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HomeMy WebLinkAboutO-392-5-82ORDINANCE NO. 392-5-82 AN ORDINANCE OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, DETERMINING THE APPROPRIATE CLASSIFICATION FOR THE PRESENTLY UNLISTED USE OF ARCADE, DEFINING THE TERM ARCADE, DEFINING COIN-OPERATED MACHINES, DEFINING PRINCIPAL USE, DEFINING PROPERTY WHERE EXHIBITED; AMENDING THE COMPREHENSIVE ZONING ORDINANCE NO. 366-10-81, AS HERETOFORE AMENDED, TO SUPPLEMENT SECTION 3.01 (R) AND ALLOW BY SPECIFIC USE PERMIT IN 3.01 (M) THE USE OF ARCADE; TO DELINEATE THE DISTRICTS WITHIN WHICH SUCH USE SHALL BE PERMITTED; ORDAINING OTHER MATTERS ON THE SUBJECT; AND PROVIDING A PENALTY CLAUSE, A SEVERABILITY CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the Planning and Zoning Commission of the City of Allen, Texas, initiated action to consider the nature and described performance of the property use of arcade and its compatibility with the uses permitted in the various districts, and to make recommendations to the City Council as to the proposed use; and, WHEREAS, the Planning and Zoning Commission, following due notice as provided by law, considered the zoning classifications of the City and to which the property use of arcade should be placed, such use presently being unlisted in the Comprehensive Zoning Ordinance; and, WHEREAS, the Planning and Zoning Commission, in its deliberations, considered the nature and described performance of the proposed use and its compatibility with the uses permitted in the various districts under the Comprehensive Zoning Ordinance and did on April 8, 1982 recommend that such use of such property be classified as permitted uses by right in the Planned Development (PD) zoning district and by specific use permit in the Shopping Center (SC) zoning district. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN, TEXAS, THAT: SECTION 1. DEFINITIONS: Ordinance No. 392-5-82 - Page 1 1. As the term "Coin -Operated Machines" is used herein, it shall be defined as any coin, slug, or token -operated machine or device, when such machine, or machines, dispense, or are used, or are capable of being used, or are operated for amusement or pleasure, or when such machines are operated for the purpose of dispensing or affording skill or pleasure, or for any other purpose other than the dispensing or vending of merchandise or music. For purposes of interpretation, coin- operated pleasure or amusement machines designed exclusively for use by children under the age of 10 years, such as coin-operated riding machines and other related coin- operated machines, are excluded for the purpose of zoning. 2. As the term is used herein, "Arcade" shall be defined as an establishment whose principal use is to display, or make accessible for public use, coin-operated skill and/or pleasure machines or devices. 3. Until such time as the State Legislature shall act in providing definitions as to "Principal Use" and "The Property Where Exhibited", as provided in Article 88.14, Vernon's Annotated Civil Statutes, as transferred from Article 13.14, Taxation General, the City of Allen, pursuant to the powers granted to it by Article XI, Section 5, of the Texas Constitution, and Article 1175, Vernon's Annotated Civil Statutes, does hereby establish the following definitions for such terms as same are applied within the corporate limits of the City of Allen: A. "Principal Use" - Recognizing that a particular property may be subject to more than one principal use, it is hereby determined that a principal use is a use that will generate sufficient revenue and profit, aside from any other use, to make such operation economically feasible standing alone. Provided, however, that a party claiming the use of coin-operated machines in his business is nothing more than an incidental use in said business, then in that event, the burden shall be upon said party to provide satisfactory proof that the operation of such machines in said business is not "economically feasible standing alone" as that term is defined and illustrated herein. In determining whether the use of coin-operated skill and/or pleasure machines in a place of business constitutes a principal use or incidental use, a determination must first be made as to whether such use is economically feasible standing alone. In determining such, the property where exhibited, as defined herein, shall be identified as a percentage of the total square footage of the entire business. Pro rata costs based Ordinance No. 392-5-82 - Page 2 upon this percentage shall include monthly rental or lease payments and utility costs. However, for purposes of this ordinance, such proration shall not reduce such costs for the property where exhibited to less than $300.00 per month. In addition to these pro rata costs, there shall be added to the monthly cost of operation of the property where exhibited the minimum wage of a full-time supervisory employee whose salary shall not be prorated among any other uses than