Palo Alto is weighing whether to let people carry open alcohol containers on the car-free stretch of Ramona Street, but not everyone along the block is thrilled about the idea. Some downtown business owners have told city officials they are unenthusiastic about the plan, and the city's Economic Development Committee is now considering testing the concept with a handful of pilot events rather than rolling it out all at once.
The proposal would establish an entertainment zone on Ramona between University and Hamilton avenues, where participating businesses could apply for special permits allowing outdoor drinking during designated events, according to Palo Alto Online. The zone would run from noon to 10 p.m. Monday through Saturday and 10 a.m. to 10 p.m. on Sunday, with participating merchants required to use clear cups and stay within those hours, per the same report. The item was scheduled to go before the committee at its Nov. 4 meeting before heading to the full City Council for approval.
That timeline tracks with on-the-ground outreach described by the Palo Alto Daily Post, which reported that council member Keith Reckdahl and Alex Andrade, the city's new economic development manager, met with Ramona Street business owners on Oct. 28 to discuss the proposed zone. Reckdahl said he had hoped for more enthusiasm from merchants, according to the Daily Post's account of the meeting.
Jewelers, Spa and Hotel Raise Objections
Representatives from the Cardinal Hotel, Forest Spa Boutique, De Novo Fine Contemporary Jewelry and Mansoor Fine Jewelers raised concerns about the proposed entertainment zone during the meeting, per the Daily Post. Reckdahl said most of the discomfort expressed about Ramona Street centered on trash, amenities and the street's overall appearance rather than alcohol itself, the outlet's report noted.
Not every merchant on the block is opposed. Guillaume Bienaime and Nancy Coupal voiced support for an entertainment zone that would bring energy to the middle of Ramona Street, according to the same report. Bienaime, who owns The Pro at 541 Ramona St., said the business was not seeking house parties and currently had nothing planned, the Daily Post reported.
Under the framework described by Palo Alto Online, businesses in the zone could obtain event permits allowing outdoor drinking, with beverages sold in clear cups made of neither glass nor metal, and anyone drinking in the zone required to wear a wristband. The proposed zone would cover the sidewalk portion between the Wine Room and Forest Spa Boutique, per the outlet.
A Smaller Test Before Going Further
Given the mixed reaction, council member George Lu and Reckdahl recommended allowing open alcohol containers at three pilot events rather than a full rollout, with those events required to end no later than 9 p.m., according to the Daily Post. Lu said the city should move forward on allowing drinking while addressing business concerns, and added that some experimentation made sense, the outlet reported. Any version of the entertainment zone still needs approval from the Palo Alto City Council.
The idea builds on a similar effort already underway on California Avenue, where the city currently allows public drinking during Thursday live music events. The California Avenue zone has been activated five times, according to Palo Alto Online's November report, and business owners there reported that the public-drinking change either had no impact or increased sales by less than 5%, per a city report cited by the outlet.
Back in March, the Economic Development Committee unanimously endorsed setting up a zone on California Avenue and potentially extending it to the car-free stretch of Ramona Street, Palo Alto Online reported at the time. A separate account from Citizen Portal says that on March 18, the committee unanimously advanced an entertainment-zone ordinance based on Senate Bill 969 to the full City Council and directed staff to conduct outreach with Ramona merchants before any expansion there. The same outlet separately reported that city staff planned to survey businesses and attendees on Aug. 26 to help decide whether the entertainment-zone model should extend to other districts, including Ramona Street.
State Law Opened the Door
The push traces back to Senate Bill 969, which took effect last year, according to the Daily Post, and gives cities more flexibility on outdoor drinking. Bill text from the California Legislative Information site shows the law amends several sections of the state's Business and Professions Code and adds two new ones governing alcohol consumption in designated outdoor zones.
Other California cities have leaned into the concept more aggressively. Sacramento has expanded its program from five entertainment zones to 11, according to the Sacramento City Express, which reported that alcohol there may be carried and consumed only during approved events and within the dates, hours and boundaries set by each permit. Businesses at the first weekend of one Sacramento activation reported a 30% jump in visitors compared with prior weekends, and businesses at the city's 2025 Rainbow Festival reported increased sales over the previous year's event, the outlet noted.
Whether Palo Alto follows Sacramento's broader approach or sticks with a cautious, pilot-sized test on Ramona Street now rests with the City Council, which must sign off on whatever version of the entertainment zone advances next.
