Frequently Asked Questions about the proposed Downtown Asheville Business Improvement District (BID).
Q: What is a BID?
A Business Improvement District (BID) is a specific area within a city where property owners fund and control additional services or improvement projects to enhance their environment. Aimed at improving the quality of life and business conditions, BIDs fund programs targeting local needs and revitalization, with funding primarily sourced from property owner assessments within the district. Managed by a nonprofit and overseen by a diverse board of stakeholders, including property owners, residents, and business owners, BIDs ensure community involvement and maximum benefit. Their services vary based on local demands, offering everything from cleanliness and security to economic development and marketing. BIDs are a widespread strategy for urban improvement, with over 1,000 established across the United States and more than 50 in North Carolina alone.
Q: What services will the BID provide?
The BID will provide services as determined by a board of directors made up of property owners, business operators, and homeowners within the BID. The board can adjust services on an annual basis as needs and priorities change.
Safe and clean services will be the primary focus of the BID initially.
See the About page for more info.
Q: What will the BID cost?
All property taxpayers with the BID will be required to pay an annual assessment of $0.0919 per $100 of assessed value.
See the About page for an assessment calculator.
Q: What is the Asheville Chamber’s interest in BIDs?
A: The Asheville Area Chamber of Commerce is a not-for-profit, non-governmental membership organization that as part of its advocacy work supports policies that ensure everyone the right to feel safe in every part of our City and County. BIDs have been studied numerous times as part of the Chamber’s Intercity Visit best practice trips and are considered an important tool in many areas for providing additional services for the benefit of the district.
During the pandemic, employees, residents, business owners and the public expressed increased concerns over public safety and cleanliness in various areas of the community. The Chamber has advocated for additional resources with local government leaders.
The Chamber’s Executive Committee approved funding a feasibility study in the Spring of 2023 of whether Business Improvement Districts (BIDs) were a viable way to address concerns around services, safety and cleanliness in several areas that have concentrations of employment.
Q: Who conducted the feasibility study and operational plan?
A: The study was conducted by Progressive Urban Management Associates (P.U.M.A.) which is a Denver-based real estate economics and planning consultancy for downtown and community development (www.pumaworldhq.com). P.U.M.A. has worked on the creation of over 85 BIDs across the country, as well as having recommended that BIDs not be created in some cities that weren’t ready for such a tool. They have also prepared the operational plan. Funding for both the feasibility study and the operational plan was provided by the Asheville Chamber after hearing from many of their member businesses.
Q: What were the proposed locations in the Feasibility Study?
A: The initial areas evaluated for BID-readiness included:
- Downtown Asheville
- River Arts District
- West Asheville
The study found that downtown Asheville was BID-ready and should continue to move towards formation. You can read the results of the Feasibility Study here.
Q: What did the Feasibility Study process look like?
A: The approach included:
• Assessing the dynamics of Asheville’s economic, political, and planning environment to understand significant market changes that have occurred or are likely to occur.
• Determining current challenges and opportunities in each district.
• Understanding service and program priorities for a BID within each district (e.g., enhanced maintenance, service and presence on the street, beautification, marketing, etc.).
• Engaging a variety of stakeholders (i.e., residents, area employees, property and business owners in each district, civic and key opinion leaders, etc.) in a participatory process to evaluate BID feasibility.
• Understanding the real estate dimension within each district to see if market dynamics provide an opportunity to fund necessary services via a BID.
P.U.M.A.’s process includes four core components:
- District orientation and field work
- Database refinement
- Stakeholder outreach
- BID feasibility reports based on four key factors: a clear need, private sector support and champions, local government/elected official support, and real estate economics and pricing.
Q: When did the feasibility study occur?
A: The feasibility study was conducted March/April 2023 with the recommendations made available at the end of June 2023. See the full Feasibility Study.
Q: How has the community been involved in the process?
