Bart Pfankuch updates us on the last great project of the Benedictine Sisters of Watertown, the transformation, now in its sixth year, of their 495-acre monastery into a multigenerational community:
Completed, ongoing or future projects at the site, which are aimed at aiding the sisters but which will also be open to the public, include:
- Up to 700 residences, ranging from affordable apartments and single-family homes to rental units for veterans to assisted-living and memory care spaces for the sisters and the local community
- A child care center that could eventually house up to 200 children ranging in age from 4 weeks to 4 years old
- An 80-acre commercial development with room for dining and hospitality businesses as well as light industrial and manufacturing
- The Challenger Learning Center of South Dakota, a separate nonprofit built in affiliation with the National Aeronautics and Space Administration, that will promote science and careers in STEM fields and be open to children across the state
- A town square concept known as The Commons of Harmony Hill, which will transform the original monastery building into a welcome center with meeting rooms, bistro and pub, art gallery and maker’s space, and spa and fitness studio
- Up to 80 acres of green space and a system of trails to encourage community recreation [Bart Pfankuch, “Monastery Makeover: Nuns Leave Lasting Legacy of Service in Watertown,” South Dakota News Watch, 2026.09.07].
Last spring, the Watertown City Council approved tax increment financing to cover $2.1 million in infrastructure costs for of a $12-million housing addition that will include 40 small single-family homes ranging from 736 to 1,400 square feet, which will sell for $160,000 to $300,000.
That TIF is a small fraction of the total project cost; Pfankuch reports construction will cost $83 million, while the National Community Development Services analysis says the entire project will cost almost $400 million. The Sisters are raising money and using donated materials to cover the project. NCDS figures Watertown, Codington County, and the state will get the following return on their investment in Harmony Hill:
- Short-term construction impacts will generate over $67 million in new consumer spending and over $325 million in business output in Codington County
- Job creation: 2,041 new jobs associated with short-term construction, and 1,481 new “permanent” jobs from the project’s residential and commercial operations
- Over $49 million in new annual personal income (permanent)
- New Tax revenues:
[National Community Development Services, “Harmony Hill Economic Impact Analysis,” May 2022]
1,481 long-term jobs, $4.76 million in ongoing sales tax revenue, $5.4 million in new property tax revenue (once the TIF is paid off)—that sounds like a lot better return than we’ll get from any data center. Instead of housing robot overlords, maybe South Dakota’s economic developers should focus on projects designed to house people and build real community.