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HomeMy WebLinkAboutSEPA E99-0002 - CITY OF TUKWILA / COMMUNITY DEVELOPMENT - CODE AMENDMENT: GAMBLINGCODE AMENDMENT GAMBLING Mini -Casinos E99-0002 Ju Wgsti City ©f Tukwila iv 1908 John W. Rants, Mayor Department of Community Development Steve Lancaster, Director To: Mayor Rants From: Steve Lancaster Date: April 21, 1999 Re: Interdepartmental Report on Mini -Casinos On February 1, 1999, the City Council adopted a six-month moratorium on the filing of business licenses and development permits for food and drink establishments conducting gambling activities. The moratorium was established to provide an opportunity to review and research gambling -related issues, to consider code amendments and to hold a public hearing. The public hearing was held on March 15, 1999. The moratorium will expire on August 1, 1999. In response to the current moratorium, city staff formed an interdepartmental team comprised of the following members: Rhonda Berry, Evelyn Boykan, Alan Doerschel, Jane Cantu, Duane Griffin, Bob Noe, Jack Pace, Doug Partlow and Deb Ritter. The team researched a variety of mini -casino impacts, networked with peer groups in neighboring jurisdictions and obtained input from the operators of mini - casinos located in Tukwila. This report contains the information obtained by that team and also raises questions for consideration by the City Council and Administration, as follows: 1. Should the six-month moratorium be extended beyond August 1, 1999? 2. Should gambling be allowed in the City of Tukwila? 3. If gambling is allowed, what types of gambling venues or activities will be permitted? 4. Where should these permitted gambling activities be located? 5. At what rate should Tukwila tax these activities? In response to these questions, the report provides a variety of policy options and recommendations. More specific standards, regulations and code amendments can then be prepared to accommodate and respond to the direction of the City Council on any or all of these issues. BACKGROUND The Gambling Act of 1973 (RCW 9.461 In 1973, the State Legislature created the Washington State Gambling Commission and authorized certain gambling activities in the State (amusement games, bingo, raffles, punch boards, pull -tabs and card rooms). Under this law, the State (as well as the City of Tukwila) allowed social card games in taverns and restaurants, which primarily engage in the sale of food and drink. In 1997, the State Legislature modified the definition of social card games to include gambling. The law was altered in an effort to help card rooms compete with tribal casinos, allowing house -banked social card games with professional dealers and bets up to $100. The changes in the State law also increased the maximum number of tables 4/21/99 C:\DEB\Casino\REPORT9.doc -1- 6300 Southcenter Boulevard, Suite #100 • Tukwila, Washington 98188 • (206) 431-3670 • Fax (206) 431-3665 per establishment from 5 to 15. The venues for such activities are now increasingly known as "casinos" or "mini -casinos". As of February, 1999, 40 of the 83 mini -casinos seeking approval from the State Gambling Commission have been approved. The Gambling Commission estimates that by January, 2000, 70 of the 83 mini - casinos will have been approved. The Commission believes that most future growth will be located in the greater Puget Sound area and that most mini -casinos will be new businesses, not existing card rooms. The Gambling Commission has asserted that it has the sole authority to "regulate" those food and drink establishments providing gambling activities as a commercial stimulant. This is based on their belief that the State has preempted the field of regulation and that cities cannot impose any regulations, including zoning or land use regulations, on establishments in such gambling activities. According to Ed Fleisher of the Gambling Commission', "a local jurisdiction's ability to 'zone' a particular type of gambling business out of some areas, but not all areas, is not clear." According to Mr. Fleisher it is also not clear "whether local jurisdictions can allow gambling non -conforming uses or whether moratoriums on new gambling, which a few jurisdictions have adopted, is permissible." Although the Gambling Commission will not take a formal position on these issues, they expect that the issues "will likely be litigated by licensees and local jurisdictions in the coming months." Mini -Casinos in Tukwila There are currently five operating mini -casinos in the City of Tukwila. They are: Riverside Inn Golden Nugget Silver Dollar 21 Club Non -Stop Bar & Grill 14060 Interurban Avenue South 14025 Interurban Avenue South 14027 Interurban Avenue