Those wanting to see a review of Gotion Illinois by the United States Treasury’s Committee on Foreign Investment in the United States (CFIUS) were disappointed after Manteno trustees voted against the request at the January 20 village board meeting.
Chinese-owned Gotion Illinois is a lithium battery manufacturing plant in Manteno where the former Kmart once operated. The plant is the subject of a lawsuit against the Village of Manteno and remains the subject of intense opposition despite recent Phase 1 approval and preparations to begin the Phase 2 buildout underway.
A CFIUS filing is either mandatory or voluntary, Gotion’s outside counsel David Plotinsky of Washington, D.C. law firm Morgan Lewis explained. Gotion Illinois is not required to file and, as such, it would be a voluntary filing at the Village of Manteno’s behest.
The desire for the request stemmed from Gotion opponents, including village residents and board members, who wanted the CFIUS review of the foreign company and its finances to assess whether a national security risk is present.
“Businesses who willingly file the paperwork make us feel more at peace, like we don’t have to be so afraid,” Mayor Annette LaMore stated, noting several community members had asked her about the request.
“I also think we need to know this is not a security risk. So they shouldn’t even be afraid to fill it out if they’re not a security risk. So what, where’s the harm in asking?” LaMore questioned.
Trustees CJ Boudreau and Todd Crockett pushed back, Crockett wanting a committee discussion before a vote and Boudreau finding “no point” to the request since it would likely get rejected.
However, from what Plotinsky explained, there would be no risk in making it.
“Whether it’s a declaration or a joint voluntary notice, if you file either filing with CFIUS and there’s not jurisdiction, they’re not going to accept the filing. They’re just going to bounce it for lack of jurisdiction,” Plotinsky explained.
Opponents have long-stated concerns and alleged claims that Gotion has ties to the Chinese Communist Party and presents a security threat to the United States.
Plotinsky explained that filing with CFIUS, when not required, comes down to a judgment call if a party believes CFIUS would “have an interest in the transaction because it poses potential national security risk,” and noted those who don’t file “do that to some extent at your own risk because CFIUS can second-guess you if it disagrees.”
He further explained what gives rise to jurisdiction, which includes when a foreign company acquires or invests in a U.S. business or when it is within 100-mile proximity of a specific U.S. military base or installments listed by CFIUS.
Gotion is a “greenfield” site, a term used by CFIUS to describe a company that has not invested in an existing U.S. business. It also doesn’t meet the requirements of a “covered investment” or one that is near a military base.
The nearest military installations on the CFIUS list include Scott Air Force Base in southern Illinois, 250 miles from Manteno, or the Muscatatuck Urban Training Center in Indiana, also more than 200 miles from Manteno.
Plotinsky affirmed he didn’t have a position on whether Gotion should file and advised he would leave that up to the board to decide.
Ultimately, after Trustees Mike Barry and Peggy Vaughn motioned and seconded to vote on the issue and request Gotion file the form for a CFIUS filing, the request failed 3-2, with other board members voting in opposition of the request. Trustee Annette Zimbelman was absent.
“I really don’t see the purpose of this, since there’s no jurisdiction at this point by CFIUS for this,” Boudreau said.
Trustee Joel Gesky initially said he wasn’t opposed to asking for a CFIUS review but was concerned it would hurt the village in the lawsuit. He asked Village Attorney Joe Cainkar if it would.
“Just us sitting here talking about it doesn’t help the case,” Cainkar replied.
Gesky took some pause before casting his vote, but ultimately, voted “No, not at this time,” which gave rise to some jeers and boos from the audience members.
Andrew Wheeler, Gotion’s PR representative, had attended the meeting to introduce the company’s counsel and address concerns, one of which was about what was being stored in the containers on the property.
Wheeler said the containers are either empty or storing production equipment for their Phase 2 buildout, which is monitored under all applicable fire codes. He urged people to submit questions to the company’s website, whereupon he would answer them with third-party validation — but not if it was an accusation.
Several residents showed up to the board meeting to voice their disapproval and concern to the village board, which is a regular occurrence.
“The people who come here that talk at these meetings love this town. That’s why we come here because we’re very concerned about what’s going on because questions were never answered in the beginning, and we’re finally starting to get some answers,” resident Bob Forsythe said during the board meeting.
During regular business, the board approved a liquor license for a gas station on North Locust to sell packaged alcohol, Don Lester to be the village’s chaplain, and an ordinance on group homes to ensure it aligns with state and federal requirements.
The board also had before it a vote on the short-term rental policy, which it passed at the end of November. However, LaMore requested new changes, which triggered the new vote. Board members questioned why it was up for a vote again, wanting to know what changed and why.
“I hate to say, it doesn’t make us look good when we’re changing the ordinance we just passed two months ago, and we’re removing some of the stuff,” Boudreau said.