HomeMy WebLinkAboutCity Council Packet 05-21-2002 SpecialAgenda
City of Plymouth
Special City Council Meeting
Tuesday, May 21, 2002
7:00 p.m.
Council Chambers
1. Call to Order
2. Discuss issues with residents of Northwest Plymouth
one hour planned)
3. Discuss Lawful Gambling
4. Schedule future study sessions
5. Quarterly Check-in with City Manager
6. Adjourn.
Agenda Number:
CITY OF PLYMOUTH
CITY COU NCIL AGEND-,RIE PQR'T
TO: Dwight Johnson, City Manager
FROM: Anne Hurlburt, Community Development Director
SUBJECT: Discussion of Issues with Residents of Northwest Plymouth
DATE: May 15, 2002 for the Special City Council Meeting of May 21, 2002
On February 12, 2002, Mr. Leonard Luedke, 17410 Co. Rd. 47, appeared at the Plymouth Forum
portion of the City Council's meeting, requesting that the Council meet with him and several
other property owners to discuss issues concerning Northwest Plymouth. A copy of the list of
other landowners is attached.
The City Council has set aside one hour during its May 21, 2002 Special Meeting for this
discussion. All of the landowners have been sent an invitation to the meeting.
We have received no specific questions or discussion topics for the meeting. We do expect the
discussion to relate to the City's Comprehensive Plan, and possibly the relationship of the Plan to
the upcoming construction of the Elm Creek Interceptor. We will have relevant maps and
materials available.
ATTACHMENTS:
1. List of Property Owners with Map
n:lcdlplanlstaffreplcc120021may21 special, doc
Map Number PID Owner ADDRESS ACRES
1 0511822130003 Craig Scherber 40 ADDRESS UNASSIGNED 35.917
2 0511822140008 Craig Scherber 40 ADDRESS UNASSIGNED 22.725
3 0511822230001 Vernon Peterson 17425 CO RD NO 47 3.288
4 0511822430002 John O'Donnell 5550 DUNKIRK LA N 19.907
5 0511822430003 John O'Donneli 40 ADDRESS UNASSIGNED 18.022
6 0511822440003 Al Goblirsch 5505 VICKSBUR G LA N 23.665
7 0611822110001 Len Luedke 40 ADDRESS UNASSIGNED 18.555
8 0611822110002 Len Luedke 17800 CO RD NO 47 19.700
9 0611822120001 Len Luedke 17910 CO RD NO 47 15.879
110 0611822120004 AI Sand 18100 CO RD NO 47 4.720
11 0611822120005 AI Sand 18100 CO RD NO 47 14.972
12 0611822130004 Jim Randall 18035 CO RD NO 47 5.080
13 0611822140002 William Tombers 5805 LAWNDALE LA N 18.134
14 0611822220003 Russell Smith 18935 CO RD NO 47 27.477
15 0611822410001 Jim Grimes 5705 LAWNDALE LA N 9.768
16 0611822420001 Jim Grimes 5725 LAWNDALE LA N 5.318
17 0611822420002 Joe Bowen 5730 TROY LA N 11.471
1810811822110003]Brady O'Brian 5335 VICKSBURG LA N 5.754
19 0811822120007Drayton, Greamba, Scherber, Schnurr 140 ADDRESS UNASSIGNED 1 31.822
Agenda Number: -3
CITY OF PLYMOUTH
CITY COUNCIL AGENDA REPORT'
TO: Dwight D. Johnson, City Manager
FROM: Craig Gerdes, Police Chief, and Laurie Ahr s, Assistant City Manager
SUBJECT: Request for Charitable Gambling
DATE: May 13, 2002, for City Council study session of May 21, 2002
1. ACTION REQUESTED: Review the information provided on charitable gambling and
determine whether to expand gambling in Plymouth.
2. BACKGROUND: At a Council study session on January 15, 2002, the Plymouth Lions and
the Plymouth Crime and Fire Prevention Fund made a request to allow a pull -tab operation at
Mulligan's. With the exception of bingo, gambling is currently prohibited in the City.
Attached are copies of the meeting minutes, along with additional information collected
through a survey of other communities. Two fundamental questions remain: 1) Is gambling
right for this community? 2) Is there a conflict of interest, specifically with respect to the
Crime and Fire Fund?
There may be a perception of conflict in the City allowing gambling at the request of the
Plymouth Crime and Fire Prevention Fund after a long prohibition because the City receives
contributions from the group beyond the 10 percent that could be required of all
organizations. In fact, the stated purpose of the organization is to raise funds for the
Plymouth fire and police services. There may be a more specific conflict of interest with
respect to the police department with this group. The department conducts the investigation
of the applicant and handles enforcement action, while receiving contributions from the
group. (If gambling is expanded, staff would recommend at a minimum that the Sheriff
handle all investigation and enforcement actions for this group.)
This is not unique. The fire relief associations in many cities operate pull -tab operations as a
method of fund-raising. And, certainly other non-profit groups could request gambling to
raise funds to purchase open space or to make environmental improvements. However, the
most common requests, as shown in the survey, are from veteran/fraternal organizations and
athletic associations.
