REDMOND — A state official Tuesday met with Redmond city councilors to discuss a land swap between two state agencies that could further Central Oregon’s attempts to develop large, shovel-ready sites suitable for industrial development.

John Russell, an asset manager for the Department of State Lands, told councilors that his department is considering a land swap in the Redmond area with the Oregon Parks and Recreation Department.

Terms of the deal have yet to be finalized, but DSL is prepared to trade land near John Day for property south of the Deschutes County Fairgrounds and Expo Center. The swap would add 24 acres to the roughly 900 the DSL already holds near the fairgrounds.

Russell traveled from Salem to discuss the swap with Redmond leaders because the land eventually could become a large-lot industrial zone as envisioned by Deschutes County.

“Our goal is to somehow convert the land into income for the Common School Fund,” which generates revenue for Oregon’s public schools, Russell said after Tuesday’s meeting. “Whether that is to develop it, to sell it or to lease it, we will see. But we didn’t want to get sideways with the city on this.”

While his agency intends to cooperate with the city, Russell said he’s waiting for the state’s “consolidated response” before taking further action. A conservation group that disagrees with Deschutes’ direction has filed a challenge with the state Land Use Board of Appeals.

Last year, the county amended its comprehensive plan in order to increase the supply of large industrial lots. The changes are designed to ease the annexation of industrial land by cities. Officials hope that Crook and Jefferson counties follow suit. A tri-county board would then regulate industrial development in a way that benefits the region.

Deschutes County’s plan amendments have drawn the fire of 1000 Friends of Oregon, however, and county principal planner Peter Gutowsky said it will take “at least until late spring or early summer before the issue gets resolved.”

Even if the issue is resolved in the county’s favor, said Redmond City Manager David Brandt, the city likely won’t make changes for several years.

Nonetheless, both city and county officials seemed to agree last month that the DSL tracts south of the fairgrounds make the most sense for development because of access, location and proximity to the region’s largest airport.

Just by showing up at Tuesday’s meeting, the Department of State Lands made it pretty clear it wants the land to become an industrial zone. And by unanimously nodding, city councilors confirmed the same thing.

“Long term, we expect this land will be a part of the city,” Russell said.