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Home My WebLink About9C - Baseball Gambling Permit CITY COUNCIL AGENDA REPORT 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: DECEMBER 6, 2004 9C JANET RINGBERG, LICENSE CLERK AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING A PREMISE PERMIT FOR LAWFUL GAMBLING FOR BASEBALL ASSOCIATION #191 DISCUSSION: Cu"entCucumsmnces The City Council considered this agenda item at their November 1, 2004 meeting and directed that the staff prepare a resolution rejecting the request on the basis that it was inconsistent with city code since the fundsdid not appear to benefit Prior Lake youth. At the November 15, 2004 meeting, the City Council directed that the staff contact Baseball Association #191 asking them to confirm in writing: 1. Which Prior Lake group or organization will be the benefactor and 2. How will the city verify that the funds are indeed going to that organization. The Council further directed that the resolution be modified to specifically address each of these issues. Under state statute the City has the right to approve or deny lawful gambling permit requests with respect to pulltabs. The City has received a premise permit request from Baseball Association #191 for O'Malley's On Main. The Prior Lake Hockey Association has previously held a premise permit at O'Malley's On Main. Baseball Association #191 would be replacing the Prior Lake Hockey Association at this location. Baseball Association #191 has been licensed by the State of Minnesota since 1998 to operate pull tab locations. They currently have six pulltab locations in Bumsville, Rosemount and Savage. Baseball Association # 191 has provided the necessary documents for this permit. The Prior Lake Police Department has completed its investigation and has found no reason to deny this permit request. Baseball Association #191 has paid the $100.00 license fee. The Issues Following the meeting staff discussed the Council's direction with Mr. Tom Meyer who is the gambling manager for Baseball Association #191. He wrote the enclosed letter which states the following: O:\JANET\LICENSING\GAMBLING\BASE~ctW~H~!lQ~dth913.DOCJanet Ringberg Phone 952.447.4230 / Fax 952.447.4245 ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: 1. Who has Baseball Association # 191 selected as the benefactor? Baseball Association # 191 will distribute the proceeds to the Laker Activities Booster Club. This club supports over 26 athletic and cultural venues for Prior Lake High School students. Funds would be equally distributed over each of the venues. Since some of the high school students are Savage residents, the Council would have to determine if this group meets the intent of the ordinance. 2. How do we assure the funds are accurately accounted for? Mr. Meyer proposes to submit a quarterly G-l gambling report to the city. This report shows gross receipts minus prizes, expenses and finally the donations. A simple call to the school district can verify receipt of the reported donation. Mr. Meyer goes on to explain that their gambling license for all seven sites will expire on 12/31/05. They will be reapplying in June 2005, therefore the City Council will be able to assess the degree to which Baseball Association # 191 has honored the above requirements. If they have not, the Council would not have to renew the license for the next two years. The City Council has the following alternatives: 1. Adopt the proposed premise permit resolution. 2. Deny the premise permit request. Staff recommends ouncil approve the premise permit for Baseball Association #191 fl O'Malley's on Main. O:\JANET\LICENSING\GAMBLING\BASEBALL ASSOCIATION #1913.DOCJanet Ringberg I)aseball Association 20592 Jupiter Ave Lak.cvillc, MN 55o+t 6 I 2-20~-6 26+ Navember 18,200+ Friar Lak.e Cit!j Cauncil In respanse to. the 9uestians raised at the Navember 15th cauncil meeting. All tunds raised tram pull tab o.peratians at O'Malle!j's f)arwillbe distributed to. the Lak.er Athletic f)o.aster Club. These tunds will be distributed e9u.aJJ~ between t..