10-28-92 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOBER 28, 1992 within the next couple of weeks. Fahey stated that it is the hope of the Fire Department that the City will ease up on the issue of additional regulation at this time. Fahey requested that the Council address the letter submitted by the Fire Department requesting an amendment to their premise permit allowing a second day of bingo at the Little Canada Bingo Hall subject to negotiating a lease with the landlord for that additional day. Fahey pointed out that the Fire Department is a home town charity and that 100% of the funds it raises through charitable gambling go to the benefit of the City. Bob Matson, North Suburban Youth Association, reported that it was their position a month ago that they had a lease and premise permit for two days of operation at the Little Canada Bingo Hall. Matson did not believe it appropriate for the City to make a decision that would take one of those days away from NSYA. Matson reported that NSYA has done everything in good faith, has operated in compliance with City ordinances, and has negotiated a lease with the landlord. Although Matson indicated that NSYA did believe that the lease amount was high. Matson reported that NSYA has operated in good faith and would like to continue operating two days per week at the bingo hall. Matson reported that two or three years ago a rental rate of $400 per session was not a major issue because there were adequate numbers of customers to support that amount of rent. However, with declining revenues each organization must look at the bottom line and the dollars available for their projects as well as the cost of satisfying State regulations. Matson reported that State compliance requirements are that no more than 60% of bingo proceeds can be spent on expenses and no more than 50% of pull tab revenues can be spent on expenses. Matson reported that in 1991 all organizations operating at the Little Canada Bingo Hall were in compliance with these requirements, however, as of June 30, 1992 none of the organizations are in compliance. This indicates that revenues are down, but expenses have remained the same. Matson reported that of the organizations operating at the bingo hall, NSYA is the closest to meeting compliance requirements as of June 30, 1992. Matson reported that none of the organizations can survive unless they bring these figures into compliance. To do so means reducing expenses. Business is down dramatically, and it doesn't appear that it will increase. Matson felt that the issue has moved beyond that of rent. Page 12