ROCKY MOUNT -- Always looking for ways to help businesses and recruit new ones, town officials are considering a new tax incentive district.

Thursday night, the town council and planning commission discussed implementing an arts and cultural district.

Businesses focusing on art and music activities in a designated area would get certain perks for locating in the district. Incentives could include a reduction in permit fees, user fees or any type of gross receipt tax.

The council is still determining which parts of town would be included in the district.

"We want to help prop up retail businesses," said Town Manager James Ervin. "For the next 12 months we want to focus so we don't lose the mom and pops, the ones that make us."

The town is working on other programs to help local businesses through the tough economic times, including music grants for downtown businesses that want to host live music events.

Both boards still have to work out details of the district, such as whether both established and new businesses would be eligible for the tax breaks, said Assistant Town Manger Matt Hankins.

Even though the tax breaks would cut back on money the town would receive from a business, the fact that businesses would fill vacant buildings that currently aren't providing any revenue and create jobs is a benefit, Ervin said.

And studies show that people who visit localities with "art venues" tend to stay an extra day and spend twice as much money, said Katie McElroy, director of the Community Partnership for Revitalization.

The General Assembly created the arts and cultural district in 2001, but not many localities took advantage, Hankins said.

Revisions were made this year, allowing for broader interpretations of what businesses can be included and what incentives localities can offer, he said.