Showing posts with label Property Tax. Show all posts
Showing posts with label Property Tax. Show all posts

Monday, October 12, 2026

Microsoft shifts plans for Mount Pleasant project

From JSOnline:

Ricardo Torres
Milwaukee Journal Sentinel

Microsoft plans changes to its data center campus in Mount Pleasant.

Instead of nine data centers, the company plans to construct seven data center buildings, one storage building and two utility substations according to plans submitted to the village Plan Commission.

The data centers will be one-story tall. And while the number of buildings has decreased, the total square footage has gone up to 5,878,080 square-feet, which is roughly 400,000-square feet larger than the original plan.

The Plan Commission plans to meet Wednesday, Oct. 14 at 1 p.m. at Village Hall. Village staff is recommending approval which could go to the full Village Board.

In a statement, a Microsoft spokesman said:

"We continue to refine the design and layout of our expansion parcels in the Village of Mount Pleasant. The changes in no way reflect a reduction in our ambition, they have been made to ensure faster development, allowing us to access this increased capacity quicker. We will continue to evolve our design and keep the community updated prior to beginning any vertical construction."

The change decreases the amount of taxable value per acre by roughly $2.3 million to $7.7 million of estimated taxable value per acre. Village officials note its possible once the property is fully assessed, that the value of the property could be higher than the estimated taxable value per acre.

Microsoft has completed its first data center in the village and is constructing a second next to it. The village has approved up to 15 data centers to be built on the property in Mount Pleasant but it's unclear how many data centers Microsoft will eventually build.

Microsoft passed Foxconn Technology Group to become Racine County's largest taxpayer in 2026 when it paid roughly $19.75 million on $1.224 billion of assessed property value.

Mount Pleasant officials recently approved a plan for Foxconn when the company modified its own facilities to add 26 new docks and other updates to its location in the village.

As part of the upgrade, Foxconn plans to add roughly 700 jobs to its facility in Mount Pleasant.

From: https://www.jsonline.com/story/money/business/2026/10/12/microsoft-updates-mount-pleasant-data-center-plans/92155125007/

Tuesday, January 20, 2026

Microsoft proposes adding 15 data centers to Mount Pleasant project

From JSOnline:

Ricardo Torres
Milwaukee Journal Sentinel

Developments have total estimated value of $13.3 billion

Microsoft Corp. is planning a massive expansion of its Mount Pleasant operations by adding 15 more data centers and other buildings – totaling over 8.7 million square feet and generating tens of millions of dollars in annual property tax revenue.

That's according to two new proposals filed with the village Plan Commission. It's scheduled to meet on Jan. 21 at 1 p.m.

Both developments would be on property initially planned for Foxconn Technology Group.

In a statement, a Microsoft spokesperson said:

"Microsoft has proposed an expansion in Mount Pleasant, with plans submitted for two additional datacenter campuses on land we purchased in 2024.

"These preliminary plans are the next step in our years-long development process and we look forward to sharing more about our specific plans as we go forward as we've done for our first two sites in May 2024 and September of 2025 respectively."

One development, planned for Durand Avenue, would build up to nine data centers with additional office space, each up to 579,796 square feet. The proposal also includes a 96,000-square-foot office and storage building, and other accessory buildings.

It brings that portion of the expansion to 5.2 million square feet on 791 acres, which village staff is recommending the Plan Commission approve.

That development is estimated to be worth more than $7.97 billion, the staff report says.

The project is occurring in a tax incremental financing district. That means its property tax revenue will help pay for roads, sewers and other public improvements within the district.

After that debt is paid off, the development could generate more than $45.2 million in annual property tax revenue for the village, the report says.

The other development is planned for International Drive and includes six data centers and additional office space, each up to 568,103 square feet. The proposal includes a 74,000-square-foot office and storage building, and other accessory buildings.

That proposal, also being recommended for approval, totals 3.5 million square feet on 530 acres.

The International Drive development has an estimated value of more than $5.33 billion.

It could generate up to $30.8 million in annual property tax revenue for the village after the tax financing district debt is paid off. Property tax revenue also would flow to Racine Unified School District, Racine County and other local governments.

Village staff does have conditions to the proposals which include meeting architectural, lighting, parking and other modifications.

Also, Microsoft must "comply with all Racine Water Utility, Mount Pleasant Sanitary Sewer Utility, and Wisconsin Department of Natural Resources rules and permissions regarding consuming and returning water to the applicable utility systems and watersheds," the staff report says.

There are also plans for three electrical substations planned for these developments to help power the facilities once the project is completed.

