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CASE # / REVIEW OF REQUEST FROM ANOKA AREA ICE ARENA ASSOCIATION TO RECEIVE A VARIANCE FROM LEGALLY REQUIRED CONTRIBUTIONS TO - THE CITY OF RAMSEY FROM LAWFUL GAMBLING NET PROFITS By: Jessie L. Hart, Finance Officer Background: At the regular City Council meeting of November 9, 1993, Mr. John Lichter, a representative of the Anoka Area Ice Arena Association, was present during the Citizen Input portion of the meeting. Mr. Lichter presented the attached financial and general information regarding the Associations' lawful gambling activities. Thc reason for his presentation was to request that the City Council review the possibility of issuing a variance to the Anoka Area Ice Arena Association so that they would not have to contribute any percentage of their net profits to the City and to refund all contributions that had been paid to the City since the Association began operations at JR's Saloon. The Anoka Area Ice Arena Association has contributed $3,145.34 which includes all of 1992 and through September of 1993. Mr. Lichter stated that this required contribution is mating a hardship for the Association and that it is having difficulties meeting mortgage and other expenses of the arena. The Association feels that it is already providing the type of service that the ordinance designates as lawful expenditures that the City is allowed to expend the contributions for - namely capital expenditures in the form of mortgage payments on the arena itself. While the revisions to the current ordinance are being explored and ruled on by the State, Mr. Lichter stated that the Association would request a variance from the requirements, no matter what changes are made to the calculation or percentage of required contributions. He indicated that the Association would most likely assess Ramsey residents participating in AAIA programs to cover the burden of the contributions or pursue municipal underwriting of its indebtedness. Staff Recommendation: Staffs position on this issue is not to consider any type of variance from the ordinance as it currently exists or as it may exist in the furore. If we were to exempt even one organization from the requirements, we would be faced with very similar requests and justifications from each of the other organizations operating in the City. Staff recommends that revisions to the ordinance continue to be reviewed and that all organizations wishing to operate lawful gambling sites in the City comply with the requirements. Committee Action: None required - base on discussion. Reviewed By: Finance Officer City Administrator FC: 11/23/93 /