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Commission Advances $14.7M Oaks II Affordable Housing Project

Aerial view of The Oaks Apartments with zoning map, project details, and text: "Commission Advances $14.7M Oaks II Project."
Commission Approves $14.7M Oaks II Affordable Housing Project in South Dakota, Expanding The Oaks Apartment Development.

Northeast Radio SD News - Watertown, SD - The Watertown Planning Commission has recommended approval of Tax Increment Financing (TIF) District #21, clearing the way for the second phase of “The Oaks” apartment complex.


The project, proposed as “The Oaks II” by developer The Oaks II, LLC, will consist of 72 multifamily units located at Lot 2, Stencil 1st Addition, directly east of the existing Phase I complex. Classified as an “Affordable Housing” TIF, the development will restrict rents to 80% of the Area Median Income (AMI) or lower for at least 5 years.

Zoning change map shows colorful areas with labels. Blue arrow points to project location. Legend details color codes, marking current R3 zone.
Zoning Change Map indicating project location, currently zoned as R3, with surrounding areas color-coded according to zoning designations.

Community Development Manager Brandi Hanten explained that the project’s total costs are estimated at $14,768,609, but the developer is only requesting $953,564 in TIF assistance for eligible infrastructure costs.


“The project would not occur without the assistance provided through the tax increment financing,” City Manager Alan Stager noted in his background report.

Aerial view of The Oaks Apartments Development layout with blue location markers. Text lists related projects in South Dakota on the right.
Preliminary layout of The Oaks Apartments Development, highlighting The Oaks Phase 1 and The Oaks II in Watertown, South Dakota. The development is part of a series of affordable housing projects by The Oaks II, LLC, a subsidiary of the Stencil Group.

During the meeting, Tobin Morris of Colliers Securities emphasized the developer’s commitment to the region. “Stenzel in particular, I think it’s great to see the amount of capital that they’ve deployed... you have a very capitalized person, you have a proven developer with their track record,” Morris told the commission.


The commission voted unanimously to recommend the project boundaries and project plan to the City Council.


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