Passed by the Republican-led General Assembly and signed by former Governor Roy Cooper in 2021, social districts allow people to carry open alcoholic beverages beyond the establishments where they purchased them.
The law allows cities and counties to pass ordinances defining the physical district and the days and hours of operation. Alcohol bought from participating establishments may be taken outside and into other participating businesses, but it must remain within the social district. All alcoholic beverages must have a sticker indicating the business they were purchased from and the social district they belong to, and outside beverages are not permitted. As of February, the North Carolina ABC Commission reports 68 registered districts across the state.
Andy Ellen, President and General Counsel of the NC Retail Merchants Association told the Carolina Journal these districts have been very successful so far.
“Social districts have been a strong success in North Carolina as evidenced by the fact that close to seventy municipalities have created social districts in North Carolina and not a single municipality has reversed course and repealed the ordinance creating their social district,” said Ellen. “While social districts are not a silver bullet, social districts help with economic development, drive foot traffic for business activity, and bring people back to downtowns just as Senators Tim Moffitt and Todd Johnson intended when they sponsored the legislation.”
The town of Wendell, in Wake County, created a social district in 2023 which operates from 11:00 am – 10:00 pm Monday through Saturday, and 1:00 – 9:00 pm on Sundays. Town Commissioner Deans Eatman says the district is driving economic activity.
“Since its creation in 2023, Wendell’s social district has been a boom for our downtown with no obvious downsides,” said Eatman. “I believe our social district has boosted economic activity downtown and helped our downtown commercial district become even more of a thriving focal point for our community. I encourage towns and cities of all sizes to adopt social districts to support local economic growth and build a sense of community. Anyone who wants to experience a successful social district in North Carolina is welcome to join me for a drink in downtown Wendell any time.”
Ellen said the concerns over unruly behavior within the districts haven’t materialized.
“While some raised concerns at the municipal level when social districts were being considered of creating a Bourbon Street atmosphere, increased trash and bad behavior, those concerns have simply not come to fruition and both businesses and consumers have acted responsibly in enjoying and taking advantage of social districts.”
The city of Wilmington conducted a pilot program in the month of February over a 10-block span in the Brooklyn Arts District; councilman Luke Wadell said the community response was positive.
“Our Social District pilot program has been a resounding success, bringing more energy, foot traffic, and economic activity to the area,” reported Wadell. “Businesses saw strong sales, residents enjoyed the lively and welcoming atmosphere, and the events remained safe and well-managed. There’s always room to fine-tune things, but the positive response from both business owners and the community shows that this program has real potential. I’m excited to see how we can build on this momentum and continue supporting a vibrant, thriving downtown.”
To register a social district, municipalities must submit to the North Carolina 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.