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REQUEST FOR ACTION <br />To Item Number <br />Ci Council 8.1. <br />Agenda Section Meeting Date Prepared by <br />Administration Ma 18, 2009 Tina Allard, Ci Clerk <br />Item Description Reviewed by <br />Ordinance Amending City Code Regarding Legalized Gambling Lori ohnson, Ci Administrator <br /> Reviewed by <br />Action Requested <br />Council motion to adopt an ordinance amending Section 38, Article V, regarding legalized gambling. <br />Background/Discussion <br />This item is continued from the May 4, 2009 Council meeting. <br />Section 1 <br />Per state law the trade area must include cities and townships that axe contiguous to Elk River. The <br />following cities and townships were added as they are contiguous to the city. See attached map from the <br />Census Bureau website. <br />City of Nowthen <br />City of St. Francis <br />City of Dayton <br />Big Lake Township <br />Livonia Township <br />Orrock Township <br />Additional communities (not contiguous to the city) can be included in the trade area. The current <br />ordinance lists Zimmerman and Rogers as being in the trade area. It is unclear in past city history why <br />these two communities were included in the ordinance originally but the VFW organization is officially <br />known as the Elk River-Rogers VFW. <br />Section 2 <br />Organizations will be allowed up to two premises permits. <br />Section 3 <br />The trade area is already in the definition section of the ordinance so it should be removed from this <br />section. The trade area for lawful purpose expenditures must include cities and townships contiguous to <br />Elk River. <br />Organizations are required to spend 75% of their lawful purpose expenditures in the city's trade area. The <br />language in our current ordinance states the 75% must be calculated based on an organizations gross <br />profits. The State Gambling Control Board stated this language could be a burden on organizations and <br />may be legally challenging to enforce. Based on conversations with the Board and other communities, <br />staff recommends the 75% requirement be calculated from total lawful purpose expenditures, which are <br />submitted on tax forms by the organizations. <br />S:\Administration\Council RCA\Licensing\Gambling\2009\Final Adoption Memo.doc <br />