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<br /> ~ <br /> . CITY OF ARDEN HILLS <br /> MEH:IlANOOM <br /> Dla'E : July 15, 1992 <br /> TO: Mayor and city CowI.cil <br /> catherine J. Iago, 1\Cting Clerk 1\dmi.nistrator <br /> Jerry Filla, City Attorney <br /> FRaI:@) Terry Post, TEIIIpOrary city 1lcooUntant <br /> SUBJECT: Charitable Gambling ordinances <br /> BACKGROUND : <br /> At the June 29 Council meeting, no action was taken on staff <br /> recommendations to amend the Charitable Gambling Ordinance and <br /> discussion was continued to the July 20 Council Worksession. <br /> In the intervening three weeks, there was a July 10 information meeting <br /> between staff and the seven charitable gambling organizations. 'Ibis <br /> meeting was not as productive as had been hoped and discussion focused <br /> al1nost entirely on a definitional issue. The organizations generally <br /> . take the position that the detennination of "net profit" allows for the <br /> subtraction of taxes paid. CUrrent ordinance language on this subject <br /> is quite clear in defining net profit as being "gross profit less <br /> reasonable SUIlIS actually expended for allowable expenses." Definitions <br /> for "allowable expense" and "gross profit" in the =ent ordinance make <br /> no reference to taxes paid. <br /> 'Ibis interpretation of the "net profit" definition by the organizations <br /> also :i1rpacts the amount of required trade area spending. The <br /> organizations generally view the amount required to satisfy the 50 <br /> percent net profit expenditure requirement to be less because of the <br /> lower net profit amount the 50 percent factor is calculated against. <br /> OIHER CONSIDERATIONS: <br /> 'lhe City was advised this week of the June 30 expiration of the premises <br /> permit at Flaherty's Arden Bowl for the American Business Women's Arden <br /> Hills lady Slipper Chapter. The Gambling Control Board infomed the <br /> organization that they may no longer con1uct lawful gambling at this <br /> premises. <br /> If this organization opts to renew the premises permit, the City must <br /> approve the permit application prior to final approval by the GalIlbling <br /> Control Board. <br /> What are the City's permit renewal policy and procedures? By approving <br /> . a renewal premises permit application to the state, is the city <br /> effectively approving the way past net profit contribltion and trade <br /> area expenditures payments have been calculated and made? <br />