Board places pair of debated ordinances on second reading

The next step was taken on ordinances amending business licenses and alcohol code.

An ordinance that would raise the late fees for business licenses has been placed on its second reading after a second round of debate at Tuesday's Board of Directors meeting.

The ordinance, which has drawn criticism from several directors, received a major amendment Tuesday that removed one of the more contentious elements of the ordinance: the reinstatement of business license fees.

Debate on the ordinance focused on whether the presence of a fee to get and renew a business license discouraged business owners from allowing their licenses to lapse before renewing them late. City Administrator Phillip Patterson said data from 2016 compared to data taken before license fees were removed showed the delinquency rate was lower while a fee was in place, though the data wasn't as good back then.

During the portion of the hearing dedicated to public comments, Kelly Williams asked why the city thought the fees should return.

"Is it a privilege to do business here or is it a privilege for the city to have businesses," Williams asked.

Director Lucas Roebuck said he agreed, and that he favored the ordinance without the fees, retaining the expanded fines for those businesses that are late in renewing their licenses.

"I absolutely agree with the sentiment that we are privileged to have your business," Roebuck said.

Director Brad Burns, who had been in favor of keeping the fees during the first hearing in April, said he had gotten feedback from constituents and that he was no longer in favor of the fees. The late fees should be enough to assign value to renewing licenses, he said.

Director Carol Smiley made a motion to place the ordinance on its second reading as-is, including the fees. Burns countered with a motion for an amendment to remove the establishment of license fees, which required a separate vote because it was considered an unfriendly amendment to Smiley's original motion.

The amendment to remove fees from the ordinance passed 4-3, with "no" votes from Directors Bob Coleman, Frank Johnson and Smiley. The subsequent motion to place the ordinance on its second of three readings passed 5-2, with Coleman and Smiley dissenting.

A second ordinance was placed on its second reading next. The ordinance would establish regulations for small breweries and nano-breweries operating in the city.

Roebuck said he still did not like the inclusion of a small brewery designation in the ordinance, saying that the ordinance was intended to allow a single nano-brewery to open in the city's downtown district.

"Right now, as I see it, the moral costs outweigh the economic benefits," Roebuck said.

Director Amy Smith said she was in favor of the ordinance in its entirety.

"We need to take a broad view of the future and not design ordinances for just one project," Smith said.

City Attorney Jay Williams said that even if the ordinance was not passed, small breweries that were licensed by the state would still have the right to do business in Siloam Springs. Creating an ordinance would allow the city to have some control over where the small breweries could be located.

Burns offered a motion to place the ordinance on its second and third readings simultaneously, which would have opened the door for adoption of the ordinance that night, but he retracted that motion after Director Steve Beers and Smiley voiced their apprehension with closing debate after only two hearings. Ultimately, the ordinance was placed on its second reading unanimously.

The board also:

• approved purchase of property for a future dog park. The city will be reimbursed $8,000 by Simmons Foods for the purchase. The remaining $10,000 in value of the property was donated by the property owners.

• placed an ordinance amending the city's use units to include small breweries and nano-breweries on its first reading.

• placed an ordinance for the annexation of the 2200 block of North Carl Street on its first reading.

• approved an ordinance declaring two fire department vehicles surplus and purchasing a new fire engine.

• placed an ordinance for the vacation of a utility easement on the 1000 block of Cheri Whitlock Drive on its first reading.

• approved a resolution allowing the city administrator to enter and renew routine lease agreements.

• appointed Beers and Burns to the Medical Springs Park Steering Committee, which will help oversee improvements made to the park around the library.

General News on 04/23/2017