Did Scott Walker and the Republicans Throw the Governors Race to Avoid Dealing With The Foxconn WEDC Contract Default?

The race for WI Governor was nearly too close to call, and while LT. Governor Rebecca Kleefisch said a recount would be demanded, that demand never came.

Walker considers seeking recount as Evers wins governor’s race by thin margin

Gov. Scott Walker’s hopes for a third term were dashed early Wednesday when vote totals confirmed Democratic challenger Tony Evers won the race.

Evers, the state’s superintendent of schools, claimed 49.6 percent of the vote to Walker’s 48.4 percent, an advantage of just 1.2 percent, according to unofficial totals. Third party candidates received the remaining handful of votes.

Walker had not conceded as of early Wednesday. He is considering calling for a recount, his running mate, Lt. Gov. Rebecca Kleefisch, said. Final totals would have to show the race within 1 percentage point for the race to be eligible for a recount.

More than 2.6 million votes were cast in the race decided by about 30,000 votes.

What happened? Did the Republicans just not get out the vote? Or did Republicans switch their votes to Evers – (or a little of both) because they knew the Foxconn WEDC Contract was in default somewhere between April and May 2018, because then Governor Scott Walker denied Corning Glass a requested subsidy which was essential for Foxconn to create the stipulated  Generation 10.5 TFT/LCD fabrication facility and supporting operations.

Here is what the WEDC contract stipulates:

And in order for Foxconn to build that facility, it would require the addition of a nearby supplier of the glass – and Foxconn asked Corning Glass if they would be interested. Of course, Corning Glass was interested, but only if they too received a generous subsidy from Governor Scott Walker and State of WI.

Corning CEO says Foxconn glass plant would have to be subsidized

Walker, Hogan have said state does not plan to offer incentives to Foxconn suppliers

“In Wisconsin we’re not building a factory. You can’t use a factory to view our Wisconsin investment,” Louis Woo, a special assistant to Foxconn chairman Terry Gou and a key negotiator in the Wisconsin deal, told Reuters.

Bloomberg reports that Woo said there were no plans to scrap the facility altogether but that the company was reconsidering what operations might be best for the site.

Woo told Reuters that Foxconn couldn’t compete in the US TV market if it used domestic labor to build LCD panels — something that outside commentators have previously noted. “In terms of TV, we have no place in the U.S.,” said Woo. “If a certain size of display has more supply, whether from China or Japan or Taiwan, we have to change, too.”

Foxconn was given exemptions from environmental regulations and subsidies worth $4.1 billion to create manufacturing jobs in Wisconsin. However, ever since the flurry of publicity with which the deal was announced (including a photo-op with President Trump, former Wisconsin Gov. Scott Walker, and Gou breaking ground on the new site), the terms of the arrangement have been continually downsized. It’s not clear how much further they may be changed.

With Foxconn deciding to “Opt Out” of funding the required Billion Dollar investment in the Corning Glass manufacturing facility, Corning Glass turned to then Governor Scott Walker and asked for the Subsidy. Walker said – “NO” – thus effectively killing the project on May 1, 2018, placing the WEDC contract in default.

Foxconn: Top official says Wisconsin will not provide glass-maker new financial incentives

ADISON – The state won’t provide any new taxpayer subsidies to lure a key glass supplier to Foxconn to locate in southeastern Wisconsin, the state’s top jobs official said Tuesday. 

In an interview, the head of the Wisconsin Economic Development Corp. said state taxpayers have maxed out on their contribution to the Foxconn project, including related businesses such as Corning Inc., which could bring hundreds of additional jobs to Racine County. 

WEDC Chief Executive Officer Mark Hogan said that the state had already done all it needs to do to win those jobs by offering billions of dollars in incentives to Foxconn Technology Group of Taiwan. Foxconn could share those incentives with Corning and other suppliers, but the state would not expand these subsidies to get jobs that were part of the original deal and analysis done last year, he said. 

Hogan made his statements after Corning’s CEO had said his company would need additional help from Foxconn or another source before coming to Wisconsin. 

That’s it – end of story.

