Watertown City Council to Consider Funding for New Downtown Revitalization Initiative
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Watertown City Council to Consider Funding for New Downtown Revitalization Initiative

Aerial view of Watertown at dusk with text about city council's consideration for downtown revitalization. Logos for Downtown Watertown and Northeast Radio SD visible.

Northeast Radio SD News - Watertown, SD - The Watertown City Council is set to meet this Monday, February 2, 2026, to discuss an investment in the city’s core. On the agenda is a formal funding request from the Downtown Watertown Collective, a newly established organization seeking to transition downtown revitalization from a volunteer effort to a professionally managed program.


The Proposal: A Three-Year Commitment

The Downtown Watertown Collective, a 501(c)(6) nonprofit formed in late 2025, is requesting a total of $90,000 spread over three years. If approved, the city would contribute $30,000 annually to support several key initiatives:


·        Establishment of a Downtown Coordinator: A primary goal for the first quarter of 2026 is to hire a dedicated professional to manage marketing, coordinate events, and serve as a liaison between business owners and the City.

·        Signature Events: The funding would support popular community gatherings such as Pumpkin Palooza and Deck the Downtown.

·        Coordinated Marketing: The group plans to launch “Shop Downtown” campaigns to increase foot traffic and local sales tax revenue.


Financial Strategy

City Manager Alan Stager has recommended that the initial $30,000 contribution for 2026 be sourced from the unrestricted fund balance in the BBB Fund. The Collective has noted that City funds will not be the sole source of revenue; the program will also be sustained through membership dues, sponsorships, and event-based income.


Why Now?

The proposal aligns with the H2O-50 strategic plan, which specifically called for the return of a downtown advisory board and the creation of a full-time position to oversee development. Supporters of the Collective argue that a vibrant downtown is a “proven driver of economic development,” noting that downtown districts often generate more economic activity per square foot than big-box corridors.


What’s Next?

The City Council will review the request during the Monday night meeting. If the motion is approved, a budget supplement will be presented at a future meeting to formally allocate the funds.


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