MOUNT PLEASANT — With all parties having signed on the dotted line — the Village of Mount Pleasant, Racine County and Foxconn Technology Group — the bills can finally be paid.
Throughout the negotiations and land acquisition process, several companies and consultants have been paid for using funds from the village, county and Racine County Economic Development Corp.
The Foxconn initiatives package, passed by the state Legislature, allows for $15 million in grants from the Wisconsin Department of Administration to be applied for to reimburse the local entities. So far, the village has received $2.5 million for those costs.
On Monday morning, Mount Pleasant’s Finance/Legal/License Committee approved reimbursing the county $500,000, RCEDC almost $155,000, and the village just over $110,000.
The committee also approved agreements with: Foth Infrastructure and Environment LLC, for work done on the sewer projects related to the tax incremental district related to the project; James Machnick, who has been working on land acquisitions; and Pitts Brothers and Associates, LLC, and G.A. Bock and Associates Inc., for real estate appraisal services.
Now the agreements and requests for payment go to the Village Board for final approval, which likely will be at the Dec. 11 meeting.
Claude Lois, village project director, said many of these agreements have been approved by the county and now need to be “moved over to the village” for payments. Some invoices apparently have been outstanding going back to August.
A financial bridge of sorts
Lois said the state grants will be used to pay for professional services until the tax increment finance district (TID) for the Foxconn development area is running. In a TID, increased property tax revenue is used to finance the infrastructure improvements that made the increased property value possible.
“We’ll apply for that grant on a monthly basis until the TID increment comes in,” Lois said. “Once the TID is up and running we’ll pay that grant back.”
Lois said the grants are designed to cover any shortfalls.
Foxconn is planning to build a massive manufacturing campus southwestern corner of Mount Pleasant, with construction scheduled to start next year. The campus is expected to employ up to 13,000 people — excluding an estimated 10,000 construction jobs and many thousands more indirect jobs.
On Friday, the development agreement with Foxconn was signed by Village President Dave DeGroot, Racine County Executive Jonathan Delagrave, and Louis Woo, special assistant to Foxconn Chairman and CEO Terry Gou.