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HomeMy WebLinkAbout4E, Lake Region Hockey Gambling License ~ /],\~HILLS City Council Agenda Packet Item; ~ ~HILLS Request for Council Action Prepan:d By: Depl.: Council Mlg. Dale Final Action Needed By: Noah A. Simon Administration Febru31)' 11,2008 Budgeted Amount: Actual Amount: Funding Source: Charital:JJe GaDlblii"lg License N/A N/A N/A C:Ot;mciJ.'A~ti~)DR.~q'UlO:st:. Approve the charitable gambling license for Lake Region Hockey to operate at the Big Ten Supper Club Staff.Recommelldation: StaU recommends that the City Council approve the charitable gambling license for Lake Region Hocke)' to operate at the Big Ten Supper Club PTRC SUPPOlJjIlgDocllln~tl~~: (<it':1l9.1!Y9) X Memo....Letter: X Resolution No.: 2008-011 Ordinance No.: Engineering Recommendation: Attomey Recommendation: X Olher: Application packet ~ ~HILLS MEMORANDUM DATE: February 11,2008 TO: City Councilmembers FROM: Noah A. Simon, Assistant City Administrator Jim Willis, Interim City Administrator SUBJECT: Charitable Gambling License Requested Action Adopt Resolution 2008-011, approving the Charitable Gambling License request submitted by Lake Region Hockey to operate at the Big Ten Supper Club. Backl!.round The City has received a charitable gambling license application from Lake Region Hockey and all required paperwork. I ~ ~HILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 2008-011 RESOLUTION APPROVING CHARITABLE GAMBLING LICENSE FOR LAKE REGION HOCKEY TO OPERATE PULLTABS AT THE BIG TEN SUPPER CLUB NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Arden Hills, Minnesota, that the City agrees to approve a Charitable Gambling License for the Lake Region Hockey at the Big Ten Supper Club, 4703 North Highway 10, Arden Hills, Minnesota. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS lIth DAY OF JANUARY, 2008. Stanley D. Harpstead, Mayor ATTEST: Noah A. Simon, Deputy Clerk Received JAN 2 8 2008 City of Arden Hills January 22, 2008 TO: Arden Hills City Council FROM: Mary Ann Casci, Gambling Manager for Lake Region Hockey Association SUBJECT: Charitable Gambling Resolution We have recently signed a lease with the Big Ten Supper Club to operate charitable gambling pulltabs at their location beginning April I, 2008. We are very excited about this opportunity as it will help us support over 600 families in the immediate area to afford the cost of youth hockey. We also donate to other charities and schools in the area and offer college scholarships to seniors who have participated in youth hockey. We are asking for approval of your city resolution at your next council meeting. If you have any questions or concerns please contact me at (651 )238-4781. Thank you for your consideration in this matter. ~ ~HILLS City of Arden Hills 1245 West Highway 96 Arden Hills, Minnesota 55112 Phone: 651.792.7800 Fax: 651.634.5137 www.cLarden-hills.mn.us License No. GAM08- Receipt No. Amount Paid $150,00 Date Recvd. Ins. Cer!. Tolal Fee Paid 2008 Charitable Gambling Premise Permit- Application Form (Terms of the License: 2 Year Agreement) Information (all fields are required) ~~ecQ~~c-lc6i I\'5S0C.lCL~6V\ I PO. ~o:y-I:;<'()O 5<-[ kJau 'D;ll\~ I ~~--~~ Clo:(jk~ L'C~,_%~_\(n\[) ~\~~t--~~-~~-~~~ __ffia_'<'fm Av-"x,..L(I-<;:,y_...... ..... _~L{".?~Dmd3.~='::t=:z.]"J Business Fax: _(,,_$ i)mL,3L=:t"i(i1 Business Name: Property Address: Nature of Business: Local Contact: Business Phone: Federal ID#: ~~23 -~72'flt3i:Lk~~ CO-<oc.i V\i\ to @ ,"'"., f\ . [(NY\ Website Address: Ernail Address: Premise Permit and Investigation Fee $150.00 *2007 Income and Loss Statement .Projected 2008 Receipts/Prizes *Copy of Lease Agreement (All organizations permitted to conduct lawful gambling within the City of Arden Hills shall contribute 10% (ten percent) of their net profits derived from gambling activities within the City to a special fund to be administered by the City Council for lawful purposes. Payments to the fund shall be calculated fOf quarterly periods ending on the last days of March, June, September and December. Quarterly installment payments shall be submitted together with verifiable supporting documentation no later than the twentieth day of the month following the end of the quarterly period.) A"O","'" ",_,"~., r . ' .'