The Institute of Health and Healing at Wildwood is seeking deannexation of a 390-acre parcel that is located in the city of Chattanooga.
Officials noted that it is necessary to go into Georgia from Chattanooga to reach the tract, and access is only by a narrow railroad underpass.
Institute officials said they want to build housing at the site for staff, but were denied a rezoning request in 2006. The property was annexed by the city in 1995.
The institute has been paying taxes on the property.
Fire officials said they are able to access the property, but better access would be needed if a number of homes go in.
The group was told that it might be appropriate for it to apply for a Planned Unit Development.
It was recommended that the group talk with the assessor's office about the tax issue. The group is a non-profit agency.
The City Council is due to vote on the issue next Tuesday.