PIERRE, S.D. (KELO) — The two members of the South Dakota Board of Appraisal reduced the starting bids for several parcels of state-owned properties in Brookings County Monday.
The lower amounts reflect latest information on utilities needed to serve the sites, according to Ryan Brunner, state commissioner of school and public lands. His office oversees some of state government’s lands and investments.
Brunner and state Auditor Rich Sattgast are the board’s members.
The two parcels are scheduled for public auctions September 26 at 1 p.m. CT at the Brookings County Government Center. Seven auctions of state-owned properties are planned for the months ahead in different communities.
One of the Brookings County properties is an undeveloped area of 142.92 acres along the U.S. 14 Bypass. The independent appraisal set the starting bid at $1,860,000.
Brunner said Monday he has since received notice from the Brookings municipal government that the current 8-inch sewer line to the area is at capacity and building a 15-inch service line would cost nearly $600,000.
He suggested reducing the appraisal to $1,560,000 Monday and Sattgast agreed.
“We don’t want to set the price too low, because we could be leaving money on the table,” Brunner said.
The other parcel that received a reduction Monday was 7.3 acres with a house and a pole building four miles north of Volga. The original appraisal was $140,000.
Brunner suggested the starting bid be reduced to $127,260 to reflect the cost of restoring electricity service from Sioux Valley Energy to the house, located at 46270 208th Street. Sattgast agreed.
The house, building and land are part of but are being offered separately from a group of four grassland tracts covering 632.7 acres that also will be auctioned the same day. The starting bid for the grasslands parcel is $1,390,000.
A sales sheet for the Volga package on the office’s website says, ” The winning bid will be the highest price individually or as a whole.”