-~---~~ Date if;J;L1 t1g' A-r p I ( ( ~0-u +e 0 fl~eXCL-\e- C~o.\C ; -\~ La.. 'Qi:LN\f'. VI \ ~ '^i;, oJ:: ~' \ell'. c::,~~" C-\\LV> D\~ . '. . 10 "f703 N \*,~Il\.uP-( . . ').: 1+eL\.~ V\.CL'::> ~.'" Lo..u I~\~"^-' ~~ T5 '{-ea.,,:'. T ~'N'-~\\~ .. ~" ~ t'CJ..~~ y. 'I ""u.'OS. C-\r\O.y: ~\<l Lc CCiV'gu. c...!-<. '-'::3 . (\1\0. \NJ..u.e y- \'\1lLJ-e- I()-<>e\{\ -+1ile. -.j Ul;~~/LQO~ lQ:~4 rAX o~14o~(~{o CK:;)" 14] 00</005 LAKE REGION HOCKEY ASSOCIATION Big Ten $upperClub PrOjection for 2008 - 2009 May 1,2008 thru aprll 30, 2009 12 Months Pulltab Receipts 1,000,000 Pulltab Prizes 810.000 Net Receipts 190,000 Paddletickat Receipts 12.000 Paddletiekel Prizes S!..QQQ Nel Receipts 4,000 Total Net Receipts 194.000 Allowable Expense Cost of Games 22,000 Compensation 46.692 Accounting 2,800 Supplies 3.600 Equipment 2,000 Rant 21,000 Insurance 317 Licenses 8. Bonds 766 Cash Long/Short 995 Total 100,170 Current Earnings 93,830 Taxes State Tax @ 8,5% 340 City Tax 4.067 Combined receipts lex 36,000 State Tax@ 1.7% 17,000 1. 7% Refund (4250) Total 53,161 Available for Programs 40,669 81.0% 19.4% 11.3% 24.1% 1.4% 1.9% 1.0% 10.8% 0.2% 0.4% 0.5% 51.6% 48.4% 0.2% 2.1% 18.6% 8.8% -2.2% 27.4% 21.0% , \ ; J .-.J' J ()1i~O/::::VIJti l:.:l:~:. I'-AX o:.14tlL(::!(o L:K:;)M LAKE REGION HOCKEY ASSOCIATION LAWFUL GAMBLING OPERATION ASSETS & LIP.BII,ITIES AS OF APRIL 3Q, 2007 (REGULATORY BASIS) ASSETS ASSETS CASH IN CHECKING $ G&~E BANKS: MOES GAME BANKS: CHAMPPS G~IE BANK SHORTAGES; MOES GAME BANK SHORTAGES, CHAM?PS INVENTORY REF~~ RECEIVABLE TOTAL ASSETS 8,826.61 5,200.00 6,200.00 (243.00) (399.00) 918.15 11,602.71 LIABILITIES P2JD FUND BALANC2 LIABILITIES ACCOUNTS PAYABLE ACCRUED GAMBLING TAXES $ 2,347.79 13,184.97 TOTAL LIABILITIES FUND BALANCE FUND BALANCE CURRENT EARNINGS LAWF~L PURPOSE EXPENDITURES 31,190.85 269,831.60 (284,449.74) F~~ EALANCE TOTAL LIABILITIES AJIT) FUND BALANCE < SEE ACCOUNTANTS' COMPILATION REPORT> l<t] OO:.:J/O()'J $ 32,105.47 $ 15,532.76 16,572.71 $ 32,105,47 PAGE; 1 ll?J vv't/ VV::J LAKE REGION HOCKEY ASSOCIATION REVENUE AND EXPENSES REVEt~E, EXPENSES AND LAWFUL PURPOSE EXPENDITURES FOR THE ONE AND TWELVE MONTHS ENDED APRIL 30, 2007 (RECULATORY BASIS) ----- PERIOD TO DATE ---+ +----- YEAR TO DATE ____+ ACTUAL ACTUAL "-./ PULL TAB INCOME PULLTAB RECEIPTS PULLTAB PRIZES NET PULLTAB INCOME TI PBOARD INCOME TIPBOARD RECEIPTS TIPBOA!m PRIZES NET TIFBOARD INCOME RAFFLE INCOME NET RAFFLE INCOME BAR, BINGO INCOME BINGO RECEIPTS BINGO PRIZES NET BINGO INCOME J INTEREST & OTHER INCOME NET GAMING REVENUE ALLOWABLE EXPENSES COST OF GAMES PLAYED COMPENSATION & PIR TAX ACCOUNTING AND LEGAL FEES GAMBLING SUPPLIES MAINTENAJ.'OCE 0.. EQUIPMR'lT RENT INSURANCE GAMBLING MANAGER'S BOND CASH (OVER)SHORT TOTAL ALLOW EXPENSES CURRENT EARNINGS $ 251,655.00 100.00 % $ 3,428,179,00 100.00 % (209,S58.00) (83.39) (2,883,208.00) (84.10) 41,797.00 $ .00 .00 16.61 544,971.00 .00 .00 3,955.00 (2,838,00j 1,117,00 ,00 42,914,00 3,576.61 12,169.17 1,295_74 1,500.77 314.08 3,500.00 .00 .00 467.00 22,823_37 $ 20,090.63 .00 % $ .00 15.90 34,042.00 100.00 ~ (28,764.00) (84.50) .00 5,278.00 .00 .00 100.00 (n.76) 39,488.00 (31,858.66) 28_24 7,629.34 ,00 633.00 100,00 558,511.34 8.33 28.36 3.02 3.50 ,73 8.16 .00 .00 1. 09 45,n5.:J7 154,179.35 24,404.83 13,505.12 2,754.45 40,110.6,) 2,375.62 100.00 5,333.25 53_16 288,679,74 46.82 % $ 269,831.60 - < SEE AC20WNTANTS' COMPIL~TION RE?ORT > ( CONTlN'"uED 15.50 .00 100.00 (80.68) 19.32 100_00 100.00 3.22 27.61 4.37 2.42 .4:1 7.18 .43 .02 ,95 51.69 48.31 % PAGE 2 <)]/'>-'I.!...VVO 1..:1.'::'0 r."'A Q:.JIl.fClLfvfO lol\.)