Eureka Springs Times-Echo The Eureka Springs Planning Commission revoked a Conditional Use Permit of a tourist lodging location, saying the property had multiple violations.
The commission voted 3-2 at its regular meeting on Tuesday, April 11, to revoke the permit at 17 Breezy Point owned by Cecilia Athey.
It was reported to commissioners that the property was in non-compliance of building code requirements, was being used as a long-term rental and was being advertised as a wedding and event venue, including offering food service, all without approval of the planning commission.
The commission also was told that lodging units also must have a Certificate of Occupancy and there is not one on file for that location.
“This is a property that was permitted for a one-unit tourist lodging in a R-2 zone in June 2021,” said Susan Harman, planning commission chair. “This is a tourist lodging so it’s not a B&B.
“There was an administrative error at City Hall and this was changed from a one-unit to a two-unit and that was addressed with the property owner.”
Harman said another error allowed the property to receive a business license as a wedding and event venue, something that isn’t allowed on a property zoned R-2. The city has since notified Athey of the error and is in the process of refunding the license fee.
Matt Bishop, an attorney representing Athey, told the commission that Athey did obtain a business license but has not used the location for any events.
“[Athey] put the cart before the horse,” Bishop said. “She certainly intended to be here for a CUP. The city took her money and issued the license that she has not used. She has not leased the property for weddings, an event center or sold food. She has simply gotten a license. So, there is no actual violation … no condition in there says you can’t get a business license.”
Harman responded that the commission had information that the property has been advertised in platforms including visitor guides and the Eureka Springs Chamber of Commerce website as a wedding venue and a location that has a meeting room of “1,200 square feet.”
“It is listed … it says ‘hello and welcome to our house. We look forward to hosting your wedding reception in our quaint 1940s three-bedroom home on four acres just five minutes from historic downtown’,” Harman said. “The advertising is indicating she intends to …” Bishop responded: “Merely advertising. If she made a poor decision to advertise something she couldn’t do, that’s on her. It’s not a violation of her conditional use permit to put out advertising any more than it’s a violation if someone has a business in town and they get a judgment against them for fraud.”
“The conditional use permit is for one-unit tourist lodging,” Harman replied. “It is not for weddings as she has advertised and it’s not for events.”
Bishop also told commissioners that the unit was indeed being used as a one-unit tourist lodging and contracting troubles are what led to issues with the building inspector.
“Nothing in the CUP regulations say that a building code violation is grounds for revocation,” he said.
Commissioners questioned how the location was issued a business license by the city without the Certificate of Occupancy on file.
Bishop later said that Athey planned to submit an application for a CUP for the venue to host events, but Harman reminded him that cannot be an event venue CUP in a residential zone.
“Thank you very much for reminding us,” Bishop said.
In the end commissioners Peter Graham, Joe Hill and Ferguson Stewart voted to revoke the current permit for the property, some stating the building code issues alone as a reason for the vote. Tom Buford and Meghan Morris voted against the revocation. Harman didn’t vote as chair.
Commissioner Ann Tandy-Sallee was absent.
Bishop indicated an appeal of the decision Is possible.
