04. LARA Gambling Premises Permit
Staff Report
Date of Meeting: May 1, 2024
To: City Council
From: Brenda Eklund, City Clerk
Re: Chisago Lakes Area Recreation Association (dba L.A.R.A.) Application for Lawful Gambling
Premises Permit
Background:
Cory Lindgren, Gambling Manager for the Chisago Lakes Area Recreation Association (L.A.R.A.),
has applied for a Lawful Gambling Premises Permit for the organization to conduct charitable
gambling at The Ozark Tavern, 21050 Ozark Avenue. The application was received on April 25,
2024.
Chisago Lakes Area Recreation Association provides the opportunity for area school-age
children to experience affordable, supervised sports activities. It is a volunteer-based, nonprofit
organization. All proceeds go directly to sports programs for kids. Expenses include equipment,
umpires, referees, field maintenance, new field construction and insurance.
Issue:
Should the Council approve a Lawful Gambling Premises Permit for the Chisago Lakes Area
Recreation Association to conduct charitable gambling at The Ozark Tavern, 21050 Ozark
Avenue?
Proposal Details:
City of Scandia Code of Ordinances, Chapter 130: Gambling Regulations governs lawful
gambling within the city. The purpose of the ordinance is to “regulate lawful gambling within
the City, to prevent its commercialization, to ensure the integrity of operations, and to provide
for the use of the net profits only for lawful purposes.” The ordinance establishes the
qualifications that must be met by organizations and premises for gambling. L.A.R.A. plans to
conduct electronic pull-tabs, paper pull-tabs, bar bingo, tipboards, and paddlewheel activities.
The organization has signed a lease agreement with the owner of The Ozark Tavern. Form
LG215, Lease for Lawful Gambling Activity, is attached to this report. The organization currently
conducts charitable gambling at the Northern Tap and Grill in Chisago City.
Only certain organizations are authorized to conduct lawful gambling in Scandia. They must be
licensed by the State and also meet at least one of five criteria in the ordinance (Section
130.07). L.A.R.A. is licensed by the MN Gambling Board and is currently in good standing.
L.A.R.A. does not meet criteria (B) through (E), but appears to meet criteria (A)—at least 15
members that are residents of Scandia. The organization sponsors athletic programs for
children attending schools in the Chisago Lakes (ISD 2144) district, which includes area in the
northwest portion of Scandia. According to their bylaws, a parent who enrolls their child in one
of their sponsored programs is considered to be a member of the organization. L.A.R.A.
provided that there are approximately 30 Scandia families participating in their programs.
Section 130.08 of the ordinance specifies the qualifications of the personnel/gambling manager
of the organization. Review of the application include s a background check on the gambling
manager and a review of the state licensing information by the Washington County Sheriff’s
office. The inspection was requested on April 25th and a report returned with no occurrences
that would prevent the city from approving the gambling premises permit application.
Section 130.10 of the ordinance allows for on e licensed organization to be permitted to
conduct lawful gambling activities at one premises. The Scandia-Marine Lions Club is currently
conducting charitable gambling activities at The Ozark Tavern. The Lions Club has provided
notice to the establishment that they are ending gambling activities effective June 3, 2024.
L.A.R.A. plans to begin operations immediately afterwards on June 4, 2024, pending approval
by the State Gambling Board.
Section 130.14 requires that a licensed organization shall spend 75% of its lawful purpose
expenditures derived from gambling conducted at the premises within the city’s trade area.
The trade area is defined as Scandia, contiguous cities and townships and any portion of the
Forest Lake School District. The organization reports that gambling proceeds will be used to
purchase an insurance policy from a local business, towards financial support for maintenance
and improvements to City of Scandia ballfields, allocation of sports expenses to athletes in the
trade area, and purchasing of equipment, uniforms, or other items from within the required
trade area whenever possible. Section 130.15 requires the organization to file a report with the
city proving compliance with the trade area spending requirements on an annual basis.
Once approved, a premises permit runs concurrently with the organization’s gambling license
on a perpetual basis, unless the permit is suspended or revoked by the Gambling Control Board
or is voluntarily terminated by either party.
Fiscal Impact:
The $100 permit fee has been paid.
Options:
1) Adopt Resolution No. 05-01-24-02 approving the Lawful Gambling Premises Permit.
2) Amend Resolution No. 05-01-24-02 with conditions.
3) Do not approve. A resolution to deny must be acted on.
Recommendation:
Action to either approve or deny must be taken by the Council within 60 days after receipt of
the application which was made on April 25, 2024. Staff recommends Option 1.
Attachments:
Resolution No. 05-01-24-02 Approving a Lawful Gambling Premises Permit for L.A.R.A.
Application for a Lawful Gambling Premises Permit
LG215 Lease for Lawful Gambling Activity
RESOLUTION NO. 05-01-24-02
CITY OF SCANDIA, MINNESOTA
RESOLUTION APPROVING LAWFUL GAMBLING
PREMISES PERMIT FOR CHISAGO LAKES AREA RECREATION ASSOCIATION
WHEREAS, the Chisago Lakes Area Recreation Association, dba Lakes Area Recreation
Association (L.A.R.A.), has made application for a Lawful Gambling Premises Permit to conduct
lawful gambling at The Ozark Tavern, 21050 Ozark Ave. N.; and
WHEREAS, L.A.R.A has been found to meet the criteria for approval of a premises
permit, as specified by City of Scandia’s Code of Ordinances Subchapter 130.01 adopted on March
6, 2007; and
WHEREAS, an investigation has been conducted, and L.A.R.A and the premises have
been found to meet the qualifications of the ordinance provided that the conditions of approval are
met;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL
OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that the
application of the Chisago Lakes Area Recreation Association for a Lawful Gambling Premises
Permit shall be and hereby is approved.
Adopted by the Scandia City Council this 1st day of May, 2024.
________________________________
Christine Maefsky, Mayor
ATTEST:
___________________________________
Kyle Morell, City Administrator
May 1, 2024
$100 paid 4/26/2024
The Ozark Tavern, LLC
04/25/2024
04.25.2024
Cory R Lindgren - Gaming Manager