Downtown Association Proposes Pilot 'Social Districts' and Open‑Streets Subsidies to Boost Local Spending

Hayden, executive director of the Asheville Downtown Association, urged the committee to pilot targeted social districts and expand open‑streets activations to help downtown businesses attract more local customers and increase dwell time. Hayden said a social district activated for permitted festivals and events would allow customers who buy alcohol from participating businesses to carry it within a mapped district during specified hours, removing the current requirement that a nonprofit sell and retain alcohol proceeds through a separate ABC permit during events.

Hayden described the current process for events such as the Independence Day block party: a nonprofit must secure an ABC permit, purchase alcohol through a distributor and set up separate sales on the street; alcohol sold by a business on its licensed premises cannot be carried into the street event. “The alcohol purchased through the permit cannot be consumed on a restaurant or brewery property and guests who purchase any alcohol on the restaurant or brewery property cannot come on to Cox Avenue … and consume the drink that they purchased there,” Hayden said, describing why the present rules can confuse guests and undercut brick‑and‑mortar revenue.

Hayden presented visitor data from Placer.ai showing an estimated daytime average of about 14,000 visitors downtown on a typical day, including roughly 2,000 residents, more than 5,000 inbound commuters and about 8,000 out‑of‑market visitors. She said the South Slope social district footprint would mirror prior event permits (for example, the Independence Day closure) and that a council‑adopted social district map would remain in place but require council action to activate it for particular events and times (for example, “South Slope Social District activated Saturday, 07/04/2026 from 5 p.m. to 9 p.m.” as a hypothetical example Hayden used).

Hayden offered case studies: the Taipani/Chaipani (post‑storm) march/celebration on Banks Avenue that drew about 2,000 people despite an expectation of 500; the July 4 South Slope block party (reported as nearly 15,000 people); and Grove Arcade tree‑lighting on Page Avenue. She said typical costs to close streets are nontrivial: Banks Avenue permit and closure for a single event cost roughly $800; Miracle on Wall Street (four Sundays) cost about $1,800 for closures, and event producers also pay for off‑duty police, barricade rentals and signage.

A downtown business email read into the record said July 4 returns were strong: bridal sales rose 277%, tips rose 300%, and hourly pay for employees increased from $28 to $41; one owner said employees who normally averaged $171 per shift earned $355 on July 4 and that overall sales were up 83% from the previous year. The owner added that patio sales were about $250 that day and suggested street access would have produced additional revenue.

Committee members supported piloting a focused approach rather than a citywide, always‑on district. Councilmembers and staff asked for legal review of state alcohol rules, cost estimates for city budget impacts, and clarity about neighborhood and resident engagement. Janice (city legal counsel) noted municipalities that have adopted social districts generally pass a local ordinance and execute case‑by‑case activations; she pointed to the interplay between state ABC statutes (Article 18) and municipal authority (G.S. 160A) as the controlling legal framework. Staff said they would return with estimated costs, legal guidance and an engagement plan to discuss at the next PEDE meeting.