Watertown Considers New “Demo-to-Build” Incentive to Tackle Blight
- Steve Jurrens
- May 3
- 2 min read
Northeast Radio SD News – Watertown, SD - Tearing down a building for the benefit of redevelopment in Watertown might soon get a little easier on the wallet. On Monday night, the Watertown City Council will review Resolution No. 26-17, a proposal to launch a Special Disposal Incentive Program to turn blighted neighborhood spots into new residential foundations.
The program, spearheaded by City Manager Alan Stager, aims to lower the financial hurdles that often stall redevelopment projects. Currently, the high cost of hauling old structures to the landfill can deter property owners looking to reinvest.
How the Program Works
If approved, the initiative would serve as a building-permit credit for developers and homeowners. Here are the nuts and bolts of the proposal:
· The 50% Credit: The City would provide a credit equal to 50% of verified landfill disposal costs.
· Up-Front Payment: Property owners must still pay landfill fees in full at the time of disposal.
· Residential Focus: The credit is applied only at the time a new residential building permit is issued for that same parcel.
· The Cap: Incentives are capped at $5,000 per project and cannot exceed the total cost of the building permit fee.
“The City continues to encourage redevelopment and reinvestment in existing properties... this program provides support for redevelopment of residential property,” the agenda memo states.
The Fine Print
To keep the program streamlined and focused, the staff has included several safeguards:
· Time Limit: The new building permit must be issued within 18 months of the original demolition.
· Same Dirt: The credit is tied strictly to the parcel where the demolition occurred and is non-transferable.
· No Cash Value: You can’t “cash out” the credit; if it isn’t used for a permit, it’s forfeited.
· Proof Required: Applicants must provide original landfill receipts showing the location, date, tonnage, and fees paid.
While the City expects a slight reduction in building permit revenue, officials reason that the long-term benefits outweigh the short-term costs. By encouraging the removal of “obsolete or deteriorated structures,” the City hopes to boost the long-term tax base and reduce neighborhood blight.
Notably, the program has no impact on landfill revenue, as all fees are still collected in full up front.
What’s Next?
The program is being proposed as a pilot project that would expire at the end of 2026. If it proves successful in sparking new construction, the council may consider making it a permanent part of the City Code.
The City Council meets Monday night, May 4, 2026, at 5:30 p.m. Residents interested in the program or other city business are encouraged to attend.
