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HomeMy WebLinkAboutA035 - Hearing on proposed Ordinance to establish a Social District (Sip & StrollITEM #:35 DATE:09-22-26 DEPT:ADMIN SUBJECT:HEARING ON ORDINANCE ESTABLISHING A SOCIAL (SIP AND STROLL) DISTRICT COUNCIL ACTION FORM BACKGROUND: In the 2026 Legislative Session, the Iowa Legislature adopted changes to Chapters 123 (Alcoholic Beverage Control) and 414 (City Zoning) of Iowa Code. 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. At its meeting on September 8, 2026, the City Council directed staff to proceed with drafting an ordinance establishing a Social District, known locally as a "Sip and Stroll" district. A copy of the proposed ordinance is attached, including the map designating the district boundaries. Once adopted, the City Council would have to authorize by resolution each of the events that would be allowed to occur. The draft ordinance is closely modeled after the ordinances in place in Red Oak and Algona. Additional provisions have been included to describe the materials that must be submitted with an application in order for the activation to proceed. 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. The map attached to this report contains the boundaries of the Sip and Stroll District as directed by the City Council on September 8. When the City Council authorizes the activation of the Sip and Stroll District, open consumption of alcohol in accordance with the ordinance will be permitted within the entire area contained in the map. Staff has worked with Ames Main Street to develop signs marking the district boundary that will be installed on days when it is activated. Ames Main Street will make other efforts to mark the boundary on such days as well. PLANNING AND ZONING COMMISSION: Because the enabling legislation to create a Social District is codified in Chapter 414 of Iowa Code, the creation or modification of a social district must occur in the same 1 manner as a zoning action, including notice, hearing, and Planning & Zoning Commission approval. The Planning and Zoning Commission discussed the prospective ordinance at its meeting on September 16. The Commission discussed the proposed boundary and some of the operational aspects of the proposed ordinance. Staff described the desire of Downtown Ames to include all of the downtown businesses within the boundary and why City property (except parking lots) was excluded from the proposed boundary. A representative of Downtown Ames was present and spoke about the proposal. Staff responded to questions about which types of businesses could sell alcohol, how the street and sidewalk could be utilized, and how businesses may or may not allow for alcohol onto their individual premises. There was some discussion about comparing events where streets are closed and alcohol sales from specified vendors (e.g., RAGBRAI) are permitted compared to the Social District proposal that allows existing bars to sell alcoholic drinks and for patrons to leave the site and stroll through the district. Commission comments related to the boundary focused on the two periphery sites: the credit union at the northwest extent of the district and the extension of the boundary to the south of the railroad tracks along Kellogg. As part of the discussion, the Commission asked if individual event boundaries would be smaller than the overall district. Staff explained that its position was to establish one boundary for all events to create an understandable and repeatable boundary whenever the District is activated. The Commission discussed what types of events would occur and how often. General comments included what types of events and promotions bring people to Downtown combined with concerns regarding public health and alcohol access, nuisances, or safety issues that could be associated with some events. The Commission discussed how many events a year may be appropriate--for example would there be monthly, weekly, or frequently reoccurring events--and how permitting would occur to prioritize or limit events. Some Commissioners supported the structure of the ordinance that allowed the City Council to make case by case decisions while others thought that some clearer expectations about the types or numbers of events in a year could be considered within the ordinance. The Commission first moved to approve the boundary and ordinance as proposed, but the motion failed 3-3. The Commission's second motion was to approve the boundary and ordinance with recommendations that Council establish limits on the number of events and days and hours, but the motion failed 3-3. The Commission then discussed the perspectives of each Commissioner in great detail. The Commissioners discussed in more detail the boundary proposal and the periphery properties compared to including all downtown businesses as proposed. They also discussed limiting permits to one at a time to control and monitor events throughout a year, hours and days of events, and what types of events are appropriate Downtown compared to events that do not have alcohol. The Commission decided to consider separate votes regarding regarding the boundary and ordinance. The Commission's third motion was to approve the boundary as proposed, passing 5 -1 . The Commission's fourth motion was passed 5-1 to approve the ordinance with recommendations that the City Council explore the following limitations within the ordinance: 2 1. Establish a maximum length of multi-day events; 2. Establish for specific requirements for reoccurring frequently events with limits on days and times of operations; 3. Limit the total number of events in a year; 4. Require applications to be for one event at a time It should be noted that Ames Main Street would like to use the new program for Witches' Walk, which occurs on October 8. To do so, it is requested that the City Council suspend the rules in order to read the ordinance a second and third time, and adopt it on September 22. Staff has prepared a Social District application based on the draft ordinance's criteria, which Ames Main Street has completed. Consideration of approval of the activation of the Social District for Witches' Walk event is a separate item on this September 22 agenda. ALTERNATIVES: 1. a. Approve first reading of the attached ordinance establishing the Social District Boundary and the process for its activation. b. Suspend the rules in order to complete the second and third readings and adopt the ordinance. 