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HomeMy WebLinkAboutOrdinance 6322❑� FA•E'rrc U (MARCHIVEN RRti ANSb: 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 6322 File Number: 2020-0418 DESIGNATE AN ENTERTAINMENT DISTRICT: AN ORDINANCE TO ESTABLISH BOUNDARIES FOR AN ENTERTAINMENT DISTRICT IN THE CITY OF FAYETTEVILLE AND TO PROMULGATE RULES FOR THE LIMITED OUTDOOR CONSUMPTION OF ALCOHOL IN CERTAIN PUBLIC PLACES WHEREAS, Act 812 of 2019 grants municipalities broad authority to create "designated entertainment districts" in contiguous areas zoned for or customarily used for commercial purposes located within the municipality; and WHEREAS, the Act also allows municipalities to create reasonable standards for the regulation of alcohol possession in outdoor public spaces within a designated entertainment district. 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 enacts § 111.07 - Outdoor Refreshment Area of the Fayetteville City Code as shown in the attached Exhibit A. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that this ordinance should become effective without delay because it will provide opportunities for Fayetteville business establishments, residents, and visitors to comply with the directives issued by the Arkansas Department of Health regarding limited occupancy and social distancing, which are necessary for the public peace as well as the health and safety of Fayetteville residents. Therefore, the City Council hereby declares an emergency exists such that this ordinance shall become effective immediately upon its passage and approval. Page 1 Printed on 618120 Ordinance: 6322 File Number.• 2020-0418 PASSED and APPROVED on 6/4/2020 Attest: ,��<<r�irrrrtir��I YETTEVILL- Kara Paxton, City Clerk TreasurejF- 4 Page 2 Printed on 618120 EXHIBIT A "111.07 - Outdoor Refreshment Area (A) Definitions (1) Customer shall include a patron, guest. or member. (2) Owner shal I include the owner, manager. or operator of an establishment permitted to sell alcoholic beverages. (3) Permittee shall mean the person or entity who has received an event permit from the City of Fayetteville allowing the outdoor consumption of alcoholic beverages within an established entertainment district. (4) Limited open consumption district pilot program shall mean a series of specific dates and times which occur on a limited basis in which a person or customer may purchase alcohol from participating businesses and consume said alcohol within a defined area with open streets within the Outdoor Refreshment Area. The dates and times, as well as any rules applicable to such a pilot program, shall be established by the Mayor. (B) Creation and establishment of districts. Pursuant to the authority granted by Ark. Code Ann. § 14-54-1412, an entertainment district is hereby created with the areas and boundaries as set forth and designated on the map which is attached hereto as Exhibit 1 and incorporated herein. The district shall be known as the Outdoor Refreshment Area on the map attached as Exhibit 1. (C) Outdoor consumption of'alcohol in public places. The consumption of alcoholic beverages or possession of open containers of alcoholic beverages in public outdoor areas within the Outdoor Refreshment Area is prohibited with the exception of: (1) Events with standing approval. The outdoor consumption of alcohol may be allowed on public streets, sidewalks, rights -of -way, parking lots, or outdoor public areas within the areas designated for events with standing approval pursuant to the Fayetteville City Code. The prior written authorization of the Mayor shall be required, and additional conditions may be placed on the permittee. the event, and any owner who wishes to allow the owner's customers to participate in the event as part of the authorization. The areas designated for the outdoor consumption of alcohol at standing events shall be closed to vehicular traffic unless those areas fall within a limited consumption district pilot program in which case the rules for the open consumption district shall apply. (2) Special event permits with specific approval. A special event permit issued by the Mayor pursuant to § 72.58(M) may authorize the outdoor consumption of alcohol on public streets, sidewalks, rights -of -way, parking lots, or outdoor public areas in certain areas and only during the times specified in the permit. Additional conditions may be placed on the permittee, the event, and any owner who wishes to allow the owner's customers to participate in the event as part of the authorization. Such areas may be closed to vehicular traffic. (a) Organizers of events who wish to apply for the special event peen it to allow open consumption of alcohol within the entire event area, rather than confining alcohol consumption to a limited area, shall complete the appropriate Notice of Proposed Closure for a Outdoor Refreshment Area Event Form as well as the standard Notice of Proposed Closure form. (b) A business located adjacent to or within the event area may sell alcohol for open consumption in the event area only with the approval of the event organizer. If an event occurs during a time and within the area of a limited consumption district pilot program, business sales of alcohol for open consumption shall be permitted. (3) Limited open consumption districtpilotprograms. The Mayor may identify specific dates and times to authorize the implementation of a limited open consumption district pilot program within the Outdoor Refreshment Area. Such pilot program areas will not require street closures. Rules established by the Mayor applying to pilot program areas shall be distributed to business owners and signs shall posted in conspicuous locations within the pilot program area. (a) At least 21 days prior to the beginning of an open consumption pilot program, City staff will notify nearby businesses and identify participating businesses. (b) The Mayor, by and through staff; shall notify the City Council Members by email or otherwise of the decision to implement a limited open consumption district pilot program. If at least two (2) City Council Members notify the City Clerk's Office in writing within seven (7) days of the Mayor's notification of his or her decision that they wish to appeal such decision, then the issue will be presented on the next City Council meeting in which the Mayor's decision could reasonably be considered. The City Council would then be able to decide by Resolution whether to reverse the Mayor's decision or upon what conditions (if any) the permit would be granted. (c) The provisions of subsection l 11.07(C)(3) shal I expire on January 30, 2021. (D) Conditions for consumption of alcoholic beverages in public outdoor areas. Any owner within a designated area may allow a customer to exit the owner's premises during the hours designated in the special event permit or in an