Board approves agreement with West River Foundation to sell house built by building trades

The Spearfish School District board on Feb. 10 approved an agreement with the West River Foundation under which the foundation will purchase a house built by the district’s building-trades program and handle its sale.

Under the agreement, the West River Foundation will also buy a lot through the city at Sky Ridge, fund foundation work and moving expenses, and pay to put in the house’s foundation. The district’s stated role is construction and transfer; presenters said the district cannot operate as a developer or realtor and therefore needs an outside entity to handle sale and listing.

The agreement text presented at the meeting specifies that, upon sale, proceeds will be distributed first to reimburse the district for supplies, materials and equipment rentals and to cover specified project expenses; remaining proceeds would go to the foundation. Board discussion included a question about whether the foundation could be encouraged to sell the house to an educator. A district representative said both parties' attorneys advised against creating buyer-preference language that could raise fair-housing or other legal issues.

“It says in here…upon the sale of the completed residential house and lot, proceeds shall be distributed as follows. We’re reimbursed for supplies, materials, equipment rentals,” a board member said, summarizing the agreement language. Another board member asked whether the foundation would then make a donation back to the district if proceeds remained; the board member said an informal understanding existed but the agreement did not require it.

Board members approved the agreement by voice vote; no opposing votes were recorded on the transcript. The board thanked representatives of the West River Foundation during the discussion.