County Commission members were told Wednesday that county government will owe $23,000 for its three parcels that are in the new Business Improvement District downtown.
Kim White of the River City Company said it is planned to have the BID in business by the first of next year with a $1 million annual budget.
It will pay "ambassadors" who will help beautify the district and deal with homeless people and panhandlers.
The city portion is $40,000.
Commissioner Tim Boyd said he believes there may be legal problems for launching a BID under one court case he is familiar with. Ms. White said BIDs are common throughout the country and other large cities in the state have them.
Commissioner Boyd recommended that the county's portion be paid by the Chattanooga Visitors Bureau or the Chamber of Commerce.
He also said the BID "will be opening up more liability for us." Ms. White said the liability will be with the company hired to run the ambassador program. She said the company will carry its own insurance.