It is planned to have a Business Improvement District (BID) in operation in downtown Chattanooga by January, River City Company President Kim White told members of the City Council on Tuesday night.
However, first the council must approve the city's first BID, including the designated boundaries. It was set up by a group led by River City to stretch from the Riverfront to 11th Street and from Pine Street to Cherry/Patten Parkway.
The City Council vote is set for May 28.
Ms. White said the group has been able to secure the necessary approvals. That includes the okay from 56 percent of the affected property owners and almost 77 percent of the owners of the largest properties.
"We felt real good about those numbers," Ms. White said.
She acknowledged, "If you're in the district, there's no way out." You have to pay the assessments. She said those are figured at nine cents per square foot and $4.95 per linear front foot. A condo owner pays $150.
Among those who will be chipping in will be the city of Chattanooga, whose annual fee will be $40,000. City parks are not counted.
Two churches that are in the district - Second Presbyterian and St. Paul's Episcopal - are expected to gain hardship exemptions.
Ms. White said the $1 million in total assessments are to provide 500 hours per week of "ambassadors" wearing brightly colored shirts. They will perform such tasks as assisting visitors, providing visitor information, picking up litter, cleaning up graffiti, setting out landscaping, warding off panhandlers and trying to assist the homeless with their special needs.
Management will take $175,000 of the fund, while $625,000 will go to the work of the ambassadors and the remainder for beautification and special projects.
She said the BIDs provide services "over and above" what the city is able to furnish.
She said there are over 1,000 BIDs in the U.S. and Chattanooga is late in getting one. Memphis has $2.8 million in BID spending, while Nashville is at $2.4 million and Knoxville at $600,000.
The assessments come with the annual tax bills.
Ms. White said if a property owner does not pay the assessment, a lien can be placed on their property.
There are 284 parcels in the district.