Governor Scott Walker and Foxconn Technology Group Chairman Terry Gou signed a nearly $3 billion contract Friday, creating the largest business development deal in Wisconsin state history.
Following recent Wisconsin Economic Development Corporation board approval (8-2) in a closed session Wednesday, the 15-year contract allowing Foxconn to build their factory in the Mount Pleasant area was ready to be officially signed according to the Wisconsin State Journal.
Amid protests, Foxconn deal finalized in closed session meeting
“This is a once-in-a-lifetime opportunity for Wisconsin, and this agreement provides Foxconn with the incentives the company needs to move forward with this significant investment while at the same time fully protecting the interests of Wisconsin taxpayers,” Walker said in a press release.
Under the contract, Foxconn is required to invest $9 billion for the manufacturing plant, which is less than the original $10 billion investment agreed upon earlier in the year. The tech company is also required to create 13,000 jobs, which the company said will have an average salary of $53,875.
The company will be eligible to receive up to $2.85 billion in tax credits which are granted as “pay as you grow,” meaning Foxconn will not be eligible for the tax benefits until it has met certain job creation requirements according to the WEDC.
Gou said he would personally back 25 percent of the amount that would be refunded to the state should the Foxconn default on the deal according to WSJ. The parent company Hon Hai Precision Products also said they would back the remaining cost.
Murky waters: Foxconn deal brings economic opportunity, environmental concerns
Some groups, like the Democratic Party of Wisconsin, do not approve of Walker’s decision to sign the Foxconn contract deal.
“Rather than invest in Wisconsin-owned businesses across the state, Gov. Walker has chosen to gamble $3 billion of our tax dollars on a foreign corporation with a history of broken promises, all for the sake of his own reelection,” DPW Communications Chair Melanie Conklin said in an email.
The company is scheduled to begin construction for a liquid-crystal display (LCD) manufacturing factory in Mount Pleasant by Spring 2018 and plans to be operational by 2020.
