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South Lyon social district gets pushback, concerns raised about liability

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SOUTH LYON, Mich. (WXYZ) — South Lyon is getting pushback from a business owner after passing a new social district law.

It allows people to buy drinks from participating bars and restaurants and drink them in designated areas.

There is certain liability associated, which is raising some concerns.

The social district concept really came about during the COVID-19 pandemic. Cities were looking for ways to help out businesses that were struggling.

Some amended ordinances allow open container in designated downtown areas. It is now becoming a reality for the South Lyon community after it was unanimously approved by city council on July 10.

"I have to insure the city now for the social district, which is unacceptable," said Jeff Robinson, the owner of Third Monk Brewery.

It's why Robinson said thanks, but no thanks when he was invited to be a part of the new social district.

When it takes effect, it will allow people to buy alcoholic drinks inside participating businesses and then consume those drinks outside in the downtown district's designated common areas.

"Based on the experience of more than 100 communities in the state, it will be a positive change in the South Lyon community and it will give our residents yet another reason to come downtown and see what we have to offer," said Nate Mack, the Downtown Development Authority director for South Lyon.

Mack says businesses who opt into the social district are required to carry the city on their insurance policy and hold the city harmless if things go south.

Robinson says the idea of people leaving his business with alcohol into an area where guns are allowed makes that an impossible ask.

"Change the social district law because you're allowing weapons and guns in these social districts. I don't think anyone in the state of Michigan three years ago thought that was going to be an issue," Robinson said.

The Corner Social is one of the five businesses that are welcoming the change.

Owner Mike Carano says he has zero safety concerns about the social district.

"There's going to be such a small percentage of people that are going to do something stupid, and I think they would probably do that whether there was a social district or not," Carano said.

Carano sees it as a good thing and believes patrons will practice responsible gun ownership.

"Anyone who has gone through the proper training to learn about that knows that you cannot have alcohol and firearms. Those two don't mix," Carano said.

We asked Robinson if he's taken into consideration that other municipalities haven't had a lot of issues.

"Not really important. As far as what I have to comply with, I have to insure the city and I have to relieve them of liability. I can't do that," Robinson said.

The amended open container ordinance was passed on July 10. Mack says it takes 30 days to go into effect.