LA GRANGE — An ordinance that would have exempted all entertainers, “temporary” or not, from business license requirements when performing within licensed establishments failed to pass at the Aug. 4 La Grange City Council meeting despite local entertainers’ complaints.
As previously reported, the council approved an ordinance in June that exempted entertainers who “provid[e] temporary entertainment services … in public settings or in a licensed establishment” from being required to pay the business license tax and temporary vendor fees when performing within the city limits.
When it was passed, the word “temporary” was not explicitly defined in the ordinance.
In May, another ordinance was brought before the council amending the previously approved ordinance — simply removing the word “temporary.” Its intent was to “clarify that the temporal nature of the entertainment is irrelevant” and let all entertainers perform “in public settings or in a licensed establishment” without having to pay the licensing tax or vendor fees.
When the amendment came before the council on Aug. 4, however, opinions were divided.
City Attorney Beach Craigmyle introduced the amendment, saying that the exemption was based “on the theory that they [entertainers] are good for economic development” and that the change was spurred by a question about the definition of “temporary.”
“In other sections of the code, the word temporary is implied to mean 30 days or more — that’s not the intention of this ordinance,” Craigmyle said.
During the public hearing, local karaoke DJ Brian Rea told the council that “Entertainers like me are not independent businesses.
“We’re hired by bars, restaurants and venues that are already fully licensed. Requiring performers to also carry a business licence is redundant and, frankly, it penalizes those of us doing small, part-time gigs … A flat license fee can take a big bite out of our modest earnings, especially for young or just starting artists.
“This kind of rule discourages local talent and hurts venues that rely on live entertainment and draws customers … When people go out for karaoke, they don’t just sing, they support small businesses. If regulation is needed, it makes more sense to work with the licensed venues, not the performers they book.”
After the public hearing, Councilor Kenneth Powell shared his dissent: “If you’re getting paid, you’re running a business … if we’re going to have a temporary entertainment, then we need to set a temporary amount of times that they can do that.
“If not, then you’re going to have a temporary entertainer coming every other day, once a week, twice a month, whatever — and that could accumulate a lot of money that is generated into a small business …”
Powell also asked how much licensing costs and was told it is $55.
“I think if you’re doing anything for entertainment or if you’re doing anything for a business, $55 a year — I don’t think that’s going to break the bank,” Powell continued.
Some councilors disagreed with Powell. “There are people who have businesses and that run businesses and they hire these people to come and entertain their guests, so they’re basically employees of the people that they’re working for …” said Councilor Lucy Ricketts.
Councilor Laura Taylor added that “these are people that are providing services within a business that already has a business license, so you’re double dipping if you ask these individuals to pay a business license over on top of that …
“What about those people that are just starting off, that are struggling, that are new to entertaining? You’re dissuading them from coming to our city and providing services. You’re dissuading people from coming from Louisville or J-town or Lexington … that could come and generate money in our city.”
“If you run a business and you’re making money, that’s $55. If you can’t afford the $55, you need to find another business or a hobby,” Powell replied.
Councilor Joe Davenport asked if the exemption would apply to bands that play for the monthly Trackside Tunes event or other city-sponsored events.
“The bands that we hire have business licenses,” answered La Grange Tourism Director Donna Sabo. “Anyone I hire has a license — the balloon artist has a license.”
Upon taking a vote, the amendment failed to pass with only two votes in favor from councilors Laura Taylor and Jason Taylor — Councilor Jason Kinser abstaining.
No discussion followed regarding how to define “temporary,” leaving enforcing the ordinance subjective.
In other news, the council unanimously approved an ordinance that will allow the city to alter health insurance rates for its employees on an annual basis rather than being forced into a set 90% from the city and 10% from the employees, as it has been historically.
“We decided that it’s not proper financial procedure … [and] it’s almost impossible for the city to lock in on a guaranteed percentage of anything not knowing what health rates are doing in today’s market,” Black explained.
Questions arose regarding what the new rate would be and if it would result in what would seem like a pay cut to city employees.
Human Resources Director Katie Bechtold explained that the city has been waiting to hear back from its brokers to determine if the rates would change, likely to happen in the next week, and that they would not go into effect until Oct. 1. New rates would also be discussed by the personnel and budget committees before being brought to the council, likely in September.
The ordinance also repeals all prior ordinances regarding personnel policies prior to the adoption of last year’s employee handbook to make the personnel policies more simply defined and adaptable.
In a five to two vote, the council also reappointed Encompass Develop, Design & Construct Founder and President John Stewart to the Oldham-La Grange Development Authority (OLDA) Board, which presides over the city and county’s shared development Oldham Reserve.
Laura Taylor and Jason Taylor cited Stewart’s decision to not support a moratorium on data centers within Oldham Reserve as reasoning for voting against his reappointment and Kinser abstained.
The council also conducted a first reading for their annual ad valorem tax rates of 19.1% for business properties and 26.5% for personal properties as well as approved a municipal order amending personnel policies and setting procurement standards required to apply for Federal Transportation Administration grants.
The council heard the following reports:
Sabo reported work is continuing for the mural by 5 Star Pawn off of Parker Drive regarding electrical and lighting, but it is close to completion. Alley Loop Festival will be held Oct. 11, featuring a “La Grange Idol” singing competition. Sabo also said that about 99% of the businesses and merchants in La Grange have expressed wanting to participate in the Entertainment Destination Center involving the recently approved open alcohol zone.
Utilities Director Scot Treece reported that the Fourth Street sewer rehab is in construction and is on schedule to be completed by the start of the school year. One contractor bid on the courts water line rehab project and Treece expects it to be rejected and rebid. The Summit Parks section four project is underway, the Fort Pickens tank rehab is awaiting the contractor, the First Street water project is awaiting CSX and Division of Water approval, and Oldham Reserve is about 50% complete. Both the East Peak Road sewer extension and the Trilogy sewer project are awaiting Division of Water approval.
Bechtold reported that the Oldham’s Public Bus has maxed out the amount of federal grant money it will be receiving now that it no longer is tied to Transit Authority of River City (TARC) — a total of $101,870. She thanked Administrative Assistant Lisa Long, Financial Director Cindy Alvano and Craigmyle for their help in securing the funding.
Parks Director Steve Mahoney reported that he is working on getting the city’s properties verified on Google and streamlining the city’s social media accounts. Mahoney also said that he is working with Kentucky Fish and Wildlife to learn how to better service the city’s ponds and that new hole signs have been put in at Eagle Creek Golf Course.
The La Grange City Council’s next meeting is scheduled for Tuesday, Sept. 2, at 6:30 p.m.