With San Jose leaning into the experience economy to drive its downtown revival and major sporting events like Super Bowl LX and the FIFA World Cup on the horizon, city officials want to create at least seven new entertainment zones to help make the area more vibrant.

The proposed downtown entertainment zones include San Pedro Street, Post Street, South First Street, St. John Street, Sharks Way, Fountain Alley, and Paseo de San Antonio — many of these have seen foot traffic increase due to the city’s push to create more pedestrian malls in recent years. District 5 City Councilmember Peter Ortiz also wants to create an entertainment zone along Alum Rock Avenue, stretching from North 31st Street to South Capitol Avenue, and along North King Road, between 18 North King Road and East San Fernando Street.

Under the proposed ordinance, which would go into effect in July, the city would streamline approval for live music, outdoor dining and special events, a move that city officials hope will attract more upper-echelon headlining acts.

“We’re building on that momentum and allowing all of the bars and restaurants here to take advantage of planned events in the future,” San Jose Mayor Matt Mahan said. “This year alone, headline acts like Steve Aoki and Fisher brought over 25,000 people into downtown San Jose. Global conferences like Nvidia’s GTC brought in over $270 million in estimated economic for the city.”

The creation of the entertainment zones was made possible by SB 969, a bill introduced by Scott Wiener (D-San Francisco) – and supported by Mahan – that aimed to activate public spaces with entertainment and community-driven events.

With several large employers decamping from downtown and office vacancy rates still high, San Jose’s foot traffic has rebounded largely due to arts and entertainment activity on nights and weekends. The city’s downtown has the distinction of having the second-fastest recovery behind only Las Vegas post-pandemic.

Indicating the power of the events, the most recent Arts & Economic Prosperity 6 study showed that nonprofit arts and culture organizations generated hundreds of millions of dollars in economic activity.

While Santa Clara’s Levi Stadium will host the two most consequential events in Silicon Valley – Super Bowl LX and World Cup games – city officials expect San Jose to reap some of the rewards from the marquee attractions.

For example, officials have conservatively estimated that Super Bowl LX — slated for Feb. 8, 2026 — will create a $100 million to $160 million economic impact in the region over the week.

The stadium is also one of the 16 venues hosting World Cup matches, including 11 in the U.S. The stadium will host six games between June 13 and July 1. Over the six weeks the tournament lasts, the city estimated an economic boost of between $270 million and $360 million.

In 2024, when the Levi’s Stadium hosted Copa America soccer matches, city officials caught a glimpse of how watch parties in San Pedro Square boosted vibrancy and economic activity.

With the creation of the entertainment zones, San Jose will make it easier to close down streets for special events and allow for the sale of “to-go” containers of alcohol that can be consumed outdoors within a geographic area.

“We’re doing a lot of different things to try to bring back that vibrancy and diversity of small, locally owned businesses and give them the support and flexibility they need to create great experiences and draw consumers back,” Mahan said.

The proposed creation of entertainment zones received widespread support from the business community, including the San Jose Downtown Association and the San Jose Chamber of Commerce.

“We are especially encouraged by the timeliness of this proposal and the ordinance’s ability to support large-scale activations, such as FIFA World Cup and Super Bowl watch parties in 2026,” San Jose Chamber of Commerce President and CEO Leah Toeniskoetter wrote in a letter to the City Council. “These large, dynamic sporting events will draw visitors from all over the world and could translate into significant economic returns for our city’s hospitality, retail, and cultural sectors.”

In response to questions raised about staffing for permitting the events, Mahan said the city needed to become more efficient in handling permits but added that it should not be an excuse for not taking advantage of advantages Wiener’s bill allowed.

He also said that the city needed to continue increasing staffing at the police department, whether through sworn police or community service officers, to ensure safety around the events.