A new proposal was offered Thursday for the removal of a dilapidated barge on Chattanooga's downtown waterfront, and an Atlanta group is weighing a bid for land to which the vessel is moored.

A Florida company is proposing to dismantle the structure that sits atop the barge, located on the Tennessee River across from Ross's Landing, and then float it downstream to a vacant tract where it would be cut up and salvaged.

But David Bernard, president of Pass LLC, said he wouldn't proceed unless $250,000 is put into an escrow account to pay for his initial expenses as work is done. He predicted the entire removal project could cost upwards of $750,000.

"You'd have to have heavy equipment in there," Bernard said, adding there'd be a lot of labor and some cleanup because debris has fallen into the river.

David Eck, who is associated with the Pass LLC proposal, said in U.S. Bankruptcy Court that he's concerned the barge could sink. A pump that's ridding water leaking into the barge isn't adequate, he said.

Chattanooga businessman Allen Casey brought the barge to the city in 2009. But he failed to move ahead with his plan to build an eatery and bar and filed for bankruptcy earlier this year.

David Fulton, a lawyer for a Casey company, said he and other attorneys will review the latest removal proposal.

He said an earlier plan that involved towing the barge downstream to a metal salvage yard is still under study, and he's hopeful that it could move ahead.

Fulton said the barge is being watched to ensure that it doesn't sink.

In addition, he said an Atlanta group has emerged as a potential buyer of the vacant tract to which the barge is moored and is conducting its due diligence on the property. Fulton said there are other possible buyers as well.

Herman Walldorf Commercial was hired earlier this year to market the vacant 6.6-acre tract, which was listed for $11.2 million.

U.S. Bankruptcy Court Judge Shelley Rucker told attorneys that she wanted to make sure the parties were working together concerning the removal of the barge.

"If the parties need an emergency hearing, I'm here," she said.

Casey, who originally developed the Chattanooga Choo Choo into one of Tennessee's biggest tourism attractions more than three decades ago, had envisioned condominiums and a hotel on the land off Manufacturers Road.

Earlier this year, Casey and one of his companies filed bankruptcy petitions as they faced a civil trial over a lawsuit brought by a group of investors who claimed they were defrauded relating to the property. Casey has denied the allegations.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.