CITY OF BELL GARDENS
CITY COUNCIL
SPECIAL MEETING
TUESDAY, MARCH 29, 2022
6:00 pm
AGENDA
On March 4, 2020, Governor Newsom proclaimed a State of Emergency in California as a result of the threat of COVID-19. On September 16, 2021, Governor Newsom signed Assembly Bill 361 (“AB 361”), which was effective immediately and
amends Government Code section 54953 to allow a local
legislative body to hold public meetings via teleconferencing and to make public meetings accessible telephonically or otherwise electronically to all members of the public seeking to observe and to address the local legislative body.
Pursuant to
AB 361, please be advised that members of the Bell Gardens City Council may participate in meetings telephonically. The public may view the
meeting and participate in public remotely.
ACCESSIBILITY: If requested, the agenda and backup materials will be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C.
Sec. 12132), and the federal rules and regulations adopted in implementation thereof. Any person who requires a disability-related modification or accommodation, in order to observe and/or offer public comment may request such reasonable modification, accommodation, aid, or service by contacting the City Clerk's office by telephone at 562-806-7704 or via email to [email protected] no later than one (1) hour before the scheduled meeting.
CALL TO ORDER
INVOCATION
PLEDGE OF ALLEGIANCE
ROLL CALL OF CITY COUNCIL MEMBERS
Marco Barcena, Council Member
Alejandra Cortez, Council Member
Lisseth Flores, Council Member
Jorgel Chavez, Mayor Pro Tem
Maria Pulido, Mayor
PUBLIC COMMENTS ON AGENDA ITEMS ONLY
(Three minutes per person)
PUBLIC PARTICIPATION:
Pursuant to Government Code Section 54953, recently amended by AB 361,
and given the current health concerns, members of the public can access meetings live at https://www.bellgardens.org/i-want-to/watch-city-council-meetings . Members of the public may participate
via Zoom by clicking on the City Council's Meeting Calendar on the website. (Be sure to download the Zoom App), the meeting ID is: 813 3236 4343 and the Passcode is: 2021. Comments may also be made via the zoom app by using the "Raise Hand" feature on the zoom app, when it is your turn to speak the host will unmute you. Live comments may also be made by call-in users on zoom by dialing *9, when it is your turn to speak, the user will need to dial *6 to unmute. Comments will not be accepted in the QandA/Chat function of the zoom app. Members of the public may also submit comments electronically for consideration by the City Council by sending them to
[email protected]
. To ensure distribution to the members
of the City Council prior to consideration of the agenda, please submit comments no later than one (1) hour prior to the meeting. Those comments, as well as any comments received after, will be distributed to the members of the City Council and will be made part of the official public record of the meeting. Contact the City Clerk's office at 562-806-7704 or the receptionist's desk at 562-806-7700 for any questions.
DISCUSSION
1. REQUEST FOR CITY COUNCIL APPROVAL FOR A NEW CARD CLUB
LICENSE FOR PARKWEST BICYCLE CASINO, LLC
Parkwest Bicycle Casino, LLC is requesting a new Card Club License due t o the
sale and transfer of the Bicycle Hotel & Casino's gambling operation to Parkwest Bicycle Casino, LLC.
Recommendation:
It is staff recommendation that the City Council by motion:
1 .
Approve and grant a new card club license to Parkwest Bicycle Casino LLC 2 .
Approve and grant a pointholder license to Park West Casinos, Inc., John H.
Park Trust UTD July 18, 2012, John H. Park, and Emily Park 3 .
Approve and grant a key management employee license to John Park and Michael Vasey
4 .
C
onsent to the pledge of membership interests in Parkwest Bicycle Casino LLC and/or the pledge of stock of Park West Casinos, Inc., in each case to secure a loan made to Parkwest Bicycle Casino LLC and/or Park West Casinos, Inc. and 5 .
Adopt the attached Resolution
a
CITY COUNCIL MEMBER COMMENTS
ADJOURNMENT
Posted by: Jane Halstead, City Clerk
Date: March 24, 2022
CITY OF BELL GARDENS
OFFICE OF THE CITY MANAGER
AGENDA REPORT
Item 1.