Microsoft continues momentum from 2025

Microsoft is finishing up its first data center in Mount Pleasant and is planning to break ground on a second data center this year.

The company is on track to be Racine County's largest taxpayer when it pays its bills in 2026, based on 2025 assessments.

Microsoft President Brad Smith is urging more transparency with data center and artificial intelligence developments in the technology sector in comments Smith made during a Jan. 13 visit to Milwaukee.

“I think we’re at a cultural pivot point because to bring people along, to get comfortable being more transparent, to be comfortable having conversations about questions to which we don’t yet know the answer – requires a different approach,” Smith said.

BizTimes was first to report about the Microsoft proposals.

(This story was updated to add new information.)

From: https://www.jsonline.com/story/money/business/2026/01/20/microsoft-proposes-adding-15-data-centers-to-mount-pleasant-project/88265336007/

Monday, January 5, 2026

Foxconn paid $15 million to Mount Pleasant as 'makeup payment' in 2025

From JSOnline:

Ricardo Torres
Milwaukee Journal Sentinel

Foxconn Technology Group has paid nearly $30 million in "makeup payments" to the village of Mount Pleasant during the last two years.

This comes after the Taiwan-based company fell far short of 2017 promises of a massive tech development and hiring surge in the Racine County village.

Thanks to huge data center projects, Microsoft is now set to surpass Foxconn as the largest Racine County taxpayer.

According to the contract signed by Foxconn and local municipalities in 2017, Foxconn agreed to a minimum guaranteed value of $1.4 billion on its property in 2023. If the property is not worth $1.4 billion the company needs to pay a “makeup payment” of the difference between the assessed value and the minimum guaranteed value.

 According to Mount Pleasant officials, Foxconn paid the village about $15 million in 2025 as part of the makeup payment for not having the minimum guaranteed value in 2024.  

In a statement Foxconn said:

"Foxconn supports expansion of technology and innovation in Wisconsin. We continue to invest in the state and faithfully carry out our financial obligations with local governments."

The money went to paying for investment upgrades for tax incremental district, the area that includes the Foxconn development.

The agreement also states Foxconn must maintain the minimum guaranteed value of $1.4 billion through Dec. 31, 2047 or otherwise make more payments.

In 2024, the company paid $14.3 million to the village to make up for assessments in 2023, according to village officials.

From: https://www.jsonline.com/story/money/business/2026/01/05/foxconn-paid-15-million-to-mount-pleasant-as-makeup-payment-in-2025/87972735007/

Microsoft's data center will make it Racine County's top taxpayer

From JSOnline:

Ricardo Torres
Milwaukee Journal Sentinel

For the last several years, the Foxconn Technology Group has been the largest taxpayer in Racine County. But in 2026 it will be dethroned when Microsoft pays property taxes for massive data centers being developed nearby. 

Based on Microsoft’s assessed property value from Racine County, the company's facilities in Mount Pleasant are worth about $1.224 billion, which means its tax bill is $19.75 million.  

Microsoft is in the process of building a second data center in Mount Pleasant and has committed to spend roughly $7.3 billion on its development in Racine County.

In 2026, Microsoft's property value will increase as construction continues. The company is also searching for another location, possibly in Racine County, for another data center.

In a statement, a Microsoft spokesperson said: "We believe our data center operations serve as an economic and innovation driver for the region, and we look forward to our continued partnership with the community of southeast Wisconsin to build out that vision."

Across the road, a facility developed and owned by Taiwan-based Foxconn is valued at $514 million with a tax bill of $8.3 million. That's a fraction of the initial investment promised by the tech company when it announced Racine County development plans several years ago. 

Foxconn had been the largest taxpayer in the county since 2020 when it paid $5 million on its property assessed at $260 million at the time.

In 2025 Foxconn announced it was planning to add more than 1,300 jobs at its facilities in Mount Pleasant and could get $16 million from Wisconsin taxpayers, according to an agreement with the Wisconsin Economic Development Corp.

With that expansion, Foxconn could receive up to $96 million in state tax credits through 2029.

Milwaukee Journal Sentinel reporter Tom Daykin contributed to this report.

From: https://www.jsonline.com/story/money/business/2026/01/05/huge-microsoft-data-center-will-push-past-foxconn-as-top-taxpayer/87920779007/

Wednesday, December 10, 2025

Mt. Pleasant residents will see lower tax rates in 2026 because of net new construction

From The Journal Times.com:

Holly Gilvary

MOUNT PLEASANT — The village tax rate will decrease in 2026 because of the amount of property value added by Mount Pleasant's net new construction in 2025.

