.

Community protests followed, and opposition groups formed, turning the proposed Gotion plant into a polarizing issue across Mecosta County. While the original township board had approved a development agreement with Gotion in August 2023, public backlash prompted political change. In recall and subsequent elections, pro-Gotion officials were voted out and replaced with candidates opposed to the project.

By early 2024, the new township board voted to rescind support and void the development agreement. In response, Gotion filed a federal lawsuit accusing the township of breaching the contract. In May 2024, U.S. District Judge Jane Beckering granted Gotion a preliminary injunction, ordering the township to comply with the original agreement and assist the company “to the extent legally permissible” during litigation.

Despite the board’s opposition, the injunction required the township to cooperate with Gotion on zoning and permitting. Green Charter Township appealed to the U.S. Sixth Circuit Court of Appeals later that year and sought to pause proceedings pending the appeal. However, the injunction remained in effect.

As of early 2025, the legal battle remained unresolved. Gotion’s project was stalled, with the company pausing its state environmental permit applications during the dispute.

In June 2025, Green Charter Township Supervisor Jason Kruse asked the Mecosta County Board of Commissioners to allocate $200,000 in MET (cannabis excise tax) funds to help cover mounting legal fees. Kruse described the lawsuit as a burden the township “didn’t ask for” and said the cost was straining the township’s budget and delaying other community needs. While the requested funds wouldn’t cover all legal expenses, they would offer much-needed financial relief during a prolonged and costly legal conflict.

Intensive Funding Debate

The proposal to use Mecosta County’s cannabis excise tax funds to help Green Charter Township cover legal costs in its battle against Gotion Inc. sparked intense public debate in May and June 2025. The idea, unprecedented in the county, was discussed at a June 2 work session where dozens of citizens passionately voiced support or opposition. Due to high interest, the Board of Commissioners extended public comment time, though no decision was made at the meeting.

Supporters framed the $200,000 request as a defense of local values and self-determination. They argued the Gotion battery plant project was imposed without community consent and praised Green Charter Township’s new board for resisting a development linked to China’s Communist Party. Commissioners Gary Lambrix and Greg Adams echoed these views, claiming the township was left to deal with a “bad deal” made behind closed doors by previous officials. Many supporters emphasized solidarity, urging the county to help “one of our own.”

Opponents, however, called the bailout an inappropriate and inequitable use of public funds. Critics argued that the county’s MET money — intended for public services like police, fire, and healthcare — should not be diverted to cover a single township’s lawsuit. Commissioner Chris Jane, representing part of Big Rapids, said nearly all constituent feedback he received opposed the request, calling it “an awful use of this money” and citing misinformation surrounding the Gotion controversy.

Other local leaders echoed concerns about fairness and precedent, warning that funding one township’s legal battle could open the door to future requests. Austin Township’s supervisor emphasized that each township should fund its own legal costs. Critics also noted the $200,000 request represented nearly one-third of the county’s annual MET fund, threatening to divert resources from county-wide programs aiding low-income families, seniors, and public safety efforts.

Citizens like Karen Turnbull urged the commission to conduct unbiased surveys before making such decisions and advocated for using MET funds to improve law enforcement, addiction services, and overall quality of life. Letters to the Pioneer newspaper also criticized the idea of prioritizing legal aid for one township over broad community needs.

After weeks of deliberation, the Mecosta County Board of Commissioners voted on June 26, 2025, to grant approximately $200,000 to Green Charter Township from the cannabis excise tax fund. The vote was 5–2 in favor of the allocation.

Commissioners Gary Lambrix, Greg Adams, Jeff Jackson, Tom O’Neil and Commission Chairman Chris Zimmerman supported it, while Commissioners Chris Jane and Bill Routley dissented.

This approval for Green Charter Township’s legal fee relief was folded into the county’s larger MET funding package, which would be formally finalized at the board’s July meeting. It marked a remarkable commitment of county resources toward the Gotion fight.

The two commissioners who voted “no” warned that diverting these funds could shortchange other programs and cautioned against setting a precedent of funding lawsuits. Commissioner Chris Jane has since resigned from his position due to the ethical concerns presented by the agreement.

On the other hand, supporters on the board insisted this was a special case — essentially a one-time action to resolve a community crisis. “This is not about Gotion [anymore]… This is about us taking cannabis money and helping the township out,” Commissioner Adams argued in closing. Chairman Zimmerman agreed, framing the contribution as the final push to “close the books on Gotion once and for all.”

Others disagree with this assessment, with a protest being planned on Thursday, July 3 at 8 a.m. as the board convenes to give final approval on the budget. The rest of the allocations were released on Tuesday, July 1.