SB640: Bill Text

2. Increases the statutory limitation on additional payments from $30,000 to $80,000 for a tenant who is displaced by a condemnation proceeding from a business or farm operation when the tenant leases a comparable replacement business or farm operation.

3. Specifies that a person displaced from the person's business or farm operation is entitled to an amount to pay for costs the person incurs or will incur to make the replacement business or farm operation functionally equivalent to the business or farm operation from which the person was displaced and suitable to remain a going concern. The bill specifies that these costs include cost of capital, financing, professional services, administration, and alterations to or construction of certain infrastructure improvements or public utility infrastructure.

4. Provides that a person displaced by a condemnation proceeding from the person's business or farm operation is entitled to litigation expenses from the condemnor if the person prevails in an action for the determination of the amount of the additional payment.

Local development-related regulation reports

This bill requires municipalities to prepare certain reports related to its regulation of land development. Among the information that must be provided, a municipality must identify certain development-related fees it imposes and the amount of each fee. The municipality must post the reports on the municipality's Internet site. If a fee that is required to be posted is not posted on the municipality's Internet site, the municipality may not charge the fee.

Regulation of rental housing units

This bill prohibits municipalities from regulating the size of a bedroom in a rental unit and from imposing any requirement related to the number of bedrooms in a rental unit.

Zoning amendment protest

Under current law, the common council of a city may adopt amendments to an existing zoning ordinance. Certain affected landowners, however, may protest the amendment. If the amendment is protested, the amendment does not take effect unless three-fourths of the members of the common council approve the amendment. Under current law, a protest may be lodged by 1) owners of property included in the proposed amendment (affected property); 2) owners of property immediately adjacent to, and extending 100 feet from, the affected property; or 3) the owners of property directly opposite the affected property extending 100 feet from the street frontage of the affected property.

This bill provides that a protested amendment takes effect if approved by a majority of the members of the common council. The bill also clarifies that a protesting owner under item 2) or 3) above must be an owner of property located within the city.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB640,1 Section 1 . 32.09 (1m) of the statutes is renumbered 32.09 (1m) (a) and amended to read:

SB640,9,10 32.09 (1m) (a) As a basis for determining value, a commission in condemnation or a court may shall consider the price and other terms and circumstances of any good faith sale or contract to sell and purchase comparable property. A sale or contract is comparable within the meaning of this subsection paragraph if it was made within a reasonable time before or after the date of evaluation and the property is sufficiently similar in the relevant market, with respect to situation, usability, improvements, and other characteristics, to warrant a reasonable belief that it is comparable to the property being valued.

SB640,2 Section 2 . 32.09 (1m) (b) of the statutes is created to read:

SB640,9,14 32.09 (1m) (b) As a basis for determining value, a commission in condemnation or a court shall consider an appraisal based on the income approach and an appraisal based on the cost approach.

SB640,3 Section 3 . 32.19 (2) (hm) of the statutes is created to read:

SB640,9,18 32.19 (2) (hm) “Reasonable project costs” means the total of all of the following costs that an owner displaced person of an owner-occupied business or farm operation or tenant displaced person of a tenant-occupied business or farm operation must reasonably incur to make a comparable replacement business or farm operation under sub. (4m) functionally equivalent to the business or farm operation from which the owner or tenant is displaced and suitable to remain a going concern:

SB640,10,9 1. Capital costs, including the actual costs of the construction of improvements, new buildings, structures, and fixtures; the demolition, alteration, remodeling, repair or reconstruction of existing buildings, structures, and fixtures; the removal or containment of, or the restoration of soil or groundwater affected by, environmental pollution; and the clearing and grading of land.

SB640,10,13 2. Financing costs, including all interest paid to holders of evidences of indebtedness issued to pay for project costs and any premium paid over the principal amount of the obligations because of the redemption of the obligations prior to maturity.

SB640,10,15 3. Professional service costs, including costs incurred for architectural, planning, engineering, and legal advice and services.

SB640,10,17 4. Imputed administrative costs, including reasonable charges for the time spent by the owner or tenant in connection with the implementation of the project.

SB640,11,2 5. Costs related to the construction or alteration of sewerage treatment plants, water treatment plants or other environmental protection devices, storm or sanitary sewer lines, water lines, or amenities on streets; the relocation of utility lines or other utility infrastructure, including any lines or infrastructure related to an electric utility, natural gas utility, or telecommunications utility; the installation of infrastructure necessary to provide utility service to the property, including any service from an electric utility, natural gas utility, or telecommunications utility; or the rebuilding or expansion of streets if such costs are required by the applicable municipality and are not paid for by the municipality.

