The Wednesday, Feb. 25 City Advertising and Promotion Commission went long, with the addition of quarterly approval for marketing support funds. Seven events received marketing support during the meeting with all votes unanimous for approval.
Community Center Director Anna Smedley and Bubba’s owner Doug Allen represented the Victorian Classic, which is returning this year on March 28. They explained that they are looking to build a sustainable event, encouraging runners to come for several days as a “race-cation” and looking for 300 participants in the race with 100 already registered.
Another race, the Run Unicorn Run, which is run by Main Street Eureka Springs, also received marketing support. Commissioner David Avanzino mentioned how fun the photos of the event looked. The race is in September, and organizers are looking to reach 250 runners with last year’s at 143.
Smedley returned to the podium to speak on the Center Street Block Party, a fundraiser for the Eureka Springs Community Center. The event is May 30 during the Blues Party weekend. Smedley said that last year the event added tickets separate for a beer garden, selling 500 tickets, as well as had live music, and shut down the street to vehicle traffic.
In explaining the Entertainment District required for the event to have alcohol, Smedley said that in previous years (and same for this year) the Blues Party asks for the Entertainment District and the Community Center runs the event, piggybacking off that Temporary ED. If Blues Party fails to receive approval from the city, the Community Center will apply for a temporary ABC license and ED for the event.
Danny Watson presented Obscura Con, a new event to be held on July 24 and 25. The event is meant to be a 2-day gathering of people to discuss the science and culture of the unexplained including cryptids, UFOs, and more. Commissioner Coltan Scrivener, who is involved in the event told the commission that they intend to host side events throughout town as well as activities including speakers and workshops at the con’s location.
Dee Bright presented for the 45th Christmas Tour of Homes, noting that their marketing mentions the parade the night before the tour to get people to stay in town several nights for holiday events. She noted the $4,000 the Preservation Society spends to rent the trolleys for the night as the largest expense. She said the exception to keeping money is town is marketing with KUAF or KTHS. She also explained the money raised during this event goes to local organizations, saying the Preservation Society gave money to Parks for its restoration of Basin Park among other things.
Out in Eureka was approved with Teri Wolfinbarger speaking on the two events with the next one April 3 – 5 and a second in November. Wolfinbarger mentioned that Adam Mac will be playing in the Auditorium for Spring Diversity Weekend and alongside the festival at the community center, Out in Eureka is working with local artists to decorate unicorn heads to be auctioned off to raise funds for Purple Flower.
She noted that 70 percent of attendees stay 2 – 4 nights for this event. She also said this Spring Diversity, Out in Eureka is prototyping vendors setting up at a second location after the festivities at the community center. Wanderoo Lodge and Gravel Bar is the location of this test run, and they hope to open it up in the future to more locations.
Nightmare in the Ozarks Film Festival was also approved. Scrivener, who is the organizer, bragged on the many films submissions the event received last year and that industry partners have been happy to sponsor the event through marketing.
The events received marketing support in these amounts:
- Victorian Classic: $2,500
- Run Unicorn Run: $5,000
- Center Street Block Party: $2,500
- Obscura Con: $4,000
- Christmas Tour of Homes: $5,000
- Out in Eureka Diversity Weekends: $5,000
- Nightmare in the Ozarks Film Festival: $5,000
Scrivener recused himself from voting on the marketing support for Nightmare in the Ozarks Film Festival and Obscura Con.
Other resources: Tourism and Taxes
Taxes and dues took precedence outside of marketing support funding with commissioners discussing what legal action the CAPC can take on lodging/restaurants that fail to pay the CAPC tax and the possibility of retailers withholding CAPC taxes.
With retail business showing up in city tax remittance in 2025 and lodging slowing down and restaurants nearly at the same level for CAPC tax remittance, Avanzinio brought up the possibility of having retailers remitting CAPC taxes. Avanzino said if the CAPC is to continue to “advertise the city for all of the businesses in this city, all those businesses need to be equitably represented tax-wise.”
Tourism Director Mike Maloney said that Eureka Springs is not the only city facing lagging lodging challenges. Maloney pointed out there are 1,700 short term rentals in Carroll County, with many of those outside of city limits that do not collect A&P taxes. He said those lodgings help restaurants as well as retailers, but it does not help lodgings inside the city limits. He called the issue endemic, noting that other tourism communities in the state are facing the same issue.
Commissioners agreed to have a workshop on the issue. Any changes to what businesses remit taxes would require a city council ordinance and vote by the people of the city.
On the issue of past dues, Avanzino voiced his frustration with seeing businesses on the list each month. Maloney told commissioners that legal action was being taken against a business that had failed to remit tax collections to the CAPC. Avanzino told the commission that he had spoken with legal counsel for the city and was told there were additional options for the CAPC to take including issuing a Certificate of Indebtedness.
In the email from legal counsel, a Certificate of Indebtedness allows for the CAPC to levy on real or personal property including business equipment, accounts receivable, bank accounts, and vehicles. The certificate has the same force and effect as a circuit court judgment and creates a lien “in favor of CAPC against all real and personal property of the taxpayer in the county where it is recorded.”
Maloney said he was not aware of this enforcement method. The enforcement method does lead to revocation of business license which the CAPC already uses as an enforcement method for taxpayers that fail to pay. He noted that another taxpayer that has failed to remit taxes has been warned they will lose their ABC license if they fail to pay by March 12.
Maloney also spoke on the Arkansas Governor’s Conference on Tourism which staff attended. He noted a proposal that would change how taxes on short-term rentals such as through VRBO or AirBnB are collected. The proposal would make it where sales taxes are remitted to the state’s Department of Finance and Administration rather than directly to local municipalities. Maloney noted his concern should that proposal move through the legislature, including difficulty of the state tracking that properties are properly paying, enforcement, and a lack of information on who is collecting and who they are collecting from, which can be used help hone in on marketing.
In speaking with Maloney on Tuesday, March 10, he said the issue is not being brought to this legislative session.
Other Items
- Maloney mentioned the CAPC is working on grant opportunities for repairs and improvements to the Auditorium.
- The city will be considered an Arkansas “Base Camp” in 2027, which is a statewide effort to increase visitor stay to several days.
- org is the new website for the auditorium, developed entirely in house.
- Maloney said he’d spoken with a representative of Arkansas Heritage about the possibility of a celebration for the Auditorium’s 100 years of operation as a venue in 2028.