South 14101 Pacific Highway South 12606 Pacific Highway South Staff has learned that at least three additional casinos are being contemplated in the City of Tukwila with the probable expansion of two existing mini -casinos. Although Tukwila has allowed some gambling activities in the past (such as social card games, punch boards and pull -tabs) these activities were not referenced in the list of permitted uses under the City's Zoning Code. At that time, these gambling activities were considered to be "customarily appurtenant" to taverns, billiard or poolrooms. At present, Tukwila's zoning code does not address casinos or mini -casinos nor are they shown on the list of permitted uses. However, as card rooms evolve into mini -casinos, gambling appears to be the principal use at these locations. Mini -Casinos in Other Jurisdictions Like Tukwila, cities with active moratoria are currently reviewing the mini -casino issue and are trying to decide if any changes should be made to their municipal codes. The following cities have moratoria in place: Auburn, Burien, Kent, Redmond, Tacoma and Tukwila. The following list shows the number of existing and pending mini -casinos by city: 'Letter dated February 9, 1999 from Ed Fleisher of the State Gambling Commission to Michael Katterman of the City of Renton. 4/21/99 C:\DEB\Casino\REPORT9.doc -2- Auburn Burien Federal Way Kent Kirkland Redmond Renton SeaTac Shoreline Spokane Tukwila 2 operating and 1 pending 1 being built 3 operating 1 operating none at this time none at this time 2 operating 1 proposed 2 operating and 1 pending 5 operating 5 operating Some of the cities which have banned mini -casinos are: Bellevue, Bothell, Covington, Enumclaw, Issaquah, Lynnwood, Maple Valley, Mercer Island, Mill Creek, Seattle and Woodinville. ISSUE #1 Should the six-month moratorium be extended beyond August 1, 1999? The explosive growth of mini -casinos has taken many jurisdictions by surprise. Some cities have imposed moratoria while others have completely banned casinos. Those cities without moratoria in place are aware of the proliferation of mini -casinos and are watching the situation closely. Tukwila has more casinos than any other jurisdiction in Western Washington. However, if neighboring jurisdictions decide to ban these venues, there will be additional pressure placed on Tukwila to allow even more. The recent changes in the Gambling Act of 1973 created a number of legal questions that remain unresolved. They include a jurisdiction's ability to regulate via zoning, licensing and moratoria. In response to concerns voiced by a number of cities in King County, the local gambling industry sought to make changes in the existing statute. Unfortunately, although a number of bills were proposed in the Legislature this spring, none were passed out of committee. The Association of Washington Cities has advised us that, absent a change in the existing law, this issue will likely be decided in the courts. Policy Options 1. Let the moratorium expire on August 1, 1999. 2. Extend the moratorium for an additional six months (expiring February 1, 2000). 3. Extend the moratorium an additional six months but provide an exemption for specific geographic areas. Recommendation Due to the number of unresolved legal questions associated with mini -casinos and the amount of time that must be devoted to code amendments, staff recommends the extension of the existing moratorium for an additional six months. 4/21/99 C:\DEB\Casino\REPORT9.doc -3- • • ISSUES #2 and #3 Should gambling be allowed in the City of Tukwila? If gambling is allowed, what types of gambling venues or activities will be permitted? There are a variety of gambling activities which are allowed in the State. These include amusement games, bingo, raffles, punch boards, pull -tabs and card rooms. While jurisdictions have the statutory authority to prohibit some or all of these activities, card rooms (and those card rooms advertised as mini - casinos) are the type of gambling activity most frequently prohibited by local governments. Some cities, such as Seattle, have banned card rooms and mini -casinos while allowing pull -tabs. Although Issue #2 is largely a policy question, the answer may be driven by the legal options available to the City. For example, if the courts find that cities do not have the ability to regulate mini -casinos via zoning or licensing, the Tukwila City Council may wish to ban them. More specifically, this means banning. the gambling activity most commonly associated with mini -casinos (i.e., house -banked social card games). However, the City may wish to allow other types of gambling to continue (such as pull tabs, punch cards, bingo, raffles and certain amusement devices). Policy Options There are at least three options available to the City: 1. Allow all types of gambling .activities (including mini -casinos) in all areas where restaurants and taverns are permitted. 