Foxconn Flood Impact, Water Quality Study Set For Public Release

WAUKEGAN, IL — With local, state and federal officials in Lake County urging the new Wisconsin governor to reconsider environmental waivers granted to Foxconn to build a massive manufacturing plant in Racine County, the Lake County Stormwater Management Commission announced plans to present a floodplain impact study of the development.

Taiwanese electronics manufacturer Foxconn Technology Group broke ground in June on a $10 billion LCD plant in Mount Pleasant, Wisconsin. It promised to create 13,000 jobs and was granted close to $4 billion in incentives — believed to be the largest public subsidy to a foreign company in U.S. history.

Part of the deal included an agreement to exempt the firm from environmental regulations. The company was allowed to fill wetlands without a permit and skip normal requirements to produce an environmental impact statement.

The Lake County Board, the Stormwater Management Commission and several area municipalities have unanimously approved resolutions opposing the decision because of its downstream impacts on the Des Plaines River watershed. With memories of the record-breaking floodwaters of July 2017 still fresh, local representatives have expressed concerns that waivers to water management regulations would lead to increased stormwater flow and exacerbate the risks of catastrophic flooding.

Illinois senators Dick Durbin and Tammy Duckworth, along with 10th District Rep. Brad Schneider and 14th District Rep. Lauren Underwood, sent a joint letter Friday to Wisconsin Gov. Tony Evers. It asked him to submit plans for the proposed Foxconn construction to "stringent environmental review, especially with consideration to stormwater management."

Evers, the recently inaugurated Democrat who narrowly defeated Republican former Gov. Scott Walker, described the incentives as a "lousy investment" before last year's election. He said Foxconn had "backtracked on several of its promises" and said he would hold the company's "feet to the fire and make sure that Wisconsin is getting the best return on investment possible." The Wisconsin Legislative Fiscal Bureau estimated the state would not break even on the deal until the 2042-43 fiscal year.

In their joint letter, the Illinois Democrats noted recent reports that the company may be reconsidering elements of its plans.

"We have been skeptical of this development from the beginning and Foxconn backpedaling from its initial offer has only deepened our concerns," they said.

Days after Reuters reported Foxconn was reconsidering plans to build an LCD plant, citing the high cost of manufacturing in the U.S., and the Nikkei Asian Review reported the facility had been "suspended and scaled back as a result of negotiations" with the new governor, the company reaffirmed its commitment to the factory.

"After productive discussions between the White House and the company, and after a personal conversation between President Donald J. Trump and Chairman Terry Gou, Foxconn is moving forward with our planned construction of a Gen 6 fab facility," Foxconn announced Feb. 1.

Lake County Board member Jessica Vealitzek also wrote to Evers, calling for a fresh look at the waivers in light of news that Foxconn may be adjusting its plan. In a Feb. 5 letter, she said "given the sensitivity of this watershed to unsustainable development," it was important to reassess the balance between economic development and protecting communities.

"Lake County has made a large investment in flood mitigation activities, and we want to ensure those efforts are supported watershed-wide," said the Hawthorn Woods Democrat. "And now that the promised manufacturing job opportunities from the Foxconn development may not even materialize, it makes sense for Wisconsin to revisit its trade-off approach to the development as well. "

A Feb. 6 Bloomberg Businessweek feature described the deal as "disastrous," citing interviews with nearly 50 current and former company employees, almost all of whom anticipated there would "never be anywhere near 13,000 workers" at the facility. Foxconn itself announced it had only hired 178 full-time employees in Wisconsin by the end of 2018, according to Bloomberg.

Foxconn has a history of overpromising and underdelivering on major deals. In Brazil in 2011 and India in 2015, it pledged to invest billions of dollars and create tens of thousands of jobs after Gou courted each country’s leaders, but each project fell far short. In 2013, Foxconn said it would invest $30 million and employ as many as 500 people at a Pennsylvania factory that also never fully materialized. Multiple former executives say Gou makes big promises to secure favorable terms and is unsentimental about reneging on or abandoning them as costs dictate.

In a response provided to WISN, Foxconn said the piece failed to give a balanced view of its project: "Foxconn’s commitment to Wisconsin remains as strong as ever. In addition to creating more than a thousand jobs in the state so far, Foxconn invested over $200 million to date in Wisconsin"

Earlier this month, Evers said he has directed the Wisconsin Department of Natural Resources to review emissions permits granted to the company. Separately, a pair of federal lawsuits are pending from the Illinois Attorney General's Office and Chicago-based environmental groups accusing the company of skirting U.S. Environmental Protection Agency clean air standards. The Illinois members of Congress said Evers' move on air quality was "heartening" and requested he look closely at the stormwater management elements of the project.

"Economic development is a top priority in our region, and it does not have to come at the cost of environmental degradation," they said.

On March 7, the Lake County Stormwater Management Commission plans to present a public review draft of its watershed impact analysis at the University Center of Lake County Conference Center multipurpose room at 1200 University Center Drive on College of Lake County's Grayslake campus. In April, Foxconn plans to hold information sessions in April on the next round of construction, according to a joint statement from elected and business officials in Racine County.

UPDATE: Foxconn Floodplain, Watershed Impact Analysis Presented To Lake County

Related:

• Illinois Officials Worry About Foxconn Environmental Impact
• Foxconn Says It's Suspending Work Because Of Gov. Evers: Report
• Foxconn Says 'Yes' To LCD Factory After Talking With Trump
• How Tony Evers Will Affect Foxconn Deal After Gov. Scott Walker
• Foxconn Groundbreaking: Trump Ushers In New Day For Wisconsin