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City Council Memo/Charitable Gambling <br />June 5, 1995 <br />Page 2 <br />• If the Council adopts an ordinance allowing only local charitable gambling <br />organizations to operate in the City, it may want to consider grandfathering <br />in existing outside organizations. Celebrity Bowl Charities currently holds a <br />license for pull-tabs at Elk River Bowl. This gambling organization has <br />contributed 100% of its expenditures to the city's trade area during the past <br />two years. (See attached letter from Celebrity Bowl Charities). <br />Trade Area Expenditure Requirements: <br />The City's ordinance currently requires gambling organizations to spend 75% <br />of their yearly lawful purpose expenditures in the City's trade area. I have <br />received some opposition to an increase in this percentage from local <br />organizations. Opposition to the increase pertains to the following issues: <br />• Fraternal and veteran organizations support activities outside of their <br />trade area; e.g. some local VFW Posts support the Veterans Home or <br />Veterans Hospital. Trade area restrictions would curtail this support. <br />• Many local charitable organizations are chapters of national <br />organizations; e.g. National Cancer Society, American Heart Association, <br />the National Red Cross, etc. Trade area restrictions impose limitations on <br />• these forms of organizations. <br />The Council has been asked to consider these issues prior to increasing the <br />75% requirement. Of the 25 cities surveyed, only three have a requirement <br />of 75% or more. <br />Gambline' Oreanizations <br />All of the gambling organizations operating in the City of Elk River have <br />been informed in writing of this meeting. There maybe representatives from <br />some of the organizations present to speak on this issue. <br />CONCLUSION <br />The Council has several options regarding this matter. They are as follows: <br />1. Recommend that the City's gambling ordinance be amended to include <br />some type of residency requirement restricting outside organizations <br />from receiving a gambling license in the City. (See attached page <br />listing residency requirement options from other cities). <br />• <br />