Aaron Traffas: Hello and welcome to Purple Wave’s Auction Podcast. My name is Aaron Traffas. We’re conducting a retirement auction for Kelley Construction in Pierre, S.D., that will close on July 18. I’m speaking today with Mike Kelley about his retirement auction. Good afternoon, Mr. Kelley, and thanks for joining me.
Mike Kelley: Sure. It’s nice to be with you today.
AT: I understand your family’s been in the construction business for a very long time. Tell me about your company and how you got started.
MK: My dad started the company in 1946 when he got out of the service. His brother, Tom, later joined him in the company – and his father. I joined in when I was out of school in the mid-60s and have been with the company ever since. My dad retired around 2000, as did Tom. I’ve been running the company since around that time. I have a brother in the business with me and three sons. I’m retiring. My brother wants to do something else, so it was up to my sons whether they wanted to continue with the business and they opted to do some other things. We’re having a sale and shutting her down.
Kelley Construction retirement auction flyer
Tell me a little bit about the business itself. What geographies did you serve and what kinds of projects have you completed in the past?
Historically, we work within about a hundred-mile radius of Pierre. Anything beyond that, given our location here in the center of the state, you start to get closer to the bigger towns that cover those areas. That hundred-mile area has worked well for us. We’ve built a little bit of everything. We’re predominantly commercial construction, so mostly commercial buildings – we built a school in White River. We built a fertilizer storage building in Onida. We’ve been around the area. We’re mostly commercial. We built all the banks in the Pierre area, with the exception of two, I think, over the years, and all the branch banks and the YMCA and just a lot of commercial stuff and a lot of specialty type construction. We’ve made a pretty big imprint.
You explained why you’re having an auction. Deciding how to sell your equipment after such a long and successful career couldn’t have been easy. Why, in the end, did you elect to use Purple Wave?
Well, actually, a good friend of mine Gary Johnson, over in Ft. Pierre, had an auction with Purple Wave and he recommended them very highly to me. He said they were very well organized and a very well run operation and could do the things that probably we really weren’t set up to do when it came to organizing the auction. I just liked the idea and I liked the fact that it worked so well for Gary and that’s how we hooked up with James.
I see nearly 300 lots listed at purplewave.com for this auction. Tell me about the different types of equipment and materials we’re selling.
2006 Bobcat S130 skid steer
Well, we’ve got a little bit of everything. We’ve got backhoes and loaders. We’ve got a couple forklifts. We have a small motor grader that’s proving to be a draw – a lot of interest. We have a Schield Bantam crane from 1964 that’s still operational and still a good crane. We have a selection of trucks – dump trucks, flatbeds, box trucks. We have a couple of skid steers. We have a tractor with a hydra hammer on the back. We have a lot of concrete forms. We have a lot of concrete tools. We have a power screed for concrete. We have a lot of metal shop equipment – metal bending, metal cutting equipment. We have a lot of hand tools, both carpentry hand tools as well as mechanic hand tools, and compressors and other shop equipment. We have a couple of old lathes that are in good working order and have been used a lot by carpenters around here – pretty much a selection of any type of construction equipment. We have a small sweeper and the two forklifts – one’s a large outdoor forklift, the other one’s a warehouse-type forklift – that both operate well. We’ve got a lot of cords – a lot of safety equipment. The concrete forms, the foundation forms, are a complete set with all the accessories that go along. You know if somebody’s wanting to get into doing concrete foundational work, this set of forms has everything you need to do a complete job, so we expect to draw somebody that’s looking to do that. That’s kind of a cross section of everything.
Tell me about the condition of the machinery. Has it been fairly well maintained?
Allis Chalmers motor grader
It’s been maintained well. It’s in good running order. Some of it hasn’t run for a few years, but everything started when we pulled the stuff that hadn’t been run for a while. Everything started up and was moved around and put in its position. Some of them have a lot of years on them – 1968 trucks, you know, are going to probably have some issues. But, around town, the trucks, the way we use them for around town to haul gravel, haul snow, haul whatever – they work well. The tractors and the pickups and all those things are well maintained. The 2001 pickups – the Chevy and the GMC – are in very good condition and have been operated right up until the time of the sale. All in all I think everyone’s going to find that everything’s in pretty nice condition, given its age, of course, and accepting the fact that the ones that maybe have sat for a while might need a little tune-up before they be put online somewhere.
Everything is listed at one location. Tell me about about it. Is it easy to find and access?
1991 Case 590 Construction King backhoe
It’s easy to find. It’s on one of the main streets that goes clear through Pierre. If you come in across the bridge – if you’re coming in from the west or the south and you get across the bridge, you turn off the bridge on Dakota and you stay on Dakota Avenue all the way through town. We’re on the far end of town. If you come in from any other direction – actually, you can probably see the Harvest States grain elevator from about anywhere, and we’re located right next to the elevator on Dakota Avenue at 1812 E Dakota. It is pretty easy to find.
We’ve listed open inspection periods on July 16 and July 17 from 8 a.m. to 5 p.m. each day, during which time anyone can come in and take a look at any of the equipment or tools or materials. If, for some reason, those times didn’t work for someone, what would he need to do to take a look at the assets outside of those inspection periods?
They just give me a call. My number’s listed on the website as well as my brother’s. You can call either one of us and make arrangements for one of us to stop down and show you around and open up the warehouse to see the stuff in there. A lot of everything is outside anyway, so it’s not too hard to look at, but we’d be glad to stop down if somebody needs us to come down.
Well let’s talk about after the auction. Once someone has made payment to Purple Wave and has an invoice in hand, what does he need to do to come in and pick up the assets? Will there be load out assistance and what kind of time frame are we operating under?
1964 Schield Bantam crane truck
We’re going to keep the forklift here – that’s in the agreement that we’re going to keep the forklift here until everything’s picked up so that we can provide load out assistance. We’re asking that everybody have their items picked up by August 1. We want to have everything cleared up by then and then, at that point, we’ll expect to turn the forklift over to the high bidder. If there’s a specific type of load out assistance needed – I’ve talked to a couple of the bigger operators around here with some big trailers and things if we need to help somebody get something up on their trailer – I guess there isn’t anything that can’t be figured out.
Mike, is there anything else you want to say about the auction?
No, other than that I’m really looking forward to it – looking forward to folks coming down for the open house. I want to thank Purple Wave for everything they’ve done. They’ve helped us out a lot. James has really gone the extra mile to help us get this set up. I appreciate everything you guys are doing for us.
One last question, Mike – what are you going to do after August or have you had a chance to think about what you’re going to do after this auction’s behind you?
Well, I think I’m just going to see how good I am at being retired. Right now I seem to be getting the hang of it.
I’ve been speaking with Mike Kelley with Kelley Construction about his retirement auction of construction equipment, tools and materials that ends on July 18. Thanks again, Mr. Kelley, for visiting with me today.
You bet, and thank you.
Bidding for the Kelley Construction retirement auction is open now and will close on Thursday, July 18, beginning at 10 a.m. central. Open inspections will be held on July 16 and 17 from 8 a.m. to 5 p.m. To schedule an inspection outside of those times, call Mike at 605.280.7805 or talk to Purple Wave’s James Beal who has been working with Mike on this event.
Like all Purple Wave auctions, there are no reserves or minimum bids. Items receiving bids in the last few minutes will be automatically extended to give everyone a fair chance to bid. There’s no advantage to waiting, so view the complete inventory listing – and place your bids now – at purplewave.com.