Planning Commission - Regular Meeting

head and call to order the March 19th, 2026 uh City of Watertown Planning Commission. Uh can I get a roll call, please? Yes. Spy here. Kayes here. Tate here. Tupper here. Darus Johnson here. Albby here. Picach here. And Cohane is absent. And Churn is here for the record. She was here for board of adjustment. Thank you, Brandy. Um, for the plan commission, do we have a motion to approve the minutes from our last meeting? Still moved. Okay, got a motion. Second. Motion second. Uh, all those in favor? I I.

Any oppose? Same sign. All right. Approved. Um, is are there any uh conflicts of interest or exparte communications that we need to disclose here as we start? Okay. None. Um, any new business uh not on the agenda?

I just want to bring up the agenda snafu that we were experiencing. Um, so there's an item online right now that under new business, it shows for the termination of a development lot agreement that was supposed to be on the agenda when we posted it on Tuesday as a regular agenda item. Um, but I comp I compass kind of had its mind of its own with this item, but it was not posted on the agenda 24 hours before for the deadline. So, we are not doing anything with that item. We'll bring it forward on April 9th. There's no public hearing with it, but still

it happens. Yeah, you know, it usually doesn't. It's kind of weird. All right. Um, for the public here, um, if there's anything that you would like to address, I'd ask at this time, please uh give that to Brandy for public sign up for, uh, when we're at the back end of the agenda here. Um, can I get a board motion to um approve the agenda 8 alpha? So moved. Second. And a second. Okay. Uh, all those in favor? I I Any oppose? Okay. Brandy, if you would take it away and uh to walk us through u agenda item 8 alpha.

Yes. Thank you, Spyer. So this is TIFF 23 before you tax increment financing district 23 and as we've seen the other two come forward in the recent past. U this is also for affordable housing. It'll be classified as affordable housing but it will be a little different from the other projects as this is introducing um 40 new single family home lots. Uh this is in the Harmony Hill subdivision and you'll also recall that we recently brought forward the annexation and zoning and reszone of this property that will be developed um the approximate 9 acres and it is zoned R1C which is um compact single family residential. So that alto together will support the um the price point that they are aiming for that is also described in this tiff plan. And so they are looking at or anticipating the houses to be around 300,000. And for sure with the affordable housing uh designation, they will have to stay under the South Dakota h the the um cost as outlined by Southakota Housing. Um the total tiff request is okay. The total eligible costs are $2,353,692 and the request the tip request is $2,15,215 of the $2.35 million eligible cost. So they are asking for less. Obviously these costs are um involve they involve

the infrastructure largely which for this project there will be a lot of public infrastructure involved because they will be building new streets and public infrastructure for sanitary sewer and water with this project. Um so that that helps offset those costs. And I think with that oh altogether the um the project costs and valuation will be at 12 million. So there will be substantial investment with this project going forward and a nice application of the R1C zoning designation. So with that I'll stand by for questions or if city manager Stagger wants to add anything. I I would maybe just refresh the commission. Uh about a month ago, you went through two tiffs and I think the uh process you followed went very well and just as a refresher, the process you went through is you really considered the the proposed tax increment district from three perspectives. You looked at the the geographic boundaries of the district which which you will have here to do today. Secondly, you looked at do the numbers work out? Does it does it look like from the plan that enough incremented enough tax will be generated um to to fully pay off the tiff over the 20-year uh requirement. And then thirdly, you ask the question about the economics of the project. And there you're asking the question um about whether or not the general economic welfare of the area um is improved by the tiff development and and would it happen without the tiff development. And I think that worked very well and I'd

suggest following that that same reasoning as you go through your deliberation tonight. Thank you, city manager. Is there any other uh questions from the commission of the staff? Mr. Chair, is there anybody from Collier? Um yes, I Quinn Ratmer is here with Collers. Hi Quinn. Hi. Just was looking to see if you had any additional insight to the plan or the project itself.

