Community Development
Department
Electronic Game Promotion
Establishments (Internet Cafes)
City Council Public Hearing
2nd Reading
May 1, 2012
Internet Cafes
Background – PLDRB Recommendation
• PLDRB Recommendation:
– Approval of LDC Amendment
– Comments from Board members
• Sunday operating hours should be reduced
• Length of non-conformity (member thinks it should be minimal or none
at all)
• Reasoning for 1,000’ separation from church, schools, and public parks
Community Development
Department
Internet Cafes
Background – Issues from Previous Public Hearing
Sec. 16-239: Definition “Electronic Equipment” means any electronic
device provided by or on behalf of the Operator that is used or adapted for
use to conduct or reveal the results of, a drawing by chance conducted in
connection with the sale of a consumer product or service, sweepstakes or
other game promotion, that displays results by simulating a game or
games ordinarily played on a slot machine and orn other similar electronic
games of chance.
Sec. 16-241: Initial Certificate of Use. At the time of the renewal of
Business Tax Receipt aAll nine Operators who are conducting an Electronic
Game Promotion on the date of the adoption of this Ordinance have 45
days from the effective date of this Ordinance to shall apply for a
Certificate of Use. as provided for in this section.
Any such initial
Certificate of Use shall have a term or duration until September 30, 2013.
Community Development
Department
Internet Cafes
Background – Issues from Previous Public Hearing
Sec. 16-242:
(d) a statement certifying that the establishment and the
electronic game promotion comply with all applicable State
regulations, including but not limited to, Florida Statutes 849.0935
and 849.094, and any necessary supporting documentation.
• Include requirement to post bond or establish a trust account if
the sweepstakes advertise a prize of over $5,000.
• Other requirements for operations which offer $5,000 prize and
above include keeping database of all winners of more than $25.
Community Development
Department
Internet Cafes
Background – Issues from Previous Public Hearing
Sec. 16-251 (e) Establishments shall not have window tinting that reduces exterior
or interior view in a normal line of sight. Window signage shall allow a clear and
unobstructed view from outside the building and in a normal line of sight of the cash
register and sales transaction area.
•
Ordinance prohibits tinting or obstruction of windows that reduces view in a
normal line of sight.
•
Additionally requires a clear line of sight to the cash register and sales
transaction area (The signage section of the ordinance already prohibits signage
between the vertical distance of 4 and 6 feet).
Community Development
Department
Internet Cafes
Background – Issues from Previous Public Hearing
Options:
•
Establishments shall not have window tinting that reduces exterior or interior
view in a normal line of sight. Window signage and tinting shall allow a clear and
unobstructed view from outside the building and in a normal line of sight of the
cash register and sales transaction area.
•
Establishments shall not have window tinting that completely eliminates exterior
view in a normal line of sight. Window signage shall allow a clear an
unobstructed view from outside the building and in a normal line of sight of the
cash register and sales transaction area. (from Internet Café Owner)
• Delete Section
Community Development
Department
Internet Cafes
Background – Issues from Previous Public Hearing
Sec. 16-251 (d) Licensed security guard required on premises from
6 p.m. to closing.
• There is currently no proposed change to this requirement since
there has not been an identified alternate to a licensed security
guard.
Sec. 16-250 (e) Hours of Operation
• There is currently no proposed change to the hours of operation
from (10 a.m. to 2 a.m.) to (8 a.m. to 2 a.m.) as suggested by
representatives from Internet Cafe.
Community Development
Department
Internet Cafes
Other Amendments
Sec. 16-242(a)(3)
(3)
A cCertification by an independent testing laboratory
through laboratory confirmation report that the computer software
used by the Operator to conduct the Electronic Game Promotion
has been tested by an independent testing laboratory that has
verified the manner in which the software works and whether or
not it contains a random number generatorand that it does not
contain a random number generator. The verification shall comply
with all applicable state and local laws, including this Ordinance;
Community Development
Department
Internet Cafes
Background
• Moratorium Expires May 4, 2012
• Direction from previous City Council
Workshops
– Control Location, Development Standards in Land
Development Code Regulations
– Business Operation (including safety, background checks) Code of Ordinance Amendment
Community Development
Department
Internet Cafes
Current Status
• 9 Establishments
• 8 are in COM-2, 1 in COM-1
• Classified as “Retail” use and
allowed in all Commercial
zoning districts and Master
Planned Development (MPD)
Community Development
Department
Internet Cafes-Background
Name
Address
EZ Café
Palm Coast Internet
Café
Lucky Day
Sweepstakes
Neptune Internet
Sweepstakes
Thunderbird Internet
Café (Winn Dixie
Shopping Center)
Copacabana Internet
Café
Sunny Day Internet
Café
Allied Veterans of the
World
The Lucky Palm
# of
terminals
1755 Palm Harbor
Parkway Unit A
24
160 Cypress Point Pkwy.
40
108 Flagler Plaza
1499 Palm Coast Pkwy
NW, Suite C
75
1274 Palm Coast
Parkway SW
1000 Palm Coast
Parkway SW Unit 107
15 Cypress Branch Way
Suite 201
50 Plaza Drive Suite 201
300 Palm Coast Parkway
Suite 9-11
Operating
Hours
(Generally)
10 a.m. to
12 a.m.
10 a.m. to
12 a.m.
10 a.m. to
11 p.m.
30
40
10 a.m. to 12
or 2 a.m.
15
30
98
30
10 to 12 or
2 a.m.
24 hours
12 p.m. to
10 p.m.
Sheriff’s
Incident
Report*
Within 1000’ of following :
Zoning
Public
School Park
Church
2
COM-1
-
-
-
0
COM-2

