Watertown Leadership Addresses Downtown “Growing Pains” Amid Hotel Construction

Watertown Downtown Businesses Remain Open Amid Hotel Construction and Leadership Solutions for "Growing Pains."

Northeast Radio SD News – Watertown, SD - As the concrete foundations of a new downtown hotel begin to take shape on the site of the former City Hall, Watertown city leaders are working to manage the logistical and emotional friction that often accompanies major urban redevelopment.

During a media briefing on Tuesday, City Manager Alan Stager and Deputy Mayor Kyle Peters addressed the ongoing closure of Second Street Northeast, framing the current inconvenience as a necessary step toward long-term municipal prosperity.

The Logistics of a Small Footprint

The primary source of local frustration involves the complete closure of a section of Second Street Northeast to facilitate the hotel’s construction. City Manager Alan Stager noted that while street closures are never popular, they are often unavoidable in dense urban environments. He cited the two-year closure of US Highway 212 as a recent example of a significant disruption the city successfully navigated.

Deputy Mayor Kyle Peters provided technical context for the current closure, explaining that the lot size—approximately 0.2 acres—leaves zero room for on-site equipment staging.

“If you think about what the developer has to do by tearing down old City Hall... and go vertical with a facility... they’re going to need to come onto the street,” Peters explained. “This type of development is unique because of the zero-foot setbacks... staging downtown is difficult”.

Addressing Business Impact: The “County Fair” Access

Much of the public debate has centered on the impact on County Fair, a local business that previously enjoyed four or five points of ingress and egress. Due to the construction, access has been limited to two points.

While acknowledging the frustration voiced by the business and on social media, Stager clarified that the current access meets modern safety and design standards.

“In fact, if that business were to be rebuilt today under current design standards, they would not have the same number of ingress and egress points that they do today,” Stager said. “It’s on a collector street and a major artery street; the maximum we would allow is two. Exactly what they have today”.

Peters noted that access remains available at locations near Downtown Drug and Parkside Place, urging the public to continue supporting local shops despite the detours.

A Shift in Development Philosophy

Peters spoke candidly about the council’s desire to shed a negative reputation regarding business expansion.

“We as the council have worn the tattoo of anti-development for the last few years,” Peters remarked. “So we’re trying to be as flexible as possible to the developers while also trying to strike that balance with the community”.

The Path Forward: Short-Term Pain, Long-Term Gain

The “pain” of progress is likely to continue in small increments. Stager, for example, warned of an upcoming short-term partial closure on First Avenue to facilitate water service hookups for the new facility. However, he emphasized this would not be a full closure and would be coordinated to avoid overlapping with other major disruptions.

Despite the temporary hurdles and the “big hole” currently sitting in the heart of downtown, Stager remains optimistic about the project’s eventual impact.

“I think we’re going to look back at this and we’re going to really forget how long this has seemingly lasted right now because it’s a splash in the pan in the grand scheme of things,” Peters said. “The benefit to these businesses downtown is they’re going to get a facility that’s bringing in new people downtown”.

City Manager Stager echoed this sentiment, suggesting that residents view the detours as a sign of civic health.

“We can do one of two things in our community: We can hang up a sign that says ‘Watertown, South Dakota, closed to the future, closed to development,’ or we can stick together and support our local businesses and work our way through the difficult period... and have a much more prosperous future through the cooperation,” Stager concluded.