City of Chico Entertainment Zone Ordinance
Update: July 15, 2026
The Chico City Council unanimously approved the first reading of the proposed Entertainment Zone Ordinance on July 14, 2026, marking an important milestone toward implementation.
The ordinance will return to the City Council for a second reading and final consideration on August 18, 2026. If approved, it is expected to become effective in mid-September.
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.
More Than Just Alcohol
While conversations surrounding the ordinance often focus on alcohol, the Chico Chamber's support has always been centered on something much broader: economic opportunity.
The proposed Entertainment Zone is another tool to encourage residents and visitors to spend more time enjoying Chico's commercial districts—shopping, dining, attending events, and supporting locally owned businesses. By creating more vibrant, walkable destinations, the ordinance has the potential to strengthen Chico's economy and support the businesses that make our community unique.
The Chamber's Role
Over the past six months, the Chico Chamber has:
- Met regularly with City staff throughout development of the ordinance.
- Researched Senate Bill 969 and Entertainment Zone best practices.
- Connected with communities that have implemented or are considering Entertainment Zones.
- Engaged directly with businesses located within the proposed districts.
- Shared information and gathered feedback from members, stakeholders, and the community.
Our role is to champion initiatives that strengthen Chico's business community while encouraging thoughtful implementation and continued community dialogue.
We'll continue updating this page as the ordinance moves through the adoption process.
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.