City will appeal latest hospital ruling

Oconomowoc Focus, June 6, 2006

Jonna Clark, staff writer

City of Oconomowoc - The city will most likely appeal a circuit court judge's ruling last week that in effect gave Aurora Health Care the green light to build its new hospital in Pabst Farms.

The Common Council met in closed session Thursday night for over an hour to discuss their next move in what has been a five-year legal battle begun in 2001 with a zoning change.

Mayor Maury Sullivan said the city would ask Waukesha County Circuit Court Judge James Kieffer to reconsider the rulings, often the first step in the appeal process.

If Kieffer elects not to reconsider, then the formal appeal process will most likely start.

Sullivan also said the city is open to pursuing settlement talks with Aurora, though the appeal process is first up and expected to take some time.

In the recent past, the city has been unwilling or unable to discuss mediation with Aurora, but Sullivan said the change in attitude might be due in large part to fatigue.

"We have been at this five years now and there are other things in the world to work on," he said.

Sullivan also said Kieffer's adverse decision is weighing on the situation.

"Without resolution of some kind, we are headed for an actual trial and that could be nettlesome," Sullivan said, and not just for city staff. Sullivan pointed to the $59 million in damages Aurora would seek if they won against the city.

Aurora officials have said in court that the city's rezoning has cost the health are provider that much in lost revenues and higher construction costs.

"We don't want to be playing with taxpayers money," Sullivan said.

Jeff Squire, a spokesman for Aurora, released a prepared statement on the latest developments from the city: "The reasonable and prudent path toward resolving this matter lies in settlement talks, and we encourage city officials to begin these discussions soon."

Sullivan said in an effort to resolve the legal battle the city has opted for a three-prong approach: the request for reconsideration from Kieffer, the appeal process and an openness to talks with Aurora.

Kieffer decided two weeks ago that the city illegally rezoned land as a means of blocking Aurora's bid to build an 88-bed hospital in Pabst Farms.

Kieffer made several key rulings on motions filed in 2001 against the city by Aurora.

The third circuit court judge to get the lawsuit, Kieffer ruled that the city violated its own municipal code by not filing a petition of the rezoning plan before the Plan Commission and Common Council acted.

In 2001, the city rezoned a 44-acre parcel in Pabst Farms from commercial to industrial. An industrial designation does not allow for construction of a hospital.

In court, the city said a formal zoning petition was not necessary, but Kieffer called that position unreasonable and pointed to the city's zoning policies and ordinance, which call for review of applications by city planners and administrators.

Kieffer also ruled that city officials violated state open meetings law by not being able to prove that notice of their April 2001 meeting was properly posted.

Aurora's builder has submitted an application for a special use permit, and officials said they would like to start construction on Parcel 5 in Pabst Farms as soon as this fall.

Planned is a 360,000-square-foot hospital and 100,000-square-foot medical office facility with an estimated cost of $166 million.

Sullivan said a June 14 staff meeting should see representatives from Aurora on hand to discuss project plans despite the decision to appeal the ruling.

Sullivan said that the staff meeting is informal and one open to all developers with current projects ongoing in the city and not a special meeting for Aurora.