2. Impose a City-wide ban on mini -casinos. 3. Allow mini -casinos only in specific geographic areas of the City (i.e., the Tukwila Urban Center and/or portions of Interurban Avenue). Recommendation The legal questions regarding a local jurisdiction's ability to regulate mini -casinos via zoning and licensing will have to be resolved in the courts. At this time, we are recommending an extension of the current moratorium. However, if the legal situation is clarified in favor of local jurisdictions, staff recommends Option #3. In that event, the Tukwila Municipal Code should be amended to reference and define all permitted gambling activities. Additionally, a distinction should be made between gambling activities conducted by charities and those conducted by private enterprise. ISSUE #4 Where should these permitted gambling activities be located? Due to Tukwila's location on several regional corridors and its proximity to Seattle, we are viewed as a prime location for mini -casinos. Although Tukwila only has a population of 15,000, it currently has five operating casinos. By contrast, Seattle residents must travel to neighboring jurisdictions to gamble in a mini -casino because this type of venue is banned in their city. In an attempt to attract potential Seattle customers, the advertising campaigns for four of Tukwila's mini -casinos have been directed to a regional audience. Their advertisements are appearing regularly and with increasing frequency on television, in major Seattle . newspapers and on signage in other jurisdictions. For these reasons, it can be argued that mini -casinos are a regional commercial use. 4/21/99 C:\DEB\Casino\REPORT9.doc -4- • • The land use impacts of mini -casinos are also regional in nature. By law, mini -casinos may operate 20 hours per day. The associated impacts of such regional commercial enterprises include increased conflicts between pedestrians and autos, increased parking demands of single occupancy vehicles and the potential for increases in noise and crime levels at a variety of times throughout the day. According to Tukwila's Police Department, it is still too early to reach a conclusion regarding local crime statistics such as crime reporting and calls for service. However, drawing more people into our community to gamble will bring ancillary crime. This may include increased incidents of DUI. The proliferation of mini -casinos will necessitate expanded response, inspection and monitoring by the Police Department, which will have budgetary implications. The legal questions regarding a local jurisdiction's ability to regulate mini -casinos via zoning will have to be resolved in the courts. At this time, we are recommending an extension of the current moratorium. However, if the legal situation is clarified in favor of local jurisdictions, the Council will need to consider the land use impacts associated with mini -casinos. These impacts will necessitate their placement in a manner that is complementary to existing land uses and that is in harmony with our Comprehensive Plan and zoning code. The following Goals and Policies from the Comprehensive Plan were considered by staff in making a recommendation: Goal 7.3 Overall Land Use Pattern Policy 7.3.1 Maintain a comprehensive land use map that supports the preservation and enhancement of single-family and stable multi -family neighborhoods; eliminates incompatible land uses; and clearly establishes applicable development requirements through recognizable boundaries. Goal 8.3 Interurban Corridor Goal Policy 8.3.1 Develop the north section as an area of regional commercial or light industrial uses; the middle and south sections as a mix of residential, commercial or, in some areas, light industrial uses. Goal 8.2 Pacific Highway Corridor Goal Policy 8.2.3 Improve the street to encourage pedestrian and transit travel, and actively discourage additional lanes in order to protect and enhance the local commercial, residential and pedestrian character. Goal 10.1 Land Use Policy 10.1.1 Recognize the Tukwila Urban Center as a regional commercial/industrial and limited mixed use residential area, whose growth must be nurtured in a motor -vehicle oriented market environment with a balance of pedestrian and transit facilities. This future development area shall allow a market-driven transition in uses and intensities. Policy Options The following policy options are available: 1. Allow all types of gambling activities (including mini -casinos) in all areas where restaurants and taverns are permitted. 