Despite Mayor Butch Berry’s ban on issuing public event permits through the end of the year, Events Coordinator Tracy Johnson launched a 13-weekend live music series on behalf of the City Advertising and Promotion Commission. The “overhead music series” was introduced on August 26 at a regular CAPC meeting and was said to feature a total of 78 live performances scheduled for Thursdays, Fridays, and Saturdays through mid-November at various outside private properties.
Johnson told commissioners the series is using approximately $20,000 from the annual event budget to hire local bands, and the private sites have been procured at no cost.
“I mean, she [Johnson] has $86,000 left in her budget,” Interim-Director Gina Rambo said. “Our assumption was it was for her to use on something because we can’t have events here [Auditorium] or the park, I mean, what are we supposed to do with it?”
Commissioner Jeff Carter responded, “The commission should decide what should be done with that money.”
“But when you give her an events budget, she plans the events,” Rambo replied.
Commissioner Terry McClung asked Johnson to provide when and where he can hear the music asking, “What is the scheduling for that and the location? I’d like to know — I’d like to catch a little of it.”
Johnson said there is no location and no specific times listed saying, “It’s part of the promotion to not specifically name them out loud.”
She asked to be able to give the information to commissioners individually and privately so to intentionally omit publication of the music series information.
“Actually,” Chair Carol Wright refuted Johnson’s request for secrecy, “you are spending tax money to do it, so we have a right to ask you.”
When pressed, Johnson did not provide a full schedule but said musicians are performing from the balconies of private proprietor locations such as the Rowdy Beaver Den, Grand Tavern, and the Basin Park Hotel, to be heard by passersby on the street below.
“The music is not meant to bring people to town,” Johnson said. “It is not an event to publicize. We just want to set some good atmosphere for those out and about enjoying our city.”
Wright responded saying she received an inquiry from a person who questioned the legality of using public funds for events held on private property.
“We’ve done this before,” rebutted Rambo. She said that in the past, the CAPC funded jazz at The Grotto and several events at the Basin Park Hotel and other private venues. “We’re not benefiting the business,” she said.
Wright asked if Rambo had checked with the Arkansas Municipal League and Rambo responded, “We didn’t check because we’ve done it so many times before.”
“It is my understanding that it is our mission to use our tax dollars to bring people into town, not to entertain people who are already here, or the people who live here,” Wright said. “Read our mission. Our mission is to bring people into town to add to the tax base for which we use that money to bring more people into town.”
Wright concluded her warning to the staff, event contractor, and commissioners saying she has an issue with the CAPC’s secrecy of the events, “I didn’t even know this was happening until I got a call this week… it is a concern to me.”
The only commissioner to say she was aware of the events was Susan Harman.
There was no item on the agenda to approve the music series, but Harman voted to formally continue both the overhead music series and budget, even though the series had already begun.
Wright recommended the commission not vote until legality of the event was ascertained by the Arkansas Municipal League.
Harman rejected Wright’s recommendation and made the motion anyway. Commissioner Gregg Moon, manager of Rowdy Beaver, was expected to abstain from the vote in a conflict of interest since the music series is partially taking place on associated property, but instead he verbally promoted the series and voted Yes.
McClung, whose association with Rowdy Beaver Den was questioned, did not respond to the press’s inquiry, and also voted Yes. The motion passed unanimously.
Wright said she would be verifying the Municipal League was contacted for fiscal approval after-the-fact.
On Thursday, August 27, Mayor Butch Berry posed a question to Arkansas Municipal League Legal Counsel Lanny Richmond II to ask if the CAPC is allowed to use tax money for entertainment on private property, such as paying for music on a balcony of a downtown hotel.
This question was originally posed by Wright whose staff had started a music series on private properties because the use of public property for events was banned by the mayor during the Covid pandemic.
Richmond’s response was prefaced to say it was not to be constituted as legal advice and that additional facts could result in a different opinion but stated that he believes it is allowed as long as the CAPC is doing this to advertise or promote the city, with some caveats.
Those caveats included the music would need to be open to anyone from the public and must benefit the public. Richmond closed with this remark, “While I think this is ‘ok,’ I will emphasize the more you can distance yourself from a particular establishment the better.”
Rambo said she spoke to other advertising and promotion directors around the state who said they also fund events on private property.
Collections down, cash flow climbing
Finance Director Rick Bright stated in his financial report that, “Our cash funds are back where they were pre-Covid,” reporting $412,089 as of July 31. Compared to 2019, however, lodging collections are down $110,363 or 32 percent, and restaurant collections are down $122,280 or 31 percent.
Next workshop is Sept. 9 at 4 p.m. at The Auditorium and the next meeting is Sept. 23 at 6 p.m. at The Auditorium.