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Sturgeon Bay cannot sell property for waterfront development

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UPDATE: Judge rules city of Sturgeon Bay cannot sell land on contested waterfront property.

City officials won't say if they'll appeal.

This story will be updated.

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Neighbors concerned over the proposed development of a hotel on Sturgeon Bay's waterfront were in court Thursday arguing that the state constitution prohibits the building of the hotel because of the property's history as part of a lake bed. 

They say, not only will the hotel cause environmental damage, it will remove a popular waterfront.