But the decision is just one in a series that the Village and Racine County will need to make the project a reality over the next week.
The Village Board and the Racine County Board are expected this week to approve a developers agreement between the Village, Racine County, and Foxconn. The two boards will also consider entering into an intergovernmental agreement, which will establish a commission to oversee the development.
“We know that Foxconn is committed to making this happen. This is just one step that is ticked off of on the list. There’s still a lot more that needs to happen,” said Laura Million, business development manager for the Racine County Economic Development Corporation.
How the TIF plan will work
In total, the TIF is expected to generate $885.7 million in incremental tax revenue over the life of the 30-year term of the district. Under the provisions outlined in the plan, the TIF will pay $764 million for public infrastructure, land acquisition, and expenses related to construction and the operation of Foxconn’s facility.
Expected to take six years to build out, the 20-million square foot building will take up 1,198 acres of the 3,921-acre TIF. Once built, the anticipated development will increase the village’s tax base by $1.4 billion. The remaining acreage is expected to be filled by Foxconn’s supply chain vendors and other businesses, according to the TIF project plan.
The revenue anticipated from other businesses coming into the area is not part of the TIF project plan, Million said.
“In order to make these projections, the estimates used were conservative,” Million said. “We didn’t want to include ancillary things we don’t know about. You can only work with what you do know… That’s why it’s built this way.
The project footprint is bounded by Highway KR, 90th Street, Braun Road, County Highway H, Highway 11 and Interstate 94. Additional industrial and related development area are bounded partially by County Highway H, Highway 11, Interstate 94 and Highway 20.
“This is an unusual project given its size,” Million said. “The people involved with this project typically work on things much more modest in size.”
Still, the ancillary businesses potentially coming to the area makes the project more viable, Million said.
Read more: What the $764 million Foxconn TIF will pay for.
Foxconn agreement meetings
The next step is the approval of the joint review board and the developer’s agreement, then there are the water and sewer projects, Million said.
Here is the schedule of the meetings:
- Community Development Authority meeting to consider Developers Agreement and Intergovernmental Cooperation Agreement: 6 p.m. Monday at Mount Pleasant Village Hall
- Village Board meeting to consider Developers Agreement: 6:30 p.m. Monday at Mount Pleasant Village Hall
- County Board meeting to consider Developers Agreement: 6:30 p.m. Tuesday at Ives Grove – County Board Chambers
- Joint Review Board Meeting to consider TID plan and Developers Agreement: 6 p.m. Wednesday at Mount Pleasant Village Hall
When will the project begin?
“We’re still working on timing and part of that is determined by Foxconn on when will do certain things on site,” Million said.