100 Parkers Mill • Oswego, IL 60543 • (630) 554-3618 Website: www.oswegoil.org

Posted:Date: ___________Time: ___________Place: ___________ Tina TouchetteInitials: ___________ Village Clerk

NOTICE AND AGENDANOTICE IS HEREBY GIVEN

THAT A COMMITTEE OF THE WHOLE MEETINGOF THE OSWEGO VILLAGE PRESIDENT AND BOARD OF TRUSTEES

WILL BE HELD ON

June 20, 2017

6:00 PMLocation: Oswego Village Hall, 100 Parkers Mill

A. CALL TO ORDER

B. ROLL CALL

B.1. Motion to Appoint Trustee Pam Parr as the Acting Chair for the June 20, 2017Committee of the Whole Meeting.

C. CONSIDERATION OF AND POSSIBLE ACTIONS ON ANY REQUESTSFOR ELECTRONIC PARTICIPATION IN MEETING

D. PUBLIC FORUM

E. OLD BUSINESS

F. NEW BUSINESS

F.1. Report and Discussion Regarding 2017 Retail Contraction

1

Memo_RetailRetraction_6.20.2017.docx

F.2. Video Gaming Criteria

Memo-Video Gaming Criteria.docxExh. A-Pre-Qualification Video Gaming License Application.docxExh. B-VG Talking Points_CCole.docxExh. C- VG Fee Comparisons.docxExh. D-2016 Video Gaming Revenue Report.pdfExh. E -2017 Video Gaming Revenue Report.pdfExh. F-Map_Liquor and Gaming-.pdf

G. CLOSED SESSION

G.1.a. Pending and Probable Litigation [5 ILCS 120/2(c)(11)]b. Appointment, Employment, Compensation, Discipline, Performance, or Dismissal of

Personnel [5 ILCS 120/2(c)(1)]c. Collective Bargaining, Collective Negotiating Matters, Deliberations Concerning Salary

Schedules [5 ILCS 120/2(c)(2)]d. Sale, Lease, and/or Acquisition of Property [5 ILCS 120/2(c)(5) & (6)]

H. ADJOURNMENT

2

100 Parkers Mill • Oswego, IL 60543 • (630) 554-3618Website: www.oswegoil.org

AGENDA ITEM

MEETING TYPE: Committee of the Whole

MEETING DATE: June 20, 2017

SUBJECT: 2017 Retail Contraction Report

ACTION REQUESTED:

Presentation and discussion about the 2017 Retail Contraction.

BOARD/COMMISSION REVIEW:

N/A

ACTION PREVIOUSLY TAKEN:

Date of Action Meeting Type Action TakenN/A N/A N/A

DEPARTMENT: Economic Development

SUBMITTED BY: Corinna Cole, Economic Development Director

FISCAL IMPACT:

BACKGROUND:

The purpose of this agenda item is to inform the Village Board of current trends in the retail sector and potential steps to mitigate the resultant negative effects.

Since mid-January 2017, news outlets and business publications have given top billing to the widespread retail contraction occurring nationwide. The trend is observed in the many retailers filing for Chapter 11 bankruptcy and/or shuttering hundreds of stores. In Oswego, Bed Bath Beyond closed due to poor year-over-year sales. Rue 21 has filed for Chapter 11 and begun closing its 1,200 stores nationwide. Elsewhere stores such as JC Penney, Macy’s, Sears, HH Gregg, Gander Mountain, The Limited, and Radio Shack have announced bankruptcies and closings. Correspondingly, many business analysts cite December 2016 as the holiday season in which online sales matured as a fully disruptive force in the retail space.

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Report and Discussion regarding 2017 Retail Contraction6/20/20172 | P a g e

DISCUSSION:

Causes: Provided below are the reasons that together are seen as causing the contraction in the market:

Demographics: In April 2016, the Pew Research Center published an article noting that the Millennial Generation is now the largest living generation in America. As Millennials “come of age” and exercise increasing buying power, their preferences and habits will be reflected in the economy. Generally speaking, Millennials have embraced technology and the convenience of shopping online. Likewise, they demonstrate a preference for spending money on experiences, such as restaurant dining or going out, over purchasing consumer goods. Millennials tend to carry significant student loan debt which has been shown to deter purchasing power and, most notably, delay their first home purchase until later than previous generations.

The Great Recession: In response to the recession, consumers began practicing frugality and never fully returned to their pre-recession consuming habits. Consumer growth has remained slow following the recession.

The Internet: It has become easier and, in many cases, cheaper to purchase goods online. This trend will continue to grow as Amazon Prime increases its popularity and clothing retailers improve the ability to return clothes that don’t fit. Online retailing reduces overhead for retailers and likewise will cause job losses for retail employees.

