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City Council - 10/24/1989 EDEN PRAIRIE CITY COUNCIL APPROVED MINUTES TUESDAY , OCTOBER 24 , 1989 6 : 30 P. M. CITY COUNCIL CHAMBERS 7600 Executive Drive COUNCIL '✓!EMBERS : Mayor Gary Peterson , Richard Anderson, Jean Harris , Patricia Pidcock, and Douglas Tenpas CITY COUNCIL STAFF: City Manager Carl J . Jullie , Assistant to the City Manager Craig Dawson , Director of Parks , Recreation &. Natural Resources Robert Lambert . and Recording Secretary Barb Malinski i PLEDGE OF ALLEGIANCE r ROLL CALL : All members present . I . APPROVAL OF AGENDA x MOTION: Picicock moved, seconded by Harris to approve the .Agenda. Motion carried unanimously . } II . LAWFUL GAMBLING COMMITTEE. REPORT Peterson asked for insights from the Council or committee . Jerry Johnson, 15801 North Hillcrest Court , chair of the Lawful Gambling Study Committee , spoke to the Council stating the report speaks for itself. Peterson questioned Johnson if organizations had to have been in existence in Eden Prairie for at least three years to obtain lawful gambling licenses . Johnson said there had been discussion on keeping the net proceeds in the City ; he was concerned with people coming in from other cities who want to set up a new organization and thought the city may want to safeguard this possibility. Peterson suggested that legal opinion was needed on this . Harris asked if there were any multiple-license locations in the City. Dawson responded that the recommendation of the committee was to allow only one license holder to be operating on a location with the exception of one location on which there were several license holders at the present time . f Peterson commended Johnson and the committee for the well- 1 x City Council Minutes October 24 , 1989 thought-out arid well-presented report . Pidcock was interested in knowing ( in the 4-2 majority vote ) , if the minority votes cast did not want gambling in the Cite or what was their position . Johnson said 4 votes were in favor of no gambling in Eden Prairie and the remaining 2 were in favor of some form of gambling . Pidcock asked how mane resources were studied to formulate the conclusions on the report . Johnson and Dawson agreed there were about six resource persons . PUBLIC HEARING : Denis Bertrand , 18111 Priory Lane , Minnetonka , past commander , of the American Legion , said of the 4-2 majority of committee members , one of the majority cast his vote by proxy . Bertrand thought this vote could have changed the majority. Bertrand had the several comments on the lawful gambling report , he disagreed with " the amount of revenue from gambling activity is liI:ely to be less than proponents have estimated . " Pull-tabs have instant gratification versus lottery tickets which are drawn once a week . Pull-tabs pay out 82% of i receipts as winnings and lotteries return 40-50%. He disagreed with "persons . . . with low to moderate amounts of discretionary income" like to gamble because he thought k everybody liked to gamble . Responding to the fairness of the game ' s operation , Bertrand said people do not know how many winners were left in a game ; therefore , cheating was impossible . The State required a considerable number of reports to be filed for public record and he questioned who would have time to analyze the reports . The report stated, "evidence of illegal operations is mounting. " Bertrand believed that drug abuse is increasing at a much more alarming rate . Bertrand commented on the possible overcrowding of local highways and estimated on a normal evening , 90 additional cars would use the highway system. This will not overtax the facility . In summary , Bertrand said the Legion had a class A license since 1983 and if a Class C license were obtained , it could conduct only bingo games . He stated bingo and pull -tabs complement each other in a bingo hall . He had gathered ..55O signatures on a petition that stated the signees petitioned the City Council not to pass any lawful gambling ordinances that are more restrictive than the State laws and rules . 2 Ci t;• Council '.Minutes October '21-4 , 1989 Harris asked for an explanation of pari-mutuel betting . Bertrand replied that pari-mutuel betting left the establishment a percentage of payouts off the top ( approximately I3 percent ) . In bingo , prizes are set in advance and if enough people " feed the pat" , the establishment made more money . If there were few bingo cards bought , the organization could lose money . Pidcock asked for clarification on the allegation Bertrand made regarding the individual who voted by proxy. Dawson clarified that the person absent did not vote on the recommendations . 1 Ron Winkler , 10300 Winter Place , believed gambling was neither moral or immoral , and people should gamble as they see fit . The people of Eden Prairie would make their own decisions on gambling through the marketplace . Virginia Wold , 635 Eden Prairies Center, gaming manager for 8 years with the Shriners , Jaycees , and North Dakota Association for the Disabled , informed the Council that she had seen nothing but good come from charitable gambling . Dick Feerick , 7103 Interlachen Court , spoke on behalf of the American Legion . He expressed concern that the Legion needed the bingo operations to maintain their viability and counted on charitable gambling lease revenue to meet building debt � obligations . Ruth Bach , 16409 Easy Street , commented about leaving the money in the community. She said the Legion gave $500 each to the Halloween party, PROP , and the school band to finance a trip. George Roles , 7953 