Local estimate says Foxconn could be worth $500 million, could still cost Wisconsin taxpayers

Local officials report that Foxconn’s development in Southwestern Wisconsin will be worth more than $500 million within the next year, but there are still worries it won’t reach that valuation.

Foxconn — the world’s largest electronic manufacturing service — announced it would establish a plant in Wisconsin in 2017. Since then, the project has faced various setbacks and political controversy due to agreements of up to $4 billion in incentive payments encouraged by former Gov. Scott Walker. 

In the value estimate calculated by a team of consultants, Foxconn’s project and other developments in Mount Pleasant could be worth $522 million — 37 percent of the $1.4 billion value the district is supposed to achieve by 2023, according to the Milwaukee Journal Sentinel.

However, the same calculation was met with skepticism that Foxconn would be unable to create its projection of the 13,000 new jobs by 2023, leading to criticism from Assembly Minority Leader Gordon Hintz, D-Oshkosh. 

"It sounds to me like this is another attempt to minimize how far this project has fallen short," Hintz said...

See Also:

Project Plan for the Creation of Tax Incremental District No. 5

   ...more

Ken Notes: I have a question for Assembly Person Hintz and other who are speaking out. Have they talked to local officials in Mount Pleasant -- because I have (and so has JS see their article "scenario") and while it is clear that the project is headed in a different direction, they point to a development agreement that guarantees value and minimum property tax payments for the life on the contract. It should also be noted that the State side is also protected by an agreement that offers credits based on the number of jobs created. Some are suggesting we renegotiate this, but my concern is that if we do change the State contract. how binding is the local development agreement. Also the state would have to cover up to $120 million in debt for local governments if the project fails.

I included a link to the Project Plan for the TID 5, if the Community did what is outlined in the plan, and I have no reason to doubt that they did not, their investment in land and infrastructure is guaranteed in tax payment made through 2049. Anyone writing or speaking about Foxconn should have read this. If not they are reporting on Tom Sawyer without having read the book.



- - Volume: 8 - WEEK: 4 Date: 1/23/2020 9:52:54 AM -