Wisconsin town still waiting on Foxconn’s new factory

Moody’s downgraded the village’s rating after officials borrowed $350M for property acquisition, new infrastructure

National /
May.May 05, 2019 11:00 AM

US President Donald Trump (L) and Foxconn Chairman Terry Gou leave after a groundbreaking for a Foxconn facility at the Wisconsin Valley Science and Technology Park June 28, 2018 in Mount Pleasant, Wisconsin (Credit: Brendan Smialowski/AFP/Getty Images)

Public officials have spent hundreds of millions of dollars clearing the way for Foxconn to build its planned $10 billion factory in southeast Wisconsin, but the Taiwanese company has yet to hold up its end of the deal.

As Foxconn has been lagging on its building and hiring commitments, some residents are questioning the billions of dollars in subsidies the town and state sunk into the proposal, according to the Wall Street Journal.

To date, contractors have razed 75 homes and cleared hundreds of acres of farmland in the village of Mount Pleasant since the deal was announced in 2017. But, by the end of 2018, the firm had spent $99 million, or 1 percent of its committed investment, on the project. And it had hired just 200 in-state employees, after committing to hire more than 2,000 by the end of 2019.

After the village and Racine County borrowed some $350 million to buy land and beef up infrastructure in advance of construction of the phone screen factory, officials have yet to receive any building plans from the developer. The debt led Moody’s to downgrade Mount Pleasant’s credit rating.

A representative of Foxconn told the Journal the firm would begin the “next phases of construction” on the site by this summer.

Most recently, in February, the manufacturing giant appeared to switch up its plans for the nearly 800-acre campus, but it recommitted to its original plan amid pressure from Gov. Tony Evers and President Donald Trump. [WSJ] — Alex Nitkin


Related Articles

arrow_forward_ios
RSA president Joe Strasburg, President Joe Biden and NAA President Bob Pinnegar (Getty, NAA)
Biden to approve new, targeted eviction ban as landlords plead for rent relief
Biden to approve new, targeted eviction ban as landlords plead for rent relief
Mayor Bill de Blasio (Getty, iStock)
NYC to require vaccines for indoor dining, gyms and performance venues
NYC to require vaccines for indoor dining, gyms and performance venues
Gov. Andrew Cuomo and Mayor Bill de Blasio (Getty, iStock)
De Blasio bumps up city vouchers as state increase stalls
De Blasio bumps up city vouchers as state increase stalls
Donald Trump and the Trump International Hotel & Tower in Chicago (Getty, iStock)
Donald Trump is owed $1M tax refund on Chicago skyscraper
Donald Trump is owed $1M tax refund on Chicago skyscraper
Rep. Alexandria Ocasio-Cortez, President Joe Biden and House Speaker Nancy Pelosi (Getty)
Democrats urge Biden to extend eviction ban after House effort falls short
Democrats urge Biden to extend eviction ban after House effort falls short
Photo Illustration of Donald Trump (Illustration by Kevin Rebong for The Real Deal)
Treasury Department must give Trump’s tax returns to Congress: DOJ
Treasury Department must give Trump’s tax returns to Congress: DOJ
Mayor Steven Fulop (Getty, iStock)
Jersey City to provide up to $10K more rent relief per tenant
Jersey City to provide up to $10K more rent relief per tenant
Susan Rice (Getty, iStock)
Susan Rice to co-chair home appraisal inequity task force
Susan Rice to co-chair home appraisal inequity task force
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...