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HomeMy WebLinkAbout10B - O'Malley's On Main Pull Tab License MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT December 3, 2007 W 10B Frank Boyles, City Manage CONSIDER APPROVAL OF A RESOLUTION DENYING A REQUEST BY BASEBALL ASSOCIATION 191 FOR A PULL TAB LICENSE FOR O'MALLEY'S ON MAIN Introduction The purpose of this agenda item is to determine whether the City Council wishes to renew the pull tab license for Baseball 191 at O'Malley's on Main for the period January 1, 2008, through December 31, 2009. Historv On December 6, 2004, by Resolution 04-181, Baseball 191 located in Burnsville, Minnesota, received a pull tab license to operate in O'Malley's on Main. Then on November 4, 2005, a new license was granted for the period January 1, 2006 to December 31, 2007. Since the organization was not located in Prior Lake, and therefore did not support local youth or activities, the City Council questioned why the license should be granted. The original license approval in 2004 and the renewal in 2005 required Baseball 191 to donate funds to the Laker Athletic Booster Club (LABC) which supports in excess of 27 athletic and student activity venues. Further, Baseball 191 was required to submit a quarterly G1 Gambling Report to the City to verify that all donations have been accurately calculated and delivered to the LABC. Failure to submit a complete, timely and accurate report was to be grounds for revocation of this license or denial of any subsequent license. On December 6, 2006, I sent Baseball 191 a letter (attached) indicating that we had not received their quarterly G-1 records and demanding those documents together with a check for the two-year period in the proper amount as a donation to the LABC. We received documents within the 10-day period showing that while monthly pull tab sales have been between $13,000 and $21,500; after all prize money, shortages, deposits, rent, games, payroll and FICA were deducted, Baseball 191 was losing money. Based upon their reports there is not only insufficient money to support Baseball 191, but not one contribution has been made to LABC in 36 months. Moreover, staff was advised by the Minnesota Gambling Board that despite the language of our resolution regarding revocation, we could not revoke their license for non-payment of donations until the license was considered for renewal. www.cityofpriorlake.com Phone 952.447.9800 / Fax952.447.4245 Current Circumstances Baseball 191 has requested renewal of their license and paid the license fee. They have been reluctant to reapply because they have made no profit nor do they appear to have contributed to Baseball 191 either. O'Malley's is one of several pull tab sites operated by Baseball 191. I have no idea how their other sites are doing with respect to: . Prize payout, . Rent and game costs, . Payroll. What is most important is that over the three plus years Baseball 191 has held this pull tab license, the LABC has not received one donation. In short, the granting of this license has not benefited Prior Lake at all over the three years it has been granted. In my opinion there is no reason why the City should renew this license. ISSUES: Prize payouts for each month appear to be 80% - 90% of the $13,000 to $21,500 monthly so some gambling individuals are benefiting from this operation. However, LABC, who was supposed to be the primary beneficiary, has not benefited whatsoever for three years now. FINANCIAL IMPACT: There is no financial impact. ALTERNATIVES: 1. Adopt a resolution denying renewal of the license. 2. Adopt a resolution approving the license with the same requirements as before. RECOMMENDED Alternative #1. MOTION: Motion By: Second By: WHEREAS, Burnsville Baseball 191 requested and received a pull tab license for sales at O'Malley's on Main for the period January 1, 2005 through December 31, 2007; and WHEREAS, The approval was conditioned upon the receipt of regular G1 Gambling Reports and monthly contributions to the Laker Athletic Booster Club; and WHEREAS Burnsville Baseball 191 alleged that because it has numerous pull tab sites that it could distribute its costs over them and improve the prospects for contributions to support Prior Lake school activities; and WHEREAS, On December 6, 2006 Burnsville Baseball 191 was advised that the City had not received gambling reports nor was there any record of contributions being made to the Laker Athletic Booster Club; and WHEREAS, The gambling reports reveal that Burnsville Baseball 191 has consistently made monthly sales of $13,000 to $21,500 in pull tabs; and WHEREAS Despite this sales volume the records show that Burnsville Baseball 191 has consistently operated at a loss rendering it incapable of making financial contributions to either Burnsville Baseball 191 or to the Laker Athletic Booster Club over almost 36 months. