Does the County Have It Out for the City? Watertown’s Development Fight Just Got Harder -

The Watertown Post

WATERTOWN, NY — A last-minute decision to pull a major infrastructure grant from a city-backed housing project on Butterfield Avenue is doing more than halting one development—it’s exposing a deeper problem: building in the City of Watertown is becoming an uphill battle.

Developer Jake Johnson had plans to transform vacant land into new housing—first as a 138-unit apartment complex, later scaled back to single-family homes and duplexes after neighborhood opposition. The project aligned with a $500,000 infrastructure grant through Empire State Development’s County Infrastructure Grant program—potentially rising to $1 million with housing attached.

City officials say the application was complete, on time, and fully compliant.

Then, days before finalization, the funding was pulled.

The money is now expected to go to a project outside city limits, near Clayton.

A Project Stalled—And a Bigger Pattern Emerging

Johnson blames four county legislators—Anthony Doldo, Frances Calarco, Corey Grant, and Steel Potter—claiming political pressure redirected funds away from the very city they represent.

County officials counter that the decision was based on concerns about whether the investment would meaningfully address stormwater infrastructure issues and a lack of clear community support.

But regardless of which explanation you believe, the outcome is the same:

A shovel-ready project inside the City of Watertown is now on hold.

And that’s becoming a pattern.

The Reality: Demand Is There—Supply Isn’t

Watertown is no longer just a small city tucked into Northern New York. It’s part of a growing, transient regional economy driven by Fort Drum—with families, contractors, and professionals constantly rotating in and out.

Those people are looking for housing.

New housing.

Modern housing.

And increasingly, they’re not finding it inside the city.

Instead, development continues to push outward—into the Town of Watertown and surrounding communities—where zoning is looser, resistance is lower, and projects face fewer roadblocks.

The result?

The city proper loses tax base, population stability, and long-term growth potential—while the surrounding towns gain it.

Neighborhood Resistance vs. Citywide Growth

The Butterfield Avenue project ran into familiar resistance: nearby residents pushing back against density, traffic, and change.

Some concerns were emotional—fears about neighborhood character, children playing in the streets, and increased activity.

But here’s the reality:

Cities evolve. Or they decline.

The idea that growth should stop to preserve quiet streets might sound appealing—but it comes with a cost. When development is blocked in the city, it doesn’t disappear. It just moves somewhere else.

And when it moves, so does the tax base.

Zoning: The Quiet Barrier

Beyond politics and neighborhood opposition lies another issue: zoning policy.

Watertown has dozens of underutilized parcels—empty lots, abandoned garages, and aging structures that could be repurposed quickly with modern construction techniques.

One overlooked solution?

Small-scale, efficient housing—often called “granny pods” or accessory dwelling units.

These aren’t just for family members. They’re compact, single-occupant homes that could:

Increase housing supply
Provide affordable options
Revitalize underused land
Add density without overwhelming neighborhoods

But current zoning and regulatory hurdles make even these modest solutions difficult to implement.

City vs. Town: A Growing Divide

There’s an important distinction that keeps getting lost in the conversation:

The City of Watertown is where infrastructure strain, aging systems, and strict zoning collide.
The Town of Watertown is where development is increasingly flowing.

That divide matters.

Because when investment leaves the city, it doesn’t just relocate—it reshapes the region’s future.

So… Does the County Have It Out for the City?

That’s the question now being asked more openly.

Was the Butterfield grant pulled for legitimate infrastructure concerns?

Or was it another example of decision-making that consistently shifts opportunity away from the city and into surrounding areas?

Either way, perception is becoming reality.

Developers are watching.

And if the takeaway is that building inside the City of Watertown means more resistance, more uncertainty, and more last-minute surprises—then they’ll simply go elsewhere.