Bill would allow entertainment districts

The General Affairs Committee heard testimony Feb. 6 on a bill that would authorize the designation of common areas where alcohol could be consumed.

LB1130, introduced by Lincoln Sen. Colby Coash, would authorize the creation of entertainment districts and a licensing process for those districts.

An entertainment district would be designated and regulated by a local governing body via city ordinance and could be revoked if found to be a nuisance or a threat to public health, safety or welfare. Entertainment district designations would be filed with the state Liquor Control Commission (LCC).

Under the bill, a local governing body could designate a commons area within the district that:
• is shared by entertainment district authorized licensees;
• abuts the licensed premises of the licensees;
• is closed to vehicular traffic when used as a common area; and
• has limited pedestrian accessibility by use of a physical barrier on a permanent or temporary basis.

To operate in the commons areas, a business would be required to:
• file an application with the LCC and pay a $300 fee;
• be located adjacent to a commons area within an entertainment district; and
• have a retail liquor license, craft brewery license or microdistillery license.

Each entertainment district licensee would be required to serve alcoholic liquor in a container that displays the business’ logo or trade name, which Coash said would hold each one accountable for liquor sales in their individual establishments.

Coash said local governing bodies also could place additional regulations and restrictions on entertainment district licensees.

“This license starts like any other license,” Coash said. “It starts at the local level.”

He said entertainment districts could help retain young professionals in Nebraska and encourage out-of-town visitors.

Dave Landis, deputy director of urban development for the city of Lincoln, testified in support of the bill. The ability to create an entertainment district would help the city promote the new Pinnacle Bank Arena development in the West Haymarket area, he said.

“We want people to come to Lincoln to enjoy something special,” he said. “To create that, we need to have unique and vibrant experiences.”

Brett West of WRK also supported the bill. As a private partner with the city involved in arena-related development, West said an entertainment district would encourage visitors to spend more time and money in the area.

“The project really is focused around the arena … and extending that event atmosphere,” he said.

Hobert Rupe, executive director of the Liquor Control Commission, testified in support of the bill. The state’s liquor control act was written in 1935, he said, and adding entertainment district would reflect more modern business models.

Rupe said a similar district in Kansas City has resulted in no additional enforcement problems.

No opposition testimony was given and the committee took no immediate action on the bill.