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The request of Burnsville Baseball 191 for a pull tab license at O'Malley's on Main for the period January 1, 2008, through December 31, 2009 is hereby denied. 3. The staff is directed to distribute this resolution to Burnsville Baseball 191, O'Malley's on Main and the Minnesota Gambling Board. PASSED AND ADOPTED THIS 3rd DAY OF DECEMBER 2007. Hauaen Hauaen Erickson Erickson Hedbera Hedbera LeMair LeMair Millar Millar YES NO Frank Boyles, City Manager www.dty~fpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 December 6, 2006 Mr. Richard D. Vanderlaan, CEO Baseball Association 191 10912 Dakota Court Burnsville, MN 55337 Ms. Mary Louise Erickson, Treasurer 14150 Flintwood Way Apple Valley, MN 55124 Subject: Baseball Association 191 Pull Tab License Dear Sir and Madam, According to our records Baseball Association 191 received a pull tab license premise permit for O'Malley's on Main in Prior Lake on December 6, 2004, by Resolution 04-181. The premise permit was subject to the following: "All donations from Lawful Gambling subject to this license shall be donated to the Laker Athletic Booster Club of the Prior Lake - Savage School District." "At the completion of each calendar quarter, Baseball Association 191 shall complete a quarterly G-1 gambling report for O'Malley's lawful gambling subject to this license and promptly submit one copy to the City Manager. The report shall verify that all donations have been accurately calculated and delivered to the Laker Athletic Booster Club. Failure to submit a complete, timely and accurate report will be grounds for revocation of this license or denial of any subsequent license request." I have attached a copy of the approved resolution for yq.ur information. Since your license was approved in 2004, I have no record of receiving any G-1 forms from your organization. This week I called Mary Haugen, Activities Director for the Prior Lake-Savage School District. She advises me that as supervisor of the booster club, she has never received a donation from your organization. On November 7, 2005, you requested and were granted a new license. Janet Ringberg, our licensing representative, was advised by Rich Vanderlaan that a contribution had been made to the Laker Athletic Booster Club (LABC). In light of Ms. Haugen's statements last week, the veracity of this statement is questionable. www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 Mr. Richard D. Vanderlaan, CEO Ms. Mary Louise Erickson, Treasurer December 6, 2006 Page Two Please provide within ten (10) business days: 1. All quarterly G-l records for O'Malley's for 2004 through 2006. 2. A check made out to LABC in the proper donation amount for the two-year period. If both actions are not completed with in ten (10) business days, we will initiate the appropriate action of rescinding your permit. SinU Frank. B Ie City M cc: Paul Yeo, O'Malley's on Main Steve Pedersen, Gambling Control Board Prior Lake Police Chief Bill O'Rourke Prior Lake Licensing Representative Janet Ringberg WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 04-181 RESOLUTION APPROVING THE PREMISE PERMIT APPLICATION FOR LAWFUL GAMBLING FOR BASEBALL ASSOCIATION #191 MOTION BY: LEMAlR SECOND BY: ZIESKA the State of Minnesota requires that a municipality adopt a resolution in support of an organization to conduct lawful gambling at a particular premise, and Baseball Association #191 is requesting approval of their lawful gambling permit, and Baseball Association #191 is applying to conduct lawful gambling at the premise of O'Malley's On Main, and In letters received from Richard VanderLaan, Executive Director of Baseball Association #191, Baseball Association and Tom Meyer, their gambling manager, the association has clarified their intentions with respect to the lawful gambling contributions, and based on the offer that proceeds derived from the activities in Prior Lake will be expended only to support Prior Lake activities and associations. