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Home My WebLink AboutCOW 2010-09-13 Item 4A - Ordinance - Moratorium on Social Card Rooms (Gambling Activities)Fund Source: i Comments: MTG. DATE 1 9/13/10 COUNCIL A GENDA SYNOPSIS Meetzng Date Prepared by 09/13/10 7P 09/20/10 7P Initzals Mayer review ounal review ITEM No. 10-099 ITEM INFORMATION I CAS NUMBER: 10-099 I ORIGINAL AGENDA DATE: SEPTEMBER 13, 2010 AGI :NDA ITEM An ordinance renewing the six month moratorium on the establishment of social card game gambling acitivities. Resolution Ordinance Bid Award Public Heanng Other C.VII ?GORY Discussion Motion Mtg Date 09/13/10 Mtg Date Mtg Date Mtg Date 09/20/10 Mtg Date RN \'1I. WF I) BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm Parks Comm. n Planning Comm. DATE: 8/23/10 RECOMMENDATIONS: SPONSOR /ADMIN. Department of Community Development COMMITTEE Unanimous Approval; Forward to C.O.W. COST:IMPACT FUND SOURCE EXPI•NDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Mtg Date 09/13/10 Mtg Date I SP( NSOR Council Mayor Adm Svcs DCD Finance Fire Legal 1 1 PoR Police PW/ SPONSOR'S The City Council adopted a moratorium on development applications for social card SUMMARY gambling establishments on March 22, 2010 to prevent vesting of any new applications. The Council is being asked to renew the moratorium for another six months after holding a public hearing. RECORD OF COUNCIL ACTION MTG. DATE I ATTACHMENTS 9/13/10 Informational Memorandum dated 8/12/10 Ordinance in draft form, renewing the moratorium for 6 months Minutes from the Community Affairs and Parks Committee meeting on 8/23/10 2 City of Tukwila TO: Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Community ffairs and Parks Committee FROM: Jack Pace DATE: August 12, 2010 SUBJECT: Moratorium on social card game gambling uses. ISSUE Renew the moratorium on "mini- casinos BACKGROUND DISCUSSION On March 22, 2010, the City Council passed Ordinance 2279 adopting a six -month moratorium on the establishment of social card game gambling activities. A public hearing on the issue of the moratorium was held on May 3, 2010 and after the public hearing the City Council passed Ordinance 2286 adopting the findings of fact justifying the adoption of the moratorium. The six month moratorium is effective until September 22, 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 I 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 pelluit 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 city is currently engaged in the state legislative process for more local control regarding the location of these uses and the current moratorium will expire before the legislative process is completed. If local control is achieved through the legislative process then additional research will be done to assess which zones should allow social card gambling activities. Staff is currently engaged in reviewing the implications of banning social card rooms, should the City's legislative efforts fail. MD Page 1 of 2 08/16/2010 H: \Gambling moratorium \CAP memo 8 -23 doc 3 INFORMATIONAL MEMO Page 2 At this time there are three existing card rooms operating in Tukwila; Golden Nugget, Great American Casino and Riverside. The city has been informed that Silver Dollar is now closed. Nevada Gold Casinos, Inc. of Houston, Texas has recently acquired Golden Nugget Casino located in Tukwila along with five other mini casinos in Washington. The newspapers have reported that Nevada Gold decided not to pursue the acquisition of the Silver Dollar Tukwila due to consistent losses. 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. 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. Renewing the moratorium is necessary as staff continues to be engaged in the legislative process and continues to study and come up with options related to zoning regulations involving food and eating establishments where social card gambling activities could be allowed. Also, it is important to prevent vesting of any new applications while legislative amendments are pursued and to maintain the status quo. RECOMMENDATION Forward the ordinance renewing the moratorium on mini casinos to the Committee of the Whole for a public hearing on September 13, 2010. ATTACHMENTS Ordinance renewing moratorium on mini casinos for an additional six months. H:IGamblinc moratorium\CAP memo 8- 23.doc DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, RENEWING A MORATORIUM ON THE FILING OF APPLICATIONS FOR DEVELOPMENT PERMITS FOR FOOD OR DRINK ESTABLISHMENTS CONDUCTING SOCIAL CARD GAME GAMBLING ACTIVITIES; PROVIDING FOR SEVERABILITY; AND DECLARING AN EMERGENCY. WHEREAS, on March 22, 2010, the Tukwila City Council passed Ordinance No 2279, which declared an emergency necessitating the immediate 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, on May 3, 2010, the City Council held a public hearing on the moratorium as required by RCW 35A.63.220, and adopted findings of fact justifying the adoption of the moratorium; 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 three 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 alternatives are studied and considered, and WHEREAS, the City is currently engaged in the state legislative process for more local control of the siting of gaming establishments and