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MEETING NOTICE Committee of the Whole Tuesday, October 17, 2017

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MEETING NOTICE Committee of the Whole Tuesday, October 17, 2017 MEETING NOTICE Committee of the Whole Tuesday, October 17, 2017 Start Time Immediately Follows Village Board Meeting Cary Village Hall 655 Village Hall Drive Cary, IL 60013 Mark Kownick, Mayor AGENDA I. Call to Order II. Roll Call III. Pledge Of Allegiance IV. Public Comments V. Discussion on Video Gaming Policy VI. Discussion on Public Comment Policy VII. Discussion on Ethics Ordinance VIII. Adjourn The Village of Cary is subject to the requirements of the Americans with Disabilities Act of 1990. Individuals with disabilities who plan to attend this meeting and who require certain accommodations so that they can observe and/or participate in this meeting, or who have questions regarding the accessibility of the meeting or the Village’s facilities, should contact Village Hall at (847) 639‐0003 [TDD (630) 845‐2180] promptly to allow the Village to make reasonable accommodations for those persons. October 17, 2017 Committee of the Whole Meeting Agenda Item: Discussion on Video Gaming Policy Type: Discussion Report From: Community Development Introduction During a recent Village Board meeting it was requested the Village’s Video Gaming Policy be reviewed for discussion. This memorandum is intended to provide an overview of the history of video gaming within the Village of Cary, including past policy discussions and licenses reviewed by the Village Board. It also reviews potential changes to the Village’s existing regulations based on other local government’s requirements. Since 2013 the Village has permitted video gaming in nine (9) establishments including the Tracks, Galati’s Hideaway, Kelli’s Cuckoo’s Nest, the Maple Tree Inn, Coleman’s in the Park, 750 Cucina Rustica, Kojak’s, Orchard Prime Meats, and the Tobacco Stop. To date all of these establishments have installed five video gaming terminals each with the exception of Kojak’s and Orchard Prime Meats. The later two establishments are in the process of completing their respective improvements in order to accommodate video gaming. Staff Analysis Background on the Video Gaming Act In 2009 the state signed into law the Video Gaming Act which legalized video gaming in certain liquor establishments, truck stops and fraternal/veterans clubs throughout the State of Illinois. The Act defines a “Licensed Establishment” as any licensed retail establishment where alcoholic liquor is drawn, poured, mixed, or otherwise served for consumption on the premises, whether the establishment operates on a nonprofit or for‐ profit basis. Under the Act local municipalities may license and impose a fee on video gaming terminals. Non‐ home rule communities are limited to a $25/year license for each machine. The following is a summary of restrictions currently in place relative to video gaming: Gaming machines are allowed in any establishment possessing a valid liquor license to serve alcohol for consumption, fraternal organization or veteran’s organization. Establishments eligible for video gaming cannot be located within 100 feet of a school or place of worship and cannot be located within 1,000 feet of a horse racing track. No more than 5 video gaming machines are allowed per authorized establishment. Gaming terminals must be located in an area restricted to persons 21+ and in direct view of an employee of the establishment. Hours of operation must coincide with the hours of operation for consumption of alcoholic beverages at the establishment. Authorized establishments are required to get a license from the Illinois Gaming Board, which requires an extensive application process. The application process requires details about the business ownership, supervision of the games to ensure nobody under the age of 21 gambles, ensuring the video games are properly placed, requiring proper insurance coverage and winnings are properly paid. The Illinois Gaming Board is responsible for discipline and the revocation of licenses; an Administrative Law Judge would conduct a hearing and make a determination according to the rules and regulations set up by the State of Illinois. Village of Cary Policy Per previous direction by the Village Board, staff continues to advise potential applicants that the Village policy has been to support video gaming at restaurant locations only as an accessory use and to review licenses on a case by case basis. This policy was most recently discussed in May of this year. Issuance of liquor and gaming licenses by the Village are deemed as a “privilege” and not a “right,” and therefore the Village has authority to use its discretion when issuing licenses. The table below provides an overview of past policy and licensing discussions related to Video Gaming within the Village of Cary. As evidenced by the table, the Village initially prohibited video gaming within the community following the state’s enactment