AGENDA REPORT TO : City Council and Members of the Public FROM: At-Large Councilmember Rowena Brown SUBJECT: Town Alive: Economic Activation Zones DATE: November 13, 2025 RECOMMENDATION Adopt The Following Pieces Of Legislation: (A) A RESOLUTION (1) ESTABLISHING ECONOMIC ACTIVATION ZONES UNDER THE TOWN
ALIVE
PROGRAM
TO
SUPPORT
ENTERTAINMENT
ZONES
AND
RESPONSIBLE
ARTIFICIAL
INTELLIGENCE
(AI)
ACTIVATION
ZONES
IN
THE
CITY
OF
OAKLAND,
BRINGING
INNOVATIVE
PROGRAMMING
TO
PUBLIC
AND
COMMUNITY
SPACES;
AND
(2)
AUTHORIZING
THE
CITY
ADMINISTRATOR
TO
AWARD,
NEGOTIATE
AND
EXECUTE
A
GRANT
AGREEMENT
WITH
THE
OAKLAND
FUND
FOR
PUBLIC
INNOVATION
IN
AN
AMOUNT
NOT
TO
EXCEED
ONE
MILLION
DOLLARS
($1,000,000)
TO
IMPLEMENT
THE
TOWN
ALIVE
PROGRAM
FOR
A
TWO-YEAR
TERM
FROM
NOVEMBER
1,
2025,
THROUGH
OCTOBER
31,
2027
(B) AN ORDINANCE (1) ADDING CHAPTER 9.54 OF TITLE 9 OF THE OAKLAND
MUNICIPAL
CODE
TO
ESTABLISH
AND
REGULATE
ENTERTAINMENT
ZONES
PURSUANT
TO
SB
969
(2024)
TO
PROMOTE
ECONOMIC
ACTIVATION;
(2)
MAKING
OTHER
CONFORMING
CHANGES
TO
SECTIONS
9.08.180
AND
9.08.190
OF
THE
OAKLAND
MUNICIPAL
CODE;
(3)
CLASSIFYING
AN
ENTERTAINMENT
ZONE
EVENT
AS
A
TIER
TWO
OR
TIER
THREE
SPECIAL
EVENT
PURSUANT
TO
CHAPTER
9.52 OF
THE
OAKLAND
MUNICIPAL
CODE;
AND
(4)
ADOPTING
APPROPRIATE
CALIFORNIA
ENVIRONMENTAL
QUALITY
ACT
FINDINGS
EXECUTIVE SUMMARY
The Town Alive initiative establishes Economic Activation Zones —designated areas that re-energize
Oakland’s
public
spaces,
strengthen
small
businesses,
and
connect
residents
to
innovation
opportunities.
The program launches with two pilot components:
1 1. Entertainment Zones to activate commercial corridors with family-friendly outdoor events
and
cultural
festivals
2. Responsible Artificial Intelligence (AI) Activation Zones to foster equitable, community-based
innovation
and
create
hubs
for
community-based
AI
programming
Together, these pilots make Oakland’s economy more vibrant, inclusive, and future-ready.
The proposed pieces of legislation formally launch the Town Alive initiative; enable four pilot Entertainment
Zones
(Jack
London
District,
Broadway
Valdez/Northlake
District,
Temescal
District,
and
Uptown
Downtown),
which
permit
outdoor
alcohol
consumption
as
authorized
by
Senate
Bill
969
(2024);
and
authorize
$1,000,000
in
grant
funding
to
provide
initial
support
for
programming
across
Oakland,
administered
by
the
Oakland
Fund
for
Public
Innovation.
BACKGROUND / LEGISLATIVE HISTORY
Since the COVID-19 pandemic, Oakland has been rebuilding its local economy to address several significant challenges, such as employment recovery, downtown revitalization, consumer confidence, and tourism generation. Many of our commercial corridors are in particular
need
of
structured
opportunities
for
economic
and
cultural
activation.
Town Alive bridges that gap by:
● Reviving local commercial corridors through safe, family-friendly programming. ● Partnering with community institutions to expand access to the growing responsible AI economy.
Oakland’s economic recovery depends on reconnecting people to places—and ensuring innovation
benefits
every
neighborhood.
