Council awards downtown Business Improvement District contract to ADID after public hearing and debate over term, oversight and hiring

The City Council on Jan. 14 authorized the city manager to execute a contract with the Asheville Downtown Improvement District (ADID) partnership to deliver Business Improvement District (BID) services in downtown Asheville.

Council established the municipal service district and collected assessments starting July 1, 2024. Staff issued a competitive RFP to select a service provider; two proposals were received and evaluated by a panel of staff and downtown commission representatives. Staff recommended ADID -- a partnership among the Asheville Downtown Association, Asheville Chamber of Commerce and Next Street -- which scored highest in the evaluation.

Key elements of the contract and ADID proposal include safety, hospitality and cleanliness services, an ambassador/community-connector team (the proposal described an initial team of nine staff including seven community connectors and two supervisors), data collection and reporting, MWBE engagement goals, and a business-resiliency coordinator to help downtown businesses recover from storm-related interruptions. The proposal outlined employer-paid benefits and proposed initial coverage of Monday through Sunday from 9 a.m. to 11 p.m., with seasonal adjustments expected.

Staff clarified the contract scope specifically prohibits the ambassador team from acting as security or carrying weapons. The contract requires an annual cost proposal and an accounting of spending; council retains final budget authority through the city's annual budget process. Council also required a steering committee; ADID must return with a proposed slate for council approval.

Public comment before the vote included supporters who cited national BID examples and downtown merchants in favor, and critics who urged a shorter, one-year contract rather than a multi-year term, more community oversight for the steering committee, and scrutiny of proposed technology such as pedestrian-tracking tools. Some speakers recommended stronger connections to workforce development and hiring people with lived experience; ADID partners said they expect to prioritize MWBE hiring and that Next Street will operate the ambassador program and run workforce development components.

Council member debate focused on contract term length and the need for strong oversight. Staff said the standard city approach is a one-year term with two one-year options; to provide bidders a reasonable runway to stand up operations and invest in equipment, the evaluation addendum set the prospective total term at three years (one year plus two optional years). Staff and the city attorney emphasized council's continuing annual control via the budget process and termination options if the provider fails to perform.

Council voted to authorize the contract. Staff said the city hopes initial services will begin in March 2025, with quarterly reporting to the city manager's office and the downtown commission and an annual statutory report to council. The contract must be operational by June 30, 2025, per state requirements.

Why it matters: The BID places additional, assessment-funded services focused on safety, hospitality and cleanliness under a contract with a private operator. Council built requirements for oversight, reporting, MWBE participation and limitations on the ambassador role into the scope.

What happens next: ADID will return with a steering-committee slate for council approval, will finalize its staffing plan and budget details, and is expected to begin recruitment and training if the contract is executed.

Quotes and attributions are taken from the Jan. 14 council briefing and the public hearing record.