Watertown Planning Commission Advances $4.4M TIF for Housing
- Steve Jurrens
- 5 days ago
- 2 min read
Northeast Radio SD News – Watertown, SD - The Watertown Planning Commission gave its unanimous backing to a tax increment financing (TIF) district designed to bring 75 new single-family homes to the city.
Resolution No. 2026-26 establishes the boundaries and project plan for Tax Increment Financing District Number Twenty-Four, known as “Prairie Haven Phase II”. High Five Development, LLC, is spearheading the development.
Financial Breakdown
· Total Investment: The project is expected to inject $22 million to $24 million of new residential investment into the community.
· Average Home Price: The homes are projected to have an average price point of $310,000.
· TIF Request: Transforming the vacant agricultural land requires significant upfront public infrastructure, prompting the developer to request $4,412,618.00 in TIF-eligible reimbursements.
The TIF is classified as an Affordable Housing District, meaning the homes must be listed at or below the South Dakota Housing Development Authority’s First-Time Homebuyer Program purchase price limits.
During the public hearing, Tracy Stein, representing the developer, addressed the commission regarding the financial realities of the project.
“The purpose of the TIF for this phase is to just bridge that development gap,” Stein stated. “Those development costs are approximately $58,835 per lot... creating a development gap of approximately $30,000. That affects affordability.”
City Manager Alan Stager reminded the commission of their specific duties when evaluating TIF proposals, noting, “Your role in the TIF process is first of all to look at the suitability of the location, secondly take a look at the numbers in the plan... and then finally look at the economics.” Stager emphasized that the developer assumes all risk if the district fails to generate the necessary tax increments.
Commissioner Randy Tupper praised the developers for their continued investment in Watertown and their success with the first phase of Prairie Haven.
“I drive out there every now and then, and it just amazes me what you guys have got done in a few years,” Tupper said. “I just want to give you a personal thank you for what you guys have invested in the city of Watertown.”
The measure passed 7-0 and will head to the City Council for final approval.
