Bella Vista settles short-term rental case for $11K, admits no liability

BELLA VISTA, Ark. (KNWA/KFTA) — Bella Vista has agreed to settle a lawsuit after it was deemed cost-efficient for the residents.

The suit was officially dismissed with prejudice on July 30 after the attorney offered to settle for $11,000. City officials unanimously approved the amount during a regular meeting on Tuesday, May 28.

The suit was on behalf of 35 plaintiffs against a Nov. 2022 city ordinance. In the Tuesday meeting, the Bella Vista Staff Attorney Jason Kelley said that continuing litigation would exceed the settlement amount, according to a news release.

The settlement agreement also states that the city admits no liability in the case and that the city’s short-term rental ordinances remain in full effect.

In a news release, city officials said that the group of plaintiffs sued the city in Jan. 2023. A Nov. 2022 ordinance required a permit for the operation of short-term rentals and rules for operation.

The city council later adopted a different and less restrictive ordinance related to short-term rentals after a Benton County Circuit Court judge prohibited it, the news release states.

Bella Vista caps short-term rental permits at 600. The release states that as of Aug. 1, there are 321 active permits.

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