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Watertown Strengthens Protections for Neighborhoods Near New Storage Districts

Two people sit at a pink desk with microphones in a meeting room. Text reads: Watertown Considers Strengthening Protections.
Watertown City Engineer Justin Petersen & Community Development Manager Brandi Hanten discuss measures to enhance neighborhood protections amidst the development of new storage districts.

Northeast Radio SD News - Watertown, SD - The Watertown City Council conducted a first reading tonight of an ordinance designed to “clean up” regulations for the city’s new Residential Storage District (R-S), adding strict design standards and a total ban on shipping containers within those areas.


The proposed amendments to Ordinance No. 25-18 refine a zoning category first established in early 2025 to allow for storage units and shops in proximity to residential neighborhoods.


Ban on Shipping Containers

A key highlight of the updated ordinance is the formal definition and prohibition of shipping containers within the R-S district. Community Development Manager Brandi Hanten informed the council that while shipping containers are sometimes utilized as accessory structures in other districts, if they are framed and sided to match a primary residence, they will be entirely barred from the Residential Storage District.


“We wanted to protect those residential districts by prohibiting them,” Hanten explained during the meeting, noting that the goal is to prevent the visual impact of mismatched or “rusted out” containers near homes.


It was clarified that this ban would not affect active construction sites. On properties with a valid building permit, containers may still be used for up to one year to house tools and materials, with potential extensions granted only at the discretion of the building official.


Enhanced Screening and Aesthetics

At the request of Mayor Ried Holien, per his statement at the meeting, the ordinance was pulled from a previous hearing in November to allow staff to include greater protections for adjacent neighbors. The new version requires:


·        Residential Siding: Any storage structure sidewall that faces an R-1 or R-1C residential district must be finished with siding and roofing materials customarily used on site-constructed residences.

·        Mandatory Screening: Property owners must provide six-foot-high screening—such as fencing with less than 10% transparency, berms, or vegetation—along boundaries abutting residential zones.


Councilman Brent Mohrmann raised concerns regarding the use of vegetation for screening. Hanten confirmed that any landscaping used to meet the requirement must be at least six feet tall at the time of installation before a certificate of occupancy is issued.


There are currently no properties in Watertown rezoned to the R-S district, making this an ideal time for “cleanup,” according to Hanten. Consequently, the amendments carry no immediate financial impact for the city.


The council took no formal action as it was a first reading. A second reading and public hearing are scheduled for the January 20, 2026, meeting.


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