!l1 LAKE REGION HOCKEY ASSOCIATION LAWFUL PURFOSE EXPEt<DITURES REV~uE, EXPENSES AND LAWFUL PURPOSE EXPENDITURES FOp' THE ONE AND TWELVE MONTHS ENDED APRIL 30, 2007 (REGULATORY BASIS) .-.~' CURRENT EARNINGS TAXES 8.5%" STATE TAX 1 .7% STATE TA.X REGULATORY PEE UNSOLD TICKET REFUND COMBINED RECEIPTS TAX LOCAL GOV'T TAXES LOCAL DESIGNATED EXPENDIT ORGANIZATION LICENSE GAMBLING MGRS LICENSE PREMISE PERMIT ~OTAL TAXES/LICENSES AVAILABLE FOR ORGANIZATION BOARD APPROVED EXPENDITURES 'raTINO GRACE HIGH SCHOOL JOTINO GRACE HIGH SCHOOL TOTINO GRACE HIGH SCHOOL TOTAL BOARD APPROVED EXPE~~ AVAIhll.ELE FOR CON'IRIEUTION Ca~~ITABLE CO~"TRIBUTI0NS PRIOR MONTHS EXPENDITURES NBC SCHWANNS SUPER RINK MN STATE AGRI SOCIETY NATL SPORTS CENTER LAKE REGION HOCKEY TOTAL CHARITABLE CONTR PROFIT CARRYOVER BEGINNING PROFIT CARRYOVER ENDING PROFIT CARRYOVER l,;ZJ V<J:)j 'JI..1:"; +----PERIOD TO DATE----~ +-----yEAR TO DATE-----+ ACTUAL ACTu.:,L $ $ 20,090.63 46_32 % $ 269,831. 60 94.95 6,291,59 255.51 .00 12,834.41 .00 ,00 _00 ,00 .00 lSl,476.56 614.07 ,00 .00 .00 .00 614 .07 .00 2,000.00 1,000.00 1,000.00 5,000.00 9,COO.00 (8,385.93) .00 .22 14.56 .60 .00 29. !:ll .00 .00 .00 .00 548,50 81,158.37 3,500.95 (23,859.62 ) 140, 90S. 56 519.60 870,05 350.00 100.00 300.00 45.39 204,493.61 1.43 65,337.99 .00 .00 .00 7,500.00 (7,500.00) 2,65D_00 .00 2,550.0<? 1. 43 62,637.99 .00 4,66 2.33 2.33 11.65 68,306.13 2,000.00 1,000.00 1,000.00 5,000.00 20.97 77,306,13 (19.54) .00 (14,618.14) 31,lSlO.85 (8,385.93) (19.54)% $ , 16,572.71 ,-,' < SEE ACCODNT&~TS' COMPlLATICN REPORT> 48.31 ~ ,12 14.53 .63 (4.27) 25.23 .09 .16 .06 .02 36.52 11.70 1. 34 (1. 34) .47 .47 11.22 12,23 .36 ,18 .18 .90 13,84 (2.62) 5.58 2.97 ~ PAGE 3 Minnesota Lawful Gambling LG215 Lease for Lawful Gamblin 9.~eck applicable item: +1. Lease for new application. Submit with new premises permit application. _2. Renewed lease. Submit with premises permit renewal. _3. New owner. Effective date _'_1_ Submit new or amended lease within 10 days after new lessor assumes ownership. _4. Amended lease . Check the change(s) in the lease: _Rent _Premises name _Boothlbar _Activity change _Other . Date that changes will be effective I I . Both parties must initial and date all changes. - . Submit changes at least 10 days before the effective date of the change. Organization oa e ~ License number Lo::~e lOy\ 1-\-odc'Q: ~:550 C. () f'i537 'Rame ofleased ~,:mises fI J _ i C~ I State i Zip \)\~~'-4~'(U ic) I ifti'd-'t'l) Hill::> i MN l55iQ. Name of legal owner of premises Business/street address City _ lUQ.\v~ ~\rV'- e 6{07 Page 1 of 2 r Daytime phone i~1 ;eg-'f7; \ Name of lessor (if same as legal owner, write in "SAME") ~~e. I Check (..J> all activities that will be conducted .jLpuIH:abs _PulHabs with dispensing device fC- Tipboards Paddlewheel _Paddlewheel with table ~Bingo Pull-tab, Tipboard, and Paddlewheel Rent (No lease required for rames.) Booth operation - sales of gambling equipment by an employee Bar operation - sales of gambling equipment within a leased (or volunteer) of a licensed organization within a separate enclosure premises by an employee of the lessor from a common area where that is distinct from areas where food and beverages are sold. food and beverages are also sold. r---------------------------------- Does your oroanization OR any other orvaq'lation conduct gambling -, L from a booth operation at this location? 4- Yes _ No ----------------- ----------------~ If you answered yes to the question above, rent limits are If you answered no to the question above, rent limits are based on the following combinations of operation: based on the following combinations of operation: Booth operation Bar operation Booth operation and pull-tab dispensing device Bar operation with pull-tab dispensing device Booth operation and bar operation Pull-tab dispensing device only Booth operation, bar operation, and pull-tab dispensing device ! State ; I if-, Daytime phone 'So.