of the Video Gaming Act. In 2013, the prohibiting ordinance was repealed in response to a petition from five existing local businesses seeking to add video gaming. Since 2013, nine establishments have received approval of video gaming licenses. Only two establishments, the Tobacco Stop in 2016 and Bella’s Bistro Market in 2017, have been denied license approval. However, the Tobacco Stop reapplied for a license in 2017 which was approved by the Village Board in June. Bella’s Bistro is also seeking a review of their application following the opening of their stores in other municipalities. Date Item Vote Results July 13, 2009 State of Illinois Enacts Video Gaming Act N/A April 6, 2010 VB Approves Ordinance O10‐04‐01 Prohibiting Video Gaming 5‐0 in Cary September 10, VB Discusses Video Gaming Policy in Response to Petition N/A 2013 from Five Existing Businesses October 29, 2013 VB Approves Ordinance O13‐10‐02 Establishing Local 5‐1 Regulations for Video Gaming March 18, 2014 Coleman’s in the Park 4‐0 April 1, 2014 Kelli’s Cuckoo’s Nest 5‐1 June 3, 2014 Maple Tree Inn 4‐1 July 15, 2014 Tracks Bar and Grill 5‐1 July 2, 2015 Galati’s Hideaway 5‐1 March 1, 2016 Policy Discussion on Video Gaming N/A March 1, 2016 Tobacco Stop 3‐4 September 6, 2016 750 Cucina Rustica 5‐1 March 7, 2017 Kojak’s 3‐1‐1 April 18, 2017 Orchard Prime / 6‐0 / Bella’s Bistro Market Continued May 16, 2017 Policy Discussion on Video Gaming N/A June 6, 2017 Tobacco Stop / 5‐1 / Bella’s Bistro Market Continued June 20, 2017 Bella’s Bistro Market 2‐4 Other existing businesses which serve alcohol have expressed an interest in potentially offering video gaming at their establishments in the future. The Village currently has two pending applications for gaming for Bellas Bistro Market and Lucky Bernie’s that will be scheduled for review by the Village Board following this discussion. Surrounding Community Analysis In addition to the Village of Cary, nearby communities have also allowed video gaming within their jurisdictions. The following table summarizes nearby communities which have permitted gaming and both the number of establishments and terminals each has within their jurisdiction. The table also summarizes the average revenue generated to each municipality per machine during August 2017. This information was obtained from the Illinois Gaming Board. Community # of # of Terminals Municipal Revenue / Establishments Machine (August ‘17) Algonquin 14 64 $152 Cary 7 35 $160 Crystal Lake 14 40 $189 Fox River Grove 7 31 $280 Huntley 12 55 $210 Johnsburg 12 57 $184 Lake In The Hills 11 49 $314 McHenry 32 140 $250 Woodstock 22 104 $180 Licensed establishments for the above nine communities range in services from sit down restaurants, bowling alleys, lodges, taverns, gas stations/truck stops, and gaming cafes. However, the majority are for restaurants and tavern locations. While the Village of Cary’s policy has been to not support gaming cafes, the ordinance does not specifically limit or restrict them. Some municipalities have established local requirements that limit video gaming cafes by clearly defining a café within their ordinance (i.e. size of establishment, number of machines relative to seating capacity). A proposed draft revision to the Village Ordinance is included in the packet which would provide specific regulations towards these types of uses if the Committee wanted to pursue an update to the Village’s regulations. Action Requested This item is being presented for discussion per the request of the Village Board. Staff is seeking direction on the following actions related to video gaming within the Village of Cary. 1) Continue current policy as only accessory to restaurant uses (all applications reviewed by VB) 2) Update local regulations for video gaming to refine requirements (potential draft attached) 3) No longer allow video gaming (apply to future businesses) 4) No longer allow video gaming (apply to existing and future businesses) Exhibits A. Existing Video Gaming Regulations with Draft Ordinance Changes CHAPTER 5.34. ‐ VIDEO GAMING TERMINALS[9] Sec. 5.34.010. ‐ License required. No person shall have or keep a video gaming terminal or device in any public place unless such terminal or device is licensed by the Village as well as the State, through the Illinois Gaming Board, and pursuant to the Illinois Video Gaming Act (230 ILCS 40/1 et seq.) and the rules and regulations implemented thereto and as may be amended from time to time. Sec. 5.34.020. ‐ Annual fee. The annual fee payable to the Village shall be twenty five dollars ($25.00) for each video gaming terminal or device. The annual fee shall be due and payable on April 30 to coincide with the Business and Liquor license renewal. Sec. 5.34.030. ‐ Replacement of license. Whenever a licensed video gaming terminal is replaced or an existing license is lost, a replacement license must be obtained. Sec. 5.34.040. ‐ Issuance. No license shall be issued except upon approval by the Mayor and Village Board.
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