Otis Singleton
The Wisconn Valley Science and Technology Park was established to provide a site for the Foxconn campus and factory in Mount Pleasant, Wisconsin. The project, which was touted as the eighth wonder by former US President Donald Trump, involved substantial upfront investments in infrastructure and land acquisition by Mount Pleasant and Racine County since 2017. The village board of Mount Pleasant voted in April 2023 to allow Microsoft to purchase a portion of the Foxconn land for over $100 million, which will be used to reimburse Foxconn and pay down some of the village's debts. While Foxconn is the largest taxpayer in Racine County, the company has faced criticism for failing to deliver on its initial promises of job creation and economic development in the region.
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What You'll Learn
Foxconn's $10 billion investment in Wisconsin
In 2017, Foxconn, the world's largest contract manufacturer of electronic devices, proposed a $10 billion investment in Wisconsin. The plan was to build a 20-million-square-foot manufacturing campus in Mount Pleasant, a small village in Wisconsin, that would create 13,000 jobs. The project, called "Wisconn Valley", was touted by then-President Donald Trump as the eighth wonder of the world and an example of his ""America First" agenda reviving US tech manufacturing.
The deal included a $2.85 billion state tax incentive package, with Foxconn eligible for a $150 million in sales tax breaks, bringing the total package to $3 billion. Local governments also committed to spending on infrastructure upgrades, including roads and highways, sewers, and water systems. The total taxpayer-funded subsidies were estimated to be over $4 billion.
However, the project faced skepticism from industry executives and local opposition due to concerns about taxpayer giveaways and the acquisition of residential properties through eminent domain. Despite the initial promises, Foxconn gradually reduced its plans, and in 2021, it was reported that the company was drastically scaling back its investment in Wisconsin. Under a new agreement, Foxconn reduced its planned investment to $672 million and cut the number of new jobs to 1,454.
As of 2023, two of the three buildings constructed as part of the initiative were empty and put up for sale by Foxconn. Foxconn has since focused on other investments in Wisconsin, such as innovation centers in Milwaukee, Green Bay, and Eau Claire, and partnerships with local universities.
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The Wisconn Valley Science and Technology Park
The project was heavily touted by Governor Scott Walker and Republicans in Wisconsin, with President Donald Trump praising the plant at the groundbreaking ceremony, describing it as "the Eighth Wonder of the World". The state legislature passed a $2.85 billion tax incentive package for Foxconn, requiring them to meet certain hiring and capital investment benchmarks to receive tax credits. The village of Mount Pleasant and Racine County were tasked with paying property owners and upgrading the infrastructure, including substantial upgrades to the town water, sewage, and electric systems.
However, Foxconn gradually reduced its plans to build high-definition TV screens, and in 2021, two of the three buildings built as part of the initiative were empty and placed on sale. The company has faced lawsuits from citizens and taxpayers of Racine County, claiming breach of contract and failure to pay overtime. Despite this, Foxconn has continued to invest in Wisconsin, signing agreements with universities and local businesses, and partnering with We Energies to build a solar farm on the property.
In April 2023, the village board of Mount Pleasant voted to allow Microsoft to build a data center campus on a portion of Foxconn's land, with the company reimbursing Foxconn for releasing its rights to the land.
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The impact on Racine County
The impact of the Foxconn project on Racine County has been significant, with a mix of positive and negative effects.
On the one hand, the project has brought economic development and infrastructure upgrades to the area. Foxconn has invested in innovation centers and leased properties in Racine, contributing to the local economy. The company has also become the largest taxpayer in Racine County, providing a substantial source of revenue for the county and local municipalities. The development of the Foxconn campus has also resulted in substantial upgrades to the town's water, sewage, and electric systems, improving the overall infrastructure for residents and businesses.