TO:
Honorable Mayor and City Council Members
FROM:
Michael B. O'Kelly, City Manager
BY:
Scott Fairfield, Chief of Police
Paul Camacho, Lieutenant
SUBJECT:
REQUEST FOR CITY COUNCIL APPROVAL FOR A NEW CARD CLUB
LICENSE FOR PARKWEST BICYCLE CASINO, LLC
DATE:
March 29, 2022
RECOMMENDATION:
It is staff recommendation that the City Council by motion:
1 .
Approve and grant a new card club license to Parkwest Bicycle Casino LLC 2 .
Approve and grant a pointholder license to Park West Casinos, Inc., John H. Park Trust UTD July 18, 2012, John H. Park, and Emily Park
3 .
Approve and grant a key management employee license to John Park and Michael Vasey 4 .
C
onsent to the pledge of membership interests in Parkwest Bicycle Casino LLC and/or the pledge of stock of Park West Casinos, Inc., in each case to secure a loan made to Parkwest Bicycle Casino LLC and/or Park West Casinos, Inc. and
5 .
Adopt the attached Resolution
BACKGROUND/DISCUSSION:
The City has received an application for a new card club license for Parkwest Bicycle Casino LLC (PBC).
The City simultaneously received an application for granting a pointholder interest license and key management employee license to various individuals and entities pursuant to the City of Bell Gardens Municipal Code (BGMC) Chapter 5.25.
PBC recently entered into an agreement to purchase the gambling operations and related assets, and assume the ground lease of The Bicycle Hotel & Casino (Bicycle Casino).
The Bureau of
Gambling Control (Bureau) conducted an initial background investigation report of the proposed transaction.
The Bureau’s investigation did not reveal any disqualifying information that would preclude the issuance of a cardroom business license to the applicants and recommended approval with conditions.
We have been informed that the purchase transaction of the Bicycle Casino and issuance of related cardroom licenses was approved on March 24, 2022, by the California Gambling Control Commission (Commission).
PBC now requires approval by the City Council of the City of Bell Gardens prior to closing the transaction and commencing business operations.
The buyer, PBC, is an entity wholly owned by Park West Casinos, Inc. (Park West, Inc.), which is, in turn, wholly owned by the John H. Park Trust UTD July 12, 2012 (Park Trust).
John Park is the
sole trustee and beneficiary of the Park Trust. Emily Park is successor trustee and contingent beneficiary of the Park Trust.
Michael Vasey is the officer and director of PBC and director of Park West, Inc.
Pursuant to BGMC Section 5.25.040(A), simultaneously with the application for a new card club license, an application for a pointholder license has been submitted for the following individuals and entities with a direct or indirect ownership interest in the card club: Park West, Inc., the Park Trust, John Park, and Emily Park.
In addition, an application for a key management employee license has been submitted for John Park and Michael Vasey.
John Park and Michael Vasey are
existing Bicycle Casino pointholders.
Park West Inc, the Park Trust, John Park, Emily Park and Michael Vasey are endorsed licensees in good standing with multiple gambling establishments and were approved and licensed by the California Gambling Control Commission as part of this transaction.
In connection with the transaction, any individual who holds a valid employee registration for the Bicycle Casino issued by the City of Bell Gardens Police Department, and is directly employed by PBC, may maintain their registration status at the close of the transaction.
Renewal of
registration for registered employees and new employee registration will be processed as set forth in BGMC Section 5.25.050.
Furthermore, any individual who currently holds a valid key management license for the Bicycle Casino issued by the City, and is directly employed by PBC, may maintain their current license status at the close of the transaction. License renewal will be processed as set forth in Section
5.25.041(A).
Additionally, the applicant has requested approval by City Council of the pledge of membership interests in PBC and/or the pledge of stock of Park West, Inc., in each case to secure a loan made to PBC and/or Park West, Inc.
An application fee has been deposited with the application request per BGMC Section
5.25.030(C).
