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HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 03/05/2013 KENT `" "° °" Kent City Council Workshop March 5, 2013 The meeting was called to order at 5:32 p.m. by Council President Higgins. Councilmembers present: Higgins, Thomas, Boyce, Perry, Ralph, and Ranniger. Gamina - Council President Higgins opened the discussion and noted that the Council would allow public comment and have fou'r total speakers; two for and two against the proposal. He noted that Councilmember Thomas brought forth this item to the Council. Councilmember Thomas asked City Attorney Tom Brubaker to give specifics of the gaming industry in Kent. Mr. Brubaker discussed the two casinos and what their business consisted of. He stated that the City annexed two facilities and they are allowed to operate. He discussed the several types of card rooms and what was allowed in the City of Tukwila for Council President Higgins. Mr. Brubaker continued and stated that the City has the option on what types of casinos it can allow. Councilmember Ralph confirmed that the casinos that were annexed in can move anywhere inside of the annexation area only unless the City changes the regulations. If that is done, the City loses control of what is allowed in City limits and the Gambling Commission would regulate it. He noted that the zoning is confusing and the gambling commission stated that any site that is allowed to have a restaurant and bar can have a gambling facility. Council President Higgins noted that all of the house bank social card rooms are located in the same area and wanted to know how that happened, Mr. Brubaker said he wasn't sure. However, he stated from the Gambling Commission's perspective there is no valid restriction that a City can put on them. However, they need to have a certain number of parking lots, exit doors, etc. Mr. Brubaker explained that utilizing the gambling tax could control the number of casinos a City can have. He added that the industry is struggling and the number has reduced from 96 to 58. He stated that the City could create a gambling zone or restrict the facilities from downtown. Mr. Brubaker confirmed that the Gambling Commission preempts the City's authority on gambling facilities. Mr. Hodgson communicated that the Council has the authority to raise the gambling tax rate. Council President Higgins stated that if the Council creates a gambling zone and if someone locates outside the zone, the City would raise the rate. Mr. Brubaker replied that the gambling commission probably wouldn't respect that type of legislation. Mr. Brubaker communicated Tukwila's legislation and the fact that they raise the rates when another casino moves into their City. Councilmember Boyce asked if the rates go back down when a casino closes, and Mr. Brubaker confirmed that he was correct. Councilmember Boyce asked about revenue numbers and Mr. Hodgson stated that a report he has is for 2010, 11, and 1/2 of 2012. He said $418K in 2010, $338 in 2011, $335 in 2012. He added that in 12/2012 it was the lowest amount collected ever. Mr. Hodgson communicated that the City gets the tax revenue but one of them is in the panther lake area, so it's tied up with the mitigation funds. 1 Kent City Council Workshop Minutes February 5, 2013 Councilmember Boyce said he is concerned with the possible number of casinos that can be in Kent. He commented that he saw them everywhere in Montana. Councilmember Thomas noted that they were everywhere and he doesn't want them in Kent. Mr. Brubaker cautioned the Council that if there was a proliferation of house bank social card businesses and the Council said it wasn't working out, the Council could "turn the switch on" and stop the gambling. He noted that if more applications come in the Gambling Commission is in charge of approving them. Councilmember Thomas stated that he wanted to add criteria 1 in the city of Kent. He stated that the City already has one casino and two grandfathered in. He suggested that the revenue be utilized for roads and all local cities allow gambling. He discussed the negative side and stated that Kent has always been described as a family friendly city. He communicated that this has been a difficult issue for him to bring to the Council and wants the Council's input on this issue. He stated he is neither for nor against allowing more gambling in Kent. He noted that there are representatives from the Great American Casino to speak. Council President Higgins summed up discussion as three options: to move forward with an ordinance to bring to the full council, to discuss the options more, or to not move forward with this item. He stated that in the past the Council stated that they would bring this forward. He added that people in Kent gamble and the City is losing revenue. He said he is open to see how the City can craft an ordinance. Councilmember Boyce said he is open to this and would like to have a process in place to hear from the community. Community input is crucial, he said. Councilmember Perry spoke in favor of the Great American Casino and noted that more won't pop up in the Panther Lake area. She added that there was a survey done and 60% said they didn't want the casino. She suggested a