Having failed twice to sell it for more than a half-million dollars, the Yakima County commissioners Tuesday set a new $200,000 minimum bid for the 38-acre "Toppenish jail site."

The site, which was never used for a jail because not enough water was available, will go to auction Sept. 10.

"We need to move on," Commissioner Mike Leita said before voting in favor of the lower price.

Previous attempts to sell the property with minimum bids of $538,000 and $580,000 failed to draw any buyers. The county spent $513,000 on it in 2003 when it was assessed at $83,000. A current assessment puts its value closer to $250,000.

Ron Gamache, the only commissioner remaining from when the county bought the land, voted against lowering the minimum bid to $200,000. He also defended its purchase, saying that at the time it appeared the needed water would be available. The commissioners only bought the property after a jail site selection committee recommended it, he said.

Gamache made a motion for a $249,000 minimum but neither Leita nor Commissioner Rand Elliott seconded it. They then voted 2-1 to set the price at $200,000.

"It's essential to set a minimum price that will generate some interest in some bidders. ... If we set the price too high, they won't even enter the bidding," Elliott said.

The commissioners Tuesday also approved a $333,000 settlement with George A. Grant Construction, the company that built the new county jail adjacent to the fairgrounds. Grant had claimed the county owed $1.3 million for unexpected costs during construction.

Through negotiation, the 31 claims that made up that $1.3 million total were whittled down, with the county paying only for work it conceded was valuable.

"The nearly $1 million in savings to the taxpayers is a favorable result," said Paul McIlrath, a county civil deputy prosecutor.

The $333,000 settlement will be paid out of the remaining capital from the jail construction, Leita said.

* Pat Muir can be reached at 577-7693 or pmuir@yakimaherald.com.