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07-79Suspension — i/24/07 RESOLUTION CITY OF SAINT PAUL, MINNESOTA Presented by Council File # 07-79 Green Sheet # 3036420 WHEREAS, the Legislative Hearing Officer recommends that the application for a Gambling Location License by Cathedral Hill Hospitality, doing business as Fabulous Fern's Baz and Grill, 400 Selby Avenue, be approved; THEREFORE, BE IT RESOLVED that the Council of the City of Saint Paul hereby approves this license application. Yeas Nays Absent Benanav � Bostrom � Harris � Helgen � Lantry � Montgomery � Thune � ✓ Adopted by Council: Date �/���p7 Adoption Certified by Council Secretary By: ' Approved by Mayor: e ` Z � 0 7 By: Requested by Department oE � Forzn Approved by City Attorney � Approved by Mayor for Submission to Council � a�-�� � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � co �o��� Contact Person & Phone: Marcia Mcermond 266-8570 Must Be on Council Agen Doc. Type: RESOLUTION E-OOCUment Required: N Document ConWCt: Contact Phone: 24JAN-07 � Assign Number For Routing Order Total # of Signature Pages _(Clip All Locations for Signature) Green Sheet NO: 3036420 0 omcil I owul De armient D'uecfor 2 ' Clerk 3 4 5 Approving [he license application, per the Legislative Hearing Officer, for a Gambling Location License by Cathedral Hill Hospitality, doing business as Fabulous Fem's Baz and Grill, 400 Selby Avenue. aanons: npprove (n) or K Planning Commission CIB Committee Civil Service Commission 1. Has this person/firm ever worked under a contract for this department? Yes_ No 2. Has this person/firm ever been a ciiy employee? Yes No 3. Does this person/firtn possess a skill not normally possessed by any current ciry employee? Yes No Facplain all yes answers on separate sheet and attach to green sheet Initiating Problem, lssues, Opportunity (Who, What, When, Where, Why): Advantages If Approved: Disadvantages If Approved: Disadvanqges If Not Approved: Transaction: Funding Source: Financial Information: (Explain) Ac[ivity Number: CosGRevenue Budgeted: January 24, 2007 1:43 PM Page 1 /i� (�! / MINUTES OF THE LEGISLATIVE HEARING FABLTLOUS FERN's — 400 Selby Avenue 330 City HalUCourthouse, 15 Kellogg Boulevard West Thursday, January 4, 2007 Mazcia Moermond, Legislative Hearing Officer The hearing was called to order at 10:02 a.m. STAFF PRESENT: Christine Rozek and Reid Soley, License, Inspections, Environmental Protection (LIEP) Charles Senkler, owner, appeared. Marcia Moermond explained that this is a Class N license, which means that the neighborhood gets notified and people have the opportunity to voice concerns about the license. If anyone does that, it automatically triggers a hearing. There is one of three possible outcomes to this hearing that she will recommend to the City Council: 1) grant the license without conditions, 2) grant the license with conditions and the applicant would need to be agreeable to these conditions, and 3) refer this matter to an Administrative Law Judge. Reid Soley, LIEP, reported that his,o�ce received an application for Fabulous Ferns for a Gambling Location License to be added to the existing licenses at this location. There are no license conditions proposed. There are no conditions on the other licenses for Fern's. LIEP is recommending approval of this license. Christine Rozek, LIEP, reported that this application aitows Mr. Senkler to have a charitable organization come in. This also allows the charity to have a pull tab booth, run a paddle wheel in the bar, and sell tip boards. There is a pending application for the charitable organization. Unfortunately, the notices for that heazing went out with a different date on them. That norification expiration date is until January 12. Ms. Moermond asked for clarification on paddle wheels and tip boazds. Ms. Rozek responded the paddle wheel spins and has numbers on it. This is legal in the State of Minnesota for charitable organizations to run. Mr. Senkler responded they aze planning on initia]ly doing a pull tab booth or maybe doing a meat raffle in the summer. Mr. Senkler stated that he built Fabulous Fem's and opened it in 1981. At that time, the neighborhood had a lot of crime, drug dealers, muggers, and prostitutes. It had ended up at the Port Authority and Mr. Senkler brought it from them. He thought the neighborhood had potenrial. They rebuilt the restaurant and opened it up. Mr. Senkler has lived in the neighborhood for 26 yeazs. He has been past president ofthe Selby Area Business Association far two terms for a total of four yeazs. He has been on the City of Saint Paul Small Business Boazd for Mayor Coleman. Fern's has donated to about 81 different charities. Since the Saint Paul smoking ban, they have cut back on a lot of the charitable confributions. For the 15 years prior to that, they were active in the neighborhood. They did fundraisers to