County approves tax‑exempt financing for 62-unit independent‑living addition at Mother of God Monastery campus

The Codington County Board of Commissioners unanimously approved Resolution 2026‑04, authorizing the county to act as a conduit issuer for economic development revenue bonds to finance a 62‑unit independent‑living project connected to the Mother of God Monastery campus.

Michael Clott, who identified himself as a strategic advisor to the sisters at Mother of God Monastery, said the project will be directly connected to the monastery and "provide a continuum of care for the seniors living in the community and provide options for the greater Watertown community." Clott said the project is an extension of an existing senior‑housing campus and that the county had completed similar conduit financing for the assisted‑living portion of the campus in the past. He told commissioners the bond figure was set with a cap "not to exceed $30 million," and that the developers do not expect to reach that maximum.

Sister Barb, speaking for the monastery, said the sisters had not planned to be developers but that the project "not only [cares] for the people at the village, but [is] a benefit economically to Watertown," and that it supports local housing and care goals.

A county attorney explained the legal mechanics: because the borrower is a 501(c)(3) nonprofit and the county would serve only as a conduit issuer under state and federal law, the loan is the nonprofit's obligation and is not counted as county debt. "Under our state law the conduit issuer is prohibited from pledging any tax revenue or property; they act solely as a conduit," the attorney said. Commissioners were told rating agencies and market participants treat such loans as the nonprofit's debt rather than the county's.

After the public hearing, Commissioner Gable moved to approve the resolution; Commissioner Schwar seconded and the motion carried by voice vote. The resolution authorizes issuance within the county's established conduit procedures; the board record did not list a recorded roll‑call tally. The county will not pledge tax revenues to repay the bonds; repayment will rest with the nonprofit and the bank that underwrites the loan.

Because the action was approval of conduit financing rather than a county appropriation, commissioners said no additional county debt or constitutional debt‑limit implications would arise. The project proponents said they expect construction and related permits to proceed through the city’s zoning and building processes.