Aurora hospital could face zoning block

Waukesha Freeman, July 6, 2006

By Erik Brooks
Freeman Staff

OCONOMOWOC The city will once again seek to use the zoning process to block construction of a new Aurora Health Care hospital in Pabst Farms a decision that casts further doubt over the construction of the controversial facility.

Mayor Maury Sullivan said he expects the common council to begin to act this month on rezoning 43.5 acres northeast of Interstate 94 and Highway 67 from suburban commercial, which would allow for construction of a hospital, to suburban industrial, which would not.

It would be the citys second attempt at rezoning the area known as parcel five.

The first, backed by the Oconomowoc Common Council in 2001, led Aurora to sue the city over claims it acted illegally in blocking construction of the planned hospital. Then, in May, a judge ruled that process invalid. Waukesha County Circuit Court Judge James R. Kieffer said Oconomowoc officials violated city ordinances by not first submitting a zoning application before acting on the issue.

Sullivan said the city plans to follow Kieffers ruling in seeking to rezone the parcel anew.

We have been of the opinion we did it correctly beforehand, Sullivan said. But that is what the judges ruling was, and we will follow it.

Sullivan stressed that the rezoning effort is simply one of a number of options the city is pursuing following Kieffers May 25 rulings on various motions in the five-year-old lawsuit.

He said the city still plans to ask Kieffer to reconsider the zoning and other rulings, with plans for an appeal should he decide not to. Also, the city continues to plot settlement talks with Aurora over potential lawsuit damages, Sullivan said.

We are working all options and will continue to work these options, Sullivan said. Then we will have to make a decision. One (option) could mature faster than the other.

Indeed, Sullivan said the city ultimately may not decide to rezone the land.

Its not a decision already made, he said. Its starting through the process.

Aurora spokesman Jeff Squire declined comment on the specifics of the rezoning decision but said, It is in the best interest of all parties that this matter be resolved through a settlement agreement. That should be the focus now.

Kieffers decision against the city on its 2001 rezoning process was the basis for Auroras decision to resubmit plans for a $166 million, 465,000-square-foot hospital and medical office building to city officials in May.

Those plans remain before the city for consideration, even as Oconomowoc officials prepare to consider blocking construction of the hospital.

The rezoning effort could have implications beyond the Aurora development.

In June, Pabst Farms and General Growth Properties Inc. announced plans for a large outdoor shopping center in the area of the proposed hospital.

The plans include the 43.5 acres committed to the Aurora hospital, which Pabst Farms officials have said would be better suited for another 53-acre site in the town of Summit.

Oconomowoc Planner Jason Gallo said it is too early to say if the retail development would be allowed under suburban industrial zoning, although he added that, generally, large-scale retail uses are not allowed under that zoning designation.

Pabst Farms officials could not be reached for comment.

Sullivan said he expects the Oconomowoc Common Council to take up the hospital rezoning issue at a meeting this month. Its next scheduled meeting is July 19.

The council will then likely refer the matter to the plan commission for its recommendation before it sends it back to the common council for final approval.

Sullivan said it remains possible the city wont rezone the land at all.

Maybe the council decides not to give the direction, he said. Maybe the plan commission, in studying it, decides not to give the recommendation. Maybe the council subsequently decides not to rezone.

Squire, Sullivan and other city officials declined to comment on the specifics of the settlement talks. Aurora has claimed that denial of its 2001 building plans has cost the hospital system more than $59 million.

City Administrator Diane Gard said discussions will be taking place.

There is nothing right now that is close to coming forward, Gard said.
Town of Summit President Leonard Susa said Wednesday he thinks the issue will be resolved soon, and he will ask the town board in closed session tonight to grant him power to also speak with city and Pabst Farms officials regarding the hospital matter.

Aurora officials have said they prefer to build their Pabst Farms hospital on another proposed site in the town, but they only pursued the city site after Kieffers rulings in May opened the door for construction there.

Aurora and the towns lawsuit against the county over those failed plans, separate from the Oconomowoc case, remains before the District II Wisconsin State Court of Appeals.