CR 95-158 Celebrity Bowling
September 28, 1995
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Council Report 95-158
GAMBLING LICENSE APPLICATION BY
CELEBRITY BOWL CHARITIES, INC.
Proposed Action.
Staff recommends adoption of the following motion: Move that the Hopkins City Council adopt Resolution
#95-79 denying the application for a permit to conduct lawful gambling by Celebrity Bowl Charities, Inc. at
the Hopkins Bowl.
This action will deny a charitable gambling license to Celebrity Bowl Charities, Inc.
Overview.
Celebrity Bowl Charities, Inc. has made application to conduct charitable gambling at the Hopkins Bowl.
Current city policy prohibits gambling by charities that do not have their principal location in Hopkins.
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The policy on restricting charitable gambling to charities located in Hopkins was adopted in 1985. Since that
time the Council has denied licenses to the Humane Society, the Society for the Blind, Multiple Sclerosis
Society, and the Cystic Fibrosis Foundation among others. Staff sees no reason to change this policy at this
time.
Primary Issues to Consider.
· Should the Council restrict gambling to local charities?
supportifi1! Information.
· Analysis ofIssues
· Alternatives
· Resolution #95-79
· Letter and supporting material from Gene Wright
· Legislative Policy #4-D, Lawful Gambling
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James A. Genellie
City Clerk
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Council Report #95-158
. Celebrity Bowl Charities, Inc. Application
Page 2.
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Analvsis of Issues:
· Should the Council restrict gambling to local charities?
The City originally adopted a policy regarding charitable gambling in 1985. This policy has been
reviewed and amended since then. But the requirement that gambling be conducted by Hopkins' based
organizations has never been changed.
Restricting gambling to Hopkins' based organizations has limited the choices for the hotels, bowling
alleys and bars as to which organization could conduct gambling in their business. However, it has
also resulted in having most of the charitable gambling funds being spent for the benefit of the city of
Hopkins and its residents.
The organization in question does have policy of requiring 80% of the funds raised to be spent in the
community where they are raised. Should the Council decide to amend the current policy it could
allow outside organizations to conduct gambling in Hopkins but restrict the use of the proceeds to a
designated Hopkins' "Trade Area".
The city may, by ordinance, require that a licensed organization, conducting lawful gambling within its
jurisdiction, expend all or a portion of its expenditures for lawful purposes within the city's "trade
area". Such an ordinance must define the city's trade area and must specifY the percentage of lawful
purpose expenditures which must be expended within the trade area. A trade area must include each
city contiguous to the defining city.
If the City Council wishes to grant the proposed license, the current gambling policy must be
amended.
Alternatives:
1. Adopt Resolution #95-79 denying a gambling license to Celebrity Bowl Charities, Inc..
2. Instruct staff to revise the current gambling policy to allow outside organizations to conduct gambling
in Hopkins.
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CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 95-79
WHEREAS, the City of Hopkins has an existing policy limiting charitable gambling to
those charities which have their principal location within the city,
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 Celebrity
Bowl Charities, Inc. at the following location:
Hopkins Family Recreation Center
107 Shady Oak Road
Hopkins, MN 55343
Adopted by the City Council of the City of Hopkins this third day of October, 1995.
By
Charles D. Redepenning, Mayor
ATTEST:
James A. Genellie, City Clerk
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Good Evening, Council Members and others present.
My name is Gene Wright. The past 3 years I have owned and operated Hopkins
Family Bowl. Joining me is Mr. Mark Healy with Celebrity Bowl Charities. He manages
29 pull-tab locations associated with the Bowling Proprietors Association of Minnesota.
My appearance here tonight, is to request a change to the city policy regarding
gambling licenses. In particular that portion dealing with "principal location"
requirements. I hope to briefly show the benefits of replacing the "principal location"
requirement with one of "80% of donations to local community".
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The policy of restricting charitable gambling licenses was adopted in 1985.
Nearly eleven years have passed, and it is time to revisit and revaluate this policy.
Concerns of eleven years ago may not apply today. The question needs to be asked again,
as it was in 1985, and again in 1989. Should the city council restrict gambling to only
local charities? If an outside charity comes in with an "80% to local community" pledge
and provides the city with the documentation to that fact, are we acting in the best interest
of Hopkins by restricting them from our city? If that organization donates twenty seven
thousand directly to our schools and youth activities from just one location, are we acting
in the best interests of Hopkins by restricting them from our city? Weare asking for a
policy change which would allow organizations like Celebrity Bowl Charities to operate in
Hopkins. Approving this change would be a big step toward improving our schools ability
to provide for the needs of our kids.