the property where exhibited. Additionally, in determining a principal use, consideration shall be given to degree of ownership, control, and operation of a particular operation in connection with another use or operation on the same property. Thus, where a property is utilized for coin-operated pleasure and/or skill machines and sells soft drinks or dispenses food, it may be determined, based upon the foregoing criteria, that, (1) the exhibition of coin-operated pleasure and/or skill machines consitute a principal use; (2) the sale of food or drink constitutes a principal use; (3) that each use constitutes a principal use; or (4) neither use standing alone constitutes a principal use but that the combined operation is a principal use. Provided, however, that for purposes of zoning action, the exhibition of not more than four (4) coin-operated pleasure and/or skill machines upon an enclosed property wherein other business is conducted shall be presumed to be incidental to the other business and shall not require zoning action separate from the other use without regard to the magnitude of the other business. In establishing the above criteria, it is hereby determined that the typical coin- operated pleasure and/or skill machine is capable of generating from $5.00 to $9.00 per hour under full operation. It is further determined that supervisory help may be obtained at a rate ranging between $3.50 and $5.00 per hour, actual economic feasibility of an operation will vary according to location, hours of operation, and attraction of machines displayed. Examples for coin-operated machine - principal use: Examples number 1, 2 and 3 are described in Exhibit A attached hereto and made a part of and are incorporated into this ordinance as though written herein. B. "Property Where Exhibited" - The term "Property Where Exhibited" shall be determined to consist of the actual space occupied by the coin-operated pleasure and/or skill machines plus that space necessary to accommodate at least two (2) Ordinance No. 392-5-82 - Page 3 players, plus that area between machines where such machines are grouped in a particular location; where a separate enclosure separates the machine from other business activity, either by whole or partial wall, or other means of designation, the entire area enclosed or designated as an area for such machines and play activity shall constitute the property where exhibited, provided, however, where no more than four (4) coin-operated pleasure and/or skill machines are located under one roof, the entire area under one roof shall constitute the property where exhibited. Provided further, that where the coin-operated pleasure and/or skill machines are not separated from other business activity, by whole or partial enclosure, or other designation, the entire property enclosed shall constitute the property where exhibited, and may or may not, according to the criteria heretofore established, constitute a principal use. SECTION 2. Where a location contains such a number of machines and meets other criteria herein, to the degree that the exhibition of coin-operated pleasure and/or skill machines consitutes a principal use and sale of food, drink, or other items constitute an incidental use, the location shall require zoning as an arcade; no zoning for the incidental use shall be required. Where a location is burdened with two uses, one of which is for pleasure and/or skill coin-operated machines, and one for another use, the other use is a principal use and the coin-operated machine use is an incidental use, only the principal use shall require zoning action. SECTION 3. This ordinance shall be applicable to all establishments exhibiting pleasure and/or skill coin-operated amusement machines beginning operation after the effective date of this ordinance. SECTION 4. The City Council hereby determines that the use of property within the City for arcade shall fall under a separate classification within Section 3.01 (R) of the Comprehensive Zoning Ordinance and shall be permitted as a matter of right in the Planned Development (PD) district and with a specific use permit in Section 3.01 (M), Shopping Center (SC) district. SECTION 5. The Comprehensive Zoning Ordinance No. 366-10-81, Section I Ordinance No. 392-5-82 - Page 4 3.01, is hereby amended to allow the following use to be permitted in the various districts as stated, to -wit: Arcade - To be allowed by right in the Planned Development (PD) district and by specific use permit in the Shopping Center (SC) district. SECTION 6. An Arcade shall be prohibited within 300 feet of any public or parochial school, church, or hospital. An Arcade shall be prohibited within 300 feet of the boundary of any residentially -zoned district, except that this prohibition will not apply to property located within 300 feet of the boundary of a residentially -zoned district if the City Council affirmatively finds that issuance of the specific use permit would not be detrimental or injurious to the