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MINUT~S <br />CITY COUNCTL <br />APRIL 9,1997 <br />N[orelan pointed out that four of the charities contacted by Anderson have <br />been in tne pull tab business for a long time. They are all very successful <br />charitable gambling organizations. Morelln could not understand why <br />there w1s no interest in the S1xon as a pull-tab site. Morelan felt these <br />organizations would locate at the Saxon unless there is a~ood reason not <br />to. Rent may be an issue. Security may be another issue. <br />Scalze indicated tl~aC Anderson was responsible for security at the site. <br />Anderson replied tltat State Law does not allow him to be responsible for <br />security or to reimburse an or~anization for any losses they might incur. <br />Anderson again pointed out that he has solicited the CiYy-based <br />a~ganizations and no one is interested. <br />Fahey indicated that his experience fi om the incepYion of charitable <br />~ambling is tliat the City has stayed away from the issue of rent being <br />chlrged by landlords. I-Iowever, the City is concerned about landlords <br />charging excessive rents. F1hey suggested the revenues a charity can <br />expect from the Saxon does notjustify the $1,000 per month rent <br />compared to the revenues being earned 1t oYl~er ~ull-tab sites in tl~e City. <br />Fahey su~;ested the tone of Mr. Anderson's letter Co the City-based <br />organiz2tions indicated a$1,000 per month rent. There is also the concern <br />abotiit security ~t the Saxo~~ based on previous experience. <br />Fahey i~~dicated ihat he would like to see the Saxon have a pull-tab site <br />and one of the City-based charities operating that site. Fahey suggested if <br />the Coimcil or Staff can help facilitate that, he would lilce notl~ing better. <br />However, Fahey did not support amending the Gambling Ordinance to <br />allow outside charitable or~anizations to operate in the City. P'ahey noted <br />that Little Canada-based orgai~izations do not l~ave 2he ability to operate <br />pull-tab sites in Roseville, for example. <br />Fahey sug~ested a monthly rent in the $400 fo $500 range would be more <br />reasonable. Fahey indicated that none of the pull-tab sites in the City <br />started at tl~e $1,000 per montl~ rent, and had to show that revenues <br />justified this level of rent. <br />F1hey stated tl~at in his discussions witl~ Little Canada Charity Plus, they <br />indicated tl~ey would be interested in tlie Saxon, but not at the $1,000 per <br />month rent. Fahey also believed the security issues with the Saxon could <br />be corrected. Fahey indicated it was not the ii~teution of the Council to <br />deprive Mr. Anderson of havii~g a pull-tab site at the Saxon. However, the <br />Council needs to support its City-based charitable gambling operations. <br />7 <br />