Tom Larson, NAIOP WI Lobbyist

Eminent Domain Legislation Protects Property Rights At The Expense of Jobs and Economic Development

Since it was introduced in May, Senate Bill 83 (SB 83), which would restrict the use of eminent domain for economic development purposes, has generated considerable discussion about the appropriate balance between private property rights and economic development. Accordingly, some have questioned why NAIOP-WI would oppose SB 83, given that the goal of the bill is to strengthen the ability of property owners to further limit the use of eminent domain.

Supporters of the bill maintain that eminent domain should only be used to acquire property in cases where the property will be used exclusively for public purposes such as roads, parks, and other public amenities. They believe that economic development is not a legitimate public purpose because the property acquired is often sold to private developers who profit from the local governments' use of their eminent domain authority.

NAIOP-WI and other opponents of SB 83, however, counter that the use of eminent domain for economic development projects is a legitimate public purpose because such projects result in an increase in tax base, tax revenues, employment, and improved economic health of the community. Economic development officials site various examples of economic development projects that have had a meaningful impact on the financial health and overall wellbeing of communities and that would not have happened without the use of eminent domain.

While NAIOP-WI is a strong supporter of private property rights, we recognize that the rights of individual property owners are not absolute. The rights of individuals and the rights and interests of the public often compete against one another and must be balanced by elected officials when making decisions that impact the entire community. Wisconsin's eminent domain laws contain numerous safeguards, both substantive and procedural, to help ensure that these competing rights are balanced carefully, prudently, and in the light of public scrutiny.

NAIOP-WI acknowledges that our eminent domain laws are not perfect, and need to be updated to better protect property rights and to enhance economic development opportunities. However, by focusing exclusively on protecting private property rights, SB 83 bill would make economic development even more difficult during one of the most challenging environments for economic development within the last 20 years.

For this reason, NAIOP-WI opposes SB 83, but has encouraged the Wisconsin Legislature to convene a study group to look at ways to modernize our eminent domain laws to better address the needs of both property owners and the economic development community.

Special Session on Jobs Includes Several of NAIOP-WI's Legislative Priorities

On September 28th, Governor Walker issued an executive order calling the Wisconsin Legislature into a special legislative session on job creation. The special session includes 26 pieces of legislation intended to address the issues of improved access to capital and loans, worker training, regulatory reform and tort reform.

A special session is different from a regular legislative session because a special session is called by the governor and allows the governor to determine the content of the agenda and the time frame in which the legislature must act on the agenda items.

While all of the legislation identified for the special session are aimed at improving Wisconsin's economy, several of NAIOP-WI's legislative priorities are included in the list, such as:

• Wetland regulation reform - streamlines the wetland permitting process and make wetland mitigation more viable in Wisconsin.
• Ch. 30 regulatory reform - expands the list of permit exemptions for construction activities near navigable waterways, and streamline the procedures for obtaining general and individual permits
• Presumptive approval - requires the DNR to automatically approve permits if a reason cannot be found to deny the permit within the specified timelines
• Multijurisdictional TIF districts - authorizes cities and villages to jointly participate in the creation of a TIF district.

NAIOP-WI's lobbyist will continue to work closely with the Legislature and Governor's office to enact these legislative initiatives into law.

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If you have any questions regarding these changes, please feel free to contact me. 
Tom Larson

Lobbyist-NAIOP Wisconsin

Chief Lobbyist and Director of Legal and Public Affairs-Wisconsin Realtors Association

608.240.8254 (office)

608.212.0066 (cell)

Mayor of Wauwatosa, Jill Didier, and the city's Economic Development Director, Paulette Enders, were both excited to join us for lunch as the Public Affairs Committee's guest speakers to discuss many of the things going on in Wauwatosa. The main point driven by Ms. Enders was that Wautatosa has restructured their development authority so there is now a "one stop shopping" system in place with Ms. Enders as the main point person. This new system is designed to streamline the process for developers. Mayor Didier handed out a Marketing Brochure for the city that talks about some of the projects the city is involved along the newly-branded Innovation Parkway. While the general economy has struggled, Wauwatosa has experienced some positive growth with projects such as the UWM Accelerator Building on the County Grounds, the Enclave, Cedar Glen and the proposed development for Burleigh Triangle. The City of Wauwatosa has been successful in providing direct grants and loans to businesses to attract new businesses and retain existing ones. The Mayor is looking to expand this program to offer more financing to continue to spur economic development within in the city since financing for new developments has been difficult for developers to secure in today's uncertain economy. The City is also open to utilizing existing and creating new TIF districts to encourage new development within the city.

In summary, Wauwatosa is doing some great things to attract and retain businesses and the attitude of the administration is one of pro-business and pro-economic development and Mayor Didier seems to be more than willing to work with the development community to make things happen in her city.  WAUWATOSA IS OPEN FOR BUSINESS!!

~Jeff Whipple, Public Affairs Committee member

  Development Associate, Interstate Partners