Over-built retail: The most commonly cited explanation is that companies vastly overbuilt retail supply in the late 1990’s and early 2000’s. The oversupply of retail stores strains many companies’ bottom line as they are forced to compete for a smaller and smaller share of the in-store purchasing.

Other contributing trends:o Changes in consumer taste: Younger shoppers are eschewing “fast-fashion”

clothes in favor of better made apparel. This impacts stores such as Rue 21, The Limited, Forever 21, etc.

o Co-Tenancy Clauses: Many big box retailers build their business models on being located near other retailers that attract their shared target demographic consumer. Such retailers build “co-tenancy clauses” into their leases that allow them to break lease and leave a shopping center if their desirable co-tenant goes out of business or otherwise leaves. This creates a domino effect, particularly in in-door malls

o Show-rooming: This is a shopping phenomenon where consumers go to a store to see and learn about an item and then purchase it more cheaply online. Brick-and-mortar stores are vulnerable to this practice if they do not match the online

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Report and Discussion regarding 2017 Retail Contraction6/20/20173 | P a g e

price and/or provide a unique retail experience that increases the value to the consumer of purchasing the item in the store.

o Poor corporate management practices: Some of the major retailers closing stores have been plagued by terrible corporate management decisions over the past decade. For example, Sears and Kmart relied on outdated business models that neglected to incorporate online sales until far too late. Likewise, Radio Shack split its business model between small appliances and cell phones without an emphasis on positive customer service. Customers shifted their purchases away from Radio Shack to other, more convenient retailers

Positive Commercial Retail Trends: Although the general trend in retail is grim, there are several notable positive trends.

Restaurants and experiential retail: As stated above, millennials and recession weary consumers are spending additional money in eating out and going out with friends. Restaurant-spending continues to outpace other consumer goods. Malls are rethinking their tenant mix to include movie theaters, children’s play centers, arcades, etc. to attract consumers that want something unique to do.

Omnichannel retailing: Harvard Business Review writes “The omnichannel strategy hinges on the idea that providing a seamless shopping experience in brick-and-mortar stores and through a variety of digital channels not only differentiates retailers from their peers, but also gives them a competitive edge over online-only retailers by leveraging their store assets.” Essentially this is the antidote to “show-rooming”. Consumers interact with a store on all of its platforms- both retail and virtual – and feel invested in purchasing items through that store. The same HBR article states that consumers spend more in-store and online at retailers that practice omnichannel retailing.

Commercial tenants that reflect consumer’s taste: Certain traditional brick-and-mortar stores are well performing, such as Ulta, fast causal restaurants, and various fitness concepts, like Orangetheory. Notably, these businesses tend to capitalize on experiences, whether getting make-up done in the store to eating or working out.

Smaller foot print stores: Online sales mean stores must lower overhead in order to compete. Aldi and other grocers have seen success with smaller stores. However, that trend is not isolated to just retail. The new Longhorn Steakhouse in Oswego is a new, smaller model being piloted throughout the mid-west.

Suggestions for an Oswego Response:

Cultivate experiences: Commercial real estate experts agree almost categorically, that the more that those shopping centers include unique “experiences”, the more insulated

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Report and Discussion regarding 2017 Retail Contraction6/20/20174 | P a g e

they will be from the larger retail contraction. Oswego should actively recruit into its shopping centers unique experiences such as BJ’s Shooting and, potentially, family fun-centers. It would be interesting to determine whether Video Gaming Parlors fall into the “experience” category that fuel most of the positive tenanting in commercial retail space.

Similarly, at the global retail convention RECon, a commercial developer told Mayor Johnson and me that Oswego’s biggest goal and strength was the unique and “authentic” experience of our downtown. The feeling of “authenticity” matters since every shopping center developer is seeking to replicate a downtown life-style center. However, our historic architecture, our unique shops, our people, make Oswego feel like a destination and will attract visitors. In this developer’s opinion, the downtown retail is not a tax-dollar driver; instead it is the lure to Oswego that will prompt spending in the big box stores along Rt 34.

Embrace our market: Oswego should recruit those expanding businesses that specifically cater to our population. Because of the difficult market, few businesses can be persuaded to “take a chance” on Oswego if our demographics are outside their traditional catchment. We should spend our resources recruiting the businesses that want, and will be supported by, our market.

Curate our shopping centers: Oswego should consider incentives for new, desirable tenants or existing tenants that are struggling to stay. Because of co-tenancy clauses, it may do Oswego greater harm to allow a commercial tenant to vacate a space.

Carefully observe similar markets: Oswego has experienced only muted effects of the retail contraction. Compared to areas of Aurora and St. Charles, Oswego’s 10% commercial vacancy rate is modest. Oswego’s retail supply may be in better proportion than other neighboring markets and its population more inclined to shop in the area. By observing other areas, we may contextualize Oswego’s success/failure in terms of commercial tenants and target new tenants that may replicate their success here.

