5.6. SR 05-04-2009~lk ~ REQUEST FOR ACTION
River
~a ~~~ ~lum~er
i ouncii 5 ~ 6 .
Agenda ectian Meeting C~at~ Pr~pa,~red by
~d~.ist~atian ~a 4, ~a~9 Tina ~.ll.atd, Ci le~i~
l~em ~eriptian Reviewed ~y
onside Caar~b~in ~rdi~ance .~menchnent La~i~oh~san, ~ Adrx~inistxator
Rev~e~red bar
A~tian Repueted
ounci~ ditec~iat~ on the fallo~vi~:
1 ~ hould outside a~a~rzat~ons be a~Zoed to have p~ernises pcrits?
2~ hauld the T`xade Area Percent be charged?
3. Sho~.~~d the nuinbe~ o~ gan~b~trg locations ~n €~~'ga~~i~ation is al~o~red to have be set to a di~~'etent
li.t?
~. should a 1a°lo onttilautfon Fund be c~e~.ted~
~,. If created, would it ~e it addi~ian, to the 75~1a ~a~vfui purpose ~e~l~e.ent off: included in
this total?
5. ~houid these be ~ loci. a.mblirg tai at~ an in~restigatian feed
The Council could ~,la leave the ordinance as is~
B~ck~au n dlDrscu~~an,
.~~ the ~~ii~ ~ Council ineeti.ng, Yeith I~e~.nis, riep~;eserrtii~ r~`im.e but Restau~:ant, ~e~uested a change to
the gambling ordinance ~ o~de~ to allow o~ga~i~atians located outside the city's Made a~c~. to operate
p~ei~ises pc~its d~~e to the di~~iculty of betting a local aigani~atior to ape~ate Born his est~.b~ishinent.
Cu~•~ent licen.secs have been. invited to attend this ~neeting,
Some additional items the Cau~acil may wart t~ discuss prior to an a~dinance ai~nerdn~c~.t.
~. hound outside o~~an~~atio~s.,_~c alln~e,_ta h~.ye, ~a.~exnises pe~:m.i.ts?
'~`~ais varies a.nzalag cities, zany cities that ~e~ui~c or~~.nizatior,s to be located tl~ei~ trade a~ca Felt
that laca~ orani~a~oi~s ~vo~.~ld be rr~ofe lil~ely to spe~.c~ the ~t~~.ds loc~.lly, ilk River did have a~ issue
with aloe o~•gani~a.tion in the past,
~. ~houid tine rr'~ade_.~~ea Percent he chaned~
The city is a~~o~red to ~eciu~e o~ga~.izatio~s to spend a~ a~ a potion of their lawful puxpase
expenditures ~ the city's tiadc area. dame o~gari~ations ina.y also h~.vc state and national
cainixxittnents they ~nust ~ulf~l ~~f darxating f i~~.ds.
.S;~~L~IT11Il1tit1'7CI~l~l~~rc~~n7ci1 I~CA~I~i~ci~sin~;~~Jam~~in~~~}~9~Orci D~~~'tgDirecticm,doc
chart sho~rs funds spent in trade area b~ current licensed ~rga~i~tions,
A~rrerican eagles "Youth ~uarterhack !.ions
Legion Club Ho~l~ey Club Club VFVII
at Le `on at Fa ~l~s at McCo 's at'~~itnc aut at ~r~adwa at Sunshine Dc ,
January 33°I° ~4°fo 0°fa Oafa 4?a/a }3°I~
February ~°f° ~°f° 0°fo ~°fa ~ ~~°fo 1 ~~°fp
Larch ~-Z°fa ~~°fo ~ ~~°la ~°fo ~°fu Sb°fo
~~~~~ ~~~Ia ~~4f0 1~V°fp ~~~~~° V l~fV !`tpf0
~~~ ~~~fU ~!°f0 ~°~° ~~~~fp 1~~~f~ ~9°/a
~~~~ ~J~IU ~a/0 ~~f° ~~fp ~~~f0 ~}~~f0
~~~~ S8°fu 97% ~°f~ 100°fa ~~°/u 70°fa
August o°fa ~~°fa ~°f~ ~~~~ ~~°fa ~~~f°
September 0°Ia 0°/0 ~°/o ~°fa 81 °fo ~8°fo
October ~% 97°/p 0°fo Dplo $~°/a 55°f~
IV~~~~~~~ ~~f0 7~ °f4 ~~f0 ~~IO f ~pf0 ~`t~/a
Dece~nb~r ~°l0 9~°fo ~°fo ~°fo ~3°fp 7°I°
To~~! 7G°f° SG°fo 100°fa 100°fo 74afp 77°fo
should die num~cr of a~nhljn Xoca,tions an 4r a~i~atian. is ~llo~red to have be set to a different
lin~.t?
