Michigan is demanding repayment of $35 million from a state-backed mobility research center supporters say is critical to keeping autonomous vehicle development in Michigan. The American Center for Mobility, a 340-acre test facility in Ypsilanti Township, says annual payment sought by the state could jeopardize the nonprofit project despite a financial rebound last year. “It’s a state investment to help cement the auto industry’s place in Michigan,” said state Sen. Jeff Irwin, D-Ann Arbor, who wants the state to forgive the loan or delay debt repayment. “It makes sense to continue that effort.” The nonprofit tests robotaxis, automated trucks and high-tech delivery services. Last year, documents show it built a $1.59 million surplus, which would be wiped out by Michigan’s demands for $1.62 million per year in payments on a loan that went into forbearance last year. The conflict comes at a pivotal time for self-driving technology after US automotive research funding went through years of “peaks and valleys,” said Glenn Stevens, executive director of MichAuto advocacy group. In all, the state has invested $67 million in the site, a former General Motors facility, and already has forgiven an earlier $15 million loan. Pushing too hard for payments would make that spending “worthless” if it drives the project out of business, said John Rakolta, a metro Detroit developer. “It sounds like a conundrum right now for the state, which would probably get criticized for not (collecting) the loan,” said Rakolta, who participated in discussions about the formation of the ACM but is not involved in the project. Negotiations about the debt are ongoing with the Michigan Economic Development Corp., a quasi-public business development agency. Its spokesperson, Danielle Emerson, said the contract with the state clearly calls for repayment. ‘We’ve proven ourselves’ Auto industry advocates say Michigan is in a “fierce