The Cherokee City Council accepted a bid of $2,200 from Central Bank for a property on South Fourth Street across the street from the bank.
The property is being used as a parking lot and is expected to remain a parking lot following purchase by the bank. The bank had purchased the property in 2001and donated it to the city for the purpose of converting it into a parking lot.
There had been two bids submitted in November but one was withdrawn prior to the opening of bids at the Tuesday council meeting.
Robert "Ben" Jobe, owner of the Pastime Lounge next to the parking lot, had expressed interest to the council in owning the property for expansion of his business either by adding on to his building or creating an outdoor serving area.
The council had gone through the process of soliciting bids four times since 2003, rejecting bids on every occasion until Tuesday's meeting.
At the Nov. 27 meeting, Jobe requested that the council table the matter until the Dec. 11 meeting so that he and Chuck Wulfsen, president of Central Bank, could work out arrangements for their mutual benefit.
At the Tuesday council meeting, Wulfsen indicated that an agreement had been reached.
Dwight Varce, who had opposed putting the property up for bids, was the only council member to vote Tuesday against selling the property.
The council approved the first reading of an ordinance that will increase the deposit for water service from $75 to $100.
The council approved the first reading on three ordinances that the council needs to amend as the result in changes in state code. The council waived the second and third readings on these ordinances.
The council approved proceeding with plans to make city hall the local passport acceptance agency. Deb Taylor, city clerk, said that providing this service will not cost the city anything except city hall staff time and shouldn't involve too much staff time.
The city heard the initial proposal for a contract from the I.O.E.U., which represents workers other than administrators, city hall clerical personnel and part-time summer workers who do not have union representation and Cherokee Police Department personnel who have separate representation.
The salary increase requested was 4 percent across the board. Other language changes include an increase in on-call pay, the addition five vacation days for employees with over 20 years on the job and the addition of two floating holidays.
The city's counterproposal was for a 2 percent across the board pay increase. The city is seeking language changes that would require those hired after July 1, 2008 to pay 20 percent of the cost of health insurance coverage.