~~ ~~uncil would ~iX~e to l~ecp the residenc~r requirement, they couid change the numhex of laca~.ons
that one organiz~,t~on c~uid have in the city, 7t is un~no~n if any of the current organi~a~.ons would
be wi1~n to have anathex• pert located at Ti~n.c hut,
4. should a ~ l~°/o Congibution Fund be created?
e'er state lam the city inay require orani~at~ons to congihute up to 1 ~°fo per yeat• of net profits to a
fund that the city adtn~n.i~tef•s, There are 91 cities that h~.ve this fund, ~~"he r~one~ can on1~r be used
for laf~tl purposes, police, ~~;e, and other ernefgenc~ or public ~afet~ rebated services, eq~i rnc~~t,
and gaining. ~ee a.ttachent fot~ allo~vahZe expe>~ditlifes,~ The advantage with setting up this find is
~t mould a11o the city to respond to some requests for donations it might not noa~~~~aliy have the
authar~ty to do ~i. its own money,
dtherebealoe
~, hou1 ,. . ~a~x~hlin tai ,o~•..~.~. in~est~~ation £ee~
The city naay i~np~se a atnblin tax or• an investi anon fee on a~l~blin , ~"he tai u t~ 3°
g g g p to per year,
mar be i.p~sed only if the amount is necessary to saver the costs to regulate gamb~ig in the ci .
T
here ~,ie ~4 cities that fequ~re a ga~nblin tax, staff feels that there isn~t e~oula justifiable cost to
the city that would need to be recouped through this ta.x or for ~.~ investigation fee.
~ina~~ci~l ~m~act
Zf the city had a ~O~/Q fund esta.hl~shed in ~~~8, ~,ppro~itnarely ~~ ~,~0~ au~d ha~Te go~ae to the Fund, ~e
~ direcdy recei~red ~~ from argai~i~ations for i~erns such as ~a,fet~ ~arnp, ~~ should be further noted
that organisations have been stxulin over the last tuFo quarters due to the econatn ,the snxol~in ban
Y g s
and sta.tc tai burdens,
A~ta.~~ rn ~ nits
R purvey of ten clr~cs
' Fetter from. Lions iul~
1 ~°lQ ongibution Fund ~llo~va,ble L~,~vful Purpose Expenditures
current garnlaling ardinat~ce
~f~~iTlii]1Str~,ti0r1~~,Otli7Ci~ )~~~~~I.,iC~ri511~~~~~ambrin~~~~~~~Qz~ I~~~Fk~ Uir~ction,~UC
~~
r ^~
~~~
ilk River Lions lib
~k River, N 5~ ~ ~
Licer~~e 4~~57
~-3~-~~
City of E11~ River
~ 3 ~~~ Orono ~arl~way
Blk Diver, MCI X5330
Attn: Tina Allard
its der
Dear Tix~a;
/a~- ~
t'm sending you information eancerning ]a~vfut gambling dar~a~ion~ made in tf~e Ells River trade area in ~~~~.
e have tvva sues, one a.t Broad ray in >~lk River, and ane at Tootsies in Big I~alce~
~ro~ts for both sites wexe $~~,9~7.21 for >~lk Ri~rer and $44,~ ~ 1,~2 far Big fake.
e had a total of $2~,D7o ire donations in the Elk River Area in ~8.
l~nclosed is ~ Site Profitability alculatioti prepared by ~ohr~son, Bruns o, CFA's. Dui to the fait ~e l~avc
tvva sites it was it~perativc that we had accurately calculated the profits between sites.
I ur~derstan~ that ~~~ jty of~ll~ River is reviewing its La~ful arnbRiug Drdina~ces. The ~,~ River Lions flub
arr~hling ~o~~ittee has some concerns about clxangestr~ the gambJir~g ordinces,
Vie a~ ~veJl as other local organi~a~xions have been really sfrugg[ing to stray in b~~siness clue to a sharp drop in
sales, The pair econo~ny ar~d tl~e loss ofbusiness incurred when e smoking ban 'ant info effect, leas had a
detrimental effect on our sales.
We would urge you to keep tl~e local donatx~t~ ~ E~~it at 75°Io,
,~llaw local charixable orgatzi~ations to Dave fore than ar,e site and have preference over outside organizations.
