Tinley Park Board Members Extend Due Date For Businesses Late On Paying Video Gaming License Fees

Tinley Park IL

31 January, 2021

8:51 PM

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By Jon DePaolis, the Richard Free Press: TINLEY PARK, Ill. — Tinley Park officials will allow a little more time for businesses that have not yet paid their video gaming license fees. The decision — coming after a 5-0 vote during the Tuesday, Jan. 26 Village of Tinley Park Committee of the Whole (COTW) meeting — will extend the payment due date until March 1 for the nine businesses that have yet to pay their fees. During the discussion, Tinley Park Assistant to the Village Manager Hannah Lipman said several establishments had approached the liquor commissioner inquiring about the video gaming fees. "As you're aware, we had waived the liquor licensing fees for six months in 2020 and six months in 2021, and we left the video gaming fees alone," she said. Lipman said the fees are $1,000 per terminal, with establishments being allowed to have three to six terminals — meaning fees would range between $3,000 to $6,000 annually. "To date, 29 out of 38 video gaming license holders have already paid for 2021," she said. "Obviously, given COVID, the machines were shut off for two months — Nov. 20 through Jan. 19. So, some of these establishments did take a hit there." Lipman gave a few options the board members could take, including: making no changes and keeping the fees as they currently were; extending the due date for when the fees are owed; reimbursing the 29 businesses that had already paid their fees or reducing the fee for the other nine businesses that have not paid; or providing a waiver in 2022 for video gaming license fees. "We haven't implemented any late fees for those who have paid late at this point in time, and we wouldn't charge any late fees for any of those [businesses] that still have to pay," Lipman noted. Mayor Jacob Vandenberg said he felt any of the options presented were satisfactory but that he would be open to whatever recommendation came from the board members. "It's definitely an olive branch to the business community," he said. "That could make or break somebody's month, I would say, when it comes to some of these small businesses." Trustee Michael Glotz, however, said the Village has made substantial cuts to its own budget while also helping local businesses with grants and certain license waivers. He said he felt the Village should leave the fees as-is. "The part that sticks with me … is this is an additional revenue source," Glotz said. "So, for the last six years, most of them have been doing pretty well with the gaming as an additional revenue source. I don't think it would be fair to all of the other businesses. We have several thousand of them that don't have this option of having or earning [video gaming] additional revenue. So, they are at a big disadvantage. Some of [the businesses with video gaming] are making $300,000 a year." Vandenberg replied that the hardest-hit businesses during COVID-19 were the bars and restaurants, so he felt it was not a fair analogy to compare those with the rest of the businesses in Tinley Park. "I don't see it as being a disservice," Vandenberg said. "I see it as being … an olive branch from a government to try to help offset some of the hardship that they have had to face over the last year or so. This is the second time the machines have been shut down." But Glotz said the other side to that argument was that it was an additional revenue source that the business did not need to have. "They don't have to have the license," Glotz said. "If they don't want to pay the fee, they are more than welcome to pull the games. We didn't force them or ask them to put the games in there. They did because it is very lucrative." Trustee William Brennan said he could see both sides of the argument. "We, as a board, have put in place measures to not have these businesses solely rely on gaming," he said. "I know there has been concerns [expressed in the past] about how long they have been in business before we actually give them the license for gaming. Being a business owner myself, I kind of err on the side of lending an olive branch out to them and helping them out with a prorated amount. But I do see that this isn't their primary business." Ultimately, Glotz made the motion to extend the payment due date to March 1, and it passed with Trustee Cynthia Berg abstaining. Also during the COTW meeting, the board members voted 4-2 to consider amending Village Code to split the current fee structure for video gaming terminal fees and add a terminal operator fee. Glotz said that in the past, the terminal operators were able to pay various licensing fees for businesses. However, after recent decisions made by the Illinois Gaming Board, he said he worked with staff and the terminal operators to propose a fee split. Under the fee split, the terminal operators would be asked to pay $750 and the business would pay $600. An exception, however, would be made for charitable or veterans' organization so that those businesses would only need to pay $400. Glotz said the fee split would put less burden on businesses. Trustee Michael Mueller agreed. "I think it's perfect," Mueller said. "I think we are giving some relief to our business owners." However, Trustee Diane Galante said she felt it was a bad practice for the Village to make that change as the gaming board had come out against it. She and Berg cast the dissenting ballots. Get 30% off for 1 year Richard Free Press is a one-stop destination for the news that most affects you, the southwest suburban resident. Be an informed citizen of the town you live in and love.