Eureka Springs City Council held a workshop on Wednesday, March 25 to review a proposal to establish a Permanent Entertainment District (PED) in part of the downtown area. The session was designed to gather information and public input, particularly from downtown residents and business owners.
At the start of the meeting, Mayor Butch Berry asked speakers to avoid repeating points to keep the discussion efficient. He also thanked attendees who had to close their businesses temporarily to participate in the afternoon meeting.
Devin Henderson, representing the Eureka Springs Chamber of Commerce, opened with context for the proposal. He explained that the idea for a permanent district had emerged from earlier council discussions and was refined through collaboration among stakeholders, including city leadership, police, and Public Works officials.
Henderson emphasized that the proposal was not intended to increase activity, but to regulate activity already occurring downtown. He described it as a structured framework meant to improve clarity, accountability, and consistency rather than loosen existing standards.
Under the proposal, the district would be limited to a clearly defined downtown area developed with input from law enforcement. It would not extend citywide and would operate under set hours ending at 10 p.m., except for New Year’s Eve. Key safeguards included prohibitions on bringing your own alcohol, a wristband system for participation, continued enforcement of ID checks and underage drinking laws, and the continued application of existing noise and public intoxication ordinances. Special events would still require permits and city approval.
For the next hour, citizens stepped to the mic to voice their opinions and concerns. Opponents raised concerns about public safety, strain on infrastructure, and potential impacts on youth in the community. Several speakers urged the council to put the decision to a public vote rather than adopting it directly. A recurring concern was that a PED could alter the town’s identity, shifting it away from a family-friendly and artistic destination toward a more alcohol-focused, nightlife-environment.
Longtime retailer Lisa Knapp warned that such a change could discourage families from visiting and disrupt what she described as the “delicate ecosystem” of downtown retail. Others echoed her view, arguing that Eureka Springs’ appeal is rooted in its unique, quaint character rather than a party-oriented atmosphere.
Others raised practical issues, including limitations in infrastructure, lack of public restroom maintenance, safety hazards, and insufficient police presence. Plumber Bill White stressed the difficulty of maintaining the public bathrooms. Lex Lancaster also raised questions about infrastructure, and whether the added revenue would be worth the costs of extra maintenance. Channing Turnage, a tour guide with Haunted Eureka, described already having to deal with belligerent drunks at night while she navigates large groups through downtown.
Some more neutral perspectives surfaced from business owners outside of the proposed PED. Representatives from ownership of the Cathouse Lounge, Eureka Live, and Amigos all questioned whether the boundaries proposed made sense. Amigos Owner Sergio Aguinaga said he does not mind either way if the ordinance passes, but if it were, exclusion of those bars and restaurants just outside of the district would seem to cause confusion.
Anthony Christopher of Eureka Live brought forth concerns about the current limited map being proposed, saying “excluding a large portion of downtown businesses is neither inclusive nor reflective of a genuine effort to allow all businesses to thrive. If we are creating an entertainment district, it should provide fair opportunity across our business community, not selectively benefiting a few while leaving out others.”
He also addressed parking and pedestrian safety, noting that much of downtown parking already requires visitors to cross Main Street regardless of alcohol consumption. He suggested that pedestrian movement with drinks is already a common occurrence in practice and that the district would not fundamentally create new behavior but instead regulate existing activity.
Christopher also argued that concerns about alcohol-related pedestrian traffic should be considered in context with existing practices, including other entertainment districts and informal alcohol consumption in retail settings such as art walks, where small drinks have sometimes been offered without major reported incidents.
Following the statements of restaurant and bar owners outside the district, Henderson clarified that the district was determined in collaboration with the police chief in accordance with his safety concerns. Henderson stated that Benton and Mountain Streets were considered emergency exits for downtown. He emphasized that council had the ability to change the district limits, and no exclusion of other businesses were not intended. Henderson also said that Public Works had assured them they had the capacity to accommodate any extra trash or cleanup.
Several retailers were also there to show support for the PED, suggesting it was a great idea, offering the perspective of keeping up with the times and maintaining competition with surrounding cities. Retailer Laci Moffitt said she is in support of the PED, with the stipulation that the issue is dealt with fairly, so that all citizens and business owners get to have their say. Moffitt also came as a representative of Heart of Eureka, whose retail members were showing majority support for the PED thus far. Moffitt said success of the PED would be highly contingent on bathroom accessibility and strict rules to keep things safe.
Jack Moyer spoke representing the Basin Park Hotel, which he described as being in a “small period of retraction on its revenue for occupancy.” Moyer disclosed that he was a participant on the PED work committee and pointed to the importance of staying relevant. He referred to tax revenue the city receives from alcohol and liquor sales and suggested the positive impact it could have on overall health and well-being of citizens. Moyer encouraged council to take responsibility in moving the ordinance forward rather than pushing it to a referendum.
Closing comments:
- Alderman Harry Meyer said that it should be put to a vote, and that the Chamber of Commerce has stuck its neck out by drafting ordinances from the city. Meyer also noted that tourism is slow for larger political and economic reasons, not because we don’t attract enough business.
- Alderman Steve Holifield said folks “have a right to own a business in town and make business work. But we also have citizens here that make this their town. I’m one of those people who came here because I wanted to live here.” He asked if council could put it to vote.
- Alderman Susane Gruning emphasized that ABC laws would still be in place to help with safety and liability issues. Gruning also said that neighboring towns are benefiting financially from their EDs. She also helped to clarify that if it were to pass, council could retract the PED at any time.
- Alderman Rachael Moyer said she saw the issue as economic benefit versus negative impacts. She cited research indicating a definite correlation between similar policies and underage drinking. She questioned Police Chief Billy Floyd about enforcement capacity, and he acknowledged the potential risk but said enforcement would rely on existing ID verification practices. He explained that incidents would be logged in the department’s CAD system, allowing the city to track data and evaluate the district’s impact over time. Moyer also attempted to discuss public bathrooms, but Berry redirected, considering it a separate issue.
- Alderman Terry McClung shared he’d had more contact from citizens on this issue than any other, on both sides. McClung stated he would like to see the PED happen but “it must be done the right way,” and was leaning toward a vote. McClung also stated he did not believe the PED will have the extreme positive or negative impact some people expect. “I don’t think it’s going to have the sort of numerical growth or the problems that anybody has projected in their minds.”