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MOUNT PLEASANT, WI — Though it is unclear what the Foxconn electronics plant currently under construction in Mount Pleasant will look like when it’s reached critical mass, local officials say it’s already the largest taxpayer in the village.
According to a news release, he Village of Mount Pleasant has received 2019 property tax payment from Foxconn Technology Group in the amount of $1,071,899.55, making Foxconn the largest taxpayer in the Village.
In addition, Foxconn also paid its first Special Assessment payment in the amount of $7,325,050. Foxconn is responsible to pay Special Assessments to cover the cost of all land acquisitions in the project area, in addition to the $60 million it paid the Village in 2017. To date, 850 acres of land in Area I have been conveyed to Foxconn, and a total of $110 million in Special Assessments are in place on the approximately 2,600 acres of land in Areas I, II, and III.
“Ahead of schedule, Foxconn Technology Group has paid its 2019 property tax and special assessment payments to the Village of Mount Pleasant. These payments, totaling more than $8.4 million, establish the company as the largest taxpayer in the Village,” said David DeGroot, Mount Pleasant Village President in a statement. “We continue to see tremendous progress at Foxconn’s campus in the Village. These advance payments are one more example of Foxconn’s commitment to our area and to its obligations under the local development agreement.”
Back in 2017, Patch reported that Racine County officials revealed the price tag to lure the world’s largest electronics manufacturer to their doorstep – and pledged the investment wouldn’t raise taxes on county residents.
County estimates stated that once the Foxconn TID closes, there will be $31 million in new tax revenue per year for the village – a figure that represented the funding needed to pay for the public improvement and development costs, according to a JSOnline report from 2017.
At the time, County officials revealed that Racine’s incentive package to lure Foxconn was approximately $764 million.
According to Racine County figures, that broke down to the following uses:
$168 million for property acquisition
$175 million to finance the package
$160 million for water and wastewater infrastructure upgrades
$116 million for public safety and police upgrades
$100 million in Tax Incremental District Financing
$28 million held in contingency
$12 million for road upgrades
$5 million for fiber optic lines
Racine County Executive Jonathan Delagrave said there will be no tax increases for county residents by way of a tax increment district to fund the project. By establishing a TID, a City or Village is able to capture the property tax revenue from new development inside the TID to pay for public improvements in and around the TID.
What’s A TID?
Cities and Villages establish a TID to invest public funds to grow the tax base of its community, encourage private investment and facilitate new job creation. In this case, taxes otherwise sent to Mount Pleasant will be diverted to fund the development of the overall Foxconn project.
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Based in New York, Patch is a hyperlocal platform that currently serves over 1,200 communities, towns and cities across the U.S. Known as “The Patch” by its users, Patch is the go-to destination for hyperlocal news and discussion about your community.