City board members voted 6-1 against Ordinance 20-09 during their meeting on Tuesday with Brad Burns casting the only vote in favor of the ordinance, which would have allowed for a temporary entertainment district in downtown Siloam Springs.
Directors Reid Carroll, Bob Coleman and Carol Smiley all said they received the largest amount of input from citizens on this issue than on any other they have heard. Several residents, some of whom own downtown restaurants and some who don't, came to City Hall to voice their opinions.
The ordinance came about during the directors' comments portion of the city board meeting on April 21. During that meeting Burns broached the subject of a temporary entertainment district to help restaurants who have suffered shortfalls during the coronavirus pandemic.
Several downtown restaurants, such as Café on Broadway, Fratelli's, Tintos and Tapas, and 28 Springs, do not have outdoor seating and the ordinance would allow those restaurants to serve alcohol to patrons who wish to sit outside of one the restaurants and have dinner on tables set up on the sidewalk.
Burns cited Arkansas Act 812, which passed in April of 2019, to promote hospitality and tourism, according to a staff report prepared by Don Clark, community development director. Arkansas Act 812 would allow Arkansas cities to have a permanent or temporary designated entertainment district, the staff report states.
The proposed entertainment district was slated to be read one time with an emergency clause because it is designed to go into effect immediately to provide a boost to local businesses. City staff researched the subject and solicited the opinion of the board during the May 5, city board meeting.
There were mixed reactions to the idea of the entertainment district, temporary or not. During the May 5 meeting Smiley said she liked the idea and Director Lesa Rissler briefly warmed to it.
City staff crafted an ordinance which would allow people to purchase a cup from a restaurant with the restaurant's logo on it and carry that cup throughout the district, which would extend from Ziggywurst down to University Street, from University to Broadway Street and down the remainder of Broadway to Main Street.
Since the ordinance would allow people to carry alcohol from one business to another rather than just allow people dining outside to order a drink with their meal, the staff recommended against approving the ordinance, Clark said.
Several citizens spoke for and against the ordinance. Sherri Norwood said she appreciated Burns' willingness to help businesses in town, but felt the proposal goes beyond just letting customers order a beer with their pizza or wine with their steak.
"A public drinking district would change the character of our downtown," Norwood said.
She also said this should have been considered with care and not undertaken as an emergency measure. Norwood applauded city staff for other initiatives like the library, splash pad and amphitheater, but said the city did not consider the true cost on this issue. She recommended that the city should have done a cost benefit analysis at least to determine if an entertainment district would have been right for the city.
Patty Arnett, one of the owners of Café on Broadway, said downtown restaurants have been struggling since the start of the coronavirus pandemic.
"In the time it would take to do a cost analysis," Arnett said. "I can tell you that the businesses downtown might shut their doors."
She said the entertainment district might make a real difference for restaurants such as Tintos and Tapas, Fratelli's and 28 Springs. Arnett also said the best part is the entertainment district would be a temporary measure so if it doesn't work out it would not be forever.
Alma Sanchez, owner of Park House Kitchen + Bar, said she has been essentially running her own entertainment district at Park House for more than a year. Sanchez said she had not had any issues with drunks causing problems and never had police called because of fights.
She did have a few issues with the ordinance though. Sanchez said she was concerned with insurance liability with her logo on a cup.
"A person buys my cup and they consume the one drink and then they have alcohol somewhere else that they are putting in that cup," Sanchez said. "I don't want to be liable for that."
Sanchez also asked how the proposed entertainment district would affect her insurance rates. She said she pays a lot of liability for her liquor license.
"I don't have anything bad about the entertainment district," Sanchez said. "I don't think we need it right now."
When it was the board's turn to comment, every director had something to say. Coleman, who went first, said 80 percent of the people he spoke to asked him to vote against the ordinance.
Coleman said by calling this a temporary ordinance, the board would be forcing it through with a single vote, which he believed would be denying many citizens the right to make their feelings known on the subject. He said he doesn't agree with the single vote and doesn't see the emergency of it.
"I remind everybody that in 1913, the income tax was listed as a temporary item," Coleman said. "Check your date on the 15th of August or April or whenever it's due now to see if it's temporary."
Coleman also said this ordinance only helps a small number of businesses. Other businesses such as barber shops, nail salons, dentists offices, chiropractors and physicians offices have only recently been able to open and under heavy restriction.
"Because of the fact this ordinance does not affect most of our small businesses, I believe it is highly discriminatory and could result in litigation against the city," he said.
Burns said he was just doing city business, so he doesn't get emotional about it. Burns further said he is not threatened by scare tactics or those types of things on social media. He said he does appreciate dialogue where people can respectfully disagree.
Burns said he has brick and mortar businesses asking for help and this was a tool in the tool box. Burns said most people are waiting for the restrictions to lift and when that happens they roam. He said Siloam Springs is connected to the I-49 corridor and Northwest Arkansas growth and development cannot be suppressed.
Burns went on to say no one says no to the Cherokee Casino & Hotel.
"You know how they make their dollars?" Burns asked. "By drinking and gambling, eating at a great buffet at a discount and all of those things."
He said the Siloam Springs Chamber of Commerce lists the casino as a gold member and Main Street Siloam Springs has never turned down a dollar from the casino. He said when people and businesses from Ward 2 reach out he will try to help them.
Director Marla Sappington reiterated Sanchez's concerns about insurance and what would happen if someone got into an accident and they found a cup with the Park House logo with remnants of alcohol in it. Sappington also said she is not sure the revenue from alcohol sales would be enough to cover extra police for the district.
Rissler said she wants to keep the unique values of Siloam Springs. Carroll said while he would vote no, he wants to do something about it. Carroll said he did not know what that was, but he said somebody else may have an idea that will bring the city from pandemic to glory.
"This community has the resolve to do what's necessary," Carroll said. "And continue to be a sign post, not only for this area, Northwest Arkansas, but also the world."
Director Mindy Hunt said she would vote no, but said most residents are not opposed to people having a drink with their meals and if the ordinance could be passed without creating a district, she thinks most would have been okay with it.
Smiley said she supported bringing up the entertainment district so it could be discussed and voted on. She said she wants to hear from everyone before she makes up her mind.
She said the city has businesses that are probably fighting for their survival and that makes her sad, but she also has to think about what the majority of the citizens said to her.
"I don't just represent a ward," Smiley said. "I represent everyone in Siloam Springs."
Other business discussed and voted on includes:
• Placing Ordinance 20-10 concerning net-metering on its first reading.
• Placing Ordinance 20-11 regarding property maintenance codes on its first reading.
• Approving Resolution 24-20 concerning setting a hearing date for right-of-way vacation at 2100 Hwy. 412 E.
General News on 05/24/2020