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, that (1) The recitals set forth above are incorporated herein and (2) Baseball Association #191 is hereby approved to conduct lawful gambling at the premise of O'Malley's On Main through December 31, 2005 subject to the following conditions: a. All donations from the lawful gambling subject to this license shall be donated to the Laker Athletic Booster Club of the Prior Lake-Savage school district. b. At the completion of each calendar quarter, Baseball Association #191 shall complete a Quarterly G-1 Gambling Report for O'Malley's lawful gambling subject to this license and promptly submit one copy to the City Manager. The report shall verify that all donations have been accurately calculated and delivered to the Laker Activities Booster Club. Failure to submit a complete, timely, and accurate report will be grounds for revocation of this license or denial of any subsequent license request. Passed and adopted this 6th day of December 2004. {Seal} 04-181 YES Abstained X X X X Hau en Blomber LeMair Petersen Zieska Fronk BOYl":&; NO Abstained www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 Minnesota Lawful Gambling (LG200R) Lawful Gambling License Renewal Application Corrections should be made directly on this application Submit one check for all renewal fees, payable to State of Minnesota Organization requirements: Current license term: 1/1/2006 to 12/31/2007 1. An annual organization license fee of $350 is required. Renewing license term: 1/1/2008 to 12/31/2009 \} r'~u;e'oniY'1 . . . . , . . . . . . . -....- ... .......... .....-- Authorization: 5455 Organization: Baseball Association 191 10912 Dakota Court, Burnsville, MN 55337 CEO: Richard D Vanderlaan 10912 Dakota Court, Burnsville, MN 55337 Treasurer: John E Rausch 13108 Pine Ridge Rd, Burnsville, MN 55337 Annual Goal for Charitable Conbibutions 0/0 Gambling Manager RequirementS: 1. An annual gambling manager license fee of $100 is required. Gambling Manager Authorization: GM-05455-002 Ri~e~~~ ~~~~~~: tH~~gg~ ~ t~~~~gg~ Thomas Joseph Meyer ~ The individual listed is not renewing their license. We have endosed a LG212 20592 Jupiter Court, Lakeville, MN 55044 application for the new applicant (612)209-6264 Bond: # RPS0544219 Note: The gambling manager duties may not be assumed by an C . Old R bl" S individual until they are licensed by the Minnesota ompany. epu . IC urety . Gambling Control Board. Gambling Manager Affidavit and Consent statement 1. I have never been convicted of a felony or a crime involving gambling. 2. I have never committed a violation of law or Board rule that resulted in the revocation of a license issued by the Board within five years before the date of the license application. 3. I have never been convicted of a criminal violation involving fraud, theft, tax evasion, misrepresentation, or gambling. 4. I have never been convicted of (i) assault, (ij) a criminal violation involving the use of a firearm, or (iii) making terroristic threats. 5. I have never been, or am I now, connected with or engaged in an illegal business. 6. I have never had a sales and use tax permit revoked by the commissioner of revenue within the past two years. 7. I have never, after demand, failed to file tax returns required by the commissioner of revenue. 8. I do not owe $500 or more in delinquent taxes as defined in section 270.72. 9. I have been an active member of the organization for at least two years at the time of our organization's initial license application, or have been an active member for at least the most recent six months prior to the effective date of our organization's license renewal. 10. I am not a gambling manager or an assistant gambling manager for another organization. 11. I am not a lessor, a member of the lessor's immediate family or a perSon residing in the same household as the lessor, or an employee of a lessor of a premises where this organization has a permit issued from the Board to conduct lawful gambling. (612)971-7210 County: Dakota i------l [iJ Check this box If your I organiZation qualifies for I I the waiver of the $350 I I organization license fee I defined In MN stabJte . L _ 349.16 SUbd.....9 _ J (952)890-8787 (952)894-1033 12. I am not involved directly or indirectly as a bingo hall owner, manufacturer. or distributor. 13. I am not the chief executive officer of this organization. 