CUSTER, S.D. — State officials will try again to sell a former juvenile detention center in western South Dakota after an auction failed to attract any buyers.

The governor’s office has decided to hold a second public auction of the 173-acre former STAR Academy property near Custer, the Rapid City Journal reported . The auction is scheduled for Jan. 4 at the Custer County Courthouse.

The first public auction was held Oct. 18, but failed to draw interest from the three bidders in attendance. The minimum reserve bid was set at $2.34 million.

The state’s School and Public Lands Commissioner Ryan Brunner said the second auction’s initial bid will need to be the same amount.

“We’ll work to sell it to any bidder who will pay minimum appraised price,” Brunner said. He said the sale could bring job creation and tax revenue to the area.

“It’s one thing to sell,” said Brunner. “It’s another to find somebody that would be a good fit for the area.”

The STAR Academy property includes 11 residences, a gym, a barn, and administrative, housing and maintenance buildings. It closed in April 2016.

The property will need substantial maintenance and repair work before it’s in working condition. Those costs were included in the appraisal price.

If the second auction ends without sale, the governor’s office will decide whether to hold another auction or try a different route.


Information from: Rapid City Journal, http://www.rapidcityjournal.com