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Watertown planners weigh banning shipping containers in downtown overlay after staff finds unpermitted units

March 06, 2026 | City of Watertown, Codington County, South Dakota


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Watertown planners weigh banning shipping containers in downtown overlay after staff finds unpermitted units
Planning staff told the City of Watertown Plan Commission on March 6 that a staff canvas identified four shipping containers located in the downtown overlay district and that none of those units had been permitted. Brandy said staff would follow up to ensure the containers are removed or otherwise brought into compliance because the units are nonconforming: "Alyssa did a canvas of the downtown overlay district and found that there's actually only four shipping containers that are placed on properties and none of them have been permitted," Brandy said.

Staff explained current permit rules: a shipping container used as a permanent structure would require a building permit and could be treated as a structure under the ordinance, while containers used for temporary construction storage are subject to temporary/materials or right-of-way permits. "If it's a permanent structure they need a building permit and if they're using it for temporary construction storage then they have some type of permit associated with that," Brandy said.

Commissioners discussed options but did not vote. Several members said the commission could either open a formal discussion at a future meeting to consider an ordinance amendment that would prohibit shipping containers in the downtown overlay, or defer to the city manager and City Council for broader map or policy changes. Commissioners also noted the overlay's northern boundary on North First Avenue is more industrial in character and that local context could affect whether containers are deemed appropriate in specific blocks.

Some commissioners emphasized stakeholder engagement before adopting any change. Commissioner Tate and others suggested coordinating with the newly funded downtown coalition and other stakeholders to gather input before drafting an ordinance. No ordinance or amendment was introduced at the March 6 session; the chair indicated the item could be scheduled for a future regular agenda for more detailed discussion.

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