After initially floating a possible $500 privilege license fee per video gaming machine within the city limits in March, the Council requested a survey at existing establishments to determine the number and location of the machines in Clinton. A preliminary study by the Clinton Police Department showed there were 89 machines as of the end of April.
While the survey was being conducted, city staff also compiled a list of fees imposed for video gaming machines by more than 20 other municipalities, from small population (Maggie Valley, Rowland) to large (Wilmington, Winston-Salem). Some charged per machine, some per location; others had fees for both. The fees ranged from Rowland’s $300 per machine to Leland’s $3,000 per machine (Wilmington has proposed a similar fee).
Most fees were between $1,000 and $3,000 per machine.
That is where Councilman Steve Stefanovich said Clinton’s should be, making a motion that the city enact a privilege license fee of $2,500 per video gaming machine, with up to 30 machines allowed in a single establishment. With 89 video gaming machines currently identified, a fee of $2,500 per machine would act to rake in $222,500 annually.
In March, the Council approved a zoning amendment defining what constituted an “electronic gaming operation” and establishing minimum setbacks those establishments had to maintain from a residential building (500 feet), as well as any church, school, daycare, library, public park, recreation area or movie theater (1,000 feet). Also, no alcoholic beverages shall be served or consumed on the premises of the gaming operations, according to the regulations.
Modifying zoning and imposing fees is all part of what city manager John Connet called “a new phase” municipalities are entering in regulating gaming machines.
“The law does not allow us to ban those machines, so (in March) we proposed regulations,” said Mayor Lew Starling, who noted the fees take that a step further. “(The privilege license fee) is to compensate the city for the extra time and money it takes to monitor these.”
Among other stipulations placed on such operations is that they only operate from 8 a.m. to 5 p.m. Monday through Friday. The maximum number of machines was set at 12, but was amended earlier this week so that those already identified as part of the survey could remain.
Of the 89 machines identified as part of that survey, there were 25 at Triple S Café on North Boulevard; 24 at The Clinton Business Center and four at The Extension, both on Warsaw Road; three at the Sprit Store on College Street; two at Cliff’s Fast Stop on Lisbon Street; and one at R and A Mini Mart on Southeast Boulevard. Thirty others have already been permitted at H&L Enterprises on Northeast Boulevard, but are not yet in operation.
Clinton police Chief Mike Brim submitted the list to city officials. He said The Clinton Business Center, located at 409-B Warsaw Road, was robbed in March. At the end of last month, a man pulled a gun near Triple S Café, he said.
“As more money is transacted,” said Brim, “we see that more of this could happen.”
The privilege license fee would help offset the cost in monitoring the businesses and the activity surrounding it, Starling said.
In March, city staff proposed that fee be set at $500 per machine. No fee was approved by Council at that time, and the matter was tabled so more information could be obtained — until Tuesday, when Stefanovich made his motion.
“I think $500 is too low,” said Stefanovich. “Look at the survey and the list of fees, there’s a good 15 to 20 municipalities charging more. Many municipalities are obviously seeing there’s an issue there. Frankly, I feel that $2,500 per machine would be in line and I make that motion.”
The motion was seconded by Councilwoman Jean Turlington and passed unanimously.
Chris Berendt can be reached at 910-592-8137, ext. 121, or by email at sicrime@myclintonnc.com.
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