FOXCONN IN WISCONSIN BUILDING FOR THE FUTURE ABOUT THE PROJECT - - PowerPoint PPT Presentation

FOXCONN IN WISCONSIN

BUILDING FOR THE FUTURE

North America’s first state-of-the-art advanced display manufacturing campus in the Village of Mount Pleasant, Racine County.

1,073 Acres 1,198 Acres 622 Acres

ABOUT THE PROJECT

• Largest economic development project in Wisconsin history
• Largest greenfield investment by a foreign-based company in U.S.

history

• Largest corporate attraction project is U.S. history
• 13,000 jobs when campus in complete
• Average salary $53,000+, plus benefits
• 10,000 direct construction jobs annually over 4-6 years
• 20 million sq. ft. campus – equivalent to the size of 13 Lambeau

Fields

FOXCONN’S INVESTMENT IN WISCONSIN

Request For Proposal: Cost, Speed, Workforce

• First Community Site Tours

MOU Signed

• $10 billion in investments, 13,000 jobs, $3 billion incentive

Act 58 Signed

• Creation of an Electronics & Information Technology Manufacturing Zone

Site Announcement WEDC Contract Agreement Signed Infrastructure Design and Coordination Begins Local Development Agreement Signed Governor Announces Talent Attraction Discussions beginning on workforce, transportation, and housing

May 2017 July 2017 October 2017 November 2017 December 2017 January 2018

PROJECT EVOLUTION

September 2017

INVESTING IN OUR FUTURE

FOXCONN BACKGROUND INFORMATION

• Foxconn generated total annual revenue of $135 billion and net

income of $4.5 billion in 2016 and was ranked No. 27 on the 2017 Fortune magazine Global 500

• Fourth-largest technology company in the world
• Foxconn specializes in design, manufacturing and assembly of

global computer and high-tech consumer electronics products

• The company has facilities in Asia, Brazil, Europe and Mexico.

The Wisconsin facility will be its first significant investment in the U.S.

• Water
• Landscape
• Road
• Security Barrier
• Parking Lot

KEY WEDC CONTRACT PROVISIONS

• Job creation and retention drive every aspect of Foxconn’s

potential tax incentives

• All tax credits are “pay as you grow.”
• Foxconn must create jobs and invest capital in Wisconsin before it is

eligible for any tax incentives

• The tax incentives must be earned.
• Foxconn must meet all job creation and capital investment targets

contained in the WEDC contract to earn the maximum amount of tax benefit, $2.85 billion.

KEY WEDC CONTRACT PROVISIONS

• Prior to receiving tax credits each year, Foxconn is required to

hire an independent CPA that will use industry standards to attest to the job creation and capital investment reports submitted to WEDC.

• There are stringent provisions in place to ensure Foxconn meets

the terms of the contract as well as clawback provisions if the company defaults on the contract.

• Foxconn will report annually on its Wisconsin-based supply

chain purchases.

KEY WEDC CONTRACT PROVISIONS

1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 13000 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

Jobs Tax Credit Requirements

Minimum FTE Jobs to Receive Any Credits FTE Jobs Target to Receive Full Credits

KEY ELEMENTS OF DEVELOPMENT AGREEMENT

• Foxconn guarantees the campus will contain at least $1.4 billion

in taxable value by Jan. 1, 2023

• Construction Commencement
• Jobs
• Foxconn will “exercise good faith in striving to hire, retain and contract, whenever

reasonably possible, with qualified individuals and businesses residing and/or based in the County as well as veterans and minority-owned businesses.”

• Key Timing
• Public Improvements

ENVIRONMENTAL REQUIREMENTS

• What is the Same
• Air Permitting
• Storm Water Control
• Hazardous Waste
• Wastewater Regulation
• Great Lakes Water Use

Regulation

• What is Different
• Wetland Regulations
• Waterway Regulations
• Environmental analysis

requirements under the Wisconsin Environmental Policy Act (WEPA)

ENVIRONMENTAL REQUIREMENTS

WETLAND REGULATIONS

• Each acre of federal or nonfederal wetland filled must be

compensated at a 2:1 acre ratio and DNR will oversee the mitigation process.

• All other projects in Wisconsin are generally only required to mitigate

1.2 to 1 wetland acre ratio.

• Discharges of dredged or fill material into federal wetlands require a

federal permit. No state wetland permit is required.

PERMIT APPLICATIONS

Permit it Appli lications Requir ired Surrounding the Development

• Air
• Wetlands
• NOI Land Disturbance
• Storm Water / Flood Plain
• Endangered Species
• Archaeological
• Navigable Waterways
• Water Diversion

DIVERSION REQUEST

Diversion request would be 0.07% of the existing total withdrawals from Lake Michigan (in 2016).

TENTATIVE CONSTRUCTION TIMELINE

• Tentative Construction Timeline Goals
• Groundbreaking
• Spring 2018
• LCM Assembly Operations
• Winter 2018/Spring 2019
• Project Complete
• 2021

NEED FOR DOT COORDINATION

• Time of Projects
• First LET June 2018
• Completion by end of 2021
• Coordination Needs
• Cost Savings
• Planning level cost estimate of

$150M to $165M

• Minimize Traffic Congestion

CONSTRUCTION ACCESS & TRAFFIC MANAGEMENT

• Pavement along these routes will

be strengthened to accommodate anticipated heavy traffic due to development, and diverted freeway traffic during I- 94 reconstruction.

• Materials hauling and heavy

equipment required for reconstruction.

ROAD IMPROVEMENT CONSTRUCTION SCHEDULE

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• 2018

2018/19

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• 2018

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• 2018

2018/19 an and 2021 2021

Wis isconn Valle ley Way

• 2019

2019

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• 2019

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• 2020

2020

RAILROAD COORDINATION

Four at-grade crossings

ROAD IMPROVEMENTS SCHEDULE

WORKFORCE TRAINING

• Meeting with potential

partners in January 2018

• Plan finalization spring
• f 2018

WORKFORCE OPPORTUNITIES

JOB SOURCES

• Construction (Public and

Private)

• Foxconn Positions
• Positions with Existing Racine

County Employers CANDIDATE POOLS

• Existing Residents
• Under and Unemployed
• Focus on Youth
• Workforce Recruitment

SUPPLY CHAIN OPERATIONS

With the large number of potential suppliers in Wisconsin, coordination with Foxconn is ongoing to develop a structure for supply chain operations.

WISCONSIN’S FOXCONN BONUS

• Foxconn announced the purchase of a seven-story
• ffice building located in downtown Milwaukee from

Northwestern Mutual Life Insurance Co., which will serve as the headquarters for the company’s

• perations in Wisconsin and the Wisconn Valley

Innovation Center.

• This purchase goes above and beyond the company’s

agreement with the state as it is independent of any state investment incentives, and it comes in addition to the company’s plans for a 20 million square-foot facility in Racine County.

WISCONN VALLEY NEWS

Sig ign up for the Wis isconn Valley News to stay up-to to-date on news surrounding this is his istoric development.

• Wis

isconnvalley.wi.gov/newsle letter

QUESTIONS?

• For

r Furt rther In Information Ple lease Vis isit it

• www.foxconnracinecounty.com
• www.wisupplychainmarketplace.com
• Wisconnvalley.wi.gov