HomeMy WebLinkAboutOrdinance 6980Page 1
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6980
File Number: 2026-390
AN ORDINANCE TO APPROVE THE APPLICATION OF MOHAMMED KHALDI, ON BEHALF OF
KHALDI INVESTMENTS LLC, FOR A PERMIT TO OPERATE THE MUSE LOUNGE AS A PRIVATE
CLUB IN THE CITY OF FAYETTEVILLE AT 7 EAST MOUNTAIN STREET
WHEREAS, Act 1112 of 2017, which amended the permitting procedure set forth in Ark. Code Ann. § 3-9-222 for
private clubs in the State of Arkansas, requires the City Council to approve “by ordinance an application for a permit to
operate as a private club” before the applicant can submit the application to the state Alcoholic Beverage Control
Division.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the application of Mohammed
Khaldi, on behalf of Khaldi Investments LLC, a copy of which is attached to the agenda request form, for a permit to
operate The Muse Lounge as a private club in the City of Fayetteville at 7 East Mountain Street.
PASSED and APPROVED on March 17, 2026
Approved:
_______________________________
Molly Rawn, Mayor
Attest:
_______________________________
Kara Paxton, City Clerk Treasurer
This publication was paid for by the City Clerk-Treasurer of the City of Fayetteville,
Arkansas. Amount Paid: $100.32
Mailing address:
113 W. Mountain Street
Fayetteville, AR 72701
www.fayetteville-ar.gov
CITY COUNCIL MEMO
2026-390
MEETING OF MARCH 17, 2026
TO: Mayor Rawn and City Council
THROUGH:
FROM: Mike Reynolds, Police Chief
SUBJECT: Private Club Application for Khaldi Investments LLC (The Muse Lounge)
RECOMMENDATION:
Staff recommends approval of the private club application for Khaldi Investments (The Muse Lounge), as the
applicant meets statutory requirements and approval supports lawful, regulated business operations within the
City.
BACKGROUND:
Arkansas statute 3-9-222 requires the City Council to approve this application by ordinance before the
establishment may seek a private club permit from the Arkansas Alcohol Beverage Control Board and operate
in the City of Fayetteville. City Council approval is a prerequisite step in the state permitting process.
DISCUSSION:
Mohammed Khaldi submitted a City of Fayetteville private club application for Khaldi Investments LLC (The
Muse Lounge). Mr. Khaldi has experience owning and managing similar establishments within the city. The
Police Department has reviewed the applicant’s prior operations and has not identified significant enforcement
concerns.
Staff anticipates continued cooperation with regulatory requirements and public safety expectations under the
requested private club permit. Approval of this application is consistent with prior Council actions regarding
similar situated establishments.
BUDGET/STAFF IMPACT:
This item has no budget or staff impact.
ATTACHMENTS: 3. Staff Review Form, 4. Signed Memorandum
Page 1
City of Fayetteville, Arkansas
Legislation Text
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
File #: 2026-390
AN ORDINANCE TO APPROVE THE APPLICATION OF MOHAMMED KHALDI, ON
BEHALF OF KHALDI INVESTMENTS LLC, FOR A PERMIT TO OPERATE THE MUSE
LOUNGE AS A PRIVATE CLUB IN THE CITY OF FAYETTEVILLE AT 7 EAST MOUNTAIN
STREET
WHEREAS, Act 1112 of 2017, which amended the permitting procedure set forth in Ark. Code Ann. §
3-9-222 for private clubs in the State of Arkansas, requires the City Council to approve “by ordinance an
application for a permit to operate as a private club” before the applicant can submit the application to
the state Alcoholic Beverage Control Division.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the application
of Mohammed Khaldi, on behalf of Khaldi Investments LLC, a copy of which is attached to the agenda
request form, for a permit to operate The Muse Lounge as a private club in the City of Fayetteville at 7
East Mountain Street.
Mike Reynolds
Submitted By
City of Fayetteville Staff Review Form
2026-390
Item ID
3/17/2026
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
2/17/2026
Submitted Date
Action Recommendation:
POLICE (200)
Division / Department
Staff recommends approval of the private club application for Khaldi Investments (The Muse Lounge), as the
applicant meets statutory requirements and approval supports lawful, regulated business operations within the
City.
Account Number
Project Number
Budgeted Item? No
Does item have a direct cost? No
Is a Budget Adjustment attached? No
Budget Impact:
Total Amended Budget
Expenses (Actual+Encum)
Available Budget
Item Cost
Budget Adjustment
Remaining Budget
Fund
Project Title
V20221130
Purchase Order Number: Previous Ordinance or Resolution #
Change Order Number:
Original Contract Number:
Comments:
Approval Date:
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF MARCH 17, 2026
TO: Mayor and City Council
FROM: Mike Reynolds, Chief of Police
DATE: February 17, 2026
CITY COUNCIL MEMO
SUBJECT: Private Club Application for Khaldi Investments LLC (The Muse Lounge)
RECOMMENDATION:
Staff recommends approval of the private club application for Khaldi Investments (The
Muse Lounge), as the applicant meets statutory requirements and approval supports lawful,
regulated business operations within the City.
BACKGROUND:
Arkansas statute 3-9-222 requires the City Council to approve this application by
ordinance before the establishment may seek a private club permit from the Arkansas Alcohol
Beverage Control Board and operate in the City of Fayetteville. City Council approval is a
prerequisite step in the state permitting process.
DISCUSSION:
Mohammed Khaldi submitted a City of Fayetteville private club application for Khaldi
Investments LLC (The Muse Lounge). Mr. Khaldi has experience owning and managing similar
establishments within the city. The Police Department has reviewed the applicant's prior
operations and has not identified significant enforcement concerns.
Staff anticipates continued cooperation with regulatory requirements and public safety
expectations under the requested private club permit. Approval of this application is consistent
with prior Council actions regarding similar situated establishments.
BUDGET/STAFF IMPACT:
This item has no budget or staff impact.
Attachments:
Private Club Application — The Muse Lounge (Khaldi Investments LLC)
Arkansas Code § 3-9-222
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701