Um it, you know, in terms of the functionality, it really mirrors those last two tips I worked on. Um, you know, it's affordable housing tiff like Brandy had mentioned. Uh, no liability to the city, annual appropriation tiff. Uh, you know, it's not going to affect any future borrowing ability for the city. Um, you know, the in terms of the price of the homes. Naturally, those are going to eb and flow as the process goes on. As you know, homes are built. Size obviously might be more, might be less. The intention is to, you know, catch the majority of it. So, in our numbers here, we use 300,000 uh in in terms of, you know, the South Dakota first time first-time home buyers is 4 I believe it's 411 and that is likely to increase here this year. So, we're we're we're well below that in terms of the project itself and uh you know in uh you know that that's about all I have. Brandy did a great job explaining the project for sure. So, any questions for me? Uh Quinn, this is Todd Case. Just for the general public that may be listening in, how does the affordable tiff and the dollars that are generated um have no no impact or little impact on um the taxes that are normally paid to the city or the county school district?

Um yes. So that' be your base value. uh your base value today is 8,000 because I think there's there's only two acres in there that were actually taxable at this point in time and the rest were uh 501c3 on that for the Harmony Hills. So in terms of the base value, you still the city, the county, any taxing entities are still going to receive that amount uh the taxes based on that amount. you're just not going to receive the the increment that comes from the the improvements that are done. You know, that's just the nature of the tiff. You know, you want to the tiff's got to pay for itself in some way. So, that's where that the city is going to lack on those valuations. Um, you know, in terms of the affordable housing portion of it and the the effect on the school, the school's held harmless from these funds in terms of uh, you know, the the the state aid to education formula on that. So any any loss in revenue is made up by the state. That's that's what I was looking that was the answer I was looking

and I don't know if this is a um if it's a question for Brandy Allan or or Quinn on here and um you know to start by saying just I completely think this is a a very legitimate and use of of a tiff exactly what they're designed to do. Um my question just has to do with you know I know the um total eligible costs of the 2.3 the request of 2.1 million and change because that is um what the available increment revenue is. There is the little footnote about SB96 with changes in property tax. Is there any um crystal ball on how that could affect the performance in the future? And if there is non-performance, then how is that is is that on the city or is that on the developer?

I'm sorry, I can ask that question for you. Quinn, you can back me up. But in the legislature, if we have if this is in place prior to the enaction of 96 going into effect, those tiffs are held harmless. That was my understanding. I I think that is accurate. And this is also um pre-implementation of uh I think it's two Senate bill 242 228 228 is the is a comprehensive bill.

Um so we are we are fine. Um, and if something happens in the future with property tax versus sales tax and tiffs, well, all of our tiffs are in the exact same situation. So, we will be figuring that out across the state. Excellent question. Any other board? Mr. Chair, do you uh is this housing I know at one time they talked about having um I'm guess I'm talking to you, Mr. Quinn. Um that um senior housing this is open to all ages. Then we're not focused on I I like I said I thought that one time the he let us we'll bring them up here in a minute if you want to hold that. Oh, okay.

Any other for the staff? All right. Go ahead and invite the um applicants uh to come forward from Harmony Hill and or your representatives. Identify yourself please. And then uh if you want to add anything further to uh the tiff requests. I'm uh Seth Frier. I'm a representative at SCI Development. Sister Barb from uh Mother of God Monastery.

As far as adding anything, um I I think everybody did a great job. I'll just go right into the answer to that question of um this will be open to the general public. So, what our plan is is that we will go out, these lots will go out for sale. We'll pre-sale them. We can with the hopes that we can do some spec homes behind the pre-sales. So, they'll range anywhere from 736 ft all the way up to 1,400 square ft. Um, falling north and south of that 300 depending on on what we hit. Um, they'll be fairly customizable to the the homeowners. They'll be able to choose their their colors of the exteriors, the color of their stone. Um, and then in the interiors, they'll be able to co pick out different colors that fall within their price ranges. So, keeping it fairly flexible and um, making it look like a pretty nice community is our goal.

