City of Rockford Code & Regulation Committee met Jan. 13.
Here is the minutes provided by the committee:
I. CALL TO ORDER
| Attendee Name | Organization | Title | Status | Arrived |
| Ann Thompson-Kelly | City of Rockford | Alderman | Absent | |
| Franklin C. Beach | City of Rockford | Alderman | Present | |
| Joseph Chiarelli | City of Rockford | Alderman | Present | |
| Karen Hoffman | City of Rockford | Alderman | Present | |
| Tuffy Quinonez | City of Rockford | Alderman | Present |
1. Committee recommends approval of the agreement with Winnebago County Homes Association for a ROCK House at 1233 Revell Avenue. The Legal Director shall prepare the appropriate ordinance.
Nicholas Meyer, Legal Director for the City of Rockford explained that this agreement is similar to previous agreements that have been entered into with the Winnebago County Homes Association, which is the non-profit arm of the Winnebago County Housing Authority for a ROCK House property. This particular property is located at 1233 Revell Avenue. This type of housing is related to the City's initiative for community based policing, which has been a success to date.
Daniel O'Shea, Chief of Police for the City of Rockford commented that Staff had initially approached the Rockford Housing Authority to see if they were interested in entering into an agreement for a ROCK House, and they were not interested.
Ald. McNeely asked for the definition of ROCK House. Chief O'Shea explained that a ROCK House is a Resident Officer Community Keeper Program. Officers live in the home and maintain a non-traditional 24-hour, on-call day. The officers work within a certain area around the house. Ald. McNeely asked for more detail regarding the reason that Rockford Housing Authority didn't want to be involved. Chief O'Shea stated that Swedish American Hospital was getting rid of the house at the time it was obtained by the Police Department/City of Rockford. The Police Department/City of Rockford did not want to be in the home ownership business. Therefore, both not-for-profit branches of both Housing Authorities were asked if they would take the house. Currently, there is a house located on North Winnebago that is owned by the Rockford Housing Authority's non-profit arm, and there is a house on 15th Street that is owned by the Winnebago County Housing Authority's non-profit arm. The subject property will be owned and maintained by the Winnebago County Housing Authority.
Ald. McNeely commented that she was disappointed that the Rockford Housing Authority didn't have a house that could be used for this purpose.
Ald. Quinonez asked about the length of time that an officer is required to live in the homes before he/she becomes the homeowner. Chief O'Shea explained that the officers never own the homes. They will always be owned by the Housing Authorities. However, the officers are asked to live in the homes for a minimum of two (2) years, and up to five (5) years.
A MOTION was made by Ald. Quinonez to APPROVE said agreement. The motion was SECONDED by Ald. Beach, and CARRIED by a vote of 4-0.
Director Meyer clarified that the Rockford Housing Authority has previously been very cooperative regarding this program but at this time they were not in a position to move forward on this project.
Ald. Tuneberg commented that the subject property is in his ward. In his opinion, the proposed new Rock House will be very beneficial for the safety of everyone that is working and using their facilities. He noted that this house currently is used to host meetings, and it is also being used by the Community Policing Officers as an office. He noted that it has been rehab and is a fully functioning home.
RESULT: APPROVED BY COMMITTEE [UNANIMOUS]
AYES: Franklin C. Beach, Joseph Chiarelli, Karen Hoffman, Tuffy Quinonez
ABSENT: Ann Thompson-Kelly
2. Committee recommends approval of the proposed amendments to City of Rockford Liquor Ordinance - Chapter 3. The Legal Director shall prepare the appropriate ordinance.
Director Meyer explained that there are two (2) amendments that are before the Committee tonight for consideration. The first is an amendment to the existing liquor license ordinance. This would entail creating a new classification of liquor licenses, VGT, which are video gaming terminal associated licenses. This means that if an applicant wishes to have gaming at their establishment, they would be required to apply for the VGT license. Upon renewal, current license holders will be issued a VGT license.
The proposed amendment will also require that adding gaming machines will require a modification to the business' existing liquor license, and will be subject to Council approval. In addition, Director Meyer pointed out that there is a cap on the number of gaming terminals that will be allowed in the City of Rockford. That cap is six hundred (600). We roughly have about four hundred and eight- five (485). Establishments that are looking to increase video gaming machines, would be allowed to increase by one (1) per year in a 12-month period. However, in order to do that, there is a $100 hold per day or essentially net terminal income that would have to be met.
The second amendment is a new article of the liquor code specifically regarding video gaming terminals. It includes how they are applied for, how they are being managed and the minimum threshold. The purpose is to have an objective threshold as to how we're managing the video gaming terminals licenses and permits through our liquor code.
Ald. Quinonez asked about current businesses expanding the number of machines that they have. Director Meyer explained that if they wish to expand their number of machines, they could do that subject to the application process, and Council approval. Ald. Quinonez also asked if there was a way to "hold" some gaming licenses for the west side of town. He mentioned that he noticed that most of the gaming places are on the east side of town. Director Meyer responded that Staff researched other municipalities, specifically non-home rule municipalities, and he didn't see that they held any licenses back for specific areas. He noted that currently, there are enough licenses to go around and Staff didn't see the need to add language regarding holding out licenses for a particular section of town. However, he will investigate whether or not that can be done.
