BY DEBBIE PAGE

The buzz around social districts has been building over the past several years across North Carolina, and the Town of Troutman is in the beginning stages of possibly establishing one in its small downtown to stimulate business growth.

Town Manager Ron Wyatt began last week’s community conversation about social districts by stating that neither he nor the staff or the Town Council are pushing for or against one in Troutman. The intent, Wyatt said, is to gather information and gauge business and community interest in this potential downtown economic driver.

Wyatt made it clear, however, that if a social district is approved by council, it would not be managed by the town. Instead, a nonprofit would takes on the establishment and operation of the social district, guided by the town’s ordinances and rules.

Current regulations specify alcohol cannot be consumed on town property unless it is at a town-sponsored event. If the council chooses to create a social district, staff and council would review existing ordinances and make appropriate changes.

Wyatt said most of the feedback that he has received since the idea was floated at recent town council meetings is that community members do not want ESC Park or the Depot included in a social district because children and youth frequent those areas.

Wyatt noted that Party in the Park is a special situation that occurs only two or three nights a year, is announced well ahead of time, and can be avoided by parents on those few occasions.

WHAT IS A SOCIAL DISTRICT?

According to the N.C. Retail Merchants Association, state law defines a social district as an outdoor area in which a person may consume alcoholic beverages sold by an ABC permitted bar, brewery or restaurant.

Social districts must be clearly defined and post signage in conspicuous locations indicating:

♦ The area included in the social district.

♦ The days and hours during which alcoholic beverages can be consumed in the social district.

♦ The telephone number for the ALE Division and Local Law Enforcement with jurisdiction over the social district.

♦ A clear statement that an alcoholic beverage purchased for consumption in a social district shall only be consumed within the social district and be disposed of before the person possessing the alcoholic beverage exits the social district unless the person is re-entering the licensed ABC premises where the alcoholic beverage was purchased.

Social districts are only allowed to operate during hours defined under G.S. 18B-1004: from 7 a.m. until 2 a.m. Monday through Saturday and 12 noon until 2 a.m. on Sunday. If the local government has allowed for earlier Sunday sales, a social district may operate beginning at 10 a.m. on Sunday. (G.S. 18B-904.1(c)(1)).

A city or county 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 or county’s website.

A social district must also be maintained in a manner that protects the health and safety of the general public.

Before a social district can become operational, a city or county must submit to the N.C. Alcoholic Beverage Control Commission a detailed map of the social district with the boundaries clearly marked and the days and hours during which alcoholic beverages can be consumed.

SOCIAL DISTRICT HISTORY

Troutman Mayor Teross Young invited N.C. Retail Association President and General Counsel Andy Ellen to speak at the community meeting. Ellen first gave some history of social districts in North Carolina.

In 2020 business owners from the New Bern and Edenton areas proposed a social district as a way to bring people into the downtown to socialize outdoors and support local businesses during the pandemic. One of the business owners had visited a social district in another state district while on vacation and brought the idea back.

Ellen looked at Michigan and Ohio social district regulations and adopted part of their regulations to the North Carolina version. He met with legislators and helped create the Bring Business Back Downtown bill as an economic shot in the arm, particularly for smaller towns. The districts encourage people to go out to restaurants or bars, get a drink, and sit outside.

After the bill passed the N.C. General Assembly, Kannapolis became the first city to institute the social district one week after Gov. Roy Cooper signed the bill on September 10, 2021.

SOCIAL DISTRICTS ACROSS NC

Sixty towns and cities in North Carolina have instituted social districts which local government can design to fit their particular communities and interests.

Each town decides the scope of project, deciding whether streets, parks, areas around churches, and public property are included, as well as what days and times the social district can operate.

Parking decks are left out of social districts in many municipalities because officials feared that people might try to refill their cups from alcohol stashed in their vehicles.

Local businesses can decide whether or not they want to participate in the district. Signs on business indicate whether a person can bring an alcoholic beverage into their shop or whether the business does not participate.

Ellen said that social districts have driven foot traffic into downtown areas. He gave an example of Greensboro experiencing an uptick around the Tanger Performing Arts Center because attendees grab dinner and then will walk to the theater as they finish their drink along the way, The same is true in the area around the Greensboro baseball stadium.

Of the municipalities who have instituted social districts, Ellen noted none have repealed them. At first many feared a Mardi Gras-like atmosphere if social districts were implemented, but that has not been the case, he said.

Generally, Ellen said, most people who frequent a social district will have one or two drinks and there have been no problems with public drunkenness. Law enforcement has seen no increases in violence, drunkenness, or DWI after instituting social districts, he said.

The main result has been an increase in economic development in the area of the social district. Ellen said that in towns that had implemented social districts, traffic was up and new businesses of all kinds were being attracted because of this new foot traffic.

