CUSTER, S.D. – The Custer City Council unanimously approved a resolution to transfer approximately five acres of city-owned land to the non-profit corporation Custer Cares. The land, a portion of Tract Hospital 1, is designated for developing long-term health care workforce housing.
The resolution, identified as #09-08-25A, was passed during the council meeting on September 8, 2025. The council’s decision is aimed at supporting long-term healthcare and providing housing opportunities for healthcare workers in the Black Hills. The city council determined the land transfer is in the public interest, as the establishment of workforce housing near the nursing home will help recruit and retain qualified employees.
The land transfer is subject to several conditions. A survey of the property must be completed, and the plat needs approval from both the Planning Commission and the City Council before the transfer is finalized. Additionally, Custer Cares must enter into an agreement with the city stating that if the property ceases to be used for long-term health care workforce housing, ownership will revert back to the City of Custer. The city will also retain the right to reclaim the northern portion of Tract Hospital 1 if it remains undeveloped and is needed for future housing development.
The resolution also extends the city’s financial support for Custer Cares for an additional year. This will provide a fourth year of annual funding in the amount of $347,000 for fiscal year 2028. This is an extension of a previous resolution from July 2023 that allocated 75 percent of one penny of the city’s sales tax, up to $347,000 annually, to Custer Cares for a three-year period. The provisions of the new resolution are contingent on Custer Cares remaining in compliance with all applicable laws and city agreements.
The meeting was called to order at 5:30 p.m. by Mayor Robert Brown and was attended by all council members: Pechota, Jenniges, Ryan, Fischer, Nielsen, and Whittaker. Following the unanimous approval of the land transfer, the council held a brief budget work session. The meeting was adjourned at 5:38 p.m.