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06-87�o�n��� F�,e # ob -� Green Sheet # 3029432 Presented by Referred To Committee Date WI IEREAS, the Legislative Hearing Officer recommends that license application (ID # 20050004224) for a Gambling Manager License by Mary Van Cura on behalf of St. Bernazd's Catholic Church, location of license at 1013 Front Avenue, be approved; THEREFORE, BE IT RESOLVED that the Council of the City of Saint Paui hereby approves this Gambling Manager License. Yeas Nays Absent Benanav ,/ Bostrom ,/ Harris � Helgen ,/ Lantry ,/ Montgomery � Thune ✓ � a Adopted by Council: Date //�-,-�uGA dS -'� Adoption Certified b ouncil — retary BY� //.i/ ��cZ�i�.�c�- Approved�by NJaqo�Date _ t �30 �U �, By: `� RESOLUTION CITY OF SAINT PAUL, MINNESOTA �$ Requested by Department o£ � Form Approved by City Attorney � Approved by Mayor for Submission to Council � � Green Sheet Green Sheet Green Sheet Green Sheet G�een Sheet Green Sheet � � f\L .�f� Deparhnentlofficelcouncii: Date Initiated: v �+ • - co -�W�;� ,��-� Green Sheet NO: 3029432 Cor�ct Person & Phone• Deoartrnent Sent To Person InitiaUDate Marcia Mcertnond � 0 uocil 266-856� Assign 1 uncil De artmentDirector Must Be on Couneil Agenda by (Date): Number Z lerk For Routing 3 Order 4 5 Toql # of SignaWre Pages _(Clip All Locations for Signature) Action Requested: Approving the license application, per the Legislative Hearing Officer, for a Gambling Manager License by Mary Van Cura on behalf of St. Bemard's Catholic Church, location of license at 1013 Front Avenue. Recommendations: Approve (A) or Reject (R): Personal Service Contrects Must Answer the Following Questions: Planning Commission 1. Has this person/firtn ever worked under a contrect for this departmenY? CIB Committee Yes No Civil Service Commission 2. Has this personffirm ever been a city employee? Yes No 3. Does this personffirm possess a skill not normaliy possessed by any current city employee? Yes No Explain all yes answers on separate sheet and attach to green sheet Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): � AdvantapesffApproved: s � .. DisadvanWStes If Approved: � JAN 1 � 2005 � �� DisadvanWges If Not Approved: - .;,� ' ., ,„� _ �_ y ";, g „ , , _ „_ �fi ,. _ E � Total Amount of CasURevenue Budgeted: Transaction: - Fundin5� Source: Activity Number: Financial Information: (Explain) �.-�� \ � 6� �7 MINUTES OF THE LEGISLATIVE HEARING ST. BERNARD'S CATHOLIC Ci-IURCH-197 Geranium Avenue West Thursday, January 5, 2006 Room 330 City HalUCourthouse, 15 Kellogg Boulevazd West Mazcia Moermond, Legislative Hearing Officer The hearing was called to order at ll:OS a.m. STAFF PRESENT: Christine Rozek, License, Inspections, Environmental Protection (LIEP) Mazcia Moermond explained that this is a hearing to heaz objections to the license application for St. Bemazd's Catholic Church. This is a Class N license; therefore, the community was notified about this license application. One letter was received with concerns about the issuance of the license, which triggered tkris hearing. There is one of three possible outcomes from the heazing this moming: I) issue the license without conditions, 2) issue the license with conditions, or 3) refer this license application to an Administrative Law Judge (ALJ). The ALJ process would be the outcome if there is no way that this situation could be workable or the applicant is not agreeable to conditions that Ms. Moermond thinks are necessary. Christine Rozek reported this is an application for Gambling Manager License. They are essentially looking at the ability of a church to have charitable gambling at the Half Time Lounge at 1013 Front Avenue. LIEP is recommending approval. Charitable gambling is . authorized by the State of Minnesota. The Church of St. Bernards has been in business for a number of years operating charitable gambiing around the City of Saint Paul. The following appeazed: Father Michael F. Anderson, Pastor of St. Bernard's Church, and Mary Elizabeth Van Cura, applicant and Gambling Manager at St. Bernard's. Father Anderson stated that the gambling license and gambling business has been there for the ten years that he has been at St. Bernard's and probably since about 1990. They have operated three sites through those times. They aze fairly well regazded by the City. When they have audits, they always seem to keep everything in order. They