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The U.S. Government and old General Motors have reached an agreement that may make some of the company's former properties more appetizing to buyers. The estate of the bankrupt GM has agreed to set up a $773 million trust dedicated to cleaning up 89 of the company's former properties. Around two-thirds of those are known to have been contaminated by hazardous waste. The deal was reached with the approval of 14 states and a tribal government, though the federal government and some states will still accept public comment on the deal for up to 30 days. Even so, sale of the properties is expected to move forward.
With GM agreeing to pay for any environmental cleanup that may arise in the future, the company's former properties will be all the more enticing to investors. Even with GM's substantial investment in the project, The Detroit News says that the bulk of environmental cleanup will likely remain a government-funded operation with Michigan alone receiving $159 million from the feds to help clean up 50 sites.

Of the $773 million GM is setting aside for the project, $431 million will head straight to states to be used for immediate clean up. Another $68 million gets set aside for any future cleanup that may arise while $12 million gets kicked back to old GM for current cleanup activities going on right now. Meanwhile, $262 million of the total fund goes straight to administrative costs, including property taxes and any demolition that may be required.

[Source: The Detroit News]


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  • 10 Comments
      • 4 Years Ago
      When businesses complain about the high cost of doing businesses without the ability pollute and emit toxins freely just know that sooner or later someone is going to have to pay for it.
      • 4 Years Ago
      "The U.S. Government and old General Motors have reached an agreement that may make some of the company's former properties more appetizing to buyers. The estate of the bankrupt GM has agreed to set up a $773 million trust dedicated to cleaning up 89 of the company's former properties."

      The bill will be a lot more than that ..

      "$262 million of the total fund goes straight to administrative costs, including property taxes and any demolition that may be required."

      Good news for accountants, lawyers and bureaucrats. Why would a bankrupt company (Old GM) pay property taxes on abandoned property?
        • 4 Years Ago
        Because they still own the land even if it is "abandoned". It's just like someone who owns an empty lot. Taxes are still due although at a much lower rate than if the land had been "improved". You make it sound like they shouldn't pay any tax at all...
        • 4 Years Ago
        " Why would a bankrupt company (Old GM) pay property taxes on abandoned property?"

        Top 2 reasons:
        1) Difficulty of selling property with tax liens
        2) Risk of tax forclosure
        • 4 Years Ago
        I'm pretty sure the Old GM property has a negative value at this point ...
      • 4 Years Ago
      https://www.motorsliquidation.com/PropertyList.aspx

      ^---that's what 'old gm' owns. Look at that... effing crazy.
      I bet half or more of that needs some serious cleanup.

      All paid by the taxpayer of course.. funny how people rally against socialism but when our tax dollars go to cleaning up after huge corporations.. nary a peep.

      We should be on the hook for $0. This pisses me off.
      • 4 Years Ago
      Zach, your title is right, but the text of your post is a bit misleading. To be clear, GM as we know it today is contributing zilch, nada, nothing towards cleaning up all of the messes it left behind. These cleanup funds are coming solely from the bankruptcy estate and the US Treasury.
        • 4 Years Ago
        That was pretty clear to me, not that it needs to be explained to anyone who understands the basics of bankruptcy.
      • 4 Years Ago
      That seems fair, albeit totally unexpected.
      • 4 Years Ago
      I know here in Massena, NY a few potential lookers at the GM site have expressed that they don't want to pay to have the site cleaned up. We could really use this clean-up money to make it happen faster. We need * something* up here to replace GM...