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3.6. & 3.7. SR 09-20-1999 rei ---'\) ( ~ tli< 'If"/; Item # > 3 . 6 . ** **Item I 3.7.** MEMORANDUM TO: Mayor & Council FROM: Sandy Peine, City Clerk DATE: September 20, 1999 SUBJECT: Premises Permit Renewal Request by VFW The Elk River-Rogers VFW have requested to renew two premises permits to conduct charitable gambling at the Sunshine Depot and the Eagles Club. The permits will run for two years from 12/01/99 - 11/30/01. . The City's Ordinance requires that 75% of the lawful purpose expenditures must be spent within the City's trade area. The trade area for Elk River consists of the following cities: Elk River, Ramsey, Otsego, Rogers and Zimmerman. The attached chart shows that the amount of expenditures spent in the trade area in 1998 and the first half of 1999 were over 75%. The City's Ordinance restricts the number of premises permits per lawful gambling organization to one. The VFW is grandfathered for a ten year period from September of 1997 to sell pull tabs at two locations. The City is recommending approval of the two premises permits based on the conditions of the City's ordinance being met by the VFW organization. ACTION REQUESTED: . Council motion adopting the attached Resolution approving a premises permit for the VFW to conduct lawful charitable gambling at the Sunshine Depot. · Council motion adopting the attached Resolution approving a premises permit for the VFW to conduct lawful charitable gambling at the Eagles Club. . S:\COUNCIL\vfwpremp.doc 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 VFW GAMBLING REPORTS FOR 1998 AND 1999 . COMBINED REPORTS FOR TWO LOCATIONS: . SUNSHINE DEPOT . EAGLES CLUB 1998 TOTAL ELK RIVER ELK RIVER OTHER OTHER MONTH EXPENDITURES MONEY PERCENT MONEY PERCENT JANUARY $1,928 $1,928 100% $0 0% FEBRUARY $2,119 $2,119 100% $0 0% MARCH $3,920 $3,720 95% $200 5% APRIL $2,532 $2,532 100% $0 0% MAY $1,708 $1,708 100% $0 0% JUNE $688 $413 60% $275 40% JULY $1 ,402 $1 ,402 100% $0 0% AUGUST $1,422 $1 ,422 100% $0 0% SEPTEMBER $2,380 $2,380 100% $0 0% OCTOBER $757 $757 100% $0 0% NOVEMBER $4,168 $4,168 100% $0 0% DECEMBER $3,458 $3,458 100% $0 0% . TOTALS $26,48~ $26,00J 98% $475 2% 1999 TOTAL TRADE AREA TRADE AREA TRADE AREA OUTSIDE MONTH EXPENDITURES MONEY PERCENT MONEY PERCENT JANUARY $4,263 $4,263 100% $0 0% FEBRUARY $2,577 $2,077 81% $500 19% MARCH $2,892 $2,892 100% $0 0% APRIL $1,208 $1,108 92% $100 8% MAY $1,362 $1,362 100% $0 0% JUNE $1,152 $1,152 100% $0 0% JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTALS $ 13,45t $ 12,85t 96% $60G 4% S:\ADMIN\LICENSIN\ VFWCHART.doc . . . . Page 3 option will provide an additional credit of 11,000. The premium for this coverage is $58,835 which is a decrease from last year's premium. COUNCILMEMBER DIETZ MOVED TO APPROVE TWO NEW INSURANCE CONTRACTS. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.4. Charitable Gamblina Ordinance Sandra Thackeray, City Clerk, indicated that on September 8, the City Council directed staff to prepare an ordinance amendment that would limit the number of premises permits per organization to one. Council also directed that the VFW and Elk River Youth Hockey Organizations be exempt from the ordinance amendment for a ten year period because both organizations presently have two premises permits. She indicated that this exemption will not allow either of these two organizations to switch premises during the ten year period. The City Clerk informed the City Council that an ordinance amendment to this effect has been prepared. COUNCILMEMBER DIETZ MOVED TO ADOPT ORDINANCE 97-17 AMENDING SECTION 716.06 OF THE CITY CODE RELATING TO LICENSE RESTRICTIONS AND THE NUMBER OF PREMISES PERMITS ALLOWED FOR CHARITABLE GAMBLING. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0 COUNCILMEMBER THOMPSON MOVED TO EXEMPT THE FOLLOWING ORGANIZATIONS WHICH ARE CURRENTLY LICENSED TO HAVE TWO PREMISES PERMITS, FR M THE ORDINANCE AMENDMENT IN THE FOLLOWING MAN A. TO ALLOW THE VFW TWO PREMISES PERMITS FOR UP TO TEN YEARS FROM THE DATE OF THIS ORDINANCE AMENDMENT; ONE AT THE SUNSHINE DEPOT AND ONE AT THE EAGLES CLUB, PROVIDED THE PREMISES PERMITS ARE RENEWED UNDER THE CITY CODE AND STATE LAW. B. TO ALLOW THE ELK RIVER YOUTH HOCKEY ORGANIZATION TWO PREMISES PERMITS FOR UP TO TEN YEARS FROM THE DATE OF THIS ORDINANCE AMENDMENT; ONE AT DICK'S RIVERFRONT BAR AND ONE AT TIME OUT SPORTS BAR, PROVIDED THE PREMISES PERMITS ARE RENEWED AS REQUIRED UNDER THE CITY CODE AND STATE LAW. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-1 COUNCILMEMBER DIETZ VOTED AGAINST THE MOTION. 6.1. ISD # 728 Reauest for Zone Change, Public Hearina, Case No. ZC 97-6 6.2. ISD # 728 Reauest for Land Use Plan Amendment, Public Hearina Case No. LU 97-5 6.3. ISD # 728 Reauest for Conditional Use Permit Case No. CU 97-21 Zone Chanae/Land Use Plan Amendment City Planner Steve Ach indicated that ISD # 728 is requesting to rezone approximately 20 acres from R4 (Multi-Family Residential) and 11 (Light Industrial) to R1 c (Single Family Residential). He stated that the school district is also . . . 716.06 - LICENSE RESTRICTIONS 1. City may Disapprove Premises per.mit based on the following Requirements: 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. 11. Failure to make reports required by any applicable ordinance, rule, regulation or statute. 111. Any reason which would justify the Minnesota Gambling Control Board in denying an application for a license. 2. No Premises Permit or renewal will be approved unless: A. The organization is conducting the lawful gambling on the premises 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 requirement if approved by the City Council at the time of the Premises Permit renewal. 3. Number of Premises per.mits Allowed: A. Only one (1) premises permit shall be allowed per premises for lawful gambling operations. B. Only one (1) premises permit shall be allowed per organization for lawful gambling operations. . . . 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. 2. 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 gambling 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 gross receipts, expenses, profits and expenditure of profits from the Elk River Operation.