only have two sites open right now and are seeking to open a third site. Ms. Moermond asked about their other two sites. Father Anderson responded Tin Cups on Rice Street and Lonetti's on Rice Street. They were at another place that changed names, and it has become a place that they do not want to be associated with. David A. Ross, 992 Hatch Avenue, appeazed and stated he opposes the expansion of revenues for gambling. For every dollar generated in revenue, two to three dollars are spent cleaning up the cost. As a homeowner in the area, he looked at over 110 houses before he bought this property. He feels the area has tremendous potential. Gambling is not going to help the pxoperry values. He opposes gambling in any form. William Bronn, 2609 Bittersweet Lane, Maplewood, appeared and stated he is not a resident of the St. Bemard azea and learned about this through Mr. Ross in a casuai conversation. Mr. Bronn is a lifelong member of the azchdiocese and has had the advantages of Catholic schoo] and college and graduated in the St. Paul Seminary. It is this education that has him here today. It is his desire to work in social justice areas. He is still warm from last spring's meeting with the Legislature when Governar Pawienty was trying to create state authorized casino gambling in the o� �s LEGISLATIVE HEARING MINUTES, ST. BERNARD'S CATHOLIC CHURCH Page 2 Twin Ciries. They did reseazch and found that the immense social costs swamp the social benefits. The archdiocese was in the forefront of this effort. They supported this effort through the 3RLC (Joirn Religious I,egisiative Coalition) of which they aze a member. They further support this with the offer for social justice. Mr. Bronn was given a chapter from a book entitled Doing Faith Justice and the author says that replacing these questionable institutions is the first step. The most painfiil is unmasking the realiries lurking behind the legitimized structure or institution. This unxnasking is an unportant task, especially the ease with which religious people legitimize injustice. Mr. Bronn went on to say that two to three percent of Minnesota adults aze problem gamblers. Plus, one percent is pathological, which is defined by committing crimes related to the gambling. Seven percent of Minnesota teenagers may be addicted to gambling. None were 30 years ago. One of the factors leading to problem gambling is the exposure of gambling under circuxnstances where it is valued. That is where Mr. Bronn is worried. Children become knowledgeable that the school is running there because of gambling money to support it. On the Minnesota Lottery website, they will give the 97 treatment centers recognized by the lottery commission for treatment of gambling problems. There is public assistance brought about by families getting into worst poverry. There are medical care costs and an increase in insurance costs. The Minnesota Institute of Health is involved in all of this. They estimate that the cost born by the public for the problem from pathological gamblers is $625 million to $875 million. Mr. Bronn stated the big three gambling methods in Minnesota are lottery, pull tabs, and Indian casinos. More people play the lottery more than anything else. In 1997, $369 million was wagered, pull tabs were $13 billion, Indian Casinos were $2 billion. Pull tabs are a big money maker. They induce people to gamble more and problematically. He sees St. Bernard's on this slippery slope. Mr. Bronn continued: It has been said that the people with money can afford ethics and morality. The poor have to cross that line to make it. Society has failed the poor by supporting, promoting, or apathetically allowing gambling to come into Minnesota. The Catholic azchdiocese in Saint Paul has failed St. Bernazd's by not making it financially possible since 1988 to keep the schools open without gambling. Worse yet, they have been cut off by the education funds for the school. The money has to be out there. Reverend Timothy W. Held, Pastor of Warrendale Presbyterian Church, 1040 Como Avenue, appeazed and stated the congregation has been in ministry for 116 years. They are neighbors to the Half Time Rec. When he learned of the proposed license, he took it to the elders of the church and the governing boazd. They passed a resolution. (Mr. Held read the resolution, which is attached.) Ms. Moermond asked has there been a pull tab