3. ALTERNATIVES: The Council can direct staff to prepare an ordinance to consider at a
future regular meeting, or take no action and decline to study the issue further.
4. DISCUSSION: At the January study session, the Council discussed the social costs related
to gambling. There were also several questions related to regulation of gambling. The
attached survey was conducted to answer questions about the restrictions placed on
establishments and licensed locations, the restrictions placed on proceeds, and whether an
investigation fee or local gambling tax is imposed.
What types of gambling are allowed in other cities?
Most cities in our survey allow gambling to a greater degree than Plymouth. However,
Minnetonka and Edina have strict restrictions on gambling which results in no annual
gambling licenses issued in those communities. State law provides for pull tabs, bingo,
paddlewheels, raffles, and tipboards. In practice, pull tab operations are the most common.
Some cities prohibit bingo halls.
How is gambling regulated?
Gambling licenses are issued by the State. The City has the opportunity to, in effect, approve
or disapprove a State license. Therefore, a local police investigation is needed. The City is
governed by general legal principles that govern other types of licenses. While the Council
has a fair amount of discretion in considering a license request, the Council may not
arbitrarily or capriciously disapprove a license.
The State is also intended to be the primary investigation entity for enforcement of lawful
gambling violations. However, with over 2,000 organizations operating in 3,900 locations in
the State, it is necessary for cities to also enforce gambling.
How could the City limit the number or types of organizations, establishments, or
locations?
It is common to restrict gambling to liquor establishments, the licensed organization's
premises, and places of worship. However, Minnetonka prohibits gambling in liquor
establishments. Edina allows gambling only in churches and schools, and only for special
events lasting no more than three days.
The City Attorney suggests that our ordinance should not distinguish between types of liquor
establishments. For example, the ordinance could not prohibit gambling in family-oriented
restaurants or establishments that have a 3.2 malt liquor license versus a liquor license. The
number of organizations or establishments should also have some rational basis. Some cities
allow only one organization per location, while others allow each organization to have two or
four locations. Eden Prairie limits the total number of licensed premises to four, plus one for
every 10,000 population in excess of 40,000.
Can the City require that the funds remain in tire community?
State law provides that cities may establish "trade areas" in which all or part of the gambling
proceeds must be spent. The trade area must include at least all abutting communities.
While this does not ensure that all funds will be spent within the community, it does result in
expenditures that benefit the general community area. Blaine requires 100% of net proceeds
to be spent within the trade area, St. Louis Park 90%, Maple Grove and Medina 50%, and
Bloomington 30%. Some cities have no trade area restriction.
How should one-time gambling events be handled?
One-time gambling events that are exempt from licensing are typically used for community
and school events. These events are exempt from licensing by the State and should not be
unduly regulated by the City. We currently send these requests to the City Council for
approval; however, no investigation is done. There would likely be no basis for denial of a
request. We recommend that the ordinance be amended to provide for a police review of all
applications (to ascertain the legitimacy of the organization and ensure we have no
complaints against the organization). After a positive police review, the application would be
forwarded directly to the State. If any problems are found, the application would be
forwarded to the City Council for action. This process would save time for the applicant and
provide for a better review by the City.
If the Council wishes to proceed with gambling, the next step is to direct staff to draft an
ordinance to allow charitable gambling.
5. BUDGET IMPACT: If gambling is expanded in Plymouth, the investigation and
enforcement costs could likely be recouped through the 3 percent gambling tax, which is
allowed by state law.
6. RECOMMENDATION: Review the information provided and determine whether
gambling should be expanded in Plymouth.
Attachments: Gambling Survey
Minutes of January 15, 2002 study session
Staff report on gambling for January 15 study session
Request of Plymouth Lions Club and Plymouth Crime & Fire Prevention Fund
Gambling Survey
11J. 1
z Or sed .. . oc...............
ril: t
A
gg
Apple Valley 2 4 None. Invest. fee $250
American Legion Allowed only in liquor
Hockey Assn. establishments.
Blaine 6 6 100% of net proceeds
i
10% of net profits to
4 Hockey Assn. Allowed only in liquor must be spent in trade City -administered fund.
1 Lions establishment, church, area.
I VFW fraternal veterans or
nonprofit organization.
Bloomington 14 12 + gambling allowed 4"' 30% of net proceeds 25% Local Gambling
floor Mall of America. must be spent in trade Tax on gross receipts.
0 Allowed only at liquor area.
establishments or
licensed organization
premises, places of
worship.
0 Each organization can
hold 3 locations.
9 No more than 3
organizations permitted
in any location.
Brooklyn Park 12 12 0 75% of net proceeds
Each organization can from pulltabs must be
hold 3 locations. spent in City of BP.
Must be a church, bingo e Trade area includes
hall, nonprofit org. surrounding
premises, or liquor communities and
establishment. I Minneapolis.
C ly g uz.t &Y W Lic'ensed,Locations Restrictions on Proceeds '' Other
Burnsville 3 4 250 investigation. fee.
Allowed only to Allowed only in liquor
organizations with establishments.
principal offices in the s Only 1 license allowed
City. per location.
