City officials said Monday that an appraisal for a city parking lot on King Street is over $225,000 higher than a developer offered.
A city board, the Chattanooga Downtown Redevelopment Corporation (CDRC), in April had been asked to approve the $134,700 offer by Hiren Desai, who is planning a development that will include a new hotel, apartments and a brew pub along King Street.
However, it was decided to get an appraisal after a number of members of the public objected.The property appraised for $360,000, the board was told.
City officials said they are negotiating with the developer based on the new appraisal.
Under the previous plan, Mr. Desai was also offering to lease 85 parking spots at the site back to the city. Helen Burns Sharp of Accountability for Taxpayer Money said in three years the developer would get back the money he paid for the lot.
The location is 1200 King St.
The contract is set to go back before the CDRC at a later date.