Wisconsin Supreme Court Increases Town Control of Lakefront Properties

Wisconsin Supreme Court Increases Town Control of Lakefront Properties

State of Wisconsin ex rel. Michael Anderson v. Town of Newbold

On January 27, 2021, in a 5-2 decision, the Wisconsin Supreme Court upheld the decisions of the circuit and appellate courts, finding the Town of Newbold had the authority to regulate the division of lakefront property regardless of whether the regulations were more restrictive than the state law.

Lakefront owner, Anderson, owns 358.4 feet of shoreline frontage, which he wanted to divide into two separate lots, one with 195 feet and the other with 163.43 feet of frontage. The Town denied his request based on a Town minimum lake frontage ordinance requiring lots be not less than 225 feet. Anderson claimed that Wisconsin statutes precluded the town from regulating its shoreland zoning in a matter more restrictive than state law pursuant to Wis. Stat. § 59.692.

The central issue was whether the Newbold ordinance was a zoning ordinance or a subdivision ordinance. Ultimately, the Wisconsin Supreme Court held that because the ordinance did not relate to land use, but rather land division, it was a subdivision ordinance, not a zoning ordinance; and therefore, the restrictions on zoning ordinances set forth in Wis. Stat. § 59.692 did not apply.
The Town could restrict the shoreland minimum lake frontage in manner more restrictive than state law.

The dissenting opinion correctly points out the practical issues with this decision, wherein it argues the majority has created an end-around the restrictions set out by the legislature in Wis. Stat. § 59.692. Local municipalities have now been provided a road map on how to restrict lakefront owners from the use of their land without the limits appropriately set out by the Wisconsin legislature.

Clair Law continues to monitor the ever-changing rights of homeowners and developers of lakefront property. Given the complexity, we would encourage anyone looking to buy, develop or sell property on one of the beautiful lakes in Walworth County to contact our office to discuss their options.

To read the Wisconsin Supreme Court decision, please visit:
https://www.wicourts.gov/sc/opinion/DisplayDocument.pdf?content=pdf&seqN...