The property at 101 Front St., formerly occupied by a Dillard Insurance office, has been empty for several months and is owned by Bank of Salem. Last month, the city offered $5,000 for the lot, which was rejected.
Mayor Earl "Buddy" Rogers said the city has no plans now to build on the property and likely will use it for a parking lot.
Thayer Police Chief David Bailey, who was turned down last year when he asked the city to set aside law enforcement sales tax funds to build a new jail, said he has not heard of plans to use the land for anything other than parking.
Also in closed session, the board approved Christmas bonuses for all city workers, not to exceed $2,500 total.
The board also approved a $2-per-hour raise for water department supervisor Mike Alexander, who was recently licensed by the Department of Natural Resources.
In other business:
* The board approved a business license for James Ellis at 331 N. Second St. to operate a consulting business by mail from his home.
* The board approved buying power-line blankets and parts from Harry Cooper Supply for $2,220 and lab supplies for the wastewater treatment plant for $300.
* The board approved advertising for bids for an old distributor tank and street roller.
* The city employee Christmas party will be Dec. 22.