~ Zip Business/street address iCily I State I ! Zip ! Daytime phone Bar bingo The maximum rent allowed may not exceed $1,750 in total per month for all organizations at this premises. The maximum rent aliowed may not exceed $2,500 in total per month for all organizations at this premises. COMPLErEONE OPITON: Option A: 0 to 10% oft~e..llross profits per month. Percentage to be paid I U % COMPLErE ONE OPITON: Option A: 0 to 20% of the gross profits per month. Percentage to be paid % Option B: When gross profits are $4,000 or less per month, $0 to Option B: When gross profits are $1,000 or less per month, $0 $400 per month may be paid. Amount to be paid $ to $200 per month may be paid. Amount to be paid $ Option c: $0 to $400 per month on the first $4,000 of gross profit. Amountto be paid $ Plus, 0% to 10% of the gross profits may be paid per month on gross profits over $4,000. Percentage to be paid % Bingo Rent Option D: 0 to 10% of the gross profits per month from all lawful gambling activities held during bingo occasions, excluding barbingo. Percentage to be paid % Option C: $0 to $200 per month on the first $1,000 of gross profits. Amount to be paid $ Plus, 0% to 20% of the gross profits may be paid per month on gross profits over $1,000. Percentage to be paid % Bar Bingo Rent L Option F: No rent may be paid for bingo conducted in a bar. Option E: A rate based on a cost per square foot, not to exceed 110% of a comparable cost per square foot for leased space, as approved by the director of the Gambling Control Board. No rent may be paid for bar bingo. Rate to be paid $ per square foot. The lessor must attach dorumentation, verified by the organization, to confinn the comparable rate and all applicable costs to be paid by the organization to the lessor. New Bingo Activity For any new bingo activity not previously induded in a Premises PennitApplication, attach a separate sheet of paper listing the days and hours that bingo will be conducted. LG215 Lease for Lawful Gambling Activity 6/07 Page 2 of 2 Lease Term The term of this lease agreement will be concurrent with the premises permit issued by the Gambling Control Board (Board). Management of Gambling Prohibited The owner of the premises or the lessor will not manage the conduct of gambling at the premises. Partidpation as Players Prohibited The lessor, the lessor's immediate family, and any agents or gambling employees of the lessor will not parlidpate as players in the conduct of lawful gambling on the premises. I Other Prohibitions j . The lessor will not impose restrictions on the organization with respect I to providers (distributors) of gambling-related equipment and services or in the use of net profits fDr lawful purposes. I . The lessor, any person residing in the same household as the lessor, I the lessor's immediate family, and any agents or employees of the I lessor will not require the organization to perform any action that I would violate statute or rule. The lessor must not modify or terminate ! this lease in whole or in part due to the lessor's violation of this i proVision. If there is a dispute as to whether a violation occurred, the lease will remain in effect pending a final determination by the Compliance Review Group (CRG) of the Gambling Control Board. The lessor agrees to arbitration when a violation of this provision is alleged. The arnitrator shall be the CRG. Illegal Gambling . The lessor is aware of the prohibition against illegal gambling I in Minnesota Statutes 609.75, and the penalties for illegal I .. gambling violations in Minnesota Rules 7865.0220, Subpart 3. ! Access to permitted premISes I The Board and its agents, the commissioners of revenue and public In addition, the