On July 15, 2008, the Raleigh City Council voted unanimously to establish a municipal service district (MSD) — or business improvement district — on Hillsborough Street. The objective of the MSD is to help revitalize areas along Hillsborough Street. The City has a similar MSD in the downtown area.

MSDs are a funding mechanism used to provide revenue for a variety of services that enhance existing municipal services in the business improvement district. Additional revenue collected from special assessments on property owners in a MSD is used for maintenance, business recruitment, advocacy, management, marketing, security and other services. The special assessment for property owners in the Hillsborough Street MSD will be 0.10 cents per $100 of assessed property valuation. The special tax rate will take effect on July 1, 2009. It will expire on June 30, 2014 unless extended by the City Council.

The Hillsborough Street MSD will run east-to-west along the street from St. Mary’s School to Meredith College. The MSD’s southern boundary will follow the railroad right-of-way that crosses the N.C. State University campus. The northern boundary is generally areas one block north of Hillsborough Street. The MSD contains 123 acres of land and more than 2 million square feet of built space. There are approximately 210 businesses in the Hillsborough Street MSD.

The City of Raleigh has worked with neighborhood residents, business owners and other property owners in studying the establishment of a MSD along Hillsborough Street. Leading the City’s Hillsborough Street MSD Formation Study was a volunteer steering committee which consists of Hillsborough Street property owners and others with an interest in the area. The City hired Downtown Professionals Network to manage the MSD study.