Coon Rapids 7 11 60% of net proceeds For last 6 months of
Lions Only organizations with must be spent in trade 2001, over $250,000
Youth sports 1/3 of its members from area, with 10% within was spent in the trade
Scholarship Assn. Coon Rapids allowed. Coon Rapids. area.
American Legion Allowed only at liquor
VFW establishments, except
Little League given
CUP to operate a
storefront operation.
Eden Prairie 1 Hockey Assn. 1
Each organization
allowed in 4 premises.
Premises limited to 4
1 for ea. 10,000
population in excess of
40,000.
Premises must be owned
by organization.
Edina Allowed only in churches 2 permits issued to 1
and schools. organization in a year;
each event maximum 3
days.
CZty ;. L censed oxs:P;;g. '" Licensed Locations Restrictions on Proceeds Other
Maple Grove 4 4 50% of netroceedsp Limited to one
Comm. Charities of MN Allowed in church, veterans must be spent in trade organization per
Lions fraternal or nonprofit area. premises.
Fire Dept. Relief Assn. organization, or liquor 10% of net profits to
Hockey Assn. establishment. City-administered
fund-
s .5% Local gambling
tax on gross receipts.
Medina 3 3 50% of net proceeds
1 Lions must be spent in trade
2 Fire Dept. Relief Assns. area.
Minnetonka 0 Gambling prohibited in
liquor establishments.
New Hoe 1 Fire Dept. Relief Assn. 1
Richfield 2 2
American Legion Organization may hold
VFW only 2 locations.
Allowed only in liquor
establishments or
licensed organization's
premises.
Bingo halls not
ermitted.
St. Louis Park 5 5 90% of net profits must Problems enforcing
VFW Allowed only in liquor be spent in trade area. trade area; dealt with
Humane Society establishments. license denials.
Basketball 75% gambling tax,
Hockey recently dropped
Raspberry Festival I from 2%
mawounermrinumL cnantame gunoimg raves
Adopted Minutes
Special Council Meeting
January 15, 2002
A Special Meeting of the Plymouth City Council was called to order by Mayor Tierney at 7:05
p.m. in the Public Safety Training Room, 3400 Plymouth Boulevard, on January 15, 2002.
COUNCIL PRESENT: Mayor Tierney, Councilmembers Johnson, Slavik, Stein, Black, Harstad,
and Hewitt.
F.111 M. -M 11,21_Marem
STAFF PRESENT: City Manager Johnson, Assistant City Manager Ahrens, Police Chief
Gerdes, Fire Chief Kline, Park and Recreation Director Blank, Housing Manager Barnes,
Community Development Director Hurlburt, Finance Director Hahn, Public Works Director
Faulkner, Solid Waste Coordinators Hageman and Vigoren, and City Clerk Paulson.
Motion was made by Mayor Tierney, and seconded by Councilmember Hewitt, to reverse the
order of the agenda for items 1 and 2 on the agenda. With all members voting in favor, the
motion carried.
Plymouth Crime and Fire Prevention Fund and Plymouth Lions Request for Pull -Tabs
Assistant City Manager Ahrens reported on the request of the Plymouth Lions Club and the
Plymouth Crime and Fire Prevention Fund requesting approval to sell pull tabs at Mulligan's.
She stated with the exception of bingo, gambling is currently prohibited in the City. However,
the State lottery is exempt as well as a one-time lawful gambling event (i.e. raffles). Therefore,
if the Council would desire to allow other types of lawful gambling in the City, adoption of an
ordinance amendment would be necessary.
Ed Stanke, Plymouth Lions Club, requested the Council to consider adopting an ordinance
amendment that would allow for pull -tab gambling within the City. He stated when he was
formerly with the Lions Club in Wayzata, the proceeds derived from their gambling location in
that community were given to the Wayzata Fire Department, the school, and a few national
organizations that their club supported.
Police Chief Gerdes noted that the City would have the option of receiving either a 3% tax from
the licensed organization on their gambling proceeds or charge a $250 investigation fee. He
stated the $250 fee would not cover his department's costs; therefore, he recommended the 3%
tax.
Adopted City Council Minutes
Special Meeting of January 15, 2002
Page 2 of 6
Mayor Tierney stated the Council needs to determine if they want to have other forms of
gambling in the City.
Assistant City Manager Ahrens stated this issue was last discussed in 1991, and it failed on a 2-3
vote.
Mayor Tierney stated if the Council is philosophically opposed, there is no need to discuss it
further.
Councilmember Harstad stated he is not philosophically in support of the additional gambling.
He acknowledged the benefit that is derived from the additional funds derived from gambling
that could be used. within the community, but that wouldn't alter his view. He is very concerned
about how the gambling would be regulated.
Councilmember Black stated she is unsure if she would support this request. She, too, could
strongly support the causes that the funds could be used for. However, she doesn't totally
support the act of gambling.
Councilmember Hewitt stated due to her past experience in social service agencies, there was a
lot of negative impacts to individuals who were compulsive gamblers. She is also concerned on
how this ac i -=it / would be monitored.
Mayor Tierney stated she would support further information on the issue. Some of this
information could include how other cities got started, how they regulated it, what types of
gambling are allowed in their communities, and if they restrict the types of establishments where
the gambling could occur.
