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Council approves first reading to rezone hospital-owned tract, advancing Hot Springs housing plans
Summary
The Hot Springs City Council approved a first reading to rezone FRMS Tract 1 from "no use" to Residential A, clearing a procedural step for a planned housing project led by Fall River Health Services that could include single-family lots, twin-home lots and multifamily sites if infrastructure funding is secured.
The Hot Springs City Council voted to approve the first reading of Ordinance 12 75 to rezone FRMS Tract 1 from "no use" to Residential A during its regular council meeting.
The rezoning moves property annexed by the city out of its temporary "no use" status and into a residential zoning category that Fall River Health Services says is needed to pursue an affordable housing project near the hospital. Council members voted in favor on a roll call; no no votes were recorded and the motion passed.
Planning and zoning staff and Fall River Health representatives told the council the rezoning is a procedural step required after annexation when a planned-unit-development (PUD) has not yet been filed. Jeremy Schultes, identified in Planning & Zoning minutes as CEO of Fall River Health Services, said the hospital has applied for a South Dakota Housing Authority grant for infrastructure and expects an answer within a few weeks. Schultes and other project representatives said the site could yield roughly 25–30 individual home sites, about a dozen twin-home lots and a location reserved for multifamily housing on roughly 10 acres, depending on final design.
The project would not be limited to hospital employees, Fall River Health representatives said. They described the intent as "affordable housing" for the community broadly and said the hospital might reserve some lots while other lots would be sold to private buyers.
Members of the public and representatives of local services spoke during the public hearing. Randy Stambaugh, identified in Planning & Zoning minutes as president of Hot Springs Ambulance Services Inc., raised concerns about proximity to ambulance operations — specifically lights and noise from dispatches — and urged safeguards to separate residents, particularly children, from ambulance areas. Fall River Health representatives said they have coordinated with ambulance services and Life Flight and did not report major current compatibility issues.
Council and staff discussed next steps: the rezoning puts the property into an active residential category to comply with the one-year zoning requirement after annexation. Fall River Health and the city indicated the likely next phase will be a PUD application that would be considered by council later, and that infrastructure funding (roads, water and sewer) is dependent on grant decisions and other financing options, including potential tax increment financing (TIF) previously discussed as a funding approach.
The ordinance passed its first reading. Council members and staff said the public will have additional opportunities to review and comment should a PUD or funding request move forward.
