The Wayland City Council Monday night approved a recommendation from the Downtown Development Authority to finance a loan from United Bank for $495,000 to purchase the parking lot surrounding the old Harding’s Market.

United Bank’s Bank’s bid of 2.4% interest for 10 years was chosen over bids from Hastings City Bank and Chemical Bank.

City Manager Tim McLean said the city will save an additional $247 by paying the local in annual installments.

The DDA purchased the lot for $495,000 from owner Dreamride LLC. The lot on the north edge of the 100 block of West Superior Street  surrounds the old Harding’s building that now houses Bentley’s Party Store, Stefano’s Pizzeria, the Big Dipper ice cream shoppe, Snap Fitness and No. 1 Chinese restaurant.

The city had leased the parking lot under a 10-year agreement that expired last July 1. The owner had tripled the lease price from about $1200 a month to about $3600, which prompted the move to purchase.

The idea from the DDA’s perspective is to provide incentive for people to come to the downtown area by proving a large public parking space.