Evers Announces New, Smaller Foxconn Deal
Company has failed to meet goals of original $4 billion agreement.
The original agreement called for up to $4.1 billion incentive package via refundable tax credits and infrastructure investments in exchange for up to $10 billion in investment and the creation of 13,000 jobs. As part of the agreement, the company had to build a generation 10.5 LCD fabrication facility. But it almost immediately scaled down those plants. The state and local government entities have meanwhile spent millions on associated infrastructure.
Terms of the new agreement were not disclosed. The Wisconsin Economic Development Corporation board will review the amended agreement.
“I’ve said all along that my goal as governor would be to find an agreement that works for Wisconsin taxpayers while providing the support Foxconn needs to be successful here in our state,” said Evers. “I’m incredibly grateful for all the folks at the WEDC and Foxconn for their help working to find a solution that works for everyone, and I look forward to the amendment being approved by the WEDC Board of Directors.”
The original agreement was negotiated between then-Governor Scott Walker and Foxconn founder and then-chairman Terry Gou in 2017. The agreement split $2.85 billion in state credits into two tranches, one for job creation and one for capital investment. It also gave a $150 million break on sales taxes and committed the state to spend $282 million on highway expansion projects.
Evers, who defeated Walker in 2018, has refused to award any of the credits to date as the company has missed some hiring targets and failed to live up to key parts of the contract, including building the promised LCD facility.
Utility ratepayers are also committed to paying back $117 million in infrastructure costs, plus interest, on a substation and high-voltage power lines.
Foxconn has constructed buildings on the site, but none for LCD manufacturing. The company has repeatedly announced new initiatives, including coffee kiosks and ventilators, that have been quietly canceled.
Last month Foxconn was announced as the selected manufacturer for a new electric car from Fisker Inc. and an executive said the company could invest $13 billion, not $10 billion, in its Wisconsin plant. Neither Evers, nor Lee, mentioned the potential car factory in the press release, nor a bigger investment.
- Foxconn Deal Doesn’t Reduce Local Government Risk - Corri Hess - May 3rd, 2021
- Murphy’s Law: The True Costs of New Foxconn Deal - Bruce Murphy - Apr 28th, 2021
- The State of Politics: All Sides Won On New Foxconn Deal - Steven Walters - Apr 26th, 2021
- New Foxconn Deal Cuts Incentives By $2.77 Billion - Jeramey Jannene - Apr 20th, 2021
- Rep Hintz: Statement on Approval of Revised Foxconn Contract - State Rep. Gordon Hintz - Apr 20th, 2021
- New Foxconn and WEDC Agreement Provides Flexibility and Clarity for Renewed Tech Investments in Science and Technology Park - Foxconn Technology Group - Apr 20th, 2021
- Gov. Evers Announces Renegotiated Foxconn Contract to Save Taxpayers $2.77 Billion - Gov. Tony Evers - Apr 20th, 2021
- Rep. Hintz: Statement on Foxconn Announcement - State Rep. Gordon Hintz - Apr 19th, 2021
- Evers Announces New, Smaller Foxconn Deal - Jeramey Jannene - Apr 19th, 2021
- Gov. Evers, Foxconn Reach New Agreement - Gov. Tony Evers - Apr 19th, 2021
Read more about Foxconn Facility here