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CR 2013-064 Application for Charitable Gambling Premises Permit for Hpkins Raspberry FestivalJuly 9, 2013 Council Report 2013-064 Application for Charitable Gambling Premises Permit For Hopkins Raspberry Festival Proposed Action Staff recommends adoption of the following motion: Adopt Resolution 2013-035, approving issuance of a premises permit for lawful gamblingLto be conducted by the Hopkins Raspbem Festival at Lindee's Saloon and Eatery located at 919 Cambridge Street, Hopkins, MN. Overview The Hopkins Raspberry Festival has submitted an application for a gambling premises permit to conduct lawful gambling at Lindee's Saloon and Eatery which authorized a lease agreement for use of their space located at 919 Cambridge Street to start August 1, 2013. The Raspberry Festival currently has a gambling premises permit at the Wild Boar located at 1022 Main Street, Hopkins, MN. Mr. Lindee, the owner of Lindee's Saloon and Eatery has served a 30 day written notice to the Hopkins Area Jaycees to terminate their Lease Agreement effective July 30, 2013. Primary Issues to Consider • Should the City Council approve the resolution approving the issuance of the premises permit for lawful gambling for the Hopkins Raspberry Festival at Lindee's Saloon and Eatery? Supporting Documents • Resolution No. 2013-035 • Policy 4-A, Lawful Gambling • Copy of termination letter to the Hopkins Area Jaycees • List of current Charitable Gambling Organizations and Establishment where Lawful Gambling is held. • Premises Permit Application and Lease for Lawful Gambling Activity is available in City Clerk's office Kris Luedke, City Clerk Financial Impact: $ Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Notes: Council Report 2013-064 Page 2 Background The City Council has to approve a premises permit before the State Gambling Board will approve it. Minnesota cities do not license lawful gambling. The State Gambling Board is the licensing authority who regulates lawful gambling. Licenses issued by the State are perpetual and valid unless suspended or revoked or terminated by the organization. The State conducts the compliance reviews, site inspections, and civil investigations. The Minnesota Department of Revenue collects state lawful gambling tax and conducts tax audits. Should the City Council approve the application, the resolution of approval will be forwarded to the State Gambling Board. Alternatives 1. Approve Resolution 2013-035 for issuance of a premises permit for the Hopkins Raspberry Festival. 2. Continue the item for additional information. 3. Deny Resolution 2013-035 and the premises permit would not be issued. If denied, Lindee's Saloon would not have a charitable gambling organization providing lawful gambling until another premises permit was approved. Staff recommends alternative one. Council Report 20] 3-064 Page 3 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2013-035 RESOLUTION APPROVING ISSUANCE OF A PREMISES PERMIT FOR LAWFUL GAMBLING TO BE CONDUCTED BY THE HOPKINS RASPBERRY FESTIVAL AT LINDEE"S SALOON AND EATERY WHEREAS, the Hopkins Raspberry Festival has been an integral part of the Hopkins Community, and WHEREAS, the Hopkins Raspberry Festival has applied for a gambling license to conduct lawful gambling, and WHEREAS, the Hopkins Raspberry Festival 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 Raspberry Festival's Premises Permit application for Lindee's Saloon and Eatery located at 919 Cambridge St., Hopkins, MN 55345. Adopted by the City Council of the City of Hopkins, Minnesota, this 9`" day of July, 2013. By: Eugene J. Maxwell, Mayor ATTEST: Kristine A. Luedke, City Clerk Council Report 2013-064 Page 4 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 has its principal or registered office, street address and zip code within the City of Hopkins. 2.03 The organization defined in Section 2.02 must be engaged in its primary 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 as defined in Minnesota Statute Chapter 349. 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 permit or license to conduct bingo will only be approved for an organization that is licensed pursuant to Minnesota Statute, section 349.16, and that conducts lawful gambling on premises that it owns and operates. This section shall not apply to the use of electronic bingo devices as defined in Minnesota Statute, section 349.12 2.07 Only one organization, as defined in Section 2.02, may conduct gambling within a single owned, occupied or leased premise. 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 the receipts and profits generated from the operation. Council Report 2013-064 Page 5 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 notice sent to the general membership announcing the meeting to authorize gambling activities, and 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 liquor 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 An investigation fee of $100.00 shall be charged to all organizations submitting a Premises Permit Application or Applications for approval by the City. 2.15 The City shall receive 10% of net profits from organizations conducting gambling in leased premises. (The City never adopted an ordinance enacting this provision as required by MN Statute 349.213, Sub.] (f) (2).) Established 11/19/85 by Resolution 85-3218 Revised 10/5/1993 Revised 4/19/94 Revised 12/16/97 Revised 8/19/2003 Revised 3/5/2013 City of Hopkins June 24t", 2013 Molly Tighe, President Meredith Black, Gambling Manager Hopkins Area Jaycees 5 7th Avenue North Hopkins, MN 55343 Dear Ms. Tighe and Ms. Black: This letter serves as your written 3o day notice to terminate charitable gambling effective midnight July 31, 2013 at Lindee's Saloon and Eatery located at 919 Cambridge Street, Hopkins Mn 55343• Please have all property belonging to your organization removed from the premise by midnight July 31, 2013 no exceptions will be made. Enclosed you will find Gambling Control's form #LGio17 which must be signed and returned to me within 5 days from the receipt of this letter. Please note that Gambling Control Board is being notified of this termination. Sincerely Robert F. Lindee Owner of Lindee's Saloon and Eatery cc: Kim Larsson — Mn. Gambling Control List of Current Charitable Gambling Organizations and the Establishments where Gambling is held June 28, 2013 Organization Address City St Zip American Legion Post 320 10 -12th Ave S Hopkins MN 55343 Elks Lodge 2221 30 8th Ave S Hopkins MN 55343 Hopkins Area Jaycees 5 7th Ave N Hopkins MN 55343 in Hopkins Tavern on Main 819 Mainstreet Hopkins MN 55343 and Lindees 919 Cambridge Hopkins MN 55343 Hopkins Hockey Association 11000 Excelsior Hopkins MN 55345 in Tuttle's Bowling, Bar & Grill 107 Shady Oak Rd Hopkins MN 55343 and Mainstreet Bar & Grill 814 Mainstreet Hopkins MN 55343 Raspberry Festival 175 Jackson Ave N #417 Hopkins MN 55343 in Wild Boar 1022 Main Street Hopkins MN 55343 VFW Post 425 100 Shady Oak Rd Hopkins MN 55343