THE SITE ON North Stephenson Avenue where Kwik Trip Inc. plans to build a new fuel and convenience store. The Iron Mountain City Council on Tuesday accepted Kwik Trip’s $315,000 offer to buy 2.8 acres at the site. (Brian Christensen/Daily News photo)

IRON MOUNTAIN — The Iron Mountain City Council agreed Tuesday to sell Kwik Trip Inc. city property for $315,000 as the site for a new fuel/convenience store.

The proposed sale, first discussed July 6, will allow the store to be built on 2.8 acres just north of Dollar General at 1010 N. Stephenson Ave.

“It is still contingent on a development agreement between the two parties,” City Manager Jordan Stanchina said.

Mayor Dale Alessandrini pointed out Kwik Trip is paying the city’s asking price.

The parcel is part of a 10.7-acre former Khoury Inc. furniture plant site that was sold to the Tax Increment Finance Authority for $875,000 in 2007. The city took ownership in 2012 when TIFA was dissolved. Dollar General developers paid $175,000 for 1.5 acres of the site in 2018.

The council’s vote to accept Kwik Trip’s offer was 6-0, with council member Nathan Zemar absent. A 5-7 affirmative vote for property sales is required under the city charter. There were no comments during a public hearing that preceded the vote.

Based in La Crosse, Wis., Kwik Trip/Kwik Star has hundreds of stores in the upper Midwest. If the development agreement hits no snags, construction should take place no later than 2023.

In other action, the council:

— Accepted a $465,995 bid received Aug. 16 from Bacco Construction Co. of Iron Mountain to do more than 1.5 miles of paving on city streets and alleys. Although the bid was about $80,000 more than estimated, the infrastructure committee recommended approval. The city had left the completion date open until June, but it’s anticipated that 0.6 miles of Stanton Street can be completed this fall, Stanchina said. Bacco was the only bidder and the city considered the possibility of rebidding in the spring but concluded the price likely would not improve. Bacco and the other major contractor in the region, Payne & Dolan of Gladstone, already are mostly booked through July 2022, Stanchina said.

— Approved minutes from an Aug. 23 special meeting at which the council approved buying a 2021 Ford F-150 at $23,850 from Town & Country Sales of Quinnesec for the public works department. On Aug. 2, after opening bids, the council had OK’d the purchase of a 2021 Ram 1500 from a Lansing dealer through the state’s MiDeal program. The reported cost was $18,428, plus an estimated $550 for delivery. However, Stanchina said, due to a MiDeal pricing increase from the 2021 to the 2022 model year, the vehicle offered by Town & Country was later found to be the lowest bid and the MiDeal purchase was rescinded.

— Adopted a temporary policy for dealing with customers who have fallen behind on their water bills. A state-issued moratorium on shutting off water customers during the pandemic ended March 31, but some balances have gotten large enough that additional time may be needed for repayment, Stanchina explained. Under the policy, customers may enter into a formal payment plan to avoid a shutoff. After March 31, as in the past, any unpaid bills will go on the property tax bill. About 355 customers are behind on bills, totaling about $72,000, Stanchina told the council. Most of the largest unpaid accounts, ranging up to $1,000, already have been addressed to avoid shutoffs, he said.