As Charlotte considers alcohol social districts, here’s how it’s going for other NC cities

UPDATE: This story, published May 2, was updated May 3 to show the city staff’s update on creating social districts in Charlotte.

As Charlotte considers creating “social districts” where people can openly drink alcohol in outdoor spaces, several North Carolina cities already are finding it boosts business.

In September, Gov. Roy Cooper signed the social districts bill allowing cities and counties to define outdoor spaces where people can legally drink alcoholic beverages bought from an ABC permitted business.

So far, Greensboro, Kannapolis, Monroe, Newton and Norwood have registered social districts with the state ABC Commission, agency spokesman Jeff Strickland said. The commission regulates all alcohol sales statewide. Social districts are required to be registered with the state.

Other municipalities have approved or are considering social districts, including: Albemarle, Cornelius, Hickory, High Point, New Bern, Salisbury, Sylva, Waxhaw, Wilmington and Winston-Salem.

Some people also want to see Charlotte on the list.

Social districts can help increase foot traffic for local businesses by creating destinations where people go to eat, drink and gather, Charlotte city councilman Larken Egleston recently told The Charlotte Observer.

He said the districts also are good for marketing and branding as “entertainment districts” to attract new customers — locals and visitors alike. “Other cities in North Carolina have already had some success with it,” Egleston said. “I just don’t see a reason why we wouldn’t give it a try.”

The rules of social districts

While municipalities and counties can set their own social district rules, such as days of the week, some regulations are mandated by the state. That includes:

▪ Social districts are set up with clear signs along streets and parks in defined areas.

▪ Bars and restaurants must provide social district labeled cups.

▪ Alcoholic drinks must be purchased from ABC-permitted businesses within the social district.

▪ People cannot take a drink into another ABC-permitted business.

Kannapolis was the first with drinks

The state’s first social district was established Oct. 1 in Kannapolis, northeast of Charlotte, less than a month after Gov. Roy Cooper signed the bill into law.

Kannapolis called the new site the West Avenue District. The city’s revitalized downtown area added outdoor dining areas, and the social district allows people to sit outdoors with an alcoholic beverage and enjoy a meal, Kannapolis City Manager Mike Legg said in a statement to The Charlotte Observer.

Old Armor Beer Company co-owner Kyle Lingafelt said he’s seen a boost in business since the district began, especially when the weather’s nice.

The West Avenue brewery in the downtown area opened two years ago just before the pandemic goes through about 4,000 specially marked plastic social district cups a week. “People come in from out of town to bring friends here, and it’s become a destination spot,” Lingafelt said.

What’s next in Kannapolis

The city has not tracked the impact on businesses, however, Lingafelt said he’s seen a noticeable uptick in business from people coming from Charlotte.

Downtown Kannapolis with its park and outdoor seating is ideal for a social district, which runs about five blocks, he said, adding, “I think this is going to work and it really has taken off.”

Lingafelt said the downtown businesses, along with police and city, are considering forming a social district board to help review guidelines and maintain the rules.

Here’s how the social district works in Kannapolis:

▪ ABC permitted establishments can only serve two beers/wine drinks or one liquor drink to one patron at a time.

▪ Drinks are allowed in the district from 10 a.m. to midnight Monday through Saturday and noon to midnight Sunday.

▪ People cannot take drinks into other downtown buildings or a vehicle.

▪ Drinks must be less than 16 ounces.

Dalton Espaillat, CEO of Raydal Hospitality, which includes the restaurant Sabor in Kannapolis called the new district “a blessing for us.”

“I would encourage it to be implemented in Charlotte,” he said, including NoDa, where he has other restaurant locations.

So what about Charlotte?

Areas within Charlotte that could be considered for social districts could include the Plaza Midwood and NoDa neighborhoods, pockets of uptown and South End, councilman Egleston said.

Such districts can help businesses after navigating COVID, said Egleston, calling the pandemic nearly “catastrophic” for the hospitality industry. That sector employs one in nine people in Charlotte, he said.

He’d like to see at least one or two social districts tested in Charlotte, using best practices learned from other municipalities.

Attorney Russell Ferguson with the Plaza Midwood Merchants Association and Dish restaurant partner, also would like to get a program started in Charlotte, “and the sooner, the better.”

“It’s a big part of activating the pedestrian network that we have,” he said.

Social districts would give small businesses affected by the COVID pandemic another tool to get back on their feet, Ferguson said. During the pandemic, Charlotte established a StreetEats Program that extended outdoor dining in designated areas throughout the city.

“I think people are safer walking with a beer in hand than their cell phone,” Ferguson said. “If Newton and smaller towns can do it, I think it’s more advantageous to say Charlotte can do it.”

City staffers studying the issue updated Mayor Vi Lyles and City Council with its progress in a memo last week.

“Since social districts require policy adoption, an amendment to the ordinance, a signage plan, a management and maintenance plan, and registering with the state – a pilot is not recommended,” the group said in a document emailed to The Charlotte Observer from the city on Tuesday. “This process is anticipated to take 3 to 5 months.”

Staff studied Kannapolis and Greensboro social districts, outlining steps to implement social districts in Charlotte:

▪ Staff write and Council adopt policy allowing social districts meeting specific location criteria yet to be defined.

▪ Staff create procedures for business groups to apply for social district status and pay fees. Plus, show proof of community support from nearby property owners.

▪ Council will approve social districts “on a rolling basis, similar to the rezoning calendar.”

The city also is exploring what would cause a social district permit to be revoked, according to the document.

“This is not something we’d go into haphazardly and didn’t put safety at the forefront,” Egleston said.

