Orlando nightlife industry pitches surcharge to fund downtown public safety costs

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A nightlife-advocacy group is pitching Orlando officials on a surcharge on downtown purchases as a way to fund more cops and public safety initiatives in the area.

The proposal of a 5% tax was crafted by the Orlando Hospitality Alliance and comes amid an ongoing debate on the best way to fund public safety downtown surrounding Orlando’s nightlife. The charge would be on top of the sales tax customers pay on bar tabs and other purchases.

The city council advanced a plan last week which would require bars and nightclubs with a capacity of at least 150 people that want to pour liquor after midnight to have a permit, and could also require hiring off-duty cops, private security, installing metal detectors, as well as other measures. That ordinance would need a second vote to be enacted, which is scheduled for March 20.

That idea was met with pushback from nightlife operators who say it isn’t equitable and is too costly. Following the vote last week, Mayor Buddy Dyer said the city was open to other ideas pitched by the industry and would review better proposals if one came forward.

Days later, members of the Orlando Hospitality Alliance pitched a surcharge assessed on sales in the Downtown Entertainment District, which generally runs from Colonial Drive to State Road 408 between Rosalind Avenue and Interstate 4.

Following a shooting last year, the Orlando Police Department added 30 more officers to the downtown area on weekend nights. The surge, which costs about $40,000 per weekend, is an “unsustainable” cost and strain on staffing, Chief Eric Smith said.

The presentation outlining the surcharge proposal said it would bring in roughly $3 million in proceeds, more than the $2-plus million needed to fund the surge downtown. All of the new money would be designated toward public safety, ranging from paying for officers to training and other equipment, according to the proposal.

“In conversation, they seem to really actually like the idea, “said Dominique Greco, the executive director of the Orlando Hospitality Alliance. “From all the research we’ve done … we see that it has legs. Now we’re basically asking the city to fact-check it.”

It’s unclear if the proposal will advance beyond initial discussions.

Cassandra Bell, a spokesperson for Dyer, said the idea was among those brought up by bar owners at the “listening session” last week. Talks are expected to continue ahead of the scheduled second vote in seven weeks.

“During this time, staff will continue the conversation with our stakeholders and research the feasibility and impact of any proposed ideas and suggestions,” Bell said.

Last week, prior to the first vote by the city council, more than a dozen people — mainly business owners, their representatives or employees — spoke against the ordinance, expressing concern the requirement of hiring off-duty officers at $90 per hour would be a financial strain on their bottom line.

Margaret Casscells-Hamby, who owns the building housing The Beacham, was interested in the surcharge idea.

“Obviously, the devil is in the details, but we think this idea has a lot of merit,” she said in an email. “It is certainly a much fairer way to pay for more officers in the entertainment district.”

The proposal was outlined in a presentation, which noted it would collect more money as downtown spending increases, meaning it would account for growth, it reads.

“The current proposal from the city has no mechanism for increased funding, and as bars or nightclubs close, funding will actually decline while the need for public safety still remains high,” it reads.

The alliance also wants the city to pursue hiring more full-time officers to patrol downtown, rather than further relying on cops working extra duty, Greco said, as well as not requiring walk-thru metal detectors at most establishments.

“What the city is saying is only charge this to people selling alcohol after midnight; what we’re saying is let’s spread it out because downtown needs more police presence day and night,” she said. “So many people come downtown for hundreds of other reasons.”

rygillespie@orlandosentinel.com