At the present time, WEDC says they are currently in negotiations with Foxconn to "right-size" the state's contract with them. However, virtually nothing is known about how these negotiations will affect the Local Development Agreement which call for the same LCD factory, capital investment and 13,000 full time jobs.
Mount Pleasant and Racine County have already invested roughly half of the billion dollar TIF, preparing for a factory that is not happening, and the Village has conveyed all of Area I to Foxconn, who is now the legal owner.
Area II and III have not been conveyed to Foxconn - yet. A significant portion of Area II (roughly 400 acres) is still owned by Creuziger Farms, as the Village was unsuccessful in condemning their property through eminent domain. It is unknown when the Village plans to convey the remaining parcels. Once they do, the Village will lose any leverage that remains to protect the Village's investments.
The Local Development Agreement requires Foxconn to pay an annual special assessment on the land as if they had actually made the $10 Billion capital investment, in addition to property taxes.
With the State having rendered the contract essentially dead, it is hard to imagine that Foxconn will feel obligated to pay Mount Pleasant for land and property that is worth a fraction of what was originally intended.
This creates tremendous exposure for our Village, and the state guarantees only 40% of our investment if Foxconn defaults.
There is a great deal of discussion happening about what the Village could do with the land if Foxconn defaults. What is less understood, is that not only is Foxconn already the owner of a large portion of the land, the Village agreed to a ten year option with Foxconn on the rest.
The idea that we could just resell it to someone else is simplistic - at best. The TID area itself is designated by law as an "electronics and technology" zone. Businesses who don't fit that description are not eligible for TIF benefits, unless the TID description is changed in the state legislature.
We believe there are two things right now that really matter:
Please use the contact forms below to ask questions and demand transparency at the Village, County and State level. Thank you!