The East Ridge City Council at a special meeting on Friday afternoon approved a deal that would add 120 wooded and low-lying acres to Camp Jordan Park.
The property is now owned by Luken Holdings, which would transfer the land if East Ridge is successful in its request for federal stimulus funds.
The city is seeking $1.6 million under the Tennessee Watershed Floodplain Protection Program for the deal.
East Ridge City Manager William Whitson said the original amount of land under consideration was 180 acres, but that 60 acres were removed.
The property is next to Camp Jordan and runs along Interstate 24.
As a part of the transaction, East Ridge agrees to make a one-time contribution of up to $500,000 for the construction of 1-2 billboards on the property. The billboards would be leased back to the Luken firm for $1 a year for a period of 100 years.
Mr. Whitson said he understands the East Ridge proposal is "at the top of the list" of local stimulus funding requests.
He said the goal will be to create a nature preserve adjacent to Camp Jordan.
The council on Thursday night approved three work orders under the stimulus program.
They are:
Bicycle lanes for Ringgold Road from Mack Smith Road to Tombras Avenue.
A bike/pedestrian path at Camp Jordan.
Resurfacing of Mack Smith Road from the Georgia state line to Ringgold Road.