Dusty Rowland of Rowland Development plans to build three new single-family homes in Highland Park.
However, the property owner is transferring the rear of the property on South Greenwood Avenue to nearby neighbors on Union Avenue.
Megan Morris said she and her husband were buying it to preserve some green space in the community.
The Planning Agency staff had recommended approval of the front zoning, but not the rear, where six townhomes had been planned in a single building.
The staff report, noting that the rear was steep with dense vegetation and trees, said, "The Open Space Division notes the existing tree canopy on the rear lot should be protected. Chattanooga is losing this resource at a rapid rate and the Department recommends saving such examples of dense tree canopy whenever possible."
The house lots fronting on South Greenwood will be 43 feet, 39 feet and 33 feet wide.
Ms. Morris said she and her husband visited homes built by Rowland Development and Black Creek and were encouraged by the quality of the homes they build.
Rowland Development includes Dusty Rowland and his father, Phil Rowland, who was a hospital CEO for 20 years before going into "his real passion - real estate."
The project next goes to the City Council.
Also, the Planning Commission recommended approval for a two-story commercial/residential project by Ben Peppers on the Southside.
It is on Main Street at the corner of Fagan Street. Access will be from Fagan.
A nearby property owner said the Main Street development is headed his way and he is getting phone calls making offers on his property. He said it has been in his family for five decades and the offers thus far are too low.
The Main Street property is owned by Bobby Ford and James Harris. It is currently vacant.