Owner works to save failing downtown building

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The owner of a crumbling downtown building has come up with a last-minute effort to save the property from demolition.
Jim Zandt, who owns the building at the corner of Wind Street and Second Avenue, has hired Dave Obenauer, owner of High Rise of Sioux Falls, to fix the building and put the stone blocks back on it. He brought the plan to the Flandreau City Council at a special meeting on July 8, a meeting initially planned for approval of a bid for demolition of the building.
“I fix a lot of these old buildings like this,” Obenauer said, referring to work he has done in Hartford and in Jaspar and Pipestone, Minn. “I know how to do it.” He said he has been in the building twice and could repair the building in 12 weeks, but first he wanted to get inside to look behind the interior wall to see what is failing.
The building started crumbling in March when block fell off the south side. Since that time, it has been fenced off at the street level and has hindered neighboring businesses. In May, the council declared the building a nuisance and gave Zandt 45 days to fix or tear down the building. Since the beginning, Zandt said he would like to save the building but hadn’t found anyone who would do the work. He also said he didn’t have the money to do the project.
The 45-day period ended July 7, at which time the city could do whatever it needed to take care of the public danger from the crumbling exterior. In preparation, the city had looked into asbestos removal and had entertained bids for demolition and removal of the building.
Claflin Excavating of Flandreau submitted the only bid, which was for $172,525. At the most recent meeting, the city tabled the bid, postponing awarding it until Obenauer can look more closely at the problem and possibly fix it.
Allison Claflin said her husband, Ernie, has plenty of work in the meantime, and their company would still honor the bid if the city changes its mind. “Ernie is willing to do this. He’s willing and capable.”
Asbestos removal and demolition would take about eight weeks to complete, according to the city’s schedule.
After discussion, the council voted unanimously to give Zandt a chance to save the property. The conditions include getting a report back from Obenauer in a week and have an engineer sign off on it. The timeframe would give the council a chance to find out more about his other projects.
Several council members also criticized Zandt for waiting so long to find someone to do the job and quizzed him on how he now has the money for the project.

“I’m very disappointed in you Mr. Zandt. Everything has expired,” said Alderman Dan Sutton.
“I’ve tried to find somebody all along,” Zandt said. He now has the money for the project that is expected to cost less than $100,000 because he sold a couple of apartment buildings in Sioux Falls, he said.
Several council members said while they are hesitant to let the building issue continue, they also don’t want to spend the taxpayer’s money to tear it down.
“I think we need to take a look at this. I don’t think we say, ‘No, we’re going to put it in the ground and spend $200,000,’” said Alderman Brad Bjerke. “I think everybody wants it saved. We just need to see that it’s done property and in a timely fashion for the businesses in the city.”
Most council representatives were hesitant but agreed that saving the building would be best.
“I all along wanted to save the building. I wanted Mr. Zandt to find somebody to fix it,” Sutton said, adding that the city doesn’t have references for Obenauer and all engineers who have looked at the building have said it is not salvageable. “This is the first chance I’ve heard of anybody coming in and saying it can be saved.”
Mayor Mark Bonrud said he doesn’t want the issue to come back again. “I do not want to spend $200,000 of the city’s money to demo this. But I also want some guarantee this is going to get done and done right,” he said.
Alderman Jason Unger called the situation a disaster that has come about because of years of neglect. He made the motion to extend the deadline for abatement for a week.
“I would love to not spend money on this project, I would love to see this building restored,” he said.
Obenauer, who said he has fixed collapsed walls before, said when the building is fixed it will generate taxes for the city and won’t mean a bare lot downtown.
“I would have been here sooner had I known about it,” he said.
He will start by getting inside and securing the roof rafters. He will then begin to reassemble the building and put the block back on it. The floor joists haven’t been compromised, he said.
“It just takes a little labor and love. We’ve got the equipment to do so,” he said.
He said it is important to stabilize the building immediately so no more block comes down. “If any more of that wall comes down, we don’t want it pulling on the east side,” he said.
“I was hired to fixed it, and I can do it. When it’s all said and done, you’ve got a nice building sitting there again,” he said. “Nobody can afford to build a building like this again.”
Councilors also were concerned about the building further hurting neighboring businesses but said the time to either fix or tear down the property is similar.
A tremendous amount of business has been lost, said Alderman Bob Pesall. “It’s to the point where some of them are at the edge of their rope. I don’t know if some of them are going to make it to the end of the month,” he said.
“Those businesses have suffered. They’re struggling to keep their doors open because of the mismanagement of that building,” Sutton said.