Codington County Approves $30M Bond for Major Senior Living Expansion at Harmony Hill
- Steve Jurrens
- 2 hours ago
- 2 min read
Northeast Radio SD News – Watertown, SD - Senior living in Watertown is poised for a transformation after the Codington County Commissioners unanimously approved a financing package on Tuesday. The board authorized Resolution 2026-04, greenlighting up to $30 million in economic development revenue bonds for the expansion of the Village of Harmony Hill, Inc.
The ambitious project, which has been in the planning stages for over five years, aims to address a critical shortage of independent senior housing in the region. The expansion will add 62 high-quality independent living units to the current campus, integrating them directly with the Mother of God Monastery.
A Project of “Continuum of Care”
Michael Klatt, a strategic advisor to the Sisters at Mother of God Monastery, testified before the Commissioners that the new development is designed to complete a “continuum of care” for the aging population. The monastery itself will be repurposed to serve as the grand entrance to the expanded campus, creating a seamless connection between the residential and religious facilities.
“This is an extension of the senior housing campus, and it will provide a continuum of care for the seniors living in the community,” Klatt told the commissioners. “It continues the legacy the Sisters have started here.”
Understanding the “Conduit” Financing
A point of discussion during the public hearing was the nature of the bonds. While the county is technically the issuer, officials explained that Codington County is acting solely as a “conduit.” This means the county facilitates the loan’s tax-exempt status, but the financial risk falls entirely on the nonprofit and the lending bank.
Counsel clarified that the bonds do not count against the county’s constitutional debt limit, nor do they put local taxpayers at risk.
“It is absolutely not a debt of the county,” counsel explained. “Rating agencies and the market understand that the county is out of it; it’s a commercial loan between the nonprofit and the bank.”
Economic and Social Impact
For the Sisters of the monastery, the project represents a way to secure the future of their land while filling a vital community need. Sister Barb Younger spoke about realizing how much the project would mean to the local economy and the people being served.
“When the Sisters decided to intentionally develop our land, we had no idea exactly what an impact it would have,” Sister Barb said. “Housing and care go hand-in-hand. This helps that overall plan... we are excited to be part of that solution and to drive an economic construction engine in Codington County.”
The Commissioners approved the resolutions unanimously.