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Black Hills neighbors concerned over water amid resort sale

September 28, 2017 GMT

LEAD, S.D. (AP) — A ski resort in South Dakota’s Black Hills is being put up for sale at a sheriff’s auction after its owners defaulted on $3.7 million in loans.

The Mystic Miner Mountain Resort’s sale comes in the wake of a July default judgment in state court against Union Resort LLC as well as an Aug. 2 foreclosure judgment.

Judge Eric Strawn awarded Victory Land, the creditors, more than $3.7 million and possession of the property. Strawn said Victory Land can sell the resort to meet the obligations of the debtors.


In addition to its ski area with 850 feet of vertical runs, the resort south of Lead features a 6,850-foot summit and a tubing park, the Rapid City Journal reported .

About 100 homeowners live in neighboring Deer Mountain developments, which are served by the same private water system that served the resort. Some homeowners said they’re concerned because most of the mechanical systems involved with delivering water to residences are located on some of the land up for sale.

“Our water company is a private entity, so if someone buys it, they can do whatever they want with it,” said Shari Kosel, who has lived in Deer Mountain since 2002. “Our concern is being without water. We need our water, a vital component to living. We can’t have 100 homes individually drilling our own wells at this point.”

Kosel said residents are considering forming a sanitation district to take over the water system if necessary.

“My hopes are we could form a sanitary district, purchase it from the new investment concerns and take legal matters into consideration to at least put a stay and maintain our water system until all legal matters and issues are resolved with the sale,” she said.

There has been no update yet on the sale’s outcome.


Information from: Rapid City Journal,