Watertown City Council Finalizes Full-Service Restaurant License Structure, Paves Way for Investment

Steve Jurrens
5 days ago
2 min read

Northeast Radio SD News - Watertown, SD - The Watertown City Council has taken a decisive step to support new investment and restaurant development by approving an amended ordinance revising the structure for on-sale licenses for full-service restaurants.

The measure was approved in a 5-1 vote to amend the ordinance, setting it up for a final ratification reading next week. Councilman Michael Heuer recused himself from the vote.

During the second reading of the ordinance, the Council debated two key amendments presented by staff:

1. Defining the Restaurant: The Council voted to strike language that would have prohibited full-service restaurants from offering "recreational facilities, gambling, or mind-altering consumables" (such as THC-infused drinks). This revision maintains a focus on the pure statutory definition of a restaurant as found in state law, removing what some members felt were unnecessary restrictions on business models.

2. Setting the License Fee: The ordinance was amended to set a fixed license fee of $50,000. This change replaces antiquated language regarding fair market value, establishing a clear, upfront cost for interested investors.

Councilman Brent Mohrmann was the sole dissenting vote on the initial motion, while Councilman Schutte cast the single "Nay" vote on the final amendment.

A significant portion of the debate centered on the inclusion of THC-infused beverages, often referred to as "mind-altering consumables."

Council members, including Councilman Heuer and Councilman Schutte, raised concerns about the intoxicating nature of these drinks and the lack of state regulation regarding the age of purchase. City staff and Police Chief Tumi clarified that the State of South Dakota does not currently classify these drinks as alcohol, which prevents the City from regulating their sale through alcohol-related ordinances. The amendment to strike the prohibitory language ultimately carried.

To expedite the process for two businesses reportedly waiting to finalize investment in the city, Councilman Jurrens requested that the Council consider holding a special meeting on Monday, October 27th, for the final reading and vote. This suggestion received positive support from fellow council members.

The successful amendment and anticipated final passage next week are expected to immediately open the door for new full-service restaurant investments in the Watertown area.