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Board of Adjustment approves conditional use for hotel at former Watertown City Hall

June 26, 2025 | City of Watertown, Codington County, South Dakota


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Board of Adjustment approves conditional use for hotel at former Watertown City Hall
The Watertown Board of Adjustment on June 26 approved a conditional use permit to allow a hotel/motel at the former City Hall site, 23 Second Street Northeast, a project the mayor said will return the parcel to private tax rolls and boost downtown businesses.

The conditional use matter drew support from the mayor, who appeared as the applicant and said the city had declared the parcel surplus and sought a private redevelopment that would add downtown value. "We'll actually be taking a publicly owned piece of property, putting it back on the private tax rolls," the mayor said during the public hearing.

Board members discussed parking, screening and compatibility with the downtown area. Planning staff member Brandy said a final site plan had not been completed but that the project team currently plans to add 16 off-street parking spaces on the main level and that 14 on-street spaces are adjacent to Second Street; she also noted a public parking lot within roughly 100 feet of the site. Developer representative Chance Walford said the structural design is preliminary and that while 16 off-street spaces are planned now, final engineering could allow up to 18. "Right now, they're thinking we need 25 pylons for our structure under there... 16 is what they're thinking, but, you know, maybe we could end up with 18," Walford said.

The mayor told the board the City Council unanimously supported the sale and redevelopment and that the private developers would remove and replace the existing structure. The board sought no additional conditions at the hearing and moved to a vote. The motion to approve the conditional use was made by Dolly and seconded by Speyer; a roll call recorded all members present voting yes and the motion passed unanimously.

The board’s approval covers the land use (hotel/motel) and not final design details; planning staff and the applicant indicated final parking counts and structural details will be resolved during site plan and building-permit review. The mayor and staff said the proposed use is intended to support downtown event venues and businesses such as Foundation Plaza.

No formal appeals or follow-up dates were announced during the meeting.

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