2. Impose a City-wide ban on mini -casinos. 4/21/99 C:\DEB\Casino\REPORT9.doc -5- • 3. Allow mini -casinos only in specific geographic areas of the City (i.e., the Tukwila Urban Center and/or portions of Interurban Avenue). Recommendations As stated above, the legal questions regarding a local jurisdiction's ability to regulate mini -casinos via zoning will have to be resolved in the courts. For this reason, we are recommending an extension of the current moratorium at this time. However, if the legal situation is clarified in favor of local jurisdictions, staff recommends that mini -casinos be limited to the Tukwila Urban Center ("TUC") and those portions of Interurban Avenue zoned Regional Commercial Mixed Use ("RCM") or Commercial/Light Industrial ("C/LI"). If the locations of mini -casinos are limited to the TUC and portions of Interurban, then other existing mini - casinos will become legally non -conforming. Staff recommends that any existing or proposed mini -casino located on Tukwila International Boulevard should be formally classified as a legally non -conforming use. The criteria associated with these suggested zoning and locational requirements will serve to limit the number of new mini -casinos in the City. Market forces will have an additional impact on the gambling industry at the micro level, contributing to the success or failure of these new venues and dictating the number that can reasonably survive in any given area. ISSUE #5 At what rate should Tukwila tax these activities? Prior to 1998, the majority of gambling tax revenues received by the City was from punch boards and pull - tabs. Since that time, the amount of gambling tax revenues from card rooms is steadily increasing. The City's gambling tax revenues over the past six years are shown below: Year Total Card Rooms Only 1998 $771,255 $414,160 1997 452,724 97,326 1996 334,746 N/A 1995 427,019 N/A 1994 471,202 N/A 1993 487,933 N/A Although the City has projected $700,000 in gambling tax revenues for 1999, the actuals to -date indicates that the projected total for 1999 will be closer to $1.4 million. According to the City's Finance Director, virtually all of the recent increases are due to mini -casinos. The City now taxes social card games at a rate of 10% of the house -banked gross revenues. The legal limit is 20%. Currently, most cities are at the 10% rate. However, several have raised the rate beyond 10% such as Aubum (12%), Kent (11%), and Federal Way (20%). Although there has been a substantial increase in Tukwila's gambling revenues, care should be given to utilize these revenues for long-term commitments such as 20 -year bond payments, new positions, or any similar long-range effort. There are too many potential issues which could erode this recent surge in revenues such as further changes by the legislature, a decline in gambling revenues due to proliferation of establishments, or other factors which will affect what this non-traditional revenue source might provide in the future. 4/21/99 C:\DEB\Casino\REPORT9.doc -6- • • Based on available research, Tukwila's Human Services Department concludes that we could "expect to see a greater demand on social services within the areas of financial assistance, mental health, emergency services and domestic violence." Over time, a greater demand for these services can be expected "should the City increase the accessibility and availability of gambling activities." Policy Options The Council may wish to consider the, following options: 1. Take no action and retain the 10% gambling tax rate. 2. Increase the gambling tax rate to the maximum allowable by law (20%). 3. Increase the gambling tax rate by half to 15%. In all cases, a portion of the revenues generated from mini -casinos should be targeted to human service impacts (including treatment and prevention) at either a regional or local level. Recommendations Staff recommends that consideration of a tax rate change be deferred until the legal and policy issues are satisfactorily resolved. Additional tax revenues may be needed to support increased human services impacts, provide additional Police Officers and contribute to Capital Improvement projects for the areas affected by mini -casinos. NEXT STEP Staff can provide more specific regulations and code amendments that will accommodate and respond to the policy direction set by the Mayor and City Council. Depending upon the nature of any proposed code amendments, public hearings and review by the Planning Commission may be required. 