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HomeMy WebLinkAbout11-16-1993 City Council Study SessionMIN[TTES CITY COIINCIL STIIDY BESSIOId CITY OF LARE ELSINORL 130 SOOTH MAIN STREET LARE ELSINORE~ CALIFORNIA TOESDAYo NOVEMBER 16~ 1993 tr**,-**ss**a********~*+r*~r******,t,t*,t,t,tr**+r*,t,e,e*********+t**,t*******• CALL TO ORDER The Study Session was called to order at 5:00 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: ALONGI, CHERVENY ABSENT: , WINKLER, WASHBURN Also present were: City Manager Molendyk, City Attorney Harper, Administrative Services Director Boone, Special Projects Coordinator Wood, City Treasurer Pape and City Clerk Kasad. City Attorney Harper clarified that this would not be an official meetinq and no action could be taken in that a quorum was not presente DISCUSSION ITEM 1. Proposed Cardroom Ordinance Revisions. (F:34.1) City Manaqer Molendyk explained that interest had been voiced by the City Council and the business community in determining whether the Community would be open to additional card room facilities. He further e~lained that this revision would allow additional facilities and clean up the existing ordinance with regard to drinking at the tables and the requirement for U.S. citizenshipe City Attorney Harper advised that he had received direction to revise the ordinance to allow for consideration of additional licenses, if the Council so chooses. He clarifieci that not all of the ordinances in the area are codified, particularly with regard to transferability. Councilwoman Cherveny inquired why the transferability portion had not been removed, noting that the transfer of the existing facility had occurred. City Attorney Harper clarified the ordinance section which does not prohibit transfers, but does not allow further operations, after this use ceases. He explained that this was an attempt to allow the previous owner to retain his investment and sell his business. He noted that the proposed revisions would allow for additional facilities. City Manager Molendyk noted that the most recent discussions on this ordinance related to adjustment of fees. Councilwoman Cherveny noted that the primary reason for this workshop was allow for additional review and allow the current owner to provide input. PAGE TWO - CITY COUNCIL STUDH SESSION - NOVEMBER 16, 1993 City Attorney Harper explained ~ha~ at the request of various people this ordinance was an at~empt ~o allow for additional licenses, if that is the desire of the Council. He noted that it was his understanding that the current owner was aware of this ordinance. Councilman Alongi expressed concern that this ordinance would address a location on Main Stree~, which would fall under the Design Review committee regulations. He inquired whether this ordinance would exempt Main Street. Csty Attorney Harper clarified that the development regulations would still apply and the development standards would still effect the project. Councilman Alongi inquired whetrier a variance woulcl be required. Mr. Harper indicated tha~ it would depend on the location and use. Fie clarified that most of the D.R.C. regulations relate to modifica~ion of eXisting structures. City Manager Molendyk noted that the proposal on Main Street seems to address the hot springs first, with the hotel and card parlor as minor uses. He also noted that the other proposal presented was more in competitions with the existing facility. Councilwoman Cherveny noted f.he presence of the owner and manager of the existing card room and requested their input. Eldon Kingston, owner of the Lake Elsinore Resort, indicated that he was informed of this consideration the day before the Council Meeting, and was unable to attend. Iie stressed that he was not aware of this item previously and was only informed through the newspaper. He also stressed tha~ at the time he acquired the casino, it was based on the understanding that there was only one license and would continue to be only one licenseo He detailed the improvements and costs which have occurred since he acquired fhe gacility, and the proposeci additional work. He suggested that ~he fee structure be done separately. He offered to provide input on this portion. Councilwoman Cherveny concurred that the fee portion should be a separate issue. Mr. Kingston noted that the fees proposed are basically those proposed when Mr. Speer offered to purchase the facility. He further noted that license had been denied. Mr. Harper noted that the fees were based on those of the Bicycle Club. Mr. Kingston addressed the issue of liquor at the ~.ables, indicating that there are concerns with drinking players, including the economics of providing ~he drinks. He noted the curren~ local population and its impact on the customers to be drawn to the facility, as well as the area needed to support two additional casinos. Iie noted ~hat there were previously two licenses, but one facility went broke> Larry Regis, Manager of the Lake Elsinore Resort, detailed the marketing and drawing area for a facility such as their's; as well as the pending additional proposals in the surrounding area. He noted the local community participation and the financial stability of his organizationo He also noted that their organization has become and integral part of the community. PAGE THREE - CITY COUNCIL STUDY SESSION - NOVEMBER 16, 1993 City Attorney Harper clarified that this meeting is only to address the proposed ordinance, not the other proposals. Mr. Regis expressed concern that this proposal could have been approved and on the books already. He stressed his concern with allowing additional facilities without looking at the entire picture, particularly population impact and financial feasibility. City Attorney Harper concurred that these are points for Council consideration. Mr. Regis suggested separation of the licensing and fee issues. Mr. Kingston commented on the projections in the other proposals and their level of