Eden Court , who worked with the Eden Prairie athletic Administration for many years , told the Council the American Legion had helped various athletic groups . He said the organization was one of the best and he was proud to be a member. Pidcock asked Dawson if committee members visited a gambling facility. Dawson replied to his knowledge this was not done as a committee . Harris asked if there were state prohibitions against the use of funds . Bertrand said the regulation of contributions fall under certain categories--for example , aiding adults in sporting activities is prohibited . f Peterson informed the audience there was no inclination c>n the +� past of any Councilmember to intentionally do anything 3 Cit`- Council Minutes October 24, 1989 detrimental to the Legion and the Council had appreciated the Legion for the past many years . The Council appreciated what the Legion had done and also took seriously the place of lawful gambling . Judy Schuck, member of the Lawful Study Gambling Committee , said it wa►s impossible to separate the issues and not vote against the Legion. Dawson affirmed Peterson ' s remarks that the committee did not make any value judgment about the respect the community held for any organization nor their competence to run gambling activities . Harris questioned the value of gambling in Eden Prairie and found the only justification to the City and its residents are the proceeds returned to the community. She favored legal gambling , but would like additional data, legal counsel , and time to review the proposed guidelines recommended by the committee . Pidcock agreed. Anderson also favored legal gambling and didn ' t see any evidence why the American Legion shouldn ' t be granted a license : however , other organizational E details had to be worked out before formulating an ordinance . a Harris wondered who controlled the licenses . Tenpas said the i integrity of legal gambling at the American Legion wasn ' t tquestioned---he would vote for legal gambling--but the location was questionable . He also preferred legalized gambling to be in private facilities . Tenpas requested the issues to be dealt with at a future date include 1 ) the number of facilities--prefer one location per 20 , 000 people , 2 ) the number of days per week facilities are open , 3 ) the city tax issue, and 4 ) where the proceeds are distributed. Joe Benson, Tenstrike , Minnesota, representative of Laryngectomies/Tracheotomies said the American Legion made a donation to his organization to help individuals attend seminars and conventions . Peterson commented he was not convinced lawful gambling in the long- or short-term was for the great community good. Philosophically, he believed Eden Prairie would not be enhanced by the presence of lawful gambling . He didn ' t think the Council was ready to make a decision, but suggested the study committee meet with two Councilmembers and two staff members to make further recommendations for Council approval . Harris questioned if this effort would result in an ordinance . Peterson expected it would . Pidcock said she agreed with Harris ' comments and did not want widespread gambling in the community. She thought one gambling facility per 10 ,000 residents was a good ratio and did not think traffic was a problem. 4 C ity Council Minutes October 24 , 1989 Tenpas asked if the Council could request that the study group provide the specifics of an ordinance within a two-week period and act upon the two license applications now before the Council . Anderson and Harris agreed that they would like to have this matter resol%,ed in the near future . MOTION Anderson moved , Harris seconded, to permit legal gambling within the City of Eden Prairie and that the terms be worked out for an ordinance controlling legal gambling between staff , council , legal counsel , and a gambling study committee representative . Tenpas reserved his right to vote no if the ordinance were written differently from what he had recommended. Anderson was not accepting ail of the guidelines of the committee ; the terms would be worked out witil legal staff . He said his motion was to permit lawful gambling . Peterson suggested that two members of the Council , one representative from the Legion , and members of the previously constituted lawful gambling committee work through this . Virginia Wold asked for a proposed timeline . Harris asked if the process would be equally effective and more efficient if administrative and legal staff were to prepare a policy for council discussion which would lead to formulation of an ordinance . MOTION• Anderson withdrew the motion. Harris moved , Pidcock seconded , to direct staff to work with legal counsel and come back with a policy which would become a future ordinance . Motion passed unanimously. Harris commented that while the Council awaited a detailed policy, it could still act on license applications during this period of time in terms of the policy and ordinance while understanding that it would govern conditions placed on licensees . Anderson asked Bertrand if 30 days were appropriate . Bertrand f said it was fine. l III . 