The burden of planning for a retail district falls on the local government; however, day-to-day management is often provided by an outside organization. Having an organizational structure in place increases a downtown’s capacity for development and reduces responsibilities on the local government. Management structures help with access to funding resources and attract new development without burdening residents with increased taxes.

Downtown management organizations—such as Business Improvement Districts (BIDs), Merchants’ Associations, and Chambers of Commerce—help to unify the downtown by managing operating hours, merchandising, and marketing, and by maintaining common areas. These organizations allow the coordination of business improvement activities, usually by levying a special tax on businesses in the area that will be applied directly back into the district. These activities often include maintenance agreements, façade and streetscape improvements, and security provisions.