survey be taken again. There isn't an outcry to open another casino she stated. She stated that if the City could fit this into a nice box and have control, she would be more in favor of this. Thus, she said she isn't willing to open up areas of the City to casinos. She noted that the future vision isn't compatible with this. If this is about money, why should we limit the number of them, she added. There is no winning balance she said. Councilmember Ralph stated that she is open to continuing discussion and would like to see numbers from the Police concerning this. She said she was impressed with the safety at the Great American Casino when she toured the facility. She said her first concern is safety. Revenue generation is something the Council needs to look at and she has more of an issue with marijuana establishments. She said she would rather open 10 casinos than one marijuana establishment. She wants numbers about crime increases or decreases concerning casinos. Councilmember Ranninger stated she wants more data from the police department and the correlation between gambling and domestic violence issues. Councilmember Thomas stated that crime issues would occur anywhere. 2 Kent City Council Workshop Minutes February 5, 2013 Councilmember Ranniger replied that if the City is doubling the amount of casinos, crime will increase. Councilmember Thomas agreed with limiting the numbers of casinos and in Tukwila the Council cut off all casinos and $2 million in revenue was lost. Then he said the Tukwila residents voted to have them. Councilmember Perry stated that the unknown is if the City allows this, how many more would open. She stated that if there were three more Great American Casinos it would be fine. Councilmember Ralph asked if there was away for the City to stipulate what the City wanted to see as far as security, etc inside of casinos and Mr. Brubaker stated that it is controlled by the Gambling Commission. He added that the only restrictions that could be imposed is parking, etc. All safety and security are required by the Gambling Commission. Chief Thomas stated that he spoke to Tukwila police and Great American Casino and there hasn't been any criminal impact in either. However, he noted that the Auburn police have to go to the Muckleshoot more than the smaller casinos. PUBLIC COMMENT COMMENTS IN FAVOR Dave Fries, President of the Great American Casino, noted that they have been in the City for 10 years and discussed the declining industry. He communicated that most of the industry is made up of Tribal Casinos. He noted that the numbers have gone down and they pay tax on gross receipts and has lost over a million dollars over the past two years. He stated they would like to move to a different facility and add a restaurant. He noted that Des Moines has a 1% tax rate the first year, 4% the second year and is less than Kent's rate. He noted that both recent surveys had a 60% approval rate from the residents of Panther Lake and Tukwila. He added that they have spent over $100K to upgrade their facility. He noted that the economic decline has affected the casino industry. Council President Higgins confirmed with Mr. Fries that opening up the gaming industry in Kent would harm Great American Casino and added that his 105 employees are based in Tukwila. Mr. Hodgson communicated that Great American Casino sent a letter to reduce their gambling tax rate and it will be brought to the Operations Committee on March 19, Councilmember Boyce suggested allowing them to relocate and getting more information. Chief Administrative Officer Hodgson confirmed that if the City allows them to move it, would open the Gambling Commission to "open the switch," and Council could create an ordinance to raise the tax rate if more come into the City. 3 Kent City Council Workshop Minutes February 5, 2013 Councilmember Thomas stated that showing preference to one casino would be very hard to defend in court, Mr. Brubaker agreed. However, he stated that since the industry is hurting there may not be a challenge. He stated that he would work with the Gambling Commission and communicate the City's desire to have them move within the City. Councilmember Thomas inquired if this could be reinvestigated and discussed again when Councilmember Albertson is present. Councilmember Boyce favored having another workshop. Council President Higgins suggested one month out. Discussion continued about the surveys and whether they were concerning opening or closing casinos. Hodgson noted that there should be key points instituted during the retreat concerning where the Council wants to move forward. COMMENTS AGAINST None, Council Retreat. Council President Higgins passed out the Council Retreat agenda and discussed the specifics of the retreat. He noted that it was on Friday from 1-8pm and Saturday from 8 - 3 p.m. at Green River Community College. Councilmember Perry commented that there are some items that will take a significant amount of time and if the healthcare portion could be moved to a workshop. Council President Higgins stated that he didn't have any issues and Hodgson said he would have to confirm if the. speakers could be rearranged. The meeting adjourned at 6:36 p.m. ,,,--'-'Ronald F. M re, MX / City Clerk's 4