ASHEVILLE, N.C. (828newsNOW) — Downtown Asheville businesses facing street and sidewalk construction could get some help from the city, but exactly what that help will look like is still being worked out.
Asheville City Council approved $175,000 on Tuesday, Oct. 13, to support businesses affected by construction on North Lexington Avenue, Coxe Avenue and Eagle and Market streets.
The money could pay for signs directing customers to businesses, marketing campaigns and activities designed to bring people downtown during construction. Whether businesses will receive any direct financial assistance remains unclear.
The Asheville Downtown Improvement District will administer the program and work with merchants to determine what help is needed.
The money is part of a $265,000 downtown spending package that also includes $90,000 for seasonal decorations.
Keeping businesses accessible during construction
The three projects are intended to improve downtown streets and sidewalks, but the work could also create headaches for businesses that depend on customers being able to reach their doors.
On North Lexington Avenue, the city plans to restore sidewalks between Walnut Street and Woodfin and Hiawassee streets.
Coxe Avenue is slated for streetscape improvements intended to make the corridor safer and more accessible for pedestrians, cyclists and drivers.
The Eagle and Market Street project focuses on improving public spaces in and around The Block, Asheville’s historically Black business district.
Each project presents different challenges, and the city says the assistance will be tailored to the construction schedule and expected disruptions on each street.
For Eagle and Market streets, potential assistance includes signs helping customers find businesses, marketing efforts, activities to attract visitors and coordination with merchants to help them remain accessible during construction.
The city has not announced how much of the $175,000 will be spent on each corridor or whether businesses will receive money directly.
Assistant City Manager Ben Woody said the arrangement allows the city to concentrate on the construction while ADID works with businesses.
“This is a great example of how the city and ADID can work together to address the construction impacts of major public investments,” Woody said in a city news release.
The city will remain responsible for construction schedules, safety, logistics and public information. ADID will handle the additional business support.
A new responsibility for the downtown district
The construction assistance adds another responsibility for ADID, which recently completed its first year providing enhanced services downtown.
The organization has developed an ambassador program, with employees helping visitors, assisting businesses and addressing concerns about downtown conditions.
Its work has also included efforts to improve the appearance and experience of downtown public spaces.
The new construction assistance program puts ADID in a more direct role helping businesses deal with disruptions from public projects.
That could mean directing customers around construction, promoting businesses that remain open or organizing activities to encourage people to visit affected streets.
ADID Executive Director Hayden Plemmons said the partnership gives the organization an opportunity to support businesses while the city makes improvements downtown.
“These projects give us an opportunity to support businesses through construction while also making investments that improve the downtown experience for the community,” Plemmons said in the city’s announcement.
The organization will report its spending and activities through its existing contract with the city.
What remains unclear is how the city and ADID will determine whether the assistance is working.
How much help will $175,000 provide?
For merchants, the concern is what happens when construction makes parking harder to find, changes traffic patterns or limits access to storefronts.
Signs and advertising could help customers find businesses that remain open. Events and promotions might bring additional foot traffic to affected areas.
But those measures don’t necessarily make up for lost sales.
The $175,000 also must cover assistance associated with three separate construction projects.
The city has not released a breakdown showing how the money will be divided or what specific services businesses can expect.
Nor has it announced whether merchants will be able to request particular types of assistance or how the program’s effectiveness will be measured.
Those details will matter as construction moves forward.
$90,000 for seasonal decorations
Council also approved $90,000 to purchase and install approximately 100 reusable, solar-lit wreaths along downtown commercial streets.
The new decorations will replace aging displays and complement seasonal lighting installed in Pack Square Park and Pritchard Park in 2024 and Triangle Park in 2025.
The business assistance and decorations will be paid for with sales tax revenue designated for Asheville’s Downtown Municipal Service District.
The district was established in 2024 to provide additional services downtown. It is supported by a special property tax assessment and a portion of local sales tax revenue.
According to the city, Asheville received $487,932 in designated sales tax revenue before July 1, 2026, and expects approximately $400,000 more during the current fiscal year.
The $265,000 approved this week comes from the sales tax funding, not a new property tax increase.
For downtown businesses, the next step is seeing how ADID turns the $175,000 into assistance on the ground.
The city has committed the money. How much difference it makes will depend on what happens once construction begins.