HomeMy WebLinkAboutA023 - September 8, 2026, Regular Meeting of the Ames City CouncilITEM #:23
DATE:09-08-26
DEPT:CMO
SUBJECT:ALCOHOLIC BEVERAGE SOCIAL DISTRICT (SIP AND STROLL)
ORDINANCE
COUNCIL ACTION FORM
BACKGROUND:
At the Special City Council meeting on August 28, 2026, the City Council referred to staff a
memo from the City Manager regarding a "Sip and Stroll" ordinance proposed by the Ames
Main Street Guiding Vision Implementation Committee. The Council requested that the topic
be placed on a future agenda.
For many years, Iowa law has expressly prohibited the consumption of alcoholic beverages
upon streets or highways. Although the City has the ability to provide alcoholic beverage
control restrictions that are more restrictive than state law, this specific prohibition could not be
waived by City Council action. Therefore, any event involving alcoholic beverage consumption
in areas of the Downtown required closing the street to vehicle traffic, thereby temporarily
converting the area into a non-street public space.
In the 2026 Legislative Session, the Iowa Legislature adopted changes to Chapters 123
(Alcoholic Beverage Control) and 414 (City Zoning) of Iowa Code (see highlighted provisions
within the legislation in Attachment 1). The modifications took effect July 1, 2026. One of the
modifications was to include an exception that would allow cities to create "Social
Districts" where consumption of alcohol could occur on streets and sidewalks and in
licensed establishments during designated events.
To proceed with the creation of a social district, the City Council must adopt an
ordinance defining the boundaries of the social district area. Then, the City Council
would authorize by resolution each of the events that would be allowed to occur once
the social district ordinance goes into effect. Because the enabling legislation is
codified in Chapter 414 of Iowa Code, the creation or modification of a social district
must occur in the same manner as a zoning action, including notice, hearing, and
Planning & Zoning Commission approval.
During an authorized Social District event, businesses that hold a retail alcohol license
and have been approved by the City Council to be part of the Social District may
dispense it into a special marked container that has been approved by the City Council.
This container could then be carried and consumed outdoors, on streets, sidewalks,
and in other public spaces within the social district. The alcohol may be taken into
other alcohol-licensed, participating businesses that consent to it, but not into non-
licensed premises.
Ames Main Street has proposed an area for the Social District that is shown on
Attachment 2. The proposed area includes the traditional Downtown and extends south
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of the railroad tracks, excluding City Hall and Schainker Plaza. If the City Council
directs staff to proceed, Staff believes the map should be refined before being
presented to the Planning & Zoning Commission for consideration. The map of the
District being proposed by Ames Main Street includes such properties as the Library,
Post Office, Correctional Services Building, and one church as well as undeveloped
land south of the railroad tracts and, therefore, the Staff would prefer to omit these
properties from the District at this time.
In conversations with Ames Main Street, staff believes it would be most effective to
activate the entire social district for each event, rather than authorizing different areas
within the overall district for different events. This will allow for a consistent area to be
publicized to event attendees and for signage to be placed that clearly marks the boundaries
where alcohol may and may not be consumed.
The City Council may recall that staff has historically been hesitant to recommend the approval
of "all-ages" types of events where alcohol can be consumed in an area with a mixture of
persons aged 21+ and those under the legal age to consume alcohol. These events have
involved suspending enforcement of Municipal Code Section 17.16, which prohibits minors on
certain premises where alcohol may be consumed.
In 2025, and again in 2026, staff recommended approval of a waiver of this section of
Municipal Code for 515 Days, which allowed for alcohol to be consumed in the event area with
a mix of 21+ patrons and those under 21. Part of the rationale for allowing this waiver related
to the unique characteristics of Downtown, including: 1) that the event organizers had a long
history of responsible event management, and 2) that the Downtown area does not contain a
significant enough concentration of alcohol-licensed establishments to result in major issues
such as crowd control, etc.
Based on these criteria, staff believes that a Social District ordinance in the Downtown
can be supported. However, Staff would have concerns about the implementation of a
Social District ordinance in other portions of the community that do not have such a
track record, such as in Campustown.
It should be noted that if the City Council chooses to direct staff to draft a Social
District ordinance, Ames Main Street would like to use the new program for Witches'
Walk, which occurs on October 8. This would necessitate that the City Council suspend
the rules at a future meeting in order to adopt the ordinance in a shortened timeframe
as well as approve the businesses that want to participate in the District.
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ALTERNATIVES:
1. Direct staff to prepare an ordinance enabling the designation of a Social District as
provided under state law for the consumption of alcohol in the Downtown area
consistent with the Staff's recommended refined map, and refer the proposed ordinance
to the Planning and Zoning Commission for a recommendation.
