Watertown Seeks Developer to Redevelop Lake Kampeska Treatment Plant Property

Northeast Radio SD News – Watertown, SD - The City of Watertown, South Dakota, has issued a Request for Proposals (RFP) for the purchase and redevelopment of the decommissioned Lake Kampeska Treatment Plant. The initiative, identified as Project No. 2623A, aims to select a qualified developer to transform the property into a site that offers substantial benefits to the community.

Property Overview

The property is an approximately 1-acre parcel situated on Lake Kampeska along South Lake Drive. Legally described as “Watertown Water Co Outlot 1 (Water Filtration Plant) Tax Exempt,” the parcel is being sold “as-is” by the City.

Currently, the land houses a small structure containing active USGS equipment. While the City prefers that this equipment remain on site, it can be removed if the chosen redevelopment plan requires it.

Development Objectives and Potential Uses

The City’s primary objective is to return the property to productive use and improve the quality of life for residents. Officials hope the redevelopment will enhance the area near the Cattail Crossing Golf Course, generate economic activity, and increase long-term tax revenue.

The City welcomes proposals for any lawful use, and adaptive reuse of the existing structure is permitted but not mandatory. Potential concepts suggested by the City include:

·        Events venues

·        Food and beverage establishments

·        Recreation or tourism amenities

·        Short-term lodging

·        Apartments or condominiums

·        Storage units

·        Educational or cultural facilities

Proposal Requirements and Evaluation

Interested developers must submit a brief proposal not exceeding ten pages. Submissions must include the proposer’s information, details on the development team, and a conceptual plan illustrating the proposed use. Additionally, developers must provide estimated milestone dates, projected economic impacts, and financial details, including a purchase price offer.

Proposals will be evaluated primarily based on their potential community benefit, economic impact, and the offered purchase price. The City will also weigh developer qualifications, project feasibility, and the proposed timeline. Finalists may be required to present their concepts to a selection committee comprised of City staff.

Submission Timeline

The City of Watertown Public Works Department issued the RFP. Key dates for the project include:

·        Submission Deadline: Proposals must be received no later than Thursday, September 10, 2026, at 4:00 PM CST.

·        Platform: Submissions should be made electronically via the Virtual Bid website.

·        Preliminary Selection: Scheduled for September 24, 2026.

·        City Council Consideration: Scheduled for October 5, 2026.

The developer of the selected proposal may be required to attend City Council meetings to help secure approval of the purchase agreement.

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