1. Community Development Department Electronic Game Promotion Establishments (Internet Cafes) City Council Workshop April 10, 2012

2. Community Development Department Internet Cafes Background Moratorium Expires May 4, 2012 Direction from March 13, 2012 City Council Workshop –Proceed with regulations in Land Development Code and Code of Ordinance

3. 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)

4. Community Development Department Internet Cafes-Background - Non-conforming with proposed regulations. *Incidents include: Abandoned Vehicle, Alarm-Commercial Burglar, Disturbance (Verbal or Physical), Indecent Exposure, Intoxication, Suspicious Vehicle, Person, or Incident. NameAddress # of terminals Operating Hours (Generally) Sheriff’s Incident Report* Zoning Within 1000’ of following : School Public ParkChurch EZ Café 1755 Palm Harbor Parkway Unit A24 10 a.m. to 12 a.m. 2COM-1 --- Palm Coast Internet Café160 Cypress Point Pkwy.40 10 a.m. to 12 a.m.0COM-2 - Lucky Day Sweepstakes108 Flagler Plaza75 10 a.m. to 11 p.m. 1COM-2 -- Neptune Internet Sweepstakes 1499 Palm Coast Pkwy NW, Suite C30 0COM-2 - Thunderbird Internet Café (Winn Dixie Shopping Center) 1274 Palm Coast Parkway SW40 10 a.m. to 12 or 2 a.m. 2 COM-2 - Copacabana Internet Café 1000 Palm Coast Parkway SW Unit 10715 1COM-2 - Sunny Day Internet Café 15 Cypress Branch Way Suite 20130 10 to 12 or 2 a.m. 0COM-2 - Allied Veterans of the World50 Plaza Drive Suite 20198 24 hours1COM-2 --- The Lucky Palm 300 Palm Coast Parkway Suite 9-1130 12 p.m. to 10 p.m.0COM-2 ---

5. 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.

6. 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

7. 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 (As-of-right, Part of Development Agreement) –Distance Separation 1,000 feet from churches, parks, and/or schools Measured property line to property line

8. Community Development Department Internet Cafes Land Development Code (LDC) amendments –Parking Standard 1 space/terminal for stand-alone operations

9. Community Development Department Existing Cafes with 1,000’ Separation Requirements Along Palm Coast Parkway Palm Harbor Parkway Flagler Plaza 1,000 ft. radius around church, school, or public park 500 ft. radius around “café”

10. 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

11. 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

12. Community Development Department Internet Cafes Code of Ordinance Amendment Certificate of Use Application to include: –Affidavit with following: Identity of operator and all 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

13. 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

14. 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

15. 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. –“Founded Complaint” – Review of facts shows preponderance of evidence that a crime has occurred.

16. 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 …”

17. 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).

18. 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.

19. 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

20. Community Development Department Internet Cafes Discussion