Staff has reviewed and duly considered the information submitted by the applicant, including information submitted to the Bureau and Commission as part of the state licensing application process, for purposes of evaluating the qualifications of applicants for the approval and issuance of the requested licenses and found no grounds for denial.
Therefore, based on the findings,
staff recommends that the City Council grant the requested licenses.
CONCLUSION:
Pursuant to BGMC Chapter 5-25, PBC has requested that the City Council approve and grant a new card club license to Parkwest Bicycle Casino LLC and approve and grant pointholder licenses and key management employee licenses to the individuals and entities named in the application. In addition, the applicant has requested approval of the pledge of membership interests in PBC and/or stock of Park West, Inc., to secure a loan connected to the transaction. It is our understanding, that the Commission has approved the transaction and cardroom business license for Parkwest Bicycle Casino LLC and its owner-licensees.
Staff has reviewed the
information submitted by applicant and determined that the application satisfies the requirements for issuance of licenses.
FISCAL IMPACT:
No fiscal impact.
ATTACHMENTS:
Description
Exhibit A - Resolution No. 2022-26
City of
Bell Gardens Application Letter
APPROVED ELECTRONICALLY BY:
Michael B. O'Kelly, City Manager
Stephanie Vasquez, Assistant City Attorney for Rick R. Olivarez, City Attorney Manuel Carrillo, Director of Finance and Administrative Services
RESOLUTION NO. 2022-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEL L
GARDENS, CALIFORNIA, APPROVING A NEW CARD CLUB LICE NSE
TO PARKWEST BICYCLE CASINO LLC AND APPROVING THE
ISSUANCE OF NEW POINTHOLDER LICENSES TO OWNER-
LICENSEES AND NEW KEY MANAGEMENT EMPLOYEE LICENSES
TO KEY OFFICERS AND DIRECTORS
WHEREAS, pursuant to Bell Gardens Municipal Code (BGMC) Chap ter 5.25 (Card Club License Regulations), approval is requir ed by City Council of the City of Bell Gardens for issuance of a new card club license, a pointholder license and a key management license after due consideration of an ap plication and a background investigation, prior to commencing business operations; and
WHEREAS, the proposed transaction involves the sale and pur chase of the gambling operations and related assets of The Bicyc le Hotel & Casino (Bicycle Casino) by Parkwest Bicycle Casino LLC (PBC); and
WHEREAS, pursuant to BGMC Sections 5.25.030 and 5.25.031, a n application has been submitted for a new card club license for PBC; and
WHEREAS, pursuant to BGMC Section 5.25.040(A) an applicatio n for a pointholder license has been submitted for Park Wes t Casinos, Inc. (Park West, Inc.), the John H. Park Trust UTD July 18, 2012 (Park Trus t), John H. Park, and Emily Park, each with a direct or indirect ownership interest in the card club; and
WHEREAS, pursuant to BGMC Section 5.25.040(A) an applicatio n for a key management employee license has been submitted for John H. Park and Michael Vasey, each a key officer and/or director; and
WHEREAS, any individual who currently holds a valid employe e registration for the Bicycle Casino issued by the City of Bell Garde ns Police Department, and is directly employed by PBC, may maintain their registration st atus at the close of the transaction.