~eir twe.nt!j - .slx\l.en.ues.. In.a4ldition O'Malle!j's f)ar 15 setting up a fund raiser and eventual taundatian tar the tamil!j at an empla!jee recentl!j killed In a mo.tar~de accident. We wauld Jik to. help .out this cause aJsa. In respanse to. haw o.ur games are audited we will submit tann 6-1, which is a gambling repart, issued b!j the Gambling Cantralf)aard roanthl!j to. :laur cit!j manager 0.11. a 9u.art.erl~ basis to. share with the cauncil. This repart shaws gross receipts minus prizes paid which e9uals aur depasits. Than it will shaw all expe.D.ses frarn this site. The hottom line ot this r9'~ min.us gambling taxes, will be the danatio.ns given t~ the abave named arganizatians. Our gambling license tar all seven of our -sites expires.on ] 2-) 1-2005. Theretare we wauld need to. reappl!j In June 2005 ~hich will give the cauncil a chance to. review our pertannance during the six manth ot operations at O'Malle!j's. IF we are daing a good jab we wauld hope to. abtain anather resalutian far a premi5e'fermit Far aur next Jicensing p-eri.od 0 J -0 J -Ob thru 12-) 1-07. Thank. !;lau tor cansldering us, Thomas J. Me!;ler Gambling Manager E>aseball Asso.ciatian Baseball tion 191 "Pro_to be Sponsors of Btrsebell & Yo'" Sports ill Dur iJTeU n 10912 Dakota Court Burnsville, MN 55337 Mr. Frank Boyles City Manager . Prior Lake, MN 55372 BASEBALL ASSOCIATION 191 (BA191) is a Minnesota Corporation organized as a 501 c 3 for IRS purposes. OUR MISSION We shall provide our youth the opportunity to experience very competitive levels of baseball upon their reaching the age of 16 and beyond. We shall foster a baseball tradition in our community in cooperation with local athletic clubs and schools. We shall partner with other organizations in our community to ensure that our youth and young adults have the best possible chances to learn from team oriented athletic contests and cultivate life long skills. BACKGROUND B.A. 191 has a total of six pulltab locations. Our original location was at J.R.S Family Reunion in Burnsville. We were licensed by the State of Minnesota on January 1,1998, license # 05455. B.A. 191 has since added sites at Southside Ml:Isic Cafe, Neisens Sports Bar, Buffalo Tap, Tin Shed and in the 'spring of 2004 ,we added Shenanigans in Rosemount. .sA. 191 licenses must be renewed with the State of Minnesota on January 1, 2006. Following is a partial list of recipients of money donated by B.A. 191: WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, 16200 Eagle Creek Avenue S.E, Prior ake, MN 55372-1714 RESOLUTION 04-XX APPROVING THE PREMISE PERMIT APPLICATIO GAMBLING FOR BASEBALL ASSOCIATION #1 1 SECOND BY: the State of Minnesota quires that a municipality a opt a resolution in support of an organization to conduc lawful gambling at a part' ular premise, and Passed and adopted this 15th d of ~ovember 2?04.~. ~.fo>r ...JMJ-. gjl K\Mn.J.... e,xJM+}~ ~/,u,hL. +k. ~!36\V) I;' 9t>!k\' NO ~ I J~ \\,tJ~ 1t"Ut.~ H en Hau en ,..,./ . {; r omber Blomber +td vt, i~ fA. ~,l1/u'l eMair LeMair J' ".. r klt'l i\ftj. 1,v..J.. Petersen Petersen r (., C\.~ t l Tii Z' k Z' k ~ A I,. '~ les a les a If.. v'( C e; i \,. \ r-() / . ~ , .. CV'j k",t:A tUi'~f ~~)t- f.NW~' 0'- {Seal} City Manager City of Prior Lake Baseball Association #191 i requesting appro I of their lawful gambling permit, and Baseball Association #191 is ap O'Malley's On Main, and In a letter received from Richard derLaan, Executive Director of Baseball Association #191, Baseball Associat' stated"... that donations from Prior Lake sites [will] be directed to Prior La S ior High School and Prior Lake Hockey Association or others as the City of rior L e recommends," and Baseball Association # 191.doc www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 NOW THEREFORE, BE IT RESOLVED Y THE CITY COUNCIL PRIOR LAKE, that (1) The ~ recitals set forth above are incorporated erein and (2) Baseball Associ ion #191 is hereby approved ' : to conduct lawful gambling at the pre ise of O'Malley's On Main for a riod of two years eff~eive ~~. upon approval by the Gambling Contr: I Division of the State of Minnesota. (2,'7 \ ' , '~'\ ~ ~1\ ~ n ll~\ 'M~" i y" ~\ ~P;~/ \ \ f\\ t,"\ f\ . ' t '0~'J~ ~~~ ~ ~ Minnesota Valley YMCA, Community Action Council, School District 191,. Burnsville Baseball Boosters, Burnsville Fast Pitch Softball, BAC, Chris Lee Foundation, Hanson Scholarship Fund, Burnsville Jaycees, the Burnsville Foundation and numerous school and youth activities. Since the spring of 2004 B.A.191 has proudly donated to the Rosemount Senior High School $18,000. Thiswas made possible by our affiliation with Shenanigans in Rosemount. B.A.191 is in partnership with the City of Burnsville for improvements to Alimagnet Park. The contributions to the City is nearly $300,000. B.A.191 is an active member of the Burnsville Chamber of Commerce. We would propose that donations from Prior Lake sites be directed to Prior Lake Senior High School and Prior Lake Hockey Association or others as the City of Prior Lake recommends. We welcome the opportunity to partner with the City of Prior Lake to further your goals of helping youth athletics. We are anxious to further explore this as BA 191 will benefit in providing a broader base of operations for our normal fixed costs. We are prepared to discuss this opportunity and look forward to a mutually beneficial partnership. Sincerely, Baseball Association 191 Richard D. Vanderlaan Chief Executive Officer