~~tll~C~ arc no local organisations Willing to II~V~ charitable garnl~ling at that site, ~l7cn' iet others do so.
Da not create any new tapes or fees as it will sorely put us out of bnsit~ess, as charitable gambling organizations
arc Tieing clasir~g sites due to not being profitable, 'fie are being taxed out ^~' e~YSlencc at the State bevel as it ls,
~Tery feu cities rn 111~ir~nesQta have ~ 1~~I~ Fund ar ~% tom, e cannot afford any new expenditures ar fees e
plan o~~ attci~di~~g the ~~ ~nuncil mrceting on ll~ay 4~ Please contact me if you have any questions.
//~~.
ti•iiwnna•ra ~,
s..11111r~+1 Vi~'!
~`heresa Brady
7~3'~41=~$~~
Crambling tanager
811 River lions CJub
-~~: _._
n_~; ..
.. ~~~~
^'•. ~w
_~~-~,,
~.,~T;~A=..
~::;_
~:.=_~:
=__-_
~,..
=-t
- :~:
- •~.-:~-
- ..~-
_ ~::
. C'::= ~:
- ~_ ~' =~
_ - : ~~.
~ _ ~~
~~ v.:
~ . - _~~ ==-u ~
~;^;,
- _- -
_ - -__
V ~= - _ -
F ~~~= _
Q __~~-:-~:::;
- - - _.~,_
--~:~i;.
- . ~ ~~~ LL~~ ~
-_--:~_~
~~.:~-
_ -=rye--
:^__=:-
_ '-=.
;:.:~~ __
- - ~.:
- .:~:
_r.~;T .
:~::;.
-- =::V::~-~= ~
_ _._: ~
_ r~l:~=
:~-.
_N~~.-
._ __
_- =~C~
_ _~_:,; -
=,'T-~
~y~~: __
:= =
- -_~±~~_
r~::.:~.
~=
-~ --
-~`
O
~ ~
'~
~
~ ~ ~
Q.~ ~ ~
~. ~ {}
~ ~
~
~ ~
O U ~
~ ~
~ ~ '
~ ~ ~ ar ~ ' ,b ~
~ ~
~
~~
~~ ~
~ ~ z ~
~,
~
~
~~
~~
~ ~
~
~ ~
~ ''~
0 ~
~
~ ~ ~ ~
~ ~
~ ~
D~ v
U
,' ~
~ ~ ~
,~ ~ ~ ~
' ~ ~~ ~ o
,~ ~ o ~ `~
~~
~ ~ ~~~
,~
~~ ~ a o ~ f~
~ ~~ ~~ ~
0
Q
~ ~~
~ ~ ~ ' ~
a
i
~
~~ D
~ ~ ~
a~
a~~
G ~o
~ o ~
ro ~~
'
~ q
U U V U W ~
~ ~
~ ~
0
'~
0
~ *'
~ ~
+ v
,~
,~
a~
~~
~ ~
a ~,
:~
U
~ ~
~.7
4
.q
0
;~
.~
J
k~'1 ~~ V~
_....~,. ~..._ __ 1
A ~~de ~har~table oontribu#ian fir; ~~ -~_,.,...__~..~.. __~_~....,~..,.,~- _,.._~.~.. ,,..~
~~ ~`o ~~ ~c}~~~ organisation ar ~D~ ~~}~~~ festi~ral organization
A~ Relieving ef#ects of poverty, homelessness, or disability
A3 Program far education, prevention, or treatr~ent of problem gambling
A4 Pubfic or r~vate non refit sch
P ~ oal
A5 Scholarship fund
i
~~ Recognition of military service {open to public) or support far active mi~ita E
t
personnel and their immediate family members in need
A~ Activities and facilities for yaut#~
4 ~
A~~ E~ependitures far police} fire, aad other emergenoy or pablic safet -related 1
services, equipment, and training. N0~" -~I~~OV~JE~; enio ~
A~~ Church p nor retirement funds
l A~3 IlUitl~ ~N~ approval, ~iidlife management pro~ectsJactivities that benefit ~
public~at~large; grooming and maintaining snomobiie or all,terrain vel~icie
trails, ar other trails open to public use; supplies ar~d ma~eriais far
~ Df~R~coordinted safet trainin and e
Y g ducaticn programs
A~4 Nutritior~a! pragrarns, foal shelves, and congregate dining programs ~
primarily for persons ~ or alder or disabled
A~ Community arts organizations, or sponsorship of community arty programs
A~~ I~urnanitarian service recd ni~in vaiunteeris
` g g mar pf~ilanthropy
A ccntributior~ ray not be made to an organizatiar~ ti~at contributed to the fund,,-mm,W", ~.~__~
ARTfCLE ~. I„~~LIZI~D AIUII3LIIV*
ARTILY V, L~A~I~Z~D J~I~fB~IN~
Rage 1 of
#ate law references; Lavuful gambling and gambling devices, Minn. tats. ch. X49; lava! regulation
of gambling, Minn. Stat, 49.1 ,
dec. ~8-~~~. Definitions,
Tha follov~ing ~rards, terms and phrases, vuhen used in thin article, shall have the meanings
ascribed to them ~n this section, except ~uhere the context clearly indicates a different meaning:
ar~b#r'r~g or~~ro# divfrar~ means the state agency that licenses and regulates gambling,
Lawfu# ~ar~blir~g r~eans the aperatiQn, conduct, or sale of bingo, raffles, paddle~uheel,
tipboards, and pull»tabs.