SB640,4 Section 4 . 32.19 (4m) (a) (intro.) of the statutes is amended to read:

SB640,11,20 32.19 (4m) (a) Owner-occupied business or farm operation. (intro.) In addition to amounts otherwise authorized by this subchapter, the condemnor shall make a payment, not to exceed $50,000 $100,000, to any owner displaced person who has owned and occupied the business operation, or owned the farm operation, for not less than one year prior to the initiation of negotiations for the acquisition of the real property on which the business or farm operation lies, and who actually purchases a comparable replacement business or farm operation for the acquired property within 2 years after the date the person vacates the acquired property or receives payment from the condemnor, whichever is later. An owner displaced person who has owned and occupied the business operation, or owned the farm operation, for not less than one year prior to the initiation of negotiations for the acquisition of the real property on which the business or farm operation lies may elect to receive the payment under par. (b) 1. in lieu of the payment under this paragraph, but the amount of payment under par. (b) 1. to such an owner displaced person may not exceed the amount the owner displaced person is eligible to receive under this paragraph. The additional payment under this paragraph shall include the following amounts:

SB640,5 Section 5 . 32.19 (4m) (a) 4. of the statutes is created to read:

SB640,11,23 32.19 (4m) (a) 4. Any reasonable project costs incurred or to be incurred by the displaced person.

SB640,6 Section 6 . 32.19 (4m) (b) 1. of the statutes is amended to read:

SB640,12,9 32.19 (4m) (b) 1. The amount, not to exceed $30,000, which $80,000, that is necessary to lease or rent a comparable replacement business or farm operation for a period of 4 years, plus any reasonable project costs incurred or to be incurred by the tenant displaced person. The rental payment shall be computed by determining the average monthly rent paid for the property from which the person was displaced for the 12 months prior to the initiation of negotiations or, if displacement is not a direct result of acquisition, such other event as determined by the department of administration and the monthly rent of a comparable replacement business or farm operation, and multiplying the difference by 48; or

SB640,7 Section 7 . 32.20 of the statutes is amended to read:

SB640,13,5 32.20 Procedure for collection of itemized items of compensation. Claims for damages itemized in ss. 32.19 and 32.195 shall be filed with the condemnor carrying on the project through which condemnee's or claimant's claims arise. All such claims must be filed after the damages upon which they are based have fully materialized but not later than 2 years after the condemnor takes physical possession of the entire property acquired or such other event as determined by the department of administration by rule. If such claim is not allowed within 90 days after the filing thereof, the claimant has a right of action against the condemnor carrying on the project through which the claim arises. Such action shall be commenced in a court of record in the county wherein the damages occurred. In causes of action, involving any state commission, board or other agency, excluding counties, the sum recovered by the claimant shall be paid out of any funds appropriated to such condemning agency. Any judgment shall be appealable by either party and any amount recovered by the body against which the claim was filed, arising from costs, counterclaims, punitive damages or otherwise may be used as an offset to any amount owed by it to the claimant, or may be collected in the same manner and form as any other judgment. The court shall award litigation expenses, as defined in s. 32.28 (1), to a claimant if the award of damages for the claimant exceeds the amount of damages initially allowed by the condemnor by 15 percent in an action under this section.

SB640,8 Section 8 . 62.23 (7) (d) 2m. a. of the statutes is amended to read:

SB640,13,17 62.23 (7) (d) 2m. a. In case of a protest against an amendment proposed under subd. 2., duly signed and acknowledged by the owners of 20 percent or more either of the areas of the land included in such the proposed amendment, or by the owners of 20 percent or more of the area of the land that is immediately adjacent extending 100 feet therefrom from areas of the land included in the proposed amendment and that is located within the city, or by the owners of 20 percent or more of the land that is directly opposite thereto to areas of the land included in the proposed amendment extending 100 feet from the street frontage of such opposite land , such and that is located within the city, the amendment shall may not become effective except by the favorable vote of three-fourths a majority of the members of the council voting on the proposed change.

SB640,9 Section 9 . 66.0104 (2) (h) of the statutes is created to read:

SB640,13,20 66.0104 (2) (h) 1. No city, village, or town may regulate the size of a bedroom in a rental unit.

SB640,13,22 2. No city, village, or town may impose any requirement related to the number of bedrooms in a rental unit.

