PORT WASHINGTON, Wis. — A voter-approved Port Washington ordinance that gives residents a say on certain future large-scale developments and tax increment financing districts could be overturned in court.
The ordinance, approved by voters roughly 2-to-1 in a referendum six months ago, has been the subject of an ongoing legal challenge, originally filed in January 2026. An attorney representing opponents of the ordinance is asking an Ozaukee County judge to declare the ordinance invalid.
Watch Alex Gaul's report in the video player below:
The measure drew national attention as what supporters described as the nation's first anti-data center referendum. The ordinance applies to future projects and does not affect the tax incremental district created for Vantage's $15 billion campus currently under construction in Port Washington.
One of the plaintiffs, the Metropolitan Milwaukee Association of Commerce, said in a statement to TMJ4 News that the ordinance is too broad to enforce. The organization argues it would make the approval process too risky for developers and could create a precedent and “chilling effect” that would hurt development in Port Washington and across Wisconsin.
"Invalidating this ordinance is important to restore certainty and competitiveness to Port Washington’s economic development environment," the statement said in part. "State statute already dictates the process for creating and approving a Tax Incremental District, requiring public notice, hearings and approval by a Joint Review Board that includes public representation."
Some Port Washington residents who supported the referendum said they viewed the measure as a way to give voters more oversight of major development decisions.
“I believe I agreed to make it be voted on for anything over the $10 million,” Port Washington resident Ric Mihalko said.
Mihalko said he would not be particularly disappointed if a judge overturns the ordinance, despite voting for it. He believes the referendum has already delivered its message to city leaders and developers.
“Hopefully it makes them think more before it happens again, that the residents are watching, and other business owners are more watchful now,” Mihalko said.
An oral ruling in the case is scheduled for later this month.
Read the MMAC's full statement below.
Invalidating this ordinance is important to restore certainty and competitiveness to Port Washington’s economic development environment. State statute already dictates the process for creating and approving a Tax Incremental District, requiring public notice, hearings and approval by a Joint Review Board that includes public representation.
Adding a separate referendum requirement for undefined “large capital projects” and projects exceeding $10 million creates uncertainty that could have a chilling effect on future development well beyond any single project. Housing, infrastructure, mixed-use projects and others all rely on TIF as an important development tool. Companies and developers have choices about where to invest, and many will think twice about pursuing a project if their company or development effectively has to be placed on a ballot and approved by voters before it can receive final approval.
The ordinance also sets a troubling precedent. If similar requirements were adopted by other communities, they could add uncertainty, delays and financial risk to the economic development process, putting communities across Wisconsin at a disadvantage when competing for investment.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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