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CR 2003-046 Application For Charltable Gambling Premises Permit !,t . March 13, 2003 Council Report 2003-046 Application for Charitable Gambling Premises Permit Hopkins Youth Hockey Association Proposed Action Staff recommends adoption of the following motion: adopt resolution 2003-028, resolution denying a premises permit for the Hopkins Youth Hockey Association at Tuttle's Hopkins Recreation, 107 Shady Oak Road. Overview The Hopkins Youth Hockey Association has applied for a premises permit to sell pull tabs at Tuttle's Hopkins Recreation. Staff is recommending denial because they do not comply with the conditions of Policy 4-A, Lawful Gambling. Primary Issues to Consider . Does the Hopkins Youth Hockey Association meet the location requirements? . Does the City allow more than one charitable establishment to conduct the same game at the same location. Supportina Documents . Resolution 2003-028 . Copy of Policy 4-A, Lawful Gambling . Letter from the Raspberry Festival ~~ Terry Obermaier, City Clerk Financial Impact: $ Budgeted: Y/N Related Documents (CIP, ERP, etc.): Notes: Source: . ...... Council Report 2002-046 Page 2 . Does the Hopkins Youth Hockey Association meet the location requirements? Section 2.02 of the City's Legislative Policy reads: An applicant for a license shall be a registered Minnesota nonprofit corporation or an organization which is designated as exempt from the payment of income taxes by the Internal Revenue Code and whose principal location or office is within the City of Hopkins. Staff does not believe that the Hopkins Youth Hockey Association has a permanent location. They have filed the address of the Hopkins Pavilion with the Secretary of State's office for the purpose of obtaining a current Certificate of Incorporation. That address was given in January of this year. The Hopkins Youth Hockey Association does not have an office at the Pavilion. The Pavilion does not accept mail from the post office for the league. They do have a drop box at the Pavilion. . Does the City allow more than one charitable establishment to conduct the same game at the same location. . Section 2.07 of Policy 4-A, Lawful gambling reads: More than one organization, as defined in Section 2.02, may conduct gambling within a single owned, occupied or leased premise. More than one organization may jointly conduct a lawful gambling game at one location. However, two or more organizations shall not separately conduct the same game at the same time at one location. The first part of the paragraph indicates that two organizations can conduct gambling at the same location, however, the last sentence states that they cannot both conduct the same game. Staff researched past minutes and council reports for the intention of this section. The intention is that only one organization can sell pull tabs in a location, or that only one organization can conduct bingo at a location, or that one organization can conduct bingo while another organization is selling pull tabs. Two organizations could operate a pull tab booth together. There cannot be two pull tab booths at the same location, run by two different organizations. The Raspberry Festival holds a valid lease with Tuttle's Hopkins Recreation Center. That premises permit was granted in October 2001 and runs through December 31 2003. According to City policy, the City cannot approve another pull tab operation for that location. In past years, several organizations were denied premises permits because of the locations. Some of those organizations were Cystic Fibrosis Foundation, The Exchange Club of Minneapolis, Family Plus, Inc., Braille Sports Foundation, Hopkins/Minnetonka Babe Ruth, Inc. , and the Golden Valley Baseball Inc. . Alternatives 1. Deny the application because the organization does not meet location requirements and because a permit for another organization has been approved for that location. 2. Continue the item for more information. 3. Approve the application Staff recommends alternative one. ,.; <...,- CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO. 2003-028 Denying a Lawful Gambling Premises Permit To the Hopkins Youth Hockey Association WHEREAS, the City of Hopkins has an existing policy limiting charitable gambling to those charities which have their principal location within the city, and WHEREAS, the City of Hopkins has an existing policy that limits the number of organizations that can conduct the same lawful gambling game at one location, and WHEREAS, a premises permit has already been approved for pull tabs at the requested location, Tuttle's Hopkins Recreation, NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins hereby denies the application for a permit to conduct lawful gambling by the Hopkins Youth Hockey Association at the following location: Tuttle's Hopkins Recreation Center 107 Shady Oak Road Hopkins, MN 55343 Adopted by the City Council of the City of Hopkins this 18th day of March, 2003. By Eugene J. Maxwell, Mayor ATTEST: Terry Obermaier, City Clerk . . . POLICY 4-A LA WFUL GAMBLING 1. PURPOSE 1.01 The purpose of this policy is to establish rules and procedures for lawful gambling in the City of Hopkins. 2. REGULATIONS 2.01 Except as otherwise enumerated herein, the provisions of Minnesota Statute Chapter 349 relating to the definition of terms, licensing and restrictions of gambling are adopted and made a part of the statement of policy promulgated by the City of Hopkins as if set out in full 2.02 An applicant for a license shall be a registered Minnesota nonprofit corporation or an organization which is designated as exempt from the payment of income taxes by the Internal Revenue Code and whose principal location or office is within the City of Hopkins. 2.03 The organization defined in Section 2.02 must be engaged in its activities for the benefit of the community within the City of Hopkins for at least five years on a perpetual, continuous, uninterrupted basis and have at least 30 active voting members. 2.04 Gambling allowed by the city shall be carried on only within premises owned, occupied or leased by the organization except such activities permissible under M.S. 349.166. 