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<br />. CITY OF ARDEN HILLS <br /> M:EH:lIU\NOOM <br /> DATE: January 10, 1994 <br /> TO: Mayor and Oounc; l--.rs <br /> F:llCK: Dorothy A. Person, City 1\dmi.nistrator <br /> ~: Charitable Gambling Premises Pel:IlIi.t Awlic::ation - climb, <br /> me. <br /> The documents for verification of non-profit status, premises penuit <br /> application, lease and financial preli.1ninary report seem to be in order. <br /> During the investigative research, it was found that the "trade area <br /> spending requirement" that Climb, Inc. utilizes is different than <br /> previously seen in Arden Hills. <br /> Due to the nature of the business, Climb reports its theatre <br /> presentations as the basis for trade area spending. Some believe that a <br /> traditional exchange of money, rather than services (such as Climb does) <br /> is the fair measurement for 50% trade area spending. Another City who <br />. does business with Climb, Inc. has received negative feedback frOlll other <br /> non-profit groups who believe that this is not the proper understanding <br /> and application of trade area spending. These groups indicate the <br /> charges to schools differ and thus reporting of expenses and income <br /> differ; however, these statements have not been verified. <br /> Climb, Inc. also states that "grants" are given to those who need to <br /> cover a portion of the '!beatre's costs. These costs are shown as an <br /> expense. <br /> Per the City Attoxney, schools and non profit educational groups are a <br /> lawful spending use under MS349.12 subd 25.a. <br /> DAP:rk <br />. <br />