However, there have also been negative consequences for Racine County. The project has faced criticism for its impact on local residents, with hundreds of people forced to move out of their homes and family farms due to eminent domain laws. The village of Mount Pleasant and Racine County incurred substantial debt, borrowing over $300 million to buy land and develop infrastructure for the project. Additionally, Foxconn's failure to deliver on its initial promises of job creation and investment has left a sense of disappointment and financial burden in the community. The company downsized its plans, reducing its jobs promise from 13,000 to 1,454, and sold two mostly empty buildings in the county, falling far short of its initial commitments.
In summary, the Foxconn project has had a significant impact on Racine County, with both positive and negative consequences. While it has brought economic development and infrastructure upgrades, it has also displaced residents, incurred substantial debt, and failed to deliver on initial promises of job creation and investment. The county is now navigating the aftermath of the project, seeking to attract new businesses and manage its financial obligations.
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Foxconn's plans for the site
Foxconn initially planned to build a sprawling manufacturing plant in Mount Pleasant, Wisconsin, with the promise of creating over 13,000 jobs for local people to build high-definition TV screens. The Wisconn Valley Science and Technology Park was established to provide a site for the Foxconn campus and factory, with the company investing in construction contracts to build manufacturing, assembly, and research facilities.
However, Foxconn has since reduced its plans for the site, with two of the three buildings constructed being put up for sale in 2023. The company has also faced criticism for not following through on its job creation promises, with only around 1,100 full-time workers employed at the site as of last year.
In 2021, Foxconn made its properties in Racine and Eau Claire available for lease, with the hope of adding to the "vibrancy of the downtown community." The company has also signed agreements with universities and local businesses to build "innovation centers" in several Wisconsin cities.
Foxconn has also made deals with other companies, such as Fisker, to build electric cars, and with We Energies to develop a solar farm on the Mount Pleasant property. The company has also expressed interest in making electric vehicle batteries and energy storage components, as well as exploring opportunities in robotics, medical imaging, and industrial imaging.
Despite some setbacks and changes in plans, Foxconn continues to fulfill its financial obligations under the local development agreement and is the largest taxpayer in Mount Pleasant and Racine County.
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Lawsuits against Foxconn
In 2017, the Wisconn Valley Science and Technology Park was established to provide a site for the Foxconn campus and factory in Mount Pleasant, Wisconsin. The area was declared "blighted" and designated a redevelopment area, forcing property owners to sell under the threat of seizing the land under eminent domain. Mount Pleasant and Racine County spent millions on infrastructure upgrades, land acquisition, and property payments to prepare for the project.
However, Foxconn gradually reduced its plans to build high-definition TV screens at its Mount Pleasant facility, and multiple lawsuits have since been filed against the company. In 2018, a lawsuit by a few Foxconn-area homeowners who claimed they were treated unfairly during the property-buying process was thrown out of court. In 2021, a lawsuit was filed by a real estate company, claiming that Foxconn breached its contract by failing to construct a high-tech screen plant, employ local workers, and make capital investments as agreed. This lawsuit was dismissed in February 2021.
In December 2023, another lawsuit was filed against Foxconn, alleging that the company failed to employ local workers and make capital investments "to the extent agreed." This lawsuit was brought by Caledonia resident Daniel Hintz and Hintz Real Estate Development, and it seeks to recover the hundreds of millions of dollars spent by local governments to prepare for the project.
In addition to these lawsuits, Foxconn has faced criticism and political fallout for its failure to deliver on job creation promises and its impact on the local community. Microsoft has since purchased a portion of Foxconn's land for over $100 million, and local officials are hoping to attract another technology company to pair with Foxconn.
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Frequently asked questions
It is unclear which company won the electrical bid for Foxconn Racine. However, the American Transmission Company installed high-voltage power lines and a new substation to service Foxconn’s promised campus.
The Foxconn campus is used for manufacturing data infrastructure and other operations related to high-performance computing, cloud computing, and artificial intelligence.
The Foxconn project has been characterised as a "parable of overpromise and under-delivery". The company has invested in the area and created some jobs, but not to the extent initially promised. As of 2023, two of the three buildings constructed were empty and put up for sale.
