ACTION REQUESTED:
Title
Communication from the City Manager and the Corporation Counsel with a Request for a FIRST READING Review of an ORDINANCE Amending Section 3-92 of CHAPTER 3 of the CODE of the City of Peoria, Requiring Newly Site Approved Class A, B, B-1, G-A, or G-B Liquor Licensee to Have a MINIMUM AVERAGE MONTHLY SALE of at Least $20,000 from the Sale of Food, Alcoholic or Non-Alcoholic Beverages, and/or General Merchandise For One Year Prior to Adding Video Gaming Terminals.
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BACKGROUND:
The topic of how to address the proliferation and implications of liquor licensed establishments adding video gaming terminals were discussed at the City Council’s policy session and subsequent meetings. There were various options presented to the City Council to address some of these concerns regarding video gambling cafés that operate primarily as a gambling establishment with the sale of alcohol as a necessary accessory to obtain a video gaming license. These options included minimum monthly non-gambling related sales requirement of $10,000, distance restriction from other already established liquor licensed establishments with video gaming terminals, and restriction on the number of video gambling liquor establishments in each City Council districts. The City Council did not approve any one of the options.
This latest proposal before the City Council for its first reading discussion amends Chapter 3 of the City Code, specifically Section 3-92. The proposal sets a one-year period in which a tavern or a restaurant under Class “A” (tavern), “B” (restaurant with at least 50% sale of food), “B-1” (restaurant with at least 25% sale of food),“G-A” (tavern with beer and wine only), or “G-B” (restaurant with beer and wine only) must operate as a liquor licensed establishment with an average monthly sales amount of at least $20,000 from the sale of food, alcoholic or non-alcoholic beverages, and/or general merchandise, prior to adding video gaming terminals. This restriction will apply only to newly site approved taverns and restaurants.
The proposed amount of $20,000 was obtained from reviewing the monthly gross sale of alcohol reported by currently licensed taverns and restaurants.
FINANCIAL IMPACT: The City will not realize its portion of the tax from the video gaming revenue for one year after site approval of a Class A, B, B-1, G-A, or G-B establishment and from any establishment that is eligible for video gaming terminals and from certain newly site approved establishments.
NEIGHBORHOOD CONCERNS: Not applicable.
IMPACT IF APPROVED: Will set a minimum operation standards for one year before a liquor licensed establishment can add video gambling machines and will place additional restrictions for a newly site approved establishment from adding the component of video gaming terminals
IMPACT IF DENIED: Will not have a minimum standard in which a business must operate as a liquor establishment prior to adding video gaming terminals.
ALTERNATIVES: As directed by City Council.
EEO CERTIFICATION NUMBER: Not applicable.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Keep taxes and fees competitive.
DEPARTMENT: Legal