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Mitchell City Council to consider offer on former Kelley home, person behind offer remaining anonymous

Mayor Bob Everson said the city received a "serious offer"

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Shown here is the front entrance of the former Kelley house that city of Mitchell purchased in 2019 as part of a land agreement for a future wetland project. The Mitchell City Council will consider approving the sale of the $2.2 million home on Monday after the city agreed on a new offer this week.
Adam Thury / Republic
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MITCHELL — The former Kelley house could be sold Monday as the Mitchell City Council will consider approving an offer on the multimillion-dollar home that came in earlier this week.

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

Everson said he and city officials do not know the identity of the person who made the offer that's on the table due to the offer being done with anonymity through a local realtor and attorney, which is a process that buyers can utilize when purchasing property. The council will consider green lighting the latest offer at a 5 p.m. special meeting on Monday at City Hall.

“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.”

When the city listed the 10,095-square-foot house in 2020, the price tag was $3.5 million. The property was listed for sale with Exit Realty, a local real estate company. Since then, the city has reduced the price of the home several times, with the latest price drop bringing the cost down to $2.2 million.

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The listing of the house, located about 2 miles west of Lake Mitchell, includes a little over 8 acres of land, a large multipurpose shed and pond near the gated entrance. Any realtor in the state could sell it as well since it was a multiple listing.

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Shown here is the back of the former Kelley house that city of Mitchell purchased in 2019.
Adam Thury / Mitchell Republic

While being on the market over the past two years, the city received a roughly $1 million offer a few months after listing it for sale and had several interested parties tour the home. The city ultimately decided to decline the roughly $1 million offer in 2020 when the house was listed at $3.5 million at that time.

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.

Everson said the profit from sale of the home will be used for Lake Mitchell restoration work.

While city officials were eager to acquire the land and begin the wetland project, selling the home in a timely manner was a caveat of the 2019 purchase. The city has utilized Parks and Recreation officials to maintain the large house and property over the past three years.

"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.

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Shown here is the garden gazebo of the former Kelley house that city of Mitchell purchased in 2019.
Adam Thury / Mitchell Republic

Related Topics: MITCHELLBOB EVERSONREAL ESTATELOCAL GOVERNMENT
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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