3.5 Consider gambling permit app from Children's Heart Fund I 3.5
CITY OF
--
00001,4,
CHILNBASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
1 (612) 937-1900 • FAX (612) 937-5739
MEMORANDUM
TO: Mayor and City Council
1 FROM: Don Ashworth, City Manager -N' L-
1 DATE: February 20, 1991
SUBJ: Request for Gambling Permit for the Children's Heart Fund
Effective January 1, 1991, state law requires that all cities must
adopt a resolution either approving or denying requests for
' gambling permits within sixty days of receipt. The Children's
Heart Fund has applied for a gambling permit to sell pull tabs at
the Chanhassen Bowl at 581 West 78th Street. The Chaska Lions Club
' used to sell pull tabs at this location, but have not done so since
November, 1990.
Scott Harr attempted a background investigation on this
organization, but found little or no information to recommend
approval or denial.
1 Manager's Recommendation
The total dollars that can be generated from charitable gambling
(pull tabs) is staggering. Mayor Hamilton had been a proponent of
1 establishing rules which would ensure that these dollars stayed
locally. That proposal did not become adopted as: 1) both the
Chamber and Rotary were involved in a number of other activities
1 and did not feel that they had the time to devote to managing such
an operation, and the Chanhassen Lions were thinking of organizing,
but had not become an organization; and 2) the Chaska Lions had
1 made a decision to carry out management for charitable gambling and
would agree to operate such in Chanhassen. This alternative
received local support as the Chaska Lions had agreed to dedicate
50% of the pull tab monies back to the Chaska, Chanhassen and
' Victoria park departments (based on the percent of revenues
generated from each city) , with the remaining 50% being donated to
the High School Endowment Fund for scholarships for Chaska,
Chanhassen and Victoria students. To date, approximately $85, 000
has been returned to the local park fund with $230,000 being
generated for the High School Endowment Fund. The attached
"Premise Permit Application" appears to be a form established by
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Mayor and City Council
February 21, 1991
Page 2
the state. I find the form totally unacceptable for making a
decision as to whether an organization should be allowed to carry
out charitable gambling within a city. To the best of my
knowledge, the city has exclusive control as to whether we are to
permit charitable gambling or not. The City Attorney is currently
reviewing state statute and is preparing a memorandum to me as to
what the city can or cannot require.
At a minimum, the City Council should table this item to receive
' the City Attorney's response. However, this office would recommend
taking the item one step further. Specifically, I would recommend
that the Council approve a moratorium on gambling permit
' applications until such time as the Public Safety Commission has
reviewed this item. Specifically, I would suggest that they
research issues such as whether we can limit charitable gambling to
existing charitable organizations versus applications such as
attached - a private individual (corporation) deriving "x" amount
as a management fee with the remainder going to the charitable
organization. Other information items which the Public Safety
Commission should consider include:
- Rent: How much is the owner receiving for the leased space?
The attached application shows $600. Per month? Per year?