2. Direct staff to prepare an ordinance enabling the designation of a Social District and
refer to the Planning and Zoning Commission as described in Alternative 1, but include
modified boundaries or regulations.
3. Do nothing, thereby not supporting the establishment of a Social District.
4. Refer this item to staff for further information.
CITY MANAGER'S RECOMMENDED ACTION:
State law now provides for additional flexibility to permit the consumption of alcohol
within a designated district on dates approved by the City Council. As part of the
implementation of the Ames Main Street Guiding Vision, Ames Main Street has
requested that the City Council take the step of adopting an ordinance that would
enable the City Council to approve public consumption of alcohol during events
designated by resolution. At this time establishing a boundary and a process for a
Social District is the most important step. The details of individual events will be
reviewed at the time of the request. Therefore, it is the recommendation of the City
Manager that the City Council adopt Alternative No.1, as described above.
It should be noted that prior to the activation of a Social District event, the City Council will
have to approve those businesses who want to participate in the District as well as the marked
containers that must be used by the business participants.
ATTACHMENT(S):
Attachment 1 - House File 2780.pdf
Attachment 2 - Sip and Stroll District Boundaries.pdf
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House File 2780 -Enrolled
House File 2780
AN ACT
RELATING TO ALCOHOLIC BEVERAGE CONTROL BY PROVIDING FOR
CERTIFICATES OF COMPLIANCE AND THE ISSUANCE OF CLASS “A”
WINE PERMITS TO NONNATIVE WINE MANUFACTURERS,PERMITTING
CITIES TO CREATE SOCIAL DISTRICTS FOR THE CONSUMPTION OF
ALCOHOLIC BEVERAGES,AND PROVIDING FEES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1.Section 123.3,subsection 40,paragraph c,Code
2026,is amended to read as follows:
c.Notwithstanding paragraph “e”,the applicant is a citizen
of the United States and a resident of this state,or licensed
to do business in this state in the case of a corporation.
Notwithstanding paragraph “e”,in the case of a partnership,
only one general partner need be a resident of this state.The
residency requirements of this paragraph do not apply to an
applicant for a class “A”wine permit issued to a nonnative
wine manufacturer pursuant to section 123.176A.
Sec.2.Section 123.23,subsection 1,Code 2026,is amended
to read as follows:
1.Any manufacturer,distiller,or importer of alcoholic
liquors shipping,selling,or having alcoholic liquors brought
into this state for resale by the state department shall,as
a condition precedent to the privilege of so trafficking in
alcoholic liquors in this state,annually make application for
and hold a distiller’s certificate of compliance which shall
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House File 2780,p.2
be issued by the director for that purpose.No A brand of
alcoholic liquor brought into this state shall not be sold
by the department in this state unless the manufacturer,
distiller,or importer,and all other persons participating
in the distribution of that brand in this state have has
obtained a certificate.The certificate of compliance shall
expire at the end of one year from the date of issuance and
shall be renewed for a like period upon application to the
director unless otherwise suspended or revoked for cause.
Each completed application for a certificate of compliance
or renewal shall be submitted electronically,or in a manner
prescribed by the director,and shall be accompanied by a fee
of two hundred dollars payable to the department.However,
this subsection need not apply to a manufacturer,distiller,or
importer who ships or sells in this state no more than eleven
gallons or its case equivalent during any fiscal year as a
result of “special orders”which might be placed,as defined
and allowed by departmental rules adopted under this chapter.
Sec.3.Section 123.23,subsection 5,Code 2026,is amended
by striking the subsection.
Sec.4.Section 123.30,subsection 5,paragraph a,Code
2026,is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH.(4)A social district,if the holder of
the retail alcohol license is a participating licensee within a
social district and in compliance with the ordinance adopted
under section 414.34.
Sec.5.Section 123.46,subsection 2,Code 2026,is amended
to read as follows:
2.a.A person shall not use or consume alcoholic liquor,
wine,or beer upon the public streets or highways.A person
shall not use or consume alcoholic liquor in any public
place except premises covered by a retail alcohol license.
A person shall not possess or consume alcoholic liquors,
wine,or beer on public school property or while attending a
public or private school-related function.A person shall not
be intoxicated in a public place.A person violating this
subsection is guilty of a simple misdemeanor.
b.Notwithstanding paragraph “a”,a person may possess
or consume alcoholic liquor,wine,or beer upon the public
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House File 2780,p.3
streets,highways,or public places within a social district
if the possession or consumption complies with the ordinance
adopted under section 414.34.
