CR2013-122 Application for Charitable Gambling Premises Permit for Hopkins Raspberry FestivalNovember 19, 2013 Council Report 2013-122
Application for Charitable Gambling Premises Permit
For Hopkins Raspberry Festival
Proposed Action
Staff recommends adoption of the following motion: Adopt Resolution 2013-075, to approve
issuing of a premises permit for lawfulag mbling to be conducted by the Hopkins Raspberry Festival
at Hopkins Tavern On Main located at 819 Mainstreet, Hopkins, MN.
Overview
The Hopkins Raspberry Festival has submitted an application for a gambling premises permit to
conduct lawful gambling at Hopkins Tavern On Main which authorized a lease agreement for use of
their space located at 819 Mainstreet. The Minnesota Gambling Control Board only approves
permits the first of each month therefore the new lease is scheduled to begin December 1, 2013.
The Hopkins Raspberry Festival does not intend to begin gambling operation until January 1, 2014.
The only way the Raspberry Festival would start operation before that date would be if the current
organization is no longer operating at this location as per section 2.07 of the City's policy 4-A
regarding Lawful Gambling which prohibits more than one organization conducting gambling
within a single premise.
The Raspberry Festival currently has a gambling premises permit at the Wild Boar located at 1022
Main Street and Lindee's Saloon and Eatery located at 919 Cambridge Street, Hopkins, MN.
Mr. Benowitz, the owner of Hopkins Tavern On Main has served a 30 day written notice to Ms.
Tighe and Ms. Black to terminate their lease agreement effective December 31, 2013.
Primary Issues to Consider
• Should the City Council adopt the resolution approving the premises permit for lawful
gambling for the Hopkins Raspberry Festival at Hopkins Tavern On Main?
Supporting Documents
• Resolution No. 2013-075
• Policy 4-A, Lawful Gambling
• Copy of termination letters to the Hopkins Area Jaycees
• Premises Permit Application and Lease for Lawful Gambling Activity is available in City
Clerk's office
Kris Luedke, City Clerk
Financial Impact: $ 100.00 Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.):
Notes:
Council Report 2013-122
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 2013-075 for issuance of a premises permit for the Hopkins Raspberry
Festival.
2. Continue the item for additional information.
3. Deny Resolution 2013-075 and the premises permit would not be issued. If denied, Hopkins
Tavern On Main would not have a charitable gambling organization providing lawful gambling
effective January 1, 2014 until another premises permit was approved.
Staff recommends alternative one.
Council Report 2013-122
Page 3
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2013-075
RESOLUTION TO APPROVE ISSUING OF A PREMISES
PERMIT FOR LAWFUL GAMBLING TO BE CONDUCTED
BY THE HOPKINS RASPBERRY FESTIVAL
AT HOPKINS TAVERN ON MAIN
819 MAINSTREET, HOPKINS MN
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 Hopkins
Tavern On Main located at 819 Mainstreet, Hopkins, MN 55343 effective December 1, 2013.
Adopted by the City Council of the City of Hopkins, Minnesota, this 19`h day of November, 2013.
By:
Eugene J. Maxwell, Mayor
ATTEST:
Kristine A. Luedke, City Clerk
Council Report 2013-122
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 defmition 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 2013-122
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.] (fl (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
Molly Tighe
Ms. Tighe:
This letter serves as your written 30 day notir.n. to terminate charitable gambling effective
midnight Dec 31, 2013 at Hopkins Tavern On Main at 819 Main Street Hopkins Mn.55343
Please have all pruperty beluri„ing to yuur organization removed from the premise by midnight
Dec 31, 2013 no exceptions will be made.
Enclosed you will find Gambling Control form #LG1017 which must be signed and returned to
me with in S days of receipt of this letter.
Please note that the Gambling Board is being notified of this termination.
wiczrly,
Steve Benowitz
Owner of Hopkins Tavern On Main
cc: Kim Larsson- Mn. Gambling Control
1
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Meredith Black
Ms. Black;
This letter serves as your written 30 day notice to terminate charitable gambling effective
midnight Dec 31, 2013 at Hopkins Tavern On Main at 819 Main Street Hopkins Mn.55343
Please have all property belonging to your organization removed from the premise by midnight
Dec 31, 2013 no exceptions will be made.
Cnclosed you will find Gambling Control form #LG1017 which must be signed and raturned to
me with in 5 days of receipt of this letter,
Please note that the Gambling Board is being notified of this termination.
Stev �owl tz
Owner of Hopkins Tavern On Main
cc. Kim Larsson- Mn. Gambling Control
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