Here & Now

Foxconn: 13,000 Jobs. $10 Billion. One Big Investment.

Frederica Freyberg:

We just heard from President Trump and House Speaker Ryan in Washington, giving a cheer for the prospect of a Foxconn operation in the badger state. Back at home, Governor Scott Walker held a Milwaukee welcome party on Thursday evening. Zac Schultz was there.

Zac Schultz:

Governor Scott Walker and Foxconn chairman Terry Gou signed a memorandum of understanding Thursday taking the next step toward Foxconn's first factory in the United States.

Scott Walker:

Wow. This is a big day for Wisconsin. It is a big day for Foxconn.

Zac Schultz:

The first phase of the $10 billion factory is expected to be operational by 2020, and will produce liquid crystal display panels, or LCD screens, for things like televisions.

Scott Walker:

With this deal, they will be made in America, proudly in the great state of Wisconsin.

Zac Schultz:

Wisconsin beat out several other states competing for the factory. And Chairman Gou credited Governor Walker and the people of the state.

Terry Gou:

Why Wisconsin? People. People should trust each other.

Zac Schultz:

The deal won’t come cheap. If Foxconn creates the promised 13,000 jobs, over the next 15 years, they will receive $3 billion in tax credits from the state and more benefits from local governments.

Scott Walker:

Which is big. It’s bigger than anything we have done before. But if you want to play in the big leagues, it’s comparable with just about every other major financial incentive like this for a major project, anywhere now in this country but around the world.

Zac Schultz:

So far, most democrats like Minority Leader Peter Barca are supportive of the proposal.

Peter Barca:

The opportunity is very exciting.

Zac Schultz :

But he knows there are concerns about the size of the tax credits.

Peter Barca:

I know that there will be some pushback. There’s no question about it. On the other end of the spectrum, it’s not just the size of the package, you have to look at, you know, the return on investments.

Robin Vos:

It’s a really big number, but remember, it’s paid out over 15 years. It’s paid out only when people are actually hired and these are way more than family-supporting jobs, which is what we want in Wisconsin.

Zac Schultz:

The next step requires the legislature to go into special session and pass the state incentives into law. Assembly Speaker Robin Vos says that will happen by mid-August since the legislature won’t have much say over the details.

Robin Vos:

I think most of the details have been negotiated with the corporation, so of course we want to do our due diligence, to see how they impact the taxpayer, how we make sure there are guarantees in there.

Zac Schultz:

The deal came together over the last few months and while things are moving quickly, Governor Walker thinks the impact on Wisconsin will last for generations.

Scott Walker:

This is something that will say to the world we have arrived. The eagle has landed and it spread its wings and taken off again. We are ready.

Frederica Freyberg:

That was Zac Schultz reporting.