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Request for Action <br />To <br />Item Number <br />Mayor and City Council <br />8.1 <br />Agenda Section <br />Meeting Date <br />Prepared by <br />General BusinessJune <br />5, 2023 <br />Tina Allard, City Clerk <br />Item Description <br />Reviewed by <br />Resolution: Premises Permit, Fraternal Order of <br />Cal Portner, City Administrator <br />Reviewed by <br />Eagles at Elk River Golf Club <br />Jared Shepherd, City Attorney <br />Action Requested <br />The Council could consider the following options for the permit request. <br />1. Adopt, by motion, a resolution approving the premises permit with findings; or <br />2. Adopt a motion to direct staff to prepare a resolution of denial with findings. <br />Background/Discussion <br />Per City Code the intent of allowing gambling in Elk River is that the proceeds of gambling shall directly benefit the <br />citizens of the community. <br />The Fraternal Order of Eagles Club #3264 has requested a Premise Permit to sell pull tabs from a second location, <br />the Elk River Golf Club. City ordinance allows up to three permits per organization. The permit is issued by the <br />State Gambling Control Board with approval from the city. <br />The State Gambling Control Board has reporting requirements and they evaluate organizations according to a star <br />rating system. <br />Percent Spent on LPE <br />More than 50% <br />More than 40% <br />More than 30% <br />More than 20% <br />Less than 20% <br />Rating <br />5 Star <br />4 Star <br />3 Star <br />2 Star (1-year automatic probation) <br />1 Star (1-year automatic probation) <br />Elk River Eagles' Rating <br />2020 <br />2021 & 2022 <br />The Board's rating system takes into consideration the total Lawful Purpose Expenditures (LPE). City ordinance <br />requires an organization to expend 75% of Lawful Purpose Expenditures in the city's trade area. The Club has not <br />met these requirements for the last three years. The Club is on probation with the state Gambling Control Board <br />and if they are unable to raise their rating after the probationary term, the Board could suspend their license or <br />impose a civil penalty. <br />The Club cited various reasons for being unable to meet state and city requirements as noted in their attached letter. <br />The Covid 19 pandemic began in 2020. The federal government formally declared the national state of emergency <br />over on May 11, 2023. <br />The Elk River Vision P N W I e E U 0 V <br />A welcoming community rvitb revolutionary and spirzted resourcefulness, exceptional NATURE <br />service, and community engagement that encourages and inspires prospect. Updated. Januay 2023 <br />