Sacramento, CA (and specifically the Midtown neighborhood)!! So many reasons why, but here are few...
1. We have three great collective work spaces, Hacker Lab (http://hackerlab.org/), Urban Hive (http://www.theurbanhive.com/) and Capsity (http://www.capsity.com/) and a really innovative arts incubator, Flywheel (http://www.sacabc.org/programs/flywheel/) and design market, GOOD (http://gooddesignmarket.com/).
2. Sacramento is the capital of California so it's not uncommon to see daily protesters and rallies (representing all points of view) at Capitol Park.
3. Downtown, Midtown, Curtis Park, Land Park and East Sacramento all place a premium on locally owned businesses, farmers markets and co-ops. Midtown (http://www.exploremidtown.org/), in particular, is a the most centrally located neighborhood and filled with progressive shops, galleries, bars and restaurants.
4. So many! Farm to Fork (http://farmtoforkcapital.com/), Midtown Cocktail Week (http://www.midtowncocktailweek.org/), Launch Festival (http://launchsacramento.com/), Concerts in the Park (http://downtownsac.org/events/concerts-in-the-park/) and Startup Weekend (http://sacramento.startupweekend.org/) are some of the standouts.
5. Sacramento has been nationally recognized for it's cocktail scene but we also have a ton of wine bars (since Lodi, Amador, Napa and Sonoma are so close), local craft beers and even a cider brewery (http://www.tworiverscider.com/). Not to mention some of our crazy good, artisan coffee shops.
I moved here in 2006. I've lived in DC, San Francisco and Tennessee but Sacramento is my adopted hometown. Can't say enough about how wonderful this place is - the people are friendly, laidback and collaborative. The weather is amazing 10 months out of the year and we're within a 3 hour drive from some of the most beautiful spots in the world (Tahoe, Big Sur, Yosemite, etc).