Per hour? Is this fee reasonable or are we establishing
policies whereby one private individual from Brainerd will
give the bowling center more money than another private
individual from St. Paul - both of which being significantly
higher than what the Chanhassen Lions may offer that
individual; and
' - Management Fee: We have no idea as to the amount of money
which is being generated for either of the two applicants and
' therefore the amount of money that may truly being going back
to the Children's Heart Fund. Again, can we limit these
applications to non-profit organizations whether local or
not?; and
' - City Fees: It is my belief that the City can require a
certain percent of revenues from charitable gambling
' regardless of the remaining amounts that would go to cancer,
heart or other charitable funds. If we are permitted to
establish such a fee, would the American Legion be opposed to
such or have additional input into the final regulations?; and
- Track Record: The applicants allegedly are carrying out
charitable gambling from other facilities with the monies
allegedly going to a recognized organization. The application
process should reasonably include information as to gross
revenue, organization rents, management fees and actual monies
Ibeing collected/dispersed from these operations. Guidelines
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Mayor and City Council I
February 21, 1991
Page 3
should be considered which eliminate applicants who have a
track record of collecting exorbitant management fees and/or
are making preposterous payments to owners - all of which
leading to little or no money being directed to the recognized
charitable organization, i.e. cancer, heart or children's
fund; and
Other Documentation: The attached application is incomplete
in that it does not have a copy of the lease or a sketch plan
attached to it. However, again, this office would recommend
that the Public Safety Commission look at all other
information which may be helpful in determining whether the
proposed application is reasonable or not. '
This office would recommend that the City Council deny the attached
Charitable Gambling Application. Secondarily, staff would
recommend that this item be submitted to the Public Safety
Commission to determine whether policies can be established to
govern future charitable gambling applications and the requirements
for that process. '
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FOR BOARD USE ONLY
FEE
I . . CHECK
INrivaS
LG214 Minnesota Lawful Gambling DATE
I19/5/90) Premise Permit Application - Part 1
rg a oa` ormatioa
Legal Name of Organization
Ch. ldreeNts 14 car 4- 'F,nnol
I Business Address of Organization-Street or P.O Box(Do not use address of gambling manager)
Boo ca s+ a 8"t±' S+r.ee.-+-
City Stale Zip Code County Business phone number
PlmvAeopol,s PAN 55Li97 (-ienvuPio" (4:,12) 8b3-54400
IName of chief executive officer(cannot be gambling manager) Title Business phone number
f oxr(c. S, t re%a� E.N-cc _*,ve p,Ye.c-Ivp 4,/24 963-s`(t,o
I Address of chief executive officer-Street or P.O.Box
Po , Gov 148175
City Stale Zip Code County
M;✓tnerpo l.'s MN 55L/ i2 1--crinep,;,
I Type of Application
Class of Premise Permit
I ❑ Class A— Bingo, Raffles, Paddlewheels,Tipboards, Pull-tabs
22 Class B— Raffles, Paddlewheels,Tipboards, Pull-tabs The CIaSS Of premise permit
❑ Class C— Bingo only must be reflected by class of
❑ Class D— Raffles only the organization license.
Bingo Occasions
IIf class A or C, fill in days and beginning and ending hours of bingo occasions:
No more than seven bingo occasions may be conducted by an organization per week.
IDay Beginning/Ending Hours Day Beginning/Ending Hours Day Beginning/Ending Hours
to to to
Ito to to
to
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If Bingo will not be conducted,check here t
Status of Premise Permit - check one:
IE4 New premise—Fill in glag,organization premise permit number 13- oa g4 2
❑ Renewal of existing premise permit—Fill in pomolete,premise permit number
I ❑ Previously expired premise permit—Fill in complete,premise permit number
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Minnesota Lawful Gambling
Premise Permit Application - Part 2
I
Gambling Premises Information
Name of establishment where gambling will be conducted Street Address(do not use a post office box number) I
Cha"1naSS.e., f3o...41 a•.ol. Lovnci e. S41 IA). ?Fitt' S+re+ Ck kc,sssn At 55311
Is the premises located within city limits? (s yes 0 no
ICity and County where gambling premises is located OR Township and County where gambling premises is located if outside of city limits
Ck4r,hr,SleY. CArver l
Name and Address of Legal Owner of Premises City Stale bp Code I
ubk o Doreik 581 ()u• 78- ,S-treed- GINA,hus.Lt.\ Mry S5 31.7
Does the organization own the building where the gambling will be conducted? ❑YES El NO I
NOTE:Organizations may riot pay themselves rent if they own the building or have a holding company. A letter must be sub- ,
mitted showing rent payments as zero from gambling funds if the organization's holding company owns the premises. The .
letter must be signed by the chief executive officer.)
If NO, attach the following: I
a copy of the lease with terms for one year.
* a copy of a sketch of the floor plan with dimensions, showing what portion is being leased.