SB640,10 Section 10 . 66.0602 (3) (m) of the statutes is created to read:

SB640,14,2 66.0602 (3) (m) The levy increase limit otherwise applicable under this section to a city or village in the current year is increased by $1,000 for each new single-family residential dwelling unit for which a city or village issues an occupancy permit in the preceding year and that is all of the following:

SB640,14,3 1. Located on a parcel of no more than 0.25 acre.

SB640,14,5 2. Sold in the preceding year for not more than 80 percent of the median price of a new residential dwelling unit in the city or village in the preceding year.

SB640,11 Section 11 . 66.0617 (2) (a) of the statutes is amended to read:

SB640,14,11 66.0617 (2) (a) A municipality may enact an ordinance under this section that imposes impact fees on developers to pay for the capital costs that are necessary to accommodate land development. A developer may pay fees imposed under this paragraph by maintaining in force a bond or irrevocable letter of credit in the amount of the fee imposed executed in the name of the municipality.

SB640,12 Section 12 . 66.0617 (6) (am) of the statutes is created to read:

SB640,14,15 66.0617 (6) (am) May not include amounts for an increase in service capacity greater than the capacity necessary to serve the development for which the fee is imposed.

SB640,13 Section 13 . 66.0617 (6) (fm) of the statutes is created to read:

SB640,14,18 66.0617 (6) (fm) May not include expenses for operation or maintenance of a public facility.

SB640,14 Section 14 . 66.0617 (6) (g) of the statutes is amended to read:

SB640,14,23 66.0617 (6) (g) Shall be payable by the developer or the property owner to the municipality in full upon the issuance of a building permit by the municipality or 6 months before costs to construct, expand, or improve public facilities related to the development are actually incurred, whichever is later.

SB640,15 Section 15 . 66.0617 (7) of the statutes is amended to read:

SB640,15,8 66.0617 (7) Low-cost, workforce housing. An ordinance enacted under this section may provide for an exemption from, or a reduction in the amount of, impact fees on land development that provides low-cost housing, except that no or workforce housing, as defined in s. 66.1105 (2) (n). Under no circumstances may the amount of an impact fee for which an exemption or reduction is provided under this subsection may be shifted to any other development in the land development in which the low-cost housing or workforce housing is located or to any other land development in the municipality.

SB640,16 Section 16 . 66.0617 (9) (a) of the statutes is renumbered 66.0617 (9) and amended to read:

SB640,15,24 66.0617 (9) Refund of impact fees. Subject to pars. (b), (c), and (d), and with regard to an impact fee that is collected after April 10, 2006, an ordinance enacted under this section shall specify that impact Impact fees that are collected by a municipality within 7 years of the effective date of the ordinance, but are not used within 10 8 years after the effective date of the ordinance they are collected to pay the capital costs for which they were imposed, shall be refunded to the current owner of the property with respect to which the impact fees were imposed, along with any interest that has accumulated, as described in sub. (8). The ordinance shall specify, by type of public facility, reasonable time periods within which impact fees must be spent or refunded under this subsection, subject to the 10-year limit in this paragraph and the extended time period specified in par. (b). In determining the length of the time periods under the ordinance, a municipality shall consider what are appropriate planning and financing periods for the particular types of public facilities for which the impact fees are imposed.

SB640,17 Section 17 . 66.0617 (9) (b) of the statutes is repealed.

SB640,18 Section 18. 66.0617 (9) (c) of the statutes is repealed.

SB640,19 Section 19 . 66.0617 (9) (d) of the statutes is repealed.

SB640,20 Section 20 . 66.0628 (4) (a) of the statutes is amended to read:

SB640,16,11 66.0628 (4) (a) Any person aggrieved by a fee imposed by a political subdivision because the person does not believe that the fee bears a reasonable relationship to the service for which the fee is imposed may appeal the reasonableness of the fee to the tax appeals commission by filing a petition with the commission within 60 days after the fee's imposition, as provided under s. 73.01 (5) with respect to income or franchise tax cases, and the fee is paid. The commission's decision may be reviewed under s. 73.015. For appeals brought under this subsection, the filing fee required under s. 73.01 (5) (a) does not apply.

