Agenda - Council - 03/10/2009 - Laserfiche WebLink

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LG215 Lease for Lawful Gambling Activity 5/08 Page 2 of 2 Lease Term The term of this lease agreement will be concurrent with the premises permit issued by the Gambling Control Board (Board). Management of Gambling Prohibited The owner of the premises or the lessor will not manage the conduct of gambling at the premises. Participation as Players Prohibited The lessor, the lessor's immediate family, and any agents or gambling employees of the lessor will not participate as players in the conduct of lawful gambling on the premises. EXCEPTION: The lessor's immediate family and lessor's employees may participate in bar bingo if they are not involved in the sale or operation of bar bingo. Illegal Gambling • The lessor is aware of the prohibition against illegal gamblinc in Minnesota Statutes 609.75, and the penalties for illegal gambling violations in Minnesota Rules 7865.0220, Subpart 3. In addition, the Board may authorize the organization to withhold rent for a period of up to 90 days if the Board determines that illegal gambling occurred on the premises and that the lessor or its employees participated in the illegal gambling or knew of the gambling and did not take prompt action to stop the gambling. Continued tenancy of the organization is authorized without payment of rent during the time period determined by the Board for violations of this . provision, as authorized by Minnesota Statutes 349.18, Subdivision 1(a): • To the best of the lessor's knowledge, the lessor affirms that any and all games or devices located on the premises are not being used, and are not capable of being used, in a manner that violates the prohibitions against illegal gambling in Minnesota Statutes 609.75. • Notwithstanding Minnesota Rules 7865.0220, Subpart 3, an organization must continue making rent payments under the terms of this lease, if the organization or its agents are found to be solely responsible for any illegal gambling, conducted at this site that is prohibited by Minnesota Rules 7861.0260, Subpart 1, item H or Minnesota Statutes 609.75, unless the organization's agents responsible for the illegal gambling activity are also agents or employees of the lessor. • The -lessor must not modify or terminate the lease in whole or in part because the organization reported, to a state or loca law enforcement authority or the Board, the conduct of illegal gambling activity at this site in which the organization did not Other Prohibitions • The lessor will not impose restrictions on the organization with respect to providers (distributors) of gambling - related equipment and services or in the use of net profits for lawful purposes. • The lessor, any person residing in the same household as the lessor, the lessor's immediate family, and any agents or employees of the lessor will not require the organization to perform any action that would violate statute or rule. The lessor must not modify or terminate this lease in whole or in part due to the lessor's violation of this provision. If there is a dispute as to whether a violation occurred, the lease will remain in effect pending a final determination by the Compliance Review Group (CRG) of the Gambling Control Board. The lessor agrees to arbitration when a violation of this provision is alleged. The arbitrator shall be the CRG. Access to permitted premises The Board and its agents, the commissioners of revenue and public safety and their agents, and law enforcement personnel have access the permitted premises at any reasonable time during the business hours of the lessor. The organization has access to the permitted premises during any time reasonable and when necessary for the conduct of lawful gambling on the premises. Lessor records The lessor must maintain a record of all money received from the organization, and make the record available to the Board and its agents, and the commissioners of revenue and public safety and their agents upon demand. The record must be maintained for 3 -1/2 years. Rent ail- inclusive Amounts paid as rent by the organization to the lessor are all- inclusive. No other services or expenses provided or contracted by the lessor ma be paid by the organization, including but not limited to trash removal, janitorial and cleaning services, snow removal, lawn services, electricity, heat, security, security monitoring, storage, other utilities or services, and in the case of bar operations, cash shortages. Any other expenditures made by an organization that is related to a leased premises must be approved by the director of the Gambling Control Board. Rent payments may not be made to an individual. Changes in lease If the lease is amended with no change in ownership, the organization will submit the amended lease to the Board at least 10 days before the effective date of the change. If a change in ownership occurs, the organization will submit an amended lease to the Board within 10 days after the new lessor has assumed ownership. Acknowledgment of Lease Terms I affirm that this lease is the total and only agreement between the lessor and the organization, and that all obligations and agreements are contained in or attached to this lease and are subject to the approval of the director of the Gambling Control Board. ther terms L r I Questions? Contact the Licensing Section, Gambling Control Board, at 651 - 639 -4000. This publication will be made available in alternative format (i.e. large print, Braille) upon request. The information requested on this form will become public information when received by the Board, and used to determine your compliance with Minnesota statutes and rules governing lawful gambling activities. ReSe Foie WIN 7� -51-