area defined in a limited consumption district pilot program with no more than one (I ) open container of alcoholic beverages and consume said alcoholic beverages anywhere within the confines of the designated area in which the alcoholic beverage was obtained, subject to the following regulations: (1) An owner within the designated event area or in an area defined in a limited consumption district pilot program may allow alcoholic beverages to be removed from the licensed premises during special events with specific approval who have requested businesses be able to sell to attendees and/or during the times of the limited consumption district pilot program and only in a compostable or reusable cup, or other alternative container as certified by the Environmental Director as compatible with the city's recyclables collection program, that bears the proper city approved logo, and no such alcoholic beverages shall be removed from the permitted premises in a can. bottle, or glass container. (2) No owner shall allow a customer to exit its premises with an open container of alcoholic beverage until the owner has placed a designated visible identifier on the customer, and it shall be unlawful for any person to exit such licensed premises with an open container without the required visible identifier. (3) It shall be unlawful for a customer to enter any business regulated by the Arkansas Alcoholic Beverage Control Division with any alcoholic beverage that was not acquired at that location. A customer may not enter any other establishment with an open or closed container of alcoholic beverage without the consent of the owner or manager of the establishment. (4) It shall be unlawful for any person to drink or attempt to drink any alcoholic beverage from a can, bottle, or glass container, or to possess any open can, bottle, or glass container of alcoholic beverages on the public streets, sidewalks. rights -of -way. and parking lots located within the Outdoor Refreshment Area. (5) No container in which an alcoholic beverage is dispensed and removed from the licensed premises shall exceed sixteen (16) fluid ounces in size. (6) No person shall possess on the public streets, sidewalks, rights -of -way, parking lots, or outdoor public areas located within the designated area any open alcoholic beverage container which exceeds sixteen (16) fluid ounces in size. (7) No person shall possess on the sidewalks, public streets, rights -of -way, parking lots, or outdoor public areas any open alcoholic beverage container outside of the approved area of an event or the district. (8) It shall be unlawful for a customer to distribute alcohol for open consumption obtained from a business participating in the Outdoor Refreshment Area to any other individual. (9) It shall be unlawful to create, possess, or distribute fraudulent or unauthorized visible identifiers or cups within the Outdoor Refreshment Area. (10) No person shall publicly consume within the Outdoor Refreshment Area any alcoholic beverage purchased outside of the Outdoor Refreshment Area. (E) Sidewalk Cafes in the Outdoor Refreshment Area. If an owner within the Outdoor Refreshment Area has also received a sidewalk cafd permit pursuant to § 178.02 of the Unified Development Code: (1) The owner may serve alcoholic beverages in open containers during the hours of operation and in the areas authorized by the sidewalk cafe permit; (2) Glass containers shall be allowed in the approved outdoor dining areas but shall not be removed from those areas: and (3) No fencing or other enclosure of a permitted sidewalk cafd located within a designated outdoor refreshment area shall be required. (F) Slate laws applicable to the Outdoor Refreshment Area. All other Arkansas laws including, but not limited to, Ark. Code Ann. § 3-3-201, et seq (prohibited practices regarding alcoholic beverages), Ark. Code Ann. § 5-71-207 (disorderly conduct), Ark. Code Ann. § 5-71-212 (public intoxication), Ark. Code Ann. § 5-71-218 (consumption of alcohol in a motor vehicle) remain in effect and will be enforced within the Outdoor Refreshment Area. (G)Litiering Prohibited. No person shall violate the littering prohibition set forth in § 98.07 of the Fayetteville City Code. W __.,..-- Fe_� a 3aphst _ tle�ne1 ry _ ► Ch. - j Iv RS1T'K a = A. R KA N S,A S DG it/'- ;_s'ide Si < - c Evergreen 2 Cenetery U C 1 a cl:l CLIP 2f' I C F.P.S. U ) ► 4;' Stone St I>) ► Q 1 r > r r► w , ►. C � + C r -- op L U f// cc ,• warmart r t1� rr` rr. 1 7 L � � N s a r C, a ar ¢ 0 Proposed ORA Adopted Cultural Arts _ District Building I ILLYM QC Downtown ' I � >� Square 0. 1 � MSC P-1 Is <. - t7 ~ I > ' < ry .t'1 q > # o Sth St a . cn -_ Q _ i fn . Y � s' E5 IJ Cn �� I-■ MSC ..-_------. ri Ch JL Varsity 0 0.13 Exhibit 1 Fayetteville Outdoor Refreshment Area (ORA) With Zoning - Fayetteville, AR 0.25 0.5 Mile CITY OF 04 FAYETTEVILLE ARKANS ARKANSAS The c.k cc. Uy hereir .-e ccrrpke Gcrr r—ecw 5 ler bx sck uae anc tenePo cl C. Uly cl FeYetlewlle C c.larFm Irlcnreucr :yalem arc . pubic .aenuea n serves Ary ,-- al the eye by ar>,ene caper d.r. 1h Cary of Fayetlerby is y IM1e lob nW al the user Fn by acre— h. of this data IM1e wer dose hereby agme Ip irAermily Ilse Ciry al Fayellevilb aM hcb the 01y.1 FeyeneWNe harrrien 1.0 and rdhcul lubWY ld any man. a by - aalnaoea d a,N name indotling IM1e cnY s cou of tl& F,y a-ened by u -Iby r - losing — the .e of IM1e dale The d o! F.Yelle.iNe m_ nor a.preaa or im0lietl,n ,Q sea .Mh relerence I IM1e tlaLL No vrortl p11ra cl.uae laantl M1yyn shW be c a-p etl to vu,ye Ihal I -I immunity - lank uMy P """ 4, Map Date. OSI13I2020 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2020-0418 Agenda Date: 6/2/2020 Version: 1 Status: Passed In Control: City Council Meeting File Type: Ordinance Agenda Number: C 11 DESIGNATE AN ENTERTAINMENT DISTRICT: AN ORDINANCE TO ESTABLISH BOUNDARIES FOR AN ENTERTAINMENT DISTRICT IN THE CITY OF FAYETTEVILLE AND TO PROMULGATE RULES FOR THE LIMITED OUTDOOR CONSUMPTION OF ALCOHOL IN CERTAIN PUBLIC PLACES WHEREAS, Act 812 of2019 grants municipalities broad authority to create "designated entertainment districts" in contiguous areas zoned for or customarily used for commercial purposes located within the municipality; and WHEREAS, the Act also allows municipalities to create reasonable standards for the regulation of alcohol possession in outdoor public spaces within a designated entertainment district. 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 enacts § 111.07 - Outdoor Refreshment Area of the Fayetteville City Code as shown in the attached Exhibit A. