Eureka Springs voters made their intentions clear in Tuesday’s general election, soundly rejecting a proposed ordinance that would have abolished the city’s advertising and promotion commission and repealed the 3 percent tax on lodging and prepared food that supports it.
In unofficial results announced about two hours after polls closed, 839 votes (71.2 percent) were cast against Local Issue 3, with 339 votes (28.8 percent) for the proposal.
The initiative was placed on the ballot after a petition circulated by local resident Pat Matsukis obtained the 148 necessary signatures from local voters.The proposal drew widespread criticism from city officials and local business owners, who said its impact on tourism could be devastating for the local economy and could result in business closures, cuts to city services such as police, fire and transit and increased unemployment as the city’s tourism industry faltered.
Mike Maloney, the CAPC’s executive director, expressed his gratitude for the voters’ decision in an email message shortly after the results were announced Tuesday night.
“There is no doubt that tonight made history,” Maloney said in the email to commissioners and staff members. “Each person either directly or indirectly contributed to tonight’s success. Our staff is the most outstanding in Eureka Springs. Your work and efforts as a Commission on the whole have made the efforts 110% worthwhile.
“It’s an awesome tribute to the entire organization .
“Most importantly It brought this business community to a new level of support.
“We have been blessed by the outcome. Now it is our responsibility to ensure the continued success.
“I am humbled and proud of the faith you have in the CAPC.”
Matsukis did not comment to the Times-Echo before the election but had been quoted in published reports as suggesting that the advertising and promotion tax — the proceeds of which can be used only for specific purposes according to state law and cannot be used for the city’s infrastructure needs — could be replaced with another tax that could generate revenue to address infrastructure as well as supporting advertising and operation of the Auditorium. Matsukis was quoted as saying that by having Issue No. 3 placed on the ballot, she hoped to “at least start the discussion.”
Matsukis also noted the history of turmoil surrounding the CAPC, which is involved in a pending lawsuit filed by former employees and contractors and saw former chair Chris Clifton resign under pressure just four months ago.
Commissioners and other city officials had strongly criticized Matsukis’ proposal, with commissioner David Avanzino — a member of the Eureka Springs City Council — comparing those who circulated the petition to “petulant children throwing tantrums,” at an Oct. 17 council meeting. Avanzino reiterated those remarks at an Aug. 23 CAPC meeting.
“I had a lot of questions about my comments made at city council … asking me if I did in fact mean to call those people who originated this petition petulant children,” he said. “I absolutely meant to call them petulant children. I just want to clear that up right now.”