The Mount Pleasant Village Board on Monday heard a presentation on the 2025 progress report for the village's Public Works and Community Development departments, during which Village Administrator Tamara Simons showed that Mount Pleasant had the second-highest net new construction value in the state in 2025.

According to the Wisconsin Department of Revenue, Mount Pleasant added more than $996 million in net new construction value in 2025, second to the City of Madison with about $1 billion.

The village tax rate will decrease from 2025's rate of $6.09 per $1,000 to $5.67 in 2026 because of the large property value added by new construction, according to the progress report.

Mount Pleasant Community Development Director Samuel Schultz said the village permitted 930 multi-family housing units this year, a 1,228% increase from last year, as well as 50 single-family homes, a 62% increase from last year.

He added that many development projects that began in 2025 were part of village Tax Increment Districts and that the average return on investment for Mount Pleasant's seven active TIDs is 130.9%.

Staff also highlighted the following work completed by the village in 2025: the Mount Pleasant Sewer Utility and Racine Wastewater Utility building; a 1.7-million-gallon underground storage tank near Chicory Road to contain the flow of water into sewers during heavy storms; the village installing permanent generators at seven village sewer lift stations to keep pipes flowing away from homes, even during power outages; building three miles of sanitary sewer; replacing 1,700 feet of storm sewer along Deerfield Road; and conducting its first tree inventory in 2025, during which the village inventoried 6,200 trees in village parks and rights-of-way.

In other business, the board:

• Approved the following roads in Mount Pleasant to be accepted as public/village roads: Hunter Drive; Independence Road; Rosewood Lane from Spring Street to the south terminus; Hoods Creek Path from Gittings Road to the north terminus; Gwendolyn's Way from Hoods Creek Path to its west terminus; Arden Road from Hoods Creek Path to its west terminus; Arden Road from Hoods Creek Path to its east terminus; and Carrington Boulevard from Spring Street to its south terminus.

Mount Pleasant Community Development Director Samuel Schultz said the village permitted 930 multi-family housing units this year, a 1,228% increase from last year, as well as 50 single-family homes, a 62% increase from last year.

He added that many development projects that began in 2025 were part of village Tax Increment Districts and that the average return on investment for Mount Pleasant's seven active TIDs is 130.9%.

Staff also highlighted the following work completed by the village in 2025: the Mount Pleasant Sewer Utility and Racine Wastewater Utility building; a 1.7-million-gallon underground storage tank near Chicory Road to contain the flow of water into sewers during heavy storms; the village installing permanent generators at seven village sewer lift stations to keep pipes flowing away from homes, even during power outages; building three miles of sanitary sewer; replacing 1,700 feet of storm sewer along Deerfield Road; and conducting its first tree inventory in 2025, during which the village inventoried 6,200 trees in village parks and rights-of-way.

In other business, the board:

• Approved the following roads in Mount Pleasant to be accepted as public/village roads: Hunter Drive; Independence Road; Rosewood Lane from Spring Street to the south terminus; Hoods Creek Path from Gittings Road to the north terminus; Gwendolyn's Way from Hoods Creek Path to its west terminus; Arden Road from Hoods Creek Path to its west terminus; Arden Road from Hoods Creek Path to its east terminus; and Carrington Boulevard from Spring Street to its south terminus.

From: https://journaltimes.com/news/local/government-politics/article_04ccc703-777b-4228-bf3c-2a1ed2b11431.html

Thursday, March 13, 2025

City to borrow $17M for Lincoln King center and clinic

From The Journal Times.com:

Holly Gilvary

City of Racine Common Council voted March 4 to approve borrowing $17 million in the form of a short-term bond that the city will cover with grant funding in order to fund the new Lincoln King Community Center and Health Clinic.


RACINE — The City of Racine will borrow $17 million for the construction of the Lincoln King Community Center and Health Clinic.

The Racine Common Council at its March 4 meeting approved promissory notes for the bridge loan with an 8-4 vote. Alders Jeff Coe, Melissa Kaprelian, Renee Kelly and Sandy Weidner voted against the motion.

City of Racine Finance Director Kathleen Fischer said the $17 million will be a short-term bond the city intends to cover with grant funding over the next two years.

Baird Managing Director Bradley Viegut said the final interest rate, locked in by the council’s vote to approve the borrowing, is 3.89%.

The city will refinance the bond in 2027 to pay the money back, with the option of prepaying the bond in 2026, if some grants come in early, as a way to reduce interest costs, Fischer said.

The city will put the grant funds into a separate bank account earning a high rate of interest in order to offset the interest costs associated with the bond.

