Raleigh’s downtown economy is booming, a new city-commissioned study confirms—but growth has been somewhat stunted by a sense of mistrust between local businesses and government.
On Tuesday, the Raleigh City Council got an abridged presentation of the 90-page Sociable City Assessment compiled by the Responsible Hospitality Institute (RHI) and paid for with $100,000 from the city’s American Rescue Plan Act funding.
RHI spent several months in 2024 interviewing residents, businesses, and city staff and touring downtown to put together the report, which documents the “social economy”—particularly nightlife—around Fayetteville Street and Glenwood South and recommends some changes.
“There’s a tremendous amount of strength in Raleigh’s social economy,” Jocelyn Kane, a senior policy advisor for RHI, told the council. “We do this a lot in other places, and this is one of the most fun places we’ve been.”
Kane nodded to downtown Raleigh’s public art, diversity, walkability, Sip n’ Stroll social district, and popular events and venues. Ninenteen million visitors to downtown spent more than $300 million on food and drinks over a year-long period from 2023 to 2024. But she said there’s room for improvement as Raleigh adds thousands of new residents and comes into its own as a major city.
According to RHI, Glenwood South is a “thriving neighborhood and destination” while Fayetteville Street has declined post-pandemic “from nightlife hotspot to no-go zone.” For Glenwood South, the consultants recommend improving parking options and encouraging visitors to travel there by public transit or microtransit to reduce congestion. For Fayetteville Street, the guidance centered around generating positive PR, improving the streetscape to be more inviting, and tightening security.
(Although the RHI report focuses heavily on public safety—namely, ensuring a police or private security presence downtown, at venue doors, and in parking areas—INDY previously reported that RPD has already increased its presence downtown, and crime rates are down over last year.)
One of the biggest citywide issues the RHI study identified is a “chasm of mistrust” between local businesses and the city. That’s due to changing enforcement of noise ordinances and because the Office of Special Events’ Hospitality and Nightlife Team has a reputation as an enforcer rather than a partner for downtown businesses, according to RHI’s research.
The city’s 2024 decision to enforce noise ordinances using a “reasonable person standard” rather than by measuring sound in decibels is creating anxiety and confusion for business owners, Kane told the council.
“The current standards that you’re using are tough on venues,” she said. “A reasonable person standard is not objective. …When you’re operating a venue, it’s very hard to know whether you’re being ‘reasonable’ every night.”
Kane added that Raleigh should consider rebranding the Hospitality and Nightlife Team to help dispel some of the “COVID police” associations they earned during the pandemic when they were responsible for monitoring businesses’ compliance with public health protocols.
RHI also found, in talking to business owners, that “it is difficult to open a new social venue” in downtown Raleigh because there’s “no specific information and guidance” about navigating the permitting process. That’s something the Hospitality and Nightlife Team could work on, Kane said.
The RHI study also recommends that Raleigh make the R-Line free again and give it a facelift—perhaps by painting or wrapping the exterior to mimic an old-timey tram—to encourage ridership. The downtown circulator bus was free until last year, when GoRaleigh resumed collecting fares on other bus routes post-pandemic.
The city council members seemed open to pursuing some of the RHI study’s recommendations, particularly those related to improving communication with downtown businesses and revamping the R-Line.
There was some pushback, too: council member Megan Patton pointed out that RHI only interviewed 18 residents, compared to 42 city employees and 11 business owners or operators. Council member Corey Branch bristled at Kane’s unflattering assessment of Raleigh’s noise ordinance, telling her he’d defer to the city’s experts.
Kane’s ultimate message to the council was that local businesses appreciate a “concierge government” that is responsive to them and not punitive. At the same time, she said, city officials should crack down firmly when venues violate noise and occupancy ordinances. It sets a good precedent, she said.
“You’re a big city,” Kane said. “You have to put your big city pants on.”
The city council won’t take immediate action on the study’s recommendations but may continue to discuss them at future meetings. You can read the full report for yourself here.
Chloe Courtney Bohl is a Report for America corps member. Follow her on Bluesky or reach her at [email protected]. Comment on this story at [email protected].