Foxconn makes $60 million deposit, prompting village to exercise land options

Mount Pleasant providing notice to owners of 1,400 acres

Jenny Trick, RCEDC executive director, looks on as the Foxconn location is unveiled.

Last updated on July 2nd, 2019 at 09:12 pm

Foxconn Technology Group has deposited $60 million into an escrow account the village of Mount Pleasant will use to fund land acquisitions for the company’s $10 billion LCD panel manufacturing campus.

Jenny Trick, RCEDC executive director, looks on as the Foxconn location is unveiled in October.

The deposit was actually due by Dec. 15, but attorneys for the company, village and Racine County announced last week they were working to get the account set up and the deposit would be made by today.

Foxconn’s deposit marks a milestone as it is the first significant funding commitment the company has made to the project.

“The project team has been hard at work for months to make the Foxconn project a reality,” said Dave DeGroot, Mount Pleasant president. “This major monetary investment is a significant milestone that should be marked and celebrated.”

Having access to the cash prompted the village to exercise its options on 1,400 acres of land with a total cost of $82 million. The land is in areas one, two and three of the project area and the village anticipates closing on the land acquisitions in early February.

The acquisitions cover all of the land Mount Pleasant had under option to purchase for the project.

Foxconn’s initial facility will be located in area one, which stretches from Braun Road to Highway KR and from Interstate 94 to Highway H. Land in that area will be paid for with bonding that will be paid back by a special assessment paid by Foxconn.

The cash deposit Foxconn made Friday covers land in area two, which is north of Braun Road to Highway 11 and from the interstate to Highway H, and area three, which is stretches from area one east to 90th Street.

Area two is slated to be used for Foxconn’s future expansion while area three will be used for construction staging and eventually for Foxconn suppliers.

There have been other signs of the project moving forward as well. The Racine Water Commission approved two contracts this week for water main work that will begin in February. One of the mains will supply a large batch concrete plant that will support Foxconn’s construction.

The timing of the contracts, part of $88 million in water infrastructure projects included in the local financing package for Foxconn, was intended to coincide with state Department of Transportation work in the area.

The DOT is planning to start work on $100 million in projects on local roads and I-94 next year in the area around Foxconn.

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Arthur covers banking and finance and the economy at BizTimes while also leading special projects as an associate editor. He also spent five years covering manufacturing at BizTimes. He previously was managing editor at The Waukesha Freeman. He is a graduate of Carroll University and did graduate coursework at Marquette. A native of southeastern Wisconsin, he is also a nationally certified gymnastics judge and enjoys golf on the weekends.

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