Fischer added that tax credits also will help offset interest.

Kaprelian said she was concerned what might happen if “even one” of the major grants pending for the city fails to materialize, and asked Fischer what the city’s contingency plan is to meet the 2027 repayment obligation.

According to Fischer, if any of the grants fall through and the city is unable to meet the 2027 repayment obligation, the $17 million would be amortized over a 20-year period and the principal and interest would be paid from debt service tax levy.

Prior to the vote, Weidner said she’d be voting against the motion because the payback is coming from grants, and if the grants fail to materialize, property taxpayers should not have to fund the project.

“I’m afraid that, should these grants not come through, which is a very big possibility, that property taxpayers are going to be paying for perpetuity for a health clinic that they did not ask for,” Weidner said.

She also said that for most of the years she’s served on Common Council, the city’s public safety building has been in need of upgrades.

“If we commit ourselves to almost $20 million in loans for a community center/health clinic, we will have no room to replace a building that’s been needing to be replaced for the last two decades,” Weidner said.

Common Council approved the development and construction of the Lincoln King Community Center and Health Clinic project in August with a 12-3 vote. Alders Coe, Kaprelian and Weidner voted against the motion.

More than 20 people spoke in support of the Lincoln King Center during the Aug. 20 meeting’s public comment period.

The city broke ground on the project in November, and completion is estimated for 2026.

From: https://journaltimes.com/news/local/government-politics/article_065eb30e-fde0-11ef-9518-5fa8434ebc08.html#tracking-source=home-top-story

Wednesday, December 11, 2024

Foxconn approved for $8.75 million in state tax credits. The company had 1,114 workers in 2023

From JSOnline:

Tom Daykin
Milwaukee Journal Sentinel

Foxconn Technology Group's Wisconsin operations − which shrank from an envisioned transformational development to an ordinary contract manufacturer − have been approved for $8.75 million in annual state tax credits, according to a new state agency report.

The tax credits are for employing 1,114 full-time workers and investing $24.6 million at Foxconn's Racine County operations in 2023, according to the Wisconsin Economic Development Corp. report.

Taiwan-based Foxconn in 2023 received $6.3 million in tax credits. It had 1,029 full-time workers and invested more than $26 million at its Mount Pleasant facilities in 2022, according to WEDC.

Then-Gov. Scott Walker and Foxconn in 2017 agreed to a $2.85 billion tax incentive package − including state and local funds − if the company met annual hiring and capital investment goals.

Foxconn promised to bring 13,000 high-tech jobs to Wisconsin and create a massive large-screen LCD manufacturing facility in Mount Pleasant.

But those plans failed to materialize, and Foxconn instead shifted to contract manufacturing.

A 2021 renegotiated agreement under Gov. Tony Evers' administration allows the company to receive up to $80 million in state tax credits through 2025.

In return, the job target was reduced from 13,000 to 1,454, and Foxconn's estimated capital investment was cut from $10 billion to $672 million.

The company so far has received tax credits totaling $52.5 million since 2000, WEDC records show.

Meanwhile, much of the land acquired for Foxconn has since been sold to Microsoft Corp. for its data center campus.

In May, Microsoft announced it would spend $3.3 billion by 2026 to build a first phase of the project, a threefold increase from the $1 billion it initially said it would spend.

That investment by Microsoft is expected to generate enough property tax revenue to pay back the money spent by Racine County and the Village of Mount Pleasant to acquire land and build roads, sewers, and other infrastructure for the original Foxconn development plan.

Foxconn didn't immediately respond to the Journal Sentinel's request for comment on the latest tax credit award.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram,Bluesky, X and Facebook.

From: https://www.jsonline.com/story/money/business/2024/12/11/foxconn-gets-8-75-million-in-state-tax-credits-for-jobs-investment/76890058007/

Friday, October 25, 2024

Racine County Board of Supervisors approves 0.5% county sales tax

From The Journal Times.com:

Holly Gilvary


STURTEVANT — After months of deliberating and receiving input from county residents, the Racine County Board voted Thursday to implement a 0.5% county sales tax.

Supervisors voted 13-5 to approve the ordinance adopting the tax, which will take effect April 1, 2025.

Supervisors Valena Coleman, Tom Rutkowski, Melissa Kaprelian, Jody Spencer, Q.A. Shakoor II, Brett Nielsen, Eric Hopkins, Tony Veranth, Don Trottier, Scott Maier, Gary Kolb, Greg Horeth and Tom Preusker voted in favor of the sales tax; supervisors Renee Kelly, Ernie Rossi, Robert Miller, Tom Kramer and Taylor Wishau voted against it.