4/21/99 C:\DEB\Casino\REPORT9.doc -7- • • City of Tukwila John W. Rants, Mayor Department of Community Development Steve Lancaster, Director TO: Mayor Rants FROM: Steve Lancaster DATE: March 10, 1999 MEMO RE: Public Hearing on Ordinance 1867 (Moratorium on Filing of Business Licenses and Development Permits for Food and Drink Establishments Conducting Gambling Activities) On February 1, 1999, the Council adopted the above -referenced ordinance (attached) which will expire on August 1, 1999. A public hearing (which is required within sixty days of the adoption of the moratorium) will be held in Council Chambers on Monday, March 15, 1999. Background Historically, cardrooms were considered to be an accessory use to restaurants and taverns and were regulated as such in Tukwila and other jurisdictions. However, due to a recent change in State gambling laws, these cardrooms are evolving into "mini -casinos" where gambling appears to be the principal use. Tukwila's zoning code does not address this new type of gambling venue. Reasons for Moratorium The purpose of the six-month moratorium is to provide an opportunity to review and research gambling - related issues, to consider code amendments and to hold a public hearing. Due to the manner in which the State gambling law was written, there are questions about the ability of local jurisdictions to regulate mini -casinos, either through zoning or local taxes. In response, Staff has formed an interdepartmental team to research a variety of mini -casino impacts, to network with peer groups in neighboring jurisdictions and to obtain input from the operators of the five mini -casinos located in Tukwila. A team report is being prepared to provide a variety of policy options to the City Council and Administration. We anticipate that the report will contain suggested code amendments pertaining to such areas as zoning and land use, licensing and taxes. Next Step At the conclusion of the public hearing on March 15th, the Council may wish to consider amendments or modifications to the existing moratorium, or simply take no action at this time (in which case the moratorium will continue "as is" through July, 1999). 6300 Southcenter Boulevard, Suite #100 • Tukwila, Washington 98188 • (206) 431-3670 • Fax (206) 431-3665 1 CITY OF TUKWILA OFFICE OF THE CITY CLERK 6200 Southcenter Blvd. Tukwila, WA 98188 IN RE: PUBLIC HEARING NOTICE DATED MARCH 4,1999 AFFIDAVIT OF MAILING I, Robert H. Baker, CMC, Deputy City Clerk, in and for the City of Tukwila, hereby affirm under the penalties 10 of perjury, under the laws of the State of Washington, that on Thursday, March 4, 1999, I deposited the following 11 documents: ONE PUBLIC NOTICE (copy hereby attached) into the U.S. Mail, postage prepaid, first class, addressed 12 to the following persons: 13 1 Mike McCarthy, Manager, Silver Dollar, 14027 Interurban Ave. So., Tukwila, WA 98168-4722; 14 2 Timothy Iszley, President, Silver Dollar, 14027 Interurban Ave. So., Tukwila, WA 98168-4722; 15 3 Keith Vormsberg, President, Golden Nu et, 14025 Interurban Ave. So. Tukwila, WA 98168-4722; 16 17 18 19 20 21 22 23 24 25 Steven B. Down, President, Riverside Inn, 14060 Interurban Ave. So., Tukwila, WA 98168-4723; Greg Bakamis, Manager, Riverside Inn, 14060 Interurban Ave. So., Tukwila, WA 98168-4723; Lily Hsue, President, 21 Club, 14101 Pacific Highway South, Tukwila, WA 98168-4122; and Ron Stanger, Owner, Non Stop Bar & Grill, 12606 Pacific Highway South, Tukwila, WA 98168-2551. Affidavit of Mailing - 1 Robert H. Baker, CMC, Deputy City Clerk City of Tukwila Office of the City Clerk 6200 Southcenter Blvd. Tukwila, WA 98188 (206) 433-1800 City of Tukwila NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN THAT THE TUKWILA CITY COUNCIL WILL HOLD A PUBLIC HEARING ON MONDAY, MARCH 15, 1999, BEGINNING AT 7:00 PM IN THE COUNCIL CHAMBERS AT TUKWILA CITY HALL, 6200 SOUTHCENTER BLVD., TUKWILA, WASHINGTON, TO CONSIDER THE FOLLOWING: ORDINANCE NO. 1867 ESTABLISHING A SIX-MONTH MORA- TORIUM ON THE FILING OF BUSINESS LICENSES AND DEVELOPMENT PERMITS FOR FOOD AND DRINK ESTABLISH- MENTS CONDUCTING GAMBLING ACTIVITIES. ANY AND ALL INTERESTED PERSONS ARE INVITED TO BE PRESENT TO VOICE APPROVAL, DISAPPROVAL, OR OPINIONS ON THIS ISSUE. FOR THOSE UNABLE TO ATTEND THE MEETING IN PERSON, YOU MAY SUBMIT WRITTEN TESTIMONY TO THE CITY CLERK'S OFFICE UNTIL 5 PM ON MONDAY, MARCH 15, 1999. THE CITY OF TUKWILA STRIVES TO ACCOMMODATE PEOPLE WITH DISABILITIES. PLEASE CONTACT THE CITY CLERK'S OFFICE BY NOON ON MONDAY IF WE CAN BE OF ASSISTANCE (206-433-1800 OR TDD 1-800-833-6388). DATED THIS .L /tA- DAY OF JW QA U !