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Item No: 2 Meeting Date: March 1, 2010 Type of Business: Work Session Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Assistant City Clerk - Administrator Item Title/Subject: Discuss Charitable Gambling Code Amendment Introduction: At the 2009 September Work Session, September 14, 2009, City Council Meeting and the 2009 December Work Session, Staff and the City Council reviewed a draft of an ordinance creating a new chapter in the City Code regulating lawful gambling. During the December 2009 Work Session, Lake Regional Hockey Association (conducting lawful charitable gambling at Moe’s) and the Spring Lake Park Lions (conducting lawful charitable gambling at Robert’s Sports Bar and Entertainment), raised concerns about the new Charitable Gambling Code amendment requiring licensed charitable gambling organizations to contribute 10% of their net profits to the City. According to Lake Regional Hockey Association and the Spring Lake Park Lions, profits have been steadily decreasing, and therefore, it is becoming more difficult for them to raise money for their organization. Staff was instructed by the City Council to meet with these organizations to discuss this City Fund, and try to come up with other options. Discussion: Staff spoke with the Spring Lake Park Gambling Manager, Shawn Donahue, on Thursday February 25, 2010, and he expressed his continued concerns about this City Fund. He further stated that gambling revenues continue to decrease, and would like the City Council to consider reviewing this City Fund requirement at a later time. Mr. Donahue felt that the City already has two local charitable organizations in this City, which already give back to the local community. In addition, Mr. Donahue made a recommendation for City Council consideration to possibly add a requirement that all organizations must be based in the City of Mounds View. Mr. Donahue further stated that the City Council could also provide language that the City Council could exempt organizations who do not meet residency criteria on a case by case basis. Mr. Donahue felt that this would assist the City ensuring that all charitable gambling proceeds go back to the local community. The City of Coon Rapids and Roseville have residency requirements for organizations to conduct charitable gambling in their city, however, their City Code does not provide exemption criteria for their City Council to consider organizations outside their city limits. (Staff is checking on the legalities associated with such requirements.)