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Home My WebLink About03/13/2018 COW Minutes COMMITTEE OF THE WHOLE MINUTES - March 13, 2018 - rd 3 Floor, Village Board Room Village Hall, 50 S. Emerson Street 1. ROLL CALL– CALL TO ORDER The meeting was called to order at 7:03 p.m. in the Village Board Room of the Village Hall, 50 South Emerson Street, by Mayor Arlene Juracek. Trustees present included William Grossi, Eleni Hatzis, Paul Hoefert, Richard Rogers, Colleen Saccotelli and Michael Zadel. Staff present included Village Manager Michael Cassady, Village Clerk Karen Agoranos, Executive Assistant to the Village Manager Doreen Jarosz, Communications Director Howard Kleinstein, Community Development Director William Cooney, Building & Inspection Services Director William Schroeder, Fire Chief Brian Lambel, Police Chief John Koziol, Public Works Director Sean Dorsey, Finance Director David Erb, and Administrative Analyst Alexander Bertolucci. 2. APPROVAL OF MINUTES Approval of Committee of the Whole Meeting Minutes of February 13, 2018. Motion by Trustee Hoefert, second by Trustee Saccotelli. Mayor Juracek called a voice vote and the minutes were approved unanimously. 3. CITIZENS TO BE HEARD None. 4. DISCUSSION ITEMS 4.1 Video Gaming Mayor Juracek introduced the Discussion Item – Video Gaming (Gambling). Mayor Juracek stated the Village Board has reviewed video gaming multiple times since the State approved legislation in 2009. The topic was brought back for an open discussion since there is additional experience with video gaming in Illinois and new Village Board members. There is no formal vote and this is only a discussion. The purpose is to listen to the pros and cons of video gaming in order to be able to make an informed decision. Dawn Fletcher Collins, Executive Director, Mount Prospect Chamber of Commerce shared that she has discussed video gaming with Mount Prospect restaurant/bar owners. She stated this is the perfect time for this discussion because time has gone by in other communities where video gaming was previously established. The communities that had video gaming on a trial basis have renewed video gaming without incident. Experience in nearby communities is helpful. Executive Director Fletcher Collins stated that Mount Prospect’s experienced and responsible restaurant owners are looking for another source of revenue. They want to expand, update and continue their existing businesses in Mount Prospect. They see permitting video gaming as only a positive as they do not expect that adding video gaming 3/13/18 Committee of the Whole Page 1 of 4 would be a detriment to existing business. These business owners want to be on a level playing field as restaurants in communities that allow video gaming. They want to stay relevant and competitive in Mount Prospect. Executive Director Fletcher Collins mentioned she discussed video gaming with other Chamber of Commerce Directors. Rolling Meadows Chamber of Commerce Director recently presented video gaming to her city council. Ms. Fletcher Collins highlighted State restrictions on video gaming and as a home rule community the Village Board can tighten restrictions with local provisions. Additionally, any violation pertaining to any gaming devices will result in seized video gaming terminals (VGTs), revoked State liquor license and possible jail time. Restaurant owners are aware of these penalties and are willing to take the risk because they are know they are being responsible. She stated that she visited 15 facilities with video gaming in the last year and half and found none of them to be obnoxious, loud or odd. She presented concerns on video gaming cafés, businesses created solely to collect VGT revenue, and not permitting those business models. Competition amongst restaurants is healthy and now they would be competing against businesses coming here not to be a part of Mount Prospect but to only partake in video gaming. Several restaurants said they would not be interested in VGTs but support our restaurant group and growing a healthy Mount Prospect. Public Comment Billy McFarr, Director of Operations, Ala Carte Entertainment – Moretti’s Ristorante, stated we have ten Moretti’s and nine with video gaming. It is a great source of revenue, puts us on a level playing field as other restaurants and bars in the area and there has been absolutely no negative side. Some communities that tried video gaming on a trial basis have renewed it right away with never any kind of issue. Video gaming is positive for our revenues and keeps us relevant. Raul Romero, Hacienda El Sombrero, mentioned how business slows during the winter. He studied video gaming revenue and the amount that 4-5 VGTs generate could help cover the slow months. Customers come in and ask why we do not have video gaming. Tony Marinakos, Sam’s Place, said we are not just looking out for ourselves. Video gaming is a good thing as a whole. The economy is cyclical and additional revenue sources help. He brought some of his patrons and explained how video gaming is good for the community as a whole and that many municipalities have prospered from it. Ted Papas, Pap’s Bar and Grill stated video gaming proceeds would not sustain our business, but they will help with repairs and reinvestment. Margins are very tight for small businesses and repairs like a new roof or parking lot are a huge burden on us. Video gaming revenue is something to better our properties and that would be better for Mount Prospect too. He also stated that customers have left his establishment to go to one with video gaming. George Gelis, Brick City, echoed comments from Ms. Fletcher Collins presentation and fellow restaurant owners. Video gaming revenue helps with operational issues and costs always increase. We do not have the capability to increase prices. If we increase prices we would probably lose more customers than gain. We need another source of revenue for traffic purposes. Additional income would help towards hiring another manager so the owner does not need to put in 75 – 80 hour weeks. Customers come but leave after 10pm 3/13/18 Committee of the Whole Page 2 of 4 and go to other establishments that have video gaming. Allowing video gaming creates an even playing field and helps with operational costs. The following responses from staff were provided to questions from the Village Board: Multiple police chiefs from communities that permit video gaming shared there was no increase in crime in their communities. Create a separate liquor license for video gaming. This gives the Liquor Commissioner and Village Board an opportunity to review and decide if another video gaming license establishment is appropriate. Establishments with current liquor licenses would need to ask to convert to a video gaming license. Otherwise, a pouring liquor license would qualify an establishment to apply for video gaming with the State. There will likely be new interest from new full service restaurants to open up and might not want to limit video gaming eligibility to only existing restaurants. It is possible to require video gaming establishments to have a minimum of 20 seats or have a certain percentage of revenue from food and non-liquor sales. These additional requirements assist in limiting businesses opening exclusively to capitalize on VGT revenues. Video gaming trial periods in other communities were 12 and 18 months. Area Chamber Executives on local Economic Development Commission Boards share that additional revenue to licensed establishments is used for deferred maintenance or improvements. The State’s Video Gaming Act defines schools as, “an elementary or secondary public school, or an elementary or secondary private school registered with or recognized by the State Board of Education. Public Comment Jan Terry Resident She shared that as a longtime resident she has visited many Mount Prospect establishments. Video gaming is a source of revenue that establishments can use to help tie them over or make improvements. She does not expect an increase in crime. The Police Department is patrolling our streets and keeping an eye on residents. Restaurants are trying to make an enjoyable evening for their customers. She would like to see video gaming approved. Resident He just bought a house in Mount Prospect. While living in Park Ridge neighbors’ homes were broken into but the break-ins were not attributed to gambling. He would like to have the opportunity to gamble a little and not in excess. The Village has the ability to control video gaming and if an establishment does not run it properly they can be eliminated. Mayor Juracek presented the next steps for the video gaming discussion. Staff will draft an ordinance, share with it with the Economic Development Commission, and then bring it to the Village Board for discussion. 5. MANAGER’S REPORT None. 3/13/18 Committee of the Whole Page 3 of 4 6. ANY OTHER BUSINESS None. 7. ADJOURNMENT The meeting adjourned at 8:39 p.m. Alexander Bertolucci Administrative Analyst 3/13/18 Committee of the Whole Page 4 of 4