South Dakota DOT offers two parcels near Summerset for sale; city to explore purchase or trade

Representatives from the South Dakota Department of Transportation on Wednesday told the Summerset City Council the agency is offering two parcels of excess DOT property inside city limits for the city’s first right of refusal and that trades or phased purchases are common.

DOT property manager Scott Fretzer told the council the two parcels under discussion include one of about 5.52 acres and a second “a little over 13 acres” located near the 3 Flags campground and Exit 52. Fretzer said DOT had completed appraisals and would share the appraisal figures with city staff when they are available.

City staff said they had visited the sites with Fretzer and with a representative from the regional planning organization. Staff described the larger parcel as having potential for commercial use because of adjacent development on Norman’s 60 acres. Staff and DOT discussed the possibility of a road‑swap: the city taking responsibility for a local road in exchange for a reduction in purchase price or phased acquisition of the DOT parcel.

Economic development staffer Brenna Buck asked whether DOT would accept a phased acquisition, for example buying 15 acres now and 15 later. Fretzer said there is “a lot of flexibility” in DOT transactions, and that deeds are issued only after payment is complete but that trades and staged arrangements were possible.

Council members and staff pressed the DOT representative about site conditions. Fretzer said he had seen nothing on site that “needed any attention” during his visit, and that the agency was performing an appraisal and would ensure the appraiser considered access, public easements and any restrictions. Council members also raised local questions about an old cement plant site and about a rumored abandoned gypsum mine under nearby ground; Fretzer said those were matters he would try to check with regional staff and the appraiser.

Council directed staff to continue conversations with the DOT area engineer and to collect appraisal values, access and environmental information and potential swap options, then return with a recommendation. The council agreed to maintain an email thread among staff, the council and DOT to avoid repeated agenda‑to‑agenda updates.

The matter was not finalized; Fretzer said DOT can delay a decision and that the city has the first opportunity to consider the parcels.