6.1. SR 05-05-1997ity of
iver
ITEM 6.1.
MEMORANDUM
TO: Mayor and City Council
FROM: Sandra Thackeray, City Clerk a~
DATE: May 5, 1997
SUBJECT: Minnesota Lakes Association Request
for Premise Permit License
The Minnesota Lakes Association have made a request for a premise
permit license to operate pull tabs from Broadway Bar and Pizza. I
have spoke with Mr. Mick Keenan who is a Board Member and
Gambling Manager of the Minnesota Lakes Association regarding
this request.
The Minnesota Lakes Association headquarters is located in
Brainard. ! have informed Mr. Keenan that due to the location of
their headquarters, the City's Ordinance restricts the Association
from operating in the City of Elk River.
The Ordinance states the following:
"The physical site for the organization's headquarters or the
registered business office of the organization must be located
within the City of Elk River or in a city contiguous to the City of
Elk River."
ii. "This requirement may be waived for an existing organization
which does not comply with this requirement if approved by the
City Council at the time of the Premises Permit renewal."
Mr. Keenan will be requesting the Council to interpret (ii) above.
feels that their organization is an existing organization and
therefore, would qualify for a waiver.
He
When the Council adopted the ordinance pertaining to this issue on
12121195, it was the intention of the Council to have some control on
the organizations who are operating in the City. I believe it was also
the intent to waive the restriction (ii) for existing "outside"
13065 Orono Parkway ° P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
organizations who were currently operating in the City. At that
time the only existing organization in operation was Celebrity Bowl
Charities at Elk River Bowl.
One other issue that the Council should be aware of is the reason for
this request. Mr. Keenan has informed me that some of the profits
will be used to assist in the Lake Orono clean up project. Mr.
Keenan has also been informed of the City's requirement that 75% of
the lawful purpose expenditures be expended in the City's trade
area.
Mr. Mick Keenan and other representatives of the Minnesota Lakes
Association will be present to discuss this issue.
COUNCIL ACTION
If the Council wishes to allow this organization to operate in the
City, then an ordinance amendment would be necessary. The
amendment would eliminate the restriction placed on outside
organizations. If this is the Council's desire, then the Council should
move to direct staff to prepare an ordinance amendment to this
effect.
If the Council concurs that this organization cannot operate in the
City due to the ordinance restriction, and the Council has no
intention of amending the ordinance, then no action is necessary.
s:\councilklakes.doc
The Council may for any reasonable cause refuse to ~rant the
:ense herein provided.
714.08 £SSUANCE AND DISPLAY OF LICENSE
When the r fee has been deposited with the City trator
and the Coun¢ has so ordered, the City Administra shall issue
the license, shall specify the name the licensee,
the specific toca' of the bowling alley, an number of
lanes authorized. :hail not be tran~ It shall be kept
conspicuously posted he licensed prem' no person shall
post such license upon other t] those for which issued,
or deface or destroy any licens~
714.10 - PROHIBITED PRACTICES
It shall be unlawful for person to
granted or for any empl¢ of such
any appurtenant or cted place:
~om a license has been
in any bowling alley or
1. To permit of gambling.
2. To perm,' any person to become disorderly or to e profane,
obscene or t language.
fei
T .gly employ any person who has ~een convicted o~a
To violate any law, ordinance, license or permit·
716 - LAWFUL CttARITABLE GAMBLING
716.00 - DEFINITIONS
Unless the context clearly indicates otherwise, the words,
combinations of words, terms and phrases as used in Section 716.00
et sea. shall have the meanings set forth in the following
paragraphs:
LAWFUL GAMBLING: The operation, conduct, or sale of bingo,
raffles, paddlewheels, tipboards, and pull-tabs.
ORGANIZATION: A religious, fraternal, veterans, or other
nonprofit entity which has been in existence for at least three
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years, has at least 15 active members and is not in existence
solely for the purpose of conductin~ ~amb!in~.
GAMBLING CONTROL DIVISION:
regulates the ~amblin9.
