Delray Beach is having an identity crisis. It’s transformed into an art and nightlife mecca in the last decade. Now the city is in turmoil over how to sustain the change. It could be the Las Olas Boulevard of Palm Beach County. Or it could drive out what makes it a South Florida hotspot: popular festivals, booming nightlife and trendy new murals sprawling across buildings. It’s caught in a tug-of-war over how to manage the nightlife, public art and crowds — leaving locals and visitors hanging in the balance. Delray-based festivals were once big, boisterous affairs. They started shrinking years ago when businesses complained about overcrowding and the city imposed new rules on when and how many festivals could take place downtown each month. … The city seems destined to repeat the problem with its rowdy nightlife. Almost everyone, including businesses, residents, and those who come to party, agrees it’s good for the city. But leaders keep cracking down on the businesses that attract thousands of visitors on a weekly basis. They’re too overcrowded, and it’s dangerous, officials say. But posting police and firefighters at entrances is killing the vibe on Atlantic Avenue. … It’s impossible to miss two brand-new murals that welcome visitors who drive into the city on Atlantic Avenue. The massive paintings sprawl over the city’s face like a smile, and locals say they’d like to see more. They like the public art presence in cities such as West Palm Beach, Lake Worth, Fort Lauderdale and Wynwood, which many visit to see elaborate murals. Delray Beach is joining the ranks of those cities, attracting visitors with unique painted buildings. … “I think it really gives the city charm,” [said Brittany Kovler, 32, of Deerfield Beach]. “It makes it unique.” Delray’s leaders are less sure. The sudden spread concerns them, and efforts to regulate the murals could bog down the artistic process with red tape.