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MINUTES <br />CITY COUNCIL <br />OCTOBER 28, 1992 <br />Scalze felt that there were two variables that would be <br />forcing orqanizations out of compliance, the first <br />would be that rent is too high, the second is that <br />compensation is too high. Scalze felt that if business <br />is down, the organizations should be working toward <br />reducing rent and compensation. Scalze stated that it <br />was her hope that the organizations would take care of <br />these items on their own. <br />Matson agreed that the charities must not only address <br />rent but also compensation. The organizations must <br />look at whether or not they are overstaffed and if they <br />are paying staff too much. Matson reported that two <br />years ago the money was flowing in, and rent and <br />compensation were not issues. However, the competition <br />for the gambling dollar has increased dramatically, and <br />the charities must be much more conscience of how they <br />are spending their money. Matson reported that if the <br />charities do not address these issues, they will be out <br />of business. <br />Blesener asked if NSYA was looking to the Council to <br />address the issue of rent. <br />Matson replied that NSYA feels they are over-regulated <br />now. <br />Strohbeen reported that Lake Owasso is in compliance. <br />Strohbeen reported that she has received no <br />compensation as gambling manager for Lake Owasso. <br />Matson reported that he has reviewed the various <br />organizations reports submitted to the State, and for <br />1992 through June 30, 1992, the organizations are out <br />of compliance. <br />Tom Short, Mover~s Warehouse, commended the Council on <br />their investigation so far. Short reported that his <br />company, as landlord, is open to scrutiny. Short <br />stated that Mover's Warehouse is willing to prove to <br />anyone that the rents they are charging are the same as <br />or better than anyone else's Short asked the Council <br />to compare apples to apples. Short also reported that <br />Mover's Warehouse has not increased base rent charged <br />to the charities in the last five years, indicating <br />that it is the same now as it was in 1986. <br />LaValle asked if Mover's Warehouse would be receptive <br />to leasing a smaller are for the bingo hall if that was <br />the request of the charities due to crowds being down <br />and expenses up. <br />Short replied that they would give it consideration <br />Page 13 <br />