Watertown’s Flats on Kemp: Overdue Taxes and Sidewalk Assessment Paid in Bankruptcy Settlement

Northeast Radio SD News – Watertown, SD - All past-due property taxes and a city sidewalk special assessment—including interest—have been paid in full on the downtown Watertown property known as the Flats on Kemp as part of its bankruptcy settlement, City Manager Alan Stager announced during the Watertown City Council meeting on Monday, Oct. 19, 2026.

During his report to the council, Stager provided updates on the Flats on Kemp, upcoming November budget discussions, a planned revision to the city's cable franchise ordinance, and the conclusion of the 2026 street construction season.

Flats on Kemp Bankruptcy Settlement Clears Obligations to City

Addressing the downtown building formerly known as the Ruins, Stager informed the council and the public that the city has recovered all funds owed on the property.

"I'd like to give an update on the flats on Kemp, formerly known as the Ruins," Stager said. "And as the bankruptcy settlement proceeded, there's a piece of good news that doesn't always get reported on, but I think it's important for you guys to hear this as well as the public, but all of the past due amounts for property taxes that had not been paid as well as the special assessment for the city completing the sidewalk in front of that building were paid as part of the bankruptcy, including interest. So at this point, there are no outstanding obligations on the city owed to the city on that project."

Following Stager's report, Ward E Councilman Lynn Jurrens praised the recent progress at the downtown property and nearby Foundation Park.

"Normally we can't applaud on ordinance work and all the other things, but the news that city manager Stagger brings up about the flack and all of the community concern over the ruins is not a ruin anymore," Jurrens said. "And I would like to applaud that, but I'm not going to be the only one. I think it's a great idea. It's amazing movement and I really want to applaud that new contractor who is just mowing things down. Things are looking great. I hear progress is going at unbelievable levels and Foundation Park, downtown Watertown has vastly come a long ways in a short period of time."

"I'll clap with you if you don't want to clap alone. Thank you, Councilman," Mayor Ried Holien responded.

November Budget Reviews and Cable Franchise Ordinance Revisions

Stager told the council that November will be busy, with several budget resolutions. He noted that city staff would reach out on Tuesday, Oct. 20, 2026, to coordinate schedules with small groups of council members for detailed budget reviews with him and Chief Financial Officer Kristen Bobzien.

"We will be reaching out tomorrow to align schedules with small groups of you to do some deep dives into individual sections of the budget between the CFO and myself so we can get you exposed at a much more granular level than we will do in the open meetings in the budget, give you a chance to really digest the material versus having to react online as you're up before all of us," Stager said.

Stager also announced that the council will consider a couple of ordinances before the end of November, including a revised cable franchise ordinance.

"We do need to bring forward a cable franchise ordinance to revise our existing ordinances as cable companies have changed and the franchise fee structure in the city has historically been based upon only a television connection," Stager said. "As cable companies change, it causes us to have to relook at some of the provisions within our cable franchise fee ordinance as well as the agreements with cable companies."

Fifth Avenue Landscaping and 2027 Construction Planning

Closing his report, Stager stated that the city's 2026 street projects are wrapping up, though city engineering staff are still addressing community concerns along Fifth Avenue.

"I do know that our engineering staff has been through several of the 5th Avenue areas and they continue to work with the landscaping contractor to resolve issues that the community has there," Stager said. "After we complete that project and the municipal utility projects are completed, we will then turn our attention to final planning for projects for the 2027 construction season."