All but one member of the Eureka Springs City Council are on board with a permanent entertainment district at Pine Mountain Village.
The council voted 5-1 at its regular meeting on Monday, Aug. 26, to approve the first reading of an ordinance that would allow a permanent district at the shopping center on East Van Buren, which includes Eureka Springs Harley-Davidson and Pauly’s Burgers restaurant.
Two more readings and approvals are necessary to make the ordinance official.
“I’m bringing up the establishing of an entertainment district in Pine Mountain under Act 812 through the state of Arkansas, offering a unique opportunity to enhance our city’s economic development, attract tourism, and revitalize an area that is already underutilized …,” council member Susane Gruning said, comparing the idea to existing districts in cities such as Fayetteville, Springdale, Rogers, Bentonville, Mountain Home, Little Rock and Pine Bluff. “The proposal is about fostering a dynamic environment for local businesses to thrive and attract a diverse range of visitors. Make no mistake, Eureka Springs does depend on visitors and an entertainment district is a proven catalyst for economic growth by allowing patrons of bars, restaurants, shops, to possess alcoholic beverages.
“Outside of those businesses we can create a vibrant, pedestrian-friendly area that encourages longer visits and increased spending. The increased spending will thus create taxes for the city. This is an entertainment hub where new businesses can flourish.”
Marshall and Kyle Johnson, brothers who own the property, have held several events in recent years utilizing temporary entertainment districts. A permanent district would attract new tenants to the vacant buildings in the shopping center, the Johnsons told council members.
“Our goal is to create an attractive property, which we’ve already started,” Kyle Johnson said. “The steps of doing this, that’s going to attract other businesses, which drive economic development. … We already have our businesses that we operate, and we’d like to bring in some others that complement what we currently have, the Eureka Harley store. We’ve got a restaurant.
“Just the way the property is set up, with the horseshoe and the front parking lot … it’s 40 acres, five of it’s developed. There’s really a nice offset from the highway with a beautiful berm that creates barriers as well as some other natural barriers around the backside.”
If approved, the entertainment district will be effective every day of the week, but Kyle Johnson said music and events would still happen sporadically. The key is attracting new businesses to the center, he said.
“We have operated events there, sure,” Kyle Johnson said. “There will be a few events, but from our perspective, we would prefer long-term tenants that are paying rent month after month complementing what we already do. That is a steady stream of income. It’s easier to operate and plan financial expenses and things like that.”
Council member Harry Meyer, who has been a dissenting vote on the issue of a permanent district at Pine Mountain Village, maintained his stance against the idea at the Aug. 26 meeting.
“Eureka Springs recovered from COVID, the COVID problem, faster than any other tourism place that we compete with,” Meyer said. “That is a known fact. We didn’t need an entertainment district to do it. We’ve got all these empty shops downtown and we’re not doing anything for them. I don’t know what we could do for them, but I don’t know that an entertainment district would even help them.
“I honestly don’t think that it’s going to help Pine Mountain Village. They have their own problems with their buildings, their maintenance and so forth. They could find renters on their own. They don’t need us to promote them.”
Marshall Johnson, however, disagreed, saying he and his brother have done research showing that a permanent entertainment district economically.
“The research that we’ve done with the surrounding markets, and there’s multiple entertainment districts, what we’ve noticed with those is economic development after they’ve been established,” Marshall Johnson said. “Many restaurants, bars, other businesses, are moving in and reinvesting in those areas, and these areas are not 100 percent tourism. Those cities are attracting tourism now. They’re getting more restaurants, more bars, live music indoors. Live music doesn’t have to be outdoors. But, if you had establishments that had it, more of those, they’re not going to bother the neighbors.
“That’s what we’re looking for. We’re looking to create another property, another hub in Eureka Springs, that has multiple entities. We feel we’ve seen this in other markets and it’s proven, it’s working, without issues. … We want to invest in Eureka and grow the tourism here as well.”
Gruning, who has spearheaded the push to grant the permanent district, said cities that Eureka Springs competes with for tourists are using entertainment districts to their advantage.
“These areas have not only attracted more visitors, but have also seen an increase in new business ventures contributing to their economic success, all without an issue, all still thriving, bringing tax dollars to their towns,” Gruning said. “By establishing our entertainment district, Eureka Springs can reclaim its competitive edge and become a destination of choice for tourists that we are losing to what we would consider to be non-tourist towns.
“Not only does Pine Mountain currently have many empty buildings, particularly in the proposed area for the entertainment district, but our downtown area also has vacant buildings and I think last I counted 10 to 13 vacant buildings in downtown. These vacant spaces represent lost opportunities for tax revenue and economic activity. To develop five acres out of the 40 within the Pine Mountain area alone can be transformed into thriving businesses. … By sending a message that Pine Mountain is open for business and ready to grow, we and they, as a local business partner, can attract potential business owners who are looking for a supportive environment … to invest in. … We need to take the risk and support these businesses.”
During public comments, which included one letter read into the record, five residents spoke on the topic of the permanent district, with three supporting the idea. One of those was Mike Maloney, executive director of the city advertising and promotion commission.
“I’ve experienced entertainment districts in Northwest Arkansas in Fayetteville and the one in Rogers and I can tell you the one thing is … they really are very well organized,” Maloney said. “They’re put together in a way that’s efficient. But, the one thing that entertainment districts do is they provide another economic opportunity for the city. And I think that’s the one thing I would like to see you all really take a deeper look at. I know you’ve made up your mind probably already. I know where most of you stand on this, but I think the broad picture is entertainment districts as a whole can be a benefit to our community.
