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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />MAYOR <br />Raymond G. Hanson <br />COUNCIL <br />Beverly Scalze <br />Bill Biesener <br />Rick Collova <br />Jim LaValle <br />ADMINISTRATOR <br />Joel R. Hanson <br />TO: Mayor Hanson & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: October 23, 1992 <br />RE: Amendment to Gambling Ordinance Pertaining to Rents <br />Pursuant to direction by the City Council, staff conducted <br />a survey of rental rates for commercial /industrial property <br />in the Little Canada area as well as those charged by other <br />bingo hall operations. (Copies of these results are <br />attached for your review.) Based on the review of this <br />information by a sub - committee made up of Council Members <br />and staff, two generalizations were evident. They are as <br />follows: <br />* Rent structures can vary significantly based on <br />the amenities of the unit, space available for <br />rent, age of construction, value of leasehold <br />improvements, and market factors. Therefore, a <br />direct comparison between rental rates for various <br />structures is different due to the variables <br />present. <br />Based on rental rates charged by other bingo halls <br />and on an apparent range of rents for other <br />available space, it would seem that $400 per <br />session allowable under State rules for bingo hall <br />rent is in excess of current market rates. <br />Considerable discussion followed regarding the method by <br />which rent control could be implemented. The two options <br />we considered were: (1) setting a rental rate per session <br />based on our survey results, (2) allowing the market <br />competition to set rental rates. In doing the former, the <br />problem becomes one of determining what is a true market <br />comparison as the basis for setting the rental <br />limit. In doing the latter, a number of issues are raised <br />regarding the potential for competition in the market as <br />well as logistics of allowing more than one bingo hall <br />license in the City to create the competition. <br />Page 48 <br />