RACINE COUNTY — By the end of this month Mount Pleasant, Racine County and Foxconn Technology Group officials expect to finalize a comprehensive development agreement for a $10 billion manufacturing campus that may employ up to 13,000 people.
That plan is outlined in a memorandum of understanding, or MOU, the three parties signed Oct. 4, the day Foxconn publicly announced that it plans to settle into the southwest corner of Mount Pleasant.
Taiwan-based Foxconn Group makes liquid crystal display screens; here, it will manufacture LCD screens for many types of devices, from aircraft systems to self-driving cars — as well as finished products such as televisions.
According to the MOU, one requirement of Foxconn would be: “Create approximately 13,000 new full-time jobs, the majority of which will be located in Racine County, in accordance with the same terms as in the agreement between the company and Wisconsin Economic Development Corporation.”
The MOU calls for the development agreement among the three parties to be reached by Oct. 31 and signed by all three as soon as possible after it is reached, but no later than Nov. 30.
Foxconn’s chosen area for a 20-million-square-foot, state-of-the-art manufacturing plant, is on 1,198 acres between Interstate 94, highways H and KR and Braun Road.
A second, 1,073-acre area directly north of that will be acquired for Foxconn expansion. A third, 622-acre area east of the manufacturing campus will be acquired for construction staging during the building of that campus, and in the future for other development.
The financing of Foxconn’s project will start later this year, with a $55.2 million bond issuance by Racine County for land acquisition in the area where the manufacturing campus will be built.
Foxconn has agreed to provide $60 million in up-front money for land acquisition in area two, its potential future expansion area. Mount Pleasant will hold title to that land until Foxconn can acquire pieces of it by developing chunks of that area.
The company’s manufacturing complex, and development to follow, will be paid for entirely by a tax increment finance district, or TID. Tax incremental financing allows a municipality to pay for improvements in a district with the future taxes generated as development occurs there. The financing anticipates a total investment in the project from the TID of $764 million.