“We are constantly looking for ways to increase our tourism component and the one thing that we can do is provide this type of opportunity. I think really the overall city composure versus just, you know, a temporary district here and there … I think what we are really wanting to do is open up that conversation and more of a broad brush area so that perhaps the whole city can benefit from this as we go on. So, consider the fact that it is an economic driver and can be a very positive thing. I think that’s the one thing that we all want right now is the most positivity that we probably can bring to our tourism base.”
Susan Harman, chair of the city’s planning commission, agreed, saying any monies the city can earn through taxes to help with infrastructure are important.
“I am in support of establishing the entertainment district at Pine Mountain and I think it is a good thing for Eureka Springs,” Harman said. “We need thriving businesses to fuel Eureka’s tax needs. … We’ve got a lot of things that need to be fixed, and I just think that if we’re not supporting businesses that will spend their money and build things, create things, then what will end up happening is our streets will continue to crumble, our waterlines will continue to leak, and our residents will face increasing taxes.”
Much of the talk regarding the permanent district was around safety. Multiple signs would be placed around the district’s boundaries and those attending would have to have an armband showing they were able to purchase alcohol. Once a beverage was purchased using a special district cup, a patron could carry the drink around the district, but not enter another establishment.
“Per ABC (Alcoholic Beverage Control), you’re not allowed any alcohol to come in the door,” Kyle Johnson said. “So, if you go from one to the next … you wouldn’t be able to bring it into the establishment.”
That fact is key, council member Terry McClung said.
“I think that’s important,” McClung said. “It’s not just a free-forall.”
Kyle Johnson said security and safety measures would be in place at all times and extra security would be used when events happen at the property.
“We’d have a security plan in place seven days a week, but you’re not going to have live entertainment seven days a week,” Kyle Johnson said. “If you go to any entertainment district there’s not live entertainment seven days a week. We would have a valid security plan in place.”
When events were not happening, council members discussed the idea of the district allowing people to buy food at Pauly’s then take their meal and beverage outside to one of the picnic tables on the property to enjoy the scenic views.
“The entertainment district will be a place families can gather, dine and enjoy the scenic beauty of Pine Mountain,” Gruning said. “It’s designed to be a space where someone can leave a restaurant like Pauly’s … sit at a picnic table and enjoy the view, surrounding trees … areas that are just gorgeous with picnic tables to be able to sit down. If Pauly’s was busy, you can sit at a picnic table and enjoy a beer. Right now, you can’t do that. The district is about enhancing the quality of life for both residents and visitors.”
Council member Autumn Slane, who owns three restaurants and a tavern, agreed.
“I think from a business standpoint of you trying to attract businesses to that area, this would be a great unified, selling point. …,” Slane said to the Johnson brothers. “I think that this is a perfect situation. It’s contained, in your own parking lot. … You guys have, always been, I would say professional promoters, as far as what you guys have put on there. I think this is a great ordinance, and I think that it should be passed tonight.”
The proposed ordinance states the permanent district will be for a two-year period and will be from 10 a.m. to 10 p.m. each day. It also states that the police chief or fire chief can suspend the district’s hours at any time.
“I think we can finetune this as we go, but I’d like to make a motion that we assign this ordinance a number and put it on the first reading for passage,” McClung said.
Before the vote, Meyer told council members he had gotten a phone call from police chief Billy Floyd about the proposal.
“How many members of this council were called by the police chief and asked what could be done to get this to pass?” Meyer said. “I was.
“I wanted to know if anyone else has been called.”
McClung responded: “I’ve spoken to the police chief about this on numerous occasions. He never tried to coerce me.”
“He called me personally about this,” Meyer said.
Slane interjected, saying there’s a reason why so many think a permanent district is a positive for the city.
“I think that a lot of people in town are trying to get this approved because we need the extra revenue,” she said. “We are in a situation in our city that we desperately need to be attractive to more tourism.”
A second reading of the proposal, including discussion on any revisions to the ordinance, will be on the agenda for the council’s next meeting, set for Monday, Sept. 9.
OTHER ITEMS
Public works director Simon Wiley gave council members updates on ongoing issues with sewer and water, including issues with billing.
Mayor Butch Berry said one public works employee has been assigned to focus totally on meters.
“We’ve dedicated one person to putting in the meters, repairing the meters, putting in the antennas and dedicated for reading the meters,” Berry said.
The department has had issues recently with a new system that allows meter readers to use technology to read the meters for usage by just driving by residences.
“He’s not to be taken off anything … to work on streets or water leaks,” Berry said. “He’s strictly for meters.”
The council also had a discussion regarding regular reports from Floyd regarding the police department, something that Meyer said is a requirement in city code that hasn’t been happening.
“This ordinance, which refers to the police chief, has been in the books for a while, and we just haven’t been getting these reports,” Meyer said. “… The police chief shall immediately, following the end of each calendar month, submit to the council a written report on all activities and transactions of the department during the month. He shall also submit a report at the end of each calendar year. …” Slane and McClung said they would also like to see the reports submitted to the council on a regular basis.
“It’s just something they need to get in the habit of doing,” Mc-Clung said.
Berry said he would make sure the reports are distributed each month.
CAPC’S FUTURE
The topic of a petition that was recently submitted to put the abolishment of the CAPC and repeal of the city’s 3 percent advertising and promotion tax on the November ballot was once again discussed during council member comments.
“It’s pretty scary that this is going to be on the ballot,” said council member David Avanzino, also a CAPC commissioner. “If you don’t think this is serious, you better look again because it will affect the entire city, not just those who are tourist-related. It will affect each individual resident that lives here.”
Council member Steve Holifield, who serves as chair of the CAPC, echoed those comments.
“It’s very scary to think that people would vote to get rid of this advertising commission and our tax money for advertising,” Holifield said. “We just need to organize and make sure everybody’s educated as to what that means.”
