Oconomowoc says it'll appeal hospital ruling

The Daily Reporter, June 6, 2006

Waukesha (AP) - The city of Oconomowoc will appeal a judges ruling that said the city illegally rezoned land to block construction of a hospital.

The ruling by Waukesha County Circuit Judge James R. Kieffer late last month paved the way for construction of an 88-bed hospital by Aurora Health Care.

Mayor Maury Sullivan said the city plans to appeal on the basis that the judge did not fully understand the zoning ordinance. But he said the city is willing to negotiate a settlement.

Aurora encourages city officials to begin the negotiations soon, spokesman Jeff Squire said.

The company sued Oconomowoc in 2001 after the citys council blocked construction of the hospital by rezoning a 43-acre site.

Aurora is seeking $59 million in damages.

The new hospital would be three miles from the existing Oconomowoc Memorial Hospital.

Advocates of the new hospital had contended that city officials were trying through the rezoning to protect Oconomowoc Memorial.

Opponents said the new hospital would provide the same services as the existing one and that could lead to higher prices for health care throughout the area.

Last month, the judge said the city did not follow its own rules and procedures when it voted in favor of the rezoning without first having had an application asking for the action.

Hours after the ruling, Aurora filed papers to start developing the hospital. A review by city staff could give the plan the go-ahead in a few weeks.

Aurora owns 13 hospitals and more than 100 clinics stretching from Kenosha to Green Bay.