Mayor Andy Berke on Friday sent an offer to the Chattanooga Housing Authority of $1 million, plus the Poss Homes site, for the Tubman property.
Mayor Berke said the plan would be to demolish the existing structures at the former CHA housing development and market the property for light industry.
The Poss Homes site includes 19.9 acres near I-24 and Howard School.
Mayor Berke said the total value of the city offer is $2.87 million.
The city made an earlier offer for the Tubman site, but CHA instead opted for a private developer. However, that deal fell through.
CHA has set a deadline of next Friday for new offers.
Some Howard High supporters have wanted to secure the Poss Homes property for the site for athletic fields for the school.