Social district statewide expansion on hold despite Senate passage

Anoka popped the cork on its third year of its social district this week, letting people sip booze and stroll through a business district.

The buzz

Social districts expanding:

There’s a buzz about social districts across Minnesota, and Shakopee is preparing to be second to do it.

Meanwhile, there's a political battle over whether to expand social districts statewide.

It’s still a foamy situation even though the Senate passed a bill allowing statewide expansion.

Cities like Minneapolis and St. Cloud want to do it, but it might just be Anoka and Shakopee for a while longer.

Several blocks of Anoka businesses get a boost from the city’s recent social district implementation.

Martin Zellar singing Neil Diamond could do the same for downtown Shakopee, but these businesses are hoping a social district delivers a more consistent crowd.

So following in Anoka’s footsteps with the social district concept could be huge.

"The dream is that it would just bring a lot of people downtown to be able to just not only support us and the other small businesses down here but just to bring a big community vibe in," said Maddie Sullwold, of Shakopee Brewhall.

And the increased foot traffic could also be a boon for newer businesses popping up near Canterbury Park.

"Ultimately, we benefit," said Badger Hill Brewing CEO Chris Cole. "We've seen it already with the other restaurants as they open. The more people that are coming to our community is better for all of us."

Legislature's boundaries

Second of two:

Shakopee is on track to be the second Minnesota city to offer social districts after getting legislative approval last year.

The law sets guardrails for cities — forcing them to choose specific boundaries, allowing only certain containers, and letting businesses opt out.

But as Anoka starts its third year with a social district and celebrates its success, legislators are hearing from other cities hoping to breathe new life into business districts.

"Small towns in Greater Minnesota need help economically developing our downtowns and this is something that's going to help with that too," said Sen. Aric Putnam, (DFL-St. Cloud), who authored the statewide expansion bill.

Shakopee is preparing for two districts — one in downtown and another around Canterbury Park.

Just saying no?

Stopping after two:

But even though the Senate has approved a statewide spread for social districts, the state House isn’t quite ready.

Some representatives don’t want to see alcohol everywhere, some worry about the impact on law enforcement, and some don’t want competition from neighboring cities — a concern Shakopee’s mayor doesn’t share.

"I think different cities have different things, different uniqueness, and it's going to be up to the individual that's going to wherever they're going," said Mayor Matt Lehman.

What's next:

In a social district, you could carry a beer down the street to other businesses that opt in, but that’s still illegal in Shakopee until Sept. 1.

Stillwater also got approval to start this year, but the mayor tells us they’re not planning to do it just yet, mostly because their downtown is already thriving.

Other cities will be watching the state House to find out their fates.

PoliticsAnoka