A similar policy issue is being addressed in Minneapolis in the case of Suburban
Taxi and their inability to be licensed in Minneapolis. In the Wednesday, August 30th
edition of the Minneapolis Star Tribune, it was stated that, " It is not in the best interest of
the consumer, to refuse the largest Taxi service, the right to operate in Minnesota's
largest city ". I believe it is not in the best interest of the residents of Hopkins, to "
regulate out", a gambling charity that shows more local community philanthropy than any
other organization, and ranks in the top ten in the state for dollars raised.
Celebrity Bowl Charities specifies that 80% of donations go into the local
community. Beneficiaries would include many school programs that are gender neutral,
such as, early childhood and special education, Kids & Co, handicapped children's
programs, and would also help fund special projects like our new teen center. Also
included would be funds for the Drug Awareness program in school, conducted by our
police department, and the Turn Around program at the high school. Annually about
twenty seven thousand dollars would go to our kids.
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In a friendly way I would like to point out, the policy requiring "principle location'!
in Hopkins seems to apply to gambling charities only. We donlt require the same of
Perkins, Tires Plus, Wendys, or others, to get a license to operate in Hopkins. To single
out gambling charities would seem to be biased and possibly discriminatory. As an
example, it would be difficult to apply "principal location" to some service organizations.
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The city, the council, and most of all, our kids and schools, would be better
served by replacing the "principallocationlt policy, with an "80% to local community"
policy. This would control the proliferation of gambling concerns that were expressed in
1985. Only local businesses, with strong community feelings, would be able to meet the
new policy.
One way the city benefits would be by issuing licenses limited to a term of two
years, with a review for reissue. If the terms ofthe license have not been met the licenses
could automatically terminate. Celebrity Bowl Charities would commit 15%, ofthe
required 80%, directly to the city of Hopkins to offset expenses incurred by the Raspberry
Festival or other community functions.
Out of respect for the council, and your time, I have addressed only the policy of
flprincipallocation" in this presentation. I have tried to present this application in a
thoughtful, courteous manner, without being critical of other organizations. I look
forward to working with the council and community with the same professionalism. To
maintain that level of professionalism, I may have difficulty responding to questions about
other charitable organizations, but I would be happy to try and answer any questions you
might have. I would like to participate in any discussion regarding this application.
.
Thank you for this opportunity, and thank you for your time and consideration.
Thank you, Eugene R Wright
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AN INTRODUCTION TO
CELEBRITY BOWL CHARITIES INC.
THIS PACKAGE IS INTENDED FOR USE BY
THE CITY COUNCIL OF HOPKINS 11INNESOT A
.
GENE GLORVIGEN, CEO.
GEORGE LARSON, PRESIDENT.
BOB SIRIOS, VICE PRESIDENT.
JEAN DOYLE, SECRETARY, TREASURER.
DOUGLAS DEMARCE, GAMBLING MANAGER.
MARK HEALY, STAFF.
MARK FALLENSTEIN, STAFF.
JEFF BOYD, STAFF.
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CELEBRITY BOWL CHARITIES INC.
PO BOX 819 MANKATO MN. 56001
(800-286-6079) FAX (507-386-7134)
09/14/95
To:
Mayor/City Council of Hopkins:MN.
From:
Celebrity Bowl Charities
Subj:
Premise Permit Application for Hopkins Family Bowl
Dear Mayor and Honorable City Council Members;
Celebrity Bowl Charities me. has a premise permit application submitted to you for your
approval. Celebrity Bowl Charities wishes to obtain a charitable gambling license for Hopkins
Bowl in Hopkins Mn.
Celebrity Bowl Charities was formed in 1984. We felt that through charitable
contributions to organizations that support youth, civic projects, schools and government, that the
conununities we operate in would benefit.
. We were granted our license from the State of Minnesota on 1 April 1992 to conduct
charitable gambling in the State of Minnesota. Since that time we have generated over
$400,000.00 in funds that were dispersed in our conununities. Approxmately 30% went to
support youth sports, 40% were direct contributions to Schools or a unit of Government and the
remaining 30% went to support other civic events e.g.. Fourth of July Fireworks, Park Repair and
Maintenance, Annual Local Celebrations, Team USA Olympic support and several thousand
dollars to student scholarships.
