The state-owned STAR Academy near Custer will get a third auction in as many years.
An auction is set for mid-September after state officials say some buyers have expressed interest.
The state operated it as a juvenile detention and treatment center until closing it in 2016.
The state of South Dakota closed the STAR Academy as a part of juvenile justice reform. That was during the Daugaard administration and it’s been in and out of the state’s hands ever since.
The STAR Academy first went up for auction in the fall of 2017 and failed to sell. Then, in January of 2018, former Custer mayor and real estate agent Jared Carson met the minimum bid with several business partners. Their check to the state bounced, and the state repossessed the property in the fall of 2019.
Ryan Brunner is the Commissioner of School and Public Lands. He says his office has received calls from interested parties, however…
“They keep that kind of information very confidential, as to what their financial situations are,” Brunner says. “We understand that, just like any real estate agent would.”
The 173-acre property is in the heart of the southern Black Hills, with 150 thousand square feet of buildings. It costs the state about $351,115 a year to maintain the facilities. According to a recent appraisal, the property is now worth about 300-thousand less than it was worth in 2018.
Brunner says the hope is to sell the property before winter.
“There’s some real nice advantages to the property,” Brunner says. “Then there are some challenges with just the size of the square footage, and ongoing utility costs and things of that nature. It’s got a lot of value to the local community. I think we will hopefully find some interested bidders this time. If not, just like last time, we will set another auction date and continue marketing and working with folks to find a bidder.”
Brunner says if the property doesn’t sell, the state will also consider auctioning off a 40-acre plot of land to reduce the footprint.