Councilmember Slavik asked if staff is aware of any community that doesn't allow pull -tab
gambling, other than the City. Assistant City Manager Ahrens replied of the cities the City
contacted, there is no one who prohibits gambling in their community.
Billie Kaye Goodman, from the Crime and Fire Prevention Fund, stated they have seen a drastic
decrease in contributions to their fund. They sent donation letters to 800 businesses, and they
have only received $1,000 in donations. She agreed that the gambling would need to be
monitored, but Plymouth residents, who enjoy gambling, will spend their money elsewhere. She
mentioned the new freestanding pull -tab only facility in Crystal.
Councilmember Stein stated he would like further information on this item. He would be
interested in reviewing what types of controls -the City could have.
Adopted City Council Minutes
Special Meeting of January 15, 2002
Page 3 of b
Councilmember Johnson asked if the City could self limit the number of licenses that would be
issued. Assistant City Manager Ahrens stated she is unsure, but she would report back.
Motion was made by Councilmember Black, and seconded by Councilmember Hewittto
determine whether the Council should ursue this further, by obtaining additional information
and bringing it back to another Council -Study Session.
Councilmember Slavik stated she is not a supporter of gambling for philosophical reasons.
However, it would be difficult to reject the request from two organizations that have made many
contributions to the community. At this point, she is not really inclined to proceed further;
however, she would support receiving additional information. In comparison, she would rather
continue supporting the one-time lawful gambling exemptions that are used for community and
school events, as they are perceived to be more family type events. She also noted that the
exemptions are a different type of gambling environment than that of pull -tabs.
Councilmember Johnson stated she views gambling as entertainment. She agreed that
individuals are not always responsible when they participate in gambling, but gambling isn't the
only thing that is abused. She stated there could be a great benefit to keeping the entertainment
dollars in the City. She would be willing to review information from other cities on their
ordinances.
Councilmember Black stated this item is really an emotional and a rational issue. The Council
needs to go beyond the emotional issue in making their decision.
Councilmember Johnson agreed with Councilmember Black and questioned if this is any
different than the liquor licenses that the Council issues. The licensees and consumers need to be
responsible.
Councilmember Stein agreed and stated that citizens need to have individual responsibility. He
stated he gambles occasionally, and he views it as entertainment. He stated if people are going
to gamble, they're going to gamble, but it would be to the City's benefit for the residents to
spend their money in the City.
Motion was made by Councilmember Stein, and seconded by Councilmember Harstad to call
the question. With all members voting in favor but Johnson and Slavik, the motion carried.
The Council voted on the main motion, and with Stein, Johnson, Slavik, and Tierney voting yes,
and Black, Hewitt, and Harstad voting no, the motion carried.
City Manager Johnson requested the Council to give any concerns or requested information to
staff to include in their report.
Adopted City Council Minutes
Special Meeting of January 15, 2002
Page 4 of 6
Councilmember Johnson requested 'information on whom the City could limit the licenses to, and
if the City could require that the funds remain in the community.
Mayor Tierney requested information if the City could limit the types of organizations that could
be licensed in the City.
Housing M ager Barnes reported at the October 23, 2001 Council meeting, the Council
suggested tha Study Session be conducted to discuss concerns about affordable housing as
well as plan for ousing foram. He stated the purpose of conducting this forum would be to
educate the stakeh ders on the issue of affordable housing in the City that would include:
1. What is affordable using.
2. Past affordable housi projects in the City.
3. Various ways the City\
afforable
ate in affordable housing projects.
4. Potential sources of furestrictions.
5. Barriers to developingousing.
He stated the audience woof the Council, City's Housing and Redevelopment
Authority, Planning Combers, City staff, developers,non-profit housing providers,
housing advocates, and ci
Councilmember Harstad voiced his concek of occupying additional staff time to focus on
affordable housing. He stated the Council sn't provided suggestions to staff on an educational
process for this type of forum.
Mayor Tierney requested that staff provide
City to assist in affordable housing.
Councilmember Hewvitt suggested staff include in
to assist in providing .affordable housing, and this
assist developers and landowners.
on what resources are available at the
on on efforts that landowners could do
include the "tools" that are available to
Councilmember. Slavik suggested that landowners be invited tRthis forum. She stated she is not
interested at this time in establishing a fund within the City's buAget for affordable housing due
to the uncertainly of the State's budget and how it would affect th City. She indicated that one
needs to review the current housing stock in the City to determineh that housing could remain
affordable.
Agenda Numbers
TO: Dwight D. Johnson, City Manager
FROM: Laurie Ahrens, Assistant City Manager
SUBJECT: Request for Pulltabs
DATE: November 20, 2001
1. ACTION REQUESTED: Review the information provided on lawful gambling and direct
staff on whether to draft an ordinance to expand the types of gambling allowed in the City.
2. BACKGROUND:
Request Received. The City of Plymouth has received a letter from the Plymouth Lions
Club and the Plymouth Crime and Fire Prevention Fund requesting approval to sell pull
tabs at Mulligan's Bar and Grill. With the exception of bingo, gambling is currently
prohibited in the City of Plymouth. An ordinance amendment would be needed to consider
this request. A copy of their letter is attached.
