"local government is already committed to spending nearly $1billion in infrastructure"
You may want to re-read your source:
"At the local and regional levels, Mount Pleasant and Racine County created a tax-increment financing district in 2017 to pay for a $764 million investment to support the Foxconn project."
...i.e. they created a reduced-tax district around the construction site. Foxconn would have received tax waivers (not payments), and the waivers would have been equal to 10% of what they spent on construction in the district.
"The problem is not really with the State of Wisconsin's liability. It is at the local level. Many people lost homes and land"
Do you know how many? I don't see any record of a single home or property being taken under eminent domain. Out of 132 parcels, 125 were sold at 140% of their market valuation. Six others were sold at a negotiated price, and a third went to mediation.