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HomeMy WebLinkAbout08/03/1988 Council Minutes1 1 COUNCIL WORK SESSION AUGUST 3, 1988 Mayor Benson opened the Work Session August 3, 1988 at 6:08 P.M. Council Members present: Bisel, Neal, Bohjanen, Reinert. Council Members absent: None. Chief of Police, Campbell, Roseville Council Member, Robert Mattson and Clerk- Treasurer, Anderson were also present. DISCUSSION OF MUNICIPAL GAMBLING ORDINANCE - ROBERT MATTSON, ROSEVILLE CITY COUNCIL Mayor Benson explained that Mr. Mattson is here tonight to discuss with this Council the rules and regulations regarding gambling and to pass along information regarding the gambling ordinance in the City of Roseville. Mr. Mattson gave a brief personal background as well as detailing his involvement in the City of Roseville's gambling ordinance creation. He explained how it came to his attention that there was a great deal of money involved with charitable gambling and how he helped form the Youth Football program in Roseville which was funded by proceeds from charitable gambling. It was apparent within the first three months of operation that this was a lucrative operation since it netted more than was needed by the football program. The North Suburban Youth Association was formed and in 1987 proceeds from charitable gambling to support this organization exceeded $120,000.00. Mr. Mattson explained that it has been very difficult for the state to regulate this industry. It has become a very big business attracting unqualified and undersirable people and has become a wide open ballgame for anyone who wants to abuse the system. He explained that Minneapolis abolished all charitable gambling operations until the time that they could control and re- establish a gambling ordinance. St. Paul has become very restrictive and is currently at issue with the state standards. The Roseville ordinance was established to control and understand what was going on in the community and probably will be modified from time to time. There are currently six (6) organizations operating in Roseville. Mr. Mattson outlined state requirements for charitable gambling. He also explained that certain organizations such as churches can operate up to four (4) games a year but not earn more than $1,000 per year PAGE 1 143 X44 COUNCIL WORK SESSION AUGUST 3, 1988 Mayor Benson asked if one organization can operate in more than one location. Mr. Mattson said yes but Roseville is looking at limiting the locations to three (3) as well as limiting licenses to organizations located within the City. Mayor Benson asked if Roseville requires that the organization requesting a license donate a specified amount of the proceeds to the City. Mr. Mattson explained section 125.040 of the Roseville ordinance which outlines the requirement. He felt this was not too restrictive. Mr. Bisel expressed concern that the organization may consider this the top end of their contribution. This City has at least one organization that is very generous and did not want to give the impression that they should discontinue that practice. Mayor Benson asked if more than one organization can conduct a gambling event at the same location. Mr. Mattson said yes but on different days. Mr. Neal asked if Roseville charges for the license application and the investigation. Mr. Mattson said yes. It was suggested that Chief Campbell set a budget for investigation of applicant and training officers for monitoring games. Mr. Bisel asked how discrimination laws would affect the City's ability to deny licenses. Mr. Mattson explained that the state has some strict rules governing eligibility. He noted that the City of Roseville denied three groups renewal of their licenses and were threatened with a law suit. Nothing materalized. He noted that this City could impose additional restriction on licenses such as a required number of years in existence. St. Paul requires that the majority of funds must be given to youth activities. There was discussion on what groups in this City could benefit from conducting gambling operations such as youth groups, senior programs, mental health organizations and athletic programs. Mr. Mattson noted that the seniors in Roseville have not as yet caught on to this method of obtaining funds. Mr. Reinert asked how Roseville deals with anti- gambling and moral issues? Mr. Mattson said this has not been an issue. He said he did not write the legislation but since it is in place he felt it should be handled as professionally as possible. 1 PAGE 2 1 1 COUNCIL WORK SESSION AUGUST 3, 1988 Mayor Benson asked if there have been problems other than investigation regarding gambling. Mr. Mattson said that the Police Department received two calls in 1987 from family irembers who expressed concern because a member was spending too much money gambling. The Police Department went to the organization and asked them to watch for that particular person. He explained that the problem for the City will be to identify problems in management of the games to be sure they are being operated in an honest and accurate manner. He felt it was imperative that when problems are noted, they be corrected immediately. Mr. Mattson explained that charitable gambling was established at the Minneapolis /St. Paul International Airport. Proceeds help fund the USO program, a daycare center, a beautification program, travelers aid program and a