PRESS RELEASE January 7, 2014
The Arkansas Licensed Beverage Association has recently compiled the statistics regarding the potential adverse impact on the private clubs and the city of Little Rock. The Little Rock City Board has indicated they may consider an ordinance requiring the clubs to close at 2am even though they possess a 5am permit from the State of Arkansas.
There is a very real danger that the clubs will lose between 60% and 75% of their business and potentially be forced to shut down altogether. A study of the economic impact indicates that even if they are able to maintain a portion of their business, they will potentially still be looking at laying off roughly 153 individuals representing over $1.3 million in salaries. Many of these 150 plus individuals all have families, children, living and healthcare expenses.
The 5 largest private clubs in Little Rock clubs consisting of The Electric Cowboy, Midtown Billiards, Discovery, Elevations and Triniti pay over $98,000.00 annually in city taxes, $473,500.00 in state taxes some of which helps fund UAMS. In addition to the taxes paid, the private clubs pay over $17,300 annually in fees and permits to the city and the state.
The clubs purchase approximately $1,261,000 in goods, services, advertising and spirits, wine and beer from numerous local and state vendors. At the very time that Little Rock is searching diligently for revenue sources to augment shrinking budgets, it does not seem prudent to force the loss of over 150 jobs and deplete a valuable source of revenue.
Little Rock 5 am Press Release; Late night entertainment in Little Rock, Arkansas
In an effort to bring public awareness to the potential limiting of the hours of operation of Little Rock late night entertainment and private club operations, a web site and numerous social media sites have recently been created by the Arkansas Licensed Beverage Association . You can find them at www.littlerock5am.com and the website will be updated regularly as this moves forward. The association is seeking to make the Little Rock directors and the city aware of the potential impact of the closing of these venues at 2:00am rather than at 5:00am as being proposed. In a time of city budget cutting, the limiting of the hours of operation will have a major impact on tax revenues being remitted to the city of Little Rock. It will of course impact money paid to the state of Arkansas as well. The current 5:00am clubs generate approximately 70% and often more of their business between 2:00am and 5:00am. Not only will the business and the revenues collected for the city be lost but also the businesses affected will be forced to layoff well over 60% to 75% of their employees. These people have children, car and house payments. If the ordinance is passed the businesses affected may be forced to evaluate continuing their operations altogether. While there is some talk of economic fairness in an across the board closing there seems to be little that is fair about firms being forced to layoff hard-working individuals who have families and potentially close their businesses. The late night businesses that are allowed to operate until 5:00am provide food, entertainment and adult beverages to many individuals who work the late and evening shifts at hospitals, hotels, restaurants and the service industries in and around Little Rock. Most major first class cities across the nation provide its citizens with some type of late night entertainment as well as food and drink. Our city has numerous concerts, a presidential library, and a demographically and socially diverse population that deserves the opportunity to seek a late night venue.
For additional information contact:
Phyllis Price: email@example.com, The Electric Cowboy
Margaret Hinson: firstname.lastname@example.org, Midtown Billiards
Norman Jones: Mga73@aol.com, Discovery
JD Lipscomb: email@example.com , Elevations
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