5.3. SR 06-05-1995 - Laserfiche WebLink

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ITEM 5. 3. MEMORANDUM ver TO: Mayor and City Council FROM: Sandra Thackeray, City Clerk ~,''` DATE: June 5, 1995 SUBJECT: Charitable Gambling in the City of Elk River On May 8, 1995, the council discussed several aspects of the City's existing Charitable Gambling Ordinance as it relates to pull tab operations in the City of Elk River. The Council's main concern is regulating outside charitable gambling organizations who violate the City's ordinance requirement of expending 75% of the lawful purpose expenditures in the City's trade area (Elk River, Otsego, Ramsey, Rogers and Zunmerman). The Council has requested the City Attorney to research the possibility of setting some type of residency requirements for charitable gambling organizations who operate within the City of Elk River in order to regulate this 75% requirement. The Council has also considered raising the 75% requirement to 80%. BACKGROUND: Residency Requirements: I have reviewed charitable gambling ordinances from several cities as shown on the attached table. Although a number of cities include residency requirement restrictions in their charitable gambling ordinances, some attorneys feel that these types of restrictions could be subject to challenge. It has been suggested that ordinances that treat certain types of organizations differently than other types, e.g. property owners versus those who lease facilities, raise equal protection questions. City Attorney Peter Beck has suggested that the Council could include provisions in the City's ordinance restricting outside organizations from receiving a license. He indicated that it would probably be less arbitrary for S the Council to deny a license request from an outside organization with provisions included in the city ordinance. He further indicated that there is no guarantee that this measure would eliminate court challenges. 13065 Orono Pazkway • P.O. Box 490 • Elk River, MN SS330 • (612) 441-7420 • Fax: (612) 441-'1425