noise abatement program. Mr. Mattson explained that he believes that the City should try to keep out organizations who are in charitable gambling for the money and to regulate locations so that they do not charge extortion sized rent. A rental cap could be included in the ordinance. He felt that the City should endeavor to license organizations who will keep the money within the City. Also he noted that the state offers clinics for gambling managers and suggested that this City require all managers to provide proof that they have attended this clinic. There was discussion regarding the businesses who sell the gambling games themselves. He noted that some states will probably be distributing games rather than the dealers. This is a very competitive business. Mayor Benson thanked Mr. Mattson for coming this evening and said that he would like Mr. Mattson to review the preliminary draft of the Lino Lakes Gambling Ordinance. Mr. Bisel moved to adjourn at 7:06 P.M. Mr. Neal seconded the motion. Aye. REVIEW OF 1988 CITY OF LINO LAKES RESIDENTS SURVEY - LEE MEHRKENS, MANAGEMENT CONSULTANT Mayor Benson called this segment of the Work Session to order at 7 :11 P.M. City Planner, John Miller and Public Works Director were also in attendance. PAGE 3 145 1 4 6 COUNCIL WORK SESSION AUGUST 3, 1988 Mr. Miller explained tha the Council authorized Mr. Mehrkens to prepare a questionnaire to be mailed City wide and then compile the results of these questionnaires. He introduced Mr. Mehrkens to the Council. Mr. Mehrkens thanked the Council for the opportunity to complete the 1988 Opinion Survey. He said this work is interesting and enjoyable and this survey showed the same results and same similarities as other third tier cities. Mr. Mehrkens briefly gave an overview of the survey. He noted that the purpose of the survey is to find the perception of the citizens. Age level of the respondent is an important factor on how the respondent viewed city services. Also the age level of the respondent influenced the demand for certain services. Younger families are moving into the community changing the needs for services in the community. Arnold Kelling noted that people over sixty years of age have it better today than twenty years ago. He also noted that people over sixty are used to doing things for themselves. He suggested this may be a better solution than spending tax payer money. Mr. Mehrkens discussed some of the responses to the park portion of the survey. Some residents felt it was important to have improved facilities, and then there were residents who felt a trail system was important. Mr. Mehrkens said this is one issue that the City will have to deal with. Pat Smith asked if an overview will be published so that there will be awareness of what is happening in Lino Lakes. He noted the community is changing. Mayor Benson explained no decision has been made as to where we go from here. Mr. Volk asked if the peopled who want walking /hiking trails are the silent majority. He has not heard these kinds of requests at city hall. The organized sports groups are the most vocal. Mr. Mehrken said that the survey did show that all age groups want trails. Mr. Karth noted that one reason there are more groups asking for trails is that younger people are moving to Lino Lakes from areas that already have these systems. Mayor Benson asked for comments from the audience regarding what they feel was the most negative and positive part of the survey and where do we go from here.; 1 1 PAGE 4 1 1 1 COUNCIL WORK SESSION AUGUST 3, 1988 Mr. Kelling said this report is excellent and points out the need for businessmen for partners. He said the City should be sitting down with the community businessmen. John Bauman said Main Street and Lake Drive need cleanup. He would also like to see a walking trail system. He said there should be more business and higher valued homes to help reduce the tax burden. Bill Nissen said he was suprised that individual sports rated so high in the survey. He noted in the past group activities rated higher. Bob Williams asked if a 31% survey response gives a good overview of what the citizens needs are. Mr. Mehrkens said that a 25% response is needed. Mr. Williams suggested that each part of the survey results be examined and suggested quarterly meetings of all boards be held to determine what the City should and should not do. Ken Johnson suggested that maybe the Park Board should be encouraging Anoka County to develop services that Lino Lakes citizens are looking for such as trails within the Chain of Lakes Regional Park. He noted that the County controls a great deal of land within Lino Lakes. He was glad to see support for recreational opportunities. Candy Toffoli said she thought this was a very good report. She suggested that Lino Lakes start acting like a big city by hiring a parks director and providing more community activities and publicity regarding these activities. Gary Uhde said he was impressed with the report. He felt this City was doing its part by working on economic development. He also felt taxes are a big issue. Mr. Uhde said this City must face the changing community. Younger residents are looking for different things such as passive parks. He noted the first lots to sell usually back up to passive parks. Mr. Uhde said a water drainage plan is needed. He said the next challenge should be marketing the City. Mr. Reinert asked