The Chicago-based Lakewood Realty Group doesn't have the $2.8 million that it promised to purchase the Harriet Tubman public housing site.
But the company has offered the Chattanooga Housing Authority $500,000 if CHA agrees to give it until Jan. 22 to wire the money. Lakewood said if it failed again, CHA could keep the $50,000 earnest money that it paid in October plus the $500,000.
CHA board members, however, said no deal.
They had a special called meeting today at 1:30, just 90 minutes before they were scheduled to close with Lakewood at 3 p.m.
City Council Chairman Yusuf Hakeem attended the meeting and told housing officials that the city and residents who lived or worked near the 440-unit Tubman housing site were interested in a higher use for the property than it becoming a low-income housing site again. Hakeem said the city wants to use it for industry to get people jobs.
Avondale and East Chattanooga residents and workers shook hands with Hakeem in celebration after board members voted against allowing Lakewood the extension. CHA officials said unless Lakewood comes up with $2.8 million by 3 p.m. today, the deal is off.