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OORSE.` <br /> DORSEY & WHITNEY LI 27 <br /> MEMORANDUM <br /> TO: Mayor and Members of the City Council <br /> Michael Morrison, City Manager <br /> FROM: Jerome P. Gilligan <br /> DATE: May 5, 2004 <br /> RE: Amendment of Section 535 of City Code to Permit Charitable Gambling in <br /> Restaurants Holding Liquor License <br /> In order to permit charitable gambling in restaurants holding on-sale liquor licenses it will <br /> be necessary for the City Council to amend Section 535.02 of the City Code. Presently the <br /> section limits licensed charitable gambling to municipal on-sale liquor establishments. I have <br /> prepared an ordinance amending Section 535.02 to permit charitable gambling in <br /> establishments holding an on-sale liquor license. <br /> Under Minnesota Statutes, Section 349.213, the City has the authority to by ordinance <br /> require that an organization conducting licensed charitable gambling expend all or a portion of <br /> its lawful expenditure from gross profits derived from the charitable gambling conducted in the <br /> City within the City's trade area. The ordinance must define the City's trade area. This statute <br /> requires that the trade area must include each city which is contiguous to the City. The Council <br /> may wish to consider imposing this requirement on licensed charitable gambling, but it may be <br /> of limited value in ensuring the profits from licensed charitable gambling are expended in a <br /> manner that benefits the City and its residents, because of the requirement that the trade area <br /> must at a minimum include all cities contiguous to the City. <br /> DORSEY&WHITNEY LLP <br />