about the image of Lino Lakes. Mr. Uhde said he feels Lino Lakes has had a bad image but this is changing. Executive housing will help. He said the City should look at some cleanup. Mr. Reinert expressed concern regarding the condition of the entry corridors to Lino PAGE 5 1 7 148 COUNCIL WORK SESSION AUGUST 3, 1988 Lakes. Mr. Bisel felt the City's image starts before you even get into Lino Lakes. Jeff Joyer said he feels image is a real sensitive area. He suggested a drive through the City with a critical eye. He noted that upgrading Main Street is a dramatic improvement. He felt that the walking shoulders of the road should be tied into trails within subdivisions. Harvey Karth said this City has a real problem financially in providing trails and park opportunities that are requested in the survey. Priority must be set and then the City should look to the County for providing walking trails. The City may not have the finances for twenty years. He suggested that all the Boards get together and then sit down with the County Parks Director. There was discussion about preparing another survey in a year as a basis to see if there are any changes. Mr. Mehrkens recommended that the City prepare surveys no more frequently than two to three years. The City can select two hundred to three hundred residents and tell them they are the sample people. He said the City should attempt to get a sixty percent response from the sample people. John Bauman said he felt good about the survey and said he felt it proved that the Economic Development Committee is moving in the right direction. He felt the County Park has taken a lot of land off the tax rolls and this City should try to get the greatest possible use from it. Pat Smith felt information received from the report is fantistic. In the area of City services, he felt the survey shows most citizens feel the City is doing a good job. He suggested that "image" starts at home. He suggested conducting an awareness campaign. His other suggestions are: 1) give new residents a welcome package from the City, 2) do something for new businesses, bring in quality development, 3) educate and make the citizens aware of why we have this tax situation, 4) make citizens aware of the hiking and park facilities that are available. Chief Campbell said he was pleased with the results of the survey as it concerns the Police Department. Mr. Volk said he felt the most positive aspect of the survey was an indication that the City is doing a good job. He suggested using the survey at budget time. PAGE 6 1 1 1 COUNCIL WORK SESSION AUGUST 3, 1988 Mr. Bisel thanked the Park Board for raising the survey issue. He thanked Mr. Miller for his participation and noted that almost all of the Park Board and Economic Development Committee was present tonight and said this is a good opportunity to get together. Mr. Reinert said we now know what one third of the City is thinking. He felt the City should sit down and prioritize its needs. The City will have to stretch its dollar. The County Park is a regional park and at some point we must sit down with the park officials and ask that trails be put in first. He also suggested meeting with school boards to discuss mutual concerns. Mayor Benson suggested that a future agenda address specific issues as well as general issues. He asked that the Boards make recommendations to the Council. He felt that within ninety days a package should be put together with plans on how we can implement the suggestions. Mayor Benson thanked everyone for coming this evening. STATUS REPORT ON GATEWAY FOODS DISTRIBUTION CENTER Mr. Miller told the Council that Gateway Foods has expressed interest in locating its distribution center in either Shoreview, Blaine or Lino Lakes. They are looking for about one hundred acres. Plans are to build a $800,000 to $1,100,000 facity in 1989. They will employ about six hundred and fifty people with an average annual income of about $30,000.00. Gateway has been shown two sites in Lino Lakes. Mr. Miller said that the staff has agreed to give Gateway a proposal on both properties. They are interested in Tax Increment Financing and they are also looking at more land than they need. It is possible that they may 'sell a portion of the land to make a profit. The proposed tax base for this facility is $25,000,000. This will help the short term tax problem and establish the first large industry in Lino Lakes. Tomorrow he will be meeting with the bond consultant for Lino Lakes to determine just how good of a deal the City can offer Gateway. He said getting the first.,big user is a must to prime the pump and suggested the City should do anything short of selling their souls to attract Gateway. He felt that Gateway is a quality firm and would be an asset. PAGE 7 1`49 COUNCIL WORK SESSION AUGUST 3, 1988 Mr. Bisel suggested that Mr. Miller go to Superior, Wisconsin and view Gateway's facility in that city. Mr. Reinert said that Gateway is a whole different ball game in terms of potential. The City would be better off in terms of spin off potential. Mr. Reinert noted that a letter dated July 27, 1988 from Margaret Langfeld indicated that an ordinance entitled Source Separation is to be mandated. This is going to cost this City greatly and asked that this item be put on the August 22, 1988 Council agenda. Mr. Bisel moved to adjourn at 9:05 P.M. Mr. Bohjanen seconded the motion. Aye. PAGE 8