Didn't you say you had a hard $200 limit for the bike?

Only the beach cruisers and kids' bikes at REI are less than $200. Everything else seems to be $350+, which is out of the question even with a 20% discount.

The online bike places mentioned earlier have a better selection of entry level bikes. Save your gas and buy online, IMO.

Maybe call the "local" shops and ask what they have for $200 or under. Maybe someone has a sweet used bike in this range, and after you look it up online, you can decide if it is worth a try.

Did you look for a local bike co-op online? I don't know if this is more of a big city thing or not, I've never looked too hard for one myself....