Limiting the authority of a city, village, or town to enact a development moratorium ordinance

Under the current law commonly known as the "Smart Growth" statute, if a city, village, town, county, or regional planning commission creates a development plan or master plan (comprehensive plan) or amends an existing comprehensive plan, the plan must contain certain planning elements. The required planning elements include the following: housing; transportation; utilities and community facilities; agricultural, natural, and cultural resources; economic development; land use; and intergovernmental cooperation.

Subject to a number of limitations and conditions, this bill authorizes a city, village, or town (municipality) to enact a development moratorium ordinance if the municipality has enacted, is in the process of enacting or amending, or is exempt from having to enact, a comprehensive plan. The municipality may enact a development moratorium ordinance (moratorium) only if its governing body adopts a resolution stating either that a moratorium is needed to prevent a shortage in or the overburdening of its public facilities or that a moratorium is needed to address a significant threat to the public health or safety. In either case, the municipality must obtain a written report from a professional engineer stating that the possible effect on public facilities, or the possible threat to public health or safety, justifies the need for a moratorium. In the case of a possible health or safety threat, the report may also be from a physician or registered nurse.

The moratorium must contain a number of elements, including a statement describing the problem giving rise to the need for the moratorium, the actions the municipality intends to take to address the problem, and the length of time the moratorium will apply. The moratorium may remain in effect only until the municipality addresses the problem giving rise to the need for the moratorium, or for 12 months, whichever occurs first. The bill also authorizes the municipality to extend the moratorium for another six months if the problem is not addressed. In addition, a municipality may not enact a moratorium unless it first holds a public hearing at which the proposed ordinance is discussed.

The bill first applies to a land development plan that is submitted to a municipality on the effective date of the bill, although the municipality and the developer could agree to apply the moratorium retroactively.