Developers urge Watertown Council to address rising lot costs and regulatory challenges

The City Council Work Session held on February 10, 2025, in Watertown, South Dakota, focused on pressing concerns regarding local development and the challenges faced by developers in the community. Key discussions highlighted the lack of support from the Watertown Development Company (WDC) and the increasing costs associated with municipal utilities, which are impacting the affordability of housing and commercial lots.

During the session, a developer expressed frustration over the stagnant sales of commercial lots, despite the availability of reasonably priced properties. He pointed out that the current economic climate, coupled with rising utility costs, is making it increasingly difficult for developers to maintain affordable pricing for lots. The developer noted that new requirements mandating developers to cover 100% of pipe costs have led to higher lot prices, further exacerbating the housing affordability crisis in the area.

Concerns were also raised about the political climate surrounding development in Watertown, with claims of personal attacks against developers contributing to a challenging environment for growth. The developer emphasized the need for a collaborative approach between the city council and developers to foster a more supportive atmosphere for economic development.

Council members engaged in discussions about potential solutions, including the possibility of implementing programs similar to those in other South Dakota communities that provide financial incentives for homebuyers. The idea of extending development agreements to allow for more flexibility was also considered.

The meeting underscored the importance of addressing the disconnect between city policies and the needs of developers, with council members acknowledging the necessity of working together to create a more conducive environment for growth. The overall sentiment was one of urgency, as stakeholders expressed a desire to see Watertown thrive economically and attract more residents and businesses.

As the council continues to explore solutions, the discussions from this meeting highlight the critical intersection of local governance, economic development, and community engagement in shaping the future of Watertown.