Star Academy
Where do we start?
Boy oh boy,
this is/seems to be an appropriate subject to write about! I’ve had several people contact me and want
me to write an article looking for a pound of flesh. Not going to happen, and it is not
necessary. Let me try, to the best of my
recollection, document what happened to Star Academy, and where do we go from
here. Fair enough?
Where do we start? How about here. In March 2016, then Gov. Daugaard announced that Star Academy will be closing within the next month, that month being April 2016. At that time, the facility was down to 5 juvenile residents, with a staff of 64 full-time personnel. We have a staff of 64 with 5 residents? Only in state government, where FTEs use other people’s money, ie: your tax dollars, would a situation get this wasteful and inefficient.
Now others argue that the reason the facility was down to 5 residents was that the Daugaard administration purposely diverted juveniles from being sent to Star Academy. I think this argument is legitimate and isn’t complimentary to the Daugaard administration. Instead of sending juveniles (I keep wanting to say “delinquents”) to Star Academy, they were sent to community-based programs or back into the community, or with a simple slap on the wrist, but that’s an argument for another day.
Fiscally, a staff of 64 overseeing 5 individuals isn’t prudent, and is a very poor use of our tax dollars. I also question why it took from April 2016 to October 2017 to hold the first auction.(?) Star Academy still had a budget of $500,000, which was used to keep the facility running. Rep. Frye-Mueller and I visited Star Academy because we thought $500K was outrageous, but we both left understanding that this was possible.
Where are we? On Oct. 2018, the state attempts to sell Star Academy. No bids. School and Public Lands Commissioner Ryan Brunner advertises the sale again with a 2nd auction announced for Jan. 4, 2018. He also sets the lowest bid acceptable at $2.34 million.
Rep. Frye-Mueller and I again attended the (2nd) auction, held at the Custer courthouse. At the 2nd auction, Commissioner Brunner makes a few remarks, including 10% due to the state of South Dakota by the highest bidder, and turns the bidding over to the auctioneer. Backing up, two potential buyers visit with Rep. Frye-Mueller and myself about possibly buying the facility. So, the bidding begins and just like the first auction, no bids. The courtroom is full, but nothing is happening.
I ask for a 10-minute recess. After much discussion between Commission Brunner and Governor Daugaard’s a ttorney Hunter Roberts, (I keep wanting to call him Hunter Douglass, you know, the blinds?), the auction stops and a 10-minute recess is in place. Julie stays in the room to make sure it doesn’t start up without me, and I go into the hallway with the two potential buyers.
Jared Carson, representing a group of local businesspeople, whom we later learned were SLIC-E Holdings, LLC, stated that he was prepared to make the minimum bid of $2.34 million. The other party decides not to bid. This discussion took place with only the 3 of us present. At that point, we go back into the courtroom and the bidding is re-opened. Jared Carson made the minimum bid of $2.34 million with no other bids placed by anyone else. With the minimum bid of $2.34 million, Star Academy was declared sold.
The terms that took place: 1%, not 10% that all present thought was due, was paid the day of the auction, $23,400. $100,000.00 was paid to the state in February 2018, and $227,600.00 being paid on the closing date of May 1st, 2018. This totals $351,000 paid by SDLIC-E Holding, LLC to the state of South Dakota.
My understanding is that the state entered in with SDLIC-E Holding, LLC a Contract For Deed, with $115,000 being due each May for ten years, with a balloon payment at the final payment 10-year mark. So, what happened? In May 2019, the state received a check for $115,000, but were told the funds were not available. Consequently, a late charge was implemented, and the state received a check for $116,588 on September 5, 2019. This check did not clear due to insufficient funds. Since then the State of South Dakota has repossessed the entire Star Academy campus and put it under the control of the Department of Correction. The state kept the $351,000. So, what do we do now?
Basically, there are 3 options:
1)Lease out the facility.
2)Re-sell the facility.
3)Repurpose the facility.
Option 3 does have a lot of merit with some type of drug treatment, along with a juvenile reformatory/residency as it was before. So, what do you think the state should do with the facility?
To the citizens of District 30 and to the men and women in uniform, in honor of all who served, in respectful memory of all who fell, and in great appreciation to those who serve today, Thank You, for giving me the opportunity to represent you.
Tim R. Goodwin, District 30 Representative
Facebook: Goodwin In The House

