I don't know how it would be valued, but the lot could always be donated to the city for a tax break, but that doesn't make sense for me because I don't have anything that I need a tax break for yet

You might as well donate it to a charity as it will get better use then buying junk!!!  

Not sure if your property is in CA or not, but the apartments I manage are and our prop mgmt co has us hold things of value that are left behind for 30-days and then donate to charity. 

Other options I'm considering: simply give a large donation in the year of the sale or donating property in kind.

You may want to look at Charitable remainder trust  and or generation skipping trust. some of my high net worth clients use these.others will form their family foundation then donate the asset to the foundation.Good tax planner could probably advise if this works for your situation.

Who do you think is donating to their next campaign?

Not only do National averages have nothing to do with your community, demographics are in motion too and jobs get lost as well as created AND that can vary between two cities in the same County.Setting the rent to the FMR on the day of signing the lease is one art. 

I am seeking opinions/advice.The city is selling a vacant property donated to them by a bank.

I'm so new to this so any wisdom and insight you can donate would be awesome!

Don´t know the inside, but it is boarded-up.