The Chattanooga Visitors Bureau is setting up a $600,000 fund for projects by local groups, president Barry White said.
Mr. White said the grants will be both for marketing as well as brick and mortar projects.
He said those with involved with "festivals, events, programs and products" can apply.
The bureau has hired a director of Cultural Tourism Advancement Grants to oversee the grants program.
Mr. White said one meeting was held with arts groups on Jan. 23 on the idea and other informational meetings have been set. He said the deadline to apply is in April and the grants are due to be announced in mid-May. A committee made up of both CVB board members and non-board members will make the selections.
He said the $600,000 was "a starting point" on the new grants program and indicated it may change for future years.
Mr. White spoke to the County Commission at the time officials of the Creative Discovery Museum made a pitch for $500,000 from the county toward a $10 million "Ignite Creative" fund drive.
County Commissioner Tim Boyd said the proceeds from the hotel/motel tax is the natural method for funding the CDM request. He said, "We have a funding mechanism in place for this. It was created a long time ago."
The county for a number of years has given its entire share of the hotel/motel fund to the Visitors Bureau. The city allots its portion to Waterfront projects.
Henry Schulson, longtime CDM president, said the city will be asked to make the same $500,000 contribution. He said it is a five-year fund drive and payments could be at $100,000 per year.
He said $5,789,091 has been raised from private sources.
Mr. Schulson said it is hoped to have the goal in hand by the time the CDM celebrates its 25th anniversary in April.
The funding is to be used for updating and installing new exhibits, expanding outreach programs and enlivening the plaza in front of the museum. It is planned for administrative offices to be moved across Fourth Street so that space can be used for new exhibit space. A new tree house will be part of a rooftop renovation.