06-10-87 Council Minutes - Laserfiche WebLink

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P4INUTES City Council June 10, 1987 Bingo Short reported that he does not have a signed lease agreement with (Cont.) the North Suburban DAC, nor the Lions, Humane Society, or P4RID. Executed leases are in existence with the Servants of Mary, St. Joseph's Society and Lake Owasso Children's Home. John Benson reported that Servants of Mary and St. Joseph's Society executed leases with Movers tJarehouse based on his legal advice as well as financial advice received from their accountant, Stan Babel. The accountant feels that the numbers are acceptable under the new lease. Benson also reported that while the lease shows certain days, the charities are aware that some nights are more profitable than others and have agreed to rotate nights on a reasonable basis. Scalze pointed out that the leases the City has are for Wednesday through Sunday evenings. Scalze asked if Arden Hills is operating bingo 7 nights per week. Stan Babel reported that they were. Babel also reported that he has discussed the lease with Mr. Short numerous times. Babel reported that his interest in the lease was to negotiate a lease as close to a pure gross lease as could be done. Babel reported that charge-backs are dangerous to the charities in terms of the compliance issue. Babel felt that the lease presented represents a gross lease and he advised Servants of P-lary and St. Joseph's Society to accept the lease. Blesener asked if the lease covered a certain day of the week and was not per bingo session. Short replied that this was correct. Fahey asked if the lease reflected that same charges that were made under the lease with LCCB, Inc. Short replied that the leases are within 6¢ of each other. LaValle asked how the issue of rotation will be addressed. Babel reported that it is clear to the charities that if equity is going to occur, rotation is necessary, and that the charities are ivilling to agree to a rotation as long as the books of one charity are not opened up to another. Some charities object to anything other than a calendar rotation. LaValle felt that there should be a written agreement between the charities with regard to rotation and not just a verbal agreement. Fahey agreed that a written rotation agreement should be a condition of any approvals. Fahey also felt that the agreement was necessary from a policing standpoint in that if the charities are rotating and operating the same number of days, there should not be a great deviation in the income earned by the various charities when the City is reviewing this information. Page -4-