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Council Approves New Incentive Program to Boost Infill Housing and Redevelopment

Notepad labeled "Incentive Plan" with money drawing, on table with calculator, papers, clips. Text: Council approves housing program.

Northeast Radio SD News – Watertown, SD - The Watertown City Council approved Resolution 26‑17, establishing a Special Disposal Incentive Program aimed at encouraging infill housing and redevelopment by offering a 50% credit on landfill disposal fees toward a future building permit.


City Manager Alan Stager said the program is designed to spark redevelopment activity that has lagged behind other housing sectors.


“The one area we really have not seen any traction in is the redevelopment of housing in our community, including infill housing,” Stager said. “This program is our attempt to incentivize some people to take action in 2026 to develop housing units that ordinarily are not being developed.”

Under the program:

·         A property owner demolishes an existing structure

·         Pays landfill disposal fees at $60 per ton

·         Receives a credit equal to 50% of those fees

·         The credit is applied to a new building permit issued within 18 months


Stager emphasized that the credit is nonrefundable and tied to actual redevelopment.

“We want some assurance that a house is actually going to be built,” he said.

Councilman Brent Mohrmann thanked staff for moving quickly.


“I had a developer reach out six or eight weeks ago wondering if we had anything like this,” Brent Mohrmann said. “I appreciate that this came together in time to help him with his project.”


Councilman Michael Heuer praised the program’s focus on infill.


“This is very progressive for Watertown,” Heuer said. “Anytime we can incentivize infill, it helps us out — we’re not putting in new roads or new utility lines.”


The resolution passed unanimously.


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