$3B deal for Foxconn flat-screen plant in Wisconsin unlikely before Nov. 8

MADISON – Wisconsin's jobs agency likely won't vote before Nov. 8 on up to $3 billion in taxpayer incentives to bring a flat-screen plant to Racine County, a top official said. 

The board of the Wisconsin Economic Development Corp. got an update Tuesday on the subsidies for the Foxconn Technology Group of Taiwan in a private session but for the second meeting the board took no action.

WEDC Chief Executive Officer Mark Hogan said he didn't expect his agency or board to take a final action on the contract before the board's next scheduled meeting Nov. 8. 

"That's probably the earliest we would do it," Hogan told reporters Tuesday, noting that both he and Gov. Scott Walker are traveling to Israel later this month for a trade mission. 

"We're going to take whatever time is required to get things right," he said. 

Walker signed legislation authorizing the Foxconn deal on Sept. 17 at Gateway Technical College in Sturtevant, clearing the way for the company and the governor's administration to negotiate and sign a final contract. 

The contract needs the approval of the WEDC board before the deal — and the factory — can proceed.

RELATED:Spurred by Foxconn, widening I-94 to eight lanes through Racine County will begin in 2019

RELATED:Residents in Foxconn area worry about what will happen with their homes

The Foxconn deal was supposed to be finalized by Sept. 30, according to a memo of understanding between the two sides. But Hogan said neither Foxconn nor the state is raising the broken deadline and are continuing to work together in good faith.

Hogan said the additional delays shouldn't be seen as a sign of problems. He declined to say whether the additional time was being used to negotiate the final contract, examine the company's finances and market position or to pursue some other issue. 

"It's ... making the best decision for the taxpayers of the state," he said. "It's all interrelated."

The state deal being considered by the WEDC would pay up to $2.85 billion in cash to the company over 15 years to offset 17% of its qualifying payroll costs as well as 15% of the capital costs of constructing an up to $10 billion factory that could employ as many as 13,000 people.

It would also waive some environmental rules and an estimated $150 million in sales taxes on construction materials for the plant. 

Foxconn has also signed a preliminary agreement with local officials in Racine County to provide up to $764 million in local infrastructure investments and other incentives to the company in exchange for the plant.