City leaders mulling new, ‘serious offer’ on Kelley home near Lake Mitchell

“We have had an offer that we countered. We got another counter offer back, and we are going to counter again later tonight,” Mayor Bob Everson said at Tuesday’s council meeting

Shown here is the front entrance of the former Kelley house that city of Mitchell purchased roughly three years ago as part of the wetland project to improve the lake water quality. The city has received a new offer on the multimillion-dollar home that officials are considering.
Sam Fosness / Republic

MITCHELL — The former Kelley house appears closer than ever to selling after an offer came in that has city leaders and the local realtor negotiating on a counter offer.

During Tuesday’s Mitchell City Council meeting, Mayor Bob Everson said the city received a “very serious offer” on the $2.2 million home that’s been listed on the market for two years but he did not disclose the dollar figure as city officials and the interested party are currently negotiating on a counter offer.

“We have had an offer that we countered. We got another counter offer back, and we are going to counter again later tonight,” Everson said at Tuesday’s council meeting. “We’re not going to disclose what the offers are yet.”

In addition to the latest offer, Everson indicated that there are others who have shown strong interest in buying the multimillion-dollar home.

“We have some good movement on the Kelley property,” Everson said.


Local realtor Stratton Havlik is the listing agent for the Kelley home. Havlik was at Tuesday’s council meeting to field questions from the council. The lone inquiry from the council asked what the current price tag of the home was sitting at, which Havlik noted was $2.2 million.

The 1,900-square-foot storm shelter would be Mitchell's first facility that can house residents and campers displaced from their homes during severe weather events

When the city listed the 10,095-square-foot house for sale in 2020, the price tag was $3.5 million. Since then, the city has reduced the price of the home several times, with the latest price drop bringing the cost to $2.2 million.

The house comes with about 8 acres of land, a large multipurpose shed and pond near the gated entrance.

The latest offer on the Kelley property comes as interest rates have drastically hiked over the past few weeks. The rate for a 30-year fixed-rate mortgage was sitting at 5.75%, as of Tuesday. Despite rising interest rates, Everson and city officials have remained optimistic that the house will still sell.

The city purchased the large home in 2019 as part of a $4.1 million deal that came with 371 acres of land for the city to build a wetland aimed at reducing the phosphorus and sediment flowing into Lake Mitchell from Firesteel Creek. Although Everson and city officials did not intend to buy the Kelley house for the wetland project, the former owner stipulated the 371 acres of land would only be sold with the house included.

"We bought it for the purpose of building the wetland to help filter out the phosphorus and sediment coming into the lake from Firesteel Creek, so all the profit from the sale will be used to keep advancing progress on improving the lake," Everson said in a January interview with the Mitchell Republic.

Sam Fosness joined the Mitchell Republic in May 2018. He was raised in Mitchell, S.D., and graduated from Mitchell High School. He continued his education at the University of South Dakota in Vermillion, where he graduated in 2020 with a bachelor’s degree in journalism and a minor in English. During his time in college, Fosness worked as a news and sports reporter for The Volante newspaper.
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