Chattanooga’s controversial Business Improvement District has cleared the last legal issue looming over its formation, following a six-month battle to get it up and running.
A lawsuit filed by six property owners in the recently formed special district that claimed the city council illegally formed the district was dismissed Thursday.
Hamilton County Chancellor Jeffrey Atherton heard the case during a hearing late last week, narrowly siding with the city on the ambiguous terms of state law regarding the speedy reintroduction of an ordinance to form the district in the council this summer.
“It sure does smell bad, doesn’t it?” Atherton said of the city’s approach to the ordinance during the nearly two-hour hearing. The judge ultimately determined that state law did not expressly prevent reintroduction of the ordinance by a council after a citizens’ petition.
“Everything in my gut tells me I should rule in favor of the plaintiffs on this,” Atherton said. “But, even though [the formation ordinance] seems like an end-around, it doesn’t seem to violate statute.”