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HomeMy WebLinkAboutItem 06.nMarch 3, 2011 Proposed Action RESOLUTION APPROVING LAWFUL GAMBLING BY THE LAKEVILLE LIONS AT THE CHART HOUSE Overview Item No. Staff recommends adoption of the following motion: Move to approve resolution granting approval to Lakeville Lions for charitable gambling at the Chart House. The Lakeville Lions has applied to the State of Minnesota Gambling Control Board for a lawful gambling premises permit to sell pull -tabs at the Chart House. The application requires a resolution of approval by the City Council. The Lakeville Lions has entered into a Lease for Lawful Gambling Activity with Josh Ruppert, owner of the Chart House. The Police Department finds no reason to deny the request for charitable gambling. Primary Issues to Consider Does the organization meet the qualifications of Minnesota Statutes 349.16, Subd. 2, along with one of the conditions as outlined in Section 3 -4 -7 of the Lakeville City Code? The Lakeville Lions is a qualified organization and currently conducts lawful gambling at Carbone's and Goodfellas. Supporting Information • Resolution granting approval for charitable gambling • Premises Permit Application • Lease for Lawful Gambling Activity Financial Impact: $ Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Notes: RESOLUTION GRANTING APPROVAL FOR CHARITABLE GAMBLING WHEREAS, the City of Lakeville received an application from the Lakeville Lions for a Lawful Gambling Premises Permit at the Chart House; and WHEREAS, the Lakeville Police Department has reviewed the application and run appropriate checks on the organization and applicant, and found all parties clear of any concerns relating to the issuance of a gambling permit. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lakeville grants approval to the Lakeville Lions to obtain a Lawful Gambling Premises Permit from the Minnesota Gambling Control Board for lawful gambling activities at the Chart House, 11287 Klamath Trail. ATTEST: DATED this 7th day of March 2011. Charlene Friedges, City Clerk CITY OF LAKEVILLE RESOLUTION NO. 11- CITY OF LAKEVILLE BY: Mark Bellows, Mayor LA.Z 14 rremises rermit Application Annual Fee $150 FOR BOARD USE ONLY Check # Organization Information $ 1. Organization name Lakeville Lion License numbe 01947 2. Chief executive officer (CEO) John Arvidson ( ) Daytime phone 952 985 - 4803 3. Gambling Susan Frandru 9 mana 9 e r Daytime phone 952 469 - 5785 Gambling Premises Information 4. Current name of site where gambling will be conducted Chart House 5. List any previous names for this location 6, Street address where premises is located 11287 Klamath Trail (Do not use a P.O. box number or mailing address) 7. City 1Township Lakeville OR I County Dakota Zip code 55044 8. Does your or a nization own the building where the gambling will be P1 Yes - No If no, attach LG215 Lease for Lawful Gambling Activity 9. Is any other organization conducting gambling at this site? _Yes Xi No 10. Has your organization previously conducted gambling at this site? conducted? fl Don't know [Yes MNo Gambling Bank Account Information(must be in Minnesota) 11. Bank name Wells Fargo Bank account numbe 530000392 0000038738 12. Bank street address City State Zip code 8790 207th 5t. W Lakeville MN 55044 All Temporary and Permanent Off site Storage Spaces (for gambling equipment and records related to this site must be stored in Minnesota) 13. Address (Do not use a P.O. box number) City State Zip code 22805 Pine Trail Lakeville MN 55044 9455 215th St. W. Lakeville MN 55044 Bingo Occasions (including bar bingo) 14. Enter day and beginning /ending hours of bingo occasions (A M. or P.M.). An occasion may not exceed 8 hours. Day Beginning /Ending Hours Day Beginning /Ending Hours to o t o to o to to to f Reset Form Print For Minnesota Lawful Gambling 1/10 Pane 1 of 2 Local Unit of Government Approval CITY APPROVAL for a gambling premises located within city limits City name Lakeville COUNTY APPROVAL for a gambling premises located in a township County name Date approved by city council / / Date approved by county / / Resolution number Resolution number Signature of city personnel Signature of county personnel Title Date / / Title Date / / Acknowledgment and Oath 1. I hereby consent that local law enforcement officers, 5 I am the chief executive officer of the organization. the Board or its agents, and the commissioners of 6 I assume full responsibility for the fair and lawful operation of revenue or public safety and their agents may enter all activities to be conducted. the premises to inspect it and enforce the law. 7 I will familiarize myself with the laws of Minnesota governing 2 The Board and its agents, and the commissioners of lawful gambling and rules of the Board and agree, if licensed, revenue and public safety and their agents are to abide by those laws and rules, including amendments to authorized to inspect the bank records of the them. gambling account whenever necessary to fulfill g Any changes in application information will be submitted to the requirements of current gambling rules and law. Board no later than 10 days after the change has taken effect. 3 I have read this application and all information submitted to the Board is true, accurate, and g I understand that failure to provide required information or complete providing false or misleading information may result in the gwred in -e anon h.,c b n II &closed. denial or revocation of the license. ^ ,✓ ;/ 5' 3 \ k ture of 'hie f Execu ive Off er (designee may not sign) Date f John Arvidson int name Required Attachments Monthly Regulatory Fee If you receive a premises permit for this site, there is a monthly regulatory fee of 0.1% (.001) of gross receipts from lawful gambling conducted at the site. The fee is reported on the G1 Lawful Gambling Monthly Summary and Tax Return and paid with the monthly tax report. 1. If the premises is leased, attach a copy of your lease- Use LG215 Lease for Lawful Gambling Activity. 