Ordinance and Licensing Committee forwards arcade code overhaul to council, moves to replace per-machine fees

The Ordinance and Licensing Committee voted unanimously Dec. 8 to send proposed revisions to municipal code 8.04, the city’s amusement-arcade ordinance, to the full Common Council.

Committee members acted after entrepreneur James Cernick, owner-operator of Vintage Vault Arcade in Mukwonago, described a business model that uses a single entry fee and hundreds of restored games and said Waukesha’s current permit structure — $40 per machine plus a $50 premises fee — would be prohibitive for a venue with many machines. “As it sits, the permit is $40 a machine,” Cernick said during public comment, noting that a flat annual fee in nearby Mukwonago was $250.

Staff member Brian, who drafted the proposed ordinance language, told the committee the existing code is “archaic and obsolete” in places and recommended modernizing definitions, eliminating per-machine tracking and moving to a flat fee structure to make small- and mid-size arcades commercially viable. “Our current ordinance would require a fee of $6,000 a year for that,” Brian said while describing the effect of the per-machine calculation for larger facilities. He proposed either placing a fixed annual fee in the ordinance or assigning the amount to the city’s fee schedule, which can be adjusted administratively but requires council approval.

The draft ties the city’s definition of an amusement arcade to Wisconsin’s public-accommodations law and retains the existing exemption for locations with four or fewer amusement games. It also proposes removing provisions that restrict arcades near schools or other arcades, removes certain background-check and recordkeeping requirements that apply to alcohol licensing, and replaces subjective character-based license criteria with a ministerial issuance standard when specified conditions are met (applicant age, complete application, fee paid, and not in default on city charges or taxes).

Committee members asked staff about how the change would apply to bar-with-arcade models and the revenue implications. Brian said class B retail premises (bars) would remain exempt from the arcade license under the draft and that a liquor license is an alternative but carries different fees. On revenue, staff said total license revenue for related items appears to be in the $10,000–$12,000 range annually and that a flat fee between $250 and $350 per year was a plausible target while the finance office refines the estimate.

Alderman Mike Krizine, who referred the matter to committee, described visiting an arcade in Mukwonago and said the entrepreneur’s model included community outreach and occasional free or discounted days for schools and police engagement. “It’s a refreshing business,” Krizine said, urging the committee to consider the potential neighborhood benefits.

Committee member Alicia moved to forward the 8.04 updates to council “as presented,” and a colleague seconded. After brief discussion about the final fee amount and a promise that finance staff would supply a recommended figure before council consideration, the committee voted to send the draft ordinance to the Dec. 16 council meeting for further review.

Votes at a glance - Motion to approve application for James Galinski — passed unanimously (to be placed on council consent agenda). - Motion to approve license for William Horstmeyer — passed unanimously (to be placed on council consent agenda). - Motion to hold Terry Romano’s application — held for next meeting (no action taken). - Motion to approve licenses for Sentek Security Systems and Kumi of Wisconsin Inc. — passed unanimously (to be placed on council consent agenda). - Motion to forward proposed 8.04 updates to the Common Council — passed unanimously; council review scheduled for Dec. 16.

What’s next The committee’s referral sends the draft ordinance and staff recommendations to the full Common Council for formal consideration; staff said the finance office will present recommended fee amounts before council action.