Offer made to acquire closed campus
Posted: Saturday, September 03, 2005
PIERRE, S.D. (AP) -- A nonprofit group has made a proposal to buy the closed Si Tanka University campus in Huron and resurrect it as a national college that focuses on American Indian students, former state lawmaker Ron Volesky said Friday.
The National Native American Education Corp., formed primarily by Volesky and his brother, Gary Montana, of Osceola, Wis., put in the bid, said Volesky, also an attorney.
"The proposal has officially and formally been made," he told The Associated Press.
Volesky said closure of the college was a blow to Huron, and he would like to resurrect it as a "first-rate, four-year university" with an emphasis on Indian students.
Volesky said he cannot disclose details of the proposal.
"I can't go beyond the fact that an offer has formally been made," he said.
"The terms and conditions of this proposal and any further proposals and negotiations regarding terms and conditions of the purchase price, financing and repayment shall remain confidential," Volesky added.
Si Tanka University in Eagle Butte bought Huron University in 2001 and created Si Tanka-Huron, but classes in Huron ended in early March when teachers and staff walked off the job after months of financial troubles.
In early April, the college filed for bankruptcy protection. It defaulted on $6.6 million worth of loans and faced a $2 million federal tax lien.
The Farmers and Merchants branch of the First National Bank of Huron bought the property for $3.9 million at a sheriff's auction in July. Since the bank holds the mortgage on the property, no money changed hands.
Volesky said the U.S. Agriculture Department also is involved because it guaranteed loans for the former university.
The National Native American Education Corp., formed primarily by Volesky and his brother, Gary Montana, of Osceola, Wis., put in the bid, said Volesky, also an attorney.
"The proposal has officially and formally been made," he told The Associated Press.
Volesky said closure of the college was a blow to Huron, and he would like to resurrect it as a "first-rate, four-year university" with an emphasis on Indian students.
Volesky said he cannot disclose details of the proposal.
"I can't go beyond the fact that an offer has formally been made," he said.
"The terms and conditions of this proposal and any further proposals and negotiations regarding terms and conditions of the purchase price, financing and repayment shall remain confidential," Volesky added.
Si Tanka University in Eagle Butte bought Huron University in 2001 and created Si Tanka-Huron, but classes in Huron ended in early March when teachers and staff walked off the job after months of financial troubles.
In early April, the college filed for bankruptcy protection. It defaulted on $6.6 million worth of loans and faced a $2 million federal tax lien.
The Farmers and Merchants branch of the First National Bank of Huron bought the property for $3.9 million at a sheriff's auction in July. Since the bank holds the mortgage on the property, no money changed hands.
Volesky said the U.S. Agriculture Department also is involved because it guaranteed loans for the former university.
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