Park City bought the home from Rader's wife, Paula, for a little less than $60,000, Mayor Dee Stuart said. The City Council authorized the purchase in November and the closing was last week.
Rader, who called himself BTK for his preferred method to "bind, torture and kill" his victims, pleaded guilty in 2005 to killing 10 people from 1974 to 1991. He is serving 10 consecutive life prison terms.
The house will be demolished before spring, Stuart said, to provide an entryway to Jardine Memorial Park, a small park with trees, swings, a half basketball court and a parking lot.
The city had wanted to improve access to the park for years and buying and demolishing one of the nearby homes was the best option, Stuart said.
Michelle Borin, the owner of an exotic dance club in Derby, bought the house at auction for $90,000 in July 2005. But that sale fell through when a debate over how the proceeds should be distributed kept the title from being transferred to Borin.