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that this ordinance should become effective without delay because it will provide opportunities for Fayetteville business establishments, residents, and visitors to comply with the directives issued by the Arkansas Department of Health regarding limited occupancy and social distancing, which are necessary for the public peace as well as the health and safety of Fayetteville residents. Therefore, the City Council hereby declares an emergency exists such that this ordinance shall become effective immediately upon its passage and approval. City of Fayetteville, Arkansas Page 1 Printed on 6/8/2020 r Devin Howland Submitted By City of Fayetteville Staff Review Form 2020-0418 Legistar File ID 6/2/2020 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 5/15/2020 ECONOMIC DEVELOPMENT (050) Submitted Date Action Recommendation: Division / Department APPROVAL OF AN ORDINANCE TO DESIGNATE AN "ENTERTAINMENT DISTRICT" PURSUANT TO ACT 812 AND ESTABLISH THE RULES FOR FAYETTEVILLE'S FIRST OUTDOOR REFRESHMENT AREA. Budget Impact: Account Number Fund Project Number Project Title Budgeted Item? NA Current Budget $ Funds Obligated $ Current Balance Does item have a cost? NA Item Cost Budget Adjustment Attached? NA Budget Adjustment Remaining Budget Purchase Order Number: Change Order Number: Original Contract Number: Comments: V20180321 Previous Ordinance or Resolution # Approval Date: CITY OF FAYETTEVILLE ARKANSAS MEETING OF JUNE 2, 2020 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff Garner Stoll, Development Services Director FROM: Devin Howland, Director of Economic Vitality Blake Pennington, Assistant City Attorney DATE: May 15, 2020 CITY COUNCIL MEMO SUBJECT: AN ORDINANCE TO DESIGNATE AN "ENTERTAINMENT DISTRICT" PURSUANT TO ACT 812 AND ESTABLISH THE RULES FOR FAYETTEVILLE'S FIRST OUTDOOR REFRESHMENT AREA RECOMMENDATION: Staff is recommending approval of an ordinance that designates an "entertainment district" pursuant to Act 812, establishes the rules for Fayetteville's first O.R.A. (Outdoor Refreshment Area) and establishes a phasing plan. BACKGROUND: Act 812 of 2019 grants municipalities broad authority to approve "designated entertainment districts" in contiguous areas located within a city. The act specifically allows entertainment districts in areas zoned for or customarily used for commercial purposes and allows local jurisdictions to create reasonable standards for the regulation of alcohol possession. This proposed district is largely derived from Fayetteville's approved 2007 Cultural and Arts District boundaries, with modifications to eliminate primarily residential zoned areas pursuant to Act 812. On August 20, 2019, an Entertainment District Ordinance was introduced to the Fayetteville City Council. Following concerns from businesses, staff ultimately requested that the ordinance be tabled indefinitely to allow for unpressured time to work with Downtown stakeholders on revisions. The Fayetteville City Council voted to table the ordinance indefinitely on October 15, 2019. The original intent and goals outlined in the original ordinance are present within this new proposal. In the months since, staff has conducted expanded research on the topic of public alcohol consumption —exploring best practices from communities across the country. Staff has also engaged the business community, downtown stakeholders such as employers, and anchor institutions such as the Fayetteville Public Library, Theatre Squared, and the Walton Arts Center to explore their concerns and address them through possible mitigation strategies. Multiple Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 focus group sessions were held, and the outcomes are included in the attachments of this packet. Staff also attended numerous Dickson Street Merchant meetings to maintain a bright line of communication with the stakeholders along the road and will continue to do so in the future. City staff also coordinated a great deal with the Fayetteville Police Department throughout the entire process, and their attendance, involvement, and expertise helped not only shape the ordinance included in this packet, but also helped mitigate many of the concerns held by local businesses. A key tenant of this ordinance is the understanding that there is a major difference between a rule and a law. Following the draft of the ordinance and phasing plan being completed, staff presented the ordinance at the Dickson Street Merchants meeting on March 9, 2020. However, four days later our work on the issue came to an abrupt halt given the public health emergency from COVID-19 pandemic. In May, after weeks of work on the economic response to COVID-19, staff began to finalize the details of the ordinance and reengage partners. Given the pandemic, the phasing plan had to be altered. On May 11, 2020 City staff was able to present to the Dickson Street Merchants Association. The presentation was recorded and distributed to the organization's membership. On May 12, 2020 at the request of the Chairman, City staff presented the proposed ordinance to the Transportation Committee for their comments and review. A copy of the presentation can be found in this packet (Exhibit G) and the presentation can be seen on the City's website. The committee recommended approval of the attached ordinance to the City Council with three amendments: 1. Amendment 1: Loosening of any restrictions to the limited open container consumption days of the week rather than only Sunday -Wednesday. 2. Amendment 2: Allowing parking lots, private parking lots, and right of way components such as parallel parking and travel lanes to be used as sidewalk cafe space or auxiliary parking when vehicular traffic patterns have been amended temporarily or otherwise. 3. Amendment 3: Include an emergency clause which would enable the ordinance to become law immediately after City Council passage. DISCUSSION: WHY CREATE AN OUTDOOR REFRESHMENT AREA: Originally, the intent behind the creation of an Outdoor Refreshment Area was the recognition it could positively contribute to the activity and economic vitality of Downtown Fayetteville (see Exhibit 1 Outdoor Refreshment Area Map attached to the Ordinance). We want to enable organizers the choice to allow patrons to consume alcohol outside of a beer garden and give businesses an opportunity to make sales to attendees for events that did not want to utilize an ABC Temporary Picnic Permit to source alcohol. We also want to test a regularly scheduled open consumption district and expansion of sidewalk cafes to explore ways to bring unique offerings to both residents and tourists. Municipalities across the state have successfully implemented these districts. While these positive attributes still hold true, the coronavirus pandemic has changed staff's "why" behind the need to utilize this tool. WHAT DOES THIS ORDINANCE BROADLY ENABLE? The Outdoor Refreshment Area has three primary components which are explained throughout this memo and the attached ordinance. 1. Sidewalk Cafes: Bars, restaurants, and performance venues can apply through Development Services for use of City sidewalks without a barrier and serve alcohol in regular glasses. 