14. I am not the treasurer of this organization. 15. I was not an officer of an organization at a time when an offense occurred which caused that organization's license to be revoked. Background Check. By signature of this document, the undersigned authorizes the Departments of Public Safety and Revenue to conduct a criminal and tax background check or review and to share the results with the Gambling Control Board. Further, I understand, agree, and hereby irrevocably consent that suits and actions relating to the subject matter of this gambling manager license application, or acts or omissions arising from such. application, may be commenced against me or my organization" and I will accept the service of process in any court of competent jurisdiction in Minnesota by service on the Minnesota Secretary of State of any summons, process, or pleading authorized by the laws of Minnesota. Failure to provide required information or providing false or misleading information may result in the denial or revocation of the license. Changes in the information submitted in this application will be submitted in writing no later than 10 days after the change has taken effect. / . Mi,.,.,esofa Lawful Gambling LG215 Lease for LaWful Gamblin Checkapplicableill!m: L1. LeaSe fOr new application. Submit with ne'II~ permit apPlication. ~~~~ubmitwithpremises~ren~l . , . '. '. . . ~3~.New~.~~date ~~...-....= .$ubR,lit new ~ amended IeaSec.witIU" 10 days after new JessorassWnes ownership. 4. Amended.leaSe............... ... .. . . . . . - .. Check the chailg~s)'ln the' lease: _Rent _Premises name _Boothlbar _AdMty change .. _Other ~ DatethatcharigeswiJlbe.effeCtlve~---,~ . . · BOth parties mi.Jslinitial anc:f date aU changes~ · Submit changes at leaSt 1:0 days before the effective date of the change. Orgariizalionname . . . . Ucense number ~ I ,.)-#.:/91- 5 ~~ .. NameofJea$edpremises . 8treetaddr8ss. Cily . ~m tL~Lf1Jo)l(AA;~ .I(;'JI/ trr/J1tJ,lil-5t.. P{f.JI LAft~ ~ of'flgat ~rofpremises Business/street address'. Cily fAct \ '( z-~ 1&' ~ IJ l~PJl-Jf;,:; Pn6C: Name of lessor (If same as legal Businesslstreef addresscili pwoor, write in "SAME") ......~. 14 ;~[~ t:~~<<~~~w:iltbe.~ndiacted.u.:. bs _PuII-tabswith dispensing devk:e _TJpbOOrds '_PaddlewheeI. _Paddlewheel with table -,-Bingo' _Bar bingo :.C..:....-... .;jcfjgi~i~g~ll~tab~..'npboard~.~m.((PatldtQ~~~~~R:enbtri;~i:~ired~~)'..' BOoth .operatioIl':salesof gilIJIbr/llQ eqtiipmentby an empIoyeeBaropenlti~ -Sille$ofgamblingel'luipmentwithin a leased (or volunteer) of a.1Icensed organl2al:lon wilt1In a separate enclosure premises by ail employee of the lessor frOni a common area Where tf1at is dislfnctfrom areanA:~foodand beverages are sold. food and beverages are also sold. . =_,_.'._2'M~";;tt~~~it~~~~~;~.ifiC;i.'-'~ Ifyouarlswered yestbtne question above, rent limits are~~you answered no 10 the question above, rent Umits are based on the following combinations of operation: 'IJaSed on the follOwing mmbillCltions of operation: Bciothoperation... ... .. Baroperation... - Booth operation and JlU_ll-tatldisperising device - Bar operation with pUll-tab disPensing device - Booth operation and bar operation - Pull-tab al5pel1Sing device only - Boothoperatioh, bar operation, and pull"tab{fu;pensing device 6/07 Page 1 of.2 .... . The maxirnumrentallowecl may not exceed $1,750 in lotal per month for Clil orgcmizations at this premiSes. .. . 'TI1e maxilTlw'n rent ano\;Ved'may not eXceed $2.500 in total per mOnth for ilIl orgcmizatiOris CIt U:US preiTIises. mMPLErEONEOPI1QN: .COMPl.EiEONEOPrION: Option A.: 0 to 10% of the gross profits per month. Opti~ A: 0 to 20% of the gross proftts.per I1lOnth. Pen:entaQeto.bepaid % Pertentagelobepaid dO % Option B: When grOss profits are $4,000 or less per month; $D to Option B: When gross profits are $1,000 or less per month, $0 $4DO pel' month maybe paid. Amount to be paid $ to $200 per month may be paid. Amount to be paid $ option C:${) tcJttOO~'JT1CII1lt1 on~ firSt: $4,000 of gross profit. Amount to be paid $ . . Plus, 0% to 10% of the gross profits may be paid per month on gross pro!itS over $4,000. Percentage to be paid . % ..aiOgo Rent option D: 0 to 10% of the gross profits per month from all lawful gambling octivities~during bingo occasions, excluding bar bingo. Perce~tobepa~ % . Option E: A rate based on a'cost per square fbot:. not to exceed 110% of a comparable cost per square footfo,.leased space; as approved by the director of the Gambling Control Board. No rent may be paid for bar bingo. Rate 10 be paid $ per square foot The Iessormustat:tach doaJri1entation, verified by the organization, to confirm the cOmparable rate and all appUcable costs to be paid by the organization tDthe lessor. . OptiOriC:. $0 to $200 pei'rnonihon thefti'St $i,OooOfgross profits. Amount 10 be paid $ . . Plus, 0% to 20% of the gross profitsrtiay be paid per month on gross profits over $1,000. Percentage to be paid % . Bar i3,,,goRent _ Option F: No rent may be paid for bingo . cOnducted ioa bar. . ,.