Registration of new employees and registration rene wals for registered employees will be processed in accordance with BGMC Section 5.25.050; and
WHEREAS, any individual who currently holds a valid key man agement license for the Bicycle Casino issued by the City and is di rectly employed by PBC, may maintain their current license status at the close of the transaction. Key management license renewals will be processed as set forth in Section 5.25.041(A); and
WHEREAS, in connection with the transaction and as required by BGMC Section
5.25.042(A), the applicant has also requested appro val by City Council of the pledge of membership interests in PBC and/or the pledge of st ock of Park West, Inc., in each case to secure a loan made to PBC and/or Park West, Inc.; and Resolution No. 2022-26
2 of 4
WHEREAS, as part of the state licensing application process , the California Bureau of Gambling Control (Bureau) conducted an in itial background investigation report of the proposed transaction. The Bureau’s in vestigation did not reveal any disqualifying information that would preclude the i ssuance of a cardroom business license to the applicants and recommended approval with conditions. The City has been informed that the sale and transfer transactio n of the Bicycle Casino and issuance of related cardroom licenses was approved on March 24, 2022, by the California Gambling Control Commission (Commission); and
WHEREAS, the City and its agents, including the Police Depa rtment and the City Manager, reviewed and duly considered the informati on submitted by the applicant, including information provided to the Bureau and th e Commission as part of the state licensing application process, for purposes of eval uating the qualifications of applicants for the approval and issuance of the requested lice nses and found no grounds for denial; and
WHEREAS, the applicants have met the guidelines under BGMC Chapter 5-25; and
WHEREAS, the City and its agents, including the Police Depa rtment and the City Manager, are not aware of any information upon which the applicants can be denied the granting of said licenses or the approval of the pl edge of membership interests and stocks to secure a loan in connection with the transaction; and
WHEREAS, the City Council has considered all information re lated to the application, including any supporting reports by Ci ty staff, and information provided during public meetings; and
WHEREAS, in determining whether to grant a license, the Cit y Council shall be guided by the policy that licenses shall be issued only to those persons who will operate licensed card clubs so as to best protect the publi c health, safety, morals, good order and welfare of the residents of the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bell Gardens as follows:
SECTION 1. The City Council finds that the above recitals are true and correct and incorporate them herein.
SECTION 2. The City Council consents to the transaction and approves and grants a new card club license to Parkwest Bicycle Casino LLC.
SECTION 3. The City Council approves and grants a new pointho lder license to Park West Casinos, Inc., John H. Park Trust, John P ark, and Emily Park; and approves and grants a new key management employee license to John Park and Michael Vasey.
Resolution No. 2022-26
3 of 4
SECTION 4. The City Council consents to the pledge of membersh ip interests in Parkwest Bicycle Casino LLC and/or the pledge of st ock of Park West Casinos, Inc., in each case to secure a loan made to Parkwest Bicycle Casino LLC and/or Park West Casinos, Inc.
SECTION 5. The licenses and consent to transactions approved b y this resolution is based on the representations made by the applicant(s).
SECTION 6. The City Council’s approval is subject to the follo wing conditions: all licensees shall comply with all provisions of BGMC Chapter 5.25; the California Gambling Control Act, including, but not limited to , hours of operation, patron security and safety, location of gaming establishment, wagering limits, and number of tables; the regulations of the California Gambling Control Comm ission; any gambling licenses issued by the California Gambling Control Commissio n; and all other applicable laws governing card rooms.
SECTION 7. The City reserves the right to withdraw this appro val in the event that there is any change or modification made to, o r concerning the conditions of, the documents submitted for consideration by the City.
SECTION 8. To the full extent permitted by law, the applicant s shall indemnify, defend, release and hold City (including its office rs, elected or appointed officials, employees, volunteers, and agents) harmless from an d against any and all liability or claims (including actions, demands, damages, injuri es, settlements, losses, or costs, including legal costs and attorney's fees, (collect ively, “Liability”) by any person, including any applicant or licensee, of any nature, arising out of, pertaining to, or relating to the processing, conditioning or approval of any application submitted relating to the gambling operations of the card club pursuant to th ese license and transaction approvals, and regardless whether the actions or omissions are alleged to be caused by City or applicants or licensees. City grants these approvals in express reliance on applicants’ acceptance of the obligations described in this paragraph.
SECTION 9. The Mayor is hereby authorized to execute this Reso lution signifying its adoption by the City Council of the City of Bell Gardens.
SECTION 10. The City Clerk shall attest and certify to the pas sage and adoption of this Resolution and enter it into the book of or iginal resolutions, and it shall become effective immediately upon its approval.
[Signatures on the following page ]
Resolution No. 2022-26
4 of 4
PASSED, APPROVED AND ADOPTED this 29th day of March 2022.
THE CITY OF BELL GARDENS
________________________________
Maria Pulido, Mayor
APPROVED AS TO FORM: ATTEST:
________________________________ _________________ _______________ Rick Olivarez Jane Halstead
City Attorney City Clerk