Entertainment Zones Under Senate Bill 969
Senate Bill (SB) 969 (Weiner, 2024) authorizes cities to establish designated “entertainment zones” where to-go alcoholic beverages from licensed bars, restaurants, breweries, and wineries
may
be
consumed
in
public
streets,
sidewalks,
or
other
public
rights-of-way
during
permitted special events. Cities across California—including San Francisco, San Jose, Santa Monica, and Sacramento—have already established or launched Entertainment Zones to support local businesses, activate commercial corridors, and enhance cultural life.
SB 969 requires a city, county, or city and county that establishes an entertainment zone to (1) establish
a
process
or
procedure
by
which
persons
in
possession
of
alcoholic
beverages
in
the
entertainment
zone
may
be
readily
identifiable
as
being
21 years
of
age
or
older;
and
(2)
provide
to
the
California
Department
of
Alcoholic
Beverage
Control
(ABC)
a
copy
of
the
ordinance
establishing
or
modifying
the
entertainment
zone
and
identifying
the
entertainment
zone’s
boundaries,
days
and
hours
of
operation,
types
of
alcoholic
beverages
permitted,
and
approved
non-glass
and
nonmetal
containers,
pursuant
to
Section
25690
of
the
California
Business
and
Professions
Code.
Before enacting an ordinance to establish or modify an entertainment zone, a city, county, or city and
county
shall
notify
local
law
enforcement
and
request
feedback
about
both
of
the
following:
(1)
potential
health
and
safety
impacts
that
might
be
generated
by
the
entertainment
zone
and
strategies
to
mitigate
those
impacts;
and
(2)
the
entertainment
zone’s
proposed
boundaries,
days
and
hours
of
operation,
types
of
alcoholic
beverages
permitted,
and
approved
non-glass
and
nonmetal
containers,
pursuant
to
Section
25692
of
the
California
Business
and
Professions
Code.
2 SB 969 requires that a city that establishes an entertainment zone, or its designated subordinate
officer
or
body,
shall
review
the
operation
of
the
entertainment
zone
every
two
years
following
the
adoption
of
the
entertainment
zone
to
ensure
that
the
entertainment
zone
is
being
maintained
in
a
manner
that
protects
the
health
and
safety
of
the
general
public.
Responsible AI
AI is technology that can perform tasks that would normally require human intelligence. The pace of AI adoption and commercialization has increased significantly in recent years. Current estimates count tens of thousands of AI-related companies worldwide, as startups and existing businesses work to build products spanning the spectrum from narrow daily tools to large generative
models.
Private investment in AI crossed the $100 billion mark in 2024 and accounted for a major share of global venture capital, with generative AI companies receiving particular focus. Business adoption has increased as well, with surveys showing AI use by organizations jumping from about 55% in 2023 to roughly 78% in 2024.
AI has also spurred a historic amount of policy and legislation compared to past emerging technologies. At the state level alone, over 1,600 AI bills have been proposed nationwide since 2019.
Responsible AI refers to the use of AI systems in ways that are ethical, transparent, accountable, and aligned with community wellbeing. Responsible AI presents the opportunity to leverage
the
rapid
development
of
AI
to
advance
Oakland’s
economic
and
community
development
goals
and
transform
how
the
City
delivers
services.
ANALYSIS AND POLICY ALTERNATIVES Entertainment Zones Entertainment Zones will create opportunities for outdoor gatherings, performances, and cultural festivals
in
Oakland’s
commercial
corridors
to
celebrate
Oakland’s
diversity
and
creativity.
Utilizing
SB
969
(as
detailed
above),
adjacent
bars
and
restaurants
will
be
permitted
to
sell
alcohol
in
to-go
containers
for
on-site
consumption
within
the
designated
zones
during
permitted
events.
Entertainment
Zone
programming
is
proposed
to
launch
in
summer
2026.
Implementation Landscape Several jurisdictions across the state have already launched Entertainment Zones to revitalize their
commercial
corridors:
City Program Status Key Features
San Francisco It was the first City to receive state authorization and launched its program in June 2024. Now has 21 Entertainment Zones.
Includes Chase Center, Valencia St, Front St, and Fisherman’s Wharf zones San Jose Established Entertainment Location selection prioritized 3 Zones in June 2025. existing pedestrian-friendly spaces, like the Post Street Pedestrian Mall.
