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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
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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.