cover
TO: Mayor Richard C. Irvin
FROM: Wendy McCambridge, City Clerk
DATE: February 28, 2018
SUBJECT:
An Ordinance Amending Chapter 6 of the City of Aurora Code of Ordinances Entitled "Alcoholic Liquor".
PURPOSE:
To make changes to coordinate with the changes made to the Video Gaming Terminal License section regarding the regulation of the issuance of video gaming terminals and to provide the criteria to be considered when approving a liquor license be issued by City Council by separate resolution.
BACKGROUND:
The Illinois Video Gaming Act (230 ILCS 40/1) enacted in 2010 enabled video gaming terminals to be allowed in bars and restaurants on their premises as an accessory use. In 2012 the City of Aurora adopted an ordinance establishing that a license is required for video gaming terminals and adopted the Illinois Video Gaming Act in its entirety. An annual fee and application process was established and mirrored the requirements in the Illinois Video Gaming Act. The Act establishes that a business is allowed to operate up to five machines per licensed establishment. The statute defines a licensed establishment as “…any licensed retail establishment where alcoholic liquor is drawn, poured, mixed or otherwise served for consumption on the premises, whether the establishment operates on a nonprofit or for-profit bases (230 ILCS40/5).” The City of Aurora has not adopted or imposed any further regulations or restrictions and the City currently does not regulate video gaming separately from its regulation of alcohol through the issuing of liquor licenses.
DISCUSSION:
A six month moratorium on the issuance of video gaming terminal license was adopted on September 12, 2017 to investigate methods for regulating the licensing of video gaming terminals. During the moratorium the following activities were conducted:
- Review of municipalities statewide who allow for video gaming terminals
- Review of other states who allow for video gaming terminals
- Review of the State of Illinois Video Gaming Act
- A compilation of all regulating activities were compiled and reviewed internally by staff
- Recommendations and options were provided to the Mayor’s Office for review
- Economic impact study was performed
Based upon research and discussion regarding the regulation of video gaming terminals the following changes to the City of Aurora Code of Ordinances includes the following based upon best practices:
Sec. 6-2 - Definitions
- Add new definition of a restaurant based upon the State of Illinois adoption of the same
Sec. 6-7. Term of license: renewals
- Add a section regarding submitting an audit sheet of for regulation of percentage of sales required in the code for restaurants and specialty liquor stores. This would allow for the establishments to self-report the information and the City to review during the annual renewal period.
Sec 6-8. Classification of licenses.
-Add a section for licenses that are ineligible for consideration of video gaming terminal licenses to coordinate with changes in Chapter 5 "Amusements" of the Code of Ordinances. The following license classes would have a clause added that video gaming is not permitted on the premises: Class C- package liquor license, Class D- Auditorium/Theatrical-arts/arts and entertainment studio; Class F- beer and wine restaurant licenses; Class G- package beer and wine license; Class H- golf course/clubhouse license; Class I- specialty basket license; Class J- Hotel (full service); Class M- Hotel (limited service); Class N- specialty package liquor license; Class O- Banquet hall license.
Sec 6-9. Number of license and fees.
-Add information regarding the considerations utilized by City Council in regulating the issuance of liquor licenses. It is best practice to include the reasons being considered when making a determination in issuing an increase in liquor licenses.
IMPACT STATEMENT:
The changes as recommended will provide greater oversight over video gaming terminals and provide greater clarity in the license expectations to the business community seeking licensure through the City of Aurora.
RECOMMENDATIONS:
I request the proposed ordinance be enacted.
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Amending Chapter 6 of the City of Aurora Code of Ordinances Entitled "Alcoholic Liquor".
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, in furtherance of its home rule powers, it is necessary and desirable for the City of Aurora to amend its ordinances regarding Alcoholic Liquor.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: that Chapter 6 of the City of Aurora Code of Ordinances changes per Exhibit A attached be in full force upon adoption.