2. Special Events: Event Organizers may ask the City to approve an event without an enclosed beer garden if their event area is on a closed street or on a City -owned parking lot. Event organizers will have the ability to choose if they want to source alcohol through the normal process with the ABC Temporary Picnic Permit, or enable surrounding businesses within the closed area to serve to -go drinks to event attendees, who could then consume the alcoholic beverage within the event area. We want to ensure event organizers can manage all aspects of their events, so the choice should be given to the event organizer regarding open consumption and allowing surrounding businesses to sell drinks to go that could be consumed in the event area. 3. Limited (Regularly Scheduled) Open Consumption District Pilot Program: This can be defined as allowing visitors or patrons to purchase alcohol from a participating business and consume their beverage while walking down the sidewalks in a smaller defined area within the Outdoor Refreshment Area. Streets would not be required to be closed. This program would be piloted by City staff who have a series of requirements to meet in order to begin such a program (those requirements are outlined in a subsequent section of this memo). The pilot program also has a proposed sunset date of January 30, 2021. COVID-19 AND UTILIZING ACT 812 AS A TOOL TO HELP RESTAURANTS, BARS, AND ENTERTAINMENT VENUES DURING PROLONGED SOCIAL DISTANCING MEASURES The pandemic has disproportionately impacted certain industry sectors, restaurants, bars, and performance venues are included in that category. Through the various necessary public health directives, private clubs were not given a chance to pivot or adapt through to -go sales in Arkansas. Given the prolonged impact to sales the pandemic has had and will continue to have due to reduced occupancy and consumer concerns, Act 812 can be a tool to help these businesses increase sales during this time. The expansion of sidewalk cafes can increase occupancy for these businesses. Research is continuing to show that open-air dining can be safer as well. Currently, Arkansas state law 3 prohibits alcohol being served outdoors without a fencing around the tables. This ordinance can eliminate that requirement for some businesses. The regularly scheduled open consumption district can enable an increase in sales for these establishments. To -go sales will not only provide an additional revenue source for businesses, but also enable more social distancing by giving patrons the ability to consume alcohol while walking down sidewalks in a smaller area within the Outdoor Refreshment Area Boundary. A great deal of uncertainty also exists for events. Traditional beer gardens do the very thing people cannot do right now - congregate in a small area. As events look to adapt and overcome these challenges, Act 812 can provide a new tool for them during a time of social distancing. AMENDMENTS FROM THE TRANSPORTATION COMMITTEE AND STAFF COMMENTS On May 12, 2020 the Transportation Committee discussed how to make our City Streets more comfortable for pedestrian and bikes as well as enabling businesses to expand into a street or parking lot for potentially safer dining during the pandemic. The Outdoor Refreshment Area was discussed in how the City might integrate these two ideas. The Transportation Committee recommended the City Council adopt the Outdoor Refreshment Area ordinance with three amendments: Amendment 1: Loosening of any restrictions to the limited open container consumption days of the week rather than only Sunday -Wednesday. Staff Comments: While staff sees no issue in allowing the ability for the pilot program to operate seven days a week in the future, businesses have raised concerns with piloting the program on Thursdays -Saturday. This is why staff is recommending Sunday - Wednesday to start the pilot program. Also, concerns have been raised by the Fayetteville Police Department on policing during these times with a new program. The ordinance does not govern the phasing plan days of the week. A Resolution to Adopt A Phasing Plan for Fayetteville's First Outdoor Refreshment Area following this item accomplishes that. Staff's plan is to maintain consistency with communications to businesses, including the Dickson Street Merchants Association on May 11, 2020, to begin the pilot program Sunday -Wednesday. Strong communication, coordination, and agreement from businesses and anchor institutions within the area would need to be done before expanding beyond the previously discussed dates. Amendment 2: Allowing parking lots, private parking lots, and right of way components such as parallel parking and travel lanes to be used as sidewalk cafe space or auxiliary parking when vehicular traffic patterns have been amended temporarily or otherwise. • City Attorney's Office Comments: Nothing in this ordinance would prevent businesses from using parking lots (public or private), parking spaces, or travel lanes for those potential stated purposes if such a policy is adopted. State laws and ABC regulations 4 may limit a business's ability to serve alcohol to customers in those areas, but the city clearly has the authority to allow customers to drink there. This kind of street or parking lot closure policy might require amendments to § 178.02 governing sidewalk cafes and other parts of the City Code. We feel that the closure of streets is best addressed by a separate administrative or City Council policy enactment that has been fully fleshed out, including input from business owners and the Police Department. We can easily extend some or all of the privileges and regulations governing sidewalk cafes at that time. Staff Comments: From a staff perspective, we feel the closure of specific streets for expanded dining is not a component of this ordinance, but rather a separate item. As mentioned above in the City Attorney's Office comments, the ordinance would in fact allow patrons to consume alcohol at tables in parking lots or streets if such closures were approved. Staff recommends that any closure must be proposed by a specific restaurant who wishes to serve in such an outdoor space and that restaurant must seek approval from businesses within the impacted area. We should ensure that whatever practice is adopted does not interrupt businesses who have pivoted recently to drive- thru, curbside pickup, and delivery services, as this will continue to be a key component of their operations through the pandemic. This item has not been discussed with businesses or stakeholders during the development of this ordinance. Amendment 3: Include an emergency clause which would enable the ordinance to become law immediately after City Council passage. Staff generally felt that an emergency clause was