The remaining 133-acres of the former Star Academy youth detention complex south of Custer sold at auction Friday for $1,325,000, but the identity of the purchaser has not been released.
More information on the buyer and what they intend to do with the property, originally the state sanitarium, are expected to become known after Governor Noem signs off on the sale.
This is the 4th auction for the complex, which includes offices, dorms, staff housing, and a gym. The first failed to draw a bid, the second one 4 years ago saw the winner default, and the third had bids accepted on just 44-acres
The state dropped the minimum bid this time from nearly $1.7-million to an even million with 10% down to reduce the risk and encourage more bidders. There were 3 bidders on Friday
The state hopes the buyer will look to create big opportunities in the Custer area by developing the property and putting it back on the tax rolls..
Commissioner of School and Public Lands Ryan Brunner says the proceeds from the sale of the property totals almost $2-million dollars when you include the earlier $351,000 in foreclosure fees and the $320,000 for the 40 acres sold last year.
The money goes into a trust fund for the South Dakota Department of Corrections to supplement its usual sources of funding.