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Item No: 03 <br />Meeting Date: July 6, 2009 <br />Type of Business: Work Session <br />Administrator Review: _________ <br />City of Mounds View Staff Report <br /> <br /> <br /> <br />To: Honorable Mayor and City Council <br />From: Desaree Crane, Assistant City Clerk-Administrator <br />Item Title/Subject: Charitable Gambling Ordinance Review <br /> <br /> <br />Introduction: <br /> <br />The City Council expressed a desire to review the City Code pertaining to charitable <br />gambling, which is found in Chapter 502. Specifically, the Council wanted to revisit the <br />possibility of requiring charitable gambling organizations to contribute ten percent of net <br />profits to the City as allowed by state law, MN Statutes 349.213. <br /> <br />Background: <br /> <br />On January 28, 2002, the City Council passed Ordinance 691 (attached), which revised <br />language regarding the City’s trade area. There was some discussion then in having <br />the charitable gambling organizations contribute 10% of their earnings into a city fund, <br />and the discussion continued on December 10, 2001, January 14 and 28, 2002, and <br />again at the March 2005 Work Session. Ultimately, the Council was opposed to <br />requiring such payments. <br /> <br />Discussion: <br /> <br />This issue was discussed again at the March 2009 Work Session, and Staff was <br />directed by the City Council to invite the charitable organizations to attend a meeting to <br />discuss this possibility. Staff has contacted all the charitable organizations and invited <br />them to this Work Session for an open discussion. <br /> <br />Attached are staff reports along with the Minutes from previous meetings for the <br />Council’s reference. The City of Maplewood currently has a ten percent contribution <br />policy (their City Code pertaining to the contribution is attached). Other cities such as <br />Arden Hills, Shoreview (Shoreview requires 10% contribution per quarter), and St. Paul <br />have similar policies. Changing the Code to require licensed charitable gambling <br />organizations to contribute ten percent of their net profits would guarantee that <br />proceeds from the charitable gambling operation would be spent in the City of Mounds <br />View directly. <br /> <br />Direction: <br /> <br />Staff seeks guidance from the City Council on whether the City Code should be <br />amended to require charitable gambling organizations to contribute ten percent of their <br />net gambling profits to the City.