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Updated on January 02, 2008
May 2003
Volume 19, Number 8

Inside This Edition

Front Page Article
Legal Matters
Education & Products
Web Wise
Public Policy Forum
Land Use Forum
Inside the WRA

Front Page Articles

  Land-Use Decision Impacts Extraterritorial Zoning Rules

by Deb Conrad and Tom Larson

On April 11, 2003 the Wisconsin Supreme Court ruled against the developers in the Wood v. City of Madison case and, in the process, overturned a very important land- use case. In a 4-3 decision, the Court overturned Gordie Boucher v. City of Madison, a 1993 case that held that the City of Madison could not use its extraterritorial plat approval jurisdiction to regulate land-uses to the extent that the city rezoned the property. By overturning the Boucher decision, the Court has substantially enhanced the ability of cities to use their plat approval authority to effectively control or prohibit development within the extraterritorial area within three miles of their borders (1.5 miles for small cities and villages). 

In the Wood case, the Woods submitted a preliminary plat to the City of Madison for approval under its extraterritorial plat approval jurisdiction. The proposed 11-lot subdivision lies within the Town of Burke and provides for a mixture of agricultural, commercial and agri-business lots. The Woods' property had been conditionally rezoned for commercial use, contingent upon approval of their plat. The city rejected the plat based upon a Madison subdivision ordinance that considers the plat's proposed use. The city found that the plat promoted some commercial uses in an area that is predominately agricultural and that this commercial development is incompatible with the surrounding agricultural land-use pattern. The WRA, through the Legal Action Program, filed an amicus brief and participated in oral argument in an effort to uphold the Gordie Boucher case. 

Gordie Boucher was an important precedent because it stood for the principle that zoning decisions must be made using the zoning process-cities could not attempt to "go in the back door" and use their extraterritorial plat approval powers to exert zoning control. The extraterritorial zoning procedures require notice to land owners, hearings, and a joint zoning commission including representatives from the town board. A town resident who can attend town zoning hearings and elect the town officials on the joint zoning commission, has no representation on the city council that adopts a city subdivision ordinance that regulates the land-use. Under the Wood decision, the city can apply the land-use provisions of the city's subdivision ordinance to proposed extraterritorial plats and reject those plats where the zoning is inconsistent with the land-uses approved in the city's subdivision ordinance.

Now that Gordie Boucher has been overruled, cities will be permitted to unilaterally make zoning decisions through the extraterritorial plat approval process. Whenever a developer proposes a new subdivision within the three-mile extraterritorial zone and the plat proposal complies with local and county zoning, the city can reject based upon city subdivision ordinances that have conflicting use/zoning standards.

This decision will lead to more conflicts between cities and towns over subdivisions, as it has shifted the "balance of power" that previously existed between cities and towns to a situation where the cities have most of the control. By limiting development options in extraterritorial areas, the decision will give cities the upper hand in negotiating annexation agreements with affected property owners. Property owners may be frustrated to find that a community they do not live in (and do not vote in) has additional power to reject their property developments by the applying land-use provisions of city subdivision ordinances.

From a land-use planning perspective, a strong argument can be made that this decision will promote sprawl. As we have seen in many areas of the state, when development is prohibited in extraterritorial areas, development will leapfrog over the 3 miles of land adjacent to a city to get beyond the city's reach, creating an effective growth ring around the city. Such a growth ring could prevent orderly development patterns in the future.

The three concurring judges in this 4-3 decision indicated that there was no need for the court to overrule Gordie Boucher. They concluded that the Legislature "has not authorized municipalities to-in effect-rezone land by means of extraterritorial subdivision regulation and/or extraterritorial planning. It has not given municipalities power to veto uses of land that are consistent with lawful existing zoning, absent reasonable quality concerns or subdivision defects. That is what Gordie Boucher held, and there is no reason to overrule the case."

Because of the important role that the Gordie Boucher case played in maintaining the balance of power between cities and towns and protecting the rights of property owners in extraterritorial areas, WRA staff is continuing to review the Wood case to determine (a) what steps need to be taken to enable our members to adjust to this new decision, and (b) whether a legislative remedy is possible. 