2.05 No application for a premises permit will be approved for any organization to conduct gambling on any premises other than the premises of an on-sale liquor licensee or the premises of a fraternal, veterans or other non-profit organization. In order for a fraternal, veterans, or other non-profit organization to conduct gambling on their premises, such premises must have been continuously owned and occupied for a period of at least five years. No application for premises permit shall be iapproved for any organization for a site established for the primary purpose of conducting gambling. This section shall not apply to any organization which is exempt from the requirement for a gambling license according to M.S. 349.166. 2.06 A Class A license will only be approved for an organization that is licensed pursuant to Minnesota Statute, section 349.16, and that conducts gambling on premises that it owns and operates. 2.07 More than one organization, as defined in Section 2.02, may conduct gambling within a single owned, occupied or leased premise. More than one organization may jointly conduct a lawful gambling game at one location. However, two or more organizations shall not separately conduct the same game at the same time at one location. 2.08 The operation of gambling devices and the conduct of bingo and raffles licensed or approved pursuant to the authority granted to the City of Hopkins shall be carried on under the supervision of a gambling manager designated by the organization. The gambling manager shall be responsible for the operation of the gambling activity and Legislative Policy Manual -- Chapter 4-A the receipts and profits generated from the operation. 2.09 The gambling manager shall be an active member of the organization issued the license and shall qualify under state law. 2.10 Organizations seeking approval for a premises permit, that are not currently conducting gambling in the City, must provide the City, in addition to the application forms, a copy of the minutes of a general membership meeting, where a quorum was present, wherein the organization approved a motion authorizing the gambling activities. 2.11 Participants in raffles, padd1ewhee1s, pull tabs and tip boards shall be restricted to individuals who have attained the legal drinking age. This restriction only applies to premises where liquor, wine, beer or 3.2 beer is served. Where intoxicating beverages are not served the age shall be eighteen. 2.12 Organizations wishing to renew a gambling license must provide the City with a financial audit of its lawful gambling activities and funds for the previous two years. The audit(s) must be performed by an independent accountant licensed by the state of Minnesota. 2.13 In addition, such organizations must provide the City with information on all expenditures of lawful gambling funds during the previous two years. Such information must include at a minimum the name of the recipient, the amount of the expenditure or contribution, and a brief description of how the expenditure or contribution meets the definition of "lawful purposes" as defined in M.S. 349.12. The City reserves the right to require additional documentation from licensed organizations, or organizations seeking licenses, as it deems necessary. 2.14 A fee of $100.00 shall be charged to all organizations submitting a Premises Permit Application or Applications for approval by the City. Established 11/19/85 by Resolution 85-3218 Revised 4/19/94 Revised 12/16/97 City of Hopkins . Legislative Policy Manual n Chapter 4-A 2 ~il 1... .,.. . . c~s RAS,l> ~~'\ ~~ .t ~1>..L HOPKINS RASPBERRY FESTIVAL, INC. RO. BOX 504 · HOPKINS, MINNESOTA 55343 CAPIT~\.. Ms. Terry Obermeier City Clerk City of Hopkins Dear Ms. Obermeier, I would like to voice my opposition to the recent gambling pennit application submitted by Hopkins Youth Hockey Association at Tuttle's Bowl,Bar & Grill. On Monday, February 17,'03 Tim and Mike Tuttle met with Patricia Sola and me and informed us that they wished to bring in a different charity to operate lawful gambling. We were informed to ".. .not take it personally. ", but that they (Tuttles) felt that a wider distribution of gambling funds created a stronger community, and that they (Tuttles) "...really like hockey." The Hopkins Raspberry Festival has an active lease with Tuttle's effective until December 31, 2003. The Tuttles asked that we write a letter agreeing to void our lease when and ifH.Y.H.A. received a permit from the state. We have not supplied such a letter as of yet. The Raspberry Festival has conducted a first rate, legal and accountable gambling operation A Hopkins since 1986. Revenues annually support 50%-75% ofthe total cost of the Hopkins ~pberry Festival celebration. Additionally, gaming revenues provide $6,500.00 in scholarships for participants in the Festival Royalty program. We have had consistently strong relationships with the owners from which we lease space and have equally strong relationships with the business and residential communities in Hopkins. After 68 years of service and committment to Hopkins, we find the request of the Tuttles suprising and disheartening. There is also a concern that the hockey group could conceivably attempt to influence other bar owners, incapacitating the civic responsibilities and contributions, and even the existence, ofthe Raspberry Festival and the Hopkins Jaycees. I challenge the actuallity ofH.Y.H.A.'s claim to five consecutive years at a Hopkins address, and find it curious and disturbing that after a call to 411 information, there is no listing for a Hopkins Youth Hockey Association, a Hopkins Hockey Association, or even a Hockey Association. Without a listed Hopkins phone number or address, I'm curious how they've maintained a business in Hopkins, and of how they proved their five year Hopkins residency, and how they prove that they're not applying for this permit for the sole purpose of raising gambling revenues, which is against Minnesota Rule. It also concerns me that their roster is disproportionately made up ofMinnetonka residents, which would indicate that gaming revenues would benefit Minnetonka residents by the same ratio. The Festival has no issues with the fine people ofMinnetonka, but have always realized a necessity for Hopkins gaming revenues to benefit largely Hopkins residents. The Festival feels that approving this new gambling permit could have a short and long-tenn negative impact on the social and civic capacities and contnbutions of both the Hopkins Raspberry Festival and the Hopkins Jaycees. Thank you for your consideration in this difficult decision. Sincerely, James Mashek Gaming Manager Hopkins Raspberry Festival .