TO: Mayor and Members of City Council
THRU: Kelly Olivera - Assistant City Manager
FROM: Christopher Cauley, Economic & Community Development Director
Taurus Freeman, Assistant Economic & Community Development Director
DATE: June 5, 2023
RE:
Title
Fayetteville’s Downtown Social District Progress Report
end
COUNCIL DISTRICT(S):
Council District(s)
District 2
b
Relationship To Strategic Plan:
Goal II: The City of Fayetteville will have a Responsive City Government supporting a diverse and viable economy.
• Objective 2.2: To invest in community places to ensure revitalization and increase the quality of life
Goal IV: Desirable Place to Live, Work and Recreate
• Objective 4.2: To enhance diverse recreation, leisure, and cultural opportunities
Executive Summary:
On November 14, 2022, at a Regular meeting, the City Council approved the creation of a temporary Downtown Social District for 12 months to operate Monday through Saturday from 12 p.m. to 10 p.m. and Sunday from 10 a.m. to 10 p.m. The District was effective on December 1, 2022.
Cool Spring Downtown District, Inc. (CSDD) will present a progress report on the impacts on both downtown businesses and City’s Departments. In addition, the City Council will direct Staff to rescind the pilot, continue until December 31st, or create an ordinance amendment for a permanent Social District.
Background:
The Board of the CSDD requested City Council’s consideration to establish a social district as authorized by legislation enacted by the North Carolina General Assembly in 2021. This was recommended as an Action Item in the Downtown Urban Design Plan adopted by City Council on February 24, 2020, which called for adopting an Entertainment Ordinance to better regulate open containers, amplified sound, retail sidewalk sales, etc., within the Municipal Service District.
Social districts have been implemented in various towns and cities across the state since legislation was enacted, allowing municipalities to designate areas where alcoholic beverages can be purchased from a licensed ABC permittee and then taken outdoors.
A social district is a defined outdoor area in which a person may consume alcoholic beverages sold by an ABC permittee. This term does not include the ABC permittee's licensed premises or an extended area allowed under G.S. 18B-904(h). A city may adopt an ordinance designating an area within the municipal limits as a social district under G.S. 160A-205.4. A social district must be maintained in a manner that protects the health and safety of the general public (G.S. 18B-904.1(c)(2)).
Issues/Analysis:
Per General Statue, a city designating a social district is required to establish management and maintenance plans for the social district and post these plans, along with a drawing of the boundaries and the applicable days and hours of the social district, on the city’s website.
Social District Requirements
The social district must meet the following requirements under North Carolina law:
• An alcoholic beverage purchased for consumption in the social district must:
o be consumed in the social district.
o be disposed of before exiting the social district unless entering a business within the social district that allows alcoholic beverages to be brought inside the business.
ABC Permittee Requirements
A permittee located and selling alcoholic beverages within the social district must meet the following requirements under North Carolina law:
• The permittee must:
o only sell and serve alcoholic beverages on its licensed premises.
o only sell alcoholic beverages for consumption in a container that meets all of the following requirements:
§ The container clearly identifies the permittee from which the alcoholic beverage was purchased.
§ The container clearly displays a logo or some other mark that is unique to the social district in which it will be consumed.
§ The container is not comprised of glass.
§ The container displays, in no less than 12-point font, the statement, "Drink Responsibly - Be 21."
§ The container shall not hold more than 16 fluid ounces.
Patron Requirements
The possession and consumption of an alcoholic beverage in a social district is subject to all of the following requirements of North Carolina law:
• Only alcoholic beverages purchased from a permittee located in the social district may be possessed and consumed.
• Alcoholic beverages must:
o only be in designated social district containers.
o only be possessed and consumed during the days and hours set by the City:
• A single patron cannot be sold or delivered alcoholic beverage drinks in excess of:
o Not more than two alcoholic beverage drinks at one time if any of the following:
§ A malt beverage, unfortified wine, fortified wine.
§ Not more than one alcoholic beverage at one time if an alcoholic beverage drink is a mixed beverage or contains spirituous liquor.
• A person must dispose of any alcoholic beverage before exiting the social district unless entering a business within the social district that allows alcoholic beverages to be brought inside the business.
Budget Impact:
The impact to the City’s budget has been negligible as Solid Waste, Parks, Recreation and Maintenance, and the Fayetteville Police Department have reported little to no discernable impact from the Social District.
Options:
1. Continue the Social District pilot until December 31st;
2. Direct staff to create an ordinance amendment for a permanent Social District; or
3. Direct staff to rescind the Social District pilot at a Regular Meeting in August.
Recommended Action:
Staff recommends that City Council move for consensus allowing for the continuation of the Social District pilot program to December 31st, 2023.
Attachments:
• Social District Map
• Social District Update Presentation