Santa Monica Established the Third Street Promenade Entertainment Zone in May 2025.
The Entertainment Zone has standard hours every weekend, and isn’t reliant on specific events.
Sacramento Established three Entertainment Zones in June 2025.
Includes an Entertainment Zone surrounding the city’s Convention Center. Pilot Entertainment Zone Locations To promote public safety, maintain manageable capacity, and effectively test the model, Oakland will
launch
four
pilot
Entertainment
Zones.
Potential
locations
were
evaluated
based
on
the
following
criteria:
● Concentration of bars and restaurants that serve alcohol ● Potential Entertainment Zone lead organizer has a strong track record of hosting similar events
in
the
neighborhood
● Geography that easily enables street and/or plaza closures ● Impacts to public transit & alternatives for traffic diversion ● Public safety impacts The four pilot locations are: ● Jack London District (D2 & D3) ● Broadway Valdez/Northlake District (D3) ● Temescal District (D1) ● Uptown Downtown (D3) Precise zone boundaries are depicted in Attachment A . Future Entertainment Zone Locations Any neighborhood commercial corridor in Oakland can become an Entertainment Zone in the
future.
Beginning in 2026, new Entertainment Zones will be designated through the following process: 1. Contacting their Councilmember and the Economic & Workforce Development Department
(EWD)
to
begin
the
process
2. Receiving City Council approval by ordinance establishing the zone 3. Developing a Management Plan with EWD outlining programming, safety, and operations
4. Applying for Entertainment Zone event funding (if applicable) 4 Management Plans Management Plans are tailored plans for each Entertainment Zone to establish location-specific requirements
for
operations,
public
health,
and
public
safety
during
Entertainment
Zone
events.
The
plans
will
be
produced
by
the
Economic
&
Workforce
Development
Department
and
the
lead
community
partner
for
the
Entertainment
Zone
(e.g.,
a
Business
Improvement
District),
in
collaboration
with
community
partners
and
relevant
City
departments.
Management Plans will include: ● The lead community partner for the Entertainment Zone and businesses that will be selling
to-go
alcoholic
drinks
in
the
Zone
● A description of the potential programming to activate the Zone ● The precise Zone boundaries, hours, advance notice window and other logistical details ● Measures to ensure public health and public safety at events ● Procedures for ensuring that anyone in the Entertainment Zone with alcohol is at least 21 years
old
● Requirements for uniform cups for outdoor alcohol consumption ● City permits that apply to the Zone’s proposed programming Several peer cities also require Management Plans for their Entertainment Zones, including San Francisco and Santa Monica. Responsible AI Activation Zones The City of Oakland recognizes the growing role of Responsible AI and emerging technologies in
shaping
economic
opportunity,
workforce
development,
and
public
service
delivery.
Responsible
AI
Activation
Zones
will
serve
as
physical
and
programmatic
hubs
to
advance
equitable,
community-based
AI
innovation,
ensuring
that
AI
technologies
are
developed,
implemented,
and
governed
in
alignment
with
Oakland’s
values
of
equity,
transparency,
and
inclusion.
Programming within the Responsible AI Activation Zones will connect residents, students, and small
businesses
to
opportunities
in
the
technology
sector,
including:
● Community education events and professional conferences ● Civic technology pilots ● Student internships & showcases ● Small business support for responsible AI adoption ● Workforce development programs Programming will prioritize preparing local workers, especially those from historically disadvantaged
communities,
for
opportunities
in
AI-related
and
impacted
industries,
ensuring
that
the
economic
benefits
of
AI
are
shared
equitably,
mitigating
negative
impacts,
and
promoting
digital
literacy.
Programs will be led and coordinated through the Oakland Fund for Public Innovation (OFPI) , in
partnership
with
Laney
College
,
the
Unity
Council’s
Unity
Tech
Hub
,
and
Mills
College
at
Northeastern
University
,
providing
citywide
access
to
resources
and
training.
5 Programming Partners Responsible AI Zone programming will be located in three hubs across the city, which will host community
programming:
● Laney College : Laney College launched the first Applied AI program in California, and anchors
an
area
adjacent
to
downtown
that
includes
the
Oakland
Museum
of
California
and
the
Henry
J.
