Matson Fruit Company has finalized the purchase of 14.38 acres for $2,250,000 from Otis Vineyards, LLC in Selah, north of Matson’s current fruit packing and shipping facility.

In December, the Selah City Council denied Matson’s request to rezone 8.43 acres of the parcel to industrial use so that Matson Fruit could build a fruit warehouse. Matson filed a LUPA petition Dec. 31, appealing the council’s rezone denial. A LUPA petition, or land-use petition act, is the exclusive means of appealing land-use decisions in the state and was filed in Yakima County Superior Court. A scheduling hearing is set for Friday.

After the council’s denial, Matson Fruit Company owner, Rod Matson said the company might have to move operations to another area if they were not allowed to expand. But, he said, the company had received widespread public support for Matson Fruit to stay in Selah.

“We went ahead and purchased the property and we remain optimistic that city council and staff will see that fruit businesses can coexist and thrive along with Selah’s commercial sectors,” Matson said. “We hope that they will realize that long-time stable business like Matson fruit can play into the future of Selah.”

Matson Fruit has been operating in Selah for 80 years.

“We’re still working on making this work for everyone,” he said. “If the property is not rezoned, at that point it becomes a long-term investment and we’ll go from there.”

Matson will not build a planned office complex unless they are allowed to build the fruit warehouse.

Matson’s attorney, Mike Shin, said they are hopeful the LUPA petition will be successful.

“We have good grounds,” he said. “Frankly, I am a bit mystified and surprised at the reaction from the city.”

Shin said they had demonstrated how they would address concerns. Shin said the warehouse would not be a noise generating facility.
Aesthetically, he said they had addressed landscaping, constructional materials, and agreed to sign a development agreement.

Another issue was truck traffic, he said. Matson was told it would be undesirable to go north on North Park Drive or to use the new Larson Drive, but about the time Matson was to begin engineering studies on routing truck traffic on Bartlett they were denied the rezone.

Shin said there are three possible outcomes as a result of the purchase.

The first, he said, would be that the LUPA petition succeeds and they are able to rezone a portion of the property industrial. The second possibility is that people will become aware that the property next to the railroad and next to Monson’s Fruit is not desirable commercial property and Matson would be able to carve out a piece for industrial and preserve the rest for commercial.

The third option would be the long-term investment option.

“If someone wants to buy commercial then we have the opportunity to sell,” he said.

Shin said they are also ready to engage in negotiations with Pete McNew on the sale of 4.5 acres for a fitness center, that has been a rumored possibility for years.

“It would require a boundary-line reconfiguration,” Shin said.

Pete McNew confirmed that negotiations were already underway.

“Our attorneys are negotiating with their attorneys on the sale of the 4.5 acres at the north end of the 14 acre parcel to construct a 54,000 foot fitness center, which will include an enclosed pool,” McNew said.

“We’ve got all financing pieces in line, but we don’t have construction date,” he said.

“Part of that is scheduling with Mountain States Construction and finding an opening.”

McNew said he believed that Matson Fruit Company honored their word to sell the property to McNew to build the fitness center.

“They had made a promise to Otis that they would do that and in spite of the zoning issue they lived up to their word,” he said. “In this day and age people who live by their word, I think that is pretty cool.

“They paid full price and did what they were supposed to do.”