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Council approves on/off sale malt license for downtown business; video lottery authorization denied
Summary
The council approved an on/off-sale malt (alcohol) license for GP2 LLC at 406 Main Ave Suite D but denied a separate application for video-lottery authorization; council discussion cited downtown density of video-lottery establishments and proximity to family-focused areas.
The council approved an on/off-sale malt license for GP2 LLC to operate at 406 Main Avenue Suite D but later denied the associated application for video-lottery authorization after council discussion on density and proximity to family-focused downtown amenities.
City staff said the site’s video-lottery authorization had been inactive since 2013 and that the city code currently caps video-lottery authorizations at 30 until the city’s population reaches a specified threshold. The applicant, Kevin (surname transcribed variably), described the space as a remodel of an alley-area portion of a downtown building and said public access to the proposed lounge and gaming area would be controlled through an alley entry with gates and locked interior doors; he said hours of operation for video lottery machines would be 6 a.m. to 2 a.m. The applicant said security gating and secondary exits (for emergency egress) are included.
Council members raised concerns about density: staff noted about 11 video-lottery establishments in the downtown core and councilmembers emphasized proximity to family-oriented features such as the Bunny Trail downtown walking route and a children’s tutoring/play space that is adjacent to the building. City staff reminded the council that state statutory criteria (SDCL 42-7B-60 and related sections) apply and listed factors the council must consider, including density, proximity to residences and whether minors frequent the area.
Roll calls: the malt license vote passed (yes votes recorded for Neimeyer, Rasmussen, Becker, Tiltonburn, Avery and Doran). The subsequent vote on the video-lottery authorization failed by tie (ayes: Rasmussen, Becker, Neimeyer; nays: Specker, Tiltonburn, Doran), after which staff said the applicant could seek further information about resubmission timing under state law.
The applicant was told staff (Bonnie, city clerk) would follow up on next steps following the denials and procedural questions about resubmittal timeframes.