� ,1999. CITY OF TUKWILA A< a a A 1 A< JANE E. CANTU, CMC CITY CLERK DATE OF PUBLICATION: SEATTLE TIMES, FRIDAY, MARCH 5,1999 From: Jane Cantu To: Deborah Ritter Date: 3/1/99 10:37am Subject: Re: Public Hearing on 3/15 re moratorium Deb, The City Clerk's office does not usually send out independent notices for public hearings. All public hearings are published in the Seattle Times, faxed to numerous locations, i.e., community center, libraries in City, Chamber of Commerce, Tukwila schools. In the past any specific mailings have been handled by DCD or PW (depending on the issue). In this case, I will send out a copy of the actual public hearing announcement to the 5 casinos. Will this work for you? »> Deborah Ritter 02/26/99 12:40PM »> When you send out notice regarding the Council's hearing on the gambling moratorium, would you send notices to the 5 casinos in Tukwila. Here are the names and addresses: Riverside Inn at 14060 Interurban Avenue South Golden Nuggen at 14025 Interurban Avenue South Silver Dollar at 14027 Interurban Avenue South 21 Club at 14101 Pacific Highway South Non Stop Bar & Grill at 12606 Pacific Highway South Thanks! If you have questions, concerns Jack asked that you contact him at extension 1686. +4254307300 R TON DEU SVCS/PLAN STATE OF WASHINGTON GAMBLING COMMISSION P.O. Box 42400 • Olympia, Washington 98504-2400 • (360) 438-7654 • TDO (360) 438-7638 • FAX (360) 438-8652 • 996 P02 FEB 22 '99 14:34 February 9, 1999 Michael Katterman City of Renton 1055 South Grady Way Renton, Washington 98055 RE: PENDING REQUESTS FOR MINI CASINOS IN RENTON Dear Mr. Katterman: I REC.:, 1 FEB 1 7 1999 1 L____. ECC+ . EC 0,..,.,c We spoke a few weeks ago about the City of Renton's request that .the Gambling Commission not grant pending "applications" to offer house banked games to Diamond Lil's and Schumsky's All City Diner. The law allowing card rooms to bank their games was passed in 1997 and the Gambling Commission has been approving businesses for this under a "pilot study." Under the pilot study, which will end June 30, businesses, which are already licensed to operate card rooms, enter into contracts with the Commission t"o offer house banked games. There is not an "application" and the business does not receive another "license." After July 1, when the study is complete, any business operating house banked games willreceive a new Class F license. As we discussed, a local jurisdiction's ability to "zone" a particular type of gambling business out of some areas, but not all areas, is not clear. It also is not clear whether local jurisdictions can allow gambling non -conforming uses or whether moratoriums on new gambling, which a few jurisdictions have adopted, are permissible. Although we cannot give legal advice, a few statutes in the Gambling Act address local jurisdictions' authority in these areas. For example, RCW 9.46.285 states that the Gambling Act "constitutes the exclusive legislative authority for the licensing and regulation of any gambling activity and the state preempts such licensing and regulatory functions, except to the power and duties of any city, town, city -county, or county which are specifically set forth in this • chapter." In addition, RCW 9.46.295 states that local jurisdictions "may absolutely prohibit gambling activities, but may not change the scope of license, any or all of the gambling activities for which the license was issued." Furthermore, RCW 9.46.070(2) provides that the Gambling Commission cannot "deny a license to an otherwise qualified applicant in an effort to limit the number of licenses to be issued." The Gambling Commission has not taken a formal position on these issues, but we expect that they will likely be litigated by licensees and local jurisdictions 0 +4254307300 iNTON DEV SUCS/PLAN Michael Katterman, City of Renton February 9, 1999 Page 2 i 996 P03 FEB 22 '99 14:34 in the coming months. We have also requested an opinion from our Assistant Attorney General on these issues. In the meantime, we are happy to work with the focal jurisdictions and let them know which card rooms are scheduled for approval for house banking. Diamond Lil's is .scheduled for approval to offer house banked card games at the Commission meeting this week, on Thursday, February 11. The meeting will be at Cavanaugh's at Capitol Lake (formerly Holiday Inn Select and the Westwater Inn), 2300 Evergreen Park Drive in Olympia, phone number (360) 943-4000. The meeting will begin at 1:30 p.m. If Diamond Lii's is approved, they would be able to begin offering house banked games as soon as the contract is signed, which usually occurs the same day. Schumsky's All City Diner- has also requested to offer house banked games, but probably will not be approved until after July 1, assuming that they meet all of the requirements for such games. 