Watertown City Council Approves Street Closure Extension for Delayed AirStay Hotel Project Amid Neighbor Concerns
- Steve Jurrens
- 4 days ago
- 3 min read
Northeast Radio SD News – Watertown, SD - At a special meeting on June 8, 2026, the Watertown City Council unanimously approved an extension of a right-of-way permit, allowing continued street closures for the delayed AirStay hotel project at the site of the former City Hall.
The decision came after city officials heard testimony from the developer’s legal counsel detailing construction setbacks, as well as from neighboring business owners frustrated by a lack of communication and traffic safety issues.
Resolution 26-22 extends Occupy Right-of-Way Permit M-25-20, which allows for the closure of 2nd Street NE to accommodate construction activities. The project, which involves redeveloping the former City Hall building into a facility featuring “full kitchenettes in every hotel room,” has fallen behind schedule.
City Manager Alan Stager presented the resolution, emphasizing that the city is seeking cooperation throughout the remainder of the project. “The project has been vetted not only by city staff but by the developer and the various contractors and subcontractors,” Steger stated. He noted that while two lanes of 2nd Street NE were recently opened, the completion of the project will absolutely require closing the street again.
To address community concerns, the resolution includes four strict conditions for AirStay Watertown, LLC:
· The developer must submit an updated construction schedule to the City every two weeks.
· 2nd Street NE must be maintained as two-lane traffic whenever reasonably possible and when requested by the City.
· All requests for full public right-of-way closures must be communicated to the City, emergency personnel, and neighboring businesses at least 48 hours in advance.
· The developer must repair and maintain all adjacent right-of-way to a condition equal to or better than its preconstruction state.
Construction Delays Explained
Kasey Olivier, an attorney representing the Walford family and Prairie Pro LLC, detailed the reasons behind the project’s delays. Olivier noted that the family, which has been in the community and in construction and development for 77 years, prioritized hiring local workers for asbestos removal in the old City Hall building, which took longer than outsourcing the work. Furthermore, construction was halted when geotechnical engineers discovered unstable soil and the original foundation of the historic Franklin Hotel.
Despite these setbacks, Olivier shared an updated timeline, aiming for project completion by December 2026. She requested full street closures from July 5 through September 29 to accommodate large equipment, noting that precast concrete deliveries begin right after the July 4th holiday to accommodate Gamber’s request regarding the busy Independence Day holiday shopping. “The crane is going to be about the width of the road,” Olivier explained to the council.
Neighboring Businesses Voice Safety Concerns
The street closures have caused friction with adjacent property owners. Jeff Gamber, representing County Fair Foods, testified that while his business supports the development, poor communication has been their primary issue.
“We’d like to have a place at the table with any upcoming meetings or at least some kind of communication,” Gamber said.
Gamber highlighted a severe public safety hazard created by the barricades, which have forced diverted traffic through his store’s private parking lot. He expressed fear for his customers, stating, “I can see a little lady walking out there with her gallon of milk... get hit.”
In response, Stager acknowledged the challenges of constantly opening and closing the site, stating, “I don’t think it’s practical to open up the construction site for short periods of time.” However, Stager assured the council and the public that the city has the authority to enforce safety measures, such as requiring guardrails, to mitigate risks.
Following the discussion, the council voted unanimously to approve Resolution 26-22.
