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Home My WebLink AboutOrdinance 7009Page 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 7009 File Number: 2026-1946 AN ORDINANCE TO ALIGN THE CITY’S DEFINITION OF A PRIVATE CLUB WITH STATE LAW BY AMENDING § 111.02 DEFINITIONS WITHIN CHAPTER 111 ALCOHOLIC BEVERAGES WHEREAS, the State of Arkansas has amended the definition of a private club found in Ark. Code Ann. § 3-9-202 and the City should amend the City Code to align with state law. 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 repeals the definition of “Private Club” in § 111.02 Definitions within Chapter 111 Alcoholic Beverages and enacts a new definition as follows: “Private Club” means a nonprofit corporation, sole proprietorship, corporation, partnership, or limited liability company organized and existing or authorized to do business under the laws of this state. PASSED and APPROVED on June 16, 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: $88.16 Docusign Envelope ID: 37324E2B-84DA-8EF6-838D-EC29D8403816 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2026-1946 MEETING OF JUNE 16, 2026 TO: Mayor Rawn and City Council THROUGH: FROM: Mike Reynolds, Police Chief SUBJECT: Definition of Private Club RECOMMENDATION: Staff recommends updating the definition of "private club" in city code § 111.02 to align with Arkansas Statute §3-9-202. The revised definition would state that a "private club" means "a nonprofit corporation, sole proprietorship, corporation, partnership, or limited liability company organized and existing or authorized to do business under the laws of this state." BACKGROUND: The Arkansas General Assembly amended the statute on what organizations qualify as a private club. 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: The prior definition required a private club to be a nonprofit: "Private club means a nonprofit corporation organized and existing under the laws of this state, no part of the net revenues of which shall inure directly or indirectly to the benefit of any of its members or any other individual, except for the payment of bona fide expenses of the club's operations, conducted for some common recreational, social, patriotic, political, national, benevolent, athletic, or other nonprofit object or purpose other than the consumption of alcoholic beverages. The nonprofit corporation shall have been in existence for a period of not less than one (1) year before application/or a permit. At the time of application/or the permit, the nonprofit corporation must have not less than one hundred (100) members and, at the time of application, must own or lease, or be the holder of a buy-sell agreement or offer and acceptance, or have an option to lease a building, property, or space therein for the reasonable comfort and accommodation o.f its members and their families and guests, and restrict the use of club facilities to such persons." The proposed definition modernizes the permitting process by allowing greater flexibility in business structures, thereby enhancing efficiency and economic viability. Additionally, Act 762 of the Regular Session allows the Secretary of State to waive all fees associated with dissolving nonprofit corporations that currently hold private club permits, as authorized by the Act. Docusign Envelope ID: 37324E2B-84DA-8EF6-838D-EC29D8403816 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov BUDGET/STAFF IMPACT: A change in definition may increase private club applications. New forms and updates to the permitting process will be required to accommodate additional information. ATTACHMENTS: 3. Staff Review Form, 4. Signed Memorandum, 5. Definition of Private Club Packet Docusign Envelope ID: 37324E2B-84DA-8EF6-838D-EC29D8403816 Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2026-1946 AN ORDINANCE TO ALIGN THE CITY’S DEFINITION OF A PRIVATE CLUB WITH STATE LAW BY AMENDING § 111.02 DEFINITIONS WITHIN CHAPTER 111 ALCOHOLIC BEVERAGES WHEREAS, the State of Arkansas has amended the definition of a private club found in Ark. Code Ann. § 3-9-202 and the City should amend the City Code to align with state law. 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 repeals the definition of “Private Club” in § 111.02 Definitions within Chapter 111 Alcoholic Beverages and enacts a new definition as follows: “Private Club” means a nonprofit corporation, sole proprietorship, corporation, partnership, or limited liability company organized and existing or authorized to do business under the laws of this state. 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