Former Governor Walker and his Administration made the call to allow Foxconn to default on the WEDC contract. At that point, the operations currently in progress at Mount Pleasant, Caledonia, and Racine County should have ceased, immediately. But oddly enough, they didn’t, while public officials such as Racine County Executive Jonathon Delagrave and Mount Pleasant Village President David DeGroot lied and claimed “The Project” was really going to happen.

This is what the Politicians promised the People:

This is what the Politicians have delivered (never mind the $1,000,000,000 or more in debt):

And the above building, is a “Trade Secret”! Possibly part of a crime scene, or perhaps just the Scott Walker Memorial Field of Dreams.

Foxconn wins approval of building plans that it has labeled ‘trade secrets’

Foxconn Technology Group has received conditional state approval to begin building the footings and foundations for its promised flat-screen factory in Mount Pleasant.

The Wisconsin Department of Safety and Professional Services issued the go-ahead last week on initial plans for the much-awaited project, documents released Monday show. Foxconn will need to return to the agency for review of plans for further construction.

The plans for the footings and foundations, meanwhile, remain under wraps. Foxconn contends the documents are confidential trade secrets, which are exempt from public disclosure under Wisconsin law, Brennan Nardi, communications director for the Department of Safety and Professional Services, said by email.

The department will ask Foxconn to back up its assertion that the plans are trade secrets, and, after receiving the response, determine whether the plans can be made public.

Meanwhile, Mount Pleasant Residents are beginning to feel the sting from the Foxconn default, as noted by A Better Mount Pleasant:

Meanwhile, most WI based Mass Media continues to obfuscate the real reason why “The Project” failed and the Republican Treasonous Traitors continue to scapegoat WI Governor Dr. Tony Evers. It is to be expected.

The fact remains that as of May 1, 2018, former Wisconsin Governor Walker killed the Foxconn Project, and the desperate Republicans  (likely) decided to throw the election in order to run away and fight another day.

   

One more $BILLION – and The Project would have happened – blame Scott Walker and the Republicans for the Foxscam Failure.

More problems for Scott Walker’s corrupt WEDC – Breaking news:

Audit finds ongoing problems with WEDC, tax credits for jobs created in other states

Wisconsin’s economic development agency that negotiated the state’s deal with Foxconn Technology Group continues to have a host of problems with how it tracks job creation and awards given to companies, an audit released Friday found.

The report from the nonpartisan Legislative Audit Bureau examined the Wisconsin Economic Development Corp., a quasi-private agency created under Republican former Gov. Scott Walker that is in charge of job creation efforts in the state.

The agency, known as WEDC, has struggled since its creation in 2011 on a number of fronts, including recovering loans made to companies that don’t meet contractual requirements. It has been in the political crosshairs for years and remains a focus because of the Foxconn deal. Under that agreement, the Taiwan-based electronics manufacturer could receive more than $4 billion in state and local tax credits if it invests $10 billion and creates 13,000 jobs in Wisconsin.

The audit covered July 2017 through December 2018, just before Evers took office and during the time when the Foxconn deal was reached.

The audit said that only about 35% of required jobs had been created by recipients of 68 tax credit and loan awards through the fiscal year that ended in June 2018. The report said WEDC could have required loan recipients to repay $4 million and $414,000 in previously awarded tax credits.

That money could have been used to support other projects, the audit said.

The report also said WEDC awarded $462,000 in tax credits for creating jobs to one unnamed recipient that actually lost 17 jobs.

WEDC also doesn’t know exactly how many jobs were created or retained as a result of awards that had ended because it did not collect enough information from recipients, the audit said. Between 2011 and 2018, 436 awards totaling nearly $131 million ended.

The audit also faults WEDC for not consistently complying with state laws and its contracts because it awarded tax credits to recipients that created or retained jobs filled by people outside of Wisconsin or who were not state residents.

 

It cited one example in which an unnamed recipient received $61,100 in tax credits for creating 261 jobs filled by people who lived in 36 states, none of which were even contiguous to Wisconsin.

