THE ISSUE:
When a group of people in and near Manistee, Michigan heard about the permit pending for construction of a new 425 MW coal fired electric generating plant in Manistee, weekly meetings started. Concerns, and the need to respond, were expressed.

Manistee Citizens for Responsible Development (CFRD, or "see forward") was born. While the greater mission of the group is to advocate for responsible, environmentally sound development, the project at hand is the coal-fired electric generating plant, also known as "Northern Lights" by its developers.

The Northern Lights project, proposed by the Manistee Salt Works Corporation, aka Tonducorp, can be shown to have many health and environmental impacts, (see fact sheets, menu to the left). The economic impacts are less well understood. There has been no independent study of the economic and tax implications of the project. Fact sheets on those aspects that are known-or suspected-will be available soon.

The project would be built in a residential district on Lake Manistee. The 55-acre site would hold a 200-foot high building and a 400-foot stack.

Manistee CFRD is opposed to the development of a coal-fired power plant for many reasons. The environmental effects may be reason enough. But other questions are involved as well.

• Who will get the electricity?
  
  • Most or all of the electricity from the Northern Lights Plant will be sent to municipal power companies, including Holland, Traverse City, Hillsdale, Petoskey and others.
• How, or will the facility be taxed? And are community payments being arranged outside of public scrutiny?
  
  • Since the Northern Lights Plant will likely be mostly or fully owned by municipal power companies (who do not pay property tax) most or all of the potential tax revenue will be from Payment in Lieu of Taxes (PILT) or a negotiated Community Services Fee. Tonducorp has budgeted $400,000 a year for this payment, for the City of Manistee, the County and all other taxing agencies. The City has already suggested that this is inadequate, noting that if it were privately owned and fully taxed the total bill would be closer to $16 million a year. There is little or no public information on the status of these negotiations.
• What are the effects on infrastructure and are they worth it?
  
  • Fly ash will be produced at the rate of over 14 tons per hour. Fly ash will be disposed of with 20 truckloads per day to the landfill, resulting in about a 10-year reduction in the useful life of the landfill. An estimated 135 shiploads of coal will come through the harbor annually. The impacts on the draw-bridges for this amount of use are not well documented and emergency services both throughout the community and at the plant are compromised when bridges are open.
• What will be the effects on the community and its image?
  
  • Manistee has been "cleaning up" its image lately. Not long ago Manitee was a city characterized by heavy industry (referred to some as "Manistinks"). Manistee has shifted in the direction of tourism and retirement, and many feel that a diversified small industrial development is much more compatible with this developing character.
• How many post-construction jobs will really be created? And how many construction jobs can local people expect?
  
  • Projections of 60 post-construction jobs have been floating around the community. Closer examination of the permit applications reveals that parking for 50 employees is planned. Will those 50 jobs be locally filled? Some are specialized positions, others can be filled by trainees, presumably local. The developers have not been forthcoming with estimates of how many jobs might be filled locally.
• Has Tonducorp been a good neighbor with its current project in Filer City?
  
  • Recently the tax tribunal judged against Tonducorp in a 10-year suit against Filer City for alleged over payment of taxes.
• Who benefits (and who pays the costs)?
  
  • Tonducorp benefits: cash
    The cities that get the electricity (NOT Manistee!) benefit: no environmental costs and a new source of cheap electricity.
    Manistee pays: our environment is compromised, our health jeopardized, our tax base is not improved, our workers have no guarantees-and we think little reason to expect- of jobs.

The real question: Will this project be good for Manistee?

We believe the answer is NO!

For more details and background, see Tondu Situation Summary.