KALAMAZOO, MI (WKZO AM/FM) — The Kalamazoo City Commission has voted in favor of allowing a tax break for Graphic Packaging International to expand the facility, although the incentive has been heavily amended to make environmental impact improvements.
According to city documents, the project includes expansion and redevelopment of the property through selective building, site demolition and abatement. The 50% tax break for the $190 million dollar expansion plan would save the plant about $1.6 million dollars, and the project would include about $600 million of investment from Graphic Packaging.
Upon approval, the company expects to come to represent about 44% of the cardboard production in the country and save whole forests by recycling paper and other fiber products.
Last month, Commissioners discussed the prospect of the plan, but decided to table the matter after citizen concerns prompted a task force into conducting more research into how the company affects air quality in the area.
During a virtual meeting Monday night, Commissioners fielded citizen concerns regarding the matter for almost an hour, the majority of which spoke against the tax break for Graphic Packaging, located on North Pitcher Street near East Paterson Street on the city’s Northside.
Their reasoning was largely due to odors said to be originating from the cardboard plant for decades, which has caused health and quality of life concerns.
Complaints have also been made regarding odors from the city wastewater treatment plant, which sits along the Kalamazoo River.
The complaints have also sparked a recent lawsuit between Graphic Packaging and some residents of the Northside area.
In a related matter, over the last decade, the company has been reprimanded by the State of Michigan for these complaints eight different times.
Brandi Crawford-Johnson, representative of Moms Clean Air Force in Kalamazoo, is one of the plaintiffs of the lawsuit, and has launched a petition to have the company examined by the EPA and the state.
“Many of The Kalamazoo residents are sick with asthma and COPD because these toxic chemicals are trapped in our neighborhood and make our eyes and lungs burn, but there is little to no education around this, so we do not feel empowered to speak up,” Crawford said in a statement. “The city of Kalamazoo has been giving this company millions in tax breaks for years knowing they were gassing their residents and taxpayers. EGLE is approving permits for expansion with knowledge of this poisoning.”
Criticism has also been aimed at plans of the company to cut down about 700 trees as part of the project, and what the environmental impact could be.
There were some comments made by callers that spoke in favor of the tax break, explaining that a decision to deny the measure may result in other companies taking their investments away from the Kalamazoo area.
A series of presentations were shown to address community concerns, including plans for future odor mitigation strategies.
According to Director of Public Works James Baker, part of that strategy will include an overhaul on some facility equipment. That would include a new vacuum system, or “interceptor,” to reduce emission output, and additional “E-Nose” sensors installed.
The “E-Nose” measures levels of gases in specific areas, and new ones will be installed in the Northside and Eastside neighborhoods to track levels in those areas. Citizens are also welcome to file any complaints or concerns they have with the company.
Meanwhile, the City, Industry and Community Task Force will continue to examine the issues and work to continue mitigation, as well as address new problems should they arise. Two separate environmental studies of the facility have also been ordered by Graphic Packaging through an agreement with the Michigan Department of Environment, Great Lakes, and Energy (EGLE), officials said.
The PowerPoint presentation regarding those plans can be viewed at this link.
Although the original plan was to issue a tax break over the next 12 years, some Commissioners said that it was too long a time period to measure, with Vice Mayor Patrese Griffin and Commissioner Eric Cunningham pointing out that the odor complaints have been a problem for generations.
As such, amendments were made to cut down on the reporting time of 12 years and to provide updates into the improvement process much sooner.
Rather than allowing all 12 years at once, the company will review progress with the city on a basis of one year, two years, three years or six years. Should the company not show any significant progress, or is found to not be operating in compliance with the agreement, the City of Kalamazoo could rescind the tax break if it chooses.
“I expect significant reduction in orders by the time these projects are completed, and we’ll have a period of time within that six year window to see major improvement,” Commissioner Jack Urban said. “If we don’t see major improvement, that’s the end of it.”
Vice Mayor Griffin added that the project had already been approved previously, and would have continued forward whether the city granted a tax break to the company or not.
Company representatives add that Graphic Packaging will provide updates into the environmental improvement process whenever the city asks for them, even if its before those deadlines.
“We’re gonna continue to working with the Odor Task Force, and we’re gonna report to you as frequently as necessary so you understand what we’re learning from the data and what actions we’re taking to address the things that we’re learning,” Andrew Johnson of Graphic Packaging said.
The amended motion passed the board unanimously. The expansion project is expected to create around 1,000 new jobs.
