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

FOXCONN IN WISCONSIN BUILDING FOR THE FUTURE

ABOUT THE PROJECT North America’s first state-of-the-art advanced display manufacturing campus 1,073 Acres in the Village of Mount Pleasant, Racine County. 1,198 Acres 622 Acres

FOXCONN’S INVESTMENT IN WISCONSIN • 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

PROJECT EVOLUTION May 2017 Request For Proposal: Cost, Speed, Workforce ◦ First Community Site Tours July 2017 MOU Signed ◦ $10 billion in investments, 13,000 jobs, $3 billion incentive September 2017 Act 58 Signed ◦ Creation of an Electronics & Information Technology Manufacturing Zone October 2017 Site Announcement November 2017 WEDC Contract Agreement Signed Infrastructure Design and Coordination Begins December 2017 Local Development Agreement Signed Governor Announces Talent Attraction January 2018 Discussions beginning on workforce, transportation, and housing

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.

3336' 2067' Ref Point N: 170219.69 E: 597981.44 1596' 1740' 2067' Parking Lot Parking Lot 1500 spaces 1500 spaces Parking Lot Parking Lot N2 Plant Parking Parking Office 1350 spaces Structure Structure 1300 spaces Spec & Bulk Gas Yard TFT CUB 1266' Chemical Energy Plant Plant Phase 1 LCM Energy Plant Parking Lot 65' Truck Docks & Yard 746' 558' 527' Substation ATC Terminal 1238' Glass 350 spaces Plant 964' Array - Phase 1 899' Color Filter Cell - Phase 1 Open Cell LCM - Phase 1 791' Phase 1 Phase 1 1000 spaces Future 650' Transformer SVC 171' 167' 220' 65' Parking 66' Lot 726' Waste Water 730' Treatment Array - Phase 2 Color Filter Cell - Phase 2 Open Cell 896' Legend Phase 1 Phase 2 Phase 2 1170' LCM - Phase 2 336' - Water - Landscape - Road Waste Water - Parking Lot Treatment - Security Barrier Phase 2 TFT CUB Energy Plant Logistics LCM LCM Phase 2 Phase 2 WWT Materials Phase 2 Storage 135'

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 Jobs Tax Credit Requirements 13000 12000 11000 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 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 • What is Different • Air Permitting • Wetland Regulations • Storm Water Control • Waterway Regulations • Hazardous Waste • Environmental analysis requirements under the • Wastewater Regulation Wisconsin Environmental Policy • Great Lakes Water Use Act (WEPA) Regulation

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 • Endangered Species • Wetlands • Archaeological • NOI Land Disturbance • Navigable Waterways • Storm Water / Flood Plain • 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 In International Dr Drive ◦ 2018 2018/19 Br Braun Roa oad ◦ 2018 2018/19 an and 2021 2021 Cou County KR KR ◦ 2018 2018/19 an and 2021 2021 Wis isconn Valle ley Way ◦ 2019 2019 WIS IS 11 ◦ 2019 2019 an and 2021 2021 Co County H ◦ 2020 2020

RAILROAD COORDINATION Four at-grade crossings

ROAD IMPROVEMENTS SCHEDULE

WORKFORCE TRAINING • Meeting with potential partners in January 2018 • Plan finalization spring of 2018

WORKFORCE OPPORTUNITIES JOB SOURCES CANDIDATE POOLS • Construction (Public and • Existing Residents Private) • Under and Unemployed • Foxconn Positions • Focus on Youth • Positions with Existing Racine • Workforce Recruitment County Employers

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 office building located in downtown Milwaukee from Northwestern Mutual Life Insurance Co., which will serve as the headquarters for the company’s operations 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