01-28-1986 PTRC Meeting Agenda - Laserfiche WebLink

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Charlotte McNiesh / Clerk-Administrator Page Two December 12 , 1985 government normally renders. Query whether the City ' s placement of the proceeds in its Parks and Recreation Fund fits within this "lawful purpose" . It could be argued, I suppose , that the monies deposited in the Parks and Recreation Fund will be used for the erection or acquisition of real property , and, therefore, the monies derived from the pull-tab operation would not be used for a "lawful purpose" . I think that the more persuasive argument is that the placement of monies in the City ' s Parks and Recreation Fund will lessen the burdens borne by the City and augment and supplement the recreation services which it renders to its citizens . The acquisition of real property for parks out of the Fund would be an indirect, not direct, use of the funds derived from the pull-tab operation. Acting conservatively, the City may wish to obtain the written approval from the Minnesota Charitable Gambling Control Board of its use of the proceeds from the pull-tab operation. • The "lawful purpose" exception mentioned above (i.e. , "lawful purposelldoes not include the erection or acquisition of real property) can be overcome if the Board authorizes the expenditure and placement of funds as the City proposes. As to whether the City will be responsible or liable for the operation, I could find nothing in Chapter 349 which creates any liability for the City. It is merely a recipient of the proceeds. It will not be conducting the operation. Again , if the City wishes to be cautious , it perhaps should obtain a letter from St. Joseph' s Society for the Little Sisters of the Poor which states that the City is merely a recipient of some of the proceeds derived from St. Joseph' s pull-tab operation at the Blue Fox Inn , is not a partner of St. Joseph' s or a joint venturer with it, and is in no manner involved in conducting the pull-tab operation. The letter should also state that St. Joseph' s agrees to indemnify, hold harmless and defend the City against any and all claims , suits, actions , judgments , charges and fees , including attorneys ' fees and costs , which in any way might be asserted against the City or accrue to it as the result of its being a recipient of funds from the pull-tab operation. Lastly , the letter should state that St. Joseph' s understands that the City is becoming involved as a recipient of proceeds from the pull-tab operation conducted by St. Joseph' s in reliance upon the representations made by St. Joseph' s in the letter.