State Representative Tim Goodwin is lamenting on his website that he has a number of questions about the third attempt at selling what used to be known as Star Academy:
So, now after 13 months since the repossession, it is going on the auction block. I have a few questions.
-Why wait 13 months to re-sell? I’m sure the School and Public Lands answer is that they needed another appraisal.
-Why does it take 13 months for an appraisal?
-What is the cost to us taxpayers for this appraisal, and the appraisal when it sold in January 2018?
-Is it true it costs the state $351,115 to maintain the facility while it sits empty? (I got that figure off of the School and Public Lands website.) This is all the more reason to have a sense of urgency and sell the property, right?
I guess I hadn’t realized that Rep. Goodwin went out and got his Real Estate Appraiser’s license, since he considers this a long and drawn out process. (Last time, the sale was going through too quickly.)
Never mind it’s only been about 10 months since the final deadline was exhausted for the prior owner. And since then we’ve been in the middle of the COVID mess, and there was the issue of the residential leases for families at STAR Academy until March 1. It probably took until now to get them out and to complete appraisals.
If you’re an investor who might sink the kind of money into a property of that size, due diligence requires full appraisals. Not guesstimates.
What critics don’t seem to understand, as Goodwin questioned above, yes – it does cost the state $351,115 to maintain the facility while it sits empty. It’s not a lake cabin that you put into cold storage over the winter. Even lake cabins deteriorate if not occupied and maintained.
Now imagine it 100 times or more larger in size and exposure to the elements. You might be getting close to the albatross that the state would like to be rid of. And should I mention, due to its construction and age, this albatross more than likely has pipes and other parts with asbestos.
If it was bare land, selling it would be a breeze. But, it’s not bare. And to knock it down and make it bare will require an investment of millions – and that’s a cost over and above the sales price. You can cover those asbestos insulated pipes when it’s being inhabited, but when you do demolition, you can’t just knock it down, you have to account for taking that mess out.
And who is ready to buy it? Sorry. I must have misplaced my $2 Million. Mr. Local Banker – would you loan me $2 Million? Ok… You want to see a current appraisal? And on a commercial property, you need 20% down?
Most people don’t exactly have that laying around. And the very small universe of people who do have that kind of cash are also looking at other properties they can choose from that are likely more profitable, closer to population centers, etcetera.
This is definitely not an easy sale. Remember when I referred to it as an albatross? It’s an albatross located in a county of about 8500 with relatively flat population growth.
The Office of School & Public Lands is doing yeoman’s work in dealing with this boomerang property which they keep getting back. If reducing the price slightly gets it sold, then it’s a justified reduction of value. Otherwise we – as in you and me – are going to continue to be on the hook for it.
Honestly, as a taxpayer, I think the state might consider a fire sale or a creative donation of the land if they can find someone who would agree to put the money into it to develop the property, and either pay the tremendous amount of upkeep or knock the unusable buildings down and ameliorate any hazardous conditions.
At 350K annual costs to keep the place up, based on a 2 million dollar price tag, the state could pay itself back in a little over 5 ½ years for what it would otherwise costs that taxpayers for a property that will continue to go downhill if unoccupied.
By then, whoever takes it over might be able to turn it into a property that returns taxes to public rolls instead of being a sucking black hole of expenses that the state is challenged to sell.
Iets donate it to a pharma manufacturer with a penalty clause of 2 million if they occupye it less than 20 yrs
This type of thing from some legislators used to drive me crazy before I retired. His questions have answers and could be answered by simply asking the agency. Why write a question and guess the answer?
Also it took me all of two minutes to find in state law where auctions are required to be at the county courthouse. A five minute phone call or email would have answered his questions and he could have put the real answers in his post and informed the public instead of guessing.
Can you say “pandering to your District 30 voters”?
Total agreement with Retired, these questions could all be answered rather quickly by calling the School and Public Lands office in Pierre. However, Goodwin thinks its best to try to get District 30 folks to think he’s looking out for their best interest when in fact, he’s already running for re-election in 2022.