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City Seeks Up to $500,000 Grant for Calvin Industrial Park Lift Station Project

Red "Applications" and yellow "Grants" binders on a desk with papers, calculator, and pen. City of Watertown, NE Radio SD logos visible.

Northeast Radio SD News - Watertown, SD - The Watertown City Council is slated to vote on authorizing an application for a Local Infrastructure Improvement Program (LIIP) Grant of up to $500,000 for the new lift station and sanitary sewer line at Calvin Industrial Park Second Addition. The action is included in the consent agenda for the November 19, 2025, City Council meeting.


The project is the subject of a Property Development Agreement—often referred to as a Memorandum of Understanding (MOU)—between four key entities: the City of Watertown, Codington County, Watertown Development Company (WDC), and Watertown Municipal Utilities (WMU). City Manager Alan Stager is seeking authorization to apply for and accept the LIIP Grant, as well as sign the required commitment letter.


This joint effort is intended to facilitate and promote economic development and the general welfare of the City of Watertown and the surrounding area.


The project involves the construction of a 30-foot-deep lift station and approximately 9,200 feet of force main. This new infrastructure is necessary because the development currently lacks gravity-fed sanitary connections, and nearby existing sanitary lines are at capacity. The property being serviced, Calvin Industrial Park Second Addition, is divided into 11 lots and is currently titled in the name of the WDC. The new lift station will also service an "Extended Service Basin" of approximately 330 acres in Codington County.


The estimated probable cost for the total project is $3,666,600. The City has already secured an Economic Development Administration (EDA) Grant and is now applying for the LIIP Grant to further assist with costs.


The four partnering entities have agreed to share equally in all remaining expenses for the engineering, development, and construction of the lift station and force main, after available grant funds are applied.


The responsibility breakdown is:

·         County: 25%

·         City: 25%

·         WDC: 25%

·         WMU: 25%

Based on the potential grant awards, each entity is currently estimated to contribute approximately $235,000 to $285,000.


The City Engineer will oversee the design and construction, and WMU will administer payment for all project-related expenses, invoicing the other entities for their share after grant funds are applied. The agreement also outlines that any future cost recoveries from landowners or developers within the property will be split equally among the four parties.


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