Batavia is looking at changes to its code that could limit the number of video gambling establishments in the city.
The city’s code already has some rules on video gambling, but revisions currently being discussed by the City Council could further restrict it, including a possible cap on the number of establishments in the city allowed to operate with video gambling.
The topic was discussed by the Batavia City Council’s Committee of the Whole in May, after the city’s plan commission requested regulations be considered to avoid the “over-proliferation of gaming in the downtown,” a city memo included in Monday’s Committee of the Whole meeting agenda said. The committee in May requested staff look at changes to the city code concerning video gambling and bring them forward for discussion.
There are currently 13 video gambling licenses in the community — with eight in the downtown district, as well as another application that’s currently pending, per the city. Among the establishments that offer video gambling are restaurants, bars, fraternal organizations and a few other venues.
A proposed draft ordinance could limit the city to issuing a maximum of 14 licenses citywide, and cap the number of licenses allowed in the downtown mixed-use district to nine, to account for the pending application.
The proposed limitations could also place restrictions on things like how much separation is required between a gambling establishment and places like churches and schools.
The draft ordinance also includes language, similar to the liquor code, to require there be no open building or zoning violations on the property to grant a video gambling license, and that no payments are owed to the city, the city memo on the proposed ordinance notes. The draft text also includes language allowing the mayor, who serves as the liquor commissioner, to revoke a license for repeated violations of underage gambling or underage drinking, or a combination of both.
These regulations, as well as other related questions regarding the proposed ordinance, were addressed in a lengthy discussion at a Batavia City Council Committee of the Whole meeting Monday.
Kicking off the discussion, Ald. Abby Beck, who said she was in favor of limiting the number of establishments able to have video gambling, first asked the council about the possibility of capping the number of establishments, a proposal that appeared to have a slim majority of support as of Monday’s discussion.
Alds. Tony Malay and Bob White both spoke of an overall cap being a beneficial means of enforcement because it gives the city more discretion when it comes to approving or not approving a video gambling license, and could be adjusted up or down at a later date.
Ald. Dustin Pieper similarly said a cap would be a “reasonable” way to enforce what the council is aiming to do, while Ald. Jim Fahrenbach noted that the city already has video gambling, and a cap wouldn’t cause it to go away entirely.
Also speaking in support of a cap, Ald. Kevin Malone characterized the matter as a sort of land use issue, saying that if a business says they will fail without gaming machines, that means the city is essentially helping a business that may not be able to stay afloat otherwise.
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And Ald. Alice Lohman said that she’s heard from residents that people do want limits and don’t want to see more gambling in the city.
But other members of the City Council disagreed.
Ald. Tim Lanci, for example, said he’s supportive of looking at where the machines are, the signage they have and maybe how many can be in a certain area. But an “all-out limit,” he said, is a “touchy subject.”
Ald. Christopher Solfa called the proposal “micro-managing,” and said he hasn’t seen a proliferation of gambling establishments in the city at this point.
According to Alds. Alan Wolff and Robin Barraza, limits on video gambling in the city should be determined by the market.
And Ald. Jennifer Baerren asked what issue the city was trying to solve by this ordinance, pointing to concern about not having enough foot traffic in the downtown area.
“We’re continuously talking about this,” Baerren said, “and I think that there are other things that we need to be focused on to help make our downtown vibrant.”
The question of restrictions on how much separation is required between a gambling establishment and places like churches and schools also generated considerable discussion at Monday’s meeting.
Beck explained that state law already limits how close video gambling can be to schools and churches, but that the city could add places like daycares, parks and libraries to that list. She also noted that the city having its own rules on how close video gambling can be to certain types of land uses essentially takes some control away from the state and establishes clear rules on the issue.
So, Beck asked the council members whether they supported a 100-foot separation requirement, and about the types of land uses that video gambling machines must be a certain distance from. She also brought up the matter of allowing existing establishments to be allowed to continue operating in their locations, even if they are ultimately in violation of new requirements the city institutes.
Over the course of the discussion, there was some talk of permanent grandfathering for existing establishments, or potentially allowing one sale of an existing property with the new rules not applying and then video gambling not being allowed beyond that.
A number of council members expressed support for some kind of setback requirement, but there was some disagreement over how to potentially grandfather existing establishments.
While a few council members, including Baerren and Solfa, said they didn’t want to see further regulations. White said he didn’t see the necessity of separation requirements if there’s a cap on the overall number of licenses, because the city would have discretion on approving them.
Lanci, meanwhile, asked what kind of criteria there would be if the city just instituted a cap, and asked how a cap changes the city’s rules if applications for gambling licenses come before the city, anyway.
To the latter question, Community and Economic Development Director Scott Buening explained at the meeting that, as it stands now with video gambling uses considered a “conditional use,” there are specific findings the city has to have to grant or not grant a conditional use. With a cap, approval is essentially at the city’s discretion.
Expressing support for the regulations generally, Beck said the city needs to focus on the health of business in the city overall, rather than an individual business. She argued that needing gambling machines to stay open is “the market sending that restaurant a message,” noting that there are resources available to help struggling businesses.
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While Malone said the ordinance being proposed is “threading the needle” between those opposed to gambling and those who don’t want to restrict it, and suggested that a cap is a good way to regulate it.
The council members also discussed possible penalties for violations of the city’s video gambling provisions, which is also part of the proposed revisions to the city’s code.
In response to the council members’ discussion, Beck suggested the regulations be split into two items. The council ultimately agreed on coming back to consider two separate ordinances addressing the cap and the 100-foot setback requirement from schools and churches and grandfathering for existing establishments.