Fort Smith ordinance advances another step

— Fort Smith directors met Tuesday to hear the second of three required readings of an ordinance instituting a 1 percent prepared-food tax.

The directors voted 4-3 on Feb. 15 to institute the tax, which would generate an estimated $1.8 million annually to pay operating expenses for the Fort Smith Convention Center. Since there were not the five votes necessary to suspend the rules to allow one reading, the ordinance must be read three times before becoming law. The third reading is scheduled for 6 p.m. Thursday in the planning department conference room at the city offices.

The new tax would go into effect June 1, according to the ordinance.

Eddie York, an opponent of the directors’ move to pass the tax, said he is planning a petition drive to call for a voter referendum on the tax. York owns Art’s BBQ and Grill in Fort Smith.

Earlier this month, city directors and the Fort SmithAdvertising and Promotion Commission approved an agreement for the commission to take over operation of the city’s convention center. The agreement was necessary because the tourism-focused commission is the only entity in the city authorized to spend money from a prepared food tax.

The convention center faces a shortfall in revenue after a state turnback program expired in June. City officials said there is enough money left to cover expenses through 2011, but an alternative revenue source is needed beyond that.

Officials have said it costs about $1.1 million to operate the convention center for a year, but the convention center generates only about $620,000 in revenue through rentals and fees.

Northwest Arkansas, Pages 10 on 02/23/2011

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