Three city-owned lots at 521 N. First Avenue, adjacent to the Foothill Freeway, were sold last week by the Arcadia City Council to the W. D. Wilson Co., which will construct a building on the site and move from its present location in South Pasadena. James J. Melas, president of the W. D. Wilson Co. and an Arcadia resident said his firm deals in sophisticated biomedical supplies and unusual alloys and fittings for medical instruments. Selling price was $41,500. The city originally purchased the lots from the state Department of Highways for $33,000.