2. Approve the Planning and Zoning Commission recommendation to approve the boundary, but to consider additional limitations regarding the number of events, frequency, hours and days of operations, and/or permitting process. Under this alternative, the City Council would need to refer this matter back to staff to amend the draft ordinance. In addition, the City Council would have to schedule a special meeting to consider a revised draft ordinance in order to approve the request prior to Witches Walk on October 8. 3. Do not approve the attached ordinance. CITY MANAGER'S RECOMMENDED ACTION: The attached ordinance utilizes a new provision in state law to allow for certain events to include the consumption of alcohol in marked containers on City streets and sidewalks without closing these areas to traffic, as well as the ability to carry that alcohol from one licensed establishment into another. Ames Main Street has requested the ability to utilize the new Social District ordinance for its Witches Walk event on October 8. In order to do so, the City Council must suspend the rules so the ordinance may be approved at the September 22 meeting. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described above. 3 ATTACHMENT(S): Draft Ordinance - Chapter 17A Social Districts.pdf 4 ORDINANCE NO.__________ AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY ENACTING A NEW CHAPTER 17A THEREOF, FOR THE PURPOSE OF ESTABLISHING A SOCIAL DISTRICT FOR THE POSSESSION AND CONSUMPTION OF ALCOHOLIC LIQUOR, WINE, AND BEER WITHIN DESIGNATED PUBLIC STREETS, SIDEWALKS, AND PUBLIC SPACES IN THE CITY OF AMES, IOWA. BE IT ENACTED, by the City Council for the City of Ames, Iowa, that: Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is hereby amended by enacting a new Chapter 17A as follows: “CHAPTER 17A SOCIAL DISTRICTS Sec. 17A.1. Purpose. The purpose of this section is to establish a social district within the City of Ames pursuant to Iowa Code Section 414.34 and to provide reasonable regulations for the possession and consumption of alcoholic liquor, wine, and beer within the district in a manner that protects public health, safety, and welfare. Sec. 17A.2. Definitions. For purposes of this chapter, the following terms shall have the meanings stated below: (1)“Alcoholic beverage” means alcoholic liquor, wine, or beer as those terms are defined in Iowa Code Chapter 123. (2)“Marked container” means a nonglass container that identifies the retail alcohol licensee providing the alcoholic liquor, wine, or beer in the container to the consumer within the social district. (3) “Participating vendor” means a retail alcohol licensee located within the social district that has been approved by the City to participate in the social district and remains in good standing with the City and the Iowa Alcoholic Beverages Division. (4)“Retail Alcohol Licensee” means the holder of a class “C” or special class “C” license issued under Iowa Code section 123.30. (5)“Social district” means the defined area established by this chapter 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, subject to the requirements of this chapter and Iowa Code Chapter 123. Sec. 17A.3. Social District Established. (1)The City hereby establishes the “Ames Social District.” (2)The boundaries of the social district shall be as depicted on the map attached as Exhibit A and incorporated into this chapter by reference. (3)Upon the request of an applicant, the City Council may, by resolution, activate the social district for specific events, dates, and times. A resolution cannot expand the social district beyond the boundaries shown on Exhibit A. (4)The City Council may, by resolution, approve any additional event-specific rules, conditions, signage requirements, vendor requirements, or public safety measures for use of the social district. 5 (5) Nothing in this chapter shall require any participating vendor, nonparticipating vendor, business, property owner, or other establishment within the social district to allow persons possessing alcoholic beverages to enter or remain on its premises. Sec. 17A.4. Social District Activation It shall be the responsibility of the applicant to provide a plan for each proposed activation of the social district. The plan must include: (1) Proposed dates and times for activation of the social district; (2) A list of the vendors requesting approval to participate in the social district activation as participating vendors; (3) A description of the marked container that each participating vendor will use during the social district activation; (4) A plan to ensure the social district boundaries are clearly marked; (5) A plan to ensure the social district rules are followed by those participating in the social district, whether participating vendors or persons purchasing alcohol from participating vendors; (6) A plan to inform businesses and residents within the social district of the proposed activation; (7) Proof that the recognized Main Street Iowa organization designated for downtown has been consulted regarding activation of the social district. (8) Any other information required by the Chief of Police to evaluate the proposed activation, its applicant, and the risks involved with the proposal. The Chief of Police will review each application to activate the social district and provide a recommendation to the City Council concerning activation of the social district and approval of each proposed vendor. In the alternative, City Council may, by its own motion, activate the social district and direct staff to obtain the list of vendors that are requesting approval to participate in the social district activation. Each vendor requesting approval to participate in the social district activation under this alternative must also provide a description of the marked container that vendor will use during the social district activation. Sec. 17A.5. Days and Hours of Operation. (1) The social district shall operate only on the dates and during the hours approved by City Council resolution. (2) Possession or consumption of alcoholic liquor, wine, or beer within the social district is prohibited except during the dates and hours approved by City Council resolution. (3) The City Manager, Police Chief, Fire