Preusker offered an amendment to the ordinance that reduced the general obligation debts that will be allocated to property tax relief from $5 million to $2 million, saying it would not be fiscally responsible to pass the ordinance as is based on the county's proposed 2025 budget, the county's current deficit of $17 million and the projected $20 million of anticipated sales tax revenue.

"If we commit five million of the expected 20 (million) to general obligation debt, that means there's only 15 (million) left to solve a gap of 17 million," Preusker said. "I don't think it's responsible to knowingly, tonight, pass an ordinance that knowingly creates a deficit."

The board voted 11-7 in favor of the amendment.

The county will begin allocating some of the sales tax revenue to property tax relief in 2026.

Supervisors Robert Miller and Melissa Kaprelian also offered amendments to the ordinance, but both failed.

Miller proposed allocating "approximately 50%" of the sales and use tax revenue to the portion of the county budget devoted to debt service on general obligation debt to affect direct property relief.

"If we do not do this sales tax in a responsible way with a lot of direct property tax relief, many of our constituents will be justifiably unhappy," Miller said.

The board voted 10-8 against Miller's amendment.

Kaprelian proposed changing the amount of revenue committed to property tax relief from "not less than $5 million" to "up to $5 million based on operational needs, debt services, borrowing for capital projects and state municipal aid approved in the state budget."

Kaprelian said the change would maintain the $5 million target for property tax relief but would allow for more flexibility so that the number could be adjusted through the county's budget process if necessary.

"By binding ourselves to this rigid allocation while facing a $17 million deficit, now we risk sending this contradictory and fiscally irresponsible message," Kaprelian said. "How can we tell our constituents that we're implementing a sales tax to resolve the deficit while simultaneously committing to a specific allocation that could perpetuate that deficit?"

The board voted 9-9 for the amendment, so it failed.

In other business, supervisors:

  • Authorized and approved the memorandum of agreement between the National Association of Conservation Districts and Racine County to accept the Urban Agriculture and Community Conservation Grant for $60,000 to be used at the Racine County Youth and Development Care Center micro-nursery.
  • Authorized the purchase of up to five capital asset vehicles and a transfer of $120,000 within the Public Health 2024 Budget.

Monday, September 30, 2024

Residents express mixed opinions about county sales tax during listening sessions

From The Journal Times.com:

Holly Gilvary , Scott Williams

John Dahms of Union Grove was one of the residents who attended a listening session Sept. 23 seeking public input about a Racine County sales tax proposal. 


RACINE — Racine County residents have expressed mixed opinions about the 0.5% county sales tax proposal during listening sessions.

If approved by the Board of Supervisors, the sales tax would go into effect on April 1, 2025, according to the county.

In Caledonia, members of the public questioned the sales tax but did not outwardly oppose it during a listening session Sept. 19. Some even supported the idea.

Bill Streeter of Caledonia said he wants the board to approve the sales tax in order to continue providing resources to county residents.

“Why has Racine County dragged its feet adopting this common sense measure?” Streeter asked.

During a listening session at the Racine County Courthouse on Sept. 26, most residents who spoke supported the sales tax but expressed concern about the benefit to non-property owners, who would not directly receive property tax relief.

However, Colin McKenna of Racine said he does not support the sales tax, claiming it could negatively impact small business owners.

“People are on a tight budget,” McKenna said.

About 20 people turned out at the Union Grove Municipal Center to discuss the tax idea with County Corporation Counsel Michael Lanzdorf and Supervisor Scott Maier.

Members of the public said the county should cut needless services, if necessary, to avoid the sale taxes, or set a sunset date to ensure the sales tax does not become permanent.

Darren Slotty of the Town of Norway said the sales tax would place an added burden on Racine County residents at a time when consumers already face rising prices, school referendums and other tax increases.

“It all adds up,” Slotty said. “And it sucks.”

John Dahms of Union Grove said the public should have more information about the financial situation that county officials are citing as justification for the sales tax.

Dahms said Union Grove taxpayers already are facing possible tax increases in a school referendum and a firehouse referendum.

“Where are we going with this?” he said. “It’s a bottomless pit.”

Jim Fox of Yorkville said that if the county imposes a sales tax, it should be temporary — until any current financial crisis has passed.

But he also asked how the county would respond the next time finances are in a pinch.

“Where is it going to stop?” he asked.

From: https://journaltimes.com/news/local/government-politics/racine-county-sales-tax-proposal-opinions/article_bd52d70e-76ac-11ef-9ed5-c38ccd392abd.html#tracking-source=home-top-story