Antosh v. Village of Mount Pleasant

CourtDistrict Court, E.D. Wisconsin
DecidedMarch 10, 2023
Docket2:22-cv-00117
StatusUnknown

This text of Antosh v. Village of Mount Pleasant (Antosh v. Village of Mount Pleasant) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Antosh v. Village of Mount Pleasant, (E.D. Wis. 2023).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN

PAMELA J ANTOSH, NED E LASHLEY,

Plaintiffs, v. Case No. 22-cv-0117-bhl

VILLAGE OF MOUNT PLEASANT, et al.,

Defendants. ______________________________________________________________________________

ORDER GRANTING MOTION TO DISMISS ______________________________________________________________________________

This is the second lawsuit Plaintiffs Pamela J. Antosh and Ned E. Lashley have filed challenging the Village of Mount Pleasant’s use of its eminent domain power to acquire a parcel of their real property. They first filed suit in state court in December 2019, shortly after the Village took steps to condemn their property for highway changes associated with the much-publicized Foxconn development. In state court, Antosh and Lashley elected not to challenge the propriety of the taking itself but instead focused on the amount of compensation they were to receive. Two years into that litigation, however, they changed their minds. With their case on the brink of trial, the state court undercut their damages theory in a motion in limine ruling. Rather than addressing the correctness of that ruling in the state courts, Antosh and Lashley filed this action, now alleging for the first time that the taking was for an improper private purpose. The Village has moved to dismiss, arguing that this Court should either reject these latest claims on their merits or abstain from exercising jurisdiction to allow the long-pending state court action to run its course. (ECF Nos. 24 & 25.) For the reasons given below, the Court concludes that abstention is appropriate and will grant the Village’s motion to dismiss. BACKGROUND1 In July 2017, Taiwan-based electronics company Foxconn announced a plan to build its first American factory in Wisconsin. Three months later, the Village of Mount Pleasant emerged

1 This Background is derived from the allegations in Antosh’s amended complaint. (ECF No. 23.) Those allegations are presumed true for purposes of the motion to dismiss. See Bell Atl. Corp. v. Twombly, 550 U.S. 544, 554–56 (2007). as the winner of the bid process for the factory site. Local and national news extensively covered the development and its progress.2 In securing the bid, the Village agreed to acquire more than 2,800 acres of privately owned land for the new facility. (ECF No. 23 ¶2.) To accomplish this, the Village used a financing mechanism called a Tax Incremental Financing District (TID). (ECF No. 23-5 at 3.) Wisconsin law provides for the creation of TIDs through a state-legislature managed process that allows municipalities to finance expenses associated with private, tax-producing development. (See id.); Wis. Stat. § 66.1105 (2019–20). The legislation creating the TID must identify a specific purpose, and, if the TID is industrial, all the lands within the TID must be zoned as industrial. See Wis. Stat. § 66.1105(4)(gm)(4)(a). The Wisconsin legislature authorized the creation of the Foxconn TID in September 2017. (See ECF No. 23-5 at 2.) After this authorization, the Village rezoned properties around the site as “business park” properties. (See id.) The size of the Foxconn development necessitated substantial improvements to the transportation and utility infrastructure in the project area. (See id. at 3.) Among other infrastructure efforts, the Village, Racine County, and the State of Wisconsin Department of Transportation agreed to expand and improve County Road KR and 90th Street. (Id. at 3–5.) The need for the expansion and re-routing of 90th Street impacted Antosh and Lashley, who owned a three-acre parcel at the corner of County Highway KR and 90th Street. (ECF No. 23 ¶¶3, 5.) As part of the re-routing, the Village utilized its direct condemnation powers under Wis. Stat. § 32.05. (Id. ¶14.) Consistent with Wisconsin law, on September 19, 2019, the Village provided Antosh and Lashley with a “jurisdictional offer,” which explained that the Village “in good faith intends to use the above-described property for [a] public purpose.” (Id. ¶12.) Two months later, on November 20, 2019, the Village awarded the Plaintiffs “damages” for the taking of their property, stating that the compensation was for “road purposes” described as the “improvement of CTH KR

2 See, e.g., Nelson D. Schwartz & Vindu Goel, Foxconn Says It Plans to Build Factory in Wisconsin, Adding 3,000 Jobs, N.Y. TIMES (July 26, 2017), https://www.nytimes.com/2017/07/26/business/foxconn-factory-wisconsin- jobshtml; Chris Isidore & Julia Horowitz, Foxconn Got a Really Good Deal from Wisconsin. And It’s Getting Better, CNN BUS., (Dec. 28, 2017) https://money.cnn.com/2017/12/28/news/companies/foxconn-wisconsin-incentive- package/indexhtml; Danielle Paquette, Todd C. Frankel & Hamza Shaban, Foxconn Announces New Factory in Wisconsin in Much-Needed Win for Trump and Scott Walker, THE WASHINGTON POST, (July 26, 2017) https://www.washingtonpost.com/news/wonk/wp/2017/07/26/foxconn-to-announce-new-factory-in-wisconsin-in- much-needed-win-for-trump-and-scott-walker/; Patrick Marley & Jason Stein, Foxconn Announces $10 Billion Investment in Wisconsin and up to 13,000 Jobs, MILWAUKEE J. SENTINEL, (July 26, 2017) https://www.jsonline.com/story/news/2017/07/26/scott-walker-heads-d-c-trump-prepares-wisconsin-foxconn- announcement/512077001/. in Racine County.” (Id. ¶¶17–19; ECF No. 23-5 at 1.) Under Wisconsin law, the recording of this award served to transfer interest in Plaintiffs’ property to the Village. (See ECF No. 23 ¶¶17–19.) On December 4, 2019, Antosh and Lashley filed suit in Racine County Circuit Court. Invoking Wis. Stat. § 32.11, they sought greater compensation for the taking. (Id. ¶25; ECF No. 25 at 6.) They complained that while the Village had paid five to eight times the value of most properties it acquired for the Foxconn project, it had never offered Antosh and Lashley such multipliers for their land. (ECF No. 23 ¶6.) Antosh and Lashley did not contend that their property had improperly been taken for a private (as opposed to a public) use. Under Wisconsin law, they would have had to file such a “right to take” challenge within 40 days of their receipt of the jurisdictional offer, or no later than October 29, 2019. See Wis. Stat. § 32.05(5). Antosh and Lashley did not pursue such a challenge. After two years of discovery and other proceedings, the case was finally ready for a February 1, 2022 trial date. (ECF No. 25 at 6.) In advance of trial, the Village filed motions in limine, asking for the exclusion of expert evidence or argument that the Antosh property would have a higher valuation if considered “business park” rather than “agricultural” property. (ECF Nos. 23-5 & 23-6 at 6.) The Court granted the Village’s motion at a January 5, 2022 final pretrial conference, citing Wisconsin’s Project Influence Rule, codified at Wis. Stat. § 32.09(5)(b). (See ECF No. 23-7 at 18.) In response, on January 28, 2022, just four days before trial was to start, Antosh and Lashley filed this federal court suit. (ECF No.

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Antosh v. Village of Mount Pleasant, Counsel Stack Legal Research, https://law.counselstack.com/opinion/antosh-v-village-of-mount-pleasant-wied-2023.