Plymouth Ordinances on Lawful Gambling. Prior to 1991, gambling was prohibited in
Plymouth. That year, the City Council considered a request from St. Therese Horne to
allow bingo and pull -tabs in order to develop a bingo hall at the Plymouth Shopping Center
site on Highway 55. The City Council considered this request and adopted a gambling
ordinance to allow bingo. Pulltabs and other forms of gambling (e.g. paddlewheels,
raffles, tipboards) were not allowed under the new ordinance. The ordinance also
prohibited gambling in liquor establishments. St. Therese did not pursue the operation, at
least partly because they required pulltabs along with the bingo operation. Several requests
to allow pulltabs have been received since that time, but the Council has not indicated an
interest in expanding gambling in Plymouth.
Today, the Plymouth City Code still prohibits lawful gambling in the City, with the
exception of bingo. The other exceptions are the state lottery (which the City caamt
restrict) and gambling exempt from state licensing (e.g. one-time raffle held by a school.)
State Law on Lawful Gambling. With the exception of the state lottery, paramutual
horse racing, bingo, tipboards, paddlewheels, pull -tabs, and raffles, Minnesota laws
prohibit all forms of gambling and gambling devices. Only qualified organizations may
conduct lawful gambling. To qualify, an organization must be a religious, fraternal,
veterans', or other nonprofit or tax-exempt entity that has been in existence for at least
Page 2
three years, has at least 15 active members, and is not in existence solely for the purpose
of conducting gambling.
The Minnesota Gambling Control Board is the state agency that licenses and regulates
gambling. A. City is allowed to prohibit gambling. if gambling is allowed, there are
several classes of licenses:
1) all forms of lawful gambling;
2) all forms of gambling except bingo;
3) bingo only, or bingo and pull tabs if combined gross receipts do not exceed
50,000; and
4) raffles only.
An organization must apply to the State for an organization license, a premises permit, and
a gambling manager's license. The Gambling Enforcement Division conducts the license
investigations. Applicants are screened through a background investigation that includes
the applicant's, personal, business, and financial relationships. The State notifies the City
of each gambling application, and the State may not issue or renew a license unless the
organization submits a. resolution of approval from the City Council. The City has the
opportunity to, in effect, approve or disapprove the State license. Therefore, a significant
local police investigation is also needed. The City is governed by general legal principles
that govern other types of licensing. While the Council has a fair amount of discretion in
considering a license request, the Council may not arbitrarily or capriciously disapprove a
license. The fairy is prohibited from requiring a local license for gambling.
The State is also intended to be the primary investigation entity for enforcement of lawful
gambling violations. However, with over 2,000 organizations operating in 3,900 locations
in the State, it is necessary for cities to also enforce lawful gambling.
Thz, statutes require that no more than 70 percent of gross profits from bingo, and 55
percent of gross profits from all other forms of gambling, may be used for expenses related
to lawful gambling. The remainder of the profits must be used for lawful expenditures.
Local ordinance, regulations commonly require quarterly revenue reports, copies of reports
the gambling manage, is required to send to the State, and copies of checks sent to the
charities. Any regulations must apply equally to all forms of gambling.
Local gwubling ordhiances typically include one or more of the following requirements:
1) Specified funding. The City could require an organization to make expenditures of
up to 10 percent of its net profits to a specific lawful purpose. However, the
constitutionality of this has been questioned because an organization may be
required to make a contribution to a cause that it philosophically does not support.
2) Ci , administered funds. The City may require an organization to make
expenditures of up to 10 percent of its net profits to a fund administered and
reg Elated by the City. These funds may be distributed for 1) lawful purposes or
Page 3
2) for police, fire, and other emergency or public safety-related services,
equipment, and training, excluding pension obligations.
3) Trade area. The City may require that an organization expend all or a portion of its
net profits for lawful purposes conducted or located within the city's trade area.
The City Council defines the "trade area", but it must at least include all abutting
communities.
4) Local gambling tax. The City may impose a local gambling tax not to exceed 3
percent of the gross receipts less actual prizes paid out on each licensed
organization. The City could not use local gambling tax money for any purpose
except regulation of lawful gambling. A tax is in lieu of all other local
investigation fees on law gambling. If no tax is imposed, the City may charge $250
per investigation; however, this would not cover the City's cost. As a note, the
State automatically receives a 10 percent tax on gambling proceeds.
Other cities. Most cities allow lawful gambling in some form. We contacted the
following cities and all allow lawful gambling: Apple Valley, Blaine, Brooklyn Park,
Burnsville, Coon Rapids, Eagan, Edina, Maple Grove, Maplewood, Minnetonka, New
Hope, and Richfield. If the Council decides to consider allowing gambling in Plymouth,
we would review these cities' ordinances to determine how they commonly handle fees,
reporting requirements, trade areas, and local taxes.
3. ALTERNATIVES: The City can prohibit lawful gambling altogether or allow only
certain types of gambling. If the Council wishes to consider expanding gambling in the
City, staff can be directed to prepare an ordinance for consideration at a future meeting.
The Council could also decline to consider the issue further. And, the Council may wish
to request additional information not covered in this report.
