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. . . Minutes of the Arden Hills Council Worksession, 6-15-92 Page 5 TIF (Cont'd) Casserly advised the City may give concept approval to the Developer's request, assuming satisfactory solutions to the concerns listed, so that the Developer may proceed to request an allocation from the state for tax exempt financing. After discussion, Council expressed willingness to consider the Cottages as a viable project. Councilmember Hicks expressed his preference that the tax exempt financing period be eight to ten years, versus 15 years as proposed by the Developer. Council directed Casserly to contact Mr. Arkell to discuss the consensus relating to this proposal and request Arkell to address the concerns discussed in Casserly's report. CHARITABLE GAMBLING ORDINANCE Council was referred to a memorandum from Temporary Accountant Terrance Post dated 6/12/92, regarding charitable gambling operations, the reporting system and imposing a gambling tax. Post advised he had surveyed several communities regarding the method of calculating net profit contributions and whether or not these cities impose a gambling tax. He noted that 36 percent of those communities surveyed impose a gambling tax which tax is computed on the basis of gambling receipts, less prizes, times the tax rate. Post outlined reasonable expenses the City may anticipate to monitor gambling activity within the city relating to legal counsel, staff time and outside contractors time; approximately $18,000.00. He stated a gambling tax rate of .75 percent appears to be justifiable and supportable. councilmember Malone favored imposing the tax. Councilmember Hicks agreed and suggested a reduction in the percent of profit required to be spent within the trade area; currently 50 percent, recommended reduction to 30 percent. There was discussion relating to enforcement of the tax, allowable deductions, use of the monies to establish an endowment/park fund.