booth at the Half Time Rec. Ms. Rozek responded this is a new application. There is no history of a pull tab booth there. Ms. Moermond stated she is not aware of studies of the physical impact on surrounding land uses. They can anticipate that liquor and entertainment licenses will have parking concerns associated with it. She asked aze there pieces of information about the impact of a gambling license. Ms. Rozek responded there is not to her knowledge. She has not heard a vast number of complaints from neighbors near bazs that recently got pull tab booths that there has been an increase in traffic. Of course, the baz owners hope there will be increased business, but people � �o' �S, LEGISLATIVE HEARING MINUTES, ST. BERNARD'S CATHOLIC CHURCH Page 3 tend to stay longer because they aze buying pull tabs. This will be an interesting dynamic in the new yeaz with the smoking ban. This baz owner coutd be thinking he will lose smoking in his baz, so it is tune to get charitable gambling to maintain some of the business. Ms. Moermond stated it seems a lot of what she heazs is about the Catholic Church and the azchdiocese in general and St. Bemazd's specifically. She cannot hold up St. Bernard's application if it is consistent with all the city codes. If the city codes were to be changed, there is also a pazallel change at the State level. Ms. Rozek stated the actual license is issued by the State of Minnesota. Her office does enforcement at the city level and the license is actually issued and authorized at the state level. Yes, the state authorizes charitable gambling, as does the City of Saint Paul. If the City of Saint Paul decided to not issue charitable gambling licenses, asked Ms. Moertnond, would that have an impact on St. Bernard's ability to get such a license. Ms. Rozek responded certainly. St. Bernard's has a long history in Saint Paul of operating charitable gambling. There would be no reason for her office to not recommend approval for this license. Ms. Moermond stated that there is no doubt about the chazacter of the licensed establishment, she has heazd no bad reports, and there aze no complaints on the file. In terms of social justice issues and activism, Councilmembers could change the code to not ailow charitable gambling. T'hat would eliminate the activity in Saint Paul, much the same as smoking. There may be some Councilmembers interested in changing the policy. That is something people need to explore on their own. There aze legitimate concerns, but Ms. Moermond has a set of laws that says this license is okay. She could tell St. Bernazds she does not think they should have this license, and then it would take them a short time to get it after that. There is no reason to justify holding up the license by city code or state law. Mr. Ross read from Page 38 in the Neighborhood Nuisance Handbook a public nuisance can be a place where gambling takes place. Ms. Moermond responded that would be illegal gambling. The police issue citations for this. Ms. Moermond stated she is making a recommendation to the City Council. They can go with her recommendation or choose their own course of action. Given the way the city code is set up, it is likely the Councii would want to issue the license. They aze not talking about the license holder or Half Time Rec being bad actors in the community. If the Council decided to hold it up, it would go to an Administrative Law Judge if the City Attorney would think we would prosecute it at that level. Based on the concerns, there aze no conditions that could be placed on the license which would change the concerns. Mr. Held stated that parking is an issue. Half Time Rec does not have a big parking area. The parking is in the neighborhood azound them, and there are neighbors who would not appreciate the extra cazs. Ms. Rozek responded that the building has been there for many years. It is grandfathered in with no pazking. Ms. Moermond added that they cannot tell this business to compiy with parking requirements that came forwazd after they became an institution. This is an issue you get with a built city. LEGISLATIVE HEARING MINUTES, ST. BERNARD'S CATHOLIC CHURCH Ms. Moermond recommends approval of the license application without conditions. Councilmember Helgen is the one to taik to about this as he would be the sponsor of the resolution. The hearing was adjourned at 11:50 a.m. C�(o �tS, Page 4 �,n