The state agency that licenses and
NET PROFIT: Gross profit less reasonable sums actually expended
for allowable expenses
TRADE AREA: Ail cities contiguous to the City of Elk River
includin~ the City of Elk River, the City of Otse~o, the City of
Rogers, the City of Ramsey, and the City of Zimmerman
PREMISES PERMIT: A two-year permit ~ranted by the State Gamblin9
Control Board for each premises where lawful ~amblin9 is to be
conducted.
LAWFUL PURPOSE: Any expenditure by, or contribution to, a
501(c) (3) organization, provided that the organization and
expenditure or contribution are in conformity with standards
prescribed by the Gamblin9 Control Board under Section 349.154.
716.02 LAWFUL GAMBLING
!. Statement of Purpose. It is the stated policy of the City
Council of the City of Elk River that, to the extent lawful,
regulated ~amblin~ is permitted within the City, the net profit~
and proceeds of ~amblin9 shall directly benefit the citizens of
the City of Elk River.
716.04 - LICENSE REQUIRED; REQUIREMENTS FOR ISSUANCE
It shall be unlawful to operate lawful 9amblin9 without a license
issued by the Minnesota Gambiin9 Control Division.
1. Licenses. Licenses to operate 9amblin9 devices or to conduct
raffles shall be issued only to a fraternal, religious, veterans,
or other nonprofit organization covered by Minnesota Statutes,
Section 349.16.
2. Licensing Procedure.
A. The organization desiring a 9amblin9 license must
obtain an application from the Minnesota Gamblin9 Control
Division.
B. The Gamblin9 Control Division may not issue or renew a
premises permit or bingo hall license unless the organization
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submits a resolution from the city council approving the
premises permit or bingo hall license. The resolution must
have been adopted within 60 days of the date of application
for the new or renewed permit or license.
C. A premises permit issued by the Gambling Control
Division is valid for two years.
716.06 - LICENSE RESTRICTIONS
City may Disapprove Premises Permit based on the followinq
RecFuirements:
A. The City reserves the right to disapprove a Premises
Permit application for individual bingo occasions,
raffle games, and pull-tab operations for any of the
following reasons:
i. Violation by the applicant of any statute, rule,
regulation or ordinance relating to gambling.
ii. Failure to make reports required by any applicable
ordinance, rule, regulation or statute.
iii. Any reason which would justify the Minnesota
Gambling Control Board in denying an application for a
license.
No Premises Permit or renewal will be approved unless:
A. The organization is conducting the lawful gambling on
the premiseg of a church, a fraternal, veterans, or other~
nonprofit organization, or on the premises of an on-sale ~
liquor license of the City of Elk River.
B. Unless the following requirements are met:
i. The physical site for the organization's
headquarters or the registered business office of the
organization is located within the City of Elk River or
a city contiguous to the City of Elk River.
ii. This requirement may be waived for an existing
organization which does not comply with this
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716.08 - EXPENDITURES FOR LAWFUL PURPOSES WITHIN TRADE AREA
1. Trade Area: The term "trade area" shall mean all of that
area described below:
The City of Elk River, the City of Ramsey, the City of
Otsego, the City of Rogers, and the City of Zimmerman.
o
Expenditures for Lawful Purposes: Any organization holding a
Premises Permit to conduct lawful gambling within the City of
Elk River shall be required to expend seventy-five percent
(75%) of its lawful purpose expenditures conducted or located
within the City's trade area.
A. An organization that conducts gambling on fewer than
five (5) days in a calendar year is exempt from the
requirements of this Section.
716.10 - REPORTING REQUIREMENTS
1. Every organization licensed to conduct gambling in the City
of Elk River shall file with the City Clerk copies of the monthly
State ~ambling report and Schedule C required to be filed with the
Minnesota Lawful Gambling Control Board pursuant to Minnesota
Statutes, Chapter 349. The records and reports shall be due at
the same time they are due to the Gambling Control Board.
2. Every organization licensed to conduct gambling in the City
of Elk River shall file with the City Clerk an annual summary
report of the expenditures for lawful purposes within the trade
area.
3. Organizations conducting gambling activities in other
communities as well as Elk River shall segregate the ~ross
receipts, expenses, profits and expenditure of profits from the
Elk River Operation.
718.00 DEFINI
Unless the context clearly
combination of words, terms an(
et seq. shall have the me
paragraphs:
set for
~e, the words,
as used in Section 718.00
the followin~
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