What happens to the small to mid-sized businesses that need support due to demand for hire wages by the already scares workforce and the real estate costs going up. Does Wisconsin's WEDC lose it's ability to support sammer businesses because it has given all of it support to Foxconn?
Scott Cohn of CNBS talks about the incentives with Foxconn to be controversial as they should be.
Foxconn’s agreement with the Wisconsin Economic Development Corp. (WEDC), the state’s business development arm, calls for the company to create the 13,000 jobs by 2032. The deal calls for the company to do its hiring in phases, meeting specific targets in order to qualify for subsidies of around $3 billion.
The payments are part of a controversial package totaling more than $4 billion in incentives and other assistance the state agreed to in 2017, believed to be the largest such package ever offered to a foreign company in the U.S.
The company’s point person in Wisconsin told CNBC that its long-term goals for the project are unchanged.
“I talked to our corporate [team], and they have reiterated that we are committed to 13,000 jobs,” said Peter Buck, executive director of the Wisconsin Valley Science and Technology Park, which is what the company and the state have named the development.