City Council members had questions about a price of up to $1.1 million for property on Lee Highway for two stormwater storage tanks.
Justin Holland, public works administrator, said there have been negotiations with the owner, Chattanooga State Community College.
He said both sides are awaiting an appraisal.
Councilman Larry Grohn noted that the assessor's office lists the property at $751,000.
He also said he understands that much of the property is in a floodplain. Mr. Holland said that is not the case.
Mr. Holland said about six acres would be used for the stormwater improvements that are a part of the city's Consent Decree as ordered by the EPA. He said additional water storage is needed in the Lee Highway area.
He said it is a better site than one that was checked out earlier on Hickory Valley Road. He said the Lee Highway site is further away from clusters of homes.
He said both are near a main sewer line.
Mr. Holland also said it is planned to subdivide the front of the property and have it developer so it would go back on the tax rolls.
Funding would come from sewer tax payments.