4. DISCUSSION: The City has received a request for lawful gambling (pulltabs) from two
local organizations that are well known and do much good work in the community. It is
important that the Council consider the issue of whether to allow pulltabs in the City
without sole regard to these organizations. It is highly unlikely that gambling would be
limited in the City to these two organizations. Once pulltabs are allowed, we will receive
requests from many organizations to conduct gambling. Requests could come from local
youth sports associations, other local service organizations, veterans' organizations, fire
relief associations, and national organizations such as the M.S. Society or Dollars for
Scholars.
For purposes of framing the discussion, the Council could consider the following issues:
1. Is gambling desirable in the City? This is largely a philosophical question. One
opinion is that since gambling can encourage social problems and the City has the legal
authority to prohibit it, it should do so. Another view is that gambling has positive
entertainment value and should be expanded to offer a service currently not available in
the City. Consistency with surrounding communities could also be considered. Maple
Page 4
Grove, New Hope, Minnetonka, and Medina allow pull -tabs. Plymouth currently does
not. Most pull tab operations are located within liquor establishments. There may be
some benefit in drawing customers to businesses that have pull -tabs available versus
those that do not. Or, the reverse could be true. Certain individuals may specifically
choose to frequent an establishment that does not offer gambling.
Gambling also serves as a significant source of revenue for many nonprofit
organizations that otherwise would have funding issues or be unable to provide the
same level of services. Through the establishment of a "local trade area", the City
would make more funding available through gambling contributions to local nonprofit
organizations that serve Plymouth residents. without this provision, all gambling
proceeds could be spent at a national level or for services not available to Plymouth
residents.
if gambling is expanded in the City, there would be new costs to the City related to
licensing, investigation, financial monitoring, and enforcement. However, the 3
percent local gambling tax could likely cover these costs of regulation.
2. Is gambling a good way to fund the City? The City has taken the perspective that
contributions from the Crone and Fire Prevention Fund are to provide special or
unique items beyond the City's normal budget. For example, the Fund initiated the
canine program, which is now wholly funded by the City. The Fund contributed a boat
to the Fire Department which is now maintained by the City. if funding is greatly
expanded through either contributions from the Crime and Fire Prevention Fund or
through a 10 percent city -administered fund on all gambling, should those funds
supplant some local tax dollars for police or fire items? From a financial perspective
this may make sense. Gambling proceeds would be a new source of revenue, and there
are nely programs, ongoing services, maintenance, and replacement costs to fund.
However, gambling proceeds should be considered variable income. It would be risky
to coimt. on consistent gambling proceeds to fund ongoing services in lieu of local tax
dollars. There are many alternatives for the 10 percent city -administered fund. The
binds can be designated by the City Council for a specific City service or department,
or directed toward open space acquisition, park system expenditures, or a community
fourdation. The Council could also fund local social service agencies, which the City
currently funds through the General Fund.
3. Is there a conflict of interest, speciftcally with respect to the Crime and Fire Fund?
There may be a perception of conflict in the City allowing gambling at the request of
the Plymouth Crime and Fire Prevention Fund after a long prohibition because the City
receives contributions from the group beyond the 10 percent that could be required of
all organizations. in fact, the stated purpose of the organization is to raise funds for
the Plymouth police and fire services. There may be a more specific conflict of
interest with respect to the police department with this group. The department
conducts the investigation of the applicant and handles enforcement action, while
receiving contributions from the group. (If gambling is expanded, staff would
Page 5
recommend at a minimum that the Sheriff handle all investigation and enforcement
actions for the Plymouth Crime and Fire Prevention Fund.)
4. If gambling is expanded, can it be controlled or restricted? State law provides a
variety of ways that cities can restrict gambling. A City can prohibit gambling or
allow only certain types of gambling. Zoning regulations can reasonably be used to
determine the appropriate locations for lawful gambling; however, we have found no
evidence that the Council can distinguish, for example, between a Mulligan's and a
TGI Friday's (which some may perceive as a more family-oriented establishment). On
the other hand, chain restaurants typically are not as likely to conduct lawful gambling.
The Council could limit each location to one organization, or multiple organizations
can be allowed at each location and gambling restricted to only one license holder at a
time. The conduct of gambling -can be restricted to certain hours or to certain days of
the week. A City can limit the prizes to be awarded more restrictively than state law,
or prohibit employment of people other than members of the licensed organization.
Decision Steps. If the City Council decides to expand gambling, the following decision
steps could be discussed:
1) What types of gambling should be allowed?
a) all forms of lawful gambling;
b) all forms of gambling except bingo;
c) bingo only, or bingo and pull tabs if combined gross receipts do not exceed
50,000; and
d) raffles only.
2. Should the City charge a 3 % tax to cover the costs of regulating gambling? The
other alternative is a $250 investigation fee. No license fee may be charged.
3. Should the City establish a 10% city -administered fund? If so, is there a
general idea of how the funds should be expended, i.e. police, fire, parks
system, open space acquisition, other city department, social service agencies.
4. How should the "local trade area" be defined? (It must at least include
Plymouth and all abutting communities.)
