The City of Owensboro is considering amending its city-wide smoking policy after having conversations with Ellis Entertainment, whose representatives told city officials said the current policy could have a negative impact on the business when it opens.
Ellis Entertainment remains in the early stages of opening a new entertainment venue in Owensboro’s Towne Square Mall, specifically in the former JCPenney’s location. Officials previously said the venue plans to initially open with a wide selection of historical racing machines (HRMs), a simulcast betting and viewing area, and a new race- and sports-themed bar and grill.
Ownership of the project was eventually acquired by Churchill Downs. No officials from Ellis Entertainment or Churchill Downs were present during Tuesday’s City Commission meeting.
Instead, City Manager Nate Pagan spoke about the issue, saying Churchill officials contacted the City with a concern about the smoking ban currently in place.
“Churchill explained that they believe the ability to smoke at the facility is integral to its success,” Pagan said. “In discussions about the issue, the Board of Commissioners seemed open to their request. As a result, staff began negotiating with Churchill Downs about potential changes to the smoking ordinance.”
Commissioners did not vote on the ordinance but are expected to later this month.
Pagan said the amendment would allow smoking “in a limited scale for projects meeting various criteria.” He said those criteria include:
- The project or site must have at least 50,000 square feet of space and represent a capital investment of at least $30 million.
- Smoking would only be allowed in a limited portion of the space which is not to exceed 15% of the total space accessible to the public.
- The smoking area must be partitioned with a full wall and a vestibule or double doors between smoking and non-smoking areas.
- A separate air purification system is required.
- The location must not allow patrons under the age of 18.
While there was no action taken on the smoking ordinance, the City did approve a municipal order amending its incentive package with Ellis Entertainment.
“During the negotiations, we also reconsidered and opened up the incentive agreement,” Pagan said.
The original incentive agreement was approved in April 2022. It provided a 5-year, 50% General Fund occupational tax rebate to Ellis Entertainment.
The unanimously approved municipal order amends the agreement by inserting a required payroll amount for the first several years the historic horse racing facility will operate.
Pagan said if the aggregate payroll provided to the employees of the facility fails to meet the required amount, the company would forfeit or lose their incentive for that year.
“We did this to help ensure the project has a sizeable employment and economic impact in our community,” he said.
