The city of Sterling has agreed to let the good times roll a little later downtown.

After much debate, the Sterling City Council unanimously approved an ordinance at its meeting on Monday, Oct. 6, amending a section of the City Code to create an extended-hours permit for liquor-license holders. The new permit allows businesses to extend their operating hours for special events, including New Year’s Eve.

Under the ordinance, eligible businesses can apply for the extended-hours permit, allowing them to stay open until 3 a.m., with last call at 2 a.m. and all staff required to vacate the premises by 4 a.m.

Businesses are limited to one permit per month, with a maximum of four per year; each application costs $100 and must be filed at least 30 days in advance. Any alcohol-related citation would result in a one-year suspension of permits. The allowances also apply only to indoor events, not outdoor gatherings.

Ryan and Ashley Nares spoke at Monday’s City Council meeting, advocating for the ordinance’s approval. The couple operate two connected businesses under one roof at 117 W. Third St. in Sterling: The Mercantile restaurant and The Alchemy Ballroom event space.

The couple recently applied for the permit to extend hours at The Mercantile for special occasions, such as the Mercantile Monster Masquerade planned in the ballroom for Saturday, Oct. 25. But the original conditions of the extended-hours permit were slightly different, allowing businesses to apply up to 12 times per year with last call set for 2:15 a.m.

Monday night’s approval did not come without its fair share of concerns from city administration, including members of the City Council and newly appointed Sterling police chief Pat Bartel, who said that it could lead to a strain on the police department if multiple businesses applied for the permit on the same night.

“Our fear was that... people are going to hard drink, beeline it across the bridge to get into your facility to get that last 45 minutes to two hours, to drink it down and get as much liquor in them as they could,” Bartel said. “I will say we did not discuss the portion... where food [is served] separately, without liquor. I don’t think I would have an issue with that, from a safety aspect, as long as it didn’t... turn into the Friendship House, for those of you who remember those days.”

In response, Ashley said they plan to sell tickets and set a cover charge for their events, which would increase after midnight, and that they believe the increase would deter individuals from coming in and causing chaos. She added that they also go “overboard” when it comes to security for their events.

“We always have at least two [security guards] on the floor and one at each door,” Ashley said. “We have never had a problem with a rough crowd, and I think having a fee at the door for late-night people, specifically, we’re not going to have to worry about getting a rough crowd in.”

City Attorney Tim Zollinger said he appreciated the Nareses’ efforts but urged the City Council to consider the precedent the permit could set for other businesses.

“You’re writing rules that apply to everyone in this class of license, and not everybody may be as conscientious about what security measures they’re going to take or how they approach these sales, but you’re creating a rule for everyone,” Zollinger said.

The Nareses emphasized the request is not about serving drinks longer, but about providing people with a place to stay out late for special events, which they say have drawn growing crowds. Ashley said their 2024 Halloween party drew over 800 people to The Mercantile.

“We’re spending thousands of dollars to bring a unique experience to Sterling,” Ashley said. “We are getting people coming from out of town. We’ve had people from Chicago. They’re having dinner here. They’re getting hotels. They’re staying here. Nightlife is nightlife. It starts late, it ends late.”

She went on to say that occupancy was their main priority, asking if it was possible to amend the ordinance to allow them to extend occupancy and serve food until 3 a.m., provided they stop serving alcohol at 2:15 a.m. so that patrons could still “bust a move” on the dance floor.

Aldermen Josh Johnson and Joe Strabala-Bright supported the idea.

“Quite frankly, I love the idea of giving people 45 minutes to sober up,” Strabala-Bright told his fellow City Council members.

Johnson agreed, saying the debate over closing times risked getting bogged down in details.

“I honestly think that 45 minutes can be more beneficial for people to get their bearings and drink water than to kick them out at 2:15 [a.m.] after they just chugged their last drink,” Johnson said, adding that food does “wonders to drunkenness.”

Strabala-Bright suggested splitting the difference by setting the last call for 2 a.m. The rest of the council agreed.

“I’d rather have them stretch that last drink over an hour than chug it in 15 minutes,” Strabala-Bright said.

Alderman at Large Jim Wise suggested testing the permit on a trial basis, with the option to amend its terms later if it proves successful. Alderman at Large Allen Przysucha agreed.

“I would defer my preference to the staff’s recommendation at this point to offer the opportunity to see how this goes,” Wise said. “If in the event that it’s pretty well operated, and it works to the benefit of all across the field, I see no reason why not to continue to look at extending this beyond that point as well.”

In the end, the council voted to amend the ordinance to make last call at 2 a.m., with patrons out by 3 a.m. and staff out by 4 a.m.