Watertown City Council Finalizes Restaurant Liquor License Ordinance to Support New Dining Options
- Steve Jurrens
- Oct 27
- 2 min read
Northeast Radio SD News - Watertown, SD - The Watertown City Council unanimously approved the second reading of an ordinance this week, finalizing changes to Chapter 2.02 of the revised ordinances regarding on-sale licenses for full-service restaurants. The approval establishes a new, restricted liquor license category designed to attract new dining establishments to the city.
City Manager Alan Stager presented the ordinance, reminding the Council of the "key tenants" that distinguish this license from a traditional full liquor license…
The ordinance mandates that the license holder:
· Must derive at least 60 percent of revenues from the sale of food and no more than 40 percent from the sale of alcoholic beverages.
· Will pay an annual fee of $50,000, which is now formally enshrined in the ordinance.
Council Emphasizes Restrictions and Economic Benefits
The Council held a final discussion, noting that the new classification strikes a balance between community growth and the value of existing full liquor licenses.
Mayor Holien noted his initial hesitation but ultimately supported the measure due to the established limitations. "It took me a long time personally to get to the point where I can wrap my head around this one and vote for it," he said. "But with the restrictions on it, I can get behind it because I think those restrictions effectively create a separate classification of license that respects, if not protects, interests of those who own a full liquor license."
The Mayor also highlighted the potential for increased tourism and spending. "There are a lot of people in the Midwest... that will travel quite a distance to just go to a restaurant," he stated, noting that new dining options are "important to the growth of Watertown."
Councilman Lynn Jurrens, who moved to approve the ordinance, acknowledged the concerns expressed by those who feared the potential impact on their businesses. "It was good to hear the other versions on how it could affect their businesses," he said. He stressed that the "guard rails" put in place through the discussions were "absolutely good and needed for this type of a license."
Councilman Jurrens added that the $50,000 fee addresses a license category that has seen zero demand in 16 years, noting that the city could see multiple new operations utilizing the permit. He concluded by expressing hope that new restaurants would help "our downtown will thrive" and utilize some of the city's empty buildings.
Councilman Michael Heuer abstained from the vote, and the others voted unanimously in favor of approving the ordinance.
