Harmony Hill Expansion Moves Forward as Council Navigates Utility “Turf War”

Northeast Radio SD News – Watertown, SD - The Watertown City Council took a major step Monday night toward expanding one of the state’s most significant residential developments, unanimously approving the annexation and rezoning of a new two-acre parcel for the Harmony Hill subdivision. While the move signals continued growth for the city’s south side, it also reignited a long-simmering “turf war” over utility service rights and the ethics of municipal expansion.

A “Government Taking” of Private Business

During the public hearing, Dave Eide, manager of Codington Clark Electric Cooperative. Eide addressed the Council with a blunt assessment of the annexation process, characterizing the shift in utility providers from a cooperative to Watertown Municipal Utilities (WMU) as a “government taking of private business”.

“We spend millions of dollars on infrastructure every year... and if there’s area that’s eventually going to be taken away from us, we don’t want to spend the money on it,” Eide testified. He expressed frustration over a lack of notification, stating that cooperatives often learn about these “takings” after the fact, which he argued leads to “unfair” consequences for the people living in those areas.

Eide presented the Council with three specific requests:

·         Mandatory Notice: That regional cooperatives receive formal notice of all pending annexations.

·         Board Reform: That the city address the election process for the WMU Board, which is currently appointed rather than elected.

·         Service Retention: That Codington Clark be allowed to retain its service territory within the new Harmony Hill Annexation Second Edition.

The Legal and Historical Conflict

The dispute is rooted in a “perpetual” agreement signed nearly 18 years ago, which Eide claimed is currently the subject of intense litigation. According to Aidy, the agreement lacks a termination clause, effectively preventing the cooperative from receiving compensation for lost territory.

“This stuff is not going to end until this is cleared up,” Eide warned, noting that the cooperative has taken the issue to the state legislature two years in a row.

City Attorney Lisa Carrico provided context on the WMU Board’s structure, noting that it was established as a separate entity, voted on by the people. She indicated that shifting to an elected board would likely require either a new public vote or a change to the city’s Home Rule Charter.

“The Largest Single Development in South Dakota”

Despite the utility friction, the Council remained steadfast in its support of the Harmony Hill project. Mayor Ried Holien took a moment to thank the sisters at Harmony Hill for their vision, noting the project’s massive scale.

“I think it’s still one of, if not the largest single development in all of South Dakota,” Holien said. “I am extremely appreciative of the work that is being done and for the growth in Watertown”.

The Council subsequently approved the second reading of Ordinance 26-01, establishing the zoning designation of R1C (Compact Single-Family Residential District) for the property. This designation allows the new parcel to be platted alongside previously annexed land for future residential construction.

Looking Toward Future Cooperation

Community Development Manager Brandi Hanten encouraged the cooperative to remain engaged with the city’s three-mile “joint jurisdiction” growth area to avoid future infrastructure conflicts.

“If you are within the growth area of the city... definitely reach out to learn what our growth pattern is so that you are not making those investments and not having the communication,” Hanton told Eide.

The People's Pulse

Mayor Holien spoke later on Tuesday morning on The People’s Pulse on Northeast Radio SD to address Eide’s comments:

Addressing concerns raised by Codington-Clark Electric, Holien pointed to a 2007 “perpetual agreement” that governs service rights in annexed areas.

“It’s more nuanced than what you can really get to in an open forum comment,” Holien said. “From Codington-Clark’s perspective now, it probably doesn’t make much sense, but there is a contract that exists, and it’s not as easy as just saying, ‘This is unfair.’”