Cornelius plans to extend its social district

In April, Cornelius commissioners approved extending their social district — dubbed Lake Norman Social District — after a test run during its St. Patrick’s Day festival.

Deputy Town Manager Wayne Herron, speaking at the commission’s April 18 meeting, said he expects to see more requests for social districts in other parts of the town just north of Charlotte.

Cornelius councilman Denis Bilodeau agreed, saying at the meeting that a social district “matches well to the longer-term vision of an arts district as new businesses open and boundaries may be extended.”

“As long as it’s run in safe manner, then I think it’s a great economic driver for towns like us,” Cornelius Town Manager Andrew Grant told the Observer. “This district will attract even more people, like a destination spot.”

The district is underway in Greensboro

Greensboro, about 90 miles northeast of Charlotte with a population over 269,000, launched its social district March 1.

Branded the BORO (Border of Refreshments Outdoors), it covers the downtown area with 25 bars and restaurants participating, according to the city. There are 11 non-ABC permitted businesses that welcome outside drinks.

Greensboro staff created its social district after meetings with officials in other municipalities in Alabama and Minnesota, where there’ve been social districts for up to seven years, said Andrea Harrell, senior assistant city attorney.

The police department hasn’t reported any social district violations, such as public intoxication, Harrell said.

At Scuppernong Books on South Elm Street, co-owner Brian Lampkin called it “unremarkable” so far. The independent bookseller also sells wine and beer. He said Scuppernong see about five of the specially marked social district cups go out a week, “and that would be a lot.”

But he thinks the social district could be beneficial during festivals and other downtown events. “Adults can make that kind of decision and handle it responsibly,” Lampkin said.

Here’s how the district works in Greensboro:

▪ Drinks are allowed in the district from noon to 9 p.m. daily.

▪ Check to see if a retailer allows BORO drinks before entering the establishment. Look for the BORO sticker at the door.

Hoping to increase business in Monroe

Monroe, south of Charlotte in Union County with a population over 35,000, expects to start its downtown social district likely by the end of May, Downtown Monroe Director Matt Black said. Businesses are waiting for cups to arrive.

Black said the social district will be a tourist draw, allowing people to carry a drink while they shop, and advantageous to downtown events like pub crawls, too.

The Monroe Social District will run the entire business district and includes eight ABC-permitted businesses with several more opening soon, Black said. He said the majority of non-ABC permitted businesses also plan to participate.

“Everyone in the downtown district could possibly participate,” Black said. “If police find it’s hard to monitor or control, we’ll scale it down.”

Carley Englander, co-owner of East Frank Superette and Kitchen at 209 E. Franklin St. said the plan allows people to grab a beer or wine and sit in the park or on a street bench. “We know that it will increase the number of people coming in because they won’t be stuck in one place,” she said.

Business owners in other places with social districts say tourists participate more than locals once the novelty wears off, Englander said, but she’s hopeful the initial $500 investment in cups will pay off.

“I feel like it’s going to be good for this town,” she said.

Here’s how the social district works in Monroe:

▪ Hours will be daily : 8 a.m. to midnight Monday through Saturday and 10 a.m. to midnight Sunday.

▪ Non-slip sidewalk decals will be used along the social district perimeter.

‘So far, so good’ in Newton

Newton, about 40 miles northwest of Charlotte with a population of over 13,000, established its social district in December. The district covers sidewalks along about five blocks and includes the courthouse square.

Newton Police Major Timothy Hayes said “so far, so good.” He said there’s always potential for people to break the rules but business owners are doing well policing themselves and there haven’t been any issues or a need to beef up staffing downtown.

While Newton Social District benefits about eight ABC permitted businesses, it also creates a casual, relaxed vibe for other businesses, Downtown Newton Main Street Director Mary Yount said. “It’s really about creating a walkable and inviting social downtown atmosphere,” she said.

Jeff Allen owns Novel Taproom. He’s seeing the district’s impact as the weather is warming up, especially on weekends, and now that events like Thursday music series are returning.

Allen typically sees about 200 specially marked cups go out in a weekend, and expects as many as 1,000 during music series night.

“It’s just very freeing,” he said of people being allowed to carry a drink and walk around downtown.

Social districts also make for good marketing tool for businesses and cities to attract prospective businesses, according to Allen. He said there haven’t been any problems, just “education” of the law.

“It’s growing. People are still learning about it. It’s just been all positive,” Allen said.

Here’s how the social district works in Newton:

▪ It’s open three days only: 5-11 p.m. Thursdays and Fridays and noon to 11 p.m. Saturdays.

▪ For businesses that do not hold ABC permits look for window stickers to allow patrons to carry drinks inside.

Even tiny Norwood gets in on the action

Norwood, about 45 miles east of Charlotte with a population over 2,200 people, approved its social district along a portion of Main Street in December. The district currently has one ABC permitted businesses, Mr. Tequila Mexican Restaurant.

But Town Administrator Scott Howard said a sushi restaurant is opening any day now, and he expects the social district will lure more businesses to Norwood as a “true destination place.”

“It’s a very walkable downtown and we thought the social district was a good fit,” Howard said.

And, as part of the downtown revitalization plan, a children’s play plaza will provide seating for parents, who can now take drinks after dinner outside.

“(The district) gets everyone outside and builds the community and connection,” Howard said. “We feel confident it’s going to be a positive.”

Here’s how the social district works in Norwood:

▪ Drinks are allowed in the district from 10 a.m. to midnight daily.

This story was originally published May 2, 2022 at 6:10 AM.