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HomeMy WebLinkAbout20080804 - VI-05s ~ ~ .~ ~ 6 ~ T s° To: Mayor Hicks & Councilmembers From: Melanie Mesko Lee Date: August 4, 2008 Re: Resolution-Transfer of Premise Permit for Lawfu! Gambling at 880 Bahls Drive Council Action Requested: Adopt the attached resolution which approves a Lawful Gambling Premises Permit Transfer Application for 880 Bahls Drive. Background: Application has been received for a transfer of a premise permit for lawful gambling at the Celt's Pub, 880 Bahls Drive. This application is for a Class B license, which allows pull-tabs, tipboards, paddlewheels, and raffles. City of Hastings ~7 101 Fourth Street East ^ Hastings, MN 55033-1955 C p:651-480-2350 ^ f:651-437-4082 ^ www.ci.hastings.mn.us CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 08- -08 RESOLUTION APPROVING TRANSFER OF A PREMISE PERMIT LICENSE FOR LAWFUL GAMBLING WHEREAS, the Animal Ark has presented an application to the City of Hastings to conduct Lawful Gambling at Celt's Pub, 880 Bah1s Drive, Hastings, MN 55033; and WHEREAS, the premises application is for Class B which permits raffles, paddlewheels, tip boards, and pull-tabs; and WHEREAS, the Animal Ark shall comply with all applicable laws governing lawful gambling, including the requirement for 50% of lawful gambling expenditures to be used for lawful purposes with the City of Hastings trade area. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hastings that the Mayor and City Clerk are authorized and directed to sign this resolution and forward it to the Minnesota Department of Gaming, Gambling Control Division, showing approval of this application for a Premises Permit at Celt's Pub at 880 Bahis Drive. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HASTINGS THIS 4~' DAY OF AUGUST, 2008. Ayes: Nays: Absent: Paul J. Hicks, Mayor Melanie Mesko Lee, City Clerk (SEAL) Minnesota Lawful Gambling 5/os LG215 Lease for Lawful Gambling Activity Page 1 of 2 Check applicable item: 1. Lease for new application. Submit with new premises permit application. 2. Renewed lease. Submit with premises permit renewal. ~3 New owner Effective date / / Submit new or d d l ithi 10 d . . _ _ amen e ease w n ays after new lessor assumes ownership. 4. Amended lease • Check the change(s) in the lease: -Rent -Pre mises name _Booth/bar Activity change Other • Date that changes will be effective / / - • Both parties must initial and date all changes. • Submit changes at least 10 days before the effective date of the change. Organization name License number time phone ~ ~ ~~ 5- ~ ame of leased premises Street address City State Zip Daytime phone g -J- ~' 3 Name of legal owner of premises Business/street ad ress City State Zip Daytime phone Name of lessor (if same as legal Business/street address City State Zip Daytime phone owner, write in "SAME") Check (~) aN activities #hat will`be condlucted .Pull-tabs -Pull-tabs with dispensing device Tpboards 7` Paddlewheel -Paddlewheel with tableBingo -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. Does your organization OR any ot her organization ;conduct. gambling from a booth operation at this location? Yes No t - = - - - - - - - - - = - - - - - - - - - - - - - - - - - - - - - - J If you answered yeS to the question above, rent limits are If you answered n0 to the question above, rent limits are based on the following combinations of operation: based on the following combinations of operation: - Booth operation - Bar operation - Booth operation and pull-tab dispensing device - Bar operation with pull-tab dispensing device - Booth operation and bar operation - Pull-tab dispensing device only - Booth operation, bar operation, and pull-tab dispensing device The maximum rent allowed may not exceed $1,750 in total The maximum rent allowed may not exceed $2,500 in total per month for all organizations at this premises. per month for all organizations at this premises. COMPLETE ONE OPTION: COMPLETE ONE OPTION: Option A: 0 to 10% of the gross profits per month. Option A: 0 to 20% of the gross profits per month. Percentage to be paid ~% Percentage to be paid Option B: When gross profits are $4,000 or less per month, $0 to Option B: When gross profits are $1,000 or less per month, $0 $400 per month maybe paid. Amount to be paid $ to $200 per month maybe paid. Amount to be paid $ Option C: $0 to $400 per month on the first $4,000 of gross Option C: $0 to $200 per month on the first $1,000 of gross profit: Amount to be paid $ profits. Amount to be paid $ Plus, 0% to 10% of the gross profits may be paid per month on Plus, 0% to 20% of the gross profits may be paid per month on grossprofits over $4,000. Percentage to be paid % gross profits over $1,000. Percentage to be paid Bingo Rent Bar $ir>rgo Ren# Option D: 0 to 10% of the gross profits per month from all lawful gambling activities held during bingo occasions, excluding barbingo. Option F: No rent may be paid for bingo Percentage to be paid 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 N@W Bi(lg0 ACt1Ylt~/ approved by the director of the Gambling Control Board. No rent ma ybe paid for bar bingo. Rate to be paid $ per square foot. For any new bingo activity not previously The lessor must attach documentation, verified by the organization, to included in a Premises PermitApplication, confirm the comparable rate and all applicable costs to be paid by the attach a separate sheet of paper listing the organization to the lessor. days and hours that bingo will be conducted. LG215 Lease for Lawful Gambling Activity 5/08 Page 2 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, the lessor's immediate family, and any agents or gambling employees of the lessor will not participate as players in the conduct of lawful gambling on the premises. IXCEPTION: The lessor's immediate family ahd lessor's employees may participate in bar bingo if they are not involved in the sale or operation of bar bingo. Illegal Gambling • The lessor is aware ofthe 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 and that the lessor or its employees participated in the illegal gambling or knew ofthe 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 alt 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 N or Minnesota Statutes 609.75, unlf~s the organization's agents responsible for the illegal gambling activity are also agents or employees ofthe 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) ofgambling-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 ofthe 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) ofthe 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 to the permitted premises at any reasonable time during the business hour ofthe 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, snow removal, lawn services, electricity, heat, security, security monitoring, storage, other utilities or services, and 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 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 ofthe change. 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. Acknowledgment of Lease Terms I affirm that this lease is the total and only agreement between the lessor and the organization, and that all obligations and agreements are contained in or attached to this lease and are subject to the approval of the director of the Gambling Control Board. Other Signature of lessor Date r of organization offi_ci (lessee) Date Print name and title of lessor Print name and title of lessee _ lessee's business address Questions? Contact the licensing Section, Gambling Control Board, at 651-639-4000. This publication will be made available in altemafive format (i.e. large print, Braille) upon request. The information requested on this form will become public information when received by the Board, and used to determine your compliance with Minnesota statutes and rules governing lawful gambling activities.