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Nearly a month after state investigators raided the Michigan Economic Development Corporation over a controversial $20 million grant, the agency’s board met this week in Traverse City.
The issue took center stage during this week’s taping of Off the Record, where panelists questioned why the board, largely appointed by Governor Gretchen Whitmer, held a meeting with no public mention of the investigation or the agency’s role in awarding and later canceling the grant.
“They spoke no word of the fact that the agency they oversee was raided by law enforcement,” said journalist Jordan Hermani of Bridge Michigan during the show. “If their agency has been raided, and there’s a criminal investigation into a grant they oversaw, their duty is to the taxpayers—not just to the governor.”
The Attorney General’s office has confirmed it is investigating the now-canceled grant and has said there is “probable cause” that a crime was committed. The grant recipient has not been officially named, but Off the Record panelists noted that the company had extensive contact with MEDC staff in the year leading up to the funding approval.
MEDC CEO Quentin Messer defended the agency’s actions.
But panelists on the show pointed out that this statement stopped short of a denial of wrongdoing—and raised questions about whether the MEDC should have acted sooner. Though the grant was canceled in March, panelists noted the agency had known about potential concerns for nearly a year prior.
“They had the authority to cancel it earlier,” Hermani said. “So why didn’t they?”
One reported detail that fueled public outrage: the grant recipient reportedly spent $4,500 on a coffee machine—an expense that, while not technically illegal, has drawn scrutiny over the state’s economic development oversight.
“If they knew the money was being spent on that type of expenditure,” said State Senator John Cherry, who appeared on the same episode of Off the Record, “my hope would be they would not continue to expend.”
The investigation has also reignited longstanding concerns over the structure of the MEDC itself. Unlike traditional state agencies, the MEDC operates as a quasi-governmental entity with broader discretion and fewer transparency requirements. It is tasked with administering economic development incentives and grants across Michigan.
Simon Schuster of Bridge Michigan, speaking during the taping, questioned whether the agency’s legal leeway has created accountability gaps.
“If we have to say the legislature gives us some money, they want us to administer it, and we don’t have any mandate to provide oversight beyond the budget language, that’s a tough argument to make,” Schuster said.
Attorney General Dana Nessel, in a recent interview clip aired on Off the Record, declined to name targets in the investigation but said, “I have no idea the extent of anybody’s involvement,” adding, “We don’t have any specific targets at this time.”
Meanwhile, Messer has suggested that legislative language tied the agency’s hands. Panelists acknowledged that the budget bill which created the grant fund offered few guardrails and was even referred to as “shady as hell” in past coverage.
Off the Record has requested meeting materials and communications from the MEDC’s July board meeting. The Attorney General’s investigation remains ongoing.
This story was written and edited with assistance of generative AI tools.
