ELLSWORTH – City Council members on Friday morning approved a purchase agreement for the old Morrison Chevrolet lot, a 2-acre property that they hope will become a waterfront park.

Earlier this month, a group of merchants led by Ted Beal and Alan Baker approached city administrators about jointly purchasing the Union River land. They offered to post $25,000 to secure a one-year option for the Water Street lot, which has been vacant since the dealership relocated to a larger space on Route 1.

The arrangement requires the merchants to raise at least $300,000 toward the purchase price of $1.2 million while the city seeks grants for up to $600,000. If both groups reach their fundraising goals, the seller would reduce the sale price by $300,000.

On Friday, the council unanimously approved the purchase agreement.