In a 5-2 vote, the Port Orchard City Council approved for the city to purchase property at 640 Bay St. — the site of the former Los Cabos restaurant.

The city will purchase the property for $148,000.

The seller is Turnaround, Inc. and the court-appointed receiver for the parcel owner is Michael Dawson, according to the agreement.

City Attorney Greg Jacoby said the primary condition of sale is that prior to closing and the transfer of title, the seller will abate asbestos and demolish the existing building at the seller’s expense.

“The city will thus acquire a vacant lot that should be attractive for future development by a public, private or public-private entity,” Jacoby said.

Council members Jerry Childs and Cindy Lucarelli voted against the purchase during the Aug. 12 meeting.

The two-story building is approximately 6,493 square feet. The property also includes a retaining wall on the Frederick Avenue side.

In July 2013, fire destroyed the second floor of the building. No one was injured in the blaze.