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Watertown Council Advances Strategic Growth with New Housing and Commercial Zoning

Map showing zoning changes in Watertown, SD. Area to rezone from C-2 to R-2. Includes streets, colored zones, and city logo.
Watertown Council Proposes Rezoning for Enhanced Housing Development: Transition from Commercial (C-2) to Residential (R-2) to Facilitate New Growth.

Northeast Radio SD News – Watertown, SD - The Watertown City Council held the first readings of two ordinances designed to realign land use with the city’s long-term growth objectives.


Led by presentations from Community Development Manager Brandi Hanten, the council reviewed a residential “down-zoning” in the Prairie Hills area and a 10-acre commercial annexation on the city’s edge.


Prairie Hills: From Commercial to Multi-Family Residential

The first item, Ordinance No. 26-09, involves rezoning a 1.02-acre portion of the Prairie Hills Development First Edition. The property, currently designated C2 (Local Commercial), is slated to be designated R2 (Single-Family Attached Residential).

Brandi Hanten explained that the shift is a response to the city’s comprehensive land use plan, which identifies the area as better suited for residential growth. The rezone will allow the developer, Arnold Construction, Inc., to replat the land into three lots for multi-family housing.


During the council discussion, Hanten clarified the specific types of housing the new designation would permit:


R2 allows for duplexes, triplexes, or fourplexes by permitted use,” Hanten told the council.


When asked about the difference between the current commercial zone and the proposed residential one, Hanten noted that the commercial designation was intended for much more intensive business use.


C2—it’s your kind of professional office, your retail, your neighborhood retail establishment... professional office service type commercial businesses,” Hanten explained.


Berven’s Addition: Expanding the Highway Commercial Footprint

The second ordinance, No. 26-10, targets commercial expansion by annexing Lot 1 of Berven’s Addition. The 10.01-acre property, currently located in the county, sits adjacent to the city limits along US Highway 212/9th Avenue SE.


The petitioner, Greater Plains Company, is seeking to zone the land as C3 (Highway Commercial). This designation is consistent with the surrounding property, much of which is already zoned for light industrial or commercial use.


Hanten noted that while the land is currently vacant, the annexation is a proactive step toward its eventual use.


Petitioner is in the process of marketing the property for future development,” Hanten stated.


As part of the annexation process, the property will be subject to a trunk sewer cost assessment of $3,135.60, payable before the issuance of any building permits. Hanten also confirmed that the site is not within a regulated floodplain and is not located in the Sioux Rural Water Territory.


Both ordinances were recommended for approval by the Planning Commission with a unanimous 6-0 vote on April 9th. While the council took no official action during the first readings on Monday, both items are scheduled for a second reading and public hearing on Monday, May 4, 2026.


If approved, the new zoning designations will take effect on Friday, May 29, 2026.

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