Public meeting on proposed land exchange planned

Roger Larsen of the Plainsman
Posted 9/27/17

Land swaps in Huron and Hand and Spink counties

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Public meeting on proposed land exchange planned

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HURON – A proposed multi-party land swap involving state-owned acres in Hand and Spink counties and two privately owned parcels in southwest Huron that are now leased by the state will come before three public hearings in Miller, Redfield and Huron on Oct. 11.
Commissioner of School and Public Lands Ryan Brunner said he wants to trade 58.5 acres of public lands owned by the state in rural Hand and Spink counties for 7.5 acres of private property listed for sale in Huron not far from the state fairgrounds.
The land in Huron includes the former Huron University practice football field along Ninth Street Southwest and the south half of the former cement plant property at Ninth Street and Nevada Avenue Southwest.
The owner of the two properties is Azkota Investments LLC. Brunner said his office has acquired a purchase option from the owner.
The state Department of Agriculture has been leasing the property for $2,500 per year so that livestock and carnival trailers can be parked there during events on the state fairgrounds.
The two parcels are listed for sale for a total of $104,900.
According to the Beadle County Treasurer’s Office, the property taxes on the Huron property totals about $1,500 a year.

State-owned pasture lands in the proposed deal are 50 acres in Hand County and 8.5 acres in Spink County, valued at a total of $117,366.03.
“The Hand County parcel is valued at $100,000 and the Spink County parcel is valued at $17,366.03, which is where the total cash comes from to pay the seller and make the exchange work,” Brunner said.
“The land in Huron is for sale for $104,900 so we will receive the land and $12,466.03 in cash so that the value matches,” he said. “The state land will be owned by the current lessees who provide the cash based on the appraisals we had done of their leased property.”
Brunner said the land trade makes sense for two reasons: It will give the State Fair a long-term lease so it will continue to have a close location to park the livestock and carnival trailers – something that may have changed had the properties been sold to another buyer – and the land in Hand and Spink counties has limited income.
He said the state Department of Agriculture is supportive of the process.
The land in Hand and Spink counties leases for $612.50 a year compared with the $2,500 lease payment per year the state Department of Agriculture will pay School and Public Lands once the exchange is completed.
“So the end result is trading 58.5 acres of pasture land for 7.5 acres of commercial property plus $12,466.03 cash based on appraisals to make the transaction equal,” he said.
The 50 acres in Hand County is about 20 miles north of Miller. It’s part of a small 160-acre parcel that has difficult access involving going down a mile of unimproved section line and is only partially fenced. The 8.5 acres in Spink County is abandoned railroad right of way that has limited income potential and is a low, narrow piece that is also good to exchange, Brunner said.
“Both the livestock component and Midway carnival are integral to the success of the State Fair and it would not be easy finding another 7.5 acres close to the grounds to park the trailers,” he said.
“Any time you’re leasing property for sale means you do not have operational certainty,” he said.
The transaction will also have to have the approval of Gov. Dennis Daugaard.
The north half of the former cement plant property, at Seventh Street and Nevada Avenue Southwest, is also leased by the state Department of Agriculture.
It has a different owner and is not listed for sale, Brunner said.
He said there may be some interest in buying that parcel at some point later on in a separate exchange.