SB640,21 Section 21. 66.0821 (4) (c) of the statutes is amended to read:

SB640,17,2 66.0821 (4) (c) For the purpose of making equitable charges for all services rendered by a storm water and surface water sewerage system to users, the property served may be classified, taking into consideration the volume or peaking of storm water or surface water discharge that is caused by the area of impervious surfaces, topography, impervious surfaces and other surface characteristics, extent and reliability of mitigation or treatment measures available to service the property, apart from measures provided by the storm water and surface water sewerage system, and any other considerations that are reasonably relevant to a use made of the storm water and surface water sewerage system. The charges may also include standby charges to property not yet developed with significant impervious surfaces for which capacity has been made available in the storm water and surface water sewerage system. No new and additional charge for services rendered by a storm and surface water system may be made for a property that retains at least 90 percent of storm water falling on the subject property.

SB640,22 Section 22 . 66.10013 of the statutes is created to read:

SB640,17,5 66.10013 Housing affordability report. (1) In this section, “municipality” means a city or village with a population of 10,000 or more.

SB640,17,9 (2) Not later than January 1, 2020, a municipality shall prepare a report of the municipality's implementation of the housing element of the municipality's comprehensive plan under s. 66.1001. The municipality shall update the report annually, not later than January 31. The report shall contain all of the following:

SB640,17,11 (a) The number of subdivision plats, certified survey maps, condominium plats, and building permit applications approved in the prior year.

SB640,17,14 (b) The total number of new residential dwelling units proposed in all subdivision plats, certified survey maps, condominium plats, and building permit applications that were approved by the municipality in the prior year.

SB640,17,16 (c) A list and map of undeveloped parcels in the municipality that are zoned for residential development.

SB640,17,20 (d) A list of all undeveloped parcels in the municipality that are suitable for, but not zoned for, residential development, including vacant sites and sites that have potential for redevelopment, and a description of the zoning requirements and availability of public facilities and services for each property.

SB640,18,2 (e) An analysis of the municipality's residential development regulations, such as land use controls, site improvement requirements, fees and land dedication requirements, and permit procedures. The analysis shall calculate the financial impact that each regulation has on the cost of each new subdivision. The analysis shall identify ways in which the municipality can modify its construction and development regulations, lot sizes, approval processes, and related fees to do each of the following:

SB640,18,3 1. Meet existing and forecasted housing demand.

SB640,18,5 2. Reduce the time and cost necessary to approve and develop a new residential subdivision in the municipality by 20 percent.

SB640,18,8 (3) A municipality shall post the report under sub. (2) on the municipality's Internet site on a web page dedicated solely to the report and titled “Housing Affordability Analysis.”

SB640,23 Section 23 . 66.10014 of the statutes is created to read:

SB640,18,12 66.10014 Development fee report. (1) Not later than January 1, 2019, a municipality shall prepare a report of the municipality's development fees. The report shall contain all of the following:

SB640,18,15 (a) Whether the municipality imposes any of the following fees or other requirements for purposes related to residential construction, remodeling, or development and, if so, the amount of each fee:

SB640,18,16 1. Building permit fee.

SB640,18,17 2. Impact fee.

SB640,18,18 3. Park fee.

SB640,18,19 4. Land dedication or fee in lieu of land dedication requirement.

SB640,18,20 5. Plat approval fee.

SB640,18,21 6. Storm water management fee.

SB640,18,22 7. Water or sewer hook-up fee.

SB640,19,2 (b) The total amount of fees under par. (a) that the municipality imposed for purposes related to residential construction, remodeling, or development in the prior year and an amount calculated by dividing the total amount of fees under this paragraph by the number of new residential dwelling units approved in the municipality in the prior year.

SB640,19,8 (2) (a) A municipality shall post the report under sub. (1) on the municipality's Internet site on a web page dedicated solely to the report and titled “Development Fee Report.” If a municipality does not have an Internet site, the county in which the municipality is located shall post the information under this paragraph on its Internet site on a web page dedicated solely to development fee information for the municipality.

SB640,19,10 (b) A municipality shall provide a copy of the report under sub. (1) to each member of the governing body of the municipality.

SB640,19,12 (3) If a fee or the amount of a fee under sub. (1) (a) is not posted as required under sub. (2) (a), the municipality may not charge the fee.

SB640,24 Section 24 . 66.10015 (1) (f) of the statutes is created to read:

SB640,19,15 66.10015 (1) (f) “Zoning ordinance” means an ordinance enacted by a political subdivision under s. 59.69, 60.61, 60.62, 61.35, or 62.23.

SB640,25 Section 25. 66.10015 (2) (d) of the statutes is repealed.