Chief, or their designees may temporarily suspend operation of the social district, in whole or in part, due to public safety concerns, severe weather, emergency conditions, crowd control concerns, construction, public works activity, or other circumstances affecting public health, safety, or welfare. Sec. 17A.6. Marked Container Requirements. (1) No person shall possess or consume an alcoholic beverage in the social district unless the alcoholic beverage was purchased from a participating vendor and is contained in a marked container meeting the requirements of this section. (2) Each marked container shall: (a) Be nonglass; (b) Identify the participating vendor that sold or provided the alcoholic beverage; 6 (c) Comply with Iowa Code Chapter 123, Iowa Code section 414.34, and any applicable state requirements. (3) Alcoholic beverages may not be brought into the social district from outside the district or from a vendor that has not been approved to participate. (4) A person must dispose of any alcoholic beverage before leaving the social district, entering a motor vehicle, entering an area where alcoholic beverages are prohibited, or entering a business or premises that is not licensed to serve alcoholic beverages. Sec. 17A.7. Participating Vendors. (1) A retail alcohol licensee may participate in the social district only if approved as a participating vendor by City Council resolution. (2) To be eligible, a participating vendor must: (a) Hold a valid class “C” or special class “C” retail alcohol license under Iowa Code Chapter 123; (b) Be authorized by state law to sell alcoholic liquor, wine, or beer for consumption within the social district; (c) Be in good standing with the City and the Iowa Alcoholic Beverages Division; (d) Maintain required dramshop insurance; (e) Use only marked containers approved by the City; (f) Comply with all applicable state and local laws; and (g) Comply with any additional conditions approved by City Council resolution. (3) Approval of participating in the social district is a privilege and may be suspended or revoked as provided in this chapter. Authorized City Officials may suspend or revoke a participating vendor’s approval to participate in the social district for any of the following reasons: (a) Violation of this chapter or violation of Iowa Code Chapter 123 or Iowa Code section 414.34; (b) Sale or service of alcoholic beverages in unmarked or noncompliant containers; (c) Failure to maintain a valid retail alcohol license or required dramshop insurance; (d) Repeated calls for police service, nuisance activity, disorderly conduct, or public safety concerns associated with the participating vendor’s use of the social district; (e) Failure to comply with City-approved conditions of participation; or (f) Any other reason affecting public health, safety, welfare, or orderly operation of the social district. Sec. 17A.8. Rules of Conduct. (1) No person shall possess or consume alcoholic liquor, wine, or beer within the social district except in compliance with this chapter. (2) No person shall possess or consume alcoholic liquor, wine, or beer within the social district unless the beverage is in a marked container from an approved participating vendor. (3) No person shall possess or consume alcoholic liquor, wine, or beer within the social district outside the dates, times, or area approved by City Council resolution. (4) No person shall remove a marked container containing alcoholic liquor, wine, or beer from the social district. (5) No person shall possess or consume alcoholic liquor, wine, or beer in a motor vehicle, on public school property, or in any other location where possession or consumption is prohibited by law. 7 Sec. 17A.9. Enforcement of Penalties. (1) This chapter may be enforced by the Ames Police Department or any other authorized City official. (2) Violation of this chapter shall be a municipal infraction punishable by a penalty of $100 for a person’s first violation thereof and $200 for each repeat violation. Alternatively, violation of this chapter may be charged by a peace officer of the City as a simple misdemeanor. (3) Any violation of Iowa Code Chapter 123 may also be referred for enforcement under state law. (4) Each violation constitutes a separate offense. Sec. 17A.10. No City Liability. The establishment or operation of the social district shall not be construed as creating any duty, liability, or responsibility on the part of the City for the actions of any person, participating vendor, nonparticipating vendor, business, property owner, or event organizer. Sec. 17A.11. State Law Controls. This chapter shall be interpreted in a manner consistent with Iowa Code Chapter 123, Iowa Code section 414.34, and any applicable rules or guidance of the Iowa Alcoholic Beverages Division. If any provision of this chapter conflicts with state law, state law shall control.” Section Two. The map establishing the area and boundaries of the social district, labeled Exhibit A, is attached hereto and hereby incorporated by reference. Section Three. All ordinances, or parts of ordinances, in conflict herewith are hereby repealed to the extent of such conflict, if any. Section Four. This ordinance shall be in full force and effect from and after its passage and publication as required by law. Passed this day of , 2026. _____________________________ ___________________________ John A. Haila, Mayor First Reading: Second Reading: Third Reading: 8 Passed on: I, Renee Hall, City Clerk of the City of Ames, Iowa, hereby certify that the above and foregoing is a true copy of Ordinance No. ______________, passed by the City Council of said City at the meeting held on ______________________and signed by the Mayor on ___________________________, and published in the Ames Tribune on ___________________________. ________________________________ Renee Hall, City Clerk 9 5TH ST ALLA N DR E 2ND ST E 3RD ST E MAIN ST E 5TH ST E 6TH ST SH E R M A N AV E 5TH ST S D U F F AV E Alley S S H E R M A N AV E WA S H I N G T O N AV E S K E L L O G G AV E S W A L N U T AV E MA R K E T AV E S G R A N D AV E CO M M E R C E AV E GR A N D A V E PE A R L E A V E BU R N E T T A V E CL A R K A V E DO U G L A S A V E KE L L O G G A V E GILCHRIST ST DU F F A V E 7TH ST 6TH ST MAIN ST Ames Social District00.10.05 Miles Sip and Stroll Sidewalks Social District (;+,%,7$ 10