Towns and cities of all sizes, including Cornelius, Statesville, Mooresville, and Lincolnton, have instituted social districts. The Main Street program in North Carolina has supported the initiative.

Ellen said social districts would be great for creating social connections for Troutman newcomers and also for connecting outlying areas to the downtown.

Generally nonprofits are responsible for operating the districts, creating and distributing the social district signage and trash receptacles and designing cup stickers required within the social district.

Each cup must have a sticker with the time and place the alcoholic product was purchased to be legally consumed in the district. People are not allowed to bring in their own cups or refill cups from a purchase.

The ABC Commission does not regulate social districts. The only obligation is to file a map with the ABC Commission of the social district area or areas, the times and days that it operates, and update it if there is expansion or changes. The agency does not issue permits for the social districts.

Ellen said that Greensboro started out with one district and then added a second one. The city also conducted a lot of social media and publicity explaining how social districts work well in advance of the district going into place.

Ellen said that even though the nonprofit is responsible for all signage, decals, and trash receptacles, the liability falls on the alcohol beverage permittee that sells the it, particularly if they over-served someone or served someone under age.

Ellen noted that most municipalities require 16-ounce clear plastic cups marked with stickers with a logo and 12-point minimum text. The permittee purchases the cups from a supplier, though in some towns the nonprofits sell designated cups to the businesses in which to serve “to go” beverages.

Ellen said that the boundaries of a social district are usually indicated by large decals on the sidewalk. The signage was not a huge expense. Private property can be made part of a social district, but any business or property owner within it may choose not to participate.

Ellen said that some towns had a contest to design the district logo. Social district trash cans could be permanent fixtures or simple frames with trash bags that are deployed during district hours and taken up afterwards.

TROUTMAN SPECIFICS

One wrinkle is that some establishments in Troutman are licensed by the ABC Commission to serve only wine and beer, while several others also serve mixed drinks. Patrick Bannon, an owner of Bottles and Taps, which only serves wine and beer, is concerned that someone might bring a cup containing a mixed drink into his establishment, which would violate his ABC license

Ellen said that his business could put a sign on the door saying that cups from other establishments are not allowed in the business. However, Bannon pointed out that he was still responsible if a mixed drink entered his building and would have an extra expense of having someone monitor the door because his bartenders were busy serving customers.

Bannon is very much in favor of the social district, but he is concerned about not risking his ABC permit if a person decides to violate the rules.

Ellen said that Troutman could mandate the disposal of social district cups before entering another establishment that sells alcohol.

Bannon suggested using a different cup for mixed drinks or limiting the social district cups to wine and beer to avoid the problem.

NEXT STEPS

The mayor said he saw a multi-step process to decide if the council and the community want a social district and if so, how will it work? Where would it be? What would it look like? What days and hours would it operate?

Young noted that this was just the first conversation of several as the council, staff, and community continue exploring this possible change.

Ellen suggested that the council’s social district committee, made up of Young and council members Jerry Oxsher and Nick Jaroszynski, visit and talk to towns of a similar size to learn of their processes.

The mayor noted that having the park in one area of town and businesses on the other end and along the way created some challenges. The prospect of the future construction to expand Main Street to four lanes also adds some wrinkles.

Young suggested the town could start with a compact social district area and added that the town may need several iterations to get the social district where the community wants it to be. Ellen agreed, saying that the town could expand or contract the social district map as needed, making sure to notify the ABC Commission of any changes.

Wyatt noted that although Troutman does not have a downtown core like some of the other cities that have instituted social districts, the change could inspire new businesses to come to the area.

Wyatt also said rules could be instituted to protect businesses from any liabilities. One solution might be to make two separate social districts to avoid the properties in between. No one will be forced to participate since the decision is each business owner’s choice.

If the town does decide to institute a district, it’s important to do lots of marketing and communication before hand, Ellen said.

Because the town needs a nonprofit to run the social district, if instituted, Mayor Young said having an organization step up was crucial. April Hudson, secretary of the Troutman Ruritan Club, told the mayor that the 501(c) (3) organization was interested in becoming the social district operators.

Hudson said the club had already set up a subcommittee to start exploring the issue.

The town will be soliciting public opinion in the town’s monthly newsletter. People who have questions or comments can send them to Town Planner Andrew Ventresca at aventresca@troutmannc.gov.

The town will have several more community meetings to discuss the social district process, if they decide to go through with the idea. Once the council understands what business owners and the public wants, they will proceed from there.

Mayor Young said that first and foremost purpose of a social district in Troutman was as an economic development initiative. Young said it was very important, however, to do it in the correct way. He and the town appreciate any community feedback.

“This is in the early stages of our fact-finding decision,” said Young. “Going in, I think some of us were thinking we can quickly do this, but there are a lot of nuances, even in this discussion, that are going to take us a little while to get our bearings on and to make sure the staff is prepared, one way or the other, as to how we would want to do it.