Watertown City Council Approves Landfill Fee Cap to Advance Downtown Hotel Project
- Steve Jurrens
- Oct 7
- 2 min read
Northeast Radio SD News - Watertown, SD - The Watertown City Council voted unanimously Monday night to approve an amendment to the real estate purchase agreement for the former City Hall site, providing financial assistance to the developer to offset unexpectedly high costs related to asbestos removal.
The motion, which passed 7-0, grants the developer, AirStay Watertown LLC, a cap on landfill disposal fees for the demolition debris.
City Manager Alan Stager presented the amendment, explaining that the developer found a "substantially larger amount of asbestos" in the building than initially anticipated, which significantly increased the project's costs. To ensure the project remains viable and avoid a delay of approximately six months that would have resulted from the city handling the abatement, the City Council agreed to assist via a non-cash method.
The agreement caps the landfill fees for the material at $50,000. Mr. Stager noted that the estimated normal disposal fees would have been around $75,000, meaning the city is providing roughly $25,000 in assistance through the fee waiver to cover the abatement cost specifically.
During the discussion, Councilman Heuer inquired about the nature of the debris. Mr. Stager explained that the material—primarily concrete from the demolition—is considered a "desirable fill" because, while heavy (and charged by the ton), it consumes less space in the landfill compared to typical municipal waste.
Councilman Heuer also sought clarification on the developer's commitment should the project be halted. Mr. Stager confirmed that under the agreement, the developer must execute the abatement up to the point of suspension and secure the site, preventing it from being left "half abated," which would be unsafe.
In addition to the financial incentive, the amendment includes two minor changes:
1. The closing date for the property sale is deferred to no later than October 31st.
2. The development bond purchased by the developer will be held in the name of their related company, the construction firm that will be performing the work.
Following a motion made by Councilman Peters and seconded by Councilman Mohrmann, Mayor Holien voiced his support before the vote, emphasizing that the incentive is valuable to the developer while costing taxpayers nothing, as the city is essentially utilizing space in its own landfill. The Mayor stated that the return on the development for the community's downtown is potentially "fantastic."
The vote passed with all seven Council members—Allen, Heuer, Holien, Mohrmann, Jurrens, Peters, and Schutte—voting in favor.
