5.7. SR 05-08-1995/-
~lk Ri
MEMORANDUM
TfiPm 5.7
v TO: Mayor and City Council
• ~~ FROM: Sandra Thackeray, City Clerk
DATE: May 8, 1995
SUBJECT: Consider Amendment to Charitable
Gambling Ordinance
INTRODUCTION
The City presently requires all charitable gambling organizations in the city
of Elk River to spend seventy-five percent (75%) of its expenditures in the
city's trade area. The Elk River's trade area consists of the cities of Elk
River, Otsego, Ramsey, Rogers, and Zimmerman.
BACKGROUND
At the request of the Mayor, I have researched the possibility of the city
• increasing the required 75% expenditure. According to state law, a statutory
city may require a licensed organization conducting lawful gambling within
its jurisdiction to expend all or a portion of its expenditures on lawful
purposes conducted or located within the city's trade area.
Listed below are the charitable organizations that have operated in Elk River
since 1991 and the amount of expenditures expended in the city's trade.
TRADE AR E A PERCENT A GE CHART
ORGANIZATION 1991
TRADE AREA
PERCENTAGE 1992
TRADE AREA
PERCENTAGE 1993
TRADE AREA
PERCENTAGE 1994
TRADE AREA
PERCENTAGE
Jaycees 94% 89% 100% ---
Am. Legion $g% 89% 84% 94%
~'W 93% 99% 94% 96%
Eagles 85% 90% 87% 90%
Camp Confident 81% 71% 75% 0%
Celebrity Bowl 100% 100%
E.R. Hockey
• Elk River Lions 100%
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
•
C]
Council Memo/Pull Tabs
May 8, 1995
Page 2
Attached is a draft of the ordinance amendment relating to the percentage of
lawful expenses required to be spent in the city's trade area. I have left a
blank in the amendment relating to the percentage requirement. Although
most organizations have contributed close to 90%, there are some
organizations that have contributed less than 90%.
I understand from talking to a couple of gambling manager that oftentimes
organizations have state and national commitments that they must fulfill in
regard to donating expenses. One organization that I spoke to indicated that
they have a commitment of twenty percent (20%) that must be spent for
certain commitments such as Ronald McDonald, etc. Another organization
indicated that they would be opposed to the Council increasing the 75%
requirement. Both organizations indicated that they would like a chance to
appear before the Council prior to the Council considering an amendment to
the ordinance.
Therefore, the Council may want to consider having staff contact all of the
gambling managers to allow them the opportunity to speak to staff or council
on this issue prior to amending the ordinance.
ACTION REQUESTED
Staff recommends that Council continue action on this issue until staff can
contact charitable gambling organizations to inform them of this proposed
ordinance amendment.
attachment: Ordinance Amendment
s:\council\pulltab. doc
•
• ORDINANCE 95-
An Ordinance Amending Section 716.06 -Pull-tab Regulations - of the
City of Elk River code of Ordinances
The City Council of the City of Elk River does ordain as follows:
Section 1. That Section 716.06 (2), (B), (ii) - be amended as follows:
ii Pursuant to Minnesota Statutes Section
349.213, ee~xe~y-~iJae '-~~- of the yearly
lawful purpose expenditures ~r_t r~F'_t^ of any
licensed organization selling H3~F~i~a~r pull-tabs in
the Cit~r of Elk River a: ~'-~^~ ~^••~ ~ must ~a~~ be
expendeds~e~rt on lawful purposes conducted or located
in the trade area of the City of Elk Rivers-c~,=
ite~ts--e~-u~i~ai~i-e~t?~a~ •---- -------1' --------=
e i~i~ e~ e~f the Ef~~-~f' Prl~-~i~r~e~ . e'er .. r .. ,... ,. .. ~
~~-s-s~p~ra~r-air)--; t~~t er~~e~~r-e€~~ 12A 2 2
mean-~~-mo~~e~s-r-e~~~=e~~i~e~t~a; ~ _ ~. r - ~ ~, ., ~ ,. ,~ ~
r~
?~Fi~`"r-crra~tiTrc~t ~ei~3e ee~~ r!-= i' - - -- - -- - - - - -1' --- - - -- - --
• e~ge~rs es r~l~~e~t e t-he--ptrl~ } ~ ~ ~' ~ ~ *~ ~ : '~, ,'~ ~ .
Section 2. That this ordinance shall take effect
and be in full force from and after .the date of its..
publication.
Passed by the City Council of the City of Elk River this
day of 1995.
Henry A. Duitsman, Mayor
ATTEST:
Sandra A. Thackeray, City Clerk
s:\document\ordinanc\pulltab.doc
~~