Port Washington data center, judge upholds voter approval ordinance

PORT WASHINGTON, Wis. - A judge has sided with Port Washington – and a citizen group behind a voter-passed ordinance created in response to a massive controversial data center project – after a regional chamber of commerce group sued to block the ordinance requiring voter approval for future development projects.

Ordinance background

The backstory:

Nearly a year ago, citizens began the petition process to bring the ordinance to the Port Washington Common Council. In December, it placed the referendum on the April ballot, which required voter approval for future tax incremental district projects over $10 million.

FREE DOWNLOAD: Get breaking news alerts in the FOX LOCAL Mobile app for iOS or Android

The Metropolitan Milwaukee Association of Commerce, and other groups, sued the city; first to block the referendum, and later to block the ordinance it created. Great Lakes Neighbors United, which was behind the petition and referendum, was not sued directly, but joined as party to the case.

Ordinance upheld

What they're saying:

"While these plaintiffs have standing – in the sense-they could bring claims – they have no sufficient or threatened injury to complain of," said Ozaukee County Judge Adam Gerol, as he read his decision.

MMAC had asked for summary and declaratory judgment in the case. Gerol said he spent about a month reflecting on the case and arguments made. But said the matter wasn’t legally "ripe," that MMAC and other plaintiffs didn’t show harm, and the ordinance didn’t surpass the powers of the common council.

"We’re dealing with old stuff here. The direct legislation statute has been on the books in Wisconsin since 1910," Gerold said, referring to the initiative and referendum process. While Wisconsin doesn’t have a statewide process to allow voters to propose new laws or amendments, it allows residents of municipalities to propose and enact legislation at the local level.

"We did not anticipate this level of legal challenge when we started," said Christine Le Jeune of Great Lakes Neighbors United.

Last month, Gerol dismissed a lawsuit filed by Great Lakes Neighbors United against the city of Port Washington, which challenged the creation of the tax increment district for Project Lighthouse, a $15 billion data center project. Le Jeune called Monday’s ruling from Gerol a victory, and a roadmap for not only other Wisconsin communities, but elsewhere across the country.

SIGN UP TODAY: Get daily headlines, breaking news emails from FOX6 News

"This is a victory for all of us," said Le Jeune after the hearing. "Not only in Port Washington, but other communities that have been looking to Port Washington for guidance, following in our footsteps."

MMAC responds

The other side:

"We remain deeply concerned about the impact this ordinance will have on Port Washington’s ability to compete for future investment," MMAC said in a statement to FOX6, adding the ordinance creates another layer to the development process, business opportunities could choose other communities, and – if enacted elsewhere – risks making the state less competitive for housing, jobs and investment.

"Finally, we're disappointed with the judge's interpretation of the law on multiple fronts and feel confident further examination in higher courts is warranted."

NewsPort Washington