Asheville -- October 15, 2026: The City of Asheville has announced a $265,000 investment from Downtown Municipal Service District (MSD) sales tax revenues to assist local businesses during major upcoming infrastructure projects and refresh the area's holiday decor. Coordinated in close partnership with the Asheville Downtown Improvement District (ADID), the funding targets direct construction impact mitigation along key commercial corridors as well as the addition of approximately 100 new solar-lit wreaths to enhance the downtown experience for locals and visitors alike.
City of Asheville and ADID Partner to Invest $265,000 in Downtown Business Mitigation and Seasonal Enhancements
ASHEVILLE, N.C. — Asheville City Council has approved a $265,000 investment sourced from Downtown Municipal Service District (MSD) sales tax revenue. The funding will directly assist downtown businesses through pending construction phases and replace outdated seasonal decorations through an ongoing partnership between the City of Asheville and the Asheville Downtown Improvement District (ADID).
The investment will be deployed across two key initiatives overseen by ADID:
Construction Impact Mitigation Program: $175,000 allocated to lessen construction impacts during three major City-directed improvement projects.
Seasonal Decoration: $90,000 designated for the acquisition and installation of updated seasonal decor throughout core commercial areas.
These targeted allocations reflect a collaborative push between municipal leadership and ADID to address urgent business district requirements while furthering the MSD’s mission to support downtown’s overall public health, safety, convenience, welfare, and economic resilience.
Mitigating Construction Impacts for Local Businesses
The $175,000 mitigation initiative focuses on providing tailored support to merchants, property owners, and patrons navigating three major City infrastructure ventures:
North Lexington Avenue Sidewalk Restoration
Coxe Avenue Streetscape
Eagle and Market Street Enhancements
ADID plans to coordinate with City staff alongside impacted merchants to form corridor-specific solutions tailored around staging plans, construction schedules, and specific corridor disruptions. ADID will leverage its close community connections to provide flexible, immediate assistance on the ground. Meanwhile, the City of Asheville maintains oversight of construction operations, including logistics, site safety guidelines, contractor coordination, and regular public progress reports.
“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.”
Upgraded Seasonal Decor Along Commercial Corridors
A total of $90,000 will fund roughly 100 reusable, solar-lit wreaths along prime commercial streets. These installations build upon earlier lighting programs established by ADID and the Asheville Downtown Association Foundation in Pack Square Park and Pritchard Park in 2024, along with Triangle Park additions in 2025. The new fixtures are intended to foster an attractive, festive atmosphere for shoppers, diners, and visitors during the holiday season.
Strengthening the Downtown Partnership
ADID operates under city-contracted goals aimed at cultivating an inclusive environment, boosting commercial vitality, raising community quality of life, and supporting independent and small businesses. Combining City oversight of civic infrastructure with ADID’s localized network and programming allows both entities to meet core downtown priorities efficiently.
“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 continue delivering transparent reporting on programs and expenditures under its municipal contract while consulting directly with the ADID board and downtown stakeholders.
How Downtown MSD Sales Tax Revenue Is Utilized
Formed by City Council in 2024, the Downtown MSD provides enhanced services and targeted investments across the central business district. Alongside the initial Property Tax Assessment that took effect in July 2024, the City started collecting its portion of local MSD-related sales tax in August 2025.
The City gathered $487,932 in revenue prior to July 1, 2026.
An additional $400,000 in revenue is projected across FY2027.
As established within the FY2027 adopted budget, Council directed the expected $400,000 toward cultural arts and community events, along with expanded Asheville Police Department (APD) downtown coverage—including dedicated overtime bike patrols and new e-bike equipment.