Every establishment that desires to participate in our Charitable Gambling must become a
member of our organization. It is our intention and agreement that at least 80% of net profit
from the sales of pulltabs must stay in the community in which it was raised. This money cannot
be spent outside of the trade area of the participating site. Each month members bring donation
requests to our membership meeting for consideration. They are reviewed for compliance with
State of Minnesota regulations to insure they fulfill our stated purpose.
I am confident that the community of Hopkins will be extremely pleased with the way
Celebrity Bowl Charities will conduct itself We will be very happy to supply you with any
documents that you may require.
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e?J;i~las 1. DeMaree, Gambling Manager Celebrity Bowl Charities me.
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Celebrity Bowl Charities was organized and chartered in 1984 as an 501-C-3 charitable
organization. Our mission is to create goodwill in the communities in which we operate.
Currently we have over 250 members. These members own and operate Bowling Centers
through out the State of Minnesota. There are currently 24 Bowling Centers that are licensed to
sell Pull Tabs for Celebrity Bowl Charities.
Name of Site Member's Name City
Huikko's Bowling Center Les Huikko Buffalo
Crow River Pat Adkins S1. Michael
Recreation Lanes Gene Glorvigen Rochester
Colonial Lanes Charles Leone Rochester
Nordic Lanes Jim Kitchens Rushford
Hill Top Lanes Eugene Wright Glenwood
Ridgeview Lanes Bob Sirios Duluth
Gopher Lanes Mark Becker Plainview
B & B Olympic Bowl Bob Doherty Preston
. Elk River Bowl George Larson Elk River
Sunset Bowl Jerry Dutler Mankato
City Limits Lanes Jean Doyle Rosemount
Ely Bowling Center Leona Perushak Ely
Country Club Lanes John Eiss Tanka Bay
Spectrum Lanes Ron Rosenzweig Maple Grove
Valley Lanes Keith Braun Spring Valley
Falcon Bowl Jim Biegbach Falcon Heights
The Willows Dennis Wong Rochester
Plaza Bowl Floyd Blaeser Virginia
Marshall Bowl Bruce Shover Marshall
Garden Center LeRoy Meyer Alexandria
Concordia Lanes Joel Albrecht New Ulm
Lori Lea Lanes Lorilea Crep Park Rapids
Bowlers World Gene Ackland Waseca
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Additionally the following members have requested that Celebrity Bowl Charities obtain a
premise permit for their business.
Blue Berry Bowl Ray Jones Deer River
Midway Bowl Gene Glorvigen Grand Rapids
Trophies Paul Meleen Onamia
Ruttles John Gallup Mankato
Bemidji Bowl Steve V osiska Bemidji
Hopkins Family Bowl Gene Wright Hopkins
It is Celebrity Bowl Charities policy that at least 80% of net profit derived from the the sales
of pull tabs be spent in the community in which it was raised. We have found our members are
very sensitive to the need's of the communities in which they conduct business. Our members
bring forth requests for the expenditure offunds for Lawful purpose at our monthly membership
meetings. Our membership reviews these requests to insure that they meet the State of Minnesota
guidelines for lawful purpose. Tfthe requests meet the criteria the membership then votes to
approve the donation. (See Transactions by Account Report)
To protect each community's money, the net profit from each site is put into a escrow account
each month. (See Donation Account Balances report). By doing this we are able to track the
donations that are disbursed in each community. This provides a means where no other
community can request funds that belong to you. Hopkins Bowl will be given detailed reports of
each transaction every month. This report is also available to the City Clerk of Hopkins if you so
desire.
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POLICY 4-D
LAWFUL GAMBLING
1. PURPOSE
1.01 The purpose of this policy is to establish a gambling policy for lawful gambling in the City
of Hopkins.
2. REGULA TIONS
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 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 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.
2.06 The operation of gambling devices and the conduct of bingo and raffies 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 the
receipts and profits generated from the operation.
2.07 The gambling manager shall be an active member of the organization issued the license
and shall qualify under state law.
Legislative Policy Manual -- Chapter 4-D Page I
.
.
.
2.08 Participants in raffies, paddlewheels, 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 shan be eighteen.
2.09 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.
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.
2.10 A fee of $100.00 shall be charged to all licensed organizations submitting a Premises
Permit Renewal Application for approval by the City.
Established 8/18/87
Revised 4/19/94
City of Hopkins
Legislative Policy Manual -- Chapter 4-D
Page 2