1 hope this information is helpful. if you have any questions, please contact me at (360) 438-7654, extension 307. Sincerely, e eiL giuJ Ed Fleisher Deputy Director of Policy and Govemment Affairs Cc: The Honorable Jesse Tanner, Mayor City of Tukwila Washington �/ Ordinance No. / / . AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ESTABLISHING A SIX MONTH MORATORIUM ON THE FILING OF APPLICATIONS FOR BUSINESS LICENSES AND DEVELOPMENT PERMITS FOR FOOD OR DRINK ESTABLISHMENTS CONDUCTING GAMBLING ACTIVITIES, INCLUDING SOCIAL CARD GAMES, PUNCH BOARDS, OR PULL TABS; DECLARING AN EMERGENCY; ESTABLISHING AN EFFECTIVE DATE; AND PROVIDING FOR SEVERABILITY. WHEREAS, the City of Tukwila has adopted a Comprehensive Plan in compliance with the Growth Management Act; and WHEREAS, the City has adopted a Zoning Code and development regulations that are consistent with the Comprehensive Plan; and WHEREAS, most types of land uses are identified and provided for in the City's Zoning Code; and WHEREAS, gambling activities are not addressed in the City's Comprehensive Plan, Zoning Code or development regulations; and WHEREAS, the City of Tukwila desires to ensure that the location of such uses is consistent with its policies and purposes embodied in its Comprehensive Plan, Zoning Code, and development regulations; and WHEREAS, the City of Tukwila also wishes to ensure public input on these issues; and WHEREAS, the City desires to preserve the status quo during a period of time in which it can study such uses and address the same; and WHEREAS, the City desires to preserve the status quo by also requiring that any existing food or drink establishment seeking to expand its operation relating to gambling activities,including social card games, punch boards, or pull tabs, or any food or drink establishment desiring to start such activities, must first apply to the City for a business license for such activities; and WHEREAS, the City desires to preserve the status quo during its time of study by establishing a moratorium on the filing of applications for business licenses and building permits for food or drink establishments 1) desiring to conduct gambling activities, whether as a principal use or as an accessory use, including social card games, punch boards, or pull tabs, or 2) desiring to expand their existing gambling activities, including social card games, punch boards, or pull tabs, whether as a principal or an accessory use; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Findings of Fact. The "Whereas" clauses, 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 2. Moratorium Established. A moratorium is hereby established, effective immediately upon adoption of this Ordinance, upon the filing of applications for business licenses, building permits, development permits or any other permits or approvals required for food or drink establishments seeking to conduct gambling activities, whether as a principal use or as an accessory use, including social card games, punch boards, or pull tabs, and a moratorium on the same for establishments seeking to expand their operations if currently conducting gambling activities, including social card games, punch boards, or pull tabs. "Development permits" shall include, but are not limited to, subdivision approvals, short subdivision MRT-GMBL.DOC 1/28/99 1 approvals, approvals for any and all �:s, site plan review approvals, and building per it development activity resulting in the alter. n of existing premises or the creation of new premises kited to gambling activities, including social card games, punch boards or pull tabs. No such applications shall be accepted during the effective period of this moratorium; Section 3. Business License Required. Any food or drink establishment that has been issued a business license shall be required to apply for an additional business license to conduct gambling activities, including social card games, punch boards, or pull tabs on the premises. In the event of an existing food or drink establishment currently conducting gambling activities, including social card games, punch boards or pull tabs on the premises, no additional business license is required until the following year, unless the existing business desires to expand its current operation, in which event the business must apply for an additional business license for gambling activities. Section 4. Effective Period of Moratorium. The moratorium established by this Ordinance shall become effective as set forth in Section 5 below, and shall continue in effect for six months thereafter unless repealed, renewed or modified by the City Council after a subsequent public hearing and entry of findings of fact. Section 5. Effective Date. This Ordinance, as a public emergency ordinance necessary for the protection of the public health, public safety, public property, or public peace, shall take effect and be in full force immediately upon its adoption. Pursuant