9.2. SR 08-19-2019 E04y1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 9.2
Agenda Section Meeting Date Prepared by
Work Session August 19, 2019 Jessica Miller, Deputy Clerk
Item Description Reviewed by
Ordinance Amendment: Gambling Tina Allard, City Clerk
Reviewed by
Cal Portner, City Administrator
Action Requested
Provide staff direction on whether to explore an ordinance amendment for the items outlined below.
Background/Discussion
Staff has recently been contacted by three different individuals requesting amendments to our gambling
ordinance.
1. Elk River Youth Hockey Association (ERYHA) is requesting one organization be allowed
up to four premise permits.
Ordinance allows one organization up to three premises permits. The ordinance was amended in
2017, at the request of ERYHA, to increase the number of permits from two to three.
2. Tipsy Chicken is requesting an ordinance amendment allowing Big Lake Spud Fest to
operate at their location. Big Lake Spud Fest business office is located in the City of Big
Lake.
Ordinance requires an organization to have their offices located in our trade area which includes:
Elk River, Otsego, Rogers, Ramsey, Nowthen, St. Francis, Dayton,Zimmerman,Big Lake
Township,Livonia Township, and Orrock Township. The city's trade area includes all cities and
townships contiguous to the city. Big Lake is not contiguous to Elk River.
3. Broadway Bar and Pizza would like to allow two organizations in one location.
Current ordinance allows only one permit per location.
Financial Impact
N/A
Attachments
■ Premises Permit Organization Information
■ Staff Report and Minutes Dated October 16, 2017
The Elk River Vision
A PehoMing community Pitb revolutionary and spirited resourcefulness, exceptional P,`01 W E H E 8 6 T
service, and community engagement that encourages and inspires prosperity INAMIRE1
Organization Premise Permit Location
Elk River Lions Broadway Bar and Pizza
KJ's Refuge (Orrock)
Eagles Club Eagles Club
Elk River Youth Hockey Association McCoy's Pub
Sammy's Pizza
Buffalo Wild Wings
Bootleggers (Nowthen)
Riverwood Tavern (Otsego)
VFW Sunshine Depot
Zimmerman Fire Relief Association American Legion
Chow (pending)
Angenos (Zimmerman)
Fairway Shores — seasonal (Baldwin Township)
Zimmerman Bowl and Cafe (Zimmerman)
Cry of
Elk.
liver
Mavor and Ciry Council
Request for Action
Item Number
8.2
Agenda Section Meeting Date Prepared by
General Business I October 16, 2017 Tina Allard, Circ Clerk
Item Description Reviewed by
Gaming Premises Permit Restriction Cal Portner, Citi, Administrator
Reviewed by
Action Requested
Provide staff direction on an ordinance amendment to allow one organization more than two premise
permits.
Background/Discussion
The Elk River Youth Hockey Association (ERYHA) currently has two Gaming Premise Permits for pull
tab sales in Elk River. They have been approached by Buffalo Wild Wings to consider a trial gaming
operation. City ordinance restricts organizations to two permits and ERYHA requests an amendment.
In 2009, a restaurant owner requested Council allow organizations located outside the city's trade area to
operate premise permits due to the difficulty they had getting a local organization to operate in their
establishment. At the time, only one premise permit per organization was allowed. Council voiced
concerns with allowing outside organizations to obtain permits because there had been previous issues
with an organization not spending funds in the city's trade area. Council approved an amendment to
raise the allowable number of permits to two.
Council could change the ordinance to allow up to a certain number of permits or be silent on the
number an organization can have. State law does not set a limit on the number of permits allowed per
organization. Cities typically have a limit ranging from 1-3 per organization.
Premise Permits are state issued but require a Council -adopted resolution for local approval. The permits
are perpetual and not terminated unless the organization ceases operations or there are issues with state
law compliance.
A limit of 1-3 permits is rational and allows for multiple community organizations to operate gaming
programs. Gaming operations are very highly regulated by the State of Minnesota, which frequently
limits the number of eligible or interested taorganizations.
Financial Impact
N/A
Attachments
■ FRYHA Request
The Elk River Vision
A welcoming community v4d) revoh{tionary and spi fed resourcefulness, exc ptional 0 N E 9 E 8 e r
seivice, and community engagement that encourages and ins piresprospe,zty1ATI IC
Portner, Cal
From: Eryha President <eryhapresident@gmail.com>
Sent: Saturday, October 7, 2017 3:19 PM
To: Mayor John Dietz; Portner, Cal
Cc: Desiree Hillman; eryhasecretary@gmail.com; Timothy Jeanetta
Subject: Elk River Youth Hockey Gambling Request
Hello, John and Cal,
Elk River Youth Hockey was approached by Buffalo Wild Wings to put a pull -tab machine in the Elk River
BWW for a trial run of 6 months. We would like to request the City of Elk River grant us a third gambling
license to allow BWW this trial run.
Can you let me know if this is possible and if so, how we would go about completing this process?
BWW is looking to ERYHA provide an answer ASAP. Do you think you could let us know either way in the
next couple of days?
Thank you!
Kelli Swart
ERYHA President
eryhapresi denti2onai 1. com
City Council Minutes Page 3
October 1G, 2017
-----------------------------
Mayor Dietz noted although he voted against moving forward with this project,
ultimately the Council voted to move forward so lie will continue to vote on all the
processes for the project.
Councilmember Ovall expressed the same comments.
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to approve the request for proposal for construction manager services.
Motion carried 5-0.
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to obtain quotes for commissioning services.
Motion carried 5-0.
8.2 Gaming Premises Permit Restriction
Mr. Portner presented the staff report.
Council directed staff to move forward with an ordinance amendment.
8.3 Local Option Sales Tax Consideration
Mayor Dietz discussed the process for implementing the local sales tax option. He
expressed the following:
■ Main concern with the sales tax was whether vehicles were taxed but found
they would be exempt.
■ The local sales taxes currently being collected by surrounding communities.
■ The amount of revenue generation.
■ Sales tax would be fairer than a property tax. He provided specific examples
of how property taxes would be affected if utilized.
■ With a local sales tax everyone helps pay for the project.
■ Seniors buy fewer goods so they would pay less.
Mayor Dietz stated he didn't expect any decisions tonight but wanted to evaluate the
option. He further suggested looking beyond the arena, such as park maintenance.
Councilmember Westgaard questioned if the tax could be collected for non-specific
uses.
Councilmember Ovall felt:a sales tax would be regressive. He stated it is an undue
burden and would put businesses at a competitive disadvantage but at the same time
neighboring communities are utilizing it. He stated property owners still have to pay
the tax but noted this option does get passed onto tenants.
ION'EAEIOA'E'
1S