Be willing to get creative: The disruptive effect of the internet on traditional retail is only beginning. As we carefully observe the market, it may be helpful to try new approaches to vacant retail space, such as pushing for nontraditional retail uses or incentivizing new experiences.

Additional Reading:

https://www.theatlantic.com/business/archive/2017/04/retail-meltdown-of-2017/522384/

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Report and Discussion regarding 2017 Retail Contraction6/20/20175 | P a g e

https://www.forbes.com/sites/paularosenblum/2017/05/01/five-reasons-why-the-retail-apocalypse-is-a-red-herring/#31fad6561fad

http://www.businessinsider.com/the-retail-apocalypse-has-officially-descended-on-america-2017-3

http://www.pewresearch.org/fact-tank/2016/04/25/millennials-overtake-baby-boomers/ http://money.cnn.com/2016/01/26/technology/amazon-prime-memberships/index.html

https://hbr.org/2017/01/a-study-of-46000-shoppers-shows-that-omnichannel-retailing-works

RECOMMENDATION:

Discuss the retail contraction’s impact on Oswego and potential responses to mitigate its effect.

ATTACHMENTS:

N/A

4850-0117-0759, v. 1

7

100 Parkers Mill • Oswego, IL 60543 • (630) 554-3618Website: www.oswegoil.org

AGENDA ITEM

MEETING TYPE: Committee of the Whole

MEETING DATE: June 20, 2017

SUBJECT: Video Gaming Criteria

ACTION REQUESTED:

Consideration of future video gaming establishments.

BOARD/COMMISSION REVIEW:

N/A

ACTION PREVIOUSLY TAKEN:

Date of Action Meeting Type Action Taken5/7/2013 Regular Village

Board MeetingApproved Ord. No. 13-25; Video Gaming

12/17/2013 Regular Village Board Meeting

Approved Ord. No. 13-81; Video Gaming-Restrictions on Operations (barrier requirements)

11/17/2015 Regular Village Board Meeting

Approved Ord. No. 15-78; Video Gaming; Issuance of licenses approved by the Village Board on a case

by case basis5/16/2017 Regular Village

Board MeetingVillage Board requested additional discussion

regarding video gaming

DEPARTMENT: Clerks Office

SUBMITTED BY: Tina Touchette

FISCAL IMPACT:

N/A

BACKGROUND:

On May 7, 2013 The Village Board approved video gaming in the Village of Oswego. As part of the approval, the Board chose to only allow ten (10) gaming licenses in the Village. At the November 17, 2015 Board meeting, the Village Board lifted the ten (10) license limitation and chose to approve all future video gaming licenses on a case by case basis with applicants presenting information for Board consideration and approval. On May 16, 2017, the Village Board approved a liquor and video gaming license for Milly’s Café. This will be the third video gaming only establishment to open since 2015 (PD’s Wine & Spirits, Stella’s and Milly’s Café).

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Video Gaming Criteria6/20/20172 | P a g e

DISCUSSION:

Pre-qualification Application:

There has been a recent up-tick in local interest in starting video gaming cafés in Oswego. Over the past year, staff has been made aware of fourteen (14) potential video gaming applicants. Of the fourteen (14), eleven (11) establishments are what would be considered video gaming cafés. To assist staff and the Village Board in processing these potential applicants, the Village Clerk has drafted a Pre-Qualification Application (Exhibit “A”). The application provides requirements and solicits them to provide information about the proposed establishment. The following is a summary of the pre-qualification application:

Requirements – Current Business with Valid Village of Oswego Issued Liquor License, Certificate of Occupancy and Business Registration

Must have a valid Class A, C, D, E or G Village of Oswego liquor license Must meet revenue restrictions for Class C and D liquor licenses (must receive more than 50% of its

gross revenue from the sale of food) May require written permission from property owner Some corporate businesses may require permission for video gaming depending on the

location/proximity to their business Interior layout and plans/renderings for the gaming area No window or neon signage is allowed

Requirements – New Business

Must have a valid Class A, C, D, E or G Village of Oswego liquor license Must meet revenue restrictions for Class C and D liquor licenses (must receive more than 50% of its

gross revenue from the sale of food) Must obtain zoning approval from the Community Development Department 630-554-3622 Site plans, interior layout and plans/renderings, exterior layout and plans/renderings, signage, etc.

will be handled through the Community Development Department as part of their primary business (ex. bar, restaurant, club, golf course)

May require written permission from property owner Some corporate businesses may require permission for video gaming depending on the

location/proximity to their business Interior layout and plans/renderings for the gaming area No window or neon signage is allowed Certificate of Occupancy is required which includes permits and inspections from the Village of

Oswego, Fire Protection District and Kendall County Health Department Must complete and obtain a Business Registration through the Village of Oswego

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Video Gaming Criteria6/20/20173 | P a g e

Requirements – New Business (Video Gaming Cafes)

Must have a valid Class A Village of Oswego liquor license A Class A Retailer’s license authorizes the licensee to sell alcoholic beverages without the need

to adhere to revenue restrictions. Alcoholic beverages may be sold by the drink or in package for consumption on or off the specified premises.

