A city board on Wednesday voted to issue a Request for Proposals on a .66-acre city parking lot that is across King Street from the St. John's Restaurant.
The city bought the lot in 2007 from architect Thomas Johnson for $195,000.
Stacy Richardson, chief of staff to Mayor Andy Berke and a member of the five-person Chattanooga Downtown Redevelopment Corporation, said the lot has spaces for some 80 city fleet vehicles. But she said the fleet vehicles could be accommodated at other city lots.
She said King Street is ripe for development and use of the lot by a developer "could help unlock the potential" and put it back on the tax rolls.
Developer Hiren Desai earlier announced that he plans to build the Moxy Hotel nearby and develop 100 apartments in an old warehouse.
The RFP is worded to encourage developers to construct a parking garage at the site.
The RFPs are due to be returned by March 9 at 4 p.m.
The CDRC will reconvene to consider the proposals.
Also, board members were told that the PFM financial consulting will have a $50,000 fee for the initial work on preparing the sale of the city-owned Chattanoogan Hotel on South Broad Street.
Officials said the remainder of the fee would come from proceeds of the sale.