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With city council vote, Chattanooga Business Improvement District one step closer to assessing fee

Buildings inside a proposed Business Improvement District are seen on Tuesday, April 16, 2019, in Chattanooga, Tenn. The proposed district would encompass downtown Chattanooga from the Riverfront to 11th Street and from U.S. Highway 27 to different areas bordered by Cherry Street, Lindsay Street and Georgia Avenue.
Buildings inside a proposed Business Improvement District are seen on Tuesday, April 16, 2019, in Chattanooga, Tenn. The proposed district would encompass downtown Chattanooga from the Riverfront to 11th Street and from U.S. Highway 27 to different areas bordered by Cherry Street, Lindsay Street and Georgia Avenue. Buildings inside a proposed Business Improvement District are seen on Tuesday, April 16, 2019, in Chattanooga, Tenn. The proposed district would encompass downtown Chattanooga from the Riverfront to 11th Street and from U.S. Highway 27 to different areas bordered by Cherry Street, Lindsay Street and Georgia Avenue.

By Sarah Grace Taylor 4 min read

What is the BID?

Commercial and nonprofit landowners in the district will pay an annual assessment of 9 cents per square foot, of either the lot or building size, whichever is greater, plus $4.95 per linear foot of lot frontage. Residential property owners with townhouses or condominiums would pay a flat annual fee of $150 per unit.

After a rocky few weeks, the Chattanooga downtown Business Improvement District is back on track to assess its first fee on upcoming property tax bills.

City council members on Tuesday voted 5-4 on first reading of an ordinance that would allow the city treasurer to provide collection services for the controversial district, which requires property owners to pay an annual assessment of 9 cents per square foot, of either the lot or building size, whichever is greater, plus $4.95 per linear foot of lot frontage in exchange for safety and visual improvements.

Initially, the fee was supposed to be collected by the county trustee, per an agreement with the Hamilton County Commission. The commission later reversed that agreement with the city of Chattanooga to provide fee collection services, citing legal concerns, leaving the district without a means of assessing the fee.

Commissioners who opposed the county’s involvement expressed concerns over legal liability, citing a lawsuit filed against the city to stop the Business Improvement District just two days after the agreement was first approved.