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• 1 *however, that veto power would have to be supported by very 2 good reasons for denying a license to only that applicant; 3 *the City could conceivably establish regulations and restric- 4 tions to limit the locations, and even restrict the operations 5 to local organizations, but the basis for those distinctions 6 would have to be specifically defined, not arbitrary. 7 Councilmembers acting as "devil' s advocates" proposed various worst 8 case scenarios related to what could happen if the pull tab sales were 9 restricted to municipal on-sale liquor stores. 10 Ranallo: wondered if the two bowling alleys where the City permits 11 the sale of 3 . 2 beer would question the City' s allowing 12 pull tabs to be sold only in their own on-sale establish- 13 ments. 14 Childs: indicated he had given some thought to that happening and 15 had concluded 3 . 2 beer did not meet the qualifications for 16 alcoholic beverages which the City desires to control by 17 restricting sales to only municipally operated facilities; 18 said the same argument could probably be made related to the 19 Council' s desire to control gambling activities by limiting 20 such operations only to locations which the City controls. W1 Soth: agreed that the City might be able to legitimately argue 22 that it would only be in municipally run locations that the 23 City could oversee gambling operations; but 24 another interpretation might be made that St. Anthony was 25 limiting the operation to its own .facilities for its own 26 gain. 27 Sundland: suggested the response to that interpretation would probably 28 be that state law already established that rents which the 29 City may charge may not exceed those which would be reason- 30 ably charged for the square footage the pull tab operation 31 used and not based on a percentage of the profits. 32 Soth: said he didn' t think the issue was quite that simple because 33 someone might then make the argument that by restricting the 34 operation to only municipally run facilities, St. Anthony 35 might be trying to circumvent the law which says the City 36 can' t issue a license for the sale of pull tabs. 37 Childs: said he understood New Brighton had restricted the pull tab 38 operations to only on-sale and not 3 . 2 facilities in their 39 city, which include charitable organization restaurants and 40 41 bars as well as private establishments which are licensed to •42 sell liquor. 5