2. $150 annual premises permit fee, for each permit. Make check payable to "State of Minnesota." Mail to: Gambling Control Board 1711 West County Road B, Suite 300 South Roseville, MN 55113 Questions? Call 651 - 639 -4000 and ask for Licensing. This form will be made available in alternative format O. e. large print, Braille) upon request. Data privacy notice: The information Your organization's name and address work requires access to the information; requested on this form (and any will be public information when Minnesota's Department of Public Safety; attachments) will be used by the Gambling received by the Board. All other Attorney General; Commissioners of Control Board (Board) to determine your information provided will be private Administration, Minnesota Management & organization's qualifications to be involved data until the Board issues the permit. Budget, and Revenue; Legislative Auditor; in lawful gambling activities in Minnesota. When the Board issues the permit, all national and international gambling Your organization has the right to refuse to information provided will become public. regulatory agencies; anyone pursuant to supply the information requested; If the Board does not issue a permit, all court order; other individuals and agencies however, if your organization refuses to information provided remains private, specifically authorized by state or federal supply this information, the Board may not with the exception of your law to have access to the information; be able to determine your organization's organization's name and address that individuals and agencies for which law or qualifications and, as a consequence, may will remain public. Private data about legal order authorizes a new use or sharing refuse to issue a permit. If your your organization are available to: of information after this notice was given; organization supplies the information Board members; Board staff whose and anyone with your written consent. requested, the Board will be able to process your organization's application. Reset form Print Form LG214 Premises Permit Application 1/10 Page 2 of 2 Check applicable item: X1. New application. Submit lease with new premises permit application. 2. New owner. Effective date Submit new lease within 10 days after new lessor assumes ownership. 3 . New lease. (Do not submit existing lease with amended changes). Date that changes will be effective. Submit changes at least 10 days before the effective date of the change. Organization name Address License number Lakeville Lions 22805 Pine Trail, Lakeville, MN 55044 01947 Daytime phone 952 -469 -5785 Name of leased premises i Street address Chart House 11287 Klamath Trail I City State Lakeville MN I Zip 55044 Daytime phone 952- 435 -7156 Vame of legal owner of premises Josh Ruppert Business /street address 11287 Klamath Trail City State Lakeville MN Zip Daytime phone 55044 952- 435 -7156 _Name of lessor (if same as legal Business /street address owner, write in "SAME ") same City State Zip Daytime phone Check all activities that will be conducted N Pull -tabs El Pull -tabs with dispensing device Dipboards .aPaddlewheel ElPaddlewheel with table El Bingo • Bar bingo Pull -tab, Tipboard, and Paddlewheel Rent (No lease required for raffles.) Booth operation - sales of gambling equipment by an employee Bar operation - sales of gambling equipment within a leased (or volunteer) of a licensed organization within a separate enclosure premises by an employee of the lessor from a common area where that is distinct from areas where food and beverages are sold, food and beverages are also sold. r poes your o nization OR any other organization conduct gamblinq from a booth operation at this location? 1 El Yes No L If you answeredyeS to the question above, rent limits are based on the following combinations of operation: it Booth operation - Booth operation and pull -tab dispensing device - Booth operation and bar operation - Booth operation, bar operation, and pull -tab dispensing device The maximum rent allowed may not exceed $1,750 in total per month for all organizations at this premises. COMPLETE ONE OPTION: Option A: 0 to 10% of the gross profits per month. Percentage to be paid % J If you answered 110 to the question above, rent limits are based on the following combinations of operation: - Bar operation - Bar operation with pull -tab dispensing device - Pull -tab dispensing device only COMPLETE ONE OPTION: Option A: 0 to 20% of the gross profits per month, Percentage to be paid - 70 % Option B: When gross profits are $4,000 or less per month, $0 to $400 per month may be paid. Amount to be paid $_ Option B: When gross profits are $1,000 or less per month, $0 to $200 per month may be paid. Amount to be paid $ Option C: $0 to $400 per month on the first $4,000 of gross profit. Amount to be paid $ Option C: $0 to $200 per month on the first $1,000 of gross profits. Amount to be paid $ , Plus, 0% to 10% of the gross profits may be paid per month on gross profits over $4,000. Percentage to be paid % Plus, 0% to 20% of the gross profits may be paid per month on gros profits over $1,000. Percentage to be paid % Bingo Rent Bar Bingo Rent Option D: 0 to 10% of the gross profits per month from all lawful gambling activities held during bingo occasions, excluding bar bingo. Percentage to be paid Option F: No rent may be paid for bingo conducted in a bar. Option E: A rate based on a cost per square foot, not to exceed 110% of a comparable cost per square foot for leased space, as approved by the director of the Gambling Control Board. No rent may be paid for bar bingo. Rate to be paid $ per square foot. New Bingo Activity For any new bingo activity not previously included in a Premises Permit Application, attach a separate sheet of paper listing the days and hours that bingo will be conducted. The lessor must attached documentation,verified by the organization, to confirm the comparable rate and all applicable