Port Washington Residents Gain Power Over Development Incentives Through Referendum
In a pivotal decision, Port Washington residents now have a say in local development incentives surpassing a specific financial threshold, following a public referendum mandate. This change stems from a ruling by an Ozaukee County judge on the legality of an ordinance allowing such resident control.
Judge Adam Gerol delivered an oral ruling on Monday that dismissed the lawsuit challenging the ordinance. However, the possibility of further legal challenges remains open.
Proponents of the ordinance view the ruling as a victory for voter empowerment in Port Washington, whereas critics argue it could hinder community development efforts, including housing and business growth.
Under the ordinance, any new tax increment district (TID) with projected costs or base values exceeding $10 million must receive voter approval through a referendum. TIDs are designated areas targeted for development, where increased property tax revenues are used to fund infrastructure or incentives.
Port Washington voters passed the ordinance with 66% approval during an April referendum, initiated via a “direct legislation” process. The measure was largely a response to the city’s approval of a TID for a proposed $15 billion data center campus, which faced significant resident opposition.
In January, the Metropolitan Milwaukee Association of Commerce, alongside other groups, filed a lawsuit against the city to prevent the ordinance from appearing on the ballot and taking effect. The suit claimed the ordinance would “irreparably harm employers, taxpayers, and economic development interests in the City of Port Washington and throughout the region.”
The city expressed legal concerns about the proposed ordinance in court filings. However, in February, Judge Gerol denied a request from the business groups for a temporary injunction to block the ordinance from the ballot.
The nonprofit Great Lakes Neighbors United intervened in the lawsuit, with spokesperson Christine Le Jeune stating the judge’s dismissal was “a win for every voter in Port Washington and elsewhere in the state.” She added, “Residents asked for a say before large amounts of public money are committed. They gathered signatures. They voted. The court respected that.”
Conversely, the Metro Milwaukee Association of Commerce expressed concerns, noting that tax increment financing follows a “well-established state process” with public involvement. They argued, “Adding another layer of uncertainty to that process sends the wrong signal to businesses and developers choosing where to invest.”
Business groups are worried that if similar measures become widespread across Wisconsin, it could affect the state’s competitiveness for housing, jobs, and investment. The MMAC stated, “We’re disappointed with the judge’s interpretation of the law on multiple fronts and feel confident further examination in higher courts is warranted.”
In a related development, Janesville voters will soon decide on a similar ballot initiative on Nov. 3. This initiative would require voter approval for development plans exceeding $450 million at the former General Motors plant site.