A lease and sketch are not required for Class D applicantions.
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Rent:
For gambling with bingo $ Total square footage leased -
I
For gambling without bingo $ ( 'c, Total square footage leased 35
Address of storage space of gambling equipment I
Address City State Zip code
r.=,--;-. 5 S i L.. --?S t C+,--c, _-1- C,l,c h 1,o ccc_ M r) 5-3311
Bank Information I
(each permitted gambling premise.must have a separate checking account)
Bank Name Bank Account Number
N orwes+ 18a,\fc 5-000 (,1 S
Bank Address City State Zip Code I
-11"11 LNnc(klG 4vt Al. M:n�Papo l;s MN .55`/79
Name,address,and title of persons authorized to sign checks and make deposits and withdrawals.
I
Name Address
4- 36,6,es 4 . D, itle
�'f mQ r I a? I r 5 LI Ave.. lVc MrJ cryvz, ('X+ i.4 vital,
Musk S. revrto,,, t?.o- gox it4IN 5 .O ' QG44,01.4 Mn) 554fZ etecK,.i•t a 4.
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P3214
1 Minnesota Lawful Gambling
Premise Permit Application - Part 3
Acknowledgement .
IGambling Site Authorization
I hearty consent that local taw enforcement officers,the board or agents of the board,or the commissioner of revenue or
public safety,or agents of the commissioners, may enter the premises to enforce the law.
IBank Records Information
I The board is authorized to inspect the bank records of the gambling account whenever necessary to fulfill
requirements of current gambling rules and law.
I declare that:
I .I have read this application and all information submitted to the board;ac
All information is true,accurate and complete;
All other required information has been fully disclosed;
I am the chief executive officer of the organization;
I assume full responsibility for the fair and lawful gambling and rules of the board and agree, if licensed,
to abide by those laws and rules,including amendments to them;
A membership list of the organization will be available within seven days after it is requested by the board;
I Any changes in application information will be submitted to the board and local government within 10
days of the change;and
A termin '-. plan will be submitted to the board within 15 days of the termination of all premise permits.
Failure provide required information or providing false information may result in the denial or revocation of the
Sig tare o - ief' xecutive .Nicer Date
. a. _
a1- 44.
Local Go ernment Acknowledgement
1. The city*must sign if the gambling premises is located within city limits.
I 2. The county''AND township"must sign if the gambling premises is located within a township.
3. The local government(city or county)must pass a resolution specifically approving or denying the application.
4. A copy of the resolution approving the application must be attached to the application.
5. Applications which are denied by the local governing body should not be submitted to the Gambling Control Division.
I Township: By signature below,the township acknowledges that the organization is applying for a premises permit within
township limits.
1 Cit •or County** p..
City* CiTy of CNArJHASSEti Township**
City or County Name �1 1 .i Township Name
Signs re of person rvin con
g Signature of person receiving application
Title r Date Received Title I Date Received
/- ,5-9/
I n�, ppki �� . I governing body Date ,
(�
/—"‘C—9 / Is township: ❑Organized ❑Unorganized ❑Unincorporated
•
I Refer to the instructions for the required attachments Mail to: Department of Gaming
Gambling Control Division
Rosewood Plaza South,3rd Floor
1711 W. County Road B
J f M -0M 1,�-- Roseville, ou 55113
I 591 - o � i7
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ORDINANCE NO. 381 ,
AN ORDINANCE AMENDING ARTICLE IV, SECTION 4-57
THROUGH 4-85 OF THE CODE OF ORDINANCES,
CHASKA, MINNESOTA, RELATING TO BINGO AND
LAWFUL GAMBLING IN THE CITY OF CHASKA
THE CITY COUNCIL OF THE CITY OF CHASKA DO ORDAIN: '
Section 1 . Purpose. The City Council recognizes that though "lawful
gambling" as set forth in Minnesota Law, Section 349.11 to 349.22, may not appeal
to all members of society, it is an activity that is engaged in by a significant
portion of the population and the financial profits thereof without the aid of
Minnesota Statutes, Section 349.11 to 349.22, may or may not be used to the bene-
fit of society.