costs to be paid by the organization to the lessor. Minnesota Lawful Gambling LG215 Lease for Lawful Gambling Activity Print Form 12/10 Page 1 of 2 Lease Term The term of this lease agreement will be concurrent with the premises permit issued by the Gambling Control Board (Board). Management of Gambling Prohibited The owner of the premises or the lessor will not manage the conduct of gambling at the premises. Participation as Players Prohibited The lessor will not participate directly or indirectly as a player in any lawful gambling conducted on the premises. The lessor's immediate family will not participate directly or indirectly as a player in a pull -tab, tipboard, or paddlewheel game conducted on the premises. Illegal Gambling The lessor is aware of the prohibition against illegal gambling in Minnesota Statutes 609.75, and the penalties for illegal gambling violations in Minnesota Rules 7865.0220, Subpart 3. In addition, the Board may authorize the organization to withhold rent for a period of up to 90 days if the Board determines that illegal gambling occurred on the premises or that the lessor or its employees participated in the illegal gambling or knew of the gambling and did not take prompt action to stop the gambling. Continued tenancy of the organization is authorized without payment of rent during the time period determined by the Board for violations of this provision, as authorized by Minnesota Statutes 349.18, Subdivision 1(a). To the best of the lessor's knowledge, the lessor affirms that any and all games or devices located on the premises are not being used, and are not capable of being used, in a manner that violates the prohibitions against illegal gambling in Minnesota Statutes 609.75. Notwithstanding Minnesota Rules 7865.0220, Subpart 3, an organization must continue making rent payments under the terms of this lease, if the organization or its agents are found to be solely responsible for any illegal gambling, conducted at this site, that is prohibited by Minnesota Rules 7861.0260, Subpart 1, item H or Minnesota Statutes 609.75, unless the organization's agents responsible for the illegal gambling activity are also agents or employees of the lessor. The lessor must not modify or terminate the lease in whole or in part because the organization reported, to a state or local law enforcement authority or the Board, the conduct of illegal gambling activity at this site in which the organization did not participate. Other Prohibitions The lessor will not impose restrictions on the organization with respect to providers (distributors) of gambling- related equipment and services or in the use of net profits for lawful purposes. The lessor, any person residing in the same household as the lessor, the lessor's immediate family, and any agents or employees of the lessor will not require the organization to perform any action that would violate statute or rule. The lessor must not modify or terminate this lease in whole or in part due to the lessor's violation of this provision. If there is a dispute as to whether a violation occurred, the lease will remain in effect pending a final determination by the Compliance Review Group (CRG) of the Gambling Control Board. The lessor agrees to arbitration when a violation of this provision is alleged. The arbitrator shall be the CRG. Access to permitted premises The Board and its agents, the commissioners of revenue and public safety and their agents, and law enforcement personnel have access t the permitted premises at any reasonable time during the business hours of the lessor. The organization has access to the permitted premises during any time reasonable and when necessary for the conduct of lawful gambling on the premises. Lessor records The lessor must maintain a record of all money received from the organization, and make the record available to the Board and its agents, and the commissioners of revenue and public safety and their agents upon demand. The record must be maintained for 3 -1/2 years. Rent all inclusive Amounts paid as rent by the organization to the lessor are all- inclusive No other services or expenses provided or contracted by the lessor may be paid by the organization, including but not limited to: - trash removal - janitorial and cleaning services - electricity, heat - other utilities or services - storage - security, security monitoring - snow removal - lawn services - in the case of bar operations, cash shortages Any other expenditures made by an organization that is related to a leased premises must be approved by the director of the Gambling Control Board. Rent payments may not be made to an individual. Changes in lease If a change in ownership occurs, the organization will submit an amended lease to the Board within 10 days after the new lessor has assumed ownership. If the lease is amended with no change in ownership, the organization will submit the amended lease to the Board at least 10 days before the effective date of the change. Acknowledgment organization, and director of the written notice. Other terms: of Lease Terms I affirm that this lease is the total and only agreement between the lessor and the that all obligations and agreements are contained in or attached to this lease and are subject to the approval of the Gambling Control Board. The lease may be terminated by either party without cause with a 30 -day Sign a . 3of ess '7 Date Si ature organ iz.,'.n offs c :I (lessee) Date Pr t name and title o lessor Josh Ruppert, Owner 'ri name and t 'tie of lessee Susan Frandrup, Gambling Manager Questions? Contact This publication the Licensing Section, Gambling Control Boa will be made available in alternative format (i.e, d, at 651 639 - 4000. large print, Braille) upon request. - Print Or LG215 Lease for Lawful Gambling Activity information when received by the Board, and will be used to determine your compliance with Minnesota statutes and rules governing lawful gambling activities, 12/10 Page 2 of 2 Reset Form