10-28-92 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOBER 28, 1992 organizations are paying under $300 per session. The Administrator pointed out that using the average or median rent analysis, the rents being paid at the Little Canada Bingo Aall could not meet current State Law requirements. The Administrator also reviewed the rental rates for office and commercial space provided by Mover's Warehouse and noted that he added his information for comparison purposes. This information shows that rental rates range from $8 to $18.25 per square foot based on size of space, amenities and the deal negotiated. The Administrator reported that the rental analysis he did of the Mover's Warehouse information shows that most rents are under $300 per session, with very few approaching $400 per session. These numbers may have to be increased, however, to include expenses for janitorial services, utilities, etc. The Administrator reported that the indication of all this information to the committee was that rents are based on the amount of square footage involved, and most organizations are renting less than 12,00o square feet. Rent controls do exist under State Statute based on square footage. It was also evident to the committee that market competition does not exist under the present situation, and the committee explored how the City would approach this matter. Two options seemed evident. The City could either dictate rents by ordinance or let the market decide a fair rate. The first option is possible because State Law gives the cities the ability to be more restrictive in the area of charitable gambling than State Law. However, the committee questioned how the City would determine what amount of square footage should be rented or what a fair market rent would be. The committee felt that these issues may not be appropriate for the City to decide. The second option discussed involved letting the market determine the rent by creating a competitive situation. The City can amend the ordinance to allow another bingo hall license. The concern the committee had with allowing another bingo hall was with finding a way to rotate bingo sessions between the two halls and other logistical issues. The Administrator pointed out that there is a proposed ordinance in the agenda that would set rents for bingo hall sessions by ordinance. The committee discussed this option, but determined it was not the preferred approach. The committee feels that the charities would be best served by gettinq together and developing a unified approach that would resolve the situation, but if that does not occur, the City has the option of legislating a solution. Page 9