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Lennox council debates buying 609 South Main, cautioned of about $200,000 loss if city retains house
Summary
Council members discussed acquiring 609 South Main to expand parkland but expressed concern about an estimated roughly $200,000 net loss if the city keeps the existing house; options discussed included auctioning the structure, moving it, or acquiring alternative parcels near Casey's and Jerry's.
Lennox council members debated whether to pursue a purchase of 609 South Main on Tuesday, with staff warning the city could absorb a sizable loss if it acquires the lot and the house remains with the property.
Nate, who briefed the council, said after consulting with a local real-estate expert the city should 'expect to see a loss probably around $200,000' if it pursues the property as-is. He described options including auctioning the house and making sale terms contingent on the buyer relocating and renovating the structure, or the city buying the lot and paying to move and rehabilitate the house itself.
Why it matters: The parcel lies adjacent to the park system and could expand parking and pedestrian amenities; council members said acquiring it would advance long-term park goals but would strain capital budgets already committed to projects such as the Bridal Avenue work and vehicle purchases.
Council members raised feasibility questions and alternatives. One member asked whether the house could be moved; another reported contacting Sioux Falls planning staff, who said their city typically auctions houses and leaves moving and rehabilitation to the purchaser. The council heard that a private buyer generally bears the renovation costs if a house is sold by auction, while a city-led relocation and rehabilitation would require public bidding and likely be more expensive.
Financial and logistical detail: Staff said moving the house, setting it on a new foundation and doing the necessary updates could cost in the hundreds of thousands of dollars; in the meeting Nate noted a figure 'between $530,000' to move and place the house on a new foundation and then sell it, and cautioned that city procurement would add costs compared with private development. Members also recalled recent lot purchases in 2024 and reviewed past prices to estimate potential resale or subdivision value if parts were later conveyed for commercial uses.
Alternatives and next steps: Several council members urged completing or re-engaging a master park plan before making a major acquisition to better prioritize parks investments; staff estimated such a study would take about nine months. Others said the purchase is a 'nice to have' rather than a critical need and recommended monitoring the seller's intent and market pricing instead of making an immediate offer.
Outcome: The council did not vote to purchase or make a formal offer during the meeting. Members agreed to continue monitoring the property and seller interest rather than commit city funds or bids at the current asking price.