Kaiser
Center
for
the
Arts.
● Unity Tech Hub : The Unity Tech Hub is a partnership between the Unity Council and Google
to
increase
community
access
to
tech
education,
workforce
development,
and
business
development.
The
Unity
Tech
Hub
will
ensure
access
for
Central
Oakland
neighborhoods
to
programming.
● Mills College at Northeastern University : Mills at Northeastern already hosts several AI
initiatives,
including
the
Bridge
to
AI
program
for
Oakland
Unified
School
District
students,
and
partnerships
with
the
business
community.
Mills
at
Northeastern
will
ensure
access
for
East
Oakland
neighborhoods
to
programming.
Oakland Fund for Public Innovation OFPI is a 501(c)(3) nonprofit organization whose mission is to improve the prosperity, safety, and quality of life for all Oaklanders by establishing innovative public-private partnerships in our most
vulnerable
communities.
OFPI
achieves
its
mission
by
partnering
with
government
agencies
to
pilot
new
strategies
to
meet
the
needs
of
Oaklanders,
and
by
scaling
the
most
promising
solutions
OFPI’s mission and approach are strongly aligned with the vision for the Town Alive program.
OFPI
is
proposed
to
be
the
project
manager
for
program
implementation,
which
will
entail:
● Serving as the fiscal sponsor for the program, receiving and managing funds in accordance
with
nonprofit
accounting
and
compliance
standards,
including
disbursements,
contracting,
and
reporting
● Supporting program design, curriculum development, and project management in coordination
with
City
departments
● Hiring and supervising a Program Manager, who will be employed through OFPI and dedicated
to
advancing
the
Town
Alive
program,
particularly
stewarding
the
development
of
the
Responsible
AI
Activation
Zones
● Supporting future fundraising efforts, in partnership with the Kapor Foundation , which works
to
ensure
equitable
access
to
the
technology
industry,
to
sustain
and
expand
the
Town
Alive
program
FISCAL IMPACT On June 11, 2025, the City Council adopted Resolution No. 90827 C.M.S., which approved the FY 2025–2027 Biennial Budget, including One Million Dollars ($1,000,000) for “Economic Opportunity
Zones”
across
two
years
with
Five
Hundred
Thousand
Dollars
($500,000)
in
each
year.
The
proposed
legislation
will
support
initial
Town
Alive
programming
with
these
funds.
Funding for “Economic Opportunity Zones” is available in the General Purpose Fund (1010), Economic
Development
Organization
(85411),
Third-Party:
Grant
Contracts
Earned
Account
(54912),
Entertainment
&
Activate
Project
(1008217),
Administration
Program
(IP03).
6 The funding will include an allowable administrative fee not to exceed Ten Percent (10%) or One Hundred
Thousand
Dollars
($100,000)
and
a
program
management
fee
not
to
exceed
Two
Hundred
Fifty
Thousand
Dollars
($250,000)
total
over
the
two
years.
Program FY26 Budget FY27 Budget Total
Entertainment Zones $100,000 $300,000 $400,000
AI Activation Zones $250,000 Fundraise $250,000
Program Manager $125,000 $125,000 $250,000
Administrative Costs (10%)
$50,000 $50,000 $100,000
Total $500,000 $500,000 $1,000,000 PUBLIC OUTREACH / INTEREST Councilmember Brown’s office has engaged extensively with community members and community
partners
in
developing
this
proposal
over
the
last
six
months
via
direct
meetings,
including
ongoing
collaboration
with
potential
Entertainment
Zone
lead
organizations
and
Responsible
AI
Activation
Zone
programming
partners.
COORDINATION Councilmember Brown’s office consulted with the City Administrator’s Office, Economic and Workforce
Development
Department,
Department
of
Transportation,
Public
Works
Department,
Police
Department,
Planning
&
Building
Department,
City
Attorney’s
Office,
and
the
Port
of
Oakland
to
develop
this
legislation.
SUSTAINABLE OPPORTUNITIES Economic : The Town Alive program will energize local commercial corridors and expand access
to
the
responsible
AI
economy.
This
initiative
implements
a
two-pronged
strategy
to
advance
Oakland’s
continued
economic
recovery
by
supporting
small
businesses,
increasing
tax
revenue,
and
offering
new
workforce
development
opportunities.