A class A liquor license may require approval of a special use permit through the Community Development Department

Must obtain zoning approval from the Community Development Department 630-554-3622

May require written permission from property owner Some corporate businesses may require permission for video gaming depending on the

location/proximity to their business Provide a copy of the site plans Provide a copy of the Interior layout and plans/renderings Provide a copy of the Exterior layout and plans/renderings Provide signage plans Provide a copy of the food and beverage menu No window or neon signage is allowed Certificate of Occupancy is required which includes permits and inspections from the Village of

Oswego, Fire Protection District and Kendall County Health Department Must complete and obtain a Business Registration through the Village of Oswego

Background Information:

On May 4, 2017, a memo drafted by Economic Development Director Cole was provided to the Village Board regarding video gaming in Oswego (Exhibit “B”). In her memo, she pointed out considerations such as location, experience and design & quality as talking points (Exhibit “B”)that the Village Board should take into account regarding video gaming establishments. Oswego has a much lower concentration of games per resident than other Kendall County municipalities. Staff recently spoke to a representative of the Clerk’s office in Sandwich, who indicated they will be approving additional gaming machines, in the near future, which will push their numbers to 60+.

A fee comparison study was recently completed (Exhibit “C”).

Non-home rule communities, per the Illinois Gaming Board, are only allowed to charge for the gaming terminals; and can charge for no more than $25 per terminal As a home-rule community, Oswego currently charges $50

Batavia, Elmwood Park, Homer Glen and St. Charles charge $1,000 for the license fee and additional fees for the terminals Oswego currently charges $200

6 municipalities prohibit gaming entirely

9 municipalities do not allow video gaming cafés

2 municipalities have a limit on the number of licenses allowed10

Video Gaming Criteria6/20/20174 | P a g e

RECOMMENDATION:

Open for discussion. Staff is seeking further direction with regards to video gaming establishments.

ATTACHMENTS:

Exhibit “A”- Pre-Qualification Application

Exhibit “B”- VG Talking Points

Exhibit “C”- Fee Comparisons

Exhibit “D”- 2016 Revenue Report

Exhibit “E”- 2017 Revenue Report

Exhibit “F”- Maps

11

100 Parkers Mill • Oswego, Illinois 60543 630.554.3259

Website: http://www.oswegoil.orgregistration@oswegoil.org

Exhibit “A”

PRE-QUALIFICATION APPLICATION FOR VIDEO GAMING (Please return completed application to the Village Clerk)

Applicant Name: Driver’s License Number:

Address:

Telephone number: Alternate Number:

D.O.B.: Place of birth:

Business Name:

Business Address:

Mailing Address (if different):

Email Address:

Nature of Business (Principle Business Activity):

Location for which the license is requested:

Business Phone Number: Liquor Classification:

IBT No.:

No. of Video Gaming Terminals to be placed at above establishment (Max. Limit of 5):

No. of Redemption Machines to be placed at above establishment (No Max Limit):

Will there be food service? ___ Yes ___ No Will the food be prepared on-site? ___ Yes ___ No

Do you own or operate other businesses with video gaming? ___ Yes ___ No If yes, provide the date of opening and address of the business.

Date: Address:

______________ _____________________________________________________________________

______________ _____________________________________________________________________

Has any license previously issued to you by the State, Federal or local authorities been revoked?___ Yes ___ No If yes, state the reasons and date of revocation: _____________________________________

12

Requirements – Current Business with Valid Village of Oswego Issued Liquor License, Certificate of Occupancy and Business Registration

Must have a valid Class A, C, D, E or G Village of Oswego liquor license Must meet revenue restrictions for Class C and D liquor licenses (must receive more than 50% of its gross revenue

from the sale of food) May require written permission from property owner Some corporate businesses may require permission for video gaming depending on the location/proximity to their

business Interior layout and plans/renderings for the gaming area No window or neon signage relating to video gaming is allowed

Requirements – New Business

Must have a valid Class A, C, D, E or G Village of Oswego liquor license Must meet revenue restrictions for Class C and D liquor licenses (must receive more than 50% of its gross revenue

from the sale of food) Must obtain zoning approval from the Community Development Department 630-554-3622 Site plans, interior layout and plans/renderings, exterior layout and plans/renderings, signage, etc. will be handled

through the Community Development Department as part of their primary business (ex. bar, restaurant, club, golf course)

