Asheville City Council has approved a $265,000 investment from Downtown Municipal Service District (MSD) sales tax revenue to support downtown businesses during upcoming construction projects and replace aging seasonal decorations through a City of Asheville and Asheville Downtown Improvement District (ADID) partnership. This will be done through two special initiatives managed by ADID:
- Construction Impact Mitigation Program:
- $175,000 for construction impact mitigation during three major City-led construction projects
- Seasonal Decoration:
- $90,000 for the purchase and installation of new seasonal decorations.
The investments represent a collaborative effort between the City and ADID to respond to current downtown needs while advancing the MSD’s broader purpose of supporting downtown’s public health, safety, welfare, convenience and economic well-being.
Supporting downtown businesses during construction
The $175,000 construction impact mitigation program will support businesses and downtown stakeholders during several upcoming City construction projects:
- North Lexington Avenue Sidewalk Restoration
- Coxe Avenue Streetscape
- Eagle and Market Street Enhancements
ADID will work with City staff and impacted stakeholders to develop corridor-specific approaches based on each project’s construction schedule, staging plans, and anticipated impacts, and drawing on ADID’s existing relationships with downtown businesses and stakeholders and ability to provide nimble and responsive support. The City will continue to lead construction management, including site safety, logistics, project coordination and general public information.
“This is a great example of how the City and ADID can work together to address the construction impacts of major public investments,” said Assistant City Manager Ben Woody. “The City remains responsible for delivering the projects, while ADID can provide additional support to businesses navigating the disruption, and help maintain an active and welcoming downtown environment.”
New seasonal decorations for downtown
Funds totalling $90,000 will go to the purchase and installation of approximately 100 reusable, solar-lit wreaths along downtown Asheville’s primary commercial corridors. The new wreaths will complement existing investments by the Asheville Downtown Association Foundation and ADID in seasonal lighting displays at Pack Square Park and Pritchard Park in 2024, with the addition of Triangle Park in 2025. This additional investment will continue to enhance a welcoming, seasonal environment for residents and visitors and contribute to the overall experience of downtown.
A partnership focused on downtown
ADID’s contracted objectives include creating an inclusive downtown environment, improving the downtown experience and quality of life, and increasing business activity and investment with an emphasis on supporting small and independent businesses. Expanding on the ongoing partnership, the two new special initiatives combine the City’s leadership and oversight of public infrastructure with ADID’s local relationships and programming expertise to address targeted downtown needs.
“This investment reflects the value of having the City and ADID working together toward a shared goal of a thriving downtown,” said Hayden Plemmons. “These projects give us an opportunity to support businesses through construction while also making investments that improve the downtown experience for the community.”
ADID will report on activities and expenditures through its existing contract with the City, and will continue to work directly with downtown stakeholders and the ADID board.
Downtown MSD sales tax revenue at work
The Downtown MSD was established by the City in 2024 to provide enhanced services within the downtown area. The City began receiving a portion of local sales tax revenue associated with the MSD in August 2025, in addition to the Property Tax Assessment that began in July 2024. The City received $487,932 in this revenue prior to July 1, 2026, and estimates approximately $400,000 in additional revenue during FY2027.
As part of the FY2027 budget, City Council approved use of the anticipated $400,000 to support downtown events and arts programming, as well as Asheville Police Department (APD) services downtown, specifically for new e-bikes and overtime bike patrols as an enhancement to downtown coverage this fiscal year.