5. Are there any other restrictions or controls that should be considered? (i.e.
zoning, prohibit in certain types of liquor establishments, allow one nonprofit
licensee per establishment or only one at a time, hours/days of sale.)
5. BUDGET EAPACT: If the Council decides to allow lawful gambling, the City's
administrative licensing, police investigation and enforcement costs will increase. There is
also a fair amount of financial record-keeping involved for the City. There could be a
positive or negative budget impact of allowing lawful gambling in the City, depending on
the requirements, funds, and taxes adopted by the Council. The implementation of a 10
Page 6
percent City fund and restrictive "trade area" requirement could result in new revenue for
the City and additional funding of local nonprofit organizations.
6e RECOMN ENDATION: Review the information provided in this memo and direct staff
on how to proceed.
11-10-01
Dear Mr. Johnson,
Re: Pull Tab Resolution
On behalf of the Plymouth's Lions Club and Crime and Fire Prevention Fund,
We are asking to come before you so we can explain why it is important for us
To get a Pull Tabs Resolution in the City of Plymouth.
The monies raised by the Crime & Fire Prevention Fund would go back to the city
for continued Public Safety programs, equipment, education, etc. Monies raised
by the Lions Club would be given to charitable organizations.
The Lions Club and the Crime & Fire Prevention Fund would be splitting the
proceeds of the Pull Tabs, with the Lions Club doing the work.
Mulligans Bar and Grille has agreed to be the site for the Pull Tabs operation.
We are asking you to amend the Gambling/Pull Tab Ordinance, and adopt our
Resolution for Pull Tabs in Plymouth.
We look forwarding to meeting with you and answering any questions you might
have.
Thank you very much for your time.
Sincerely, s
Agenda Number:
71
TO: Dwight D. Johnson, City Manager
FROM: Laurie Ahrens, Assistant City ManagerSUBJECT: Set Future Study Sessions
DATE: May 17, 2002, for Council study session of May 21, 2002
ACTION REQUESTED: Review the pending study session topics list (shown below) and
establish future special meetings if desired. Calendars are attached to assist in scheduling.
Pending Study Session Topics
at least 3 Council members have approved the following study items on the list)
I-494 Corridor Commission and Highway 55 Corridor Group (Slavik, Black,
Hewitt)
UFFICIAL CITY MEETINGS
May 2002
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
Apr 2002 Jun 2002
S M T W T F S S M T W T F S
1 2 3 4 5 6 1
1
7:00 PM
PLANNING
COMMISSION,
2
7:00 PM HUMAN
RIGHTS
COMMISSION -
3 4
7 8 9 10 11 12 13 2 3 4 5 6 7 8 Council Chambers Council Chambers
14 15 16 17 18 19 20 9 10 11 12 13 14 15
21 22 23 24 25 26 27 16 17 18 19 20 21 22
28 29 30 123 24 25 26 27 28 29
30
5 6 7. 8 9 10 11
7:oo PM YOUTH 7:00 PM PRAC, 10:30 AM - 4:006:00 PM
ADVISORY ENVIRONMENTAL Council Chambers PM
COUNCIL,Council
Chambers
QUALITY
COMMITTEE
MEETING, Bass
Lake Room
Special start time
PLYMOUTH
HISTORY
FEST, Parkers
Lake Park
this month only)
12 13 14 15 16 17 18
5:30 PM YOUTH
ADVISORY
COUNCIL TOWN
FORUM, Plymouth
Creek Center
5:30 PM SPECIAL
COUNCILMEETING:
TAXICAB SERVICE To
SUPPLEMENT THE
PLYMOUTH
DIAL -A RIDEPROGRAM, Public
SafetyTrainirM Room
7:D0 PM REGULAR
ICOUNCILMEETiNG,
Cmurcil Chambers
7:00 PM
PLANNING
COMMISSION,
Council Chambers
7:DD PM HRA -
Medicine take Room
7:00 PM PUBLIC
SAFETYADVISORY
BOARD, Police IkyL
Library
19 20 21 22 23 24 25
7:00 PM YOUTH
ADVISORY
COUNCIL,Council
ChambersGAMBLING;
7:00 PM PACT -
Bass Lake Room
E 7:00 PMSPECIAL
COUNCIL MEETING:
LAWFUL
VARIOUS TOPICS
WITH NW