May require written permission from property owner Some corporate businesses may require permission for video gaming depending on the location/proximity to their

business Interior layout and plans/renderings for the gaming area No window or neon signage is allowed Certificate of Occupancy is required which includes permits and inspections from the Village of Oswego, Fire

Protection District and Kendall County Health Department Must complete and obtain a Business Registration through the Village of Oswego

Requirements – New Business (Video Gaming Only)

Must have a valid Class A Village of Oswego liquor license Must obtain zoning approval from the Community Development Department 630-554-3622

May require written permission from property owner Some corporate businesses may require permission for video gaming depending on the location/proximity to their

business Provide a copy of the site plans Provide a copy of the Interior layout and plans/renderings Provide a copy of the Exterior layout and plans/renderings Provide signage plans Provide a copy of the food and beverage menu No window or neon signage is allowed Certificate of Occupancy is required which includes permits and inspections from the Village of Oswego, Fire

Protection District and Kendall County Health Department Must complete and obtain a Business Registration through the Village of Oswego

In the event there has been a change of ownership a new Pre-Qualification Application for a Video Gaming License must be completed.

13

Fees:

Liquor application; includes one (1) background check- $250 Additional background checks- $100 each Class A Retailer’s License- $1,800 annually Class C Restaurant License- $1,500 annually Class D Beer and Wine License- $1,200 annually Class E Fraternal Society or Club License- $750 annually Class G Golf Course/Clubhouse License- $1,200 annually Business Registration- $50 initial fee; $25 annual renewal Contact the Building & Zoning Department regarding the fees associated with the Certificate of Occupancy 630-554-2310

Video Gaming license fee- $200 annually Video Gaming terminal fee- $50 each annually Video Gaming redemption machine- $50 each annually

*All fees are non-refundable.

Instructions: Complete the liquor license application and background check. Upon approval of the background check, the applicant must present their concept/business plan to the Village Board

at a regularly scheduled Committee of the Whole meeting. Meetings are held on the first and third Tuesday of the month at 6:00 p.m.

The Village Board will decide whether the applicant can move forward through the process of obtaining approval. If approval to move forward is obtained, staff will draft ordinances to be presented and approved at a regularly

scheduled Village Board meeting Meetings are held on the first and third Tuesday of the month at 7:00 p.m. The applicant will be required to attend the meeting to answer additional questions from the Village Board.

Once approved, the applicant may continue through the process of obtaining, State liquor and video gaming licenses, certificate of occupancy and business registration.

_________________________________________________________________________________________________

Pursuant to Titles 3 & 6 of the Village of Oswego Code of Ordinances, I hereby certify that no changes have occurred or have been made since my last application and that I have read the above Pre-Qualification Application, and that all information contained therein is true and correct.

PENALTY: Any person found liable/guilty by a preponderance of the evidence of a violation of Village Code, relating to this licensing, in an administrative/judicial hearing shall be subject to a class IV fine, plus applicable hearing costs, as provided in subsection 1-4-3(G) of this code.

I understand any misrepresentations submitted may be cause for denial. The undersigned does hereby state under penalties of perjury that all statements in the foregoing application are true and correct; that the person or persons applying for video gaming are all of good moral character and have not been convicted of a felony; that if the applicant is approvedhereunder, the undersigned will review the Village of Oswego Code of Ordinances, the State of Illinois Compiled Statutes and the Laws of the United State of America and is not disqualified by reason of any matter or thing contained in this document.

Signed: Date: (Authorized Signature)

Title: 14

DRAFT MEMORANDUM

To: Village President and Village Board

CC: Dan Di Santo, Village Administrator

From: Corinna Cole, Economic Development Director

Date: May 4, 2017

Re: Video Gaming in Oswego

Purpose: To consider the impact of Video Gambling (“VG”) in Oswego and identify variables that influence VGS relative success

History: In 2009 Illinois passed the “Video Gaming Act” which allowed for the presence of video gambling machines in certain establishments. Following suit, Oswego’s Village Board voted in May 2013 to allow Video Gambling at the request of local businesses which felt their success was contingent on the extra revenue that such machines reliability generate.

Business Rational: In Oswego and other communities, the reasons cited for allowing video gambling are generally as follows:

The extra revenue helps local businesses and fraternal organizations remain open and competitive

Allowing VG maintains the community’s overall competitive position relative to others that allow video gambling; i.e., ensures potential players’ dollars are spent locally

Increased revenue to municipalities from the 5-6% share of the proceeds

The typical concerns raised regarding VGS include:

The potential for such establishments to generate crime

Poor “curb appeal” and non-family-friendly atmosphere in the businesses and shopping centers with video gambling

Fostering addictive gambling behavior

Corinna J. Cole Economic Development Director

100 Parkers Mill, Oswego, IL 60543 (630) 554-3618 Fax (630) 554-3306 Website: http://www.oswegoil.org

Exhibit “B”

15

Oswego VG Regional Position: Below is a table comparing Oswego’s VG with neighboring municipalities which also allow VG. Note that table shows calendar year 2016 and that the recently opened Oswego Stella’s was not operational during that period.

