CR 05-158 Charitable Gambling Premises Permit Application for the Hopkins Youth Hockey Assn
November 29, 2005
Council Report 2005-158
CHARITABLE GAMBLING PREMISES PERMIT APPLICATION FOR
THE HOPKINS YOUTH HOCKEY ASSOCIATION (HYHA)
Staff recommends approval of the following motion: Move that the Hopkins City Council
adopt Resolutions 2005-116, approving the charitable gambling premises permit for the
Hopkins Youth Hockey Association at 107 Shady Oak Road with the condition that HYHA
submit a copy of their audit as soon as it is complete.
Adoption of this resolution will allow the HYHA to continue to run the existing charitable
gambling activities at Tuttles' Hopkins Recreation Center.
Overview
. The HYHA has requested a renewal of their gambling license and premises permit.
They conduct charitable gambling at Tuttles only.
. They received an extension from the State of Minnesota to complete their audit
last year, because it was their first year of operation. They have an independent
auditor who is doing the audit. It is not complete at this time. They will need to
submit the audit to the state with their renewal forms, so the audit should be
complete by the end of the month.
Primary Issues to Consider
. Does this organization meet the criteria of the City's gambling policy?
Yes
. Has the organization conducted its past gambling operations in accordance with
state and local laws?
Yes
Supporting Documents
. Resolution 2005-116
. Legislative Policy 4-A, Lawful Gambling
. List of donations made by the HYHA
. Gambling License Application available in the City Clerk's office
~~~
Terry Obermaier, City Clerk
Council Report 2005-1 30
Page 2
Alternatives
1. Approve Resolution 2005-, allowing the Hopkins Youth Hockey Association to
continue the present gambling activities at the present location.
2. Do not approve the resolutions with the result that the Hopkins Youth Hockey
Association will no longer have gambling in the City of Hopkins.
3. Continue the item for more information.
Staff recommends alternative one.
CITY OF HOPKINS
HENNEPIN COUNTY , MINNESOTA
RESOLUTION 2005-116
RESOLUTION APPROVING A GAMBLING
LICENSE FOR THE HOPKINS YOUTH HOCKEY ASSOCIATION
WHEREAS, the Hopkins Youth Hockey Association has been an
integral part of the Hopkins Community, and
WHEREAS, the Hopkins Youth Hockey Association applied for a
gambling license to conduct lawful gambling in 2006 and 2007, and
WHEREAS, the Hopkins Youth Hockey Association has conducted
gambling activities in accordance with state law and Hopkins City Policy,
NOW, THEREFORE, be it hereby resolved that the City Council of the
City of Hopkins, Minnesota, approves the Hopkins Youth Hockey Association
Premises Permit Renewal application at Tuttles Family Entertainment, 107
Shady Oak Road, Hopkins.
Adopted by the City Council of the City of Hopkins, Minnesota, this 20th day
of December, 2005.
Eugene J. Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
POLICY 4-A
LAWFUL 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 approved 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, 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 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 $100.00 shall be charged to all organizations submitting a Premises Permit
Application or Applications for approval by the City.
