Loading...
HomeMy WebLinkAboutReg 2010-05-03 Item 5B - Public Hearing - Ordinance Establishing Moratorium Regarding Social Card Rooms (Gambling Activities)CAS NUMBER: 10-035 SPONSOR SPONSOR'S SUMMARY Fund Source: Comments: MTG.' DAT 3/22/10 I Meeting Date 03/22/10 05/03/10 10- ©3 REVIEWED BY n COW Mtg. CA &P Cmte Utilities Cmte Arts Comm. DATE: N/A Emergency RECOMMENDATIONS: SPONSOR /ADMIN. Adoption of ordinance COMMITI Emergency Declaration EXPENDITURE REQUIRED COUNCIL AGENDA SYNOPSIS Lsitials Prepared by Mayor's review I o rncil jeview WAK JP I I W 2R ITEM:INFO.R'MATION 1 ORIGINAL AGENDA DATE: MARCH 22, 2010 AGENDA ITEM TITLE An ordinance adopting findings of fact supporting the moratorium on the establishment of social card game gambling activities. C, \TEGORY Discussion Motion Resolution Ordinance n Bid Award Public Hearing 1 1 Other Mtg Date 03/22/10 Mtg Date Mtg Date Mtg Date 5/3/10 Mtg Date Mtg Date 5/3/10 Mtg Date Council n Mayor n Adm Svcs DCD n Finance Fire Legal n P&R n Police n PA% The City Council adopted a moratorium on development applications for social card game gambling on March 22, 2010 to prevent vesting of any new applications. The Council is being asked to hold the public hearing and adopt the findings of fact supporting the establishment of the moratorium on social card game businesses. F &S Cmte n Parks Comm. D °SONRCE AMOUNT BUDGETED RECORD- OF''C'OUNCIL.AC.TIO Adoption of Ordinance #2279, establishing the moratorium U Transportation Cmte n Planning Comm. APPROPRIATION REQUIRED MTG. DATE A"f`TACHMEN 3/22/10 Informational memo dated 3/17/10 Ordinance in draft form 05/03/10 Informational Memorandum dated 4/27/10 Ordinance in final form, adopting findings of fact supporting the moratorium ITEM .No. 5 8. 51 52 TO: FROM: Jack Pace, Community Development Director DATE: April 27, 2010 SUBJECT: Moratorium on social card game gambling uses ISSUE BACKGROUND DISCUSSION City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton City Council Hold the public hearing on the moratorium on "mini- casinos" and adopt the findings of fact supporting continuation of the moratorium. Jim Haggerton, Mayor On March 22, 2010, the City Council approved an Ordinance adopting a six -month moratorium on the establishment of social card game gambling activities. A public hearing on the issue of the moratorium is required to be held within sixty days of the adoption, which in this case is by May 17, 2010. Ten years ago the City Council adopted an ordinance that prohibited new social card game establishments but permitted existing licensed social card game businesses to remain as legal non conforming land uses. Subsequent to that in 2003, Division 1 of the Court of Appeals issued its opinion in Edmonds Shopping Center Assoc, et al. vs. City of Edmonds, which affirmed that cities may absolutely prohibit any or all gambling activities, but called into question cities' ability to exercise zoning or other general police powers over licensed gambling activities. At this time the state gambling regulations (chapter 9.46 RCW) only permit local jurisdictions to completely prohibit card room uses, including those previously established, or allow them anywhere food and drink establishments are permitted. There was a recent amendment to the state law that allows social card game businesses established prior to annexation into a city and licensed prior to July 26, 2009, to continue to operate even though gambling may be prohibited in that jurisdiction. The cities and counties are authorized to tax certain gambling activities. Different tax rates apply to different types of gambling activities. Tukwila taxes social card game businesses at 20 percent, which is the maximum allowed tax rate. At this time there are four existing card rooms operating in Tukwila and one business has expressed an interest in acquiring a State license to operate an additional social card room in Tukwila. This business venture has called into question the ability of the City to allow legal non- conforming social card rooms to remain while banning new establishments. Enacting a complete ban would make the existing establishments illegal. However if the ban is lifted, under the City's current zoning code, card room uses will be allowed in all zones that allow food and drink establishments. Currently, restaurants with cocktail lounges are permitted in all commercial and industrial zones, except for Residential Commercial Center where they are a conditional use. 53 54 INFORMATIONAL MEMO Page 2 There are a number of jurisdictions that prohibit gambling activities. According to the information received by staff from the state gambling commission, if there is a complete ban the commission will rescind the license issued to any existing establishment that may have an existing license from the gambling commission. A six -month moratorium is necessary in order to further research and review the implications of the different policy options. Some of the options that will be considered are: (1) a complete ban on current and future social card game gambling activities, or (2) allowing them in all zones where food and drink establishments are allowed and perhaps amend the City's current zoning code to further restrict where such establishments are allowed, or (3) pursue other