not necessary because of the time it will take to draft the administrative regulations, order cups and install signs, and educate the businesses within the outdoor refreshment area about these regulations. Furthermore, the ability of the Police Department to enforce this ordinance will be limited because Ark. Code Ann. § 14-55-203 states that "an emergency clause shall not be effective to impose any fine, penalty, forfeiture, or deprivation of liberty or property until after the ordinance has been published or posted as is otherwise required by law." According to the City Clerk's office, publication may not occur until as much as two weeks after the passage of an ordinance. However, if the City Council believes the ordinance should go into effect immediately for the preservation of the public peace, health, and safety, then the facts constituting the emergency must be clearly stated within the ordinance itself. If enacted immediately, there will be a period of time in which the Police Department's authority to enforce the provisions of the ordinance will be substantially diminished. SYNOPSIS OF STAFF RESEARCH FINDINGS: On October 8, 2019, staff presented their research on public alcohol consumption at the Fayetteville City Council Agenda Session. While 43 communities were identified, many more communities exist that allow for alcohol to be consumed outside of designated establishments. Of the 43 communities, 30 allow for alcohol to be consumed in areas where traffic flows or their ordinances do not explicitly prevent it. Many of the concerns that were heard in Fayetteville throughout this process were expressed in nearly every community who enacted similar ordinances. Findings did indicate that communities with colleges are typically more conservative with their ordinances. Three college communities located within the Southeastern Conference (SEC) have public consumption ordinances, many centered around gameday events. Public alcohol consumption is also not confined to municipalities with an ordinance. In some states, the absence of a law prohibiting public alcohol consumption is the determining factor. In states such as Illinois, it is a social norm to be able to consume alcohol while attending events and festivals. The key point to note is that no two ordinances are the same. Each was crafted specifically for the respective community. For a more comprehensive review of staff's research, please see Exhibit E in the attachments section. SUMMARY OF FOCUS GROUP SESSIONS: Following several public meetings held in the Fall of 2019, staff planned two facilitated focus group sessions in November. The first session was held on November 20 and was a cross section of restaurants, bars, retailers, the Fayetteville Public Library, Fayetteville Chamber of Commerce, and employers. The second session was held on November 21 and included representation from retailers, restaurants, property owners, the Advertising and Promotion Commission, the Walton Arts Center, and Theatre Squared. While the conversations between the two groups were different —there were commonalities between the discussions. Advantages identified by both groups were sidewalk cafes, positive consumer perception, and increased revenue. Disadvantages discussed by both groups included a perceived increase in liability, a concern for underage drinking, and the negative impacts road closures can have on a business's revenue. Ideas in common were rolling out the sidewalk cafe component first and tailoring a roll-out/pilot to gain proof of concept. Another idea was scheduling open consumption times during slow days to increase sales and bring more people downtown, i.e. Sunday -Wednesday as an example. For a more comprehensive review of the facilitated focus group discussions, piease see Exhibit F in the attachments section. REVISIONS FROM PREVIOUS ORDINANCE: The changes from the original ordinance that was proposed in 2019 were derived primarily from multiple sources: the business community/other stakeholders, the Fayetteville Police Department, and staff research. Phasing Plan: At the recommendation of numerous businesses and stakeholders, a phasing plan has been developed to prove concept and explore various aspects of what Act 812 allows Fayetteville to do as it relates to public consumption. Following the outbreak of COVID-19, and the need for pro -longed social distancing for the health of our community, and restaurant and accommodation professionals, the phasing plan was altered significantly in May of 2020 to adapt to the pandemic. A copy of the proposed phasing plan can be found in this packet (Exhibit D). Enhanced Notification System: Event sponsors who wish to host a special event with specific approval for public consumption outside of a beer garden will have to complete the Notice of Proposed Closure for an Outdoor Refreshment Area event form. This new system will be developed by City staff and list the specific names of businesses within the closed area. The form will also ask if businesses plan on participating in the event by selling alcohol to attendees (if applicable- event organizers will have the choice to request) and collect other information that will be needed by both the event organizer and the Fayetteville Police Department. This new process will ensure each business is contacted in the closed area. City staff will also keep an updated contact list of businesses within the Outdoor Refreshment Area for use by event attendees. Work to begin collecting businesses preferred contact information will begin if the City Council chooses to adopt the ordinance. Regularly Scheduled Open Consumption Pilot Program: A regularly scheduled open consumption district pilot program can be defined as allowing visitors or patrons to be able to purchase alcohol from a participating business and consume their beverage while walking down the sidewalks in a smaller defined area within the Outdoor Refreshment Area. Streets would not be required to be closed. This program would be piloted by City staff who have a series of requirements to meet in order to begin such a program: The pilot program could take place until the sunset provision of January 30, 2021 (the sunset date will likely need to be extended. No long-term decisions pertaining to public consumption should be made until an assessment can be done to review the pilot program under conditions of "full capacity" with anchor institutions and downtown activity.) Social distancing guidelines would be adhered to for the health of the public and businesses. Before such a program would be activated, robust collaboration with businesses of all types within the chosen area, as well as anchor institutions such as the Walton Arts Center, Theatre Squared, the Fayetteville Public Library, and others shall be done. 7 City staff will collaborate with the Fayetteville Police Department, businesses