HEARING ON ORDINANCE ESTABLISHING A SOCIAL (SIP AND STROLL) DISTRICT
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 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:
- Establish a maximum length of multi-day events;
- Establish for specific requirements for reoccurring frequently events with limits on days and times of operations;
- Limit the total number of events in a year;
- 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.
- 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. - 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. - Do not approve the attached ordinance.
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.