City Looks to Acquire Land from SD DOT for Future North Bypass
- Steve Jurrens
- 11 hours ago
- 2 min read
Northeast Radio SD News – Watertown, SD - The Watertown City Council is set to vote on Monday, June 15, 2026, on whether to authorize the purchase of a 2.91-acre parcel of land from the South Dakota Department of Transportation (SD DOT) for $12,200.
The property, officially identified as Lot B2, is a 126,684-square-foot parcel located near the northern limits of Watertown, adjacent to 814 26th Avenue NW. The land sits in the Northeast Quarter of Section 24, Township 117 North, Range 53 West, lying just east of the Burlington Northern Railroad Company right-of-way. A recently filed plat from June 2024 shows that this new lot vacates previously platted lots (Lot H1 and Lot B in Lot H1) to consolidate the parcel.
In a letter to the City dated June 2, 2026, SD DOT Property Manager Scott Pretzer notified Watertown officials that the state had officially declared the property “excess”. Because Watertown operates as a governmental entity, the SD DOT offered the city the exclusive opportunity to purchase the land at its exact appraised value of $12,200. The state requested full payment payable to the SD Dept. of Transportation prior to the recording of a Quit Claim Deed.
Strategic Purpose: The North Bypass
According to the agenda item submitted by City Manager Alan Stager, the primary intent behind this acquisition is to hold the land in reserve for the future consideration of a North Bypass. Securing this surplus DOT land now at its appraised value ensures the City maintains control over critical right-of-way corridors needed for potential long-term traffic and infrastructure improvements.
The $12,200 purchase will be funded entirely out of the city’s Land Restricted Fund (account number 212-43180-43100), avoiding an impact on the general operating budget. If the council approves the suggested motion, the City Manager will be fully authorized to execute all documents required to finalize the transaction.
The transaction documents also reveal a long history of infrastructure planning in this specific corridor. Attached records show right-of-entry and quitclaim agreements in this immediate area dating back to 2006 and 2017, involving the SD DOT, the City of Watertown, and local developers such as High Plains Development Corporation.
This purchase represents the latest step in a decades-long process of managing highway and road boundaries on the city’s northern edge.
