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MINUTES <br />City Council <br />April 22, 1987 <br />Bingo alleviated shortly. Wylie stated that he is reasonably sure that <br />(Cont.) the Gambling Control Board has this issue before it and will <br />make a decision when it acts on the license renewal requests for <br />the LCCB charities. Wylie felt that there should be some degree <br />of faith in the State regulators that they will tell the charities <br />whether or not they can operate in the manner in which they have <br />been. <br />LaValle stated that he could not understand why the charities are <br />so adamant about operating under LCCB. LaValle stated that he was <br />in favor of bingo, but felt that there needed to be some accountability <br />and that the charities should be operating individually. <br />Fahey felt that the organizational set up should be up to the <br />charities as long as it complies with State law. However, Fahey <br />did not feel the City could accept that the State would make a <br />determination on this issue in reviewing the license applications. <br />Fahey pointed out that the State Gambling Control Qoard is under- <br />staffed. <br />Scalze stated that she felt it was obvious under State law that <br />Finnerty's participation on the Board was against the Law. Scalze <br />also felt that the individual charities should be leasing from <br />Tom Short and not LCCB. <br />Wylie nointed out that the existence of LCCB helps the charities <br />meet compliance regulations. Wylie again stated that if the issue <br />is to get the landlords away from bingo, this could be turned over <br />to a trustee. 4lylie also noted that when the lease was first <br />negotiated with Mr. Short, this law did not exist. <br />tJylie reported that LCCB is willing to run the operation any way <br />that the State tells them it must be run. <br />Wylie also reported that the charities want to operate as a group <br />because if they had to deal with Short on an individual basis, they <br />would be skinned alive. Wylie pointed out that after the first <br />lease was signed with Short, he later went around with a second <br />lease soliciting individual signatures on that lease. The first <br />lease provides rent of $137,000 annually, plus taxes and insurance. <br />The second lease was for substantially more money. <br />Scalze asked how much rent the charities are paying to LCCB. <br />Wylie estimated the rent at about $3,500 per month. <br />Scalze asked why the amount of rent being charged the charities <br />did not eo,ual that of the lease agreement. <br />Stan Babel, accountant for LCCB, reported that rent is charged <br />per session, and that rent can vary depending on the day. For <br />example, more rent is charged for a weekend session than a weekday <br />session. Babel also reported that it is the intent of the Hall <br />Association that rent will decrease. Start-up expenses were included <br />Page -26- <br />