-

1
COM-2

-
-
0
COM-2

-

2
COM-2

-

1
COM-2

-

0
COM-2

-

1
COM-2
-
-
-
0
COM-2
-
-
-
- Non-conforming with proposed regulations.
*Incidents include: Abandoned Vehicle, Alarm-Commercial Burglar, Disturbance (Verbal or Physical), Indecent Exposure, Intoxication,
Suspicious Vehicle, Person, or Incident.
Community Development
Department
Internet Cafes
• Land Development Code (LDC) amendments
– Definitions:
– “Electronic Game Promotions” a sweepstakes or other game
promotion which utilizes Electronic Equipment … in connection
with the sale of a consumer product or service.
– “Electronic Equipment” electronic device … used or adapted
for use to conduct, or reveal the results of, a drawing by
chance conducted in connection with the sale of a consumer
product or service … that displays results by simulating a
game or games ordinarily played on a slot machine.
Community Development
Department
Internet Cafes
• Land Development Code (LDC) amendments
– Creates exemption for De Minimis Activity
Establishment:
• operated by an organization exempt from federal taxation
under Section 501 (c) of the Internal Revenue Code, and
• with five (5) or fewer electronic or mechanical devices
Community Development
Department
Internet Cafes
• Land Development Code (LDC) amendments
– Zoning Districts
• Prohibit in COM-1,
• Special Exception in COM-2 (Existing Uses “grandfathered”
for Special Exception Use),
• Permit (As-of-right) in COM-3, and
• MPD (Part of Development Agreement)
– Distance Separation
• 1,000 feet from churches, parks, and/or schools
• Measured property line to property line
Community Development
Department
Internet Cafes
• Land Development Code (LDC) amendments
– Parking Standard
• 1 space/4 terminals for stand-alone operations
Community Development
Department
Existing Cafes with 1,000’ Separation Requirements
Palm Harbor Parkway
Along Palm Coast Parkway
1,000 ft. radius around church, school, or public park
500 ft. radius around “café”
Flagler Plaza
Community Development
Department
Internet Cafes
Code of Ordinance Amendment
• Definitions
• Consistent with LDC definitions
• Permitting
• Limit number in City (9)
• Operation requires Certificate of Use
Community Development
Department
Internet Cafes
Code of Ordinance Amendment
• Certificate of Use Application
– To be renewed annually with Business Tax Receipt,
– $1,000 processing fee,
– Application to include:
• Inventory of equipment,
• Level 2 Background check for owners and operators of
establishments (Statewide and National criminal history
check),
• Certification that software has been tested
Community Development
Department
Internet Cafes
Code of Ordinance Amendment
• Certificate of Use Application to include:
– Affidavit with following:
• Identity of operator/owners including names of principals,
• Statement of whether any individuals listed as operator or
owner has been convicted of felony (previous 5-years)
• Verification of distance separation from school, church
and/or public park,
– Certificate review within 60-days
Community Development
Department
Internet Cafes
Code of Ordinance Amendment
• Eligibility of Operator:
– Permit denied for following:
• Convicted or plead no contest within five (5) years of
application to a:
– Felony under Florida Law,
– Misdemeanor involving fraud, and
– Misdemeanor involving exploitation of vulnerable adult
(defined by statutes),
– Permit revoked under this ordinance within previous three
(3) years,
– Application materials are incomplete or untruthful
Community Development
Department
Internet Cafes
Code of Ordinance Amendment
• Denial of Permit:
• Operator denied may reapply
• Operator may appeal to Hearing Officer within 15 calendar
days
• $500 processing fee
Community Development
Department
Internet Cafes
Code of Ordinance Amendment
• Restrictions on Transfer of Certificate of Use
• Public Nuisance
• May be declared public nuisance if site is used on more
than two occasions (founded complaint) within a 6-month
period:
– Assault, burglary, theft, robbery by sudden snatching,
distribution of controlled substances & money
laundering.
– “Founded Complaint” – Review of facts shows
preponderance of evidence that a crime has occurred.
Community Development
Department
Internet Cafes
Code of Ordinance Amendment
• Inspection of Premises
• Signage Requirements
• Interior Signs
– Permit (Certificate of Use, Business Tax receipt)
– Rules for electronic game promotions (rules, prize
tables, odds)
– “State and local law prohibits … requiring entry fee …
No donation or contribution required. …You may obtain
free entries upon request …”
Community Development
Department
Internet Cafes
Code of Ordinance Amendment
• Limitations on Operation of Business
–
–
–
–
–
–
No sale, serving, or consumption of alcohol,
No one under 18 permitted,
No purchase required to enter electronic sweepstakes,
Limitation on number of equipment (100),
No increase in number of equipment,
Hours of operation (10 a.m. to 2 a.m., 7 days a week).
Community Development
Department
Internet Cafes
Code of Ordinance Amendment
• Safety and Security Requirements
•
•
•
•
Security camera system,
Drop safe,
Silent alarm,
Licensed security guard at night (6:00 p.m. to closing)
(Licensing through Department of Agriculture),
• Transparency of windows for law enforcement.
– Compliance with this section within 60 days of
adoption of ordinance.
Community Development
Department
Internet Cafes
Code of Ordinance Amendment
• Penalties
• Civil penalties not to exceed $500/violation
• Each day the violation exists shall constitute separate
violation
Community Development
Department
Internet Cafes - Recommendation
• Staff Recommends Approval
• PLDRB will review Land Development Code Amendment
April 18.
Community Development
Department