Lodge expansion permits approved

Building permits for the  K Bar S Lodge expansion were approved by trustees at the Sept. 17 Keystone Town Board meeting. The approval is conditional on the town sewer upsize project, and the property cannot connect to the sewer until the upsize project is completed. The permit refers to four three-bedroom structures, nine two-bedroom structures, a clubhouse amenity building, a swimming pool with hot tubs and two pickleball courts. 

Trustee Will Parks explained his support of the expansion only with the contingency in place.  Trustee David Cofoid agreed. 

The sewer upsize project should go out to bid Nov. 21. Keystone public works supervisor Jerzy Przybylski said the South Dakota Department of Transportation is also waiting for the upsize project to be complete to access its own projects in Custer  State Park. 

“We’re kind of all wanting to get this done,”   Przybylski said.

Josh Button is overseeing the Tax Increment Finance project for K Bar S and plans on meeting with all neighboring land owners. 

Discolored water in town is a result of well four being more shallow than  well five. Well five is actually pulling “dirty” water from well four, according to   Przybylski, who is looking into deepening the well.

“Otherwise it’s gonna be pretty much useless,”   Przybylski said. 

Well four has been shut down in the interim.

The Bed, Board and Booze sales tax is down 6.1 percent from last year and the first and second penny are down 4.4 percent.

The Mount Rushmore Half Marathon drew 540 racers into Keystone, and the city tourism director  is already working with Vacation Races to promote next year’s event. Vacation Races is donating $400 to the Keystone Historical Society (KAHS) whose board members wore presidential costumes at the race finish. A preliminary meeting is scheduled with the South Dakota Department  of Tourism regarding the 250th anniversary of the country next summer. 

Trustees are asking for a recount of poles for a proposed Welcome to Keystone banner project. The banners would have gone on every pole in town, estimated at 75 light poles, but Parks wonders if that many banners would be “overbearing,” requesting a new quote for every other pole. Quotes ranged from $12,000 to $16,000. 

Trustees approved the second reading of the 2026 budget.

Trustees also approved citizen Sandi McLain’s request to complete an application for the Deadwood Fund Grant, which requires a resolution from the town for matching funds, if it is granted. 

The Keystone Museum is closed for the season, but KAHS board president Deb  Dargatz said the museum had a “great year.” The museum received 3,278 visitors during the season,  had $7,597 in sales and $4,141 in donations. The KAHS is considering keeping the museum open longer next season. 

The board is allotting $2,500 to catalog its inventory. It is also hoping to revive the Living History program via a Daughters of the American Revolution grant. 

“We really want to see that program revived next year,” Dargatz said. She said the board hopes to give teachers a stipend to attract them to participate.

Board president Casey  McNulty said some of the windows at the museum need to be replaced.  McNulty’s company is donating materials for repairs that need to be made to the one room schoolhouse.

The Keystone Senior Center will host a painting class Oct. 3. The cost of the class is $35. It is still hosting its first Friday lunch  and first Sunday brunch and  looking for new members and community ideas. 

The next Keystone Town Board meeting takes place Oct. 8 at 6 p.m. Note the date change.