MSD Sales Tax Funding to Support Downtown Businesses During Construction + Refresh Seasonal Decorations
City Council Approves $265,000 to Support Downtown Businesses During Construction and Refresh Seasonal Decorations
Asheville City Council has approved a $265,000 investment from Downtown Municipal Service District (MSD) sales tax revenue through a partnership between the City of Asheville and the Asheville Downtown Improvement District (ADID). ADID will manage two initiatives: a construction impact mitigation program and a seasonal decoration refresh.
Supporting Downtown businesses during construction
$175,000 will support businesses and Downtown stakeholders during three City-led construction projects:
North Lexington Avenue Sidewalk Restoration
Coxe Avenue Streetscape
Eagle and Market Street Enhancements
ADID will work with City staff and affected stakeholders to develop approaches for each corridor, based on its construction schedule, staging plans and expected impacts. The City will continue to lead construction management, including site safety, logistics, project coordination and general public information. ADID will add business support, drawing on its relationships with Downtown businesses and its ability to respond quickly.
“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
$90,000 will fund the purchase and installation of about 100 reusable, solar-lit wreaths along Downtown’s primary commercial corridors. The wreaths build on seasonal lighting displays funded by the Asheville Downtown Association Foundation and ADID at Pack Square Park and Pritchard Park in 2024, and at Triangle Park in 2025.
A partnership focused on Downtown
The two initiatives combine the City’s oversight of public infrastructure with ADID’s local relationships and programming experience. ADID will report on activities and expenditures through its existing contract with the City, and will keep working directly with Downtown stakeholders and the ADID board.
“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.”
Where the MSD revenue comes from
The City established the Downtown MSD in 2024. It began receiving a portion of the associated local sales tax revenue in August 2025, in addition to the Property Tax Assessment that began in July 2024. The City received $487,932 in sales tax revenue before July 1, 2026, and estimates about $400,000 more during FY2027. The FY2027 budget directs that anticipated $400,000 to Downtown events and arts programming and to Asheville Police Department services, including new e-bikes and overtime bike patrols.