to Matson v. Clark County Board of Commissioners, 79 Wn.App. 641, 904 P.2d 317 (1995), underlying facts necessary to support this emergency declaration are included in Section 1 and in the "whereas" clauses, above, all of which are adopted by reference. Section 6. Work Program. The Mayor is authorized to allocate the necessary resources to prepare a work program to address issues related to gambling activities, including social card games, punch boards, or pull tabs, and to develop appropriate proposals for amendment of the Tukwila Comprehensive Plan, Zoning Code and other development -regulations as may be necessary. Section 7. Public Hearing to be Held. A public hearing on the issue of the moratorium shall be held no later than sixty (60) days after the date of adoption herein. Section 8. Hardship Clause. In the event of unusual or unreasonable hardships which may be caused by the imposition of this moratorium, appeal may be made to the City Council for an exemption from the moratorium provisions; provided, unique burdens or unreasonable hardships must be shown to exist by an applicant, and no exemption shall be granted that is contrary to the intent and purpose of this Ordinance. Section 9. Severability. Should any section, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this Ordinance be preempted by state or federal law or regulation, such decision or pre-emption shall not affect the validity of the remaining portions of this Ordinance or its application to other persons or circumstances. PASSED BY THE CITY COUNCIL OF jHE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this / day of. tom _, , 1999. W. Rants, Mayor ATTEST/AUTHENTICATED: f:P C� • ���i-C� E. Cantu, City Clerk APPROVER AS TO FORM: By, Office of the City Attorney FILED WITH THE CITY CLERK: //. 7 /9 9 PASSED BY THEITY COUNCIL: o?/i PUBLISHED: o*�`Jg EFFECTIVE DATE: o7///� ORDINANCE NO.: /86 7, MRT-GMBL.DOC 1/18/99 2 TO: City of Tukwila • • John W Rants, Mayor Department of Community Development Steve Lancaster, Director Mayor Rants OIL— FROM: Steve Lancaster DATE: January 27, 1999 MEMO RE: Proposal for Moratorium on Filing of Business Licenses and Development Permits for Food and Drink Establishments Conducting Gambling Activities At the Council's direction, staff has prepared a draft ordinance which would establish the above - referenced moratorium. A copy of the ordinance is attached for your review. As proposed, the moratorium would last 6 months and would provide an opportunity to review and research gambling - related issues, to consider code amendments and to hold a public hearing. Background Prior to 1997, State law (as well as the City of Tukwila) allowed social card games in taverns and restaurants which primarily engage in the sale of food and drink. In 1997, the State Legislature modified the definition of social card games to include gambling. The law was altered in an effort to help cardrooms compete with tribal casinos, allowing house -banked social card games with professional dealers and bets up to $100. The law also increased the maximum number of tables per establishment from 5 to 15. Since that time, 30 mini -casinos have opened statewide with 83 more waiting for permits. In King County, 10 have opened and 27 are seeking permits. As of August, 1998, the State Gambling Commission approved two mini -casinos in the City of Tukwila: the Riverside Inn and the Silver Dollar. During their January, 1999 meeting, the Gambling Commission approved The Golden Nugget and 21 Club. Staff has leamed that at least three additional casinos are being contemplated in the City of Tukwila. Although Tukwila has allowed some gambling activities in the past (such as social card games, punch boards and pull tabs) these activities are not referenced in the list of permitted uses under the City's Zoning Code. At that time, these gambling activities were considered to be "customarily appurtenant" to taverns, billiard or pool rooms. As stated above, the definition of "social card game" has since been revised and the venues for such activities are now increasingly known as "casinos" or "mini -casinos" (also absent from the City's permitted uses list). Potential Action: In light of the recent increase in the number and size of gambling venues, and the City's lack of regulations specifically addressing them and their location, the City Council may wish to consider placing a moratorium on both the expansion of existing gambling venues and the establishment of new gambling venues. Next Step: If a moratorium is adopted, a public hearing must be held no later than 60 days after the date of its adoption. 6300 Southcenter Boulevard Suite #100 • Tukwila, Washington 98188 • (206) 431-3670 • Fax (206) 431-3665