the current moratorium will expire before the legislative process is completed; and WHEREAS, if local zoning control is achieved through the legislative process, additional time will be required to research which zones should allow social card game gambling activities; and WHEREAS, the City continues to study zoning regulations involving food and eating establishments and where social card game gambling activities could be allowed, and WHEREAS, if local control is not achieved through the legislative process, staff 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, renewing the moratorium for another six months is in the public interest and promotes orderly land development in the absence of a moratorium, and C: \Documents and Settings \melissa -h Desktop \Tukwila Gambling Moratorium renewal.docx MD:mrh 08/16/2010 Page 1 of 2 5 6 WHEREAS, state law RCW 35A.63.220) authorizes the City Council to adopt land use moratoria; and WHEREAS, the City SEPA Responsible Official has previously determined 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. Moratorium Renewed. The City hereby renews the moratorium previously imposed upon 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. 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. Public Hearing. Pursuant to RCW 35A.63.220 and following adequate public notice, a public hearing was held on September 13, 2010 to receive testimony regarding the moratorium. Section 3. Findings of Fact. In accordance with RCW 35A.63.220, which requires that the City Council adopt findings of fact justifying the adoption of a moratorium, 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 4. The moratorium renewed herein shall be in effect until March 22, 2011, unless extended by the City Council pursuant to state law. Section 5. 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 6. Declaration of Emergency Effective Date. For the reasons set forth above. and to promote the obiectives stated herein. the City Council finds that a public emergency exists, necessitating that this ordinance take effect immediately upon its passage by a maioritv plus one of the whole membership of the Council in order to protect the public health, safety, property, and general welfare. This ordinance shall take effect and be in full force immediately upon passage by the City Council. A summary of this ordinance may published in lieu of publishing the ordinance in its entirety. 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: C: \Documents and Settings \melissa -h Desktop \Tukwila Gambling Moratorium renewal.docx MD:mrh 08/16/2010 Page 2 of 2 COMMUNITY AFFAIRS AND PARKS COMMITTEE Meeting Minutes August 23, 2010 5:00 p.m.; Conference Room #3 PRESENT Councilmembers: Staff: Guests: Joe Duffie, Chair; Joan Hernandez and Verna Seal Bob Giberson, Jack Pace, Rebecca Fox, Pat Brodin, Steve Lancaster and Kimberly Matej Louis Jones —Brown (Tukwila Historical Society), Frank Fermani (Wooden III, LLC) and Chuck Parrish (resident) CALL TO ORDER: Committee Chair Duffie called the meeting to order at 4:58 p.m. I. PRESENTATIONS No presentations. City of Tukwila Community Affairs and Parks Committee 11. BUSINESS AGENDA A. Renewal of Gambline Moratorium Staff is requesting Council approval to renew a moratorium on establishments conducting social card game gambling activities. The City Council originally passed a six month moratorium on March 22, 2010, which is set to expire on September 22, 2010. Due to draft legislation currently being worked on at the state level, staff is seeking renewal of the moratorium for an additional six months. A public hearing will be set for September 13, 2010. UNANIMOUS APPROVAL. FORWARD TO SEPTEMBER 13 COW FOR DISCUSSION AND PUBLIC HEARING. B. Comprehensive Plan Amendments Staff is seeking full Council approval to amend the City's Comprehensive Plan as well as relative Zoning Code amendments. On July 6, the City Council approved the forwarding of three Comprehensive Plan amendments (two public, one City) to the Planning Commission for review, consideration and recommendation. Three applications have been submitted for the City's consideration as described below followed by the Planning Commission's recommendation: An application to redesignate and rezone two lots /properties located in the vicinity of 3914 South 115"' Street from Manufacturing/Industrial Center Light (MIC/L) and Low Density Residential (LDR) to Office (0). The properties total 0.36 acres. Planning Commission Recommendation: Deny application for Comprehensive Plan amendment; and deny application for re -zone. Committee Member Seal expressed an interest in reconsideration of staff's original recommendation to approve this application. She discussed the current downturned economy and the potential for this change as a positive addition to the community. She is in support of staff reasons for approval as discussed in the relevant staff report (see Attachment 1, beginning on page 27 of the Committee agenda packet). Committee Chair Duffie concurred that he would support a discussion of reconsideration. Committee Member Hernandez stated that she is not ready to make a recommendation for this item as she prefers to hear public hearing comments first. FORWARD TO SEPTEMBER 13 COW FOR DISCUSSION PUBLIC HEARING. 7 8