buy the police C��- 79 LEGISLATIVE HEARING MINt7TES FOR FABULOUS FERN'S Page 2 officers bulletproof vests. They supported the women's halfway house on Grand Avenue. They recently supported the YWCA FamiIies in Transition. They have been part of the neighborhood for 16 yeazs, and a big part of the renaissance on Selby Avenue is because of them. They would not do anythiug to jeopazdize that neighborhood and business. Mr. Senkler has another location in Oakdale, and they do pull tabs tk�ere. The puli tab people donate money from the booth to activities in the Oakdale azea, This is to make up some of the income they have lost, to get money available for some of the charities they have supported in the past. The money from the pull tab activiry has to be spent in the neighborhood or the Saint Paut area. There are plenty of places to put it in the neighborhood. The pull tab activity is harmless. They plan to put the booth in the bar azea. It is a dead space and not in the middle of the room. It is a pretty innocent activity. He lives a half a block from the restaurant. He knows the neighborhood, knows everyone there because he has lived in the neighborhood. Ken Rockler, lives at 454 Ashland Avenue, appeared and stated he is on the board of Community Charities. They aze low in their operating costs. They have donated over $4 million in donations. There is an automatic I 0% that goes to Saint Paul. CommuniTy Charities has a rule that 85% of the net proceeds must stay in the community. NIr. Rockler heazd there was a meeting earlier about the lack of charitable giving that has resulted because of the smoking ban. This license will help activities in Saint Paul. He has been a customer of Fern's, and he has seen people there from legislators to business leaders. Mr. Senkler would not do anything to endanger that reputation. Because of the operation of the charity, Lora Norstrem will be in charge of the site. Lora Norstrem, Assisting Gambling Manager for Community Charities, appeazed and stated her duties aze the mid section of the state. She does all the supervising and oversees the operations of the sites in Saint Paul of which there is one other. Ms. Moermond asked the purpose of the chazities. Ms. Norstrem responded they do Toys for Tots, food shelves. They do marches, and they get requests for different organizations in that community. Someone may want money for playground equipment. They support Relay for Life, a breast cancer organization. Mr. Senkler stated he would Iike to get money out of the pull tabs and put money back into the neighborhoods. Eight-Five percent of the gambling money stays in the community. They aze anticipating raising $12,000 net for breast cancer tIus year. There tends fo be a heavy concentration in the local areas for youth programs. They are looking at doing things for veterans. Ms. Moermond stated she received letters from the following: David Cost, 423 Laurel Avenue; Henry L. Janney, 177 Arundel Street; Richazd McDermott, 481 Laurel Avenue; Kelly Weinberg, 459 Selby Avenue. All of the ]etters seem to have sometrung to do with the introduction of gambling into the area rather than specific concerns about Fern's and its location. Henry Janney, 1043 Grand Avenue, appeared and stated he has been a patron of Pern's over the years. He is curious about the dates because he thought he had until the 12 or 16�' to raise objections. He thought that was for the pull tabs as well. He asked for clarification. Ms. C7- 7� LEGISLATIVE HEARING MINiITES FOR FABULOUS FERN'S Page 3 Moermond explained that there aze a couple of kinds of licenses that need to be issued. One is the gambling location license, which is the one they aze talking about this morning. The other is the charitable organization. What they aze going to need to do is give people a chance to continue to comment and Ms. Moermond will continue this hearing so those people can voice their concems as well. Mr. Janney continued: He made a real estate investment in a house. About a month ago, a friend was mugged in the neighborhood. On the way over here, he saw the first graffiti in the neighborhood at the intersection of Selby and Da1e. He can't help but associate gambling with the potential decline in the neighborhood. He does not have a problem with gambling. It has its place and time, but he does not want people combining liquor consumption and gambling in the neighborhood. He supports Fern's and hopes to in the future. Kelly Weinberg could not be here today because of last minute notification of this meeting. She has two children and does not want gambling in the neighborhood. Mr. Senkler stated in 1991 the area was a bad place to live and Number 1 on police crime grids for the City. Fern's constantly maintains the area. Mr. Senkler has not seen the graffiti. He worked at Fern's last night. There aze panhandlers there constantly. There have