Editorial: VBT asks MML, MTA for support

At Tuesday’s regular meeting of the Van Buren Township Board of Trustees, Supervisor Kevin McNamara gave a video State of the Township presentation telling how the township was rock solid in funds and had lots of money from grants and corporations and increased tax revenue.
The next item on the agenda was Resolution 2018-10 asking the Michigan Municipal League Legal Defense Fund and/or the Michigan Township Association Legal Defense Fund to support VBT in its law suit against Visteon, or the township could end up with a financial manager. What?
In 2003, the township’s Local Development Finance Authority issued bonds to assist in the construction of Visteon’s world headquarters. In 2010, while in the midst of a recession and Visteon’s bankruptcy, Visteon and the township entered into an agreement where Visteon agreed to assist the township by making payments whenever there was insufficient captured tax revenue to cover bond payments.
Now, on the eve of a shortfall, Visteon has disavowed any obligation under the agreement, subjecting the LDFA to default and VBT and its citizens to potentially “disastrous financial outcomes.” The law suit is to force Visteon to honor its commitment.
The Court of Appeals agreed with a lower court that this suit is premature since no harm has yet occurred. The Supreme Court may take the case and the MML and MTA could help get it there. But, what a mix of messages.