Watertown leaders criticize proposed fines for paperwork amid development concerns

The City Council Work Session Meeting held on February 10, 2025, in Watertown, South Dakota, focused on critical issues surrounding economic development and housing. A significant concern raised during the meeting was the impact of high fees and bond requirements on potential developers in the area.

One speaker highlighted that the financial barriers associated with bonds and related fees limit who can afford to develop properties in Watertown. The speaker argued that these costs not only reduce available capital for other projects but also discourage economic growth. They expressed frustration over proposed fines of $500 per day for paperwork violations, labeling them as counterproductive to the city's development goals.

The discussion pointed out that Watertown has struggled to sell lots, with recent sales figures indicating that neighboring Millbank has outperformed Watertown in this regard. The speaker emphasized the need for immediate action to address these challenges, noting that Watertown's population growth has stagnated, adding only 500 residents in the past year, which is significantly lower than other cities in South Dakota.

The meeting underscored the urgency for the City Council to reconsider its approach to development regulations to foster a more favorable environment for growth and attract new residents. The implications of these discussions could shape the future of economic development in Watertown, as stakeholders seek solutions to enhance the city's appeal to developers and potential new residents.