Some downtown Orlando nightlife businesses are challenging a city program that requires certain venues to help pay for additional police services during late-night hours, arguing the fees place an unfair financial burden on independent businesses.
The dispute is playing out in federal court, where several venue owners have challenged the constitutionality of the city’s After-Midnight Alcohol Sales permit program. The National Independent Venue Association is also urging Orlando officials to suspend the fees and work with business owners on an alternative approach.
The program, established in May 2023, requires businesses in the Downtown Entertainment District that serve alcohol between midnight and 2 a.m. to obtain a permit and contribute toward additional public safety costs.
Eric Fuller, an owner of Celine Orlando, says they are paying thousands of dollars a month for the fee.
“We’re paying almost $10,000 a month for a service that’s provided to an entire district,” Fuller said.
Fuller said the expense has forced the venue to reduce staffing and postpone investments in maintenance and upgrades.
“We’ve had to let people go. We’ve had to really pull back on reinvesting into the venue,” he said.
The city program also requires participating businesses to implement security measures, including metal detectors and identification scanners.
Fuller said he believes the costs are not being distributed fairly among downtown businesses. He said 23 of roughly 60 businesses are paying fees that help support police services benefiting the broader entertainment district.
“Those have to stop,” Fuller said of the fees.
In a Nov. 4 letter, the National Independent Venue Association called on Orlando officials to suspend the program and establish a dialogue with affected businesses. The organization argues the fees have contributed to financial challenges for independent venues, some of which have closed.
The federal lawsuit challenges the constitutionality of the fee structure. The case is pending before the 11th U.S. Circuit Court of Appeals.
Orlando officials defend the program as one part of a broader effort to improve downtown safety.
In a statement, a city spokesperson said the permit program helps offset a portion of the costs associated with downtown public safety services, while emphasizing that the city also pays for law enforcement downtown.
The city pointed to other investments, including additional off-duty Orlando police officers, improved lighting, increased code enforcement and enhanced security requirements for businesses.
The city also said it created the SAFE grant program to help eligible businesses pay for security improvements such as metal detectors, identification scanners and surveillance cameras.
Those efforts have contributed to a 20% reduction in overall downtown crime, according to the city.
Fuller said he supports efforts to make downtown safer but believes the financial responsibility should not fall on a limited number of businesses.
He said he hopes city officials will end the current fee program and work with business owners to find another way to fund public safety.
“I think the city should end the AMS as soon as they can and bring everyone to the table for dialogue,” Fuller said.