Downtown Improvement District Implementation
Downtown Improvement District Implementation
The City of Asheville has launched a Municipal Service District (sometimes referred to as a Business Improvement District or BID) in Downtown Asheville following City Council authorization and subsequent actions that support implementation. A municipal service district administers services within a defined district above and beyond those provided by the City. The services are funded through a special tax assessment added to property tax bills within the defined service area. See an interactive map of the district here.
Services are rolling out in May and June 2025. See the City's news post about the official launch of services here.
Services are being managed by the Asheville Downtown Improvement District (ADID), following City Council's authorization of a contract on January 14, 2025. (See more information here.)
Find more information about the Asheville Downtown Improvement District on the Asheville Downtown Association website here.
Downtown Improvement District Reporting
ADID Q1 2025 Report (Posted 5/1/25)
Reports will continue to be posted here.
Background
A BID (as implemented in this case, "DID") is a type of municipal service district (MSD) authorized by NC General Statutes that is defined by ordinance upon a finding that the district is in need of one or more defined services, facilities, or functions to a demonstrably greater extent than the remainder of the city. The City Council has broad discretion to establish MSD boundaries within a geographically defined area such as downtown.
In 2023, a group of downtown stakeholders, including property owners, businesses and residents organized with support from the Asheville Area Chamber of Commerce and Asheville Downtown Association to advocate for the creation of a Downtown Improvement District.
Based on the needs identified through the group's engagement with stakeholders, a service budget of approximately $1.2M was proposed along with an operational plan/report that outlined proposed supplemental services.
With votes at the May 13, and June 11, 2024 City Council meetings, City Council established the MSD boundary (see map here) and tax rate (.0877 per $100 assessed valuation of taxable property), applicable to the FY 2024-2025 budget and tax rate ordinance.
Along with this establishment, City Council passed a resolution that outlines desired services, reporting and engagement requirements for a contracted operator as well as the governance/advisory structure to be implemented.
The City of Asheville launched a Request for Proposals (RFP) process on September 20, 2024 to select an operator. (View the archived RFP in the documents section at the bottom of this webpage.)
The RFP schedule was amended due to the impacts of Helene. Details of those amendments are viewable here. The amended schedule resulted in slight delays for implementation.
Prior to releasing the RFP, the City sought input from those who live, work and visit downtown, to help further shape the service needs and priorities for the district based on the following focus areas:
Safety & Hospitality: Ensuring a welcoming and secure environment for everyone
Enhanced Cleaning: Keeping our downtown clean and well-maintained
Special Projects: Undertaking initiatives that enhance the downtown experience
An engagement summary is available at this link.
Community feedback was and will continue to be vital in ensuring that the services provided meet, to the fullest extent possible, the needs and priorities of the community.
Frequently Asked Questions
A BID (Business Improvement District) is a commonly used term for a type of Municipal Service District (MSD) authorized by NC General Statutes. MSDs can be defined and established by ordinance upon a finding that a district is in need of one or more defined services, facilities, or functions to a demonstrably greater extent than the remainder of the city.
A Municipal Service District (MSD) provides additional defined services, facilities, or functions to a specific location within the City. A government bond is a debt security issued by the government to support government spending, typically for infrastructure improvement projects.
All property taxpayers within the MSD boundary (see map) will be required to pay an annual assessment of $0.0877 per $100 of assessed value.
An interactive map showing MSD properties along with tax value and exemption status is viewable here.
The City of Asheville will administer a competitive Request For Proposal (RFP) process to select a management organization/service provider. As part of the RFP, the City will require the contracted management organization to establish a Steering Committee of local businesses and residents to guide the services and operations of the BID, subject to section 1.3 in this City Council resolution.
The service provider will nominate Steering Committee members for City Council consideration. City Council may accept the nominations, or request that the service provider submit alternative nominees. All applications will be made available to the City Council and the public for review prior to consideration of the recommended nominees.
This State Statute specifies minimum accountability and reporting requirements for all Municpal Service Districts/BIDs in North Carolina.
Additional accountability measures will be implemented for the Downtown Improvement District in Asheville.
The service provider will comply with all public records and open meetings laws for work associated with the service contract.
The service provider will be required to solicit opinions, feedback and input bi-annually regarding the effectiveness of District services and report to City Council annually (at minimum) on the needs of the service district, completed projects and pending projects. The service provider will also provide written reports to the City Manager's Office and Downtown Commission on a quarterly basis.
The MSD service provider will be required to provide accounting for funds expended pursuant to the service contract.
The Asheville City Council maintains the final authority to approve the annual MSD Budget and set the yearly tax rate.
For the intial year of operation, there will be an annual operating budget of $1,250,000.