1 AWF['L GAMBLING LICENSE APPLICATIONS 5 Cite Council Minutes October 24 , 1989 Jullie informed the Council the Acrogymnastics Sports Education Association ' s vote was needed tonight . Tenpas asked how many nights this group would be leasing at the American Legion . Bertrand said any single organization can conduct a maximum of six sessions per week. Pidcock asked Bertrand if Acrogymnastics was a non-profit organization , operating for three years , and had 16 members . Bertrand replied yes . PIOT I ON: Harris moved , Pidcock seconded , to waive the 60-day City comment period on the Acrogymnastics Sports Education Association application for a Class A gambling license . Peterson asked if the Council could give approval without any conditions and have future conditions apply to that licensee . Tenpas said the rules and ordinances set up would have to apply to this group . Peterson stated the City would expect the terms of a legitimate contract be met once it was drawn. (� Tenpris suggested adding an addendum to the contract that states once the City passes an ordinance , the ordinance rules will supersede the contract . s Harris amended her motion. MQr ION: x Harris moved , Pidcock seconded , to waive the 60-day City comment period on the application for a Class A gambling license by Acrogymnastics Sports Education Association with the understanding that such license is subject to the future conditions which may be imposed by City ordinance. Winkler was concerned that if the ordinance did not qualify for Acrogymnastics , he would rather not begin the lawful gambling operation. Harris assured him the approval is similar to an early grading permit and saw no problem with granting this license. Motion passed unanimously . Dawson reported St . Mary' s Romanian Orthodox Church has a Class C license at the Legion which was granted this past summer and it wished to expand its license to Class A. MOTION : Harris moved, Pidcock seconded, to waive the 60-day City 6 t I C i ty Council Mint.ites October 24 , 1989 comment period on the application for a Class A gambling license by St . Mary ' s Romanian Orthodox: Church with the understanding that such license is subject to the future conditions which may be imposed by City ordinance . Motion passed unanimously. Peterson commented he trusted the discussion and action of the ?: Council had allayed fears by Legion members . The Council would have preferred to have the whole thing in order before acting on any additional licenses , but a deviation in the process was made because of the respect of the Legion . k IV. CAPITAL IMPROVEMENT PROJECTS Jullie informed the Council that it had been provided with the final report from the Residents Advisory Committee on City Administrative Offices and a tabular summary of the major capital improvement projects to be completed by the City in the future. Jullie stated the Council ' s task is to give staff direction on the priority of issues . Peterson thought the Council should immediately prepare for { the purchase of a site for a city hall . Harris agreed . Tenpas was concerned about the sensitivity of residents in comparison to their feelings in 1987 . He said the high school referendum was in the near future and questioned if it was necessary to spend additional dollars now to build a city hall . Peterson thought a decision about building a► city hall should wait until next year , but the site negotiations should take place as soon as possible . He said a city hall was inevitable and land prices would not decrease. Pidcock was concerned with cost-effectiveness. Harris was supportive of the land purchase and was in favor of spreading the cost over several years . Anderson was in favor of selecting sites for a city hall considering the increase in land values in Eden Prairie . Pidccck wished to use the process the school board used of having a negotiator for acquiring land . Tenpas thought investigating land swaps , if any were available , should be considered . He realized locations may not be ideal , but cost could be effective . Anderson commented that existing buildings should also be looked into . Tenpas questioned the necessity of a negotiator . Peterson thought better prices may be obtained through a negotiator. Jullie informed the Council that hiring an agent on an hourly basis would be prudent and the Council could provide guidelines . 7 z Cite Council Minutes October 24 , 1989 Tenpas asked Jullie what the value of all City parcels were lumped together, exclusive of park land . Jullie said a report was forthcoming . Peterson questioned if Council has enough knowledge of available parcels in the City, and would it be cost-effective to hire an agent . Jullie replied because of the time involved, it would . M0 flti : Pidcock moved, Anderson seconded, to hire a negotiator with the charge of identifying terms of sale for different sites and buildings for the possible building of a city hall in future years and recommendation to be returned. Motion carried unanimously. Harris said dollars needed to be set aside in escrow for a down payment on a building . Jullie stated his goal was to identify cash sources for the land and to present a proposal on financing the building . Peterson would like to see the funding requested included with the budget discussion. Anderson said his priority was to obtain open space land now. Peterson asked Lambert how much of the six items listed in the August 4 , 1989 memo from Jullie was for land acquisition. Lambert replied that it all was for that purpose . Peterson suggested prioritizing the six items and appropriate some funds from the annual budget , but he didn ' t think a commitment could be made beyond that Peterson was not prepared to set dates and make budget decisions_ Harris said these issues could be addressed at a future date . Art Weeks , 14469 Village Woods Drive , agreed with acquiring land. He said priorities have to be set and reevaluated on a periodic basis . V. OTHER BUSI:NESS VI . ADJOURNMENT MOTION: Pidcock moved, seconded by Harris to adJourn the meeting at 9 : 25 P . M. Motion carried unanimously . 8