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AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
STAFF AGENDA REPORT ~
5A \X~\)
FRANK BOYLES, CITY MANAGER 0( /
AMENDMENT TO TITLE 3, CHAPT;:'R 8, PRIOR LAKE CITY
CODE RELATING TO CHARITABtE GAMBLING, ORDINANCE
93-10
OCTOBER 18, 1993
When the City Council considered the application of the Knights of
Columbus for a Pull Tab License, it became apparent that there is a
need to clarify aspects of the existing City Code with respect to Pull
Tab Licenses. Two areas needed enhancement: definition of
principle location or office, and dedication of net gambling receipts
for local community benefit. The City Council, City staff and
licensed organizations have been working together to refine the
ordinance. The attached redraft of Ordinance 93-10 represents the
culmination of our efforts.
The City Code with respect to issuance of Pull Tab Licenses has
been vague in defining principle location or office. In an effort to
refine this definition, we have added that "principle location or office
within the city (means) if it (the organization to be licensed) owns or
leases a building or place of business or portion of a building or
place of business within the city which is used by the organization
as a meeting place for at least 75% of its general membership and
other business meetings and is otherwise generally available for
use by the organization and its membership".
Rather than require 100% of all meetings in the principle location as
the earlier draft provided, we have allowed for up to 25% of the
meetings to take place elsewhere. The location of the meeting
must be documented by the organization's official records or
minutes for at least one year prior to the filing of an application for a
license....." .
The above provision also provides flexibility to organizations who
experience a hardship with respect to their principle location or
office. We have added a provision that states that "nothing in this
paragraph shall prevent an organization from conducting over 25%
of its meetings per year at a location or locations outside the city
limits if they can document a hardship which precluded them from
using their principle location or office".
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4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 4474230 / Fax (612) 447-4245
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ISSUES:
The revised ordinance also provides that "each organization must
contribute 10% of its net profits derived from lawful gambling to a
fund administrated and regulated by the city for the dispersement
by the city for lawful purposes". To be sensitive to organization's
needs, the ordinance also states that "at the time an organization
contributes money to such funds, the organization may request that
the city expend the money being contributed by the organization for
a lawful purpose specified by the organization and the city shall
consider such request In its discretion prior to dispersing monies
contributed by the organization". The ordinance also provides for
written documentation to be received by the city In order that the
city can confirm whether 10% of the net profits have been provided.
At the Council's suggestion, I sent an invitation to the clubs who
presently have Pull Tab Licenses including the Optimists, VFW,
Lions, and Knights of Columbus. Representatives of the first three
clubs attended a meeting to discuss the ordinance provisions set
forth above. At the meeting a number of concerns were expressed:
1. The Optimists asked whether they could contribute to a
fund which would be added to from year to year to support
the construction of a recreation center.
2. The Optimists asked whether the 10% could be used for
scholarship to dance classes or other city recreation
programs.
3. All clubs questioned whether the 10% would be paid
monthly or annually. All clubs prefer an annual payment.
4. The Optimists asked whether or not the ordinance could be
revised to read up to 10% rather than 10%.
5. The VFW asked whether or not their annual contribution of
flags to the city and other ongoing projects would be
considered as part of their 10% donation.
6. A number of organizations asked when payment would be
due. At some times during the year there would be
insufficient funds in their coffers to provide the 10%.
We agreed that it would be appropriate to provide for a city
collection once per year, perhaps at the end of the organization's
fiscal year which is between June and September. For the
Optimists this would be September 30. For the VFW and Lions it
would be June 30. I am not aware of the fiscal year for the Knights
of Columbus.
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