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P4INUTES <br />City Council <br />June 10, 1987 <br />Bingo are better off collecting this money themselves as LCCB would have to <br />(Cont.) pay taxes on this money. <br />Wylie explained that LCCB would have to pay 6% sales tax on an <br />admission charge, while the charities will pay 10% gambling tax on <br />these funds. <br />LaValle pointed out that the State has determined that taxes will <br />be paid on these funds, and the cost is made up in the cost of <br />admission. LaValle did not feel the Council needed to be hung-up <br />on this issue. <br />4Jylie felt that with the significant change in the way the hall has <br />to operate, a careful consideration of the new lease is warranted. <br />blylie felt that the term of the lease was important as the bingo <br />operation may not be financially feasible. <br />Blesener felt the charities had the option of either signing the <br />lease, locating somewhere else, or not conducting charitable gambling. <br />Fahey stated that he would not hesitate to lean on the landlord if he <br />felt the rent being charged was overreaching. Fahey felt that if the <br />charities could lock up the base rent for 5 years, except for escalators, <br />that ~as a good deal. <br />Wylie stated that it vdas his opinion that the LCCB lease continued <br />until LCCB either voluntarily released its rights or was evicted. <br />Neither has happened. Wylie stated that if some mer~bers of LCCB get <br />leases with Short and some don't, a problem is being created. <br />Fahey pointed out that the City has been advised that this matter <br />should be left to the State Gambling Control Board and should not be <br />a concern of the Council in looking at the applications before it <br />tonight. <br />LaValle asked if LCCB would consider a court action over the lease. <br />Wylie stated that he did not know this answer. <br />Fahey stated that he could understand LCCB's trying to preserve its <br />rights. <br />Blesener felt the point was mute if the 4 charities could not come <br />to an agreement with the landlord and do not get a gambling license. <br />Fahey stated that he understood the point that there may be unhappy <br />charities if P1r. Short does not grant them a lease. However, this <br />is not the function of the Council. <br />P1r. Benson replied that with regard to the 5-year term of the new <br />lease, the lease is contingent upon the charities being relicensed, <br />therefore, as far as his tenants are concerned, they actually have <br />Page -7- <br />