LRB-2473/1
ZDW:ahe&kjf
2019 - 2020 LEGISLATURE
June 28, 2019 - Introduced by Senators Wanggaard and Wirch, cosponsored by
Representatives Wittke, Neubauer, McGuire, Skowronski, Ohnstad and
Bowen. Referred to Committee on Natural Resources and Energy.
SB306,1,2 1An Act to create 30.2039 of the statutes; relating to: use of formerly submerged
2land in the city of Racine.
Analysis by the Legislative Reference Bureau
This bill expands the authorized uses of three parcels of lakebed that were
granted by the state to the City of Racine between 1917 and 1963 and that remain
unsubmerged through the use of lakebed fill.
Identified parcels
The bill identifies three parcels to which the bill applies:
1. One parcel of submerged land conveyed to the City of Racine in 1917 for the
purpose of a public park.
2. One parcel of partly submerged land conveyed to the City of Racine in 1937
for the purpose of providing various public facilities, including docks, wharves,
highways, and parks.
3. One parcel of partly submerged land conveyed to the City of Racine in 1963
for the purpose of providing various public facilities, including docks, wharves,
highways, and parks, and for providing water recreation.
General use
This bill provides that the owner of the identified parcels may use the parcels
for any public or public-private use, including the placement, replacement, or repair
of structures, subject to restrictions. “Public-private use” means any use authorized
by resolution of the common council of the city of Racine under a public-private
partnership that is consistent with a public development plan. The bill makes the
following restrictions on all uses of the specified parcels:

1. The 15 vertical feet above the surface of the lakebed fill may not be conveyed
out of public ownership or converted to a private use.
2. Public use of the parcel must provide or increase public recreation, arts,
event, or civic opportunities in or near navigable waters or increase or improve public
access to navigable water.
3. The public owner of the parcel must maintain control over any private
interest in and use of the parcel through use of specified contractual requirements.
4. At least 20 percent of property tax revenues generated from a public-private
partnership must be dedicated to support and improve public access to and
enjoyment of navigable waters or recreational opportunities within the parcels.
5. The majority of the land area of the parcels must remain in public ownership,
be open to the public, and not be subject to public-private use.
Hotel development
The bill further authorizes the development of a hotel at a specified location on
a portion of the identified parcels, subject to the following requirements:
1. The hotel must have an observation deck on the uppermost story or rooftop
that offers views of Lake Michigan and is accessible to the public.
2. The hotel must have a restaurant on the uppermost story or rooftop that
offers views of Lake Michigan and is accessible to the public.
3. The operator of the hotel must operate an adjacent municipal conference
center so that the hotel functions as an expansion of the space and capabilities of the
municipal conference center.
4. The ground floor of the hotel must occupy at least the first 15 vertical feet
above the surface of the lakebed fill, and the majority of the space must contain
conference and meeting space for events held at the municipal conference center.
5. The first-floor space of the hotel building must be at least 15 feet above the
surface of the lakebed fill.
Because this bill concerns a conveyance of a lakebed area, the Department of
Natural Resources, as required by law, will prepare a detailed report to be printed
as an appendix to this bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB306,1 1Section 1 . 30.2039 of the statutes is created to read:
SB306,2,2 230.2039 Use of filled lakebed in the city of Racine. (1) In this section:
SB306,2,33 (a) “Common council” means the common council of the city of Racine.
SB306,3,6
1(b) “Public-private partnership” means a relationship in which a public entity
2contracts with a private entity to obtain specified public benefits from the private
3entity in exchange for allowing the private entity to construct, operate, and lease
4infrastructure in, on, or above formerly submerged lands that were filled subject to
5a lakebed grant and to control air rights and own infrastructure within the space that
6is more than 15 feet above the surface of the lakebed fill.
SB306,3,97 (c) “Public-private partnership agreement” means a written agreement
8between a public entity and one or more private entities that is approved by the
9common council.
SB306,3,1310 (d) “Public-private use” means any use or combination of uses expressly
11authorized by resolution of the common council that occurs under a public-private
12partnership and is consistent with a public comprehensive development or
13redevelopment plan approved by the common council.
SB306,3,18 14(2) (a) Notwithstanding s. 24.39 (4), 30.11, or 30.12 or any provision of a grant
15of a parcel identified in par. (c) and subject to par. (b), the owner of a parcel that is
16identified in par. (c) may use the parcel for any public or public-private use permitted
17under federal, state, and local law, including the placement, replacement, or repair
18of structures, if all of the following apply:
SB306,3,2119 1. No portion of a parcel that is within 15 feet of the surface of the lakebed fill
20and that has previously been designated for public use is conveyed out of public
21ownership or converted to an entirely private use.
SB306,3,2522 2. Any public use provides or increases public recreation, arts, event, or civic
23opportunities in or near navigable waters or increases or improves public access to
24navigable water, including public opportunity and convenience to view, enter,
25navigate, recreate on or near, or otherwise enjoy the navigable waters.
SB306,4,4
13. The public owner secures and maintains control over the location, nature,
2use, operation, and termination of any private interest in and use of real estate and
3infrastructure by doing all of the following by resolution of the common council prior
4to implementation:
SB306,4,65 a. Entering into a development agreement or construction contract with the
6holder of the private interest.
SB306,4,97 b. Entering into a management contract with the holder of the private interest
8or issuing the holder of the private interest an occupancy permit, conditional use
9permit, or license to operate.
SB306,4,1510 c. Transferring rights and interest in real estate by any lawful contractual
11method that is subject to a contractual mechanism such as revocation, rescission,
12reversionary interest, or option to purchase for fair market value that provides for
13the mandatory transfer of all rights and interests in the real estate to the local
14municipality upon a material breach or violation by the grantee of any contract,
15license, or agreement pertaining to use or ownership of the real estate.
SB306,4,1716 d. Providing in contract that interests transferred are for an initial period of
1798 years with an option to renew for not more than 2 terms of 25 years each.
SB306,4,2018 e. Providing in contract that any interests transferred from the local
19municipality may not be further conveyed without the approval of the common
20council.
SB306,4,2221 f. Entering into a contract or awarding a permit or license that authorizes
22annual inspection of the private space by the municipality.
SB306,5,423 4. Not less than 20 percent of property tax revenues generated from each
24public-private partnership are dedicated to support and improve public access to
25navigable waters, aids to navigation, enjoyment of scenic beauty or opportunities for

1fishing and recreation at locations within parcels identified in par. (b) 2. in
2accordance with a development plan, master plan, or tax incremental district plan
3approved by the common council. This subdivision applies to any tax increment
4district that contains part or all of a parcel identified in par. (b) 2.
SB306,5,65 5. The majority of the land area of the parcels identified in par. (c) remains in
6public ownership, is open to the public, and is not subject to public-private use.
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