Watertown City Council Approves $90K Grant for Downtown Revitalization Effort.
- Steve Jurrens
- 18 hours ago
- 4 min read
Northeast Radio SD News - Watertown, SD - In a landmark decision that pitted long-term community vision against immediate fiscal caution, the Watertown City Council voted Monday night to approve a $90,000 funding request for the newly formed Downtown Watertown Collective (DWC).
The funds, distributed as $30,000 annually over three years, are earmarked to establish a dedicated downtown coordinator position—a goal local leaders say has been a decade in the making.
The approval followed a sharp debate over the process’s speed and a failed motion to defer the vote, ultimately establishing a new precedent for how the city handles third-party funding.
A “Front Porch” Strategy
The presentation was led by DWC representatives Elicia Holien and Megan Olson, who framed the downtown as the city’s “front porch” and “living room.” Citing the community’s H2O-2050 strategic plan, they reasoned that a vibrant core is essential for Watertown to reach its goal of 30,000 residents by 2035.
“Walkable downtowns improve the quality of life, which helps cities attract and retain workforce talent,” Holien testified. “Resilient cities invest in their downtowns... for every $1.00 invested publicly, it often leverages $10 to $15 in private investment.”
Holien noted that similar coordinator positions were discussed as far back as a 2016 planning charrette. “This has been discussed for 10 years downtown,” she said. “It’s time to set a new set of goals.”
Voices from the Heart of the City
The meeting saw a groundswell of support from a diverse coalition of business owners who spoke during public testimony, emphasizing that the “momentum” in the downtown area is at an all-time high.
· Liam Culhane, representing the Watertown Area Community Foundation and his own business, noted the influx of young families investing in the core. “You’re looking at a bunch of fairly young folks that have young families... and they chose to invest in our downtown. That’s really, really special.”
· Amanda Culhane, Co-chair of H2O-2050, likened the downtown to the community’s “living room,” noting that a thriving center benefits residents from the north side to the lake.
· Jill Makepeace, of Makepeace Jewelers, spoke to the shift in energy. “I haven’t seen this momentum ever. We’re all in it for the long haul. We’re the heart of the city.”
· Donus Roberts, a long-time educator and business owner, stressed the need for local leadership. “If we don’t do something to try to give energy to downtown... it will continue to have attrition. We have to reverse that.”
· Jamie Mack, Executive Director of the Goss Opera House, highlighted the synergy of recent events. “Rising tides raise all ships... please don’t consider this an expense. Consider it an investment.”
Other entrepreneurs, including Olivia Orth of Gather Coffee Co., Michelle Wadsworth of AMJ Style, Josh Weyh of Watertown Mercantile, and Darin Shelton of Bulldog Branding, shared stories of collaboration, customers from as far away as Europe, upcoming expansion plans, and upcoming events.
The “Accountable Grant” Precedent
Mayor Ried Holien threw his full weight behind the proposal but introduced a significant notice: a Memorandum of Understanding (MOU) that redefines the city’s relationship with outside agencies.
“We are going to stop calling them donations. We are going to call them accountable grants,” Mayor Holien declared. “We have never asked for accountability in the past to any outside agency... I apologize to the Downtown Collective, but you’re the first one to come up and ask.”
Under the MOU, the DWC must:
· Host four “signature” major events annually.
· Maintain financial records open to city inspection.
· Provide an annual impact report.
· Review outcomes annually to confirm continued funding for the following year.
Fiscal Concerns and “The Elephant in the Room”
Despite the momentum, Councilman Brent Mohrmann and Councilman Lynn Jurrens voiced strong reservations. Mohrmann pointed out that the proposed $50,000 salary for the coordinator—a figure from the DWC’s preliminary budget—exceeds the pay of many current city employees.
“At what point does this animal that we continue to give money to... when is it going to be satisfied?” Mohrmann asked, citing an overview of emails he received from concerned citizens.
Councilman Jurrens expressed discomfort with the short notice, having only received the proposal on the prior Thursday. “Learning about this at the last minute... I believe we should table this for two weeks,” Jurrens said. “I’m just going to call out the elephant in the room... the organizations that should have been doing this for the last 33 years—where were they?”
A Rising Tide
Supporters on the council, including Councilman Doug Allen, Councilman Dan Schutte, and Councilman Michael Heuer, argued that the risk of inaction was higher than the fiscal risk of the grant. Heuer, citing his military and arts backgrounds, emphasized that while the city often funds studies, it sometimes fails to execute them.
“This is a way to think differently,” Heuer said. “Yeah, it involves a little risk... but nothing is gained if you never take risks.”
Councilman Schutte echoed the optimism, noting the “leadership energy” and momentum in the room. “The majority of the weight of these questions have been answered tonight,” Schutte said, explaining his vote against deferring the decision.
Mayor Holien concluded by referencing the success of Sioux Falls’ downtown revitalization. “I guarantee you the Empire Mall is not complaining right now... investment in downtown has paid dividends for the entire community.”
Final Vote
A motion by Councilman Jurrens to defer action failed. The original motion to approve the $30,000 annual grant passed with a majority. The DWC now moves forward with a $30,000 match already secured from the Watertown Community Foundation.
As Megan Olson told the council, “You will not see the whites of my eyes coming here after 2029, saying we were so close. If this model cannot stand alone... then it didn’t have the merit we feel it has.”