Value of Sherman-area property sticking point in ethanol venture

Former governor and congressman Bill Janklow aligned himself Tuesday with an area couple in their dispute regarding a proposed ethanol plant near Sherman.

Janklow represented property owners Delbert and Linda Danielson before the Minnehaha County Commission during a public hearing on rezoning property northwest of Sherman for Buffalo Ridge Energy.

The Danielsons own property south of the proposed 50-million-gallon-a-year ethanol plant, outside the proposed rezoning and are in a stalemate with the company about the purchase price for their land.

Buffalo Ridge Energy has offered the Danielsons $400,000 for their property, which the county assessment values at $130,000.

An appraiser for Buffalo Ridge Energy valued the Danielsons' property at $273,000. Janklow had an informal appraisal done by Gerald Teunissen of Bender Commercial Realty that stated the Danielsons should expect to receive more than $500,000 for their land.

But a lawyer for Buffalo Ridge Energy, Mike Bornitz, said the Danielsons have asked for even more than that.

"They want some $700,000, and they won't budge," Bornitz said. "That's a number that's even well in excess of the offer value that was expressed by Mr. Teunissen."

"We're not trying to kill this plant," Janklow countered. "Believe me, it ought to be built. It ought to be built, but not on the backs of these folks. They're not willing sellers."

Minnehaha County does not have a say in the price Buffalo Ridge Energy will pay for the property. The issue emerged as part of the rezoning hearing. The Danielsons contend that Buffalo Ridge Energy would affect their property negatively.

Return to prominence

Janklow, who now is affiliated with the Sioux Falls law firm of Woods Fuller Schultz & Smith, has been a prominent figure in several recent cases. Earlier this year he represented Austin Wiese of Flandreau, the page who accused state Sen. Dan Sutton of Flandreau of sexual misconduct. He also argued a case before the state Supreme Court in October and has acted as a consultant with the Mayo Clinic in its battle with the DM&E Railroad.

Janklow said Tuesday he is not charging the Danielsons for his work on their behalf. They are not opposed to the plant, he said, but they want a good price for their land.

A motion by Commissioner Jeff Barth to rezone the property near Sherman from A-1 Agricultural to a planned development for the ethanol plant died for lack of a second.

The Minnehaha County Commission, on a 3-2 vote, then deferred a decision on rezoning until its May 15 meeting, giving the ethanol plant owners and a nearby land owner time to reach an agreement on a property sale.

Commissioners Carol Twedt and Anne Hajek voted against the deferral.

"Is that an appropriate thing for us to do?" Twedt said.

"I've never sat through a hearing quite like this where it all boiled down to money," Twedt said later.

Commissioner John Pekas expressed sympathy with the Danielsons who, like his own grandparents, he said, built their own home and now were looking at losing it.

Hajek asked Janklow whether anyone is forcing the couple to leave their home.

"Any reason they can't stay there? Any reason they have to move?" Hajek said.

"Nobody's going to come sweep them off their land with a bulldozer, but it's going to be, for all practical purposes, a place where nobody wants to live," Janklow said. "Sure, they can stay there. They stayed at the Alamo."

30 to 35 jobs possible

Commissioner Bob Kolbe several times questioned whether the board had any role to play in the battle between Buffalo Ridge Energy and the Danielsons.

Janklow, who said he has invested in ethanol plants in four states, said he disapproves of how Buffalo Ridge has handled this property transaction.

But Bornitz said this is not a case of "the big, bad ethanol company stepping on the little people."

"This is an endeavor that will create 30 to 35 new jobs, 30 to 35 well-paying jobs."

Almost lost in the battle between Buffalo Ridge Energy and the Danielsons were those who testified both for and against the ethanol plant.

Two nearby residents, Randy Pierret and Ron Neels, said they do not want the ethanol plant in that location.

"I would not like to see it there," Neels said. "I think there are better locations for it, you know, farther away from Split Rock Creek."

Shannon Nordstrom of Garretson and Ann Thiel of Sherman spoke in favor of the rezoning.

Nordstrom, a member of the Garretson Commercial Club, said many people support it.

"Northern Minnehaha County's looking for a boom, and we see this as a great opportunity."

Reach reporter Jill Callison at 331-2307.