Oswego has a much lower concentration of games per resident (766 people/game) than other Kendall County municipalities listed, but half that of Aurora (1449 people/game). The average municipal tax per game is competitive with other municipalities at $1,973/per game. On a numbers basis, Oswego is maintaining its competitive position with neighboring communities.

Talking Points: In is important to balance Oswego’s community feel with the potential economic benefits of VG. To that end, the following considerations regarding VG establishments should be included when examining future VG applications:

Crime: Chief Burgner has stated that there has been no additional or notable crime associated with video gaming establishments in Oswego. Furthermore, the Chief is in the process of reaching out to other Kendall County law enforcement to determine if other communities’ experience has differed.

Location: VG establishments may be considered on a site specific basis. This approach allows a nuanced understanding of the hyper local economy of a shopping center, which may have stubborn vacancies that could benefit from the right VG tenant or, conversely, has historically been easily filled with other businesses. Likewise, the Board may consider whether the surrounding businesses are a good mix for VG.

Track record: It is notable that some of the most successful VG establishments have other locations with carefully branded appearances. The Board can therefore investigate a company’s other locations to be assured of a high quality, consistent experience. The probable success and economic benefits of a chain can likewise be predicted based off of Illinois’ publically available database which tracks this information.

Design and Quality: Similar to the above, looking at other locations of the same franchise can help the Board discover the “feel” of a new VG establishment. In cases where there are no other locations or other locations are unsatisfactory, the Village Board can insist on a higher level of design to ensure the establishment meets Oswego’s community standards.

Community Pop#

Businesses

# Games

AmountPlayed

NTINTI Tax

Rate (30%)

State Share

Municipality

Share

Ratio: Municipa

l Tax / Game

Aurora 199,963 31 138 $81,883,721 $6,640,866 $1,992,276 $1,660,230 $332,046 $2,406

Montgomery 19,129 8 34 $17,167,694 $1,363,141 $408,945 $340,788 $68,157 $2,005

Oswego 32,173 9 42 $20,554,479 $1,657,093 $112,780 $93,983 $82,855 $1,973

Plano 11,097 8 34 $18,913,608 $1,561,017 $468,309 $390,257 $78,051 $2,296

Sandwich 7,365 11 40 $10,050,731 $878,044 $263,416 $219,514 $43,903 $1,098

Yorkville 17,742 19 60 $22,805,836 $1,897,325 $569,203 $474,336 $94,867 $1,581

16

Additional information: Below are a series of links which provide additional context and information

http://www.kcchronicle.com/2016/11/18/batavia-lifting-ban-on-video-gambling/ascfsu3/ http://www.chicagotribune.com/suburbs/batavia-geneva-st-charles/news/ct-tri-st-charles-

video-gambling-legal-tl-1022-20151020-story.html http://www.dailyherald.com/article/20130813/business/708139798/ http://www.igb.illinois.gov/VideoReports.aspx

17

Exhibit “C”

Video Gaming Fee Comparison

Municipality License Fee Terminal/Redemption Machine Fee

Aurora No video gaming cafés allowed. Distributor’s- $250.00 appl. fee; $1,000 annual license fee

$100.00 per terminal

Bartlett Video gaming cafés allowed $25.00 per terminalBatavia $1,000 annually $25.00 per terminalBloomingdale No video gaming cafés allowed $500.00 per terminalCarol Stream No video gaming cafés allowed.

No more than 11 licenses allowed.

$550.00 per terminal

Carpentersville Video gaming cafés allowed Club- $125.00 for first terminal, $25.00 for each additional.

All others- $25.00 for first terminal,$ 50 for each additional

Darien Video gaming cafés allowed $25.00 per terminalElmwood Park $1,000 annually $1,000 per terminalForsyth Prohibited 7/1/12 Prohibited 7/1/12Geneva Prohibited 9/4/12 Prohibited 9/4/12Gilberts Currently no café’s $25.00 per terminalGlen Ellyn Opted out Opted outHomer Glen No video gaming cafés allowed

$1,000 annually$500.00 per terminal

Lockport Video gaming cafés allowed $25.00 per terminalMontgomery No video gaming cafés allowed. $0- regulated through the StateNaperville Prohibited ProhibitedNew Lenox No video gaming cafés allowed. $25.00 per terminalNorth Aurora No video gaming cafés allowed $25.00 per terminalOswego $200.00 annually $50.00 per

terminal/redemption machinePlainfield Prohibited ProhibitedPlano Allows video gaming cafés $25.00 per terminalRoselle No more than 12 licenses

allowed; Must be an existing business for one (1) year before allowing video gaming; $500.00 one-time license fee

$25.00 per terminal

Sandwich Allows video gaming cafés $25.00 per terminalSt. Charles No video gaming cafés allowed.

