Entertainment district bill clears first round

Lawmakers gave first-round approval March 5 to 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. He said the districts could enhance entertainment options and help Nebraska cities retain young people.

“Entertainment districts are what growing, progressive cities are doing,” Coash said.

Lincoln Sen. Bill Avery supported the bill, saying an area like the Kansas City Power and Light District would benefit the state.

“Nebraska would be competitive with districts like this,” he said. “I think it’s particularly well-suited to the Haymarket and the [Pinnacle Bank Arena] area.”

Omaha Sen. Brenda Council also supported the bill, saying the North Omaha Village Revitalization Plan also could benefit from the entertainment district concept.

Sen. Tom Hansen of North Platte expressed concern that having areas that are accessible only to adults might detract from the family-friendly atmosphere of arena and other events.

Coash said local communities could place additional restrictions on entertainment districts in their communities if there are concerns, including limits on hours or prohibiting Sunday operations.

“I think those questions will be answered at the local level,” he said.

LB1130 advanced to select file on a 29-1 vote.