Watertown Planning Commission Recommends $2.1M ‘Affordable Housing’ TIF for Harmony Hill Subdivision
- Steve Jurrens
- 1 day ago
- 2 min read
Northeast Radio SD News – Watertown, SD - The Watertown Planning Commission has unanimously recommended the approval of a Tax Increment Financing (TIF) district designed to bring 40 new affordable single-family homes to the community.
During Thursday’s meeting, the commission formally backed TIF District Number Twenty-Three for the Harmony Hill Annexation Second Addition. The project, developed by SCI Development, LLC, is officially classified as an Affordable Housing TIF.
This state classification requires homes within the subdivision to be priced at or below the South Dakota Housing Development Authority’s First-Time Homebuyer Program limits. Currently, the homes are projected to cost approximately $300,000, bringing much-needed attainable housing to Watertown’s working families.
Financial Breakdown and City Risk
The TIF is structured to help the developer cover the upfront costs of public infrastructure, ensuring the project remains financially viable while keeping home prices affordable.
· The total estimated cost for the development is $12,000,000.
· Total TIF-eligible infrastructure costs are $2,353,692.
· The developer is only requesting $2,105,215 of those eligible costs.
· The TIF will specifically fund street improvements, water distribution, sanitary sewer, storm sewer, and necessary site grading.
City Manager Alan Stager reminded the commission that the financial risk lies entirely with the developer, not the city. He noted that the commission’s role is to ensure “that enough increment and enough tax will be generated... to fully pay off the TIF over the 20-year requirement,” and to confirm that the development improves the general economic welfare of the area.
“We Couldn’t Do It Without It”
The development is situated on land tied to the Mother of God Monastery. Sister Barb Younger, representing the monastery, spoke passionately about the necessity of the TIF to make the project a reality.
When asked whether the project could move forward without the city’s assistance, Sister Barb was unequivocal: “We couldn’t do it without... we couldn’t do it without.” She praised the developers for utilizing an economy of scale to build quality homes at lower prices.
“The best housing at the cheapest price is what we’re after,” Sister Barb told the commission. “It is about the larger community of Watertown and the neighborhoods that pop up because of that”.
Seth Fryer, representing SCI Development, detailed that the 40 lots will be open to the general public. “They’ll range anywhere from 736 square feet all the way up to 1,400 square feet,” Fryer said. He added that the homes will be highly customizable, allowing buyers to choose exterior colors, stonework, and interior finishes that fit their budgets.
The proposal met with enthusiastic support from the Planning Commission.
Commissioner Julia Tate voiced her approval for the focus on permanent, single-family neighborhoods rather than high-density rentals.
“I’d like to see single-family, family homes, family homes, and the need is here for family housing, not just apartments,” Tate said.
The resolution now advances to the Watertown City Council for final approval.