Watertown Planning Commission Approves New Campus and Student Housing Zoning Districts
- Steve Jurrens

- Jul 9
- 5 min read

Northeast Radio SD News – Watertown, SD - In a landmark meeting Thursday evening, the Watertown Planning Commission voted to recommend approval of four interconnected zoning ordinance amendments that would reshape how the city regulates large institutional campuses and student housing. The actions—Resolutions 2026‑28, 2026‑29, 2026‑30, and 2026‑31—now move to the Watertown City Council for final consideration.
The proposals establish two entirely new zoning districts: the Campus District (CD) and the R‑3S Congregate Living Residential District, along with updates to the city’s district regulations and definitions. Together, they represent one of the most comprehensive zoning updates in recent years, aimed at supporting the continued growth of Lake Area Technical College (LATC) and Prairie Lakes Healthcare System, while addressing the city’s increasing demand for student housing.
The agenda documents describe the intent:
“The Comprehensive Land Use Plan has outlined that the City should implement a Campus District ‘to allow for multiple mixed uses provided a plan has been approved…’”
Community Development Manager Brandi Hanten delivered a detailed presentation, explaining the purpose, structure, and implications of each new district.
Resolution 2026‑28: Creation of the Campus District (CD)
The first resolution creates Chapter 21.33 CD Campus District, a zoning district designed specifically for large institutional campuses whose land‑use needs do not fit neatly into existing zoning categories.
The agenda document states:
“This district is intended for large institutional uses related to health/medical, or educational purposes that otherwise may not fit into other zoning districts because of their specialized land use needs…”
Why the Campus District Is Needed
Hanten explained that LATC and Prairie Lakes frequently require conditional use permits for routine expansions because their operations do not align with conventional zoning districts. The Campus District is intended to streamline development, reduce administrative hurdles, and ensure compatibility with surrounding neighborhoods.
“This is really going to make development efficient,” Hanten told commissioners. “It should encompass their needs while also protecting adjacent residential properties.”
Minimum Size Requirement: 10 Acres
One of the most significant features is the minimum campus size requirement:
“No area shall be eligible to be zoned a Campus District unless it contains ten (10) acres of adjacent parcels.”
This requirement ensures the district is used only for substantial institutional campuses—not small clinics or isolated commercial parcels.
Hanten confirmed that both LATC and Prairie Lakes exceed the 10‑acre threshold. LATC’s main parcel alone is 11.9 acres, and Prairie Lakes’ main parcel is 12.4 acres, not including additional properties they own.
Additional Parcels Within 300 Feet
The ordinance allows institutions to include additional parcels within 300 feet of the main campus, provided each parcel is at least 20,000 square feet.
Commissioner Todd Kays asked whether institutions could rezone single‑family homes they acquire within that radius. Hanten confirmed they could—but those homes would become legal nonconforming uses.
“If that house were to ever go away, it couldn’t go back,” she said.
Permitted Uses
The Campus District includes one of the broadest permitted‑use lists in the city’s zoning code, including:
· Hospitals
· Clinics
· Educational institutions
· Assisted living centers
· Nursing homes
· Labs and technical program buildings
· Student services and administrative offices
· Congregate student housing
· Fraternities and sororities
· Communal living
· Daycare facilities
· Mixed‑use structures
· Theaters
· Convention centers
· Religious institutions
· Recreational uses (public and private)
· Parking ramps
· Government buildings
· Licensed group homes (up to four residents)
Height, Setbacks, and Design Standards
The Campus District allows a maximum height of 60 feet, matching the city’s commercial height limit.
Setbacks include:
· 25 feet front yard
· 20 feet side/rear when abutting residential
· 10 feet side/rear when abutting non‑residential
Exterior walls within 250 feet of residential zoning must use high‑quality materials such as brick, stone, tile, precast concrete, stucco, architectural metal panels, glass, or decorative block.
Parking
The Campus District has no minimum parking requirement, allowing institutions to regulate parking based on their own needs.
Commission Vote
Resolution 2026‑28 passed unanimously.
Resolution 2026‑29: Creation of the R‑3S Congregate Living Residential District
The second resolution creates Chapter 21.21 R‑3S Congregate Living Residential District, a district exclusively for congregate student housing—off‑campus dormitory‑style housing intended to support LATC’s growth.
The agenda document states:
“Congregate student housing is the only use in the district and is tailored to be off‑campus dormitories for transient students.”
Density Based on Beds, Not Dwelling Units
The R‑3S district uses a unique density formula:
“Density for student housing shall be determined by bedrooms, not dwelling units.”
Each bedroom must be supported by at least 250 square feet of gross floor area, including sleeping rooms, corridors, bathrooms, and shared common areas.
The agenda includes a detailed example showing an 8‑bed building with 20,800 sq. ft. of gross floor area, resulting in 2,600 sq. ft. per bed—far above the minimum requirement.
Parking Requirements
· 1 parking stall per bedroom
· 1 bicycle space per 10 bedrooms
· Shared parking agreements allowed with review by Community Development
Height & Placement
· Minimum lot area: 20,000 sq. ft.
· Front yard: 25 ft.
· Side yard: 10 ft.
· Rear yard: 25 ft.
· Maximum height: 60 ft.
Building Materials
Exterior walls within 25 feet of residential zoning must use high‑quality materials similar to those required in the Campus District.
Commission Debate: Enforcement, Proximity, and Neighborhood Compatibility
Commissioner Rhonda Dargatz Johnson raised concerns about enforcement:
“We can’t police that,” she said. “I, as a landlord, just want it full.”
City Attorney Lisa Carrico responded that enforcement would be complaint‑based, with property owners required to prove occupants are students if a violation is alleged.
Proximity to LATC
Commissioner Todd Kays argued that congregate housing should be located near LATC:
“I think congregate housing… should be in close proximity to the school.”
Hanten noted that the subcommittee had considered an overlay district but ultimately recommended a standalone zoning district.
Definition of Family
Commissioners agreed to amend the resolution to exempt the definition of “family”, allowing more than three unrelated adults to reside in congregate housing.
Resolution 2026‑29 passed 5–2, with Bill Speier and Rhonda Dargatz Johnson opposed.
Resolution 2026‑30: Updates to District Regulations
The third resolution updates Chapter 21.10 Summary of District Regulations to include the new CD and R‑3S districts.
The updates adjust density tables, setbacks, height limits, and parking requirements to reflect the new districts.
Commissioner Julia Tate identified a clerical error in the resolution numbering, which staff agreed to correct.
Resolution 2026‑30 passed unanimously.
Resolution 2026‑31: New Definitions Added to the Zoning Code
The fourth resolution adds new definitions to Chapter 21.90, including:
· Congregate Student Housing
· Gross Floor Area
· Mixed Use Structure
· Educational Institution
The definition of congregate student housing states:
“A building or portion thereof used as group living quarters for students enrolled at an educational institution where individual sleeping rooms are provided without full kitchens…”
Resolution 2026‑31 passed unanimously.
What Happens Next
All four resolutions now move to the Watertown City Council, which will consider them at an upcoming meeting. If adopted, the new Campus District and R‑3S Congregate Living Residential District will become part of the city’s zoning ordinance, enabling LATC, Prairie Lakes Healthcare System, and private developers to pursue new campus‑scale projects and student housing developments.
Chairman Liam Culhane praised staff for the depth of work involved:
“It’s very forward‑looking, very interesting. Looks like it’s very well thought out and planned.”
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