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1d App Gambling Permit/Am. Legion -1cL - MEMORANDUM CITY OF CHANHASSEN TO: Todd Gerhardt, City Manager 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 FROM: Karen J. Engelhardt, Office Manager ~, DATE: June 27,2005 Administration Phone 952.227.1100 Fax 952.227.1110 SUBJ: Approval of Renewal of the Chanhassen American Legion Club's Gambling Premises Permit Request, 290 Lake Drive East Building Inspections Phone 952.227.1180 Fax 952.227.1190 Engineering Phone 952.227.1160 Fax 952.227.1170 The Chanhassen American Legion Club has applied for renewal of their premises permit to conduct gambling. An organization is eligible to conduct lawful gambling if they meet the criteria established in Minnesota Statute 349.16 (attached) which states it must meet one of the following criteria: Finance Phone: 952.227.1140 Fax 952.227.1110 Park & Recreation Phone 952.227.1120 Fax 952.227.1110 · At least fifteen members must be residents of the city; · The physical site for the organization's headquarters must be located in the city or a city contiguous to Chanhassen for at least two years immediately preceding the application; · The organization owns real property within the city and the lawful gambling is conducted on the property; or · The physical site where the organization holds it regular meetings and conducts activities, other than lawful gambling and fundraising, is located within the city and has been for the previous two years. Recreation Center 2310 Coulter Boulevard Phone 952.227.1400 Fax 952.227.1404 Planning & Natural Resources Phone 952.227.1130 Fax 952.227.1110 The American Legion Club meets all of the criteria. This is a two-year license and includes pull-tabs and possible raffles. Public Works 1591 Park Road Phone: 952.227.1300 Fax 952.227.1310 State statute requires that the Gambling Manager be licensed, and receive continuing education to maintain the license. Mr. Paul Differding is the Gambling Manager and has been issued a license by the Minnesota Gambling Control Board. The most recent training he attended was held on June 16, 2004. Senior Center Phone 952.227.1125 Fax 952.227.1110 Law Enforcement has completed background investigations on the applicants including: Web Site www.ci.chanhassen.mn.us Gary Boyle, Commander Eugene Borg, Financial Officer Paul Differding, Gambling Manager No negative comments were found on any of the applicants. The City 01 Chanhassen. A growing community with clean lakes, quality schools, a Charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play. Mr. Todd Gerhardt June 27, 2005 Page 2 Chanhassen City Code requires organizations that hold a gambling license in the city to contribute 10% of their net proceeds to the city. In 2004, the Legion contributed a total of $24,749.08, which was used to fund training for the Fire Department. RECOMMENDA TION Staff recommends adoption of the attached resolution approving the application as submitted. Approval requires a simple majority vote of those Council members present. ATTACHMENTS 1. 2. State Statute 349.16 Resolution Minnesota Statutes 2004, 349.16 Page 1 of 2 Minnesota Statutes 2004, Table of Chapters Table of contents for Chapter 349 349.16 Organization licenses. Subdivision 1. License required. An organization may conduct lawful gambling if it has a license to conduct lawful gambling and complies with this chapter. Subd. 1a. Repealed by amendment, 1990 c 590 art 1 s 17 Subd. 2. Issuance of gambling licenses. (a) Licenses authorizing organizations to conduct lawful gambling may be issued by the board to organizations meeting the qualifications in paragraphs (b) to (h) if the board determines that the license is consistent with the purpose of sections 349.11 to 349.22. (b) The organization must have been in existence for the most recent three years preceding the license application as a registered Minnesota nonprofit corporation or as an organization designated as exempt from the payment of income taxes by the Internal Revenue Code. (c) The organization at the time of licensing must have at least 15 active members. (d) The organization must not be in existence solely for the purpose of conducting gambling. (e) The organization has identified in its license