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l REQUEST FOR COUNCIL ACTION Date.- 6/30/08 Item No..- 7.g Department Approval City Manager Approval Item Description.- Consider the Issuance of a Permit to Conduct Lawful Gambling Activities at 1754 N. Lexington Ave. (01 Mexico) 2 Background 3 The North Suburban Youth Foundation has submitted an application to conduct lawful gambling activities 4 at 01 Mexico restaurant located at 1754 N. Lexington Avenue in Roseville. 6 Previously, the City Council had approved a Premises Permit for North Suburban Youth Foundation to "7 conduct lawful gambling at the former Big City Tavern (now Grumpy's). However,, they are no longer 8 conducting activities there or anywhere else in the City. 9 10 "I'll Permit Requirements 12 Permitting requirements are set forth in City Code Section 304, and State Statute,, Chapter 34 . Lawful 13 gambling is permitted in the City if the organization meets the following criteria.- 14 15 a), Is licensed by the State Gambling Control Board 16 b), Is a tax exempt organization pursuant to 501(c), of the internal revenue code I 7 c), Maintains a business address within the city I d), Complies with all other requirements as set forth in City Code and State Statute 19 2o The applicant currently meets all local requirements, although licensing by the State is contingent upon 2 1 local approval. 22 23 Permitting C a bons 24 As required by City Code, organizations conducting lawful gambling activities must contribute 10% of its 25 net profits (defined as gross receipts less prizes paid less expenses), derived fTom said activities into a City- 26 prescribed Fund for the purposes of providing funding for various Roseville-based groups and events. In 27 addition an organization must pay an amount equal to 3% of the net receipts (defined as gross receipts less 2, prizes paid), from lawful gambling activities conducted in the City for the purposes of covering the City's 29 regulatory, administrative, and law enforcement costs. 30 Page I of 4