A: In collaboration with the Asheville Downtown Association, the Asheville Area Chamber of Commerce has actively engaged in a comprehensive process to explore the feasibility of establishing a Business Improvement District (BID) in the area. This initiative included conducting multiple stakeholder meetings and surveys to assess the need and scope of services a BID could offer. The feedback gathered through these surveys, along with insights from both group presentations and one-on-one meetings with stakeholders, has been instrumental in shaping the operational plan. This collaborative effort underscores the commitment to ensuring that the BID, if implemented, aligns closely with the community’s needs and aspirations. See results from the online survey.
Q: What is the level of service agreement and what was the process for its creation?
A: Asheville City Manager Debra Campbell has supplied a document of current services.
State statute requires that cities considering creation of a Business Improvement District provide their base level of services before a BID can be created. By law, cities cannot lower their level of service unless they face financial hardship and publicly address any changes.
Working up to this document, the City provided a draft outlining services currently being provided in the downtown area. Assistant City Manager Ben Woody and Downtown Planning Manager Dana Frankel worked with colleagues throughout the City of Asheville to compile the information.
The Level of Service Committee of the BID Steering Committee reviewed the information, along with the consultants, and requested more detail and clarification on a variety of issues. Several iterations of revisions, modifications, and additions were made to the draft based on the committee’s feedback before it was finalized.
Q: How do you hold the City accountable for fulfilling their obligations after the BID is formed?
A: The formation of a Business Improvement District (BID) not only offers a structured approach for enhancing downtown services but also empowers stakeholders with a unified voice to effectively address concerns at both city and county levels. By establishing a BID, stakeholders gain access to dedicated personnel focused on monitoring and improving downtown services, providing property owners, residents and local businesses with a powerful platform for advocacy and dialogue with city officials. This collaborative framework enhances community engagement and ensures that the collective interests of the area are represented and prioritized.
Q: Will there be contributions from the City or County?
A: State law does not mandate tax-exempt organizations to contribute to Business Improvement District (BID) assessments. Yet, in many cities, non-profits and government bodies voluntarily participate, offering support either financially or through in-kind services. The establishment of BIDs has proven to be a catalyst for enhancing collaboration among governmental entities, non-profits, and the private sector, significantly multiplying their collective impact for the greater good of the community.
Q: Will the Tourism Development Authority (TDA) contribute or have a role with the BID?
A: Explore Asheville’s offices are within the BID service area. They are tenants of a landlord who will likely include the assessment in their lease. If the question is whether the TDA will provide grants to the BID, the concept of their involvement is currently being explored. Legally the authority cannot provide operational or personnel expenses to other organizations; however, they do have two funds that enable them to invest in tourism-related capital projects with government or nonprofit partners through a competitive grant process (Legacy Investment from Tourism Fund and Tourism Product Development Fund). Exactly what that would look like is being explored.
Having a close working relationship with the Authority and Explore Asheville could be helpful in many ways. For example, one of the things businesses have mentioned is customers deciding to no longer frequent their business because of their concerns about cleanliness and safety. A marketing campaign that encourages the return of former customers could be a great way for the BID and Explore Asheville to collaborate.
Q: Can exempt properties within the BID voluntarily contribute?
A: Yes, and in many existing BIDs they have chosen to do so through either an annual cash donation or through the provision of additional services that enhance the BID. Buncombe County’s provision of sheriff’s deputies to assist in the patrol of downtown is an excellent example.
Q: Who will govern the BID?
A: After approval of the creation of the BID by City Council, the City will put out a Request For Proposal to select a non-profit management organization. The description of the BID Board of Directors, as developed by the BID Steering Committee, is included on the BID Governance page. The management organization would run the processes of creating a nominations committee, conducting a nominations process and creating a slate of the Board. That slate would then be submitted to City Council for acceptance.
See the BID Governance page for more info.
Q: Who will be the managing entity of the BID?
A: State regulations outline the qualifications for organizations eligible to oversee or manage a Business Improvement District (BID). Typically, non-profit entities are invited to submit proposals in response to a Request for Proposal (RFP) issued by the city. This process, mandated by state law, ensures that the most capable private agency is selected to meet the specific needs of the service district. This selection occurs only after the city council has officially established the BID.
Q: What does the initial board nomination process look like?
