State officials have abruptly changed their minds about relocating the $260 million Moccasin Bend Mental Health Institute to a site on Birmingham Highway in Lookout Valley.

That comes after the new location at the Koch Foods site was announced with fanfare at the psychiatric facility and was heralded by those long involved in the "Save Moccasin Bend" effort.

Officials said, "After further deliberation, the Tennessee Department of General Services (DGS) has decided not to move forward with plans to build a replacement hospital for Moccasin Bend Mental Health Institute at 1001 Birmingham Highway in Chattanooga.

"DGS will continue working with the Department of Mental Health and Substance Abuse Services and state, city, and county leaders to review additional sites for the Moccasin Bend Mental Health Institute replacement facility."

The state had earlier closed on the property, paying $2,450,000.

County Mayor Weston Wamp said, "I'm extremely disappointed, particularly considering the widespread support for the site recently purchased by the state."

Stephanie Cepak, spokesperson for Mayor Tim Kelly, said, “The Kelly administration has worked diligently for years alongside our other local partners to secure a new site, so we are deeply disappointed in this decision. We hope the DGS can secure another acceptable site soon, but any site near the workforce it requires is going to have issues to mitigate. It's hard to imagine a more ideal sure than the one identified, but we will keep our fingers crossed and help in whatever way we can."

City Councilman Chip Henderson said residents of Lookout Valley are relieved by the decision, saying they had a number of concerns about the placement.

He said the mental health commissioner had met with him and County Commissioner Montrell Besley to hear their viewpoint and had given email addresses for residents to reach out. He said a number of residents did give their concerns to the state.

Councilman Henderson said residents of the Black Creek development and others had expressed concerns about traffic issues being exacerbated. He noted the hospital would have 450 employees.

He stated, "Any time there is a backup on the interstate there is gridlock out here for entire neighborhoods."

Another concern, he said, was the possibility of patients wandering from the facility.

Councilman Henderson had stated on the day of the announcement, "I am deeply disappointed to just learn that the State has purchased land on Birmingham Highway for the purpose of relocating the Moccasin Bend Mental Health facility to this location. I have serious concerns starting with the impact on our community."

State officials at the time had praised the 49-acre site and noted it was only a few miles from the current campus and had a similar view of Lookout Mountain.

Officials did note that one issue brought up was the narrowness of Highway 11 at the site, which is near a narrow railroad overpass.