Established 11/19/85 by Resolution 85-3218
Revised 4/19/94
Revised 12/16/97
City of Hopkins
Legislative Policy Manual n Chapter 4-A
2
Hopkins Youth ~key Assn
2004
Pull Tabs
2004 ,)AN I FEE I MAR I Al?R I MAY I JUN I JUL I AUG I SEI? -I OCT I NOV I DEC Tota1s
Gross Sa1es lOA 76226 80568 81022 100415 86369 67746 65594 86186 81325 106013 108856 123403 1063723
Prizes lOB 60297 65235 65365 83940 71085 55757 52812 69944 66713 88249 86863 102451 868711
Net Deposit 10C 15929 15333 15657 16475 15284 11989 12782 16242 14612 17764 21993 20952 195012
Comb Ree Tax 11 0 0 0 0 0 0 0 0 0 0 0 1213 1213
Board Fee 12 76 81 81 100 86 68 66 86 81 106 109 123 1064
Excise Tax 14 1115 2080 1615 1279 2043 1676 1468 1099 1946 1149 2597 2550 20617
Gross Profit 16 14738 13173 13961 15096 13155 10245 11248 15056 12584 16509 19287 17065 172118
Expenses 36 13364 12427 11470 9367 10736 9191 11726 9314 8918 9614 10137 15300 131564
Net Profit 37 1374 746 2491 5729 2419 1053 -478 5742 3666 6896 9151 1765 40554
Lawful l?urpose 41 0 0 0 0 0 0 0 0 0 0 0 0 0
2004 Receipts & Expenses.xls
Hopkins Youth JlPkey Assn
200-l$'
Pull Tabs
2005 JAN I FEB I MAR I A1?R I MAY I JUN I JUL I AUG I SEP I OCT I NOV I DEC Totals
Gross Sa1es lOA 129614 130640 129778 97522 89650 81479 57874 72041 68794 86792 944184
Prizes lOB 106014 105905 107554 79694 73846 69142 49772 60049 56082 72650 780708
Net Deposit 10C 23600 24735 22224 17828 15804 12337 8102 11992 12712 14142 0 0 163476
Comb Reo Tax 11 2220 4442 5456 4974 4572 4155 0 0 0 0 25820
Board Fee 12 130 131 130 98 90 81 58 72 69 87 944
Excise Tax 14 1973 2541 4141 1522 2179 1932 758 2954 307 1163 19469
Gross I?rofit 16 19277 17621 12497 11235 8964 6168 7286 8966 12336 12893 0 0 117243
Expenses 36 10369 -13300 10432 9991 10183 10340 12200 9663 9365 11247 80488
Net I?rofi t 37 8908 30922 2065 1244 -1219 -4172 -4914 -697 2972 1646 0 0 36756
Lawfu1 l?urpose 41 6000 20784 4700 10180 40715 -15000 0 0 0 500 67879
2004 Receipts & Expenses.xls
HOPKINS YOUTH HOCKEY ASSOCIAITON
Lawful Purpose Expenditures Exhibit:
01-31-05
01-31-05
02-25-05
02-28-05
03-31-05
03-31-05
03-31-05
04-30-05
04-30-05
04-30-05
05-31-05
05-31-05
05-31-05
05-31-05
06-30-05
Hopkins Pavilion
City of Hopkins
HYHA
HYHA
HYHA
HYHA
ICA Food Shelf
Kwik Rink
HYHA
HYHA
Hopkins Baseball
HYHA
HYHA
HYHA
HYHA
High School Locker Room Project $ 5,000.00
(fIrst annual payment often)
General donation $ 1,000.00
General Fund - offset for advances $24,307.26
to Charitable Gambling operation -
per State Gambling Control rules -
no donations to any entity
Unsold ticket credit - per State
Gambling Control rules - no
donations to any entity
Player development for youth players$ 1,200.00
that were moving on to the Hopkins
High School Hockey Program
Player development skills program $ 3,000.00
General donation $ 500.00
Synthetic ice added to shooting $ 6,630.00
Room at the Pavilion (capital improvement)
General fund $ 2,715.00
Improvements to shooting room at $ 3,550.00
Pavilion
Hopkins Area Little League
Super skills player development
Karns Skating Dynatics ($8,500)
Stauber Goa1crease ($4,500)
Minnesota Made ($2,000)
Growing the Mite Program
Starter hockey gear for fIrst
year mites ($3,000)
Mite recruitment jamboree ($1,000)
Financial scholarships for players $ 3,000.00
in need (application process)
Deposit to Charitable Garribling ($15,000.00)
Operation - from Super Skills fund -
($ 3,523.54)
$ 1,000.00
$ 30,000.00
$ 4,000.00
Page 2
10-17-05
HOPKINS YOUTH HOCKEY ASSOCIATION
leA Food Shelf
due to downturn in pull tab sales
General donation
$ 500.00
$67,378.72