To read the full opinion in Wood v. City of Madison, 2003 WI 24, go to www.wisbar.org/res/sup/2003/01-1206.htm.

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  You Could Be Getting Money Back From the WRA!

Will you be receiving a check in the mail from the Wisconsin REALTORSŪ Association? You will if you are participating in the WRA Worker's Compensation program. This year participating members will receive back 23 percent of their premiums.

In 1991 the WRA Association members began the program by "pooling" their Worker's Compensation Insurance premiums to allow them the opportunity to receive a percentage of their premiums back each year.

The workers compensation policies are written through SECURA and can be obtained through either Insurance Services, Inc. or your own hometown independent insurance agent. Just make sure you specify with your agent that you wish to be enrolled in the WRA program. 

Over the past nine years the percentage of return on the premium dollars has averaged 18 percent. 

If you are not one of the WRA members currently insured through this program and would like to have a similar return on your premium please call Debbie Thacker at 1-800-279-1972 Ext. 256 at WRA office or call Regi Tomosvich at Insurance Services Inc. 800-236-3311 e-mail Regi at tomasovre@insserv.com.

As a REALTORŪ Member, you also qualify for other exclusive group benefit programs. Take advantage of the following:

  • Endorsed Errors and Omissions Program - The WRA endorsed carrier for errors and omissions is Pearl & Associates, Ltd. The REALTORSŪ Errors and Omissions program called REAL PRO is specially designed for the Real Estate industry and the special risks you face. It provides special coverage for claims arising out of regulatory complaints, personal injury, lock box liability, or allegations of discrimination. For more information and a free quote, please contact Pearl & Associates, Ltd. at 1-800-289-8170 or look them up at www.pearlins.com
  • AMI - Save big money on your long distance rates by calling AMI Communications, Inc. The WRA agreement features no monthly plan fee, no time-of-day restrictions. Rates are 24 hours a day, 7 days a week and are guaranteed not to increase for 2 years. AMI also offers a variety of other services including Internet access, web site design and web site hosting. Call today at 1-800-254-3202.
  • PROFIT - As an independent contractor, benefits like group pension or retirement programs are not always available to you. The WRA, in conjunction with M&I Trust Company, has developed the Planned Retirement Future Investment Trust - aka PRoFIT. The program is a long-term savings and/or retirement plan that members of the WRA may participate in. Currently, over $2.3 million is invested in the PRoFIT fund.

    The PRoFIT program is a KEOGH Plan - a qualified plan that a self-employed person may adopt to accumulate funds on a tax-favored basis. Your contributions to the program are tax deductible, and both your contributions to and your earnings from the PRoFIT program are tax deferred. 

    Choose from more than 30 no-load funds, including the big names like Vanguard, Fidelity, Janus and more. Daily activity can be viewed on the M&I Trust Web site. For more information, call Debbie Thacker at 1-800-279-1972, ext. 256.
  • MBNA - MBNA MasterCard offers WRA members a credit card with no annual fee and a generous credit line. Members will enjoy 24-hour customer service, unmatched travel benefits and worldwide acceptance. Call 1-800-847-7378 to apply.
  • UPS - United Parcel Service and the WRA have an agreement to help save you money. Chances are you're not a Fortune 500 company with heavy-duty shipping volume to match. That doesn't mean you should have to pay through the nose to send a single (but very important) document coast-to-coast. With UPS, you won't. Discounts include: $1.50 off the published rate for Next Day Air Letters, 10% off the published rate for Next Day Air Packages and 20% off the Published rate for Worldwide Express. 

    Best of all, UPS has made the program hassle-free. Once you enroll, your savings are automatic - every time you ship. So whenever you have to get something out of the door fast, pick UPS. To enroll, call 1-800-325-7000.
  • REGIT - Save on health insurance premiums without scrimping on coverage. REGIT's Professional Standard Health Program provides access to insurance plans that can be customized to meet the individual. 

    A REGIT, Inc. representative will consult with you to determine what your real needs are, and tailor a plan to fit those needs. They will also guide you through the application process.

    Call today for information on your health, life or dental insurance at 1-800-537-9786, ext. 558. For a free, no-obligation quote, go to www.regitinc.com.

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