Watertown Secures Land for Future North Bypass; Addresses Neighboring Landowner Concerns
- Steve Jurrens
- 2m
- 3 min read
Northeast Radio SD News – Watertown, SD - The Watertown City Council voted unanimously on Monday night, June 15, 2026, to approve the purchase of a 2.91-acre parcel of surplus land from the South Dakota Department of Transportation (SD DOT). The transaction, valued at $12,200.00, aims to preserve a critical corridor for the city’s long-term infrastructure plan: the proposed North Bypass.
The property, designated as Lot B2, is located near the northern city limits along 26th Street NW, just northwest of the River Ridge development and adjacent to 814 26th Avenue NW. Funding for the acquisition will be drawn from the city’s Land Restricted Fund.
Strategic Preservation for Long-Term Infrastructure
City Engineer Justin Petersen introduced the item, explaining that the SD DOT had officially declared the 2.91-acre strip as excess property and offered it to the city at its appraised value.
Peterson outlined the city’s immediate and long-term intentions for the land:
“This is a piece of property in the northwest part of Watertown, off 26th St. Kind of northwest of River Ridge. It was a piece of property that was designed or going to be used for the north bypass. The DOT is looking to get rid of it and has offered to sell this parcel to the city... We recommend approval of it, and the intent would be that we’d end up leasing the property until it’s needed for the North bypass at some point in the future.”
By acquiring the property now, the city prevents private development from blocking a future transit route, ensuring municipal flexibility decades down the road.
Adjoining Landowner Highlights Proximity and Property Impacts
Before the council took its vote, an adjoining landowner came forward to share logistical challenges regarding the land’s severe proximity to his existing residence.
Clay Kessler, who purchased the neighboring property in 2017, explained that the alignment of the original bypass plans cuts directly into his living space.
Kessler requested clarity on how the purchase affects his family’s long-term property maintenance and security:
“That parcel that the state is proposing to sell back to the city now is actually close enough to the house that you could never build the road there without having to vacate the house, which is what they initially bought the entire property for... It does sit pretty close to our property. It kind of cuts it up into a really goofy deal. So we’re just concerned about how long do we continue to maintain our property knowing that if a road was ever there, we wouldn’t be able to.”
Kessler also pointed out that the SD DOT had to cut out a tiny 0.01-acre section, labeled Lot B1, from the sale parcel because it directly encompasses the active water well that feeds his home. City Engineer Petersen confirmed the detail via the municipal map, noting the exemption was explicitly carved out to protect the homeowner’s utility source.
Administration Pledges Collaboration and Fair Protection
In response to Kessler’s testimony, City Manager Alan Stager sought to reassure the family that the city’s acquisition presents no immediate threat to their home, pledging a collaborative relationship moving forward.
Stager clarified the financial and legal protections guaranteed to the land owners if the North Bypass project ever materializes:
“We are certainly looking to work with Mr. Kessler on his property and use of the adjoining property. If at some point, well down the road in the future, we do need the property, you would be paid fair market value for yours if it was required to build a road... I think there’s very little risk in you maintaining and continuing to use your property, and we would enjoy working with you on any portion of the property that we might acquire here that you might want to use as well.”
Mayor Holien instructed Kessler to maintain open lines of communication with Stager’s office to coordinate property lines and potential land-use agreements while the city holds the land in reserve.
Summary of the Land Transaction
Transaction Element | Details |
Property ID | Lot B2 (NE1/4 of Section 24, Township 117N, Range 53W) |
Acreage | Approximately 2.91 acres |
Purchase Price | $12,200.00 (Appraised Value) |
Funding Source | Land Restricted Fund (Account 212-43180-43100) |
Primary Intent | Corridor preservation for the future North Bypass |
Interim Action | Lease the property until infrastructure development begins. |
Councilman Allen moved to approve the purchase and authorize the city manager to finalize the transaction, which Councilman Heuer seconded. The council passed the motion unanimously via a definitive roll call vote, formally shifting ownership of the bypass corridor from the state to the city.
