ACTION REQUESTED:
Title
Communication from the City Manager and the Corporation Counsel with a Request to ADOPT an ORDINANCE Amending CHAPTER 3 for a TEMPORARY MORATORIUM of Site Approval of Establishments Whose Primary Purpose is to Operate as a VIDEO GAMBLING CAFE.
Body
BACKGROUND:
At its meeting on August 26, 2014, the City Council held a policy discussion on the options available to address the proliferation of video gambling cafes. At the meeting, the City Council was presented with the option to pass a temporary moratorium on granting site approval for the retail sale of alcohol to an establishment that for all intent and purposes, would be just a gambling establishment with no interest in operating as a tavern or a restaurant. The City Council was presented with other options including limiting the number of site approvals for retail sale of alcohol for video gambling cafes in each council districts, setting a minimum amount of sales be from non-gambling items such as food, drinks and general merchandise, and increasing the license fee to $10,000 for video gambling cafes.
Although the City Council discussed the issue of video gaming cafes and the options, there was no general consensus in support of one particular option and more time is needed to study other available options. The temporary moratorium will allow staff to gather further information and determine other solutions such as distance restrictions similar to what was used to address the proliferation of title loan businesses.
This temporary moratorium will not impact current liquor licensed establishments that allow for on-site consumption, but not have video gaming machines from seeking license from both the State and the City to operate video gaming machines. In addition, the moratorium applies only to applicants whose primary purpose is to operate as a video gambling cafes and will not apply to businesses that will operate as a restaurant or a tavern.
FINANCIAL IMPACT: If the City Council adopts the temporary moratorium in Option 1, the City will not realize license fees or its portion of the tax from the video gaming revenue from the video gambling cafes during the moratorium period.
NEIGHBORHOOD CONCERNS: As part of the discussion, City staff can gather neighborhood concerns regarding these establishments.
IMPACT IF APPROVED: Will set a moratorium on liquor site approval for establishments whose primary business is to operate a video gambling café.
IMPACT IF DENIED: The Liquor Commission will continue to review the proposed site applications submitted by establishments whose primary business is gambling on a case-by-case basis without guidelines.
ALTERNATIVES: Not applicable.
EEO CERTIFICATION NUMBER: Not applicable.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Not applicable.
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Not applicable.
DEPARTMENT: Legal