Mount Pleasant, Racine in Legal Battle Over Water After Foxconn Failure

The city of Racine and the village of Mount Pleasant are embroiled in a legal battle over water following the failure of the Foxconn project.

Racine, which shares a border with Mount Pleasant, supplies and delivers water to the village. But until earlier in the month, the city had held off on approving recent applications for water service extensions for developments in the village of Mount Pleasant.

A complaint filed by the village against Racine claims the city has created a “de facto development ban in Mount Pleasant.” The complaint, filed with the Public Service Commission of Wisconsin, said at least five projects have been impacted by the city not approving needed water service extensions for developments.

“Racine’s refusal to permit new water mains in Mount Pleasant to connect to the Racine Water Utility is an unreasonable practice that harms Mount Pleasant,” the complaint states.

Racine has had a water agreement in place with Mount Pleasant since 2004. But in 2018, that agreement was amended to provide water for the tax incremental district on land originally slated for development by Foxconn.

As the years went on, plans for the Foxconn project never came to fruition. In the meantime, Microsoft has announced plans to build data centers in Mount Pleasant. Those plans have been praised by some in the community, but the project will likely include only a fraction of the 13,000 jobs that Foxconn promised the community in 2017.

In a statement, Racine Mayor Cory Mason said the city has not “received the benefits” that the city had hoped for when Foxconn announced their plans.

“The announcement of Microsoft coming to the community is exciting for the region,” Mason said. “However, it is much different than the jobs promised with the failed Foxconn deal. Those changes have led to the need to update these agreements between the city and Mount Pleasant.”

Mason said in the statement that the city applied for a diversion exemption for the Great Lakes Compact on the behalf of the village and also “expanded utility services out to the interstate” in the amended water agreement.

“These conditions included the economic benefits that the city would enjoy based upon the significant job projections associated with the Foxconn project,” the statement said.

“The failed Foxconn deal and its empty job promises, combined with changes made to the law and the circumstances around providing water and sewer service to the region, have been devastating for the City of Racine,” the statement added. “Mount Pleasant received the substantial economic benefits of development directly resulting from the city providing water and wastewater service, but fell short on its job promises that would have been enjoyed by the region.”

Mason is seeking to renegotiate the water agreement with the village. In an email, Sean Ryan, communications director for the city of Racine, said the city intends to “continue discussions” with Mount Pleasant officials.

The dispute led Mount Pleasant Village President Dave DeGroot to appear before the Racine Common Council during a public hearing over the summer.

DeGroot said after the water agreement with the city was amended, 14 water projects were approved in the village up until August 2023. Those projects were approved by the Racine Water Works Commission, the Finance and Personnel Committee and then finally by the Racine Common Council.

But since August 2023, DeGroot said the city started “holding up projects.”

“We got to a point where I thought maybe you alders aren’t aware of what’s going on here,” DeGroot said during the public hearing.

The Racine Common Council did approve three water main projects in Mount Pleasant during a Sept. 3 meeting, including a project that would benefit the Microsoft development. The Racine Water Works Commission also approved other water extensions in Mount Pleasant during a meeting Tuesday afternoon  — those still need to be approved by the common council.

Racine Alder Renee Kelly said she doesn’t believe the city or the mayor has the right to withhold water from projects.

“We don’t have that power. He (Mason) doesn’t have that power,” Kelly said. “What he needs to do is let the legislative process happen.”

DeGroot, who didn’t respond to a reporter’s request for an interview for the story, has said staff from the office of Gov. Tony Evers had reached out to Mason about the dispute. Britt Cudaback, communications director for the office of Gov. Tony Evers, confirmed their office has been in touch with officials.

“Our administration has brought all involved parties to the table to help facilitate conversations and reach consensus on all pending water connections, and we will continue working to support this important project and its success, just as we have from the beginning,” Cudaback wrote in an email Wednesday.

But discussions are still ongoing between the village and city of Racine. On Sept. 12, Racine and Mount Pleasant agreed to delay the date for Racine’s response to the complaint to Oct. 11, according to a filing with the Public Service Commission of Wisconsin.

Mount Pleasant, Racine facing off in legal battle over water in wake of Foxconn deal was originally published by Wisconsin Public Radio.