The Haines Borough Assembly voted unanimously Tuesday to dispose of two Main Street lots totalling about 1.2 acres through a negotiated sale.
The action comes as a response to a proposal by Aspen Hotels to buy property at the site of the former primary school and build a $4 million, 49-room hotel there.
Haines Borough interim manager Julie Cozzi said a negotiatiated sale was preferable to a sealed bid auction because the borough already had a proposal from a prospective buyer.
The assembly must still approve the sale, price and other terms.
Recent tests at the site found that diesel fuel spilled there is not migrating off-site. “I think the land has been remediated to the point that any owner would sell it,” said Mayor Stephanie Scott.