01-07-1991 CC MIN - Laserfiche WebLink

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City Council Minutes January 7, 1991 Page 6 e 7.11.Pull Tab Ordinance Mayor Tralle stated that he has requested Staff to research the possibility of developing a trade area to regulate the distribution of profits made on pull tab charitable gambling in the City of Elk River. He stated that the purpose of the ordinance is to ensure that the net proceeds from charitable gambling directly benefit the citizens of Elk Ri ver. Mayor Tralle indicated that the proposed ordinance amendment would require 75% of the net pull tab proceeds to be spent in the City's trade area. He stated that the trade area is proposed to include the Cities of Elk River, Otsego, Ramsey, Zimmerman and Rogers. Ci ty Attorney Tim Keane indicated that he and the City Clerk have reviewed the City's current Gambling Ordinance and found that the present ordinance is very dated and will need to be thoroughly reviewed and revised. Mr. Keane stated that the current request by mnnesota Therapeutic Camp has triggered staff to look more carefully at the gambling regulations. The proposed ordinance amendment addresses a statement of purpose, the City's trade area, and the percentage of profits to be spent in the City's trade area. e Mr. Don Sjoquist, representative of the Eagles, questioned whether money donated to the Shriners would be counted as part of the 75% proceeds being spent in Elk River. The City Attorney stated that this would not count because the money is not spent in the City's trade area or to benefit the citizens of Elk River. The City Attorney suggested that the remaining 25% be used for these types of purposes. A representative of the VFW indicated that he was agreeable to the ordinance amendment and that his only concern was to see the proceeds benefit the Elk River citizens. Larry Hennig, representing Minnesota Therapeutic Camp questioned how 75% was decided. The City Attorney indicated that the City has the option to authorize up to 100% and felt comfortable with 75%. Councilmember Kropuenske indicated that he would not want to see less than 75% of the proceeds required to be spent in the trade area. Councilmember Dietz stated that he concurred and felt it was important to use some of the money to benefit the youth of Elk River. Joe Zerwas, representing the Elk River Jaycees, indicated that he would like to see the money stay in the Elk River area. COUNCILMEMBER KROPUENSKE MOVED TO ADOPT ORDINANCE 91-1, AN ORDINANCE AMENDING SECTION 716 OF THE CITY CODE OF ORDINANCES RELATED TO REGULATIONS FOR PULL TAB LICENSES AND REQUIRING A PERCENTAGE OF NET PROFITS TO BE SPENT WITHIN THE TRADE AREA. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. e 7.12.Consideration of Gamblin~ License for Minnesota TheraQ~utic Camp Larry Hennig stated that he could meet the terms of the ordinance pertaining to spending 75% of the profits in Elk River's trade area.