1. Ordinance 1349 - 2nd Reading - Definition of Casino17II[I] A
FROM:
SUBJECT:
of Kalispell
Post Office Box 1997 Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 • FAX (406) 758-7758
Honorable Mayor and City Council
PJ Sorensen, Zoning Administrator
Chris Kukulski, City Manager
Casinos (Ordinance 1349—Definition amendment)
MEETING DATE: March 20, 2000
BACKGROUND: This item is the second reading of the ordinance. There is no change from
the first reading which occurred March 6, 2000.
At the present time, there are 28 casinos and other facilities with gaming machines within
the city limits of Kalispell. The distinction between "casinos" and "facilities with gaming
machines" is critical because the zoning ordinance draws such a distinction, which leads to a
problem that we are trying to address through a housekeeping amendment to the zoning
ordinance.
"Casino" is presently defined as:
An establishment whose primary use or activity is gambling, either in the form of
gambling machines (video poker, keno, etc.), card games, or other licensed
gambling activity. A casino will normally have beverage and restaurant facilities as
ancillary uses. In all instances, an establishment will be considered a casino for the
purpose of these regulations if any one of the below characteristics apply:
(a). The establishment is referenced as a "casino' by signage or by name;
(b). More than one card table is on the premise;
(c). Fifteen or more gambling machines are on the premise; or
(d). The predominant source of income is from gambling revenue.
Generally, an establishment will not be considered a casino when the premise
contains no live card games, has less than six (6) gambling machines, and the
gambling devices are clearly incidental to the primary use of the establishment.
A "casino' may be located within the B-2 and B-4 zones with a conditional use permit.
The definition has created numerous problems and loopholes. First, all someone needs to do is
put up signs for "GAMING/POKER/KENO" and leave "casino' out of the name to avoid
subsection (a). Subsections (b) and (c) are easily circumvented, either intentionally or not, by
starting operation with one number of machines and then adding more later. Subsection (d) is
next to impossible to apply in practice since it would require access to tax forms or bookkeeping
records. Furthermore, the exclusionary language at the end of the definition only serves to further
complicate the matter.
Since bars are allowed in not only the B-2 and B-4 zones, but also in the B-3 and B-5
zones as permitted uses and the I-1 as a conditional use, many businesses which most people
would label as casinos are not under the definition. Rather, we have applied the label "accessory
gaming facility" when a bar operates with 14 machines as opposed to 15. Since it would not be a
casino per se, the bar could operate the gaming machines in the B-3, B-5, and I-1 zones. Once in
place, it is not uncommon for the business to then add machines and have a full blown casino. It
is fairly simple for them to do so because the state license will allow up to 20.
The present definition is convoluted and very difficult to apply in practice. Therefore, we
proposed a housekeeping amendment to change the definition. The planning board recommended
approval. We have since drafted a proposed ordinance which would change the definition to "An
establishment that offers any form of legalized gambling authorized under Title 23, Chapter 5,
Parts 1 (except for Section 23-5-160 regarding shaking dice or shake -a -day games) and 3 through
6, Montana Code Annotated, either as a primary use or as an accessory use. Organizations and
facilities designated as exempt under state law shall not be classified as casinos." The definition is
slightly different from the version proposed by the planning board; References to the Montana
Code were added and exceptions were clarified in order to reflect concerns brought up by the
Council at the workshop.
The new definition eliminates the machine -counting and sign references in favor of a more
straight -forward definition: if there is gambling, it is a casino. The change will add much more
consistency to the treatment of gambling uses as well as produce a more practical and workable
application of the ordinance.
RECOMMENDATION: A motion to adopt the ordinance would be in order.
FISCAL EFFECTS: None.
ALTERNATIVES: As suggested by the Council.
Respectfully submitted,
PJ Sorensen
Zoning Administrator
Chris Kukulski
City Manager
Report compiled March 15, 2000
ORDINANCE NO. 1349
AN ORDINANCE AIAMMING § 27.37.010 (44), KALISPELL ZONING ORDINANCE,
BY AMENDING THE DEFINITION OF CASINO AND DECLARING AN EFFECTIVE
DATE.
WHEREAS, the City of Kalispell has submitted a written
request to amend § 27.37.010 (44) of the Kalispell
Zoning Ordinance, by amending the definition of
casino, and
WHEREAS, the request was forwarded to the Kalispell City -
County Planning Board and Zoning Commission by the
Flathead Regional Development Office after having.
been evaluated under §27.30.020, and
WHEREAS, FRDO evaluated the requested text amendment and
recommended, per Report #KZTA-99-6, that the text
of the Kalispell Zoning Ordinance, Definitions, be
amended as to the definition of 'casino," and
WHEREAS, the Kalispell City -County Planning Board and Zoning
Commission recommended that the text of the
Kalispell Zoning Ordinance, Definitions, be amended
as to the definition of "casino," and
WHEREAS, the City Council has reviewed the FRDO Report and
the transmittal from the Kalispell City -County
Planning Board and Zoning Commission and hereby
adopts the findings made in Report #KZTA-99-6 as
the Findings of Fact applicable to this Ordinance.
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, AS FOLLOWS:
Section I. The City of Kalispell Zoning Ordinance,
Ordinance No. 1175, is hereby amended to read
as follows:
Section 27.37.010. Definitions
(44) Casino. An establishment that offers any form of
legalized gambling authorized under Title
23, Chapter 5, Parts 1 (except for
Section 23-5-160 regarding shaking dice
or shake -a -day games) and 3 through 6,
Montana Code Annotated, either as a
primary use or as an accessory use.
Organizations and facilities designated
as exempt under state law shall not be
classified as casinos.
Section II. All parts and portions of the Kalispell Zoning
Ordinance not amended hereby shall remain the
same.
Section III. This Ordinance shall take effect thirty (30)
days from and after its final passage by the
City Council.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, MONTANA, THIS DAY OF MARCH, 2000.
Wm. E. Boharski
Mayor
Attest:
Theresa White
City Clerk