A continuing border battle in northern Dane County could block millions of dollars in new business and home construction from coming to the area.

The town of Windsor is resisting a developer who wants to annex about 53 acres of prime real estate in the town to the village of DeForest for a proposed Dean Health System clinic.

Traditionally towns have limited say on land annexations. But a court settlement in 2004 requires Windsor and DeForest to agree to any annexations or boundary changes until 2019.

The terms were put into effect so Windsor could retain parcels with commercial development potential and recoup some of the tax base lost in a previous annexation by DeForest.

In return for annexing the land for the medical facility, the developer has offered to pay Windsor $150,000 — an option that Windsor leaders consider not "equitable or logical," said Alan Harvey, town chairman.

"This is a highly valuable development parcel," Harvey said. "We are talking about a parcel that some day could exceed $70 (million) to $90 million in eventual build-out."

Windsor has plans to offer a different compromise: The town will OK the annexation if DeForest stops objecting to at least three other development proposals on land within 1.5 miles of the village. Those include upgrading and redesigning the 1960s era Lake Windsor Country Club and adding housing units; a mixed housing and commercial development called Windsor Corners; and a 75-acre combination retail, commercial, office and housing development called Windsor Crossing.

The village has objected to the projects in the past mainly because of inadequate police protection.

Jeff Miller, DeForest village president, said because the compromise hasn't been formally proposed, he didn't want to comment until more details were available.

Village Trustee Judd Blau, who attended a recent town meeting, said the village needs to continue discussions with the town so an agreement can be reached.

"I am absolutely worried that this development could choose to go to a different community altogether," Blau said of the proposed medical facility.

Feuds like this are common in Wisconsin because the state has so many units of local government, said Dan Thompson, executive director for the Wisconsin League of Municipalities.

"There are about a dozen states that have town government," Thompson said. "Very few have town government with as many powers and duties that we have in Wisconsin."

But Harvey said Windsor is not a typical town in that it has "essentially the same level of service" as a village, including a public works department that can extend sewer and water to new developments.

Still, John P. Livesey, owner of Livesey Co., which is developing the land, favors annexation rather than building the clinic in the town, saying DeForest would provide better services and require fewer zoning approvals.

Even if the land remains in the town, the village could still block the development under rules that allow DeForest to give final approval for any new development in an adjoining town within 1.5 miles of the village limits that is divided for development.

"The town needs the village to give approval," Livesey said.

Additional approvals could potentially complicate or jeopardize the project, he said.

One thing that both Windsor and DeForest officials agree on is that the proposed Dean Health Systems clinic would be a good addition to the area.

"We consider this to be a very positive project for the overall community and would like to see it proceed," Harvey said.

WHAT'S NEXT

The Windsor Town Board will meet at 5 p.m. today at the Windsor Town Hall, 4084 Mueller Road, to discuss next steps in locating a proposed Dean Health Systems medical facility in the town.