Downtown Business Improvement District Implementation
Downtown Business Improvement District Implementation
The City of Asheville is implementing a Business Improvement District (BID) in Downtown Asheville effective July 1, 2024 following Council Action on June 11, 2024. A BID 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.
On January 14, 2025, City Council authorized staff to execute a contract with the Asheville Downtown Improvement District (ADID) as the operator of the BID - responsible for delivering supplemental services in the district. (See more information here.)
ADID is looking for individuals to join the inaugural Board of Directors, seeking diverse representation from local businesses, residents, and community leaders to help oversee services and keep Downtown Asheville beautiful and welcoming for all. Those interested in serving can apply by March 20 here: https://form.jotform.com/AVLDowntown/adidboardapplication
Background
A BID is a type of municipal service district 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 BID boundaries within a geographically defined area such as downtown.
Beginning in the summer of 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 BID in downtown Asheville.
Based on the needs identified through this group's engagement with stakeholders, a service budget of approximately $1.2M was proposed along with an operational plan/report that outlines the proposed supplemental services. A website with more information on what the group advocated for is here.
With votes at the May 13, and June 11, 2024 City Council meetings, City Council established the BID boundary and tax rate (.0877 per $100 assessed valuation of taxable property). This establishment is included in the approved FY 2024-2025 budget and tax rate ordinance.
Also on June 11, 2024, City Council passed a resolution that outlines desired BID services, reporting and engagement requirements for the contracted operator as well as the governance/advisory structure to be implemented by the operator. These elements were incorporated into the RFP for a BID Service Provider.
The City of Asheville launched an Request for Proposals (RFP) process on September 20, 2024 to facilitate a competitive process of contracting with an operator to deliver supplemental services for the defined Downtown Business Improvement District (BID) area (see map here). As outlined above, these supplemental services would be funded through the approved tax assessment for this dedicated purpose. (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, with services expected to launch in Spring 2025.
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.
The input received further informed the scope of services outlined in the RFP. 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 type of municipal service district 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.
A BID is a type of municipal service district authorized by NC General Statutes that 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 BID boundary (see map) will be required to pay an annual assessment of $0.0877 per $100 of assessed value.
An interactive map showing BID 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 BID in Asheville.
The service provider will comply with all public records and open meetings laws for work associated with the BID contract and BID Steering Committee.
The service provider will be required to solicit opinions, feedback and input bi-annually regarding the effectiveness of BID 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 BID service provider will be required to provide accounting for funds expended pursuant to the BID contract.
The Asheville City Council maintains the final authority to approve the annual BID Budget and set the yearly tax rate.
For the intial year of BID operation, there will be an annual operating budget of $1,250,000.