Board may authorize the organization to I safety and their agents, and law enforcement personnel have access to withhold rent for a period of up to 90 days if the 80ard I the permitted premises at any reasonable time dunng the busmess hours determines that illegal gambling occurred on the premises and I of the lessor: The organization has access to the permitted premises that the lessor or its employees parlidpated in the illegal I dunng any time reasonable and when necessal)' for the conduct of gambling or knew of the gambling and did not take prompt I lawful gambling on the premises. action to stop the gambling. Continued tenancy of the ! organization is authorized without payment of rent during the I Lessor records. . . time period determined by the Board for violations of this I The lessor must maintain a record of all. money received from the provision as authorized by Minnesota Statutes 349.18 'I' organization, and make the record available to the Board and its agents, Subdivisi~n 1( a). I and the commissioners of revenue and public safety and their agents th f the I r' k th Ii upon demand. The record must be maintained for 3-1/2 years. . To e best 0 esso s nOwledge, e essor affirms that I any and all games or devices located on the premises are not! Rent all-inclusive being. used, and are ~t ,capable ,of ~ing used, j~ a ~nner ! Amounts paid as rent by the organization to the lessor are alHndusive. that Violates the prohibitions against Illegal gambling In i No other services or expenses provided or contracted by the lessor may Minnesota Statutes 609.75. I be paid by the organization, induding but not limtted to trash removal, . Notwithstanding Minnesota Rules 7865.0220, Subpart 3, an ! janitorial and cleaning servicesl snow removal/lawn services, electricity, organization must continue maldng rent payments under I heat, security, security monitoring, storage, other utilities or services, the terms of this lease, if the organization or its agents are i and in the case of bar operations, cash shortages. found to be solely responsible for any illegal gambling, I conducted at this stte, that is prohibited by Minnesota Rules I Any other expenditures made by an organization that is related to a 7861.0260, Subpart 1, item H or Minnesota Statutes 609.7S, I leased premises must be approved by the director of the Gambling unless the organization's agents responsible for the illegal . Control Board, Rent payments may not be made to an individual, gambiing activity are also agents or employees of the lessor. ! . The lessor must not modify or terminate the lease in whole or I Changes in lease. . . . . in part because the organization reported, to a state or local I If.the lea~ IS amended WIth no change In ownership, the organization law enforcement authority or the Board, the conduct of illegal! will submtt the amended lease to the Board at least 10 days before the gambling activity at this site in which the organization did not effective date of the change. If a change In ownership occurs, the partidpate. organization Will submit an amended lease to the Board within 10 days after the new lessor has assumed ownership. Acknowledgment of Lease Terms I affirm that this lease is the total and only agreement between the lessor and the organization, and that all obligations and agreements are contained in or attadled to this lease and are subject to the approval of ltre director of ltre Gambling Control Board. Other terms Date o/>>~ /-/s-a? Date ~GO Questions? Contact the Ucensing Section, Gambling Control Board, at 651-639-4000. This publication will be made available in alternative fannat (Le. large print, Braille) upon request. The information requested on this form will become public information when received by the Board, and used to determine your compliance with Minnesota statutes and rules governing lawful gambling activities.