SACRAMENTO, Calif. — Downtowns throughout California have struggled to return to pre-pandemic levels as remote work means fewer people visiting brick-and-mortar bars and restaurants.
The downturn in downtowns has forced businesses and lawmakers to think creatively about how to incentivize people to come back.
Few know that struggle more than Bob Simpson who owns several Sacramento bars in the downtown area like Malt & Mash Irish Pub and Social Nightclub.
“We don’t see as much early business because it used to be there was happy hour, there was lunchtime business, and you don’t see that as much," said Simpson.
One creative solution, backed by Simpson, has enjoyed initial success in San Francisco and will soon be expanded statewide: entertainment zones allowing people to open carry alcoholic drinks.
The zones will allow brick-and-mortar bars to sell alcohol which people can carry with them throughout the designated zone. Under the new law, a zone can only be active when a special event is being held such as a farmer's market or art show.
“The landscape has kind of changed where you don't have as many people down there with stay-at-home work,” said Simpson. ”This is just another tool that cities have to increase businesses for the downtown.”
City leaders in Sacramento are looking to bring the zones to the city once a new state law goes into effect in 2025, according to city officials.
“Entertainment zones provide opportunities to further enhance Sacramento’s nighttime and social economy,” said Jennifer Singer with the city manager's office. “...Entertainment Zones could play a pivotal role in creating a culturally vibrant city. Staff is beginning the process to develop and implement these zones at specific locations in Sacramento.”
It would be up to local leaders to set the exact parameters of each potential zone. They would need to work with law enforcement partners to establish rules for where a zone could be and the hours it can operate, amongst other provisions.
Scott Ford, the deputy director of the Downtown Sacramento Partnership, believes the new zones would greatly impact the downtown area. He sees a potential zone being set up after Kings games and other events at the Golden 1 Center.
He adds data obtained by the partnership shows foot traffic is down in the downtown area to 83% of retail foot traffic since the pandemic. Every other area in the county has a higher recovery.
“What I envision here is the ability to really extend the borders from some of our great retail establishments,” Ford said. “...There’s nothing quite like enjoying a great craft cocktail or glass of Northern California wine or a locally brewed beer in a great outdoor setting."
The first entertainment zone in the state was established on San Francisco's Front Street and has hosted two events; an Oktoberfest in September and a Halloween celebration.
Ben Van Houten, the director of nightlife initiatives at the San Francisco Office of Economic and Work Force Development, says the initial events were a success.
“Both of those events saw roughly 8,000 people a piece,” Van Houten said. “And all three businesses on that block saw dramatic economic benefits.”
While providing a monetary boost to the businesses, Van Houten also highlighted the benefits of the zones in giving people a chance to experience live music, cultural events and performances.
The city has four more zones going through the planning process that Van Houten expects to all open up by the end of the year.
However, not everyone agrees with extending the borders, as alcohol control groups like Alcohol Justice believe the entertainment zones will lead to more problems than they're worth.
“It’s hard to envision entertainment zones not being a problem for local communities,” said Raul Verdugo, the director of advocacy for Alcohol Justice.
Alcohol Justice opposed the new law as it was going through the legislative process. Verdugo points out that expanding a provision from San Francisco that’s only been active since September to the entire state is “premature."
Verdugo adds not enough consideration for potential issues has been utilized “to factor out how best to move forward.”
When it comes to these concerns, Ford points out that cities like Sacramento will have the final say in all the regulations for setting up a zone and it will be a more measured process.
“It allows for proper oversight and management of the process, make sure staffing is appropriate, that the infrastructure to define what this entertainment zone is, to make sure there isn’t alcohol crossing outside of those boundaries,” Ford said.
For bar owners like Simpson, the potential for the zones means “extended hours, expanded tax base and expanded employment,” to help the city recover from the loss of state workers from the pandemic.
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