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c1 V " 994Z ceaiedeek <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX (612) 484 -4538 <br />October 9, 1995 <br />TO: Mayor Fahey and Members of the City Council <br />FROM: Kathy Glanzer, Administrative Assistant <br />RE: Gameroom License Fee <br />MAYOR <br />Michael 1. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />Based on our previous discussion regarding gameroom license fees, <br />I conducted a survey of some gameroom vendors. Results of that <br />survey are below: <br />American Amusement Arcades - Ben <br />AAA pays the city license fee for their accounts. Typical <br />commission to the business is a 50/50 split of revenue from <br />machines, less 50% of the license fee. If a business <br />refuses to pay any portion of the license fee, AAA will pay <br />100 %. The commission is still a 50/50 split. <br />Mendota Valley Amusement - Dave <br />MVA pays the city license fee for their accounts. Again, <br />typical commission is 50/50 split of revenue, less 50% of <br />the license fee. If a business refuses to pay any portion <br />of the license fee and the account is a good one, MVA will <br />pay 100 %. The commission is still a 50/50 split. <br />Dave indicated that a $25 per machine license fee is very <br />reasonable and up to $50 per machine is livable. He <br />indicated that the Cities of Minneapolis and St. Paul charge <br />between $37 and $40 per machine. He also informed me that <br />on average machines take in $200 per month. <br />Theisen Vending - Dan <br />Theisen Vending pays the city license fee most cases. <br />License fees come off commission, usually 50/50 split. <br />However, if a location is very profitable, Theisen pays 100% <br />of the fee. Revenues are usually split on a 50/50 basis, <br />but can vary depending on profitability. <br />Page 49 <br />