The City Council of the City of Chaska further recognizes that most
charitable organizations and their members provide a much needed and useful ser-
vice to mankind; and the City Council is especially appreciative of the goals
and objectives of all of the charitable or non-profit organizations established
or organized within the Chaska Community; the Council commends these organiza-
tions for their contribution to worthy causes within and without the Chaska
Community and, therefore, the Council supports the purposes for which Minnesota
Laws, Section 349.11 to 349.22 were adopted. '
The ability to obtain a license under Minnesota Statutes, Section 349.11
to 349.22, to conduct lawful gambling in the City of Chaska is a privilege
granted by the State of Minnesota and the City of Chaska and not a right
guaranteed by the Constitutions of the United States of America or the State of
Minnesota. The City Council feels that there are many areas within the Chaska
- Community wherein the profits derived from lawful gambling within the City could
well be spent to the benefit of the community; and, therefore, would encourage
such funds to be used within the Chaska Community.
Section 2. Adoption of Minnesota. Laws as to Lawful Gambling. Minnesota '
Laws, 1984, Chapter 502, Article 12, Section 1 , through and including Section 23,
is hereby adopted by reference the same as if it were fully set forth herein I except as said Laws are hereinafter modified or amended.
Section 3. Limitation on Certain Gambling Sites. No more than one
licensed organization may conduct lawful gambling on any premises at which there
is a gambling site during the same period or periods of time that another
licensed organization is conducting lawful gambling. All leases pertaining to
lawful gambling shall state the days of the week during which a licensee may
conduct lawful gambling on said premises. This prohibition shall , however, not
apply to the conduct of raffles.
Section 4. Limitation on Certain Leases. The following forms of lawful
gambling consisting of paddlewheel , tipboard and pull-tabs may only be conducted
by a licensed organization on permises owned by said organization or on premises
leased by said organization and which premises has a valid "on-sale" license
issued by the City of Chaska pursuant to Chapter 3 of the Code of Ordinances,
Chaska, Minnesota.
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II.
Section 5. Licenses. Lawful gambling licenses in the City of Chaska
may only be granted to an organization qualified under Minnesota Statutes,
' Sections 349.11 to 349.22 and which such organization has either fifty percent
(50%) or more of its active members residing within the City of Chaska or which
meet regularly at least once a month and at least ninety percent (90%) of such
regular scheduled meetings are conducted within the City of Chaska.
Section 6. Reports. Each licensee shall annually, within sixty (60)
days, after the close of each annual licensing period, file a report with the
City Clerk in such form as prescribed by the City, which report shall show how the
profits derived from lawful gambling conducted by such licensee have been spent
for lawful purposes as defined by Minnesota Statutes. At least fifty (50) per-
cent of said profits shall be spent for lawful purposes within the City of
Chaska or benefiting persons within the Chaska Community. Failure to do so
shall be sufficient cause for immediate termination of such license by the City
' Council .
Section 7. Severability. If any section, paragraph, phrase, or provi-
sion of this ordinance shall be determined invalid for any reasons, such deter-
mination of invalidity shall not affect the remaining provisions of this
Ordinance.
' Section 8. Repealor. Chapter 4, Article Iv, same being Section 4-56
through and including Section 4-85 of the Code of Ordinances, Chaska, Minnesota,
and Ordinance No. 378, adopted March 4, 1985, are hereby repealed.
Section 9. Effective Date. This ordinance shall be in full force and
effect from and after its date of passage, adoption and publication according to
' law.
Passed and adopted by the City Council of the City of Chaska, Minnesota,
on this 3rd day of June 1985.
(op/111110 ,
440101r .
R..ert Roepke, .yor '
Attest:
ShirleyBruers, City Clerk
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