Wisconsin cottage case prompts bill to let property owners use and sell substandard lots

In response to a U.S. Supreme Court ruling against the owners of a Wisconsin cottage, state lawmakers are proposing a change in state law to let property owners use and sell substandard lots.

The decision "shined a bright light on the tight grip the government holds on private property owners,” Sen. Tom Tiffany (R-Hazelhurst) said. “We are calling on our legislative colleagues to take action and lead the way in protecting their rights.” 

Last month, the court upheld Wisconsin court rulings that the Murr family, which owns a cottage on Lake St. Croix, was not entitled to compensation over development regulations that bar the sale of the family's adjacent lot.

The Murrs' parents purchased two adjacent lots in the 1960s, built a cottage on one and left the other vacant. Conservation and waterfront development rules adopted in the 1970s made the empty lot undevelopable and essentially merged it into the family's second lot.  Because the combined parcel could support a new residence under the new restrictions, the court ruled, the Murrs did not really lose the value of their property.

The Murrs wanted to sell the empty lot to finance renovations on the existing cottage.

The Pacific Legal Foundation had taken the Murrs' case to the U.S. Supreme Court for free, hoping the high court would adopt a clear rule favoring property owners in such cases. General Counsel John Groen said the defeat "was also a powerful call to action for everyone who values property rights.”

He applauded the proposed legislation.

The PLF is "committed to an extended campaign to reverse the impact of the Murr decision, and other assaults on the rights of property owners, by taking the fight to courthouses — and statehouses — all across the country.”

Rep. Adam Jarchow (R-Balsam Lake), who with Tiffany led a news conference Thursday, said their intention is that the law, if passed, would be retroactive and allow the Murrs to sell their lot.

Jarchow and Tiffany say their bill "rights the wrong" of the Murr decision by letting property owners use or sell any substandard lots that were legal when they were created.

The bill would also prohibit the merging of adjacent lots under common ownership, and require that courts consider effects on individual tax parcels when calculating value in condemnation cases, even if they are contiguous and under common ownership.

Those changes are just two of several provisions in a pair of bills Jarchow, Tiffany and Rep. Rob Brooks (R-Saukville) tout as strengthening a "Homeowners Bill of Rights." 

Others would make it easier to get conditional use permits and variances, maintain non-conforming structures, dredge private ponds, develop and build affordable housing and hang the American flag when condominium or homeowner association rules might conflict.

Jarchow and Tiffany are circulating the bill, seeking co-sponsors.