MOUNT PLEASANT — When property owners in Mount Pleasant receive their tax bills from the village late this year, they’ll have some big company — Foxconn Technology Group, which is expected to become the village’s largest taxpayer.
Claude Lois, Foxconn project director for the village, updated the Village Board Tuesday and noted that Foxconn property is now assessed at $57,565,400 in Area I. That is an increase in value of $49.2 million over the same parcels in 2018. Area I sits north of Highway KR, south of Braun Road, west of Highway H and east of Interstate 94.
If the tax rate stays the same as last year, the village would collect $1,152,324 in property taxes from Foxconn this year.
The revenue on that increase in value is set to be used to pay for infrastructure work done within the Wisconn Valley development area. The assessment on the base value will be distributed to several taxing entities including the village, county, Gateway Technical College and Racine Unified School District.
Before establishing the tax incremental district, or TID, the assessed property value for the entire Foxconn area was roughly $8 million, which will stay the same in order not to negatively affect the general fund of the village.
The increased value, $49.2 million, goes toward paying off the TID. A tax incremental district allows a municipality to pay for improvements within the district by using incremental growth in property taxes generated as development occurs there.
“Since the beginning of this project, we have been confident that this development would be an incredible opportunity for our village,” said Village President David DeGroot in a news release sent Wednesday. “Recent assessments show that the village is beginning to reap the financial benefits of this opportunity.”
The village has yet not set a budget or a tax rate for the coming year.
Aside from paying property taxes, Foxconn is responsible for paying a special assessment to cover the cost of all the land acquisitions in the project area.
So far the village has placed $90 million of special assessments on about 850 acres of land in Area I conveyed to Foxconn. The village plans for additional special assessments in the future on other parts of the property.
Lois said the village has acquired about 1,150 acres in Area I, 650 acres in Area II and 625 acres in Area III of the Foxconn area. Area II is located south of Highway 11, east of Interstate 94, West of Highway H and north of Braun Road. Area III is located south of Braun Road, east of Highway H, west of 90th Street and north of Highway KR.
The village has also acquired additional pieces of land just outside of the Foxconn area, including 30 acres of land north of the development site, and strips of land in Sturtevant and Somers for roadway expansions.
According to Lois, Foxconn has received permits for the footings and foundations for a nearly 1 million-square-foot advanced display manufacturing facility. Construction is scheduled to begin in June with the goal of starting operations before the end of 2020.
There have also been major advancements in road construction around the site.
Lois said work has been completed on Highway H and the East Frontage Road; International Drive is about 90% done; Braun Road is 70% complete; and the new Wisconn Valley Way is 30% complete.
Lois added that contracts have been awarded for Highway 11 and Louis Sorenson Road, but work has not yet started.
Other Foxconn news
While Foxconn plans to build an entire manufacturing campus, the core of the development is set to be its Generation 6 “Gen6” manufacturing facility.
On Wednesday Foxconn announced the contract winners to build the nearly 1 million-square-foot foundation of the facility. The contracts, which carry a combined total contract value of nearly $13 million, represent the first awards for vertical construction of the Gen6 building.
The Gen6 facility will be where liquid crystal display screens are assembled.
Prime subcontractors that have been awarded contracts and are set to commence work on the foundations and related work are:
- PSI Intertek, Waukesha — Materials testing for foundations and related construction
- CD Smith Construction, Fond du Lac — Excavation and concrete foundation work
- Otis Elevator Company, Milwaukee — Elevator work
PSI Intertek is headquartered in Arlington Heights, Ill. but has offices in Wisconsin. Otis Elevator Company is based in Farmington, Conn., but has offices in Milwaukee.
When asked about selecting companies headquartered in other states, Foxconn replied, “We can confirm that all companies designated as ‘Wisconsin-based’ are designated based on the definitions laid out in the Wisconsin First program and have a presence in the State of Wisconsin.”
According to the state, the Wisconsin First approach only requires businesses be established in Wisconsin for at least one year.
Peter Buck, executive director of the Wisconn Valley Science and Technology Park, said Foxconn is “proud to be delivering on our ‘Wisconsin First’ commitment by awarding these contracts to outstanding Wisconsin-based companies.
“These are the first of many forthcoming bid awards for the vertical construction of our advanced manufacturing facility, and we’re excited to drive further the construction progress at the Wisconn Valley Science and Technology Park in the coming weeks and months,” Buck said.