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Commission hears overview of Wisconsin Act 173 (Truth in Planning) and new RTID rules under Act 235
Summary
Staff summarized 2025 state changes requiring plan land‑use elements to specify phasing/density (Act 173) and creating residential TIDs with specific dimensional and occupancy limits (Act 235); commissioners discussed implications for Cottage Grove’s comp‑plan update and zoning.
Village planning staff briefed the Plan Commission on two 2025 state laws that alter local planning practice.
Aaron said Act 173 (the ‘‘truth in planning’’ law) requires the land‑use element of a comprehensive plan to describe phasing and density of future residential development and explained that, for residential developments consistent with that plan, local authorities are now more constrained to approve zoning requests that match the plan’s specified phasing and density, subject to exceptions such as the municipality’s inability to provide utilities.
Aaron also reviewed Act 235, which creates a residential tax-increment district (RTID) designed to promote workforce housing. He summarized several statutory limits for RTIDs: units must be owner-occupied single-family or duplex; lot sizes may not exceed 7,500 sq ft for single-family and 12,500 sq ft for duplexes; maximum widths (70 ft single-family, 80 ft duplex); and limits on square footage and setbacks.
Commissioners discussed whether Cottage Grove should adjust its SR-6 zoning or create a new district to permit RTID‑compatible development and how the upcoming comprehensive-plan update could identify candidate areas for RTIDs. Staff warned that comp‑plan wording now carries more consequence under Act 173 and recommended careful policy choices during the plan update.
No formal action was taken; the briefing was informational and intended to inform the comp‑plan process and future zoning options.
