In 2009, organizers branded a swathe of the city’s westernmost Green Line-connected neighborhoods the “Creative Enterprise Zone.” The goal was to promote and retain the artists, architects, light industry and start-up companies bordering University Avenue into St. Anthony Park.

Eager to see the Creative Enterprise Zone succeed, the St. Paul City Council will host a public hearing on a key missing ingredient: hard alcohol.

The council will accept public testimony at 10 a.m. Wednesday at the Capitol Regional Watershed District, 595 Aldine St., on a proposal to add four distinct commercial development districts within the zone. Between them, the districts would allow for nine on-sale liquor licenses of any type, effectively opening the door to a full bar — or nine of them — at non-restaurant establishments well outside of downtown.

“This creates a part of the city where now the process is easier,” said Council President Mitra Jalali, who represents the area, which is known for its mix of industry, entertainment and apartment offerings. “That’s where all the breweries are. That’s where the new housing is.”

Under city ordinances, the city council cannot issue full on-sale liquor licenses outside of downtown except to hotels, restaurants or nonprofit private colleges. The exception would be within designated commercial development districts, where any type and any number of on-sale liquor licenses are allowed.

“It’s exactly the type of economic development that we want to encourage because it’s the appropriate use for that commercial area,” said Dan Niziolek, deputy director of the St. Paul Department of Safety and Inspections, addressing the city council on Feb. 7.

The conversation got rolling over a year ago when Paikka, an event center at 550 Vandalia St., approached the city to request a full liquor license. Rather than rezone an individual parcel of land for one venue, the businessowners felt it would be appropriate to think geographically bigger.

“We engaged the Creative Enterprise Zone, the St. Anthony District Council and … Paikka, and we had a conversation,” Niziolek said, noting the CEZ overlaps with an entertainment district of the same name that allows street consumption during special events.

City staff studied the contours of the district and decided to allow no more than two on-sale liquor licenses in the northwest corners of the zone, no more than three in its northeast corners, no more than two in the southwest and no more than two in the southeast.

“You have to look at the concentration of bar seats and the impact on neighborhoods,” Niziolek said, “(to) prevent a concentration of too many liquor-serving establishments in one place. … We’re allowing economic vitality and development (while) preventing over-concentration, which could have a public safety impact.”

Given that the districts would have more than 200 land parcels between them, the council recently waived a petition requirement. The St. Paul Planning Commission reviewed the details and recommended that the commercial development district span an even larger area, but Niziolek said that would require further amendments and have to be discussed at a later date.

Unless major amendments move forward, the city council likely will vote on the four new districts on Feb. 21.

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