The Walnut Commons apartment complex at Walnut Street and Riverfront Parkway has reached an agreement to acquire the ground rights for $761,000.
The Chattanooga Downtown Redevelopment Corporation, a city board, now holds the ground lease and is due payments based on the cash flow of the apartments.
There was a disagreement earlier on the amount owed, and the city wound up suing the current Walnut Commons owners - America First Properties Management, of Omaha, Neb.
The owners paid the city $273,209 soon after the complaint was filed.
The CDRC is meeting Wednesday afternoon and will consider a resolution approving the deal worked out for the ground lease.