Selah council takes another look at Matson Fruit expansion

SELAH, Wash. -- Two years and a lawsuit after it said no, the Selah City Council all but reversed itself Tuesday on Matson Fruit's expansion plan.

The council voted unanimously to table Matson Fruit's rezoning application for a month so city staff and company officials can hammer out a development agreement that satisfies both sides.

"People, get your heads together, make something happen," Mayor Bob Jones said at the end of a quasijudicial zoning hearing that was as much about Selah's future as it was about Matson's.

At issue is Matson's request to rezone a recent property acquisition on North Railroad Avenue from commercial to industrial.

The company recently bought the undeveloped 14.83-acre parcel from Otis Vineyards with the intent of expanding its fruit-packing and cold-storage operation -- the company has been in Selah since the 1930s -- in order to stay competitive.

Fearing an erosion of the city's already tight commercial land opportunities, the City Council rejected the request in December 2007. In the process, it went against the recommendation of city staff and the city's Planning Commission.

Matson filed suit, leading to 18 months of litigation that came to a head this summer when a judge invalidated the council's decision on a technicality. (The city had been unable to produce a tape recording of an earlier hearing).

The Planning Commission promptly re-recommended approval of Matson's application, leading to Tuesday's hearing.

Selah city planner Dennis Davison told the council that city staff now opposes the rezone on the grounds that Matson would have "carte blanche" to do whatever it wants with the property and that industrial use would be incompatible with the fledgling commercial district that has sprung up along Wenas Road and South Park Drive.

"As you know, there is a shortage of industrial and commercial land in Selah," Davison said, predicting such growth would occur on the periphery of the city.

Davison's stance angered Matson attorney Mike Shinn, who said he was "appalled" city officials had reversed their once-unconditional support for the company's proposed expansion plan.

Shinn reminded the council that Matson is seeking to use only a little over 8 acres of undesirable land along railroad tracks for its expansion plan and that the remainder -- about 61/2 acres -- would be set aside for more commercial use.

He insisted that Matson does not have ulterior motives for the remaining acreage and urged the council to pursue a development agreement that spells out specific, and binding, expectations for the property.

"We'll use it for the purposes we said we would," he said.

Shinn's offer led to an increasingly frank discussion about not only Matson's needs but also the needs of a growing city like Selah.

Leading the charge was Jones, who expressed concern that Matson might change its mind about the remaining 61/2 acres once the present makeup of the council is gone.

"Councils come and go," he said. "You come back someday and the council doesn't have any history -- what happens?"

"You can save yourself that concern," Shinn shot back, again urging the council to enter into a binding agreement that spells out in detail how further development of the property will play out.

On a motion by Councilman John Tierney, seconded by Councilman Paul Overby, the council agreed to pursue a development agreement and voted 5-0 to delay a final decision until Dec. 22.

Voting yes were Tierney, Overby and fellow council members Summer Derrey, Kevin Jorgensen and Dave Smeback.

Councilman Keith Larson recused himself, saying he was both friends and competitors with the Matson family. Councilwoman Denise Nichols was absent. Along with Overby, they were the only members of the seven-person council who were in office two years ago.

After the hearing, Shinn confirmed earlier reports that Matson and city officials had been negotiating a development agreement for several months now.

He said a particularly prickly detail has been increased truck traffic -- how to accommodate it and how to ameliorate its effect on other motorists.

Nevertheless, he interpreted the council's decision as a clear signal that it wants to compromise.

"It gives both sides new impetus," he said, adding, "And we need to hurry it along."

* Chris Bristol can be reached at 509-577-7748 or cbristol@yakimaherald.com.