accuracy. Councilwoman Cherveny clarified that those proposals have no bearing on the ordinance. She stressed that fees are also a separate issue. Leon Strigotte, 216 Chaney Street, commented that the proposals had been used as selling points for the ordinance. Mr. Kingston concurred that they were a selling point and stressed that his organization is here for the long term either way. Councilwoman Cherveny indicated that her understanding was that Mr. Kingston would be meeting with the City's Finance Director to discuss the fee structure. She noted that she would like to see some sort of increase, but maybe not in the first year. Mr. Kingston indicated that the fees proposed are reasonable for a casino, and they would agree to an adjustment, but the proposals before the Council are not within reason, as very little profit would be possible; he suggested further calculation of the amountse He offered to discuss fees further at a later date. Councilwoman Cherveny offered to meet with Mr. Kingston on this issue. Mr. Kingston indicated that he would be willing to open his books for review. Mrs. Cherveny indicated that it was visible that funds were being invested on the existing facility, but noted the need to locate sources of increased revenue for public safety. CITY ATTORNEY HARPER LEFT THE MEETING AT 5:45 P.M. Will Buck, 29610 Hague, noted that much of the clientele of the proposed facility on Main Street would come from out of the area. He explained Mr. Han°s intent to expand his operation and focus on the hot springs and water related uses with the hotel and card room as secondary uses. He noted that it is felt that the card room draw is needed to allow for financing of the project. He noted that the intent would be for only 10 to 15 tables. Councilwoman Cherveny indicated that this would require a major revision. Mr. Buck indicated that he was under the impression that some of the requirements could be waived since it was in the D.R.C. area. PAGE FOUR - CITY COUNCIL STUDY SESSION --NOVEMBER 16, 1993 Leon Strigotte indicated that he and o~hers would prefer no casinos. He further indicated that his intent when the ordinance was revised previously was to prevent transfer of the casino as well. He expressed concern with the legality of prior operations and questioned the current patrolling of the facility. He noted that this issue has been on the ballot and rejected twice in the past. He noted his willingness to circulate a petition to prevent further licenses. He expressed concern that there is not adequate law enforcement now and suggested that additional card rooms would increase the problems. He also noted that people don't want gambling near their families and most would go to other areas if they wanted to participate. Mr. Kingston commented that they have operated to the letter of the law since they acquired the facility. Councilwoman Cherveny questioned the current security and policing requirements and whether they are being complied with. Councilman Alongi inquired whether each table is registered. Mr. Strigotte indicated that there is a minimum 30 tables for operation, and the intent was that the tables would be counted from time to time. He noted previous incidents where additional rooms were being operatedo Councilwoman Cherveny inquired whether these checks are occurring. Mr. Molendyk indicated he would check with Captain Daniel. Mr. Regis noted that on busy tournament weekends some tables are moved to other areas, fiowever there are never more than the license allows. He offered the opportunity for inspection of the facility to anyone interested. Mr. Regis questioned the process from this point. City Manager Molendyk explained that the intent of this workshop was to answer any questions regarding the changes or the fees. He further explained that Mr. Boone is in the process of obtaining feedback on the fees and stressed the intent to make the fees more competitive. Councilwoman Cherveny stressed the importance of separating the fees from the licensing issue. She also expressed concern with the liquor issue. Mr. Strigotte noted that following enactment of the ordinance, requests for repeal will occur. Chris Ayland, 15191 Wavecrest, inquired why notification was not provided to residents of this consideration. ~ilwwnan Cherveny indicated tha~ the Council was not advised either. City Manager Molendyk deferred this matter to the City Attorney. Mrs. Hyland inquired who provided the direction to revise the ordinance. Mr. Molendyk indicated that direction had come from Council. Councilwoman Cherveny inquired what it would talce to place this issue on a balloto City Clerk Kasad indicated that a ballot measure could be initiated by a Resolution of ~he City Council. PAGE FIVE - CITY COUNCIL STUDY SESSION - NOVEMSER 16, 1993 Councilwoman Cherveny stressed that the fees are a separate issue, but the moral issue should be left up to the residents. Mr. Strigotte expressed concern for the overall quality of life. Mr. Kingston reitera~ed his willingness to sit down and discuss the fees, and noted that it is not as lucrative as some believe. Councilwoman Cherveny indicated that she would be interested in tha~ inputo Councilwoman Cherveny reiterated the need to ensure that Section 5.28.220 is being complied withe City Treasurer Pape indicated that he had spoken with police representatives in other cities with existing Card Rooms. He noted comments that allowing the casinos to police themselves is not a good idea. He noted their efforts to obtain retired officers for security. FIe also noted comments that card rooms are a recession proof source of revenue for the cities and one city even dedicates the revenue to law enforcement. Mr. Strigotte questioned the willinqness of officials in other communities to live in those communities. THE STUDY SESSYON WAS ADJOURNED AT/$:07 P.M. ~ ~ '' ° ~'v~/~~ GARY WASHBURN, MAYOR CITY ~O• LAKE ELSINORE AT EST: ~ V CKY KAS D, CITY CLERK CITY OF LAKE ELSINORE