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Item No. 6 Meeting Date: January 14, 2002 Type of Business: WK WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Givonna Reed, Assistant City Administrator Item Title/Subject: Review of Proposed Ordinance 691, Amending Chapter 502 (Intoxicating Liquor) and Chapter 503 (3.2 Percent Beer) of the Municipal Code as They Relate to Charitable Gambling Date of Report: January 7, 2002 At the December 3, 2001 Work Session the Council staff gave direction to amend Chapters 502 and 503 of the municipal code as they related to charitable gambling. The intent of the amendments was to open the charitable gambling market in Mounds View to local organizations that do not necessarily have their headquarters in Mounds View, and to require charitable gambling to donate 10% of its net profits to the City. Members of The Lions were in attendance at the first reading of Ordinance 691 on December 10, 2001 and expressed concerns about the City’s intentions. Specifically, their issues were as follows: • The Lions were concerned that amending the ordinance would allow outside organizations, with no intent to expend funds in Mounds View, access to the City’s charitable gambling market; and • The Lions stated that the City must spend funds from the 10% fund in the same way that the donating organization expends its funds. Both of these issues will be addressed herein. Local Authority Eligibility for charitable gambling licenses can be restricted to local organizations; however, discrimination against non-residents is generally not favored. The League of Minnesota Cities suggests that like liquor, charitable gambling is a nuisance-prone activity which is subject to more restrictive regulation that other occupations. There are a number of tools that can be used to dissuade outside organizations with no substantial interest in Mounds View from applying for a license.