SELAH, Wash. — The Selah City Council may have a buyer for nearly three acres of undeveloped property, but further negotiations will continue, city administrator David Kelly said.

The 2.78 acres make up part of the five acres of the remaining Marudo property, which once encompassed a total of 23 acres when it was bought by the city in 2002. However, the city never developed the property.

A series of financial missteps in the management of the property put the city $4 million in debt over the land just off Wenas Road after it lost its tax-exempt status. Portions have since been sold, but not without the city having to dip into various funds, including reserves, to make payments for the property over time.

In a special Thursday executive session, council members agreed to make a counteroffer to the potential buyer, but Kelly said the city couldn’t yet release those details. He said the potential buyer is based in Selah.

At an original asking price of $4 per square foot, the 2.78 acres were listed at roughly $483,000 by the city.

“It’s half of that property out there, so we’re tickled to have folks looking at it,” Kelly said.

Mike Faulk may be reached at 509-577-7675 or Follow him on Twitter at