Council approves introduction of entertainment-zone ordinance with annual reviews
July 14, 2026 | Chico, Butte County, California
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The Chico City Council on July 14 voted to introduce an ordinance to establish two entertainment zones where adults 21 and older may consume alcoholic beverages purchased from participating licensed businesses within a designated public-right-of-way.
Assistant City Manager Art Gustafson told the council the zones are enabled by state law (SB 969, enacted September 2024) and aim to boost downtown and Merriam Park economic activity by encouraging pedestrian foot traffic. Gustafson described wristbands or single-use approved vessels, vendor signage, ID checks and boundaries as part of the voluntary program for participating businesses.
Public comment included both support and opposition. Barbara Hansen urged the council to vote no, citing local alcohol-related health statistics and concerns about increased consumption. Business and neighborhood representatives, including the Chico Chamber of Commerce and Merriam Park stakeholders, supported the measure as an economic-development tool with safeguards. "This ordinance isn't about alcohol," Chico Chamber CEO Molly Copta said. "It's about economic opportunity."
Council members debated zone size, environmental and waste concerns (recyclable vessels), campus adjacency and review cadence. Council Member O'Brien requested annual reviews at first; Council Member Holly moved to amend the staff proposal from a biennial to an annual review. The council approved the introduction and the annual-review amendment and will consider the ordinance at second reading Aug. 18; if adopted it would take effect 30 days later.
The ordinance language adds a new chapter 5.45 to the Chico Municipal Code and amends section 9.30.040 to allow consumption in designated areas pursuant to SB 969.
Next procedural step: second reading Aug. 18, 2026.
Assistant City Manager Art Gustafson told the council the zones are enabled by state law (SB 969, enacted September 2024) and aim to boost downtown and Merriam Park economic activity by encouraging pedestrian foot traffic. Gustafson described wristbands or single-use approved vessels, vendor signage, ID checks and boundaries as part of the voluntary program for participating businesses.
Public comment included both support and opposition. Barbara Hansen urged the council to vote no, citing local alcohol-related health statistics and concerns about increased consumption. Business and neighborhood representatives, including the Chico Chamber of Commerce and Merriam Park stakeholders, supported the measure as an economic-development tool with safeguards. "This ordinance isn't about alcohol," Chico Chamber CEO Molly Copta said. "It's about economic opportunity."
Council members debated zone size, environmental and waste concerns (recyclable vessels), campus adjacency and review cadence. Council Member O'Brien requested annual reviews at first; Council Member Holly moved to amend the staff proposal from a biennial to an annual review. The council approved the introduction and the annual-review amendment and will consider the ordinance at second reading Aug. 18; if adopted it would take effect 30 days later.
The ordinance language adds a new chapter 5.45 to the Chico Municipal Code and amends section 9.30.040 to allow consumption in designated areas pursuant to SB 969.
Next procedural step: second reading Aug. 18, 2026.
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