A significant administrative change quietly took effect Feb. 1 for downtown Orlando’s nightlife. For the first time, venues holding After Midnight Alcohol Sales permits were required to pay their policing fees in a lump sum, in advance, for the month ahead.
The city previously operated on a weekly billing cycle that included a grace period allowing downtown businesses 30 days to pay and up to 60 days before facing a code violation. Orlando’s program mandating AMS permits and associated fees for some venues in a zone called the Downtown Entertainment Area, or DEA, was approved by the Orlando City Council March 20, 2023.
With this year’s program updates, invoices are due strictly on the first of the month, in advance of services being rendered. The city offered a “fee-free holiday” in January to ease the transition, and the arrival of the February invoices marked the start of a stricter financial reality for operators.
“They are doing anything and everything they can to squeeze people out. If this was rooted in common sense, every bar or establishment would be paying into this, not just some. But even that is illegal. We already have a mechanism for this. It’s called taxes,” says Eric Fuller, owner of the nightclub Celine on Magnolia Avenue. “It’s not legal what they’re doing, in our opinion.”
Defining the ‘Downtown Density Zone’
The fees are no longer applied broadly to the Downtown Entertainment Area. Instead, the city has targeted what it calls the “Downtown Density Zone,” or DDZ.
City officials define this zone within the larger DEA as the area containing the “highest density of violent crimes which occur after midnight” based on fiscal year data, according to Andrea Otero, a City of Orlando public information officer. The boundaries are defined as Jefferson Street to the north, Rosalind Avenue to the east, South Street to the south, and Garland Avenue to the west.
In correspondence sent to permit holders on Dec. 22, 2025, the Downtown Development Board outlined a tiered cost structure for the new zone, touting it as a cost reduction:
• Level 1: Approximately $2,894 monthly (previously $3,960).
• Level 2: Approximately $5,788 monthly (previously $7,920).
• Level 3: Approximately $8,681 monthly (previously $11,880).
However, downtown venue owners argue these base numbers don’t tell the whole story. George Maltezos, managing partner of The Block — a cluster of venues at North Orange Avenue and East Washington Street that includes The Corner, The Patio, Aero, 64 North, The Social and The Beacham — notes that a 10% administrative fee is added on top of the base rates, bringing the actual cost to approximately $99 per officer hour.
“We pay about $28,000 per month for The Block’s venues under this structure,” Maltezos tells Orlando Weekly.
New compliance standards
A big source of anxiety for business owners is the discrepancy between city ordinances and these new “standard operating procedures.” While the relevant ordinance historically allowed for a 30-day grace period, the city’s amended SOP now explicitly requires payment “on or before the first day of each month.”
In a Feb. 12 email to Orlando Weekly, City of Orlando public information officer Ashley Papagni confirmed, “While the ordinance itself remains unchanged, the guiding document referencing the Standard Operating Procedures has been amended.”
On Feb. 4, the Downtown Development Board sent a reminder email to permit holders stating that “operating an establishment after midnight when payment is past due is a violation of the conditions of the permit,” warning that multiple violations could result in an immediate notice of suspension hearing.
In a Feb. 17 email, City of Orlando public information officer Andrea Otero stated, “A number of establishments missed the February 1 due date. Each of these establishments is being reviewed for compliance with the AMS SOP.”
Her email did not name the businesses that missed the payment.
Fuller questions the equity of the new zone, asking why other high-traffic locations that generate police calls are exempt. “Look at all the calls that go to that gas station on Colonial … It’s insane,” Fuller says. “Is the gas station paying for cops?”
The city’s action plan
While nightlife operators grapple with the changes, local leaders are aggressively pursuing “Project DTO,” a vision for a transformed downtown Orlando focused on a daytime economy, high-wage jobs and family-friendly spaces.
On Feb. 9, DDB/CRA executive director David Barilla presented an update on the DTO action plan during a city workshop, highlighting a $160 million bond to fund capital projects that signal a move away from a nightlife-centric downtown. Key among these is the transformation of the area under I-4 — formerly a parking hub for nightlife patrons — into “The Canopy,” a 10-acre urban gathering space and park slated for completion in 2027.
Additionally, the city broke ground on Feb. 10 on the Magnolia Avenue project. This renovation will remove the dedicated Lymmo bus lanes to create a two-way, mixed-traffic street with wider sidewalks that is designed to be much more pedestrian-friendly.
“The way I like to say it is we are setting the table so businesses have the opportunity to thrive,” Barilla said regarding the infrastructure upgrades.
The Church Street debate
Included in the bond funding is the renovation of Church Street into a “festival street,” featuring curbless designs, larger sidewalks for cafes and upgraded lighting and landscaping. The city plans to begin work on the first segment, from Garland Avenue to the railroad tracks, in April or May.
However, the terminology has triggered some questions regarding the area’s future atmosphere.
During the Feb. 9 workshop, Commissioner Bakari Burns asked, “It seems like we were working to get rid of the festival feel on Orange Avenue. Now, we’re creating through this design a festival field on Church Street. … Will there be a consideration for changing some of the noise ordinances?”
Barilla clarified that the descriptor of “festival street” is strictly a design concept intended to blur the lines between pedestrian and vehicular space, rather than a concrete plan for constant events and programming. “I don’t want to give the incorrect impression that it means that there’s festivals happening in the … street every day,” Barilla said. Regarding noise, he noted that “we don’t anticipate at this time any changes to the noise ordinance.”
For veteran nightlife operators, the distinction is frustrating.
“What is the point of a festival street without festivals? It makes no sense,” says Victoria Nelli, owner of Arena Art Bar, which closed in November 2024 in part due to issues with the AMS permit, she says. “The party atmosphere defined nightlife in downtown Orlando for decades, and with that comes the noise you would expect from people celebrating life,” she adds. “Who wants to muffle a party down to a whisper?”
Two downtowns
The implementation of the DDZ and the February 1 billing change is described by venue owners as a squeeze play. “I think paying at the first of the month is more of a hardship. It’s one big fat bill to be paid all at once on the front end instead of spread out weekly through the month,” said Maltezos. “It’s going to be harder for some businesses to do.”
Meanwhile, since early 2023, these bars and more have closed, with some of the owners pointing the finger at the city’s program: Arena Art Bar, Shots, Dapper Duck, 1-Up, HighT, Ember, Chillers, Irish Shannon’s, Cahoots, High Tide and Tanqueray’s.