Mr. Chair, uh, for you, Sister Barb, one of the things we're always looking at is kind of a but for statement, being able to move this project forward. It's really the tiff that's allowing you to be able to do the affordable housing aspect of it. Is that correct? It is the tiff, but it's it's not just the tiff. So, the sisters are but the tiff is what helping you. Absolutely. We couldn't do it without we couldn't do it without and you know Sepanin has done a great job of trying to get an economy of scale

and and to build the houses a good house for a lower price because you have that economy of scale as far as the senior housing that's all up on the top of the hill in the village. So this anything else we build which we hope that 40 is just the first increment of this um for the good of Watertown and so that would be for a community a neighborhood to pop up. Thank you. Thank you Sister Barbara. Do you have any other uh comments on behalf of the TIF? Could I just be clear though with uh K K K K K K K K K K K K K K K K K K K K K's comment there, the TIFF is actually with SEI. So with the developer itself um

understood. Yeah, I was and overseen by the board, you know, SEI development LLC. I was just looking for a statement saying that we need to make this project. Perfect. Yes. How what is the size of the lots that are going to be um

so they they range uh 70 by 100 to there's some bigger ones um within that 90 by hundreds. What we did is we tried to break it up so that that way we weren't putting a bunch of small ones just in a row that that way gives some flexibility to the community that a and the opportunity that if there was you know there's some bigger lots that somebody wanted to do a custom style out there we're not going to say no to that. you know, if they they have that within their budget, we're definitely not going to say no to that. 70 by 100, that's uh bigger than my old town nonaffordable. So, all right. Okay. Any other

I just wanted to make a comment. I'm very excited about this uh tiff district. Um and I wholeheartedly support this. Um, I'd like to see single family, family homes, family homes, and um the the need is here for family housing, not just apartments. Yeah,

I'm really pleased to see this. Thank you. And for um the developer and uh and sister Barb uh regarding the boundaries, these are this has always been a part of the concept plan when you know the annexation. Nothing's changed to my recollection and the development and the move, you know, the timeline maybe shifted, but other than that, this has always been the plan to have affordable housing in this footprint. Well, that that's the sister's intent is that um whatever we do is very intentional, right,

and is for the good of Watertown. So, the best housing at the cheapest price is what we're after. But to Julia's point, it is about the larger community of Watertown and the neighborhoods that pop up because of that. And um that's our why.

So, so but the annexation's happen, the zoning happened, uh the uh the streets are, you know, everything you know is in order. So, the uh the the phase project is moving forward. Yeah. Gotcha. Any other Okay. Um, thank you. Is there anyone here from the public that wants to speak on behalf of or uh or has anything they opposed to this uh tiff request and its boundaries Quinn? Um this is Todd Case again just to reiterate maybe not reiterate but after reading the plan and I know the answer but it's just again for the public we are still well below our our threshold as far as how much we can tiff in the city of Watertown.

Oh yeah. Uh I can double check that for you. I think we're I think it's less than 1%. I believe. Yeah. I I know that but I just it's nice just to have that out. Oh yeah. There's plenty of room left for if any future tips if if need be. You're not even scratching at it. So, Right. Right. We're not We're not Rapid City, right?

Um I should have asked this while you're at the chair, but you can stay where you are. um the um the development here it was a gift on behalf of the monastery to the community if I recall it was the initiation and I know there's uh I think there's a a obviously a profit consideration to sustain the development and you know future handoffs and all that but currently it it falls under fall under a nonprofit opises right now this this okay thank you any other public comment Hearing none, I'll close the public hearing. Uh, can I get a commission action, please?

Um, Mr. Chair, I made a recommendation that we approve resolution 202609 that looks at establishing the boundaries of the tax increment finance district based upon the plan. Uh it looks appears that the economics of proposal will come to fruition and we've heard from the applicant that for the ability to have this project. Got a motion. Can I get a second? Second.

Motion and a second. Um board discussion. Um any further elaboration? I thought that was a a perfectly, you know, succinct uh justification for the motion. Any other further comment from the commission? Okay, let's go. Can I do this by voice vote or do I got to go roll call? I think I do a voice, right? No. Oh, I got to do roll. All right, Brandy, can you do the roll call? All right. Spire, yes. Case, yes. Tate, yes. Tupper, yes. Yes. Albbe. Yes. Dargas Johnson. Yes.

So that is approved to go forward to the council uh commissioners. Um any other new business? Okay. No. Okay. Any old business? No. Okay. Uh no need for executive session. Um meeting is adjourned. Thank you guys. Enjoy the beautiful weather.