American Legion foreclosure leaves hole in community

Government moves to take over Wessington Springs property for failure to pay mortgage.


The American Legion Willman-Fee Post 14 in Wessington Springs after it was struck by a tornado in 2014. (Courtesy photo)

When a tornado hit the American Legion Willman-Fee Post 14 in Wessington Springs in 2014, it was the start of a tumultuous decade for the organization.

The Legion community rallied to build a new building, taking out a loan from the Small Business Administration. But now, that has proven to be a step too far.

The U.S. Attorney’s Office in South Dakota has filed a lawsuit against the post, seeking to foreclose on the property and sell it off. The original loan of $691,500 matured on June 9, 2045, and required the post to make monthly payments of $2,904. But no payment has been made since Nov. 10, 2022, the government alleges.

As of October, the outstanding balance on the mortgage was $643,176, according to the litigation, and interest is accruing on the loan at $44 a day. Meanwhile, the building itself has an estimated value of $545,000.

“Defendants’ material breach of the terms of the note and mortgage damaged plaintiff and entitled plaintiff to exercise its rights under the terms of the note, mortgage, mortgage, state, and federal law to foreclose on the mortgage sell the property that secures the note, and recover amounts owed to SBA,” the government says in its lawsuit.

Named after fallen World War I veterans John Willman and Glen Fee, the post has been a center of town life for more than a century. Darold Rounds, a trustee for the post, said it suffered from declining membership. That led to a reversal of fortunes.

“There are a lot of people out there who could join but they do not,” Rounds told The Dakota Scout.

The American Legion Willman-Fee Post 14 in Wessington Springs as it stands today. (Courtesy photo)

That’s true nationwide. Membership in both the American Legion and Veterans of Foreign Wars has atrophied, along with the number of men and women who have volunteered to join the military. Following the military’s move to an all-volunteer force in the 1970s, fewer people served their country.

Meanwhile, Rounds noted, some of the Gulf War veterans and veterans of more recent conflicts haven’t joined.

It’s unclear how large the loss is in South Dakota. Kevin Morello, the legion’s South Dakota commander, did not reply to a message seeking comment.

Just 6.1% of the civilian U.S. population is a veteran, according to the U.S. Census Bureau, although South Dakota has a higher rate of 7.8%.

American Legion and VFW posts have been a source of cohesion in small, rural communities together, where people could socialize, hold events, grab a meal and maybe a drink. The Willman-Fee Post 14 in Wessington Springs was home to the Prairie Lounge, a longtime restaurant that was rebuilt following the tornado. It was a place where a person could grab prime rib and a beer.

As early as this fall, efforts were being made to reopen the restaurant, according to the post’s Facebook page. But they were delayed and eventually abandoned.

In retrospect, Rounds said, “We built a new building and got carried away. It’s nothing that anybody did wrong. It’s just that we can’t make the payments.”

Rounds is hopeful that somebody will buy the property at a low enough investment price to reopen the restaurant to the public.

The 80 to 90 members of the post will continue to meet, he added, and the post hopes to sponsor a legion baseball team next year and continue with other activities.

“Our legion is not closing,” he said. “We just don’t have a building anymore.”