Hunter Clinton v. Village of Sister Bay

Court of Appeals of Wisconsin·Decided July 14, 2026·No. 2025AP001825·Published

Opinion

COURT OF APPEALS DECISION NOTICE DATED AND FILED This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. July 14, 2026 A party may file with the Supreme Court a Samuel A. Christensen petition to review an adverse decision by the Clerk of Court of Appeals Court of Appeals. See WIS. STAT. § 808.10 and RULE 809.62.

Appeal No. 2025AP1825 Cir. Ct. No. 2024CV119

STATE OF WISCONSIN IN COURT OF APPEALS DISTRICT III

HUNTER CLINTON, JESSICA CLINTON, JOHN WILSON, ERIN WILSON, NICK FROEMMING, TARA FROEMMING, MARK SWANSON AND CALEY SWANSON,

PLAINTIFFS-APPELLANTS,

V.

VILLAGE OF SISTER BAY,

DEFENDANT-RESPONDENT.

APPEAL from a judgment of the circuit court for Door County: JENNIFER A. MOELLER, Judge. Reversed and cause remanded with directions.

Before Stark, P.J., Hruz, and Gill, JJ.

¶1 STARK, P.J. In 2023, the Village of Sister Bay amended the definition of short-term rental within its local zoning code to prohibit property owners from renting more than four bedrooms in their homes, and it has applied that change to all existing properties in the Village. Hunter and Jessica Clinton, No. 2025AP1825

John and Erin Wilson, Nick and Tara Froemming, and Mark and Caley Swanson are four couples who own properties in the Village that contain five or more bedrooms and who claim that they were either already renting out their homes when the four-bedroom limit was adopted or were in the process of building homes with the intention to rent them.1

¶2 The Property Owners filed this lawsuit based on their contentions that WIS. STAT. § 66.1014 (2023-24),2 colloquially known as the “Right to Rent” law, see Wildwood Est., LLC v. Village of Summit, 2025 WI App 47, ¶3 n.2, 418 Wis. 2d 22, 25 N.W.3d 581, gives homeowners the right to rent their entire homes and that, therefore, the Village’s ordinance logically conflicts with state law. The circuit court disagreed with the Property Owners and granted summary judgment, on all but one of the issues, in favor of the Village. The Property Owners now appeal from that summary judgment, arguing that the court erred in several respects.

¶3 We conclude that the Village’s four-bedroom limit on short-term rentals logically conflicts with the plain language of WIS. STAT. § 66.1014, which language we have previously interpreted, in Wisconsin Realtors Ass’n v. City of Neenah, 2025 WI App 49, 418 Wis. 2d 78, 25 N.W.3d 663, to bar restrictions on short-term rentals beyond timing limits alone. Given this conclusion, we do not reach the other issues presented by the Property Owners on appeal.3 Accordingly,

1 We will refer to the plaintiffs-appellants, collectively, as “the Property Owners.” To the extent we must refer to the couples, we will do so by their surnames. 2 All references to the Wisconsin Statutes are to the 2023-24 version. 3 An appellate court need not address every issue raised by the parties when one issue is dispositive. See Sweet v. Berge, 113 Wis. 2d 61, 67, 334 N.W.2d 559 (Ct. App. 1983).

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we reverse the circuit court’s grant of summary judgment in favor of the Village and remand for the court to issue a revised judgment declaring the four-bedroom limit within the definition of short-term rental in the Village’s zoning code preempted and therefore void.

BACKGROUND

¶4 In 2022, the Village adopted a Short-Term Rental Licensing Ordinance (the STRO), codified in VILLAGE OF SISTER BAY, WIS., CODE OF ORDINANCES ch. 18, art. IV (Aug. 20, 2025).4 The purpose of the STRO was “to establish licensing requirements which allow residential dwellings to be rented as a means to offer individuals a safe and enjoyable place to stay while visiting Sister Bay, while maintaining the quality of life of the residents and other visitors” and “to guarantee [that] the casual rental of a dwelling is compatible with the neighborhood in which it is located and does not disrupt the peace, health and safety, or visual appeal of Sister Bay.” CODE OF ORDINANCES § 18.51. The STRO also required property owners to obtain an annual short-term rental license to rent their property.5 CODE OF ORDINANCES §§ 18.52, 18.54, 18.55, 18.56.

¶5 A year later, in June 2023, the Village passed Ordinance No. 2023-004, which stated that “after one year of administering” the STRO, “land use compatibility concerns have arisen which warrant looking at the zoning regulations applicable to Short-Term Rentals.” As a result, and as relevant to this

4 All references to ch. 18 of the Village’s CODE OF ORDINANCES are to the August 20, 2025 amendment. 5 Short-term rentals must also obtain a license from the Wisconsin Department of Agriculture, Trade, and Consumer Protection, as well as a permit from the Door County Tourism Zone Commission. CODE OF ORDINANCES §§ 18.52, 18.54, 18.55.

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case, Ordinance No. 2023-004 amended the definition of short-term rental in the Village’s zoning code to add the following applicable language: “In no case shall more than four bedrooms be rented, unless more bedrooms are authorized by the Plan Commission.” See VILLAGE OF SISTER BAY, WIS., ZONING CODE § 66.2100 (Feb. 2026).6 We will refer to this amended definition as “the four-bedroom limit.” The four-bedroom limit applies “[i]n the R-1, R-3 and CS-1 zoning districts,” ZONING CODE § 66.2100, which are the “Single-Family Residence District,” the “Multiple-Family Residence District,” and the “Countryside District,” ZONING CODE §§ 66.0311, 66.0312, 66.0315.7

¶6 As mentioned above, the Property Owners wish to advertise and operate their homes as short-term rentals with more than four bedrooms. The Clintons own a five-bedroom home, located on Birchwood Drive, that they have been renting out on a short-term basis since early 2023. However, in July 2024, their rental license limited them to four bedrooms and twelve guests.

¶7 The Swansons also own a five-bedroom home, on Scandia Road, which they have been operating as a short-term rental since 2021. Like the Clintons, the Swansons’ July 1, 2024 rental license set the “[m]aximum number of bedrooms to be rented” at four and the “maximum number of guests permitted” at twelve. The Swansons, however, sought an exception from the four-bedroom

6 All references to the Village’s ZONING CODE are to the February 2026 version. 7 Within the same amendment to the zoning code, the Village also restricted short-term rentals to “a maximum of three (3) persons per legally permitted bedroom in existence at the time of this amendment,” meaning that, in combination with the four-bedroom limit, short-term rentals are also capped at twelve people. See ZONING CODE § 66.2100. The Property Owners do not challenge the Village’s twelve-person limit for short-term rentals.

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limit from the Sister Bay Plan Commission, as authorized under the zoning code, but their request was denied following minimal discussion.

¶8 The Wilsons own a five-bedroom home on Fieldcrest Road that they also rent out on a short-term basis. They began building this home in the fall of 2022. When they were initially building their home, the Wilsons “intentionally designed the property with five bedrooms to make it more attractive to guests.” The Wilsons averred in a declaration that “[h]ad we known that short-term rentals would be limited to four bedrooms, we would have built the property differently” and that “[t]he additional cost for the finished basement which included the fourth and fifth bedrooms was approximately $20,000.” Like the Swansons, the Wilsons asked for an exception to the four-bedroom limit at a plan commission meeting, but their request was denied.8

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