City Council Preview: Watertown City Council to Tackle Affordable Housing TIFs and Airport Leases
- Steve Jurrens
- 4 hours ago
- 3 min read
Northeast Radio SD News - Watertown, SD - The Watertown City Council will convene Monday, March 2, 2026, at 5:30 PM at City Hall to deliberate on an agenda highlighted by “workforce” housing initiatives and long-term lease agreements at the Watertown Regional Airport.
Consent Agenda Highlights
The meeting will begin with several routine and administrative actions under the consent agenda:
· Meeting Minutes: Approval of the minutes from the previous regular session held on February 17, 2026.
· New Business License: A sign installer business license for Omaha Neon Sign Company is up for approval. The applicant has paid the $250 fee and provided the necessary insurance and bonding documentation.
· Financials: Authorization for the payment of standard bills and payroll.
Contracts and Infrastructure
The Council will consider a $161,660.00 agreement with Civil Design Inc. (CDI) for construction administration services related to the 5th Avenue N Reconstruction Project.
· Project Scope: CDI will provide on-site support, construction staking, GPS file preparation, and final inspections for the reconstruction of approximately 3,500 lineal feet of roadway between 4th Street NW and Highway 81.
· Budgetary Impact: The total project cost, including this agreement and the previously approved bid from Site Works Inc., stands at approximately $2.63 million, which remains below the budgeted $3.11 million.
Ordinance First Readings: Harmony Hill Expansion
Two ordinances related to the expansion of the Harmony Hill development will have their first readings:
· Ordinance No. 26-01: This proposal seeks to annex and establish a zoning designation of R-1C (Compact Single Family Residential District) for a 2.8-acre parcel.
· Ordinance No. 26-02: This related measure would rezone approximately 7 acres of adjacent property from A-1 (Agricultural District) to R-1C. Combined, these actions facilitate the next phase of the Harmony Hill residential development. The Planning Commission unanimously approved these measures on February 19th.
Public Hearings: Airport Land Leases
Two significant lease agreements at the Watertown Regional Airport are scheduled for public hearings:
1. Agricultural Lease (LNJ Farms and Ranch): A two-year lease with Lyle Bothe for approximately 732 acres of airport land. The land is designated for haying and crop harvesting, with an annual rent of $122,040. As part of the deal, the lessee must also deliver 12 round bales of hay annually to the Bramble Park Zoo.
2. Hangar Lease (Dynoair, LLC): A 20-year lease for 5,625 square feet of city property to accommodate a privately owned $75’ \times $75' hangar. The initial rent is set at $1,406.25 per year, with a 2% annual increase.
Regular Agenda: Multi-Family Housing TIF Districts
The most substantial items on the regular agenda involve the creation of two new Tax Increment Financing (TIF) districts aimed at boosting affordable workforce housing:
TIF District Number Twenty-One: “The Oaks II”
The Council will vote on Resolution No. 26-08 to adopt a project plan for a new 72-unit apartment complex.
· Affordability: Rental rates will be set at or below 80% of the Area Median Income (AMI).
· Funding: The developers are requesting $953,564 in TIF assistance to cover eligible infrastructure costs.
· Total Investment: The total project cost is estimated at $16.3 million. The City’s role is strictly as a conduit; no direct city funding is involved.
TIF District Number Twenty-Two: “Dakota Commons Reserve”
Resolution No. 26-09 proposes a TIF district for a larger development consisting of eight buildings and 112 residential units.
· Affordability: Like The Oaks II, this project is classified as affordable housing, restricting rents to 80% of AMI or less.
· Funding: The developer is requesting $2,008,809 to offset infrastructure expenses.
· Total Investment: This project represents a $17.56 million investment in the city’s housing stock.
Both TIF plans are structured as “Annual Appropriation” TIFs to ensure they do not count against the city’s constitutional debt limit.
