Mayor Ron Littlefield said the former Floorcoverings Building, where the Coolidge Hotel was slated to be built, will become offices for the Chattanooga Outdoor Center.
The Outdoor Center offices had been slated for the new Renaissance Park on the opposite side of the Market Street Bridge from Coolidge Park. Mayor Littlefield said there will be a scaled-down pavilion constructed at Renaissance Park. It will contain a meeting room as well as an open meeting area.
The mayor said the Floorcovering Building will be extensively remodeled and will have a grass roof.
The City Council on Tuesday is set to approve a transfer of property next to Renaissance Park to developer Bill Young for the Floorcover Building site on River Street.
There was an outcry when the developer sought to put a four-story hotel there. It would have been next to the historic Walnut Street Bridge.
Mr. Littlefield, while campaigning for mayor, held press conferences on the bridge in opposition to the hotel.
Mayor Littlefield said the two tracts are roughly the same size.
He said the city is requiring that Mr. Young act quickly in putting "a substantial building" at the site at the corner of Manufacturers Road and Cherokee Boulevard.
Mayor Littlefield said he does not know what Mr. Young plans to build at the site, but he said he believes a hotel would work well there.