-' ,.' .. ~ ." ~'- ..~:,. :.: .:,;.. :: '..:: ,.. . - ...,....."." - '~~!/,f,~in~ti~~c;t.Y.itY., "'::;, ..... For any new bingo activity not previously included ina Premises PermltApplication, attach a separate sheet of paper listing the days and hours that bingo will be a;>nductecl. bicense Number: 5455 Ucense Expiration: 12/31/2007 Premises permit requirements: 1. An annual premises permit fee of $150,2. A separate resolution of approval induding the site address from the local unit of government, (The local unit of government does not sign this renewal application) and 3. A LG215 lease agreement for each site your organization does not ownis required. [i]! Check this box if this site haS-beerldisoontiriuedo;Winnot~reIieWed."J Site number 001 JRs Family Reunion 3401 E Hwy 13, Burnsville, MN 55337 ~TownshiP of (if applicable) -Dakota County Gambling account # 7862254284 O .. th"t N TCF rgamzatlon owns IS SI e: 12751 Nicollet Ave, Bumsville, ~oes your organization conduct bingo at this site Y !.~ ~. _ . , . _ _ _ _ _ _ . . . _ _ . _ . _ .~~ . ~~~3? _ _ _ _ , . _ _ . ' _ , . . , Is the local resolution of approval attached? Y / N: If yes, the attach a list of the days and beginning times of your bingo activities.: Site number 002 Renegades 3809 W Hwy 13, Bumsville, MN 55337 ~Township of (if applicable) ~ r Check this box if this site has been discontin"'ued or;;rn^""'"oot~be rei1eweti-.. Dakota County Gambling account # 7862254284 TCF Organization owns this site: N 12751 Nicollet Ave, Bumsville, Does your organization conduct bingo at this site Y / N I MN 55337 Is the local resolution of approval attached? Y / N .' 'If y~: th~ ~ttaCh ~ Ust ~i the dayS a~d' be9i~~i~g tlrres 'of you~ bingo' adi~it:i~.: Site number . 004 Neisens Sports Bar & Grill 4851 W 123rd St, Savage, MN 55378 ~TownShip of (if applicable) r.;;;] ,-.----~.'.-.._.,........-........,.....-.-..-.,....--..~-....-----.~--_._......--. .____..._______.w ~. Check this box if this site has been discontinued or will not be renewed. Scott County Gambling account # 7862254284 TCF Organization owns this site: N 12751 Nicollet Ave, Burnsville, Does your organization conduct bingo at this site Y / N I MN 55337. Is the local resolution of approval attached? Y / N . . - 'If y;S, 'the ~ttaCh a iist ~i the dayS a~d' be9i~~i~g ti~~ :of you~ bingo' acti~iti~.: Site number 005 Tin Shed Tavern 12250 Zinran Ave S, Savage, MN 55378 ~TownshiP of (if applicable) r;:;] ...---.--'....-.------....-.'-.-'-.-...-.... .,-....--.-.........---.......----..-...-,.....--,--....,----..,.~"_.,--._.- ~ i Check this box if this site has been discontinued or will not be renewed. Scott County Gambling account # 7862254284 TCF Organization owns this site: N 12751 Nicollet Ave, Burnsville, Does your organization conduct bingo at this site Y / N I MN 55337 Is the local resolution of approval attached? Y / N . - 'If y;S,' the ~ttaCh a iist ~i the day~ a~d'be9i~~i~g ti~~ 'of yo-u~ bingo' acti~iti~.: Site number 007 Buffalo Tap and Grill 4990 W 1~3rd St, Savage, MN 55378 ~Township of (if applicable) [fill Check this box if this site has been discontinued or will not be renewed. Scott County Gambling account # 7862254284 TCF Organization owns this site: N 12751 Nicollet Ave, Burnsville, Does your organization conduct bingo at this site Y / N i MN 55337 Is the local resolution of approval attached? Y / N :' -If y~s, 'the attach a list of the days a~d- be9in~i~g ti~s 'of you~ bingo- adi~iti~.: , .",< I "',' . ....- ,~ I l' /' / ( \ . , _ / ' I., \:' :.'. ' i .~. ..-~ ~ --. ~. ...; ---; . \ . """- ~ ' . . , ' i.. .-'.' fi. ....'.. ..') l ,,- ". " ...."". ""\' 1,,-\ \ ..' ..' l' r ! i , I . ' "i 1..-. iI, '..' J I ,I O'(}1ACU;Y /) .. . ~_, _JV?-Y- AU6UJ-1~StPJ!-/1(jf;{,__QqlQ{{~tS-- _____ ___________.... d_' G~tnfS __________d_ Ickf;T~S1t-O ___ @(L2.~; . fA (0 " .... 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