application the lawful purposes on which it proposes to expend net profits from lawful gambling. (f) The organization has identified on its license application a gambling manager and certifies that the manager is qualified under this chapter. (g) The organization must not, in the opinion of the board after consultation with the commissioner of revenue, be seeking licensing primarily for the purpose of evading or reducing the tax imposed by section 297E.02, subdivision 6. Subd. 3. Ter.m of license. Licenses issued under this section are valid for two years. Subd. 4. Repealed, 1994 c 633 art 5 s 99 Subd. 5. Repealed, 1994 c 633 art 5 s 99 Subd. 6. License fees. The board shall impose an annual fee of $350 for an organization's license application. Organizations that expect to receive less than $100,000 in gross annual receipts may request from the board a waiver of organization license fees. Subd. 7. Purchase of gambling equipment. An http://www.revisor.leg.state.mn.us/stats/349/ 16.html 6/1512005 Minnesota Statutes 2004, 349.16 organization may purchase gambling equipment only from a person licensed as a distributor. Subd. 8. Local investigation fee. A statutory or home rule charter city or county notified under section 349.213, subdivision 2, may assess an investigation fee on organizations or bingo halls applying for or renewing a premises permit or a bingo hall license. An investigation fee may not exceed the following limits: (1) for cities of the first class, $500; (2) for cities of the second class, $250; (3) for all other cities, $100; and (4) for counties, $375. Subd. 9. License renewals; notice. The board may not deny or delay the renewal of a license under this section, a premises permit, or a gambling manager's license under section 349.167 because of the licensee's failure to submit a complete application by a specified date before the expiration of the license or permit, unless the board has first (1) sent the applicant by registered mail a written notice of the incomplete application, and (2) given the applicant at least five business days from the date of receipt of the notice to submit a complete application, or the information necessary to complete the application. Subd. 10. License renewal to merged fire relief associations. A new relief association formed from the merger of the relief associations of two separate city fire departments, mandated under Laws 1995, chapter 262, article 11, may apply for a license renewal under this section. The board shall consider the application as a license renewal of one of the relief associations that is a licensed organization and was merged to form the new relief association. Subd. 11. Agreement to pay taxes. An organization which is recognized by federal law, regulation, or other ruling as a quasi-governmental organization that would otherwise be exempt from one or more taxes under chapter 297E must agree to pay all taxes under chapter 297E on lawful gambling conducted by the organization as a condition of receiving or renewing a license or premises permit. HIST: 1976 c 261 s 6; 1984 c 502 art 12 s 8; 1986 c 467 s 10,11; 1989 c 334 art 2 s 20,21; lSp1989 c 1 art 13 s 8; 1990 c 590 art 1 s 17; 1991 c 336 art 2 s 17; 1994 c 633 art 2 s 19; art 5 s 37-41; 1997 c 155 s 6; lSp2003 c 1 art 2 s 89; lSp2003 c 21 art 9 s 14 Copyright 2004 by the Office of Revisor of Statutes, State of Minnesota. http://www.revisor.leg.state.mn.us/stats/349/16 .html Page 2 of 2 6/1512005 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: .June 27. 2005 RESOLUTION NO: 2005- MOTION BY: SECONDED BY: A RESOLUTION APPROVING RENEWAL OF A PREMISES PERMIT APPLICATION TO CONDUCT LAWFUL GAMBLING, CHANHASSEN AMERICAN LEGION CLUB POST 580, 290 LAKE DRIVE EAST WHEREAS, Chanhassen American Legion Club Post 580 has submitted an Application for Renewal of their Premises Permit to conduct lawful gambling. BE IT RESOLVED by the Chanhassen City Council that the Application for Renewal of the Premises Permit to conduct lawful gambling received from the Chanhassen American Legion Club Post 580 at 290 Lake Drive East is hereby approved. Passed and adopted by the Chanhassen City Council this 27th day of June, 2005. ATTEST: Todd Gerhardt, City Manager Thomas A. Furlong, Mayor YES NO ABSENT