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Commission Approves Annexation for Future Housing and Interim Gravel Operations (Parcel 2)

Aerial parcel map near I-29 with highlighted lots; orange banner on annexation for housing and gravel operations

Northeast Radio SD News – Watertown, SD - The Watertown Planning Commission unanimously approved the annexation and zoning of a 41.06-acre parcel designed to act as an interim material stockpile site before its eventual transition into a residential neighborhood.


The applicant, J&J Land Sales, LLC, petitioned to annex Parcel 2—legally described as the North Half of the Northeast Quarter of Section 33, less surrounding additions—into the city limits. The commission voted 7-0 to advance Resolution No. 2026-24 for annexation and Ordinance No. 2026-24 to zone the property as an A-1 Agricultural District.


Representing J&J Land Sales, Colin Paulsen clarified the long-term vision for the property.

Parcel two will be more housing in the not-too-distant future,” Paulsen stated.


When asked by Commissioner Todd Kays on a specific timeline—“When you say not too distant future, less than 10 years?”—Paulsen replied, “Yes.”


Commissioner Rhonda Dargatz Johnson also questioned the developer’s infrastructure commitments, specifically asking when 3rd Avenue would be paved. Paulsen

confirmed, “We are paving about a half-mile stretch of 3rd Avenue this year.”

The board clarified that no active mining is currently happening on Parcel 2, only material stockpiling. However, Commissioner Bill Speier pointed out past enforcement issues regarding unmanaged dirt stockpiles in nearby developments under county jurisdiction. City staff noted that upon annexation into the city limits, the city’s strict grading permits and stabilization ordinances would take effect over those stockpiles, providing better local oversight.


Commissioner Kays expressed backing for the move before casting his vote.


I wholeheartedly support the motion,” Kays remarked. “It comports with other Supreme Court decisions in this state of this having a substantial contiguous boundary to the city of Watertown.

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