been more panhandlers this smiuner than he has seen in the last ten yeazs. The puil tab activity is so soft. He is committed to the neighborhood as any of the residents have been. Graffiti and muggings are not going to be accelerated by people playing pull tabs in the area. It is more accelerated by people standing outside smoking. More problems have happened in the City in the last six months from people being out on Yhe street and the police do not have the manpower to control it. Mr. Senkler, his son, bartender, and the other managers keep an eye on the parking lot. If there are suspicious people, he is on the phone or they confront people themselves. They think they are good neighbors. They do not think they have the impact on things in the neighborhood. Mr. Janney stated Fem's has a great patio. Now it has become a smoking area. It is enclosed completely with clear plastic sheets and lit up brightly. Last night, it started to feel like a casino because it is bright. He has heard some people speak of the smell of smoke, although he cannot smell it. Also, there aze people outside because of smoking. Now, people will go there because they can have a smoke outdoors and be protected from the elements. Institutionalized gambling is gambling. It represents a step back for the neighborhood. He asked is the percentage negotiated between the individuals ruruiing the business. Mr. Rockler responded that there is a net coming from the sale of pull tabs. He is not sure what the ideal net might be. (Mr. Rockler explained how the percentags works.) Their organization feels that 85% of the money is spent in the area. He had a restaurant that closed down 90 days ago. He learned that people are going to gamble anyhow whether they do it through the PowerBall, gas station, grocery store. It is hud trying to legislate morality on this situation. He does not think there will be a problem with anything bad with the neighborhood. Regarding the potential increase in nuisance activity that would manifest itself in the exterior that would affect the neighbors, Ms. Moermond is not seeing that connection. The larger socio- economic things going on in Saint Paul have more to do with the crime situation and graffiti than the existence of a gambling license or liquar license in this location. This is a legal license in D 7-7 % LEGISLATIVE HEARING MINiJTES FOR FABULOUS FERN'S Page 4 this location and operation. There is not a condition that could address the concerns Mr. Janney brought up, although his concerns are Iegitimate. Ms. Moermond recommends the Gambling Locarion License be issued with no conditions. The Gambling Manager license is still coming forward for the charitable organization. The deadline is January 12. Ms. Moermond will lay this matter over. Ms. Rozek added that the State issues these licenses. It would be best to get it to the State by the first of the month. The hearing was adjoumed at 10:45 am. rrn 0 i�� � MINUTES OF THE LEGISLATNE HEARING COMMLTNITY CI�ARITIES OF MINNESOTA, LOCATED AT 400 SELBY Suite 300 City Hall, IS Kellogg Boulevard West Thursday, January 18, 2007 Mazcia Moermond, Legislative Hearing Officer The hearing was called to order at 10:02 a.m. STAFF PRESENT: Reid Soley, License, Inspections, Environmental Protection (LIEP) Ms. Moermond stated this is a follow-up to a Legislative Hearing from two weeks ago. The only letter of objection is from David Cost. Reid Soley reported that he is a licensed inspector. This is an application for a State of Minnesota Gambling Control Boazd Premise Permit which will allow the applicant to operate games of chance at benefit charities under the Gambling Location License that has been applied for at Fabulous Fern's. The organization is calIed Community Charities of Minnesota. The Gambling Manager for them is Mark Hea1y. LIEP recommends approval with no conditions. Ms. Moermond responded that it seems that the letter of objection is more retated to a position against gambling instead of a position about side effects that this Gambling Location License would generate. Mr. Cost is not here. Ms. Moermond asked if Mr. Healy had any comments. Mark Healy appeared and stated he read the objection a couple of times. If the objection is against gambling in general, then that is a different issue than an organization applying for a gambling license. He did not see an objection against his organization. Ms. Moermond responded that she did not either. Mr. Healy stated that pull tabs are a11 over the City of Saint Paul. He does not think that property values are being decreased or it brings an unwanted element or anything like that. Ms. Moermond recommends approval of the license application citing two factors: 1) LIEP's recommendation is for approval, 2) she cannot see adding any conditions based on the concerns articulated in the letter. The hearing was adjourned at 10:08 a.m. rrn