options that may become evident as staff further researches this issue. RECOMMENDATION Hold the public hearing and adopt the findings of fact supporting the establishment of the moratorium on development applications for food and drink establishments conducting social card game gambling activities to allow for further study of the matter. ATTACHMENTS Ordinance adopting the findings of fact supporting the six -month moratorium on mini casinos City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, RELATED TO LAND USE AND ZONING; ADOPTING FINDINGS OF FACT SUPPORTING THE MORATORIUM ADOPTED BY ORDINANCE NO. 2279, WHICH MORATORIUM SHALL BE EFFECTIVE FOR A PERIOD OF SIX MONTHS; AND PROVIDING FOR SEVERABILITY. WHEREAS, on March 22, 2010, the Tukwila City Council passed Ordinance No. 2279, which declared an emergency necessitating the ilzunediate imposition of a moratorium on the filing of applications for building permits, development permits, or any other permits or approvals required for food or drink establishments seeking to conduct new social card game gambling activities, or to expand existing social card game gambling activities, whether as a principal use or as an accessory use, as more particularly described in Ordinance No. 2279, and; WHEREAS, cities and counties are authorized to (1) tax certain gambling activities; (2) enact as local ordinances any of the state gambling statutes, the violation of which constitutes a misdemeanor or gross misdemeanor; or (3) prohibit any or all gambling activities for which licenses are required; and WHEREAS, there are four existing card rooms operating in Tukwila that generate significant gambling tax revenues for the City; and WHEREAS, at least one business has expressed an interest in acquiring a State license to operate an additional social card game in Tukwila and this business venture has called into question the ability of the City to prohibit future card room uses while allowing legal non- conforming social card games to remain; and WHEREAS, the City Council established a six-month moratorium to prevent the vesting of any new applications and to maintain the status quo while legal, political, financial and practical alternatives are studied and considered; and WHEREAS, restaurants with cocktail lounges are permitted uses in all commercial and industrial zones, except for the Residential Commercial Center zone where they are a conditional use; and WHEREAS, the City needs additional time to review the zoning regulations as they pertain to restaurants and to review the location of vested restaurants to determine if Comprehensive Plan and Zoning Code revisions are necessary; and WHEREAS, the City needs additional time to research and review secondary adverse impacts, if any, related to allowing social card game gambling activities in all zones; and WHEREAS, the City needs additional time to study the zoning codes of other jurisdictions that allow social card game gambling activities within their jurisdictions; and WHEREAS, on May 3, 2010, the City Council held a public hearing on the moratorium as required by RCW 35A.63.220, and on that date accepted testimony from all members of the public desiring to be heard on the subject; and WHEREAS, based upon the public testimony received on May 3, 2010, and based upon additional materials presented by City staff, a moratorium of limited duration is W: \Word Processing Ordinances \Mini Casinos Gambling Moratorium Adopting Findings of Fact Clean.doc MD:nvh 04/25/2010 Page 1 of 2 55 56 in the public interest and promotes orderly land development in the absence of a moratorium; and WHEREAS, on May 3, 2010, the City Council considered the foregoing facts, materials and testimony, and deliberated on the issue of whether to maintain the moratorium; and WHEREAS, state law, RCW 35A.63,220, authorizes the City Council to adopt land use moratoria; and WHEREAS, on May 3, 2010, the City SEPA Responsible Official determined that the moratorium is exempt from SEPA under RCW 43.21.030(2)(c), and the City may proceed with the moratorium pursuant to WAC 197- 11- 800(14)(h); NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Adoption of Defined Term. For the purpose of this Ordinance, the definition of "development permits" in Ordinance No. 2279 is hereby adopted by reference as if fully set forth herein. Section 2. Findings of Fact. In accordance with RCW 35A.63.220, which requires that the City Council adopt findings of fact justifying the adoption of moratoria, the "WHEREAS "clauses set forth above are hereby adopted as the City Council's findings of fact and are by this reference incorporated herein as if set forth in their entirety. Section 3. Moratorium Expiration. The six-month moratorium established by Ordinance No. 2279 shall be effective through September 22, 2010. Section 4. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. Effective Date. This ordinance shall be published in the official newspaper of the City, and shall take effect and be in full force five days after the date of publication. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2010. ATTEST/ AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W:\ Word Processing Ordinances \Mini Casinos Gambling Moratorium Adopting Findings of Fact Cleart.doc MD:mrh 04/28 /2010 Page 2 of 2