of all types, as well as anchor institutions to define an area for the pilot program. Businesses within the chosen area shall be notified at least 21 days before the pilot program begins, City staff will also collect signatures from entities within the area of the pilot program. City Council Members will be given advanced notice of the pilot program and have the ability to appeal it. Rules of the pilot program will be developed and distributed. Designated cups and visible identifiers shall be used. Boundary signage, informational materials will be in place- Recycling/composting receptacles will be installed and utilized. The City will conduct ongoing assessments of the need for these receptacles. It is the Administration's intent to be proactive as well as responsive to ensure the beauty of downtown is not negatively impacted nor are property owners impacted in a negative manner. Public education will begin in advance of the pilot program to ensure awareness of the rules and public safety measures. Staff's research found that most public consumption districts throughout the country operate without street closures. The pilot program will enable the City to explore if this can be a long-term contributor to downtown vibrancy. The idea for a pilot program stemmed from the focus group sessions in November of 2019, with focus group conversation primarily revolving around utilizing this tool to attract patrons into downtown during slow business times such as Sunday -Wednesday. Recognizing that bars, restaurants, and performance venues have been severely impacted by necessary measures taken to protect public health, staff feels the Outdoor Refreshment Area can serve as a tool to help these impacted industries increase sales during a time of limited occupancy while allowing for pro -longed social distancing by enabling attendees to spread out within the area. Additional business protections against consumers who violate the laws of the ordinance: Participating businesses do have a great deal of responsibility when it comes to all aspects of the Outdoor Refreshment Area. While those responsibilities have not changed, language was added in section (D) Conditions for consumption of alcoholic beverages in public outdoor areas which reiterates and outlines the responsibilities and duties of customers and patrons of the district. N The premise of these additions allows for the Fayetteville Police Department to enforce customer violations of the rules of the district, which are in place to protect and increase safety of all businesses, their staff, and attendees. As examples: it would be a violation of City law for a customer to enter a bar with an open container of alcohol, give their beverage to another event attendee (regardless of age), create or distribute fraudulent visible identifiers, or remove alcohol from an establishment that is not participating in open consumption. Branded Cups and Visible Identifiers: Rather than designate that cups be branded with the specific business logo, staff is recommending they be branded with a logo of the Outdoor Refreshment Area. The cups may also include a list of rules on them for attendees. The City, or in the future the designated entity assigned with the management of the district, will order the cups and visible identifiers. They will also work with the Fayetteville Police Department to establish a safe flow of these products to the businesses in order to reduce risk of duplication or fraudulent activity. Staff is also recommending that businesses be permitted to charge attendees for the designated cup to assist with covering the increased cost of participating in the program. BUDGET/STAFF IMPACT: Until a management plan is developed, and a managing entity identified, and compensated to manage the program, the program will have a large impact on staff time. Successful implementation of all aspects of the ordinance will require strong collaboration across various departments. The success of these programs, specifically the regularly scheduled open consumption district pilot program, will be dependent upon many of the logistical aspects the public will not see. If the City Council decides the continuation of a regularly scheduled open consumption district beyond the sunset date is right for Fayetteville, an RFP should be developed to solicit proposals for an entity to manage the district. Attachments: Exhibit A: Outdoor Refreshment Area Ordinance Text Exhibit B: Fayetteville's Designated Outdoor Refreshment Area Map Boundary Exhibit C: Act 812 Exhibit D: Phasing Plan for reference Exhibit E: Public Consumption Comparative Presentation Exhibit F: Facilitated Focus Group Session Notes from November of 2019 Exhibit G: Transportation Committee Presentation from May 12, 2020 Exhibit H: Letters of Support ORDINANCE NO. AN ORDINANCE TO ESTABLISH BOUNDARIES FOR AN ENTERTAINMENT DISTRICT IN THE CITY OF FAYETTEVILLE AND TO PROMULGATE RULES FOR THE LIMITED OUTDOOR CONSUMPTION OF ALCOHOL IN CERTAIN PUBLIC PLACES WHEREAS, Act 812 .of 2019 grants municipalities broad authority to create "designated entertainment districts" in contiguous areas zoned for or customarily used for commercial purposes located within the municipality; and WHEREAS, the Act also allows municipalities to create reasonable standards for the regulation of alcohol possession in outdoor public spaces within a designated entertainment district. 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 enacts § 111.07 - Outdoor Refreshment Area of the Fayetteville City Code as follows: "111.07 - Outdoor Refreshment Area (A) Definitions (1) Customer shall include a patron, guest, or member. (2) Owner shall include the owner, manager, or operator of an establishment permitted to sell alcoholic beverages. (3) Permittee shall mean the person or entity who has received an event permit from the City of Fayetteville allowing the outdoor consumption of alcoholic beverages within an established entertainment district. (4) Limited open consumption district pilot program shall mean a series of specific dates and times which occur on a limited basis in which a person or customer may purchase alcohol from participating businesses and consume said alcohol within a defined area with open streets within the Outdoor Refreshment Area. The dates and times, as well as any rules applicable to such a pilot program, shall be established by the Mayor. (B) Creation and establishment of districts. Pursuant to the authority granted by Ark. Code Ann. § 14-54-1412, an entertainment district is hereby created with the areas and boundaries as set forth and designated on the map which is attached hereto as Exhibit 1 and incorporated herein. The district shall be known as the Outdoor Refreshment Area on the map attached as Exhibit 1. (C) Outdoor consumption of alcohol in public places. The consumption of alcoholic beverages