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. . . Minutes of the Arden Hills Regular COLU1cil Meeting, July 9, 1990 Page 3 ORDINANCE (Cont'd) Filla reviewed the six items listed in the letter: 1. Additional Gambling Licenses - The city has the authority to issue additional licenses. . 2. License Term _ The Charitable Gambling Control Board will not issue a license for a nine month period even if requested by the City. 3. Sunset Provision - The City can reduce the number of licenses gradually over a period of time or could elllninate one license by adopting a sunset provision as part of the city code; eventually the same thing could be accomplished by refusin3' to approve reapplication if the license has been inactive for all or a portion of the previous license year. 4. Revocation of SUspenSion of Licenses - Licenses are actually issued by the Charitable Gambling Control Board; there is no provision in state law which allows the City to revoke or suspend a license issued by the Board. The city could deny approval of a renewal application because of inactivity. 5. License Approval criteria - The City can adopt, by policy or ordinance, criteria to guide Council when reviewing license applications; criteria can be as expansive as the council chooses. 6. Local Contrib.1tions of Gambling Proceeds - state law was amerrled in 1990 to allow cities to require licensed organizations expend all or a portion of their net profits within the city's trade area; the trade area should include all cities contiguous to Arden Hills. It is recommended an appropriate section be added to the =-rent regulations to become effective on some future date to allow licensed organizations to meet =-rent long term contrib.1tion commitments . Filla further suggested that if the ordinance is amerrled, one other housekeeping item matter be inserted due to a change in 1990 legislation; the state now licenses the organization without cities approval, however, cities are being asked to approve "premises permits". Councilmember Mahowald questioned if a specific sunset provision date is needed if an additional license is included in the ordinance. Filla recommended if Council authorizes an additional license with a sunset provision, a date be determined to coincide with the expiration date of the first of the two inactive licenses; at that ti1ne the city Code would automatically revert to nine licenses. He noted that Council is not compelled to renew an inactive license or approve any applications silllply because licenses are available. Filla stated that council may specify a license must be active; this is not any unreasonable qualification. He explained it is reasonable to discourage applicants from obtaining a license and not utilizing it, since there are a limited number of licenses available by Ordinance. councilmember Hansen questioned if priority must be given to renewal licenses. Filla explained the Council has the right to refuse any application, new or renewal for a license.