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 establishing the controversial downtown Business Improvement District, the Chattanooga City Council now has to consider how the district will assess its fee.
Here's what you need to know about the upcoming discussion:
- The BID, which has been spearheaded by local economic development nonprofit River City Co., passed through the Chattanooga City Council in late July after failing earlier in the summer, despite claims from property owners that the reintroduction of the ordinance violated state law.
Now, the management board is set to collect around $1 million annually from the 196 property owners within the district to contribute toward safety and visual improvements to the central Chattanooga district.
Under 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.
- Last week, the Hamilton County Commission reversed its agreement with the city of Chattanooga to provide fee collection services for the district, leaving the district without a means of collection.
Commissioners who opposed the county's involvement expressed concerns for legal liability, citing a lawsuit filed against the city to stop the BID just two days after the agreement was first approved.
- After the city moved to have the lawsuit dismissed last week, claiming the plaintiffs " failed to allege any colorable basis for the challenge to the ordinance," an ordinance to have the city treasurer take on the collection of the BID fee was added to the Sept. 3 council agenda.
- With a mutual deadline of property tax bills being sent in October, supporters of the BID are rushing to establish a means of collecting the fee, while opponents are racing to nullify the BID ordinance. The council will vote on the fee assessment ordinance on Sept. 3, with Tuesday being the first council meeting since the commission reversed their agreement. The lawsuit is set to be heard in Hamilton County Chancery Court on Sept. 9 at 1:30 p.m.
The full council agenda may be viewed at chattanooga.gov/city-council/agendas minutes-by-date.
Contact Sarah Grace Taylor at 423-757-6416 or at staylor@timesfreepress.com. Follow her on Twitter @_sarahgtaylor.