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City and operators agree to clean up concession language to comply with ABC rules
Summary
To avoid violating state alcohol rules, staff proposed and the committee supported contract language that sets concessions paid to the city at 15% of the prior year's gross margins; staff said this preserves the revenue stream while complying with ABC regulations.
City attorneys presented a targeted change to concession language to address a gap: current contract phrasing did not conform to ABC requirements, which created legal risk even though Sterling had been remitting concession revenue. The city attorney explained the proposed revision would make the city's annual concession payment equal to 15% of the previous year's gross margins, a structure the city and operators agreed would protect the revenue while complying with state law.
Staff described the change as ‘‘cleanup language’’ that Sterling's counsel and city attorneys worked to craft. Committee members supported the language; staff noted concession revenue is a modest but protected part of PAC funding obligations (staff cited an annual concessions goal of roughly $16,000).