PLYMOUTH
RESIDENTS, Council
Chambers
26 127 T28 29 30 31
MEMORIAL DAY
Observed) - City
Offices Closed
7:30 AM LOCAL
BUSINESS
COUNCIL, Radisson
Hotel
7:00 PM REGULAR
COUNCIL MEETING,
Council Chambers
modified on 5110/2002
OFFICIAL CITY MEETINGS
June 2002
Sunday Monday Tuesday Wednesday I Thursday Friday Saturday
May 2002 Jul 2002 1
S M T W T F S S M T W T F S 9:00 AM - 3:30
1 2 3 4 .1 2 3 4 5 6
5 6 7 8 9 10 11 7 8 9 10 11 12 13
12 13 14 15 16 17 18 14 15 16 17 18 19 20
19 20 21 22 23 24 25 21 22 23 24 25 26 27
26 27 28 29 30 31 28 29 30 31
PM, PLYMOUTH
CLEAN-UP DAY,
Public Works
Maintenance
Facility
2 3 4 5 6 7 8
7:00 PM YOUTH 7;00 PM 7:00 PM HUMAN
ADVISORY PLANNING RIGHTS
COUNCIL,Council COMMISSION, COMMISSION -
Chambers Council Chambers Council Chambers
9 10 11 12 13 14 1.5
5:30 PM SPECIAL
COUNCILMEETING:
6NOWPLOWINC CREATING A
DOWNTOWN COUNCIL,
Public Sardy Training
Roam
7:O0PMREGULARCOUNCILMEETING,
Ccundl Chambers
4:00 PM SKATE PARK
CELEBRATION, 14900
23rd Avenue
00 PM
ENVIRONMENTAL
QUALITY COMMITTEE
Council
Chambers (this meafing
Only}
7:00 PM PRAC,
Council Chambers
Fla Da9 y
16 17 18 19 20 21 22
7:00 PM YOUTH
ADVISORY
7:00 PM
PLANNING
7:00 PM HRA -
McCicine Lake Room
COUNCIL,Council
Chambers
COMMISSION,
Council Chambers
7:00 PM PUBLIC
SAFETY ADVISORY
BOARD, Police D@pL
Library
LEAGUE OF MINNESOTA CITIES ANNUAL CONFERENCE, Rochester Civic Center
23 24 25 26 27 28 29
r9oaMLoraLauslN as
COUNCII RaEham Ilahl
MEEE I M aPEGY1LrRAFFICCALWNG
ROGRP&M-a--
TraY,B9 Rma
7;00 PM PACT-
Bass Lake Room
9;45 AM MUSIC IN
PLYMOUTH 6k
RUN
7:m PM REGuUkR COUNCIL
MEETING, fbrdlCMl s
30
modified On 5/10/2002
OFFICIAL CITY MEETINGS
July 2002
Sunday Monday 1 Tuesday Wednesday Thursday Friday Saturday
1 2 3 4 5 6
7:00 PM YOUTH
ADVISORY
5:15 PM MUSIC
IN PLYMOUTH,
7:00 PM
PLANNING
INDEPENDENCE
DAY - City
COUNCIL,Council City Center COMMISSION, Offices Closed
Chambers I Amphitheater Council Chambers
7 8 9 10 11 12 13
7:00 PM
REGULAR
7:00 PM EQC,
Bass Lake Room
7:00 PM FRAC,
Council Chambers
COUNCIL
MEETING, Council
Chambers
14 15 16 17 18 19 20
7:00 PM YOUTH
ADVISORY
7:00 PM
PLANNING
7-00 PM HRA -
Medicine Lake Room
COUNCIL,Coundl COMMISSION,
Chambers Council Chambers
7;e6 PM PUBLIC
SAFETYAOVISORY
BOARD, Police Dept.
Library
21 22 23 24 25 26 27
7;30 AM LOCAL
BUSINESS
700 PM PACT -
Bass Lake Room
COUNCIL, Radisson
Hotel
7;00 PM REGULAR
COUNCIL MEETING,
Council Chambers
28 29 30 31 Jun 2002 Aug 2002
7:00 PM YOUTH S M T W T F S S M T W T F S
ADVISORY
1 1 2 3COUNCIL,Council
Chambers 2 3 4 5 6 7 8 4 5 6 7 8 9 10
9 10 11 12 13 14 15 11 12 13 14 15 16 17
16 17 18 19 20 21 22 18 19 20 21 22 23 24
23 24 25 26 2T 28 29 25 26 27 28 29 30 31
30
modified on 511012002
r'..
OFFICIAL CITY MEETINGS
August 2002
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1 2 3
Ju12002 Sep 2002
S M T W T F S S M T W T F S 7.00 PM HUMAN
RIGHTS
1 2 3 4 5 6 1 2 3 4 5 6 7 COMMISSION -
7 8 9 10 11 12 13 8 9 10 11 12 13 14 Medicine Lake
14 15 16 17 18 19 20 15 16 17 18 19 20 21
Room
21 22 23 24 25 26 27 22 23 24 25 26 27 28
28 29 30 31 29 30
4 5 6 7 8 9 10
7;00 PM 7:00 PM PRAC,
PLANNING Council Chambers
COMMISSION,
Council Chambers
11 12 13 14 15 16 17
7:00 PM YOUTH 7:00 PM 7:00 PM EQC, 7:00 PM HRA -
ADVISORY REGULAR Council Chambers Medicine Lake
COUNCIL,Councll COUNCIL Room
Chambers MEETING, Council
Chambers 00 PM PUBLIC
SAFETY
ADVISORY
Dept.
BOARD, Police
Library
18 19 20 21 22 23 24
7:00 PM
PLANNING
COMMISSION,
Council Chambers
25 26 27 28 29 30. 31
7:00 PM YOUTH
ADVISORY
COUNCIL,Council
7:30 AM LOCAL
BUSINESS
COUNCIL, Radisson
700 PM PACT -
Bass Lake Room
Chambers
Hotel
7:00 PM REGULAR
COUNCIL MEETING,
Council Chambers
modified on 21712002