Mayor Tim Kelly said the historic Medical Arts Building on McCallie Avenue "is in terrible repair" and could only be saved by a private investor with a love of historic preservation.
The mayor says the city does not have the millions of dollars it would take.
The building, which was designed by famed local architect R.H. Hunt, is adjacent to First Presbyterian Church, which owns it.
Mayor Kelly said, “The Medical Arts building on McCallie Avenue is in need of saving. It’s currently slated for demolition because it’s in terrible disrepair and it’s cheaper to tear down and build new than to restore it.
"Unfortunately, those familiar with our current budget debate will understand that the city of Chattanooga does not have the millions laying around to save this historic building.
"What we need is a private investor with a heart for historic preservation to reach out to First Presbyterian Church and acquire the building. It's a beautiful and important piece of our urban infrastructure that we would love to see preserved for the next 100 years.”