1g. Gambling Ordinance CITY OF
CHANHASSEN
r
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
' (612) 937-1900 • FAX (612) 937-5739
' MEMORANDUM t'
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TO: Mayor P`' x�OJL2-q
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City Council _
Don Ashworth, City Manager
' FROM: Scott Harr , Public Safety Director
DATE: October 21 , 1991
' SUBJ: Gambling Ordinance
' Attached please find the gambling ordinance that passed the first
reading at the 9/23/91 City Council meeting. The only change appears
in Sec . 10-152(b) , lowering the percentage of net profits derived from
' lawful gambling that are to be expended on lawful purposes conducted
or located within the City of Chanhassen or any municipality
contiguous to the City of Chanhassen from 75% to 50%. I am making
' this recommendation based on my follow up meeting with the Commander
and Gambling Chairman of the Chanhassen American Legion Post .
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
' AN ORDINANCE AMENDING CHAPTER 10 OF THE
CHANHASSEN CITY CODE BY ADDING ARTICLE 5
' REGULATING LAWFUL GAMBLING
THE CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS:
Section 1. Chapter 10 of the Chanhassen City Code is
amended by adding Article V to read as follows:
ARTICLE V.
REGULATION_ OF GAMBLING
' Sec. 10-150. Lawful Gambling Permitted.
Lawful gambling conducted pursuant to Minnesota Statutes,
' Chapter 349, is authorized within the City and shall be operated
in accordance with the terms and conditions specified in this
Article, other applicable provisions of the City Code, and state
' and federal laws and regulations.
Sec. 10-151. Authorized Organizations.
' An organization shall not be eligible to conduct lawful
gambling in the City of Chanhassen unless it meets the qualifi-
cations in Minn. Stat. § 349. 16, Subd. 2, and also meets at least
one of the following conditions:
a. The organization has at least fifteen (15) members that
are residents of the City of Chanhassen; or
b. The physical site for the organization's headquarters or
the registered business office of the organization is
' located within the City of Chanhassen or a city
contiguous to the City of Chanhassen and has been
located within the City or a city contiguous to the City
of Chanhassen for at least two (2) years immediately
preceding application for a license; or
c. The organization owns real property within the City of
' Chanhassen and the lawful gambling is conducted on the
property owned by the organization within the City; or
d. The physical site where the organization regularly holds
its meetings and conducts its activities, other than
lawful gambling and fund raising, is within the City of
Chanhassen and has been located within the City for at
Ir10/21 /91
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least two (2) years immediately preceding application
for a license. I
sec. 10-152 . Distribution of Proceeds.
a. Each organization licensed to conduct gambling within 1
the City of Chanhassen shall contribute to the City, for
distribution by the City for lawful purposes, an amount
equal to ten percent (10%) of the organization's net
profits derived from lawful gambling. For purposes of
this Section, net profits are profits less amounts
expended for allowable expenses. An organization may
designate that money be used internally by the City for
a specific City use as long as the purpose is a lawful
purpose.
b. Each organization conducting lawful gambling within the
City must expend at least fifty percent (50%) of its net
profits derived from lawful gambling on lawful purposes
conducted or located within the city of Chanhassen or
any municipality contiguous to the City of Chanhassen.
The ten percent (10%) contribution required in
subsection (a) above shall be considered as part of the
fifty percent (50%) expenditure.
c. An organization that conducts gambling on fewer than
five (5) days in a calendar year is exempt from the
requirements of this Section.
Sea. 10-153. Filing of Records; Investigations. '
a. Every organization licensed to conduct gambling in the
City of Chanhassen shall file with the City's Public
Safety Director, upon request, all records and reports
required to be filed within the State Gambling Control
Board pursuant to Minnesota Statutes, Chapter 349, and
the rules and regulations promulgated thereunder.
b. Each organization licensed to conduct gambling in the
City shall complete the City's investigation form and
submit any additional information required by the City.
c. Any organization leasing premises for the conducting of
lawful gambling shall, upon request from the Public
Safety Director, file with the City a copy of the lease
within one (1) week after execution of the lease. The
lease shall not provide for rental payments based on a
percentage of receipts or profits from lawful gambling.
d. Every gambling event in the City of Chanhassen conducted
by an organization under state license shall be open to
inspection by City employees and the County Sheriff's
Department.
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II e. The City may inspect, at any reasonable time without
notice or search warrant, all records of a licensed
organization required to be maintained by the State
II Gambling Control Board.
Boo. 10-154. Qualifioationa.
I The City Council shall not adopt a resolution approving a
premises permit or bingo hall license from any applicant which
has an officer, director, or other person in a supervisory or
IImanagement position, who:
a. has ever been convicted of a felony;
1 b. has ever been convicted of a crime involving gambling;
c. is not of good moral character and repute;
Id. has ever been convicted of (i) assault, (ii) a criminal
violation involving the use of a firearm, or (iii)
making terroristic threats; or
' e. owes delinquent local, state, or federal taxes, or is
delinquent on any other City bill.
If. is in violation of any land use or zoning ordinance
including the premise proposed to be licensed.
IISection 2 . This ordinance shall be effective immediately
upon its passage and publication.
PASSED AND ADOPTED by the Chanhassen City Council this
day of , 1991.
II ATTEST:
I
Don Ashworth, Clerk/Manager Donald J. Chmiel, Mayor
(Published in the Chanhassen Villager on , 1991 . )
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