A: The consultants suggested guidelines for the nomination of the initial Board members and descriptions of the various roles to be represented, as part of the operational plan. Diversity in all its forms (sizes and types of business, ownership and rental status, location within the BID, gender, race, etc.), were factors in the process. A comprehensive call for nominations from interested parties will be held.
See the BID Governance page for more info.
Q: How is the BID Board held accountable?
A: BID Board meetings will be public and open. Monthly financials will be available, an annual report will be published, and an annual audit will be conducted to help maintain transparency and accountability.
Q: What is City Council’s role?
A: State statute defines the City Council’s role as the entity which approves the creation of the BID. In addition, City Council approves board nominations and the BID’s annual budget.
Q: How were BID boundaries selected?
A: Starting with the area the City defines as the Central Business District, the BID Steering Committee discussed the BID boundaries. As a result of the feedback from stakeholders, the area was contracted slightly as not to include Charlotte Street since it has many government buildings and little commercial business or foot traffic.
The BID is roughly described as having the boundaries of I-240 to the North, Knoxville Place to the west, Hilliard to the south, east of Asheland Avenue to the southwest, east of S. Charlotte Street to the west and College Place to the northwest. Click here to see the map.
Q: Will there be unintended consequences for areas just outside the BID?
A: This question has captured the attention of stakeholders, prompting the Asheville Downtown Association to seek insights from the International Downtown Association and to explore best practices concerning the impact of Business Improvement Districts (BIDs) on neighboring areas. Consultants indicate that in many cities, BIDs actively collaborate with adjacent neighborhoods to align and uphold quality of life objectives. Such collaborations typically fortify relationships between the BID and its surrounding communities, generating mutual benefits and enhancing the overall area’s vibrancy and appeal.
Q: How will BID staff interact with the unhoused population?
A: The proposal includes the recruitment of ambassadors, who will not only be trained on appropriate referral processes to connect unhoused individuals with beneficial programs and services but will also undergo comprehensive non-discrimination, de-escalation, and equity training. This initiative aims to foster a cohesive and respectful approach to interactions, guided by agreed-upon protocols developed in collaboration with local non-profits. The BID is committed to ensuring that its staff are well-equipped to support all community members with empathy and understanding, reflecting our dedication to inclusivity and equitable treatment for everyone.
Q: Are homeless services a part of the BID?
A: Homeless services are not a part of the BID as street outreach is already a part of the City’s current services. However, getting familiar with those experiencing homelessness will be a part of the job for Ambassadors as they engage with area businesses, residents, workers, and other service providers to ensure safer and cleaner streets and a more cohesive community.
Q: Are there safeguards for fragile small businesses or low-income residents within the BID?
A: Stakeholders have shared their concerns about ensuring that small businesses and low-income residents are not priced out of the district. As a result, the consultants have suggested that consideration be given to the development of an application for fee relief for those in distress. State law requires that all taxes be paid, so the relief if approved would come in the form of a rebate.
Q: What has been the Asheville Downtown Association’s involvement?
A: Like the Chamber, the Asheville Downtown Association has heard from members that there is a need for enhanced cleanliness and safety in Downtown Asheville, and believe a Business Improvement District can be an effective mechanism to achieve that goal. The Downtown Association has served as a key partner to the Chamber of Commerce on this initiative, with many members of their board and the executive director serving on the Steering Committee.
The Asheville Downtown Association has taken a position in support of the Business Improvement District and intends to play a significant role in the management of the BID’s operational plan. With a strong history of convening and being a trusted partner to the Downtown community, they will continue to take a leadership role in educating their members and stakeholders about the impact a BID could have in Downtown Asheville.
Q: What happens if the BID is not formed?
A: If the Business Improvement District is not formed, organizations such as the Asheville Chamber and Asheville Downtown Association will continue to advocate for clean and safe initiatives in Downtown. However, there would be no additional services beyond those provided by the City. As in years past, it would be entirely up to the discretion of the City of Asheville and Buncombe County to respond to enhancing their level of service and will be dictated by the annual budget, without a solution for additional funding.