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HomeMy WebLinkAbout1992-098 CCR1 1 1 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION NO. 92 -98 RESOLUTION AND CONSENT ORDER IMPOSING CIVIL PENALTY ON LYNBROOK BOWL AND AMENDING THE 1991 BUDGET WHEREAS, the City of Brooklyn Center has issued a liquor license to Steven J. Nelson, Inc. d /b /a Lynbrook Bowl; of which corporation Steven J. Nelson is the president and sole shareholder; and WHEREAS, the City has been notified that certain illegal activities involving gambling are alleged to have occurred on the licensed premises at Lynbrook Bowl; and WHEREAS, such illegal activity allegedly included sports bookmaking in violation of Minn. Stat. H 609.75, Subd. 7, 609.76, Subd. 2 and 609.03(1); sale of tipboards, in violation of Minn. Stat. 349.2127, Subd. 2(a) and 609.03(i); and the sale of numbers in violation of Minn. Stat. 609.755 and 609.76, occurring over a period of years at the licensed premises; and WHEREAS, Brooklyn Center Code 11 -712, paragraph 17, and Minn. Stat. 340A.410, Subd. 5, prohibit such activities on the licensed premises; and WHEREAS, the undersigned has admitted that he was aware of and participated in one aspect of such gambling, specifically the purchase of numbers on sports events, but asserts that he had no knowledge of the sale of tipboards or sport bookmaking activities occurring on the premises, and WHEREAS, the City Council regards such activities as a very serious matter warranting the sanctions hereinafter set forth; and WHEREAS, the Licensee has, to date, maintained a liquor establishment which thas been relatively free of criminal activity, particularly criminal activity relating directly to the sale of alcohol; and WHEREAS, the Licensee has been cooperative in the investigation of this matter, has demonstrated a willingness and desire to work with City staff in resolving this matter without putting the City to the expense of an administrative hearing, has expressed his understanding of the seriousness of the offenses, and has committed to ensuring that such offenses do not recur; and WHEREAS, the Council has determined that this Consent Order, resolving issues relating to sanctions to be imposed by reason of the above- described violations is reasonable, necessary and in the best interests of the public; and WHEREAS, the Licensee has freely agreed to waive a statement of written charges and a hearing thereon and to pay the civil penalty hereinafter described, for the consideration set forth herein. The Licensee acknowledges and agrees that he freely executed this agreement, without threat of criminal prosection, for the purpose of avoiding a public hearing and resolving issues relating to sanctions to be imposed by the City as the licensing authority, pursuant to Minn. Stat. 340A.415. 1 1 RESOLUTION NO. 92 -98 ON THE BASIS OF THE FOREGOING, THEREFORE, IT IS ORDERED AND AGREED AS FOLLOWS: 1. The Licensee will pay to the City Finance Director, within ten days of receipt of written notification of approval of this Consent Order by the City Council the sum of $2,000.00. Said payment shall be appropriated to Account #1350 -4411, Police Department Training. 2. Licensee waives a written statement of charges notice of hearing and hearing to which he is entitled by Minn. Stat. 340A.415. 3. The undersigned admits knowledge of, and involvement in, gambling activities on the licensed premises, to wit: for a number of years, the licensed premises have been used by a Mr. Clifford Hendrickson, for the sale of numbers for sporting events, and the undersigned has allowed such sales to occur, allowed the seller to use office space on the licensed premises for his activities and has purchased numbers from Mr. Hendrickson. 4. The undersigned denies knowledge of or involvement in, any sale of tipboards or sports bookmaking occurring on the licensed premises. 5. The City will impose, as the sole civil sanction for activities listed in paragraph 3 above, a civil penalty in the amount of $2,000.00 payable asset forth in paragraph 1 hereof. This agreement shall apply to those activities described in paragraph 3 hereof which occurred on or before November 6, 1991 on the licensed premises. This agreement shall also apply to those activities described in paragraph 4 occurring on or before November 6, 1991, but only to the extent the activities occurred without the knowledge or involvement of the Licensee or its employees This agreement shall not limit the right of the City to pursue civil remedies or to take any action with respect to the license which is authorized by state law or City Code for any activity to which this agreement does not specifically apply and which is a violation of state law or City Code. 6. In the event of future violations of state law or City Code by Licensee, no additional penalty shall be imposed for unlawful activity covered by this ngreement. However, admissions of unlawful activity described herein may be taken into consideration in determining appropriate sanctions in any future cases. 7. The Licensee has been informed that the City prosecutor has concluded, on the basis of this agreement and other related factors, that he does not intend to bring charges against the Licensee or the undersigned for activities described herein. However, the undersigned understands and agrees on behalf of himself and the Licensee: a. That this agreement does not constitute an agreement not to bring criminal charges for activities described herein; b. That a decision whether to bring any charges rests within the discretion of the City prosecuting attorney, the County attorney, or other authorized law enforcement agencies; c. That the Licensee freely enters into this agreement without any promises from the City that no criminal charges will be brought; 1 RESOLUTION NO. ATTEST: 92 -98 d. That this agreement is entered into for the sole purpose of resolving and settling any potential civil sanctions imposed pursuant to Minn. Stat. 340A.415, and not for the purpose of resolving or settling any potential criminal issues; and e. That in the event criminal charges are brought against the undersigned, the Licensee or any of its employees for activities described herein, Licensee will not contest the validity of this agreement, repudiate, or otherwise challenge this agreement in any way, by reason of the initiation or prosecution of such criminal proceedings. April 27, 1992 Date Deputy Clerk Todd Paulson, Mayor The motion for the adoption of the foregoing resolution was duly seconded by member Jerry Pedlar and upon vote being taken thereon, the following voted in favor thereof: Todd Paulson, Celia Scott, Jerry Pedlar, Dave Rosene, and Philip Cohen; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted.