ASHEVILLE, N.C. (828newsNOW) — Asheville has taken a key step toward building a new arts and entertainment facility downtown through a public-private partnership with ATG Entertainment.

The city announced Thursday it has signed a memorandum of understanding with the international live entertainment company to begin predevelopment work on a large-scale venue in the central business district.

“Large events that bring together both visitors and residents have become an important part of Asheville’s recovery, not just economically, but as a way to reconnect our community,” Mayor Esther Manheimer said in a statement. “A new performing arts and entertainment space has the potential to support our vibrant creative culture, uplift local businesses and create good jobs across the region.”

The agreement commits both sides to work toward a long-term deal that city leaders said could bring significant cultural and economic benefits. Unlike previous exploratory studies, this partnership will launch planning, impact analysis, business modeling, workforce assessments and venue design studies.

City officials are also considering applying for federal Economic Development Administration disaster recovery grants, made available in the wake of Tropical Storm Helene, to help fund the project.

Lori Hotz, CEO of ATG Entertainment North America, said the company is eager to explore the Asheville market alongside the city, ArtsAVL and Buncombe County Tourism Development Authority.

The city said initial studies and stakeholder engagement are expected before the end of the year. Since 2005, Asheville has commissioned multiple reviews of potential downtown entertainment venues. This round of planning will be informed in part by ArtsAVL’s ongoing Arts Recovery Plan.