$1,000 initial fee;$ 500.00 renewal

$100.00 per terminal18

*Non-home rule communities are not allowed to charge an application or license fee. Maximum per terminal is $25.00.

West Chicago Prohibited ProhibitedWestmont $25.00 per terminalWheaton Prohibited ProhibitedWoodridge No video gaming cafés allowed.

$500.00 annually$250.00 per terminal

Yorkville Allows video gaming cafés $25.00 per terminal

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VIDEO GAMING REVENUE REPORT (Village's Share)

NAME OF BUSINESS

DATE

APPROVED

BY THE

STATE

LICENSE#

ISSUED BY

STATE January 2016

February

2016 March 2016 April 2016 May 2016 June 2016 July 2016

August

2016

September

2016

October

2016

November

2016

December

2016

YTD

2016 2013/2014 38,017.90$

American Legion Post 675 12/19/2013 130803359 $555.68 $492.72 $438.18 $402.17 $428.67 $446.93 $245.99 $378.00 $332.80 $222.05 $304.25 $317.77 $4,565.21 2015 $57,459.00

Cantina and Grill (Cantina, Inc.) 11/21/2013 120702010 $1,262.13 $1,588.02 $1,711.48 $1,592.43 $1,442.87 $864.21 $939.43 $951.02 $719.43 $1,095.17 $1,681.73 $1,536.96 $15,384.88 2016 $82,855.23

F. V. Kickers NFP- Nat'l

accredidation approved 10/1/13 5/29/2014 130806265 $750.40 $1,163.02 $1,034.59 $1,009.14 $723.84 $430.76 $903.80 $913.70 $701.24 $936.94 $733.24 $891.35 $10,192.02 $178,332.13

Oswego Inn (312 Corp.) 5/29/2014 130705111 $760.02 $592.28 $845.91 $648.76 $1,009.02 $808.98 $762.68 $623.49 $722.13 $849.32 $655.41 $926.63 $9,204.63Oswego Junction Enterprises,

LLC, dba Prohibition Junction

Sports Bar and Grill 9/22/2015 150700490 $905.51 $1,081.90 $1,199.05 $871.78 $760.95 $984.76 $1,136.64 $828.41 $544.51 $734.21 $1,036.08 $811.23 $10,895.03

Pepe's Mexican

Restaurant(Dalexmeri, Inc.) 6/26/2014 140701559 $216.38 $218.82 $166.41 $139.98 $278.89 $186.54 $238.90 $176.65 $145.91 $244.81 $144.82 $47.97 $2,206.08

Rajarshi. Inc. (pd's Wines &

Spirits) 7/23/2015 150701920 $1,792.44 $1,222.10 $1,412.24 $1,528.69 $1,461.42 $1,496.52 $1,648.86 $1,700.28 $1,516.70 $1,711.27 $1,637.18 $1,668.95 $18,796.65

Scoreboards Sports Pub 11/21/2013 120700191 $749.93 $824.02 $768.99 $1,194.13 $805.10 $1,081.89 $1,180.68 $1,043.06 $940.38 $889.01 $1,142.26 $993.94 $11,613.39

Stella's 12/14/2016 160702457 -$2.66 -$2.66

TOTAL $6,992.49 $7,182.88 $7,576.85 $7,387.08 $6,910.76 $6,300.59 $7,056.98 $6,614.61 $5,623.10 $6,682.78 $7,334.97 $7,192.14 $0.00 $82,855.23

20

VIDEO GAMING REVENUE REPORT (Village's Share)

NAME OF BUSINESS

DATE

APPROVED

BY THE

STATE

LICENSE#

ISSUED BY

STATE January 2017

February

2017 March 2017 April 2017 May 2017 June 2017 July 2017

August

2017

September

2017

October

2017

November

2017

December

2017

YTD

2017 2013/2014 38,017.90$

American Legion Post 675 12/19/2013 130803359 $235.34 $233.46 $360.17 $311.62 $1,140.59 2015 $57,459.00

Cantina and Grill (Cantina, Inc.) 11/21/2013 120702010 $1,315.78 $1,894.82 $2,146.45 $2,584.47 $7,941.52 2016 $82,855.23

F. V. Kickers NFP- Nat'l

accredidation approved 10/1/13 5/29/2014 130806265 $1,160.11 $891.60 $1,268.67 $1,105.11 $4,425.49 2017 $42,950.96

Oswego Inn (312 Corp.) 5/29/2014 130705111 $1,152.55 $1,248.76 $1,258.98 $1,034.85 $4,695.14Oswego Junction Enterprises,

