Eau Claire lawsuit could impact Foxconn, other developments

MADISON — The Wisconsin Department of Justice's solicitor general is warning a lawsuit challenging an economic development project in Eau Claire could "imperil" the $10 billion Foxconn complex in Racine County and other ventures in the state.

The state wants in intervene in the lawsuit filed on behalf of some Eau Claire taxpayers who say the city abused Wisconsin's tax incremental financing law that includes cash payments to a private developer or company.

The State Journal says the lawsuit brought by the conservative Wisconsin Institute for Law and Liberty on behalf of the taxpayers is currently before the state Supreme Court.

Solicitor General Misha Tseytlin says that if the court were to side with the plaintiffs, it "would imperil numerous projects critical to Wisconsin's economic growth, including the Village of Mount Pleasant's recent agreement with Foxconn Technology Group." That project includes $100 million in cash incentives.