Ald. McNeely also commented that in her opinion, some licenses should be made available to more than one area of town. Director Meyer responded that currently Council can take into consideration where machines are located. He stated that moving forward Council will receive an update on the cap number as applications come forward.
Ald. Hervey commented that she understands the premise of not wanting all the machines in one section of town. However, with the arrival of the new hotel, it is her belief that there will be an expansion of new businesses in the downtown area. She noted that she said "no" to at least three (3) places that could have had gaming machines because in her view, they would have been another liquor establishment, and she is not going to saturate South Main Street with liquor. She noted that there is a South Main Corridor Plan in the works. She also stated that she is not concerned with restaurant businesses that have a bar but she is concerned with South Main being saturated with bar/nightclub businesses or gaming parlors. In addition, she noted that there were some businesses that confessed that they would not be able to meet the alcohol/food requirement. With the proposed cap of six hundred (600), there is room for a lot of businesses to open and get video gaming.
Ald. McNeely asked if the new licenses for liquor and gaming, will have new costs. Director Meyer explained that there will be no change in the cost of the liquor license application fees or the renewal fees.
Ald. Beach commented that in his opinion, this discussion is very important because part of the motivation to move forward with allowing gaming machines was the guarantee that for the first ten (10) years the City would see a certain amount of revenue. However, this was determined by the number of gaming machines allowed. Ald. Beach thanked Staff for crafting a way to put some controls into place while keeping track of the number of machines within the City limits. Director Meyer confirmed that a count can be kept though the liquor licensing process.
Ald. Quinonez asked if Council members will be kept abreast of the number of licenses available. Director Meyer responded that the plan is to update Council members as liquor license applications move through Council for consideration.
Ald. Chiarelli asked about the average number of pouring liquor licenses that are approved and issued by the City of Rockford in a year. Attorney Vaughn did not have that information but noted that most of the licenses that are approved are a change in ownership.
Ald. Tuneberg asked about businesses that are thinking about opening and want to ensure that gaming licenses will be available. Director Meyer explained that if there was a business that had liquor and gaming licenses and the business closed down, and a new business wanted to locate in that spot and wanted gaming, more consideration may be given by Council to the new applicant. Also, the new business would be subject to the new rules.
Ald. Beach asked what the total number looks like in relation to the cap if the current license holders all came to apply for more machines. Director Meyer responded that he does have a spreadsheet but did not have the information in front of him at that time. However, he did say that if that happened, it would take up a substantial portion of the available machines but a majority of the applicants would not be eligible.
Ald. Gasparini asked if there was a timeline related to a business closing up before the business owner loses his/her liquor license. Attorney Vaughn responded that a license holder has six (6) months to re-open at that location. He asked if that time frame was also attached to the gaming machines. Director Meyer stated that the State is notified that the business has closed down and the machines are shut off.
Ald. McNeely asked if a business closes down, and a new business moves into that location, does the new owner have to apply for liquor and gaming licenses in their name. Director Meyer responded that if there is a change in ownership, that application has to be approved by Liquor and Tobacco Advisory Board, and City Council.
RESULT: APPROVED BY COMMITTEE [UNANIMOUS]
MOVER: Tuffy Quinonez, Alderman
SECONDER: Karen Hoffman, Alderman
AYES: Franklin C. Beach, Joseph Chiarelli, Karen Hoffman, Tuffy Quinonez
ABSENT: Ann Thompson-Kelly
III. INFORMATION ONLY
1. 3rd Quarter Report
Third Quarter Report from July-September 2019 on Liquor License Establishments with Video Gaming, subject to 50% Requirement
Attorney Vaughn explained that the 3rd Quarter Report for 2019 is before the Committee. Based on the data from the Finance Department, Fuzzy's and Spinning Slots were below the 50% requirement. She noted that Fuzzy's did increase some but still fell below the requirement. This means that Staff will have to evaluate Fuzzy's and possibly cite them and schedule a hearing before the Liquor Commission. Attorney Vaughn pointed out that this is Spinning Slots' second violation and they will be subject to a fine.
Ald. Quinonez asked about fine amounts. Attorney Vaughn stated that there is not a set number of fines, and because this is Spinning Slots second violation, the fine would be higher.
Ald. Beach inquired about the violation process. Attorney Vaughn explained that for first and second violations a fine is imposed. The fine increases with each violation. If there is a third violation, a hearing is scheduled. Attorney Vaughn further explained that after the occurrence of a violation, Staff notifies the license holder of the violation and the fine amount. If the license holder does not agree and want to have a hearing, they have that option as well.
Ald. Rose asked at what point the City of Rockford revoke a liquor license if there are continued issues with a license holder. Attorney Vaughn stated after the third violation. She noted that Staff has been working with Fuzzy's for a number a months with the help of Ald. Thompson-Kelly. They have had opportunities to go above the 50%, and they have not done that. At this point, Staff will schedule a hearing, which means suspension or revocation. Director Meyer added that license holders are always given opportunities to rectify the situation before hearings are scheduled.
Ald. Beach asked about fine amounts. Attorney Vaughn stated that the first fine is $500, the second fine is $1,000 and if a third occurrence happens, a hearing is scheduled.
With nothing further before the Committee, the meeting was adjourned at 6:46 p.m.
http://rockfordcityil.iqm2.com/Citizens/FileOpen.aspx?Type=12&ID=1761&Inline=True
Alerts Sign-up