2. Discussion on CasinosREPORT TO:
IImilm
SUBJECT:
Citv 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
MEETING DATE: February 14, 2000 (workshop)
BACKGROUND: 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 through 6, Montana Code Annotated, either as a primary use or as an
accessory use."
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 would also
place more control over the spread of gaming into the hands of the council because an
establishment with any gambling would be reviewed as a conditional use, which leads to the
second proposed amendment to the zoning ordinance.
If the definition is changed without any further amendment, new gaming machines would
only be allowed in the B-2 and B-4 zones. At present, in addition to those two zones, gaming
machines are allowed in the B-3, B-5, and I-1 zones subject to the problematic limitations
resulting from the current definition. The gaming use is allowed in those situations because it
would be accessory to a bar, which, as previously stated, is a permitted use in the B-3 and B-5
zones and a conditional use in the I-1.
Thus, we have also proposed a change in the zones in which casinos are allowed. The
planning board recommended that casinos (as newly defined) would be placed in the same
category as "Bars, Taverns, Cocktail Lounges, and Clubs" with the new category being
designated as a conditional use in the B-2, B-3, B-4, B-5, and I-1 zones. Since gambling is
generally associated with bars, it makes sense to place those uses in the same category.
Taken together, these two proposed changes will add much more consistency to the
treatment of gambling uses, close off some gaping loopholes, produce a more practical and
workable application of the ordinance, and provide more control to the Council over the manner
in which new casinos are developed.
There may be other ideas the Council may have in regard to casinos. Several good
suggestions came up during previous work sessions. However, it is our opinion that the best
method for approaching the issue is to focus on the definition and classification amendments
first. Then, if the Council wishes to investigate other more specific requirements, we could add
a third amendment. That amendment could add a section to Chapter 27.35 of the zoning
ordinance entitled "Additional Requirements for Specific Conditional Uses." This procedure
will allow us to clean up the problems with the present ordinance before reviewing more
comprehensive changes.
RECOMMENDATION: Both proposed ordinances should be placed on the agenda for the
next council meeting for approval.
FISCAL EFFECTS: There are not necessarily any direct fiscal effects of the change.
Nevertheless, gaming is of substantial interest to the city due to the large amount of revenue it
produces for the City. These changes provide the potential for some restriction of new machines
in the future, which could have an impact on revenue.
ALTERNATIVES: As suggested by the Council.
ATTACHMENTS: Proposed Ordinance (definition change)
Proposed Ordinance (classification change)
Respectfully submitted,
PJ Sorensen
Zoning Administrator
Chris Kukulski
City Manager
Report compiled February 10, 2000
ORDINANCE NO.
AN ORDINANCE AMENDING § 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 through 6, Montana
Code Annotated, either as a primary use or as an accessory use.
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 , 2000.
Wm. E. Boharski
Mayor
Ewmffil
Theresa White
City Clerk
ORDINANCE NO.
AN ORDINANCE AMENDING §§27.14.020, 27.14.030, 27.15.020, 27.15.030, 27.16.020,
27.16.030, 27.17.020, 27.17.030, AND 27.18.030, KALISPELL ZONING ORDINANCE, BY
DESIGNATING "BARS, TAVERNS, COCKTAIL LOUNGES, CLUBS AND CASINOS"
AS A CONDITIONALLY PERMITTED USE IN THE B-2 (GENERAL BUSINESS), B-3
(COMMUNITY BUSINESS), B-4 (CENTRAL BUSINESS), B-5 (INDUSTRIAL/
COMMERCIAL), AND I-1 (LIGHT INDUSTRIAL) ZONES AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, the City of Kalispell has submitted a written request to amend the use
classification of casinos in the Kalispell Zoning Ordinance, 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 classification of casinos be amended, and
WHEREAS, the Kalispell City -County Planning Board and Zoning Commission
recommended that `Bars, taverns, cocktail lounges, clubs and casinos" be designated as a
conditionally permitted use in the B-2 (General Business), B-3 (Community Business), B4
(Central Business), B-5 (Industrial/Commercial), and I-1 (Light Industrial) zones, 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 by the Kalispell City -County Planning Board and Zoning Commission 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 27.14.020, Permitted Uses
(10). Barber and beauty services.
(i-211).Boat sales, new and used.
Section H. The City of Kalispell Zoning Ordinance, Ordinance No. 1175, is hereby
amended to read as follows:
Section 27.14.030, Uses Which May Be Permitted By Conditional Use Permit
(3). Assembly halls/coliseums/stadiums/convention hall facilities.
(4). Bars, taverns, cocktail lounges, clubs and casinos.
(45). Campground/RV Park.
(�}-asino.
(6). Community residential facilities for eight or fewer persons. (Ordinanace
No. 1209)
Section III. The City of Kalispell Zoning Ordinance, Ordinance No. 1175, is hereby
amended to read as follows:
Section 27.15.020, Permitted Uses
(8). Barber and beauty services.
ar, tavern; cockLaH IV
tinge,clubs.
(f09). Candy products manufacture, retail on premise.
Section IV. The City of Kalispell Zoning Ordinance, Ordinance No. 1175, is hereby
amended to read as follows:
Section 27.15.030, Uses Which May Be Permitted By Conditional Use Permit
(1). Apartments, accessory. (Amended Ordinance No. 1195)
(2). Bars, taverns, cocktail lounges, clubs and casinos.
(23). Community center/gym/swim pools -operated by public/quasi-public
Section V. The City of Kalispell Zoning Ordinance, Ordinance No. 1175, is hereby
amended to read as follows:
Section 27.16.020, Permitted Uses
(6). Barber and beauty services.
(97). Candy products manufacture, retail on premises.
Section VI. The City of Kalispell Zoning Ordinance, Ordinance No. 1175, is hereby
amended to read as follows:
Section 27.16.030, Uses Which May Be Permitted By Conditional Use Permit
(5). Automobile service station (see definition).
(6). Bars, taverns, cocktail lounges, clubs and casinos.
(67). Bus passenger terminal buildings, transit terminals.
(8). Drive-in banking facility.
Section VIL The City of Kalispell Zoning Ordinance, Ordinance No. 1175, is hereby
amended to read as follows:
Section 27.17.020, Permitted Uses
(13). Barber and beauty services.
ki t). Bar, tavern; cocktail
(f-514).Bedding/carpet/upholstery - manufacturing/cleaning/renovating.
Section VHL The City of Kalispell Zoning Ordinance, Ordinance No. 1175, is hereby
amended to read as follows:
Section 27.17.030, Uses Which May Be Permitted By Conditional Use Permit
(1). Assembly halls/coliseums/ stadiums/convention hall facilities.
(2). Bars, taverns, cocktail lounges, clubs and casinos.
(23). Bus passenger terminal buildings, transit terminals.
Section IX. The City of Kalispell Zoning Ordinance, Ordinance No. 1175, is hereby
amended to read as follows:
Section 27.18.030, Uses Which May Be Permitted By Conditional Use Permit
(3). Auto wrecking/junk yards (see definition).
(4). . Bars, taverns, cocktail lounges, clubs
and casinos.
(5). Bulk storage of liquified propane and similar flammables.
Section X. All parts and portions of the Kalispell Zoning Ordinance not amended
hereby shall remain the same.
Section XI. 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 , 2000.
Wm. E. Boharski
Mayor
Attest:
Theresa White
City Clerk