Sec.6.Section 123.135,subsections 1,2,and 3,Code 2026,
are amended to read as follows:
1.A manufacturer,brewer,bottler,importer,or vendor
of beer,or any agent thereof,desiring to ship or sell beer,
or have beer brought into this state for resale by a class
“A”beer permittee,shall first make application for and be
issued a brewer’s certificate of compliance by the director
for that purpose.The certificate of compliance expires at
the end of one year from the date of issuance and shall be
renewed for a like period upon application to the director
unless otherwise revoked for cause.Each completed application
for a certificate of compliance or renewal of a certificate
shall be submitted electronically,or in a manner prescribed
by the director,and shall be accompanied by a fee of two
hundred dollars payable to the department.Each holder of a
certificate of compliance shall furnish the information in
a manner the director requires.The holder of a brewer’s
certificate of compliance may also hold a class “A”beer
permit.
2.At the time of applying for a certificate of compliance,
each applicant shall file with the department electronically,
or in a manner prescribed by the director,a list of all class
“A”beer permittees with whom it intends to do business and
shall designate a designation of the geographic area in which
its products are to be distributed by such permittee.The
listing of class “A”beer permittees and geographic area as
filed with the department shall be amended by the holder of
a certificate of compliance as necessary to keep the listing
current with the department.
3.All class “A”beer permit holders shall sell only those
brands of beer brought into the state which are manufactured,
brewed,bottled,shipped,or imported by a person holding a
current certificate of compliance.Any employee or agent
working for or representing the holder of a certificate of
compliance within this state shall submit electronically,or in
a manner prescribed by the director,the employee’s or agent’s
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House File 2780,p.4
name and address with the department.
Sec.7.Section 123.173,subsection 2,Code 2026,is amended
to read as follows:
2.A class “A”wine permit allows the holder to manufacture
and sell,or sell at wholesale,in this state,wine.The
holder of a class “A”wine permit may manufacture in this state
wine having an alcoholic content greater than seventeen percent
by weight or twenty-one and twenty-five hundredths percent of
alcohol by volume for shipment outside this state.All Except
as provided in section 123.176A,all class “A”premises shall
be located within the state.
Sec.8.Section 123.175,subsection 2,paragraph c,Code
2026,is amended to read as follows:
c.That the applicant is a citizen resident of the state
of Iowa or,if a corporation,that the applicant is authorized
to do business in the state.This paragraph does not apply if
the applicant is the state of Iowa or a state agency as defined
in section 669.2.The residency requirement of this paragraph
does not apply to a nonnative wine manufacturer under section
123.176A.
Sec.9.NEW SECTION.123.176A Nonnative wine manufacturers.
1.As used in this section,“nonnative wine manufacturer”
means a person who processes the fruit,vegetables,dandelions,
clover,honey,or any combination of these ingredients,by
fermentation into wines on a premises located outside of this
state.
2.A nonnative wine manufacturer licensed or permitted
pursuant to laws regulating alcoholic beverages in another
state may apply for and be issued a class “A”wine permit,as
provided in section 123.175,without being a resident of this
state.
3.A nonnative wine manufacturer holding a class “A”wine
permit may sell,or sell at wholesale,in this state,wine
that the nonnative wine manufacturer has itself manufactured
by fermentation on its out-of-state licensed or permitted
premises,provided the wine is properly registered with the
alcohol and tobacco tax and trade bureau of the United States
department of the treasury.Pursuant to section 123.177,such
sales shall only be made to persons holding a class “A”wine
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House File 2780,p.5
permit or to persons holding a retail alcohol license.
4.A nonnative wine manufacturer shall not sell in this
state wine fermented by another manufacturer.
5.A nonnative wine manufacturer may ship wine in closed
containers to individual purchasers within this state by
obtaining a wine direct shipper permit pursuant to section
123.187.
6.A nonnative wine manufacturer that holds a class “A”wine
permit shall be deemed to have consented to the jurisdiction
of the department or any other agency or court in this state
concerning enforcement of this chapter and any related laws,
rules,or regulations.A permit holder shall allow the
department to perform an audit of manufacturing and sales
records upon request.
7.A violation of this section shall subject the permit
holder to the general penalties provided in this chapter and
shall constitute grounds for imposition of a civil penalty or
suspension or revocation of the permit pursuant to section
123.39.
Sec.10.Section 123.177,subsection 2,Code 2026,is
amended to read as follows:
2.A class “A”wine permit holder may purchase and resell
only those brands of wine brought into the state which are
manufactured,fermented,bottled,shipped,or imported by a
person holding a certificate of compliance issued pursuant to
section 123.180.
Sec.11.Section 123.179,Code 2026,is amended to read as
follows:
123.179 Wine permit and license fees.
1.The annual permit fee for a class “A”wine permit that
is not issued to a native wine manufacturer is seven hundred
fifty dollars,except the annual permit fee for a class “A”
wine permit issued to a native wine manufacturer as provided in
section 123.176 or a nonnative wine manufacturer as provided in
section 123.176A is one hundred dollars .
