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<br />Interim City Administrator Nelson advised one issue is the fact that 75% of Lawful Purpose <br />Expenditures needs to be spent within the trade area. In reviewing reports it is clear there is <br />variety in terms of how these numbers are reported and what is being spent in the trade area. In <br />the future there should be a better tab kept to ensure that those dollars are coming back to serve <br />the community they are intended to. Ms. Nelson stated representatives from the Ramsey Lions <br />and Climb Theater are present. <br /> <br />Finance Officer Lund reviewed the charitable gambling State Statute requirements with Council. <br /> <br />Council discussed the following with staff: reduction of the defined trade area; percentage of <br />net proceeds to be collected to the City's Lawful Gambling Fund; and the likelihood of an <br />organization headquartered in Ramsey contributing funds to Ramsey. <br /> <br />Mr. Tom Kujawa, Gambling Manager for the Ramsey Lions, stated the Ramsey Lions have no <br />problem with an increase to 5% for the City's Lawful Gambling Fund, although they like to see <br />it lower so they have more money to give to other things. Regarding the percentage of net <br />proceeds the Ramsey Lions gives to the City of Ramsey, he does not believe they have a <br />problem making the 75% requirement, especially in the trade area where it is likely closer to <br />90%. <br /> <br />Councilmember Dehen questioned what percentage of the Ramsey Lions' proceeds goes to the <br />City of Ramsey specifically. <br /> <br />Mr. Kujawa replied likely 70 to 75% of the proceeds go to the City of Ramsey. <br /> <br />Ms. Peg Wetley, CEO and Founder of Climb Theater, stated Climb Theater holds premise <br />permits to operate charitable gambling at The Outpost and Diamonds. The proceeds they <br />receive from this allows them to provide their plays in classes within Ramsey's trade area and in <br />schools throughout the State of Minnesota. Ms. Wetley provided an overview of the services <br />offered by Climb Theater to the Ramsey trade area and to a total of 950 schools in the State of <br />Minnesota. Ms. Wetley stated the total contribution by Climb Theater to the City of Ramsey <br />between September 2006 and August 2007 will be $47,000. She requested that Ramsey keep <br />their City open or grandfather in Climb Theater so they can continue their work, that the City <br />accept the $47,000 contribution, and that the City consider a trade area requirement of no more <br />than 40%. <br /> <br />Acting Mayor Strommen requested clarification on the direction requested from staff. <br /> <br />Interim City Administrator Nelson stated staff is looking for direction in the following three <br />areas: <br />1. A requirement that the physical site of the organization be located in the City. <br />2. A reduction in the defined trade area. <br /> <br />Finance Officer Lund advised State Statute specifically says there needs to be <br />expenditure within the trade area; 10% is the maximum amount the City is allowed to <br />collect up to. <br /> <br />City Council Work Session I April 3, 2007 <br />Page 10 or 14 <br />