Lack of transparency in AK Steel agreement - Legislators
Press and Guide reported that AK Steel’s Dearborn Works plant could be the recipient of a multimillion dollar legacy tax credit if the company works out a deal with the Michigan Economic Development Corporation. The brownfield tax credits originally were awarded to the plant’s previous owner, Severstal, and legislation that would have allowed AK Steel to claim the credits from the Michigan Economic Growth Authority died in the State Legislature last year.
But the MEDC is now considering awarding both MEGA and brownfield credits without legislative approval, and a bipartisan group of state representatives are speaking out. They say that by going around the legislature, the company may avoid answering questions about environmental protections for surrounding neighborhoods.
State Rep. Abdullah Hammoud (D-Dearborn) is among the legislators calling for more transparency in the negotiations, along with State Reps. Stephanie Chang (D-Detroit), Pete Lucido (R-Shelby Township) and Martin Howrylak (R-Troy). Mr Hammoud said that “I understand that AK Steel has made positive strides compared to the previous owner, both in their community efforts and with actions to address emissions. That being said, residents of Dearborn have real concerns about air quality and the detrimental impact it has on public health and the environment.”
He added that “I am severely disappointed that we were prevented from working to address the concerns of residents. Unfortunately, this term we weren’t given the chance, as elected representatives of our communities, to publicly discuss or work on this issue legislatively.”
Mr Chang added that residents of her district “deserve transparency and a public process in which they can engage, ask questions, and share concerns, especially when it comes to giving away their taxpayer dollars to a corporation that is one of the known polluters in the area.”
Even more concerning, according to Chang, is that it’s not known if the tax break would come with the environmental equipment upgrades or accountability included in the bills from the last legislative session. She said that “My residents, and all Michiganders, deserve better than this.”
MEDC spokesperson Emily Guerrant said they currently are evaluating if and how the MEGA tax credits could be transferred to AK Steel. Ms Guerrant said that “We are also working with the Legislature on what the solution or outcome might be.”
AK Steel’s Dearborn Works plant sits on a more than 350-acre site with operations that include carbon steel melting, casting, hot and cold rolling and finishing operations. Previously owned by Russian steelmaker Severstal, the plant was sold for USD 700 million to Ohio-based AK Steel Corporation in 2014. Over the years, the Dearborn steel plant has been known as one of the state’s worst air polluters, making it the focus of state officials and the media regarding its air emissions. People living in Dearborn and southwest Detroit have long been concerned about air pollution from the plant.
The communities part of a wider area designated as the “epicenter of asthma burden” by the Michigan Department of Community Health have a long history of enduring the impact of heavy industrial pollution.
In 2015, AK Steel Corporation paid USD 1.35 million penalty for past violations of the Clean Air Act at the Dearborn facility, to implement a variety of procedures to reduce future violations and install dynamic air filtration systems at the Salina Elementary and Salina Intermediate Schools across the street from the plant.
Source : Press and Guide