 

Addendum:

Does a NOTICE of DEFAULT exist, issued either by WEDC or FOXCONN? It seems likely, as Foxconn contacted WI Governor Dr. Tony Evers with a request to renegotiate the defaulted contract. From the WEDC Contract:

 

 

 

 

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A Desperate Foxconn and State Rep Robin Vos Now Seek To Renegotiate the WEDC Contract Which is Currently in Default

From Madison’s Very Own Wisconsin State Journal:

Tony Evers says Foxconn, not his administration, first sought to revisit deal with state

“An executive for electronics maker Foxconn first suggested revisiting the company’s $3 billion state incentive deal to reflect the company’s “evolving project” in Wisconsin, according to a letter written and released Tuesday by Gov. Tony Evers.

Also Tuesday, the CEO of the Wisconsin Economic Development Corp. defended the state’s deal with Foxconn as a “solid contract” and said the company’s changes to its plan for Wisconsin don’t require that it be revisited.

Both developments follow Evers’ acknowledgement last week that his administration will work with Foxconn to revisit the deal.

The Evers letter to Foxconn executive Louis Woo says Woo, at a meeting with Evers last month, indicated “Foxconn intends to suggest several changes to the existing agreement to better align the terms with the evolving project and global marketplace.”

The letter says Foxconn will submit its proposed changes to the deal in coming weeks. Evers wrote that “to my knowledge, this was the first time either Foxconn or the State of Wisconsin had mentioned amending or changing the agreement.”

Evers added GOP legislative leaders were told of Woo’s suggestion that same day.

In a statement, Foxconn officials said the company “has never wavered” from its commitment to create 13,000 jobs, but added it remains “open to further consultation, collaboration, and new ideas.”

“As part of our ongoing, long-term investment in Wisconsin, we have conducted both routine engagement and good faith discussions with the Evers Administration regarding areas of flexibility within the existing agreement to ensure the company and our workforce will be positioned for long-term success,” the Foxconn statement said.”

Foxconn’s decision to build a Gen  6 Manufacturing Facility does NOT meet the requirements of the WEDC Contract which requires a Gen 10.5 manufacturing facility . Therefore, the contract is in default, and Foxconn is not eligible for any benefits!

From Cap Times:

Foxconn says it will build Gen 6 factory in Wisconsin, Gov. Tony Evers ‘comfortable’ with commitment

After a week of headlines raising questions about Foxconn’s plans for Wisconsin, Gov. Tony Evers said Friday he is comfortable with the technology company’s commitment to the state. 

“Frankly I think what they said recently has been relatively consistent, it’s just a matter of their communication strategy being more consistent,” Evers told reporters in the state Capitol. “I’m comfortable that they’re still committed to the state, they’re still committed to this Generation 6 technology, but that doesn’t mean we won’t continue to encourage them to be more transparent and more consistent.”

Shortly before Evers’ comments, Foxconn Technology Group said in a statement that it will move forward with plans to construct a Generation 6 facility in southeastern Wisconsin. So-called Gen 6 factories generally produce small LCD screens for cell phones, tablets and small televisions. 

 

Although Foxconn originally billed its planned Wisconsin facility as a Generation 10.5 LCD plant, the company has said since last year that it will instead start by building a smaller Gen 6 plant. Foxconn executive Louis Woo has said the company’s southeastern Wisconsin campus will be built in a phased approach. 

Evers said he and Woo spoke Friday morning and Woo reiterated the company’s commitment to a Gen 6 plant. 

In its statement, Foxconn credited “productive discussions between the White House and the company” and “a personal conversation between President Donald J. Trump and Chairman Terry Gou” with its decision to move forward with its Gen 6 plans.

Wisconsin Gov. Scott Walker pauses as he speaks at a news conference Monday, Sept. 21, 2015, in Madison, Wis., where he announced that he is suspending his Republican presidential campaign. (AP Photo/Morry Gash)

Building a Gen 6 Manufacturing Facility is a violation of the WEDC Contract which stipulates a Gen 10.5 Manufacturing Facility, and therefore Foxconn is in default and is not eligible for taxpayer funded payments or subsidizes.

WI Governor Doctor Tony Evers is an educated person, unlike Ruffians and Scofflaws such as State Representative Robin Vos, Racine County Executive Jonathan Delagrave, MTP Village President Davis DeGoof, and City of Racine Mayor Cory Mason – he simply expects the beneficiaries of a negotiated contract to fulfill their promises.

