Watertown City Council to Consider Hotel Rezoning Near Highway 81
Northeast Radio SD News – Watertown, SD - A proposal to rezone a long‑established hotel property on the city’s southeast side will come before the Watertown City Council Monday night for its first reading.
Ordinance No. 26‑24 would amend the city’s zoning map to reclassify Lot 6 of the Jurrens‑Shulte Industrial Addition, located at 503 14th Avenue SE, from I‑1 Light Industrial District to C‑3 Highway Commercial District.
Existing Hotel Use Is Legal but Nonconforming
The property is currently developed with a hotel/motel that has operated at the site since at least 1986. Under today’s zoning rules, hotel/motel uses in the I‑1 district require a conditional use permit — but none was ever issued for this property. Instead, a 1986 variance allowed an addition on the west side of the building with a reduced 20‑foot front yard setback.
Rezoning the parcel to C‑3 would bring the hotel into full compliance with current zoning regulations, as hotel/motel uses are permitted by right in the Highway Commercial District.
Meets C‑3 Requirements
The parcel contains approximately 78,091 square feet, well above the 20,000‑square‑foot minimum required for C‑3 zoning. The site has double frontage along both US Highway 81 and 14th Avenue SE, with access from 14th Avenue.
Under the C‑3 setback rules, the previously approved variance would no longer be needed — the secondary front yard setback may be reduced to the 10‑foot side yard requirement.
Intended for Future Hospitality Expansion
According to the agenda item, the property owners are seeking the rezoning to support future expansion of hospitality‑related services and to align the zoning with the existing use. Staff noted the area’s commercial development pattern, proximity to Highway 81, and consistency with the city’s Comprehensive Land Use Plan.
Planning Commission Recommendation
The Planning Commission unanimously recommended approval at its July 9, 2026 meeting, voting 7‑0.
Additional Facts
· Adjacent zoning on all sides is primarily I‑1 Light Industrial, with some C‑3 to the east.
· The property lies within the 100‑year floodplain.
Next Steps
Monday’s meeting will serve as the first reading. No council action will be taken until the second reading on August 3, 2026.