2.The annual permit fee for a class “A”wine permit issued
to a native wine manufacturer is one hundred dollars.
3.2.The fee for a charity beer,spirits,and wine special
event license is one hundred dollars.
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House File 2780,p.6
4.3.The fee for a wine auction permit is one hundred
dollars.
Sec.12.Section 123.180,subsections 1,2,and 3,Code
2026,are amended to read as follows:
1.A manufacturer,vintner,bottler,importer,or vendor
of wine,or an agent thereof,desiring to ship,sell,or have
wine brought into this state for sale at wholesale resale by
a class “A”wine permittee shall first make application for
and shall be issued a vintner’s certificate of compliance by
the director for that purpose.The vintner’s certificate
of compliance shall expire at the end of one year from the
date of issuance and shall be renewed for a like period upon
application to the director unless otherwise revoked for
cause.Each completed application for a vintner’s certificate
of compliance or renewal of a certificate shall be submitted
electronically,or in a manner prescribed by the director,and
shall be accompanied by a fee of two hundred dollars payable
to the department.Each holder of a vintner’s certificate
of compliance shall furnish the information required by the
director in the form the director requires.A vintner or wine
bottler whose plant is located in Iowa and who otherwise holds
a class “A”wine permit to sell wine at wholesale is exempt
from the fee,but not the other terms and conditions.The
holder of a vintner’s certificate of compliance may also hold a
class “A”wine permit.
2.At the time of applying for a vintner’s certificate
of compliance,each applicant shall file with the department
electronically,or in a manner prescribed by the director,a
list of all class “A”wine permittees with whom it intends
to do business.The listing of class “A”wine permittees as
filed with the department shall be amended by the holder of
the certificate of compliance as necessary to keep the listing
current with the department.
3.a.Except as provided in paragraph “b”,all class
“A”wine permit holders shall sell only those brands of
wine brought into the state which are manufactured,bottled,
fermented,shipped,or imported by a person holding a
current vintner’s certificate of compliance.An employee or
agent working for or representing the holder of a vintner’s
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House File 2780,p.7
certificate of compliance within this state shall register the
employee’s or agent’s name and address with the department
electronically,or register in a manner prescribed by the
director.These names and addresses shall be filed with the
department’s copy of the certificate of compliance issued
except that this provision does not require the listing of
those persons who are employed on the premises of a bottling
plant,or winery where wine is manufactured,fermented,
or bottled in Iowa or the listing of those persons who are
thereafter engaged in the transporting of the wine.
b.A class “A”wine permit holder may sell brands of wine
brought into the state which are not manufactured,bottled,
fermented,shipped,or imported by a person holding a current
vintner’s certificate of compliance if the brands of wine were
purchased from a private sale pursuant to section 123.171,
subsection 4 ,or if authorized by the laws of another state.
Sec.13.NEW SECTION .414.34 Social districts.
1.As used in this section:
a.“Marked container”means a nonglass container that
identifies the retail alcohol licensee providing the alcoholic
liquor,beer,or wine in the container to the consumer within
the social district.
b.“Retail alcohol licensee”means the holder of a class “C”
or special class “C”license issued under section 123.30.
c.“Social district”means a defined area in which the
possession and consumption of alcoholic liquor,wine,and
beer is allowed on public streets,sidewalks,and other
public spaces within the boundaries of the district that are
consistent with this section.
2.A city may define an area by ordinance that designates a
social district for use by retail alcohol licensees.
3.An ordinance adopted pursuant to this section must
include all of the following:
a.A legal description or map of the district.
b.The days and hours the possession and consumption of
alcoholic liquor,wine,and beer are permitted on public
streets,sidewalks,and other public places within the
district.
c.Requirements for marked container use and identification.
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House File 2780,p.8
d.Participation requirements for retail alcohol licensees
within the district.
e.Enforcement provisions and penalties for violations.
f.Procedures for the revocation or suspension of all of the
following:
(1)The participation of retail alcohol licensees for
violations.
(2)The social district itself for public safety concerns
or other matters.
4.An ordinance adopted by a city shall not be construed to
authorize any of the following:
a.Consumption of an alcoholic beverage in a motor vehicle
or on the public streets,sidewalks,and other public spaces
during the times when the ordinance is not in effect.
b.Possession or consumption of an alcoholic beverage in
a manner contrary to the provisions of chapter 123 except as
otherwise provided by an ordinance adopted pursuant to this
section.
c.A prohibition on any participating retail alcohol
licensee or other establishment located within the social
district from denying entry to the premises of the licensee or
establishment to persons who possess alcoholic beverages from
other participating retail alcohol licensees.
______________________________
PAT GRASSLEY
Speaker of the House
______________________________
AMY SINCLAIR
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2780,Ninety-first General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________,2026 ______________________________
KIM REYNOLDS
Governor
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