MUSKEGON, Mich. (WZZM) - Problems continue to mount for a lakeshore steel company. WZZM 13 On Your Side exposed a problem with bad checks from Michigan Steel and its sister company Rothbury Steel. Now we're learning both companies owe taxes and they did not follow through on promises made to the state.
The newest road in Oceana County runs from U.S. 31 to Rothbury Steel. The Michigan Department of Transportation spent more than $2 million to rebuild Winston Road.
The grant money was to directly help the company get trucks hauling heavy parts to the interstate. In return Rothbury Steel told MDOT as many as 200 new jobs would be the byproduct of road improvements.
Monday, only a dozen vehicles were in the parking lot and there were no signs of trucks hauling trailers to U.S. 31.
Workers inside the plant tell WZZM 13 in recent weeks banks would not cash their checks. Friday's checks were cashed-- but only after workers were told by management to use a specific bank in New Era and to go to the bank at a specific time.
The company's apparent financial problems have extended to Grant Township too. Tax records show Rothbury Steel owes the township more than $140,000 dollars in back taxes. The company didn't pay their summer tax bill and soon their winter tax bill will be past due as well.
Off camera, the township supervisor said Rothbury Steel's problems are "terribly disappointing."
In Muskegon, the unpaid tax bill is even larger. Records show Michigan Steel owes the city $360,000 dollars. There are even some tax bills from 2010 that have not been paid.
Both companies make large parts, used on railroad cars and mining equipment.
Michigan Steel's owners and managers did not return our phone calls.