Downtown Asheville BID approved by City Council in 5-1 vote; 1st of 2 required votes

ASHEVILLE - City Council approved a downtown Business Improvement District May 14, which would leverage a special tax on property owners to fund additional services for the city's central business district. It is the first of two votes required to establish the BID, and despite vocal opposition at both the night's meeting and a previous public hearing, it found strong conceptual support among council members.

The vote passed 5-1, with council member Kim Roney the sole holdout. Council member Sheneika Smith was not present. The second, and final, reading is June 11.

"I think a BID can be a really powerful collaboration for a downtown, for our economic health as a community and ultimately as a region," said council member Maggie Ullman.

“Pick a city (in North Carolina). They probably have a BID. It is such a common best practice right now for downtown health. There is clear agreement that right now we need more funds to support downtown.”

Where did the BID come from?

The initial BID proposal was brought by the Asheville Downtown Association and Chamber of Commerce, with "clean and safe" the slogan at its center. The Chamber contracted with an outside firm, Progressive Urban Management Associates, to conduct a feasibility study and to prepare the statutorily required BID operational plan.

It imagines uniformed “hospitality ambassadors" to engage with visitors, business owners and the city's homeless population by directing them to services, as well as enhanced cleaning, like litter removal, street sweeping and pressure washing.

Supporters argue a BID holds the ability to nimbly respond to downtown's needs.

The initial ordinance, voted on May 14, is limited to establishing the BID boundaries and setting the tax rate. The most contested details, like governance structure, management and services to be delivered, are not included in this vote.

City staff said this guidance could come at a later date, but before implementation of BID service delivery.

Council members said they would discuss crafting a resolution at its June meeting to create some of these guardrails. The intent was to pass the resolution along with the second vote. Ullman said it could detail, for example, the makeup of the BID's governance board.

It would serve as direction for a future request for proposals, which would be issued by the city to hire an outside organization to manage the BID. Each year, City Council would set the tax rate, approve any new service contracts and an annual budget. In the initial plan, the Chamber and ADA said they intend to respond to the city’s RFP.

"I do believe downtown should have a BID," said council member Sage Turner. "But it is how it is managed and by whom and what for that I have concerns lingering. That's where this idea of a resolution could help resolve some of that."

Turner said she was ready to say "yes" that night, but her second "yes" in June was contingent on the resolution.

But what teeth would that resolution have? City Attorney Brad Branham answered that question in a May 9 virtual council meeting:

"Generally speaking, I anticipate that the items that would be included in that would be more of a reflection of intent from council, as opposed to a binding statement," he said.

Concerns around the BID

While the proposal has found backing among some business and property owners in the central business district, others worry it will serve only to privatize public spaces, pushing out the city's unhoused or sending people without the right training to respond to mental health crises.

Rather than result in better service, they fear it will mean more calls to police, community paramedics and other providers, many of which are strapped for resources and staff.

"Common practice is not best practice," said Rachel Stark at the night's public comment. She's an artist with a studio in the South Slope, within the BID boundaries, she said, and even as she described it, "miraculously affordable," it's still a struggle to afford.

Speaker Grace Barron said the increased property tax will be passed on to tenants, further impacting people's ability to maintain housing.

"I feel like this BID process, for the general public, feels extremely rushed," said another speaker, Nina Tovish. "Now you all are scrambling to create a non-binding resolution in a few weeks in the hopes that will help people swallow this pill."

Roney argued that a BID was the wrong tool for the job. The "true solution" for enhanced safety and hospitality, she said, is to partner with Buncombe County to expand its community paramedics program, with "uniquely qualified behavioral health and peer support specialists." Begin with a dedicated unit for downtown, she said, and then grow it citywide.

Of maintenance, she said the solution would be found in securing living wages for the city's public works and sanitation staff. Third party management, instead of in-house services, in both cases she said would be more expensive.

With further tax increases on the horizon, "we will have tied up all of our resources in taxing downtown and leaving a gap. And I'm not OK with that."

A petition with 949 signatures as of 11 p.m., May 14, is calling for council to oppose the BID, with concerns around "private security," additional tax burdens and lack of public oversight. Among organizations that have signed on are BeLoved Asheville, Asheville Food and Beverage United, Sow True Seed, The Steady Collective and more.

A split vote from the city's Downtown Commission failed to send an affirmative recommendation forward to City Council April 26. They sought additional input on the request for proposals, confirmation of an open board application process and further clarity around the role and powers of ambassadors.

What is a BID?

A Business Improvement District, or Municipal Service District, as it is defined by state statute, is used to provide enhanced "services, facilities or functions" within a specific geographic area — in Asheville's case, its downtown. It is not intended to replace city services, but to supplement them.

The tax rate set by the ordinance is 9 cents per $100 of assessed value. It would be levied against property owners within the BID's downtown boundaries. It encompasses much, but not all, of the central business district.

The assessment would generate a $1.25 million operating budget.

There are 66 BIDs with a "placemaking focus" in North Carolina, according to Jason Epley, executive director of the N.C. Downtown Development Association. He uses tax rate data from the N.C. Department of Revenue to make the tally, discounting watershed and sewage districts, and other exceptions.

The current push echoes a similar effort more than a decade earlier. In 2012, a district was created, but the BID stalled for lack of funding.

Mayor Esther Manheimer, who was on council during the 2012 push, said she felt the current effort was more comprehensive.

"I hope that it helps us establish a better and more robust partnership so that we have these entities to operate through, to work with the city, to make sure the concerns around downtown are being addressed," she said.

More: Split BID vote at Asheville Downtown Commission sends council muddled message; What now?

More: 'Clean and safe' for who? Asheville council hears anxieties around proposed BID

Sarah Honosky is the city government reporter for the Asheville Citizen Times, part of the USA TODAY Network. News Tips? Email shonosky@citizentimes.com or message on Twitter at @slhonosky. Please support local, daily journalism with a subscription to the Citizen Times.

This article originally appeared on Asheville Citizen Times: Downtown Asheville BID passes 1st City Council vote 5-1