Environmental : At present, AI is incredibly energy- and water-intensive, and AI data centers also have negative local environmental impacts on neighboring communities, such as air and noise pollution. As the City increases its use of AI to improve services and works to ensure equitable
access
for
Oaklanders
to
economic
opportunities
in
the
AI
sector,
it
will
be
imperative
to
collaborate
with
state
and
federal
government
partners
on
legislation
and
regulations
to
address
the
environmental
impacts
of
AI.
Race & Equity : Entertainment Zones will strengthen small businesses and revitalize Oakland’s
commercial
corridors.
As
the
program
expands
citywide,
it
will
create
greater
economic
opportunity
for
businesses
owned
by
historically
disadvantaged
communities—
improving
outcomes
in
entrepreneurship,
employment,
and
neighborhood
vitality.
Energizing
7 these corridors will also drive tax growth, helping sustain and expand key City services that advance
equity
across
multiple
areas,
including
economic
development,
housing,
public
health,
education,
public
safety,
environmental
quality,
and
transportation.
Similarly,
Responsible
AI
Activation
Zones
will
promote
equitable
access
to
one
of
the
fastest-growing
sectors
of
the
economy.
These
zones
will
help
close
gaps
in
education,
income,
and
wealth—mitigating
downstream
inequities
that
affect
overall
community
wellbeing.
Finally,
the
City
must
continue
to
collaborate
with
state
and
federal
partners
to
address
the
racialized
environmental
impacts
emerging
from
the
global
proliferation
of
AI
technologies.
ACTION REQUESTED OF THE CITY COUNCIL Adopt The Following Pieces Of Legislation: (A) A RESOLUTION (1) ESTABLISHING ECONOMIC ACTIVATION ZONES UNDER THE TOWN
ALIVE
PROGRAM
TO
SUPPORT
ENTERTAINMENT
ZONES
AND
RESPONSIBLE
ARTIFICIAL
INTELLIGENCE
(AI)
ACTIVATION
ZONES
IN
THE
CITY
OF
OAKLAND,
BRINGING
INNOVATIVE
PROGRAMMING
TO
PUBLIC
AND
COMMUNITY
SPACES;
AND
(2)
AUTHORIZING
THE
CITY
ADMINISTRATOR
TO
AWARD,
NEGOTIATE
AND
EXECUTE
A
GRANT
AGREEMENT
WITH
THE
OAKLAND
FUND
FOR
PUBLIC
INNOVATION
IN
AN
AMOUNT
NOT
TO
EXCEED
ONE
MILLION
DOLLARS
($1,000,000)
TO
IMPLEMENT
THE
TOWN
ALIVE
PROGRAM
FOR
A
TWO-YEAR
TERM
FROM
NOVEMBER
1,
2025,
THROUGH
OCTOBER
31,
2027
(B) AN ORDINANCE (1) ADDING CHAPTER 9.54 OF TITLE 9 OF THE OAKLAND
MUNICIPAL
CODE
TO
ESTABLISH
AND
REGULATE
ENTERTAINMENT
ZONES
PURSUANT
TO
SB
969
(2024)
TO
PROMOTE
ECONOMIC
ACTIVATION;
(2)
MAKING
OTHER
CONFORMING
CHANGES
TO
SECTIONS
9.08.180
AND
9.08.190
OF
THE
OAKLAND
MUNICIPAL
CODE;
(3)
CLASSIFYING
AN
ENTERTAINMENT
ZONE
EVENT
AS
A
TIER
TWO
OR
TIER
THREE
SPECIAL
EVENT
PURSUANT
TO
CHAPTER
9.52 OF
THE
OAKLAND
MUNICIPAL
CODE;
AND
(4)
ADOPTING
APPROPRIATE
CALIFORNIA
ENVIRONMENTAL
QUALITY
ACT
FINDINGS
For questions regarding this report, please contact Chiamaka Ogwuegbu, Policy Director for At-Large
Councilmember
Rowena
Brown,
at
Respectfully submitted,
Rowena Brown City of Oakland, Councilmember At Large Attachments (3): Attachment A: Entertainment Zone Maps Attachment B: Town Alive Program Summary Attachment C: City of Oakland AI Equity Statement 8