FOXCONN HAS FAILED TO ADHERE TO THE STIPULATED CONDITIONS OF THE WEDC CONTRACT!

Thus, the WEDC contract is NULL AND VOID!

And thus, Foxconn desperately seeks to re-negotiate the contract!

From the WEDC Contract:

Concerned taxpayers can download the complete WEDC Agreement by clicking on the following link: 1109wedcfoxconn

While State of WI Dr. Tony Evers letter to Foxconn states, as follows:

Complete Letter of  Wisconsin  Governor Dr. Tony Evers available by clicking on the following link: Dr. Tony Evers Letter

 

Desperate Republicans seek to change the terms of the “ironclad” Scott Walker WEDC agreement of a guaranteed Gen 10.5  manufacturing facility to fit the  Foxconn scaling down of the contract to a Gen 6 manufacturing facility, in violation of the agreed upon terms. This is simply not acceptable, and must be resisted. Already Taxpayers in MTP are being asked to pay more for the Foxscam Management scheme –

From JT:

AS foretold, and coming to fruition:

MOUNT PLEASANT: Firm proposes 25% hike for Foxconn Project management

MOUNT PLEASANT — The consulting company that provides Mount Pleasant with the project manager who oversees Foxconn matters is requesting a nearly 25% increase in its contract with the village.

Milwaukee-based Kapur and Associates, which employs Foxconn project manager Claude Lois, has been getting paid $20,000 per month for nearly the last two years, equaling $240,000 per year. With the contract up in August, Kapur is requesting to be paid $24,000 per month — $288,000 per year.

Meanwhile….

Dear Village Board,

I see that the Foxconn dividend is paying off for Claude Lois to
manage Foxconn, while costing taxpayers more!

MOUNT PLEASANT — The consulting company that provides Mount Pleasant
with the project manager who oversees Foxconn matters is requesting a
nearly 25% increase in its contract with the village.

Milwaukee-based Kapur and Associates, which employs Foxconn project
manager Claude Lois, has been getting paid $20,000 per month for
nearly the last two years, equaling $240,000 per year. With the
contract up in August, Kapur is requesting to be paid $24,000 per
month — $288,000 per year.

https://journaltimes.com/news/local/mount-pleasant-firm-proposes-hike-for-foxconn-project-management/article_24b57fd4-446b-538c-9315-51a77243f882.html#tracking-source=home-top-story-1

This is just the first in a series of steep and disastrous tax hikes
which will occur in MTP and Racine County as the Foxscam has changed
again. Since Foxconn’s change in plans to build a Gen 6 Plant is a
violation of the terms of their WEDC contract, which stipulates a Gen
10.5, from page 4 of the contract, which is attached for your viewing,
Foxconn is now desperate to change the WEDC contract, while desperate
Politicians like State Rep Robin Vos, Racine County Executive Jonathan
Delagrave and MTP President Dave DeGroot will ignore the actual terms
of the contract and focus on “employment”.

From JT:

The Evers letter to Foxconn executive Louis Woo says Woo, at a meeting
with Evers last month, indicated “Foxconn intends to suggest several
changes to the existing agreement to better align the terms with the
evolving project and global marketplace.”

The letter says Foxconn will submit its proposed changes to the deal
in coming weeks. Evers wrote that “to my knowledge, this was the first
time either Foxconn or the State of Wisconsin had mentioned amending
or changing the agreement.”

https://journaltimes.com/business/local/evers-says-foxconn-not-his-administration-first-sought-to-revisit/article_0cce4741-3147-5210-a87e-8ac89bb53d9e.html#tracking-source=home-top-story

Charlatans and scofflaws – ALL of you!

BOHICA MTP and Racine County Residents for more taxes and fees!

Sincerely,

Tim & Cindy

Foxconn’s demands are Unacceptable.

Only Terrorists demand to renegotiate ironclad contracts executed in good faith.

It is time to end the State Sponsored Terrorism of the failed and costly Politically induced Foxscam Failure.