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3.6. & 3.7. SR 08-27-2001MEMORANDUM ** Item# 3.6. - 3.7.** TO: FROM: DATE: SUBJECT: Mayor and City Council Sandra Peine, City Clerk August 27, 200 I Premises Permit Renewal for VFW REQUEST The Elk River Rogers VFW has 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 12/01/01 - 11/30/03. APPLICANT Elk River-Rogers VFW BACKGROUND 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 charts show that the amount of expenditures spent in the trade area during the past 1~ years has been about 97%. 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 1997 to sell pull-tabs at two locations (see attached minutes). 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:\clerk\licensin\gambling\vfwgambmemo.doc VFW GAMBLING REPORTS FOR 2000 AND 2001 COMBINED REPORTS FOR TWO LOCATIONS: · SUNSHINE DEPOT · EAGLES CLUB VFW- AT SUNSHINE DEPOT AND EAGLES CLUB - 2000 TOTAL ELK RIVER ELK RIVER OTHER OTHER MONTH EXPENDITURES MONEY PERCENT MONEY PERCENT JAN UARY $3,586 $3,586 100°A SC 0% FEBRUARY $4,261 $4,211 99% $5(: 1% MARCH $5,994 $5,969 99% $2." 1% APRIL $1,946 $1,946 100% SC 0% MAY $957 $857 90~ $10C 10% JUNE $3,310 $3,160 95% $15(: 5% JULY $1,73§ $1,539 88% $20C 12% AUGUST $876 $876 100% $(: 0% SEPTEMBER $2,150 $2,150 100% $C 0% OCTO BE R $4,871 $4,571 94°A $30(: 6% NOVEMBER $3,184 $2,984 94% $20£ 6% DECEMBER $4,04§ $3,894 96% $20(: 5% TOTALS $36,92,3 $35,743 97% $1,22~. 3% VFW AT SUNSHINE DEPOT AND EAGLES CLUB - 2001 TOTAL ELK RIVER ELK RIVER OTHER OTHER MONTH EXPENDITURES MONEY PERCENT MONEY PERCENT JANUARY $3,624 $3,524 97.00% $100 3% FEBRUARY $1,561 $1,561 100.00% $0 0% MARCH $2,58~ $2,529 98.00% $60 2% APRIL $1,12¢ $1,120 100.00% $0 0% MAY $3,095 $2,895 94.00% $200 6% JUNE $4,67c~ $4,629 99.00% $50 1% JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTALS $16,668 $16,258 98.00% $410 2% s:Xclerk\licensinXgambling\vfwchart.doc RESOLUTION 01- A RESOLUTION OF THE CITY OF ELK RIVER A RESOLUTION APPROVING PREMISE PERMIT RENEWAL FOR THE ELK RIVER-ROGERS VFW POST #5518 (SUNSHINE DEPOT) ~rI-IEREAS, The Elk River-Rogers VFW Post #5518 has made application to the State Gambling Control Board for a Premises Permit Renewal; and, WHEREAS, the Premises Permit will allow charitable gambling on the premises of Sunshine Depot located at 701 Main Street in the City of Elk River; and, WHEREAS, The Elk River-Rogers VFW Post #5518 has met the city's requirement of spending 75 percent of its lawful expenditures within the city's trade area during the past two years. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota that a Premises Permit be granted to the Elk River- Rogers VFW Post #5518 to allow charitable gambling operations at the Sunshine Depot; 701 Main Street, Elk River, Minnesota. Passed and adopted this 27th day of August 2001. ATTEST: Stephanie Klinzing, Mayor Sandra A. Peine, City Clerk s:\clerk\licensin\gambling\vfwsunshinereso.doc RESOLUTION 01- A RESOLUTION OF THE CITY OF ELK RIVER A RESOLUTION APPROVING PREMISE PERMIT RENEWAL FOR THE ELK RIVER-ROGERS VFW POST #5518 (EAGLES CLUB #3264) WHEREAS, The Elk River-Rogers VFW Post #5518 has made application to the State Gambling Control Board for a Premises Permit Renewal; and, WHEREAS, the Premises Permit will allow charitable gambling on the premises of Eagles Club #3264 located at 824 Railroad Drive in the City of Elk River; and, WHEREAS, The Elk River-Rogers VFW Post #5518 has met the city's requirement of spending 75 percent of its lawful expenditures within the city's trade area during the past two years. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota that a Premises Permit be granted to the Elk River- Rogers VFW Post #5518 to allow charitable gambling operations at the Eagles Club #3264; 824 Railroad Drive, Elk River, Minnesota. Passed and adopted this 27th day of August 2001. ATTEST: Stephanie Klinzing, Mayor Sandra A. Peine, City Clerk s:\clerk\licensinXgambling\vfweaglesreso.doc e_ity Council Minute'~s ~ 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. COUNClLMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.4. Charitable Gamblinq 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, FROM THE ORDINANCE AMENDMENT IN THE FOLLOWING MANNER:  LOW THE VFW TWO PREMISES PERMITS FOR UP TO TEN YEARS FROM THE~ ORDINANCE AMENDMENT; ONE AT THE SUNSHINE DEPOT AND ONE AT LUB, PROVIDED THE PREMISES PERMITS ARE RENEWED UNDER THE CITY ~ ATE 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 DIET~ VOTED AGAINST THE MOTION. 6.1. 6.2. 6.3. lSD # 728 Request for Zone Chancle, Public Hearin.q, Case No. ZC 97-6 lSD # 728 Request for Land Use Plan Amendment, Public Hearin.q Case No. LU 97-5 lSD # 728 Request for Conditional Use Permit Case No. CU 97-21 Zone Chanqe/Land Use Plan Amendment City Planner Steve Ach indicated that lSD # 728 is requesting to rezone approximately 20 acres from R4 (Multi-Family Residential) and I1 (Light Industrial) to Rlc (Single Family Residential). He stated that the school district is also 716.06 - LICENSE RESTRICTIONS 1. City may Disapprove Premises Permit based on the following o o 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. 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 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: 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. Number of Premises Permits 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 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 ExDenditures 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.