Entertainment Business Zone Ordinance
Entertainment Zone Ordinance Heads to Chico City Council
The first reading of the Entertainment Zone Ordinance will take place during the Chico City Council meeting on Tuesday, July 14. This marks the first of three required steps in the ordinance adoption process and moves Chico one step closer to establishing Entertainment Zones that support increased foot traffic, local businesses, and vibrant commercial center experiences.
What is an Entertainment Zone?
An Entertainment Zone is a locally approved district that allows customers to buy drinks from participating establishments and enjoy them within the designated area. By encouraging pedestrian activity and extended visits, the zone is intended to boost sales, activate public spaces, and strengthen the local business community.
Increased Foot Traffic & Customer Dwell Time
Allowing patrons to carry beverages within the designated area creates a more walkable, fluid environment. Customers are more likely to:
- Stay longer in the district
- Move between businesses
- Visit multiple establishments in one outing
Longer dwell time correlates strongly with higher per-visit spending and repeat visitation.
Expanded Sales Opportunities
Participating licensees can:
- Sell beverages for consumption beyond the four walls of their premises (within zone rules)
- Capture impulse purchases from passersby
- Benefit from district-wide events and coordinated programming
This creates incremental revenue opportunities, particularly during peak evenings, festivals, and special events.
District Activation & Shared Economic Lift
An Entertainment Zone functions as a collective economic development tool. Benefits include:
- Increased vibrancy and perceived energy in the area
- Greater event hosting flexibility
- Stronger cross-promotion among neighboring businesses
When the district becomes a destination, individual businesses benefit from the aggregated draw of the zone.
Entertainment Zone FAQs
How are boundaries and hours defined?
The City will publish an official map and operating schedule.
Who enforces the rules?
Chico Police Department and California Department of Alcoholic Beverage Contol (ABC)
Can the zone be modified or discontinued?
Yes. The City retains oversight authority.
Does the passage of the Ordinance open the Entertainment Zone?
No. The ordinance authorizes the creation of entertainment zones but does not immediately establish or launch them. Additional planning, public discussion, and formal designation will occur to determine where and how entertainment zones will be implemented.
Check out this guide for more information and FAQs about Entertainment Zones.