The City of Knoxville has cleared a final hurdle in getting the McClung Warehouses ready for redevelopment.
The property was partially destroyed in a massive fire more than six years ago. The owner, Mark Saroff, had filed for bankruptcy and failed to do anything with the buildings, which were visible from I-40 near downtown and considered a blight on the city.
In July, the city announced an agreement with a bankruptcy trustee to purchase the property for $1.45 million and make it available for redevelopment. On Friday, a City of Knoxville spokesperson said a federal bankruptcy judge approved the city's settlement on the property. Her written order should be filed next week, and the city will be able to move forward.
The deal settles all legal claims against the building.
The City will soon close on the property and begin work to stabilize it. The next step would be to issue a request for proposals (RFP) to developers by the end of the year. The RFP will likely be written as broadly as possible to include all possible uses. The RFP could also include the option of including the Jackson Ave. city-owned property.