La~f~! pr~rpose means a~,y expenditure by, or contribution to, a ~~ ~c}~~~ organization,
provNded that the organi~at~on and experrd~ture ar contribution are in conforr~rity with standards
prescribed by the gambling control board under Mi nn. tats, 349. ~ ~4.
#~e~p~afi~ means gross profit less reasonable sums actually expended far allo~vable expenses.
Drgarrrza~r~r~ means a religious, fraternal, veterans', or other nonprofit entity ~uhich has been in
existence far at least tf-ree years, has at least ~ active members and i not in existence solely far the
purpose of conducting gambling.
~rarr~rse~ ~e~## moans a tv~ra,year permit granted by the state gambling cantrol board far each
premises where lawful gambling is to be conducted,
~~aa~e area means all cities contiguous to the pity of ~Ik River, including the pity of Elk River,
the pity of Otsego, the pity of Rogers, the pity of Ramsey, and the pity of Timmerman,
code ~~s~, ~~~.oo}
Cross references: Definitions generally, ~-~,
~~ ~8~~ ~2, Purpose ~f article.
. It is the stated policy of the city council that, to the extent la~rful regulated garr~bling is permitted
within the city, the net profits and proceeds of gambling shall directly benefit the citizens of the city.
(Code 1982, § 716.02)
e. 3~^~ ~3. Licenses and hermits generally.
~a} It shall be unlawful to operate lawful gambling without a license issued by the state
gambling cantrol division.
~b~ licenses to operate gambling devices or to conduct raffles shall be issued only to a
fraternal, religious, veterans'} or other nonprofit organization covered by Minn, tats. X49, ~ ~.
~c~ The organization desiring a gambling license must obtain an application from the state
gambling control division.
I~ttp;111ibrary4.munic~de,corr~lde~a~lt-~estll~acll~er~vl~ ~~1~15~41~ ~41~I~aa
ARTICLE V. LEALI~E~ ABLIN~
Page ~ of
~d} The gambling control division may not issue ar renew ~ premises permit ar bingo hall
license unless the organization subn~'fts a resolution frorr~ the pity council approving the
premises permit or bingo haf l license, ~"he resolution must have been adapted vuithin Bg days of
the date of application far the near or reneged permit or license,
~e~ ~ premises permit issued by the gambling cantral division is valid fort~ro years
{Code ~ 982, § 716.04)
state lam references: License generally, ll~inn, Mats, fig, ~ ~,
dec. ~~~64. Re~rition on issuance of premises permitr
~a} The city reserves the right to disapprove a premises perrr~it application far individual bingo
occasions, raffle games, and pull~tab operations for any of the fallauving reasons:
~~} 1liolation by the applicant of any statute, rule, regulation or ordinance relating to
gambling,
~~} Failure to make reports required by any applicable ordinance, rule, regulation ar
statute.
~~} Any reason ~rhich would justify the state gambling cantral board in denying an
application for a license.
fib} No premises perrnft ar rene~ral v~ilf be approved unless;
~~ ~ The organization is conducting the lau~ful gambling on the premises of a church or a
fraternal, veterans', or other nonprofit organization, or on the premises of an on-sale
liquor license of the city
~} The physical site far the oranizatianrs headquarters ar the registered business
office of the organization is located ~vithin the city ar a city contiguous to the city, This
requirer~ent nay be waved for an existing organization which does not comply with this
requirement if approved by the city council at the time of the premises permit renev~al.