or possession of open containers of alcoholic beverages in public outdoor areas within the Outdoor Refreshment Area is prohibited with the exception of: (1) Events with standing approval. The outdoor consumption of alcohol may be allowed on public streets, sidewalks, rights -of -way, parking lots, or outdoor public areas within the areas designated for events with standing approval pursuant to the Fayetteville City Code. The prior written authorization of the Mayor shall be required, and additional conditions may be placed on the permittee, the event, and any owner who wishes to allow the owner's customers to participate in the event as part of the authorization. The areas designated for the outdoor consumption of alcohol at standing events shall be closed to vehicular traffic unless those areas fall within a limited consumption district pilot program in which case the rules for the open consumption district shall apply. (2) Special event permits with specific approval. A special event permit issued by the Mayor pursuant to § 72.58(M) may authorize the outdoor consumption of alcohol on public streets, sidewalks, rights -of -way, parking lots, or outdoor public areas in certain areas and only during the times specified in the permit. Additional conditions may be placed on the permittee, the event, and any owner who wishes to allow the owner's customers to participate in the event as part of the authorization. Such areas may be closed to vehicular traffic. (a) Organizers of events who wish to apply for the special event permit to allow open consumption of alcohol within the entire event area, rather than confining alcohol consumption to a limited area, shall complete the appropriate Notice of Proposed Closure for a Outdoor Refreshment Area Event Form as well as the standard Notice of Proposed Closure form. (b) A business located adjacent to or within the event area may sell alcohol for open consumption in the event area only with the approval of the event organizer. If an event occurs during a time and within the area of a limited consumption district pilot program, business sales of alcohol for open consumption shall be permitted. (3) Limited open consumption districtpilotprograms. The Mayor may identify specific dates and times to authorize the implementation of a limited open consumption district pilot program within the Outdoor Refreshment Area. Such pilot program areas will not require street closures. Rules established by the Mayor applying to pilot program areas shall be distributed to business owners and signs shall posted in conspicuous locations within the pilot program area. (a) At least 21 days prior to the beginning of an open consumption pilot program, City staff will notify nearby businesses and identify participating businesses. (b) The Mayor, by and through staff, shall notify the City Council Members by email or otherwise of the decision to implement a limited open consumption district pilot program. If at least two (2) City Council Members notify the City Clerk's Office in writing within seven (7) days of the Mayor's notification of his or her decision that 2 they wish to appeal such decision, then the issue will be presented on the next City Council meeting in which the Mayor's decision could reasonably be considered. The City Council would then be able to decide by Resolution whether to reverse the Mayor's decision or upon what conditions (if any) the permit would be granted. (c) The provisions of subsection 111.07(C)(3) shall expire on January 30, 2021. (D) Conditions for consumption of alcoholic beverages in public outdoor areas. Any owner within a designated area may allow a customer to exit the owner's premises during the hours designated in the special event permit or in an area defined in a limited consumption district pilot program with no more than one (1) open container of alcoholic beverages and consume said alcoholic beverages anywhere within the confines of the designated area in which the alcoholic beverage was obtained, subject to the following regulations: (1) An owner within the designated event area or in an area defined in a limited consumption district pilot program may allow alcoholic beverages to be removed from the licensed premises during special events with specific approval who have requested businesses be able to sell to attendees and/or during the times of the limited consumption district pilot program and only in a compostable or reusable cup that bears the proper city approved logo, and no such alcoholic beverages shall be removed from the permitted premises in a can, bottle, or glass container. (2) No owner shall allow a customer to exit its premises with an open container of alcoholic beverage until the owner has placed a designated physical identifier on the customer, and it shall be unlawful for any person to exit such licensed premises with an open container without the required physical identifier. (3) It shall be unlawful for a customer to enter any business regulated by the Arkansas Alcoholic Beverage Control Division with any alcoholic beverage that was not acquired at that location. A customer may not enter any other establishment with an open or closed container of alcoholic beverage without the consent of the owner or manager of the establishment. (4) It shall be unlawful for any person to drink or attempt to drink any alcoholic beverage from a can, bottle, or glass container, or to possess any open can, bottle, or glass container of alcoholic beverages on the public streets, sidewalks, rights -of -way, and parking lots located within the Outdoor Refreshment Area. (5) No container in which an alcoholic beverage is dispensed and removed from the licensed premises shall exceed sixteen (16) fluid ounces in size. (6) No person shall possess on the public streets, sidewalks, rights -of -way, parking lots, or outdoor public areas located within the designated area any open alcoholic beverage container which exceeds sixteen (16) fluid ounces in size. (7) No person shall possess on the sidewalks, public streets, rights -of -way, parking lots, or outdoor public areas any open alcoholic beverage container outside of the approved area of an event or the district. (8) It shall be unlawful for a customer to distribute alcohol for open consumption obtained from a business participating in the Outdoor Refreshment Area to any other individual. (9) It shall be unlawful to create, possess, or distribute fraudulent or unauthorized visible identifiers or cups within the Outdoor Refreshment Area. (10) No person shall publicly consume within the Outdoor Refreshment Area any alcoholic beverage purchased outside of the Outdoor Refreshment Area. (E) Sidewalk Cafes in the Outdoor Refreshment Area. If an owner within the Outdoor Refreshment Area has also received a sidewalk cafe permit pursuant to § 178.02 of the Unified Development Code: (1) The owner may serve alcoholic beverages in open containers during the hours of operation and in the areas authorized by the sidewalk cafe permit; (2) Glass containers shall be allowed in the approved outdoor dining areas but shall not be removed from those areas; and (3) No fencing or other enclosure of a permitted sidewalk cafe located within a designated outdoor refreshment area shall be required. (F) State laws applicable to the Outdoor Refreshment Area. All other Arkansas laws including, but not limited to, Ark. Code Ann. § 3-3-201, et seq (prohibited practices regarding alcoholic beverages), Ark. Code Ann. § 5-71-207 (disorderly conduct), Ark. Code Ann. § 5-71-212 (public intoxication), Ark. Code Ann. § 5-71-218 (consumption of alcohol in a motor vehicle) remain in effect and will be enforced within the Outdoor Refreshment Area. (G)Littering Prohibited. No person shall violate the littering prohibition set forth in § 98.07 of the Fayetteville City Code. PASSED and APPROVED this APPROVED: ATTEST: El ►����i�frr�rrir► FAYETTEVILLE By: ; KARA PAXTON City C1erk/Trea q 5 '• 1 n I I `r VI.; ila St a `v 1 `o U) W Maple StW Hanle_ SuIi - ------ >y ------------ y.�- --- - o ♦ Univ. s washington III,♦ 0 fin/ Rea St Baptist do Elementary c y`" Ch. ♦ U N I V E R S I T Y s u V';+ I_aiayette St z D F a � '.0 6ces. St a A R K A N S A S 'JV Dickson St 1 >l %%Illiain Sr,., w 1'Vhiteside St i > of '' Q a s � co J Evergreer o Cemetery p< z WAC MSC Q of renter St r I r r r <V'V Putman St :- U ' O F. P. S. N VJ Stone St Q �> . "is< _ l U n f r�f r Walmart Ln r r ry A = r r I Proposed ORA Adopted Cultural Arts District Building U FLl Ln !i, MSC I-1 Varsity 0 s, - �_ e �h > v a Q U N o _ w E Senn E.Center Downtown Square 9 Sr 71a E Maple St r rs( 45 MSC < C a= a� C7 O u Q MSC _ 1� I ' 1 7I. t > , �71 Q , E th St � c � N U VV 5th St E 5th St a L Q> U1 N� .J C u � Ln r� U; 1 -----------------------------= E7t. S. 0.13 Exhibit I Fayetteville Outdoor Refreshment Area (ORA) With Zoning - Fayetteville, AR 0.25 0.5 Mile CITY OF _ FAYETTEVILLE ARKANSAS The ugta rar4—d ksizm was a Vfledl Nctr ,eaic_s eed— tor Me mie oar and • 'I'l el the Cityer Fa'yettndlfe Gepgraphc.lnfannsCen S� ned " p%iele agenaes t serves Anv use al the Bala n1's�yv a rsNae Wu the G6y e[ Feyetteailk s al the sole risk of the user: and by acceptance al this data, the user does hereby agree to indemnify the City of Fayetteville and hold the City of Fayetteville harmless ham a,d r%ilh- liabeey for any claims """'. cost for damages of any nature including the city's wsl of del— asserted by user airby _e Cher ariung from the se of this date- The City of F,,Htt ilk makes no esprers or implied warrantees with reference la the data No word phrese, o clause found herein shah be ,,vlr, d to waive th,l tod im—ty vet forth under Arkansas law. Map Date: 05/13/2020 Stricken language wouiu be deleted from and underlined language would be added to present law. Act 812 of the Regular Session 1 State of Arkansas As Engrossed: H3128119 2 92nd General Assembly A Bill 3 Regular Session, 2019 SENATE BILL 492 4 5 By: Senators T. Garner, Bond, B. Sample, G. Leding, L. Chesterfield, Elliott 6 By: Representatives Barker, A. Collins, McCullough, Scott II 8 For An Act To Be Entitled 9 AN ACT TO PROMOTE HOSPITALITY AND TOURISM; TO 10 ESTABLISH AREAS OF A CITY OR TOWN THAT HIGHLIGHT 11 RESTAURANT, ENTERTAINMENT, AND HOSPITALITY OPTIONS; 12 TO ESTABLISH TEMPORARY OR PERMANENT DESIGNATED 13 ENTERTAINMENT DISTRICTS; AND FOR OTHER PURPOSES. 14 15 16 Subtitle 17 TO PROMOTE HOSPITALITY AND TOURISM; TO 18 ESTABLISH AREAS OF A CITY OR TOWN THAT 19 HIGHLIGHT RESTAURANT, ENTERTAINMENT, AND 20 HOSPITALITY OPTIONS; TO ESTABLISH 21 TEMPORARY OR PERMANENT DESIGNATED 22 ENTERTAINMENT DISTRICTS. 23 24 25 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 26 27 SECTION 1. Arkansas Code § 3-2-206, concerning the rulemaking 28 authority of the Alcoholic Beverage Control Division, is amended to add an 29 additional subsection to read as follows: 30 (f) A rule promulgated under this title that prohibits a person from 31 possessing an alcoholic beverage outside of an establishment that holds a 32 permit for on -premises consumption and from which the alcoholic beverage was 33 purchased does not apply within a designated entertainment district as 34 defined in § 14-54-1412. 35 36 SECTION 2. Arkansas Code § 5-71-212(e), concerning the exceptions to 03-28-2019 10:51:42 BPG340 As Engrossed: H3/28/19 SB492 1 consuming alcohol in public, is amended to read as follows: 2 (e) The prov;sira s of th�s This section Rhall does not be eenstriAed t 3 prohibit or restrict the consumption of an alcoholic beverage when consumed_ 4 (1) a� As a part of a recognized religious ceremony or ritual; or 5 (2) Within the physical boundaries of a designated entertainment 6 district as defined in § 14-54-1412. 7 8 SECTION 3. Arkansas Code Title 14, Chapter 54, Subchapter 14, is 9 amended to add an additional section to read as follows: 10 14-54 1412. DesiKnated entertainment districts. 11 (a) As used in this section, "designated entertainment district" means 12 a contiguous area located in a part of a city, a municipality, or an 13 incorporated town that: 14 (1) Is zoned for or customarily used for commercial purposes; 15 and 16 (2) Contains any number and any combination of restaurants, 17 taprooms, taverns, entertainment establishments, hospitality establishments,_ 18 music venues, theaters, bars, art galleries, art studios, tourist 19 destinations, distilleries, dance clubs, cinemas, or concert halls. 20 (b)(1) A city, a municipality, or an incorporated town collecting a 21 gross receipts tax on prepared food or hotel and motel accommodations under 22 ,§§ 26-75-602 — 26-75-613 and located in a county authorized to sell alcoholic 23 beverages may by ordinance create a designated entertainment distract. 24 (2) A designated entertainment district may be permanent or 25 temporary. 26 (3)(A) A city, a municipality, or an incorporated town that 27 creates a designated entertainment district under this section shall set by 28 ordinance reasonable standards for the regulation of alcohol possession 29 within the boundaries of the designated entertainment district. 30 (B) An ordinance enacted under this subsection does not 31 diminish the requirements of the Alcoholic Beverage Control Division 32 concerning permits issued within the designated entertainment district. 33 (4) A city, a municipality, or an incorporated town that creates 34 a designated entertainment district under this section shall notify the 35 division within ten (10) days of the issuance or removal of a permanent or 36 temporary designation as a designated entertainment district. 2 03-28-2019 10:51:42 BPG340 As Engrossed: H3/28/19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 SB492 Is/T. Garner APPROVED: 4/9/19 3 03-28-2019 10:51:42 BPG340