LLC, dba Prohibition Junction

Sports Bar and Grill 9/22/2015 150700490 $815.02 $1,094.83 $1,281.20 $1,229.66 $4,420.71 $221,283.09

Pepe's Mexican

Restaurant(Dalexmeri, Inc.) 6/26/2014 140701559 $313.69 $140.84 $277.19 $225.32 $957.04

Rajarshi. Inc. (pd's Wines &

Spirits) 7/23/2015 150701920 $1,801.50 $1,787.32 $1,954.43 $1,495.03 $7,038.28

Scoreboards Sports Pub 11/21/2013 120700191 $1,165.67 $1,144.82 $1,124.22 $837.26 $4,271.97

Stella's 12/14/2016 160702457 $987.63 $2,092.62 $2,652.89 $2,327.08 $8,060.22

TOTAL $8,947.29 $10,529.07 $12,324.20 $11,150.40 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $42,950.96

21

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Date Printed: 6/15/2017The requested map will be created for study purposes only.Please refer to the official recorded plats or deeds for the actual legal descriptions andproperty dimensions. No liability is assumed for the accuracy of the data delineated herein, either expressed or implied by the Village of Oswego or itsemployees. This work is protected by the United States Copyright Act of 1976 (17 U.S.C. Sec101 et seq). You are not permitted to use and/orreproduce any part of a copyrighted work of the Village of Oswego in violation of Federal Copyright Law. Doing so may result in prosecution undersuch law. If you wish to use property in which the Village of Oswego owns a copyright, you must obtain written permission through the CommunityDevelopment Department in the Village of Oswego, located at 100 Parkers Mill, Oswego, Illinois 60543.

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OldPost RdWol lmington Dr

Maso

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Old Post Rd Seton Creek Dr

Herita

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Doug

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Douglas Rd

N ewport C irSe ton Creek Dr 1038

39

46

5 6

2534

License Type Company Name LabelLiquor Only 7-Eleven Food Store 1Liquor Only Aldi, Inc 2Liquor and Gaming American Legion Post 675 3Liquor Only Arranmore Events 4Liquor Only Benny's Place 5Liquor Only BJ's Wine & Spirits 6Liquor Only Bogies Indoor Golf 7Liquor Only Bucky's Express #546 8Liquor Only Buffalo Wild Wings #159 9Liquor and Gaming Cantina and Grill 10Liquor Only Chili's Grill & Bar 11Liquor Only Chipotle Mexican Grill 12Liquor Only Circle K #6753 13Liquor Only Circle K #6822 14Liquor Only Danelli's Restaurant & Catering 15Liquor and Gaming F. V. Kickers 16Liquor Only Famous Dave's 17Liquor Only Firehouse Pizza & Pub 18Liquor Only Fox Bend Golf Course and Pearce's Restaurant 19Liquor Only Fox Valley Winery 20Liquor Only Giordano's of Osw ego 21Liquor Only Goodrich Quality Theaters, Inc. 22Liquor Only Jays Food & Liquor 23Liquor Only LongHorn Steakhouse 24Liquor Only Mason Wok and Sushi 25Liquor Only Meijers Gas Station #239 26Liquor Only Meijers Store #239 27Gaming Only Milly's Cafe 28Liquor Only Murphy USA 7442 29Liquor Only Noodles & Company 30Liquor Only Olive Garden Italian Restaurant #1758 31Liquor Only Osco Drug #3138 32Liquor Only Osco Drug #2481 33Liquor Only Osw ego BP 34Liquor Only Osw ego Food & Liquor 35Liquor and Gaming Osw ego Inn 36Liquor Only Osw ego Oil Company 37Gaming Only PD's Wines and Spirits 38Liquor and Gaming Pepe's Mexican Restaurant 39Liquor Only Pizza Cucina 40Liquor Only Portillo's Hot Dogs 41Liquor and Gaming Prohibition Junction Sports Bar and Grill 42Liquor Only Red Robin America's Gourmet Burgers & Spirits 43Liquor Only Sakamoto Japanese Grill & Sushi 44Liquor Only Salsa Verde 45Liquor and Gaming Scoreboards Sports Pub 46Liquor Only Shu's Sushi Bar & Grill 47Liquor Only Speedw ay #1417 48Liquor Only Speedw ay #2120 49Gaming Only Stella's Place 50Liquor Only Studio 60 on Main 51Liquor Only Tap House Grill Osw ego 52Liquor Only Taqueria LaCabana 53Liquor Only Target Store T-1402 54Liquor Only TGI Friday's 55Liquor Only Tuscan Tavern 56Liquor Only Velvet Grace 57Liquor Only Very Lucky Inc 58Liquor Only Wal-Mart #3400 59Liquor Only Walgreens #01484 60Liquor Only Walgreens #05824 61

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