~c~ only one premises permit shall be aflov~red per premises far lav~ful gambling operations.
only one premises perr~it shall be allowed per organization for lau~ful gambling operations,
(Cade 1982, § 716.06)
dec. 38~~5~ Lavrrful purpose expenditures by ot~ganiza~ions condu~~ing er~bling,
~a} For purposes of this section, the term "trade area" shall mean all of the follou~ing areas; the
pity of Elk River, the pity of Ramsey, the City of Otsego, the pity of Rogers, and the pity of
Zimmerman
fib} Any organization holding a premises permit to conduct lav~ful garbling v~rithin the city shall
be required to e~cpend ~ percent of its grass profits derived from lar~ful gambling within the city
an lavuful purposes conducted ar located within the city's trade area,
~c} An organization that conducts gambling on fewer than five days in a calendar year is
exempt Pram the requirements of this section.
(Code 1982, § 716.x8)
state laver references: Authority to so provide, IUlinn. Mats. 49,~~ , subd. ~ ,
~, ~~~6~ Reporting requi~en~ents.
http:l~library4.rnunicode~coml~e~~uit~test~DacViev~1~ ~~~~~1~~19 a41~91~~~9
ARTICLE 11, LEGALIZED AfUI~LIN~
Page of ~
~a} Every organization licensed to conduct gambling in the city shall file with the city clerk
copies of the monthly state gambling report and schedule required to be filed with the state
lawful garnbiirt control board pursuant to Chinn. tats, ch. ~~~. The records and reports shall be
due at the same time they are due to the gambling controC baard,
fib} Every organization licensed to conduct gambling in the city shall file Frith the city clerk an
annuaC sur~mary report of the expenditures for lawful purposes within the trade area,
~c} Organizations conducting garbling activities in other cormunitie as well as the city shall
segregate the gross receipts, expenses, prafits and expenditure of profits from the Elk River
operation,
{Code 1982, § 716.10)
Stake law ~efierences: Records and reports, ~Ilinn~ tats. 3~9, ~ .
secs, ~8~~ G7--3~-~ ga. Reserved,
http~lllrbrry4~n~unicode~comldefult-tefilDocl~iewl~~~7~~Ib4~b~ ~412I00~
Hi Tina,
Thank you for the notice of the meeting, I'm not quite sure where we are on this,
Keith has been in the hospital since Friday the 24`h of April, I know he attended the last
meeting and informed me that research had to be done before the council decides on the
issue.
As far as the issues on the sheet:
1. The organizations in the city that wish to do pull tabs are already doing them at
establishments, and with them only being allowed 1 establishment in town, they
can not take on another establishment. Leaving the only source of a Charity to do
pull-tabs from out of town.
2. I am not sure what the trade area percent is.
3. In a time when pull tabs are declining, it is becoming more difficult for the
Charities to make a profit, by increasing the amount of booths that a Charity
may have, that would increase the sales volume while the administrative cost
to operate one booth compared to two booths would hardly change, allowing
the Charity to increase it's revenues and thus the contributions of the charity.
4. If you manage, operate, or own a business in Elk River, you are already being
visited 4 or more times a week looking for a donation, and the area that the
groups are coming from is growing, we see people from St. Michael to
Princeton and from Monticello to Anoka looking for donations, the only thing
since the pull tabs have left, it has made us more selective in the cause for the
donation and the amount of the donation. We tend to look for Charities that
are helping the most people, like, any time we have a band, the suggested
cover is a food or cash donation to the CAER food shelf, donations for
individual causes are less likely to get a donation, and the schools will be
basically local this year. The maximum an establishment can get from apull-
tab booth is $1750.00 per month, and last year it ranged from $600.00
$1100.00 per month, so, 10% would actually be a decrease in what we are
currently donating.
5. A gambling tax? ,That would involve a lot of items, I mean, gambling
involves paying to play a game of chance for money or a prize, so that would
have to include pull tabs, bingo, raffles, lottery, and scratch offs, all are legal
within city limits and are performed by organizations of all types, including
the state. All are forms of gambling, and all are operated by Charity, can you
discriminate from one form of gambling or another, or one charitable group or
another.
Due to Keith being in the hospital, I can not attend, for I have to work, being short
handed for the time being, if you have any questions or concerns, please feel free to give
me a call at home Monday until 3:30 at 763-274-0747, after 3:30, I will be at Time Out at
763-441-4443 or you may email me at jjpkaul~aol.com. Thank you for your time and
consideration.
John J Kaul
General Manager
Time Out Restaurant & Sports Bar