public health, safety, or general welfare, or otherwise offensive to the neighborhood. The above distances shall be determined by a measurement to be made in a straight line from the front door of the premises to be permitted to the nearest property of the said church, public or parochial school, hospital, or residentially -zoned district. SECTION 7. All provisions of the ordinances of the City of Allen in conflict with the provisions of this ordinance are hereby repealed and all other provisions of the ordinances of the City of Allen not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 8. That repeal of any ordinance or part of ordinances affected by the enactment of this ordinance shall not be construed as abandoning any action now pending under or by virtue of such ordinance or as discontinuing, abating, modifying, or altering any penalty accruing or to accrue or as affecting any rights of the municipality under section or provisions of any ordinance at the time of passage of this ordinance. SECTION 9. Any person, firm or corporation violating any of the provisions or terms of this ordinance shall be subject to the same penalty as provided for in the Comprehensive Zoning Ordinance of the City of Allen as heretofore amended, and upon conviction shall be punished by a fine not to exceed the sum of Two Hundred Dollars ($200.00) for each offense, and each and every day such violations shall continue shall be deemed to constitute a separate offense. SECTION 10. It is the intention of the City Council that this ordinance and Ordinance No. 392-5-82 - Page 5 every provision thereof shall be considered severable, and the invalidity of any section, clause or provision, or part or portion of any section, clause or provision of this ordinance shall not affect the validity of any other portion of this ordinance. 00 SECTION 11. This ordinance shall become effective immediately upon its passage and publication as required by law. DULY PASSED AND APPROVED by the City Council of the City of Allen, Texas, on the 20th day of May , A.D., 1982. APPROVED: . B. Pierson, Mayor ATTEST: Marty Hendrix, Ciq Secretary APPROVED AS TO FORM: Ordinance No. 392-5-82 - Page 6 Ordinance No. 392-5-82 Page 7 EXHIBIT A EXAMPLES FOR COIN OPERATED MACHINE - PRINCIPLS USE EXAMPLE NO. 1 A man leases 4,000 square feet at $6.00 per foot for a total monthly rental of $2,000.00 and estimates his utilities at $2,000.00 per month. This breaks his cost down to $1.00 per square foot per month. He plans to exhibit 10 coin operated machines that measure 4' x 4' each, for a total of 160 square feet. In addition, he estimates that a 2' space is required between each machine'for service area, for a total for 72 feet. It is assumed that his clientele will consist of 2 persons per machine for a net square foot occupancy requirement of 15 square feet for each person, or a total of 300 square feet. It is required that a salaried person be employed and assumed that the machine operation will be from 4:00 p.m. till midnight, 6 days a week. At a minimum salary of $3.50 per hour, this employee will earn $727.44 per month. 'I The area to be considered for machine operation (consisting of 532 square feet at $1.00 per square foot) would be $532.00 monthly, added to the $727.44 for salary, for a total operation expense in the machine area of $1,259.44 monthly. Ten machines calculated to produce revenue at a minimum of $5.00 per hour per machine, based on a 48 hour week, would be $10,392.00 monthly. It is customary that the coin operated machine companies place their equipment in an establishment on a 50/50 basis, therefore producing $5,196.00 monthly as the operator's part, therefore producing a monthly profit of $3,936.56 over and above the opera- tional cost of the machine area. This case would constitute a principle use for machine operation. EXAMPLE NO.' 2 A man leases a small space for $200.00 per month, his utilities are estimated to be $200.00 per month. In this space he proposes two uses: (1) the sale of soft drinks and sandwiches,.and (2) the display and operation of 5 coin operated machines. The buildingis monthlyideA rentaluand utilityfore costsiofri- buting estimated $200.00 per use. 7 Ordinance No. 392-5-82 EXHIBIT A Page 8 Under the terms of the ordinance a minimum of $300.00 for the use of a machine section would be required. In addition to this one employee is hired at the rate of $3.50 per hour for a 48 hour work week, a total of $727.44 monthly. This brings the total monthly cost of the machine section to $1,027.44. The operation of 5 coin operated machines at a minimum of $5.00 per hour each, operating between the hours of 3:00 p.m. and 11:00 p.m., six days per week,, would gross $5,196.00 monthly. The operator's one-half of the machine operation would be $2,598.00 monthly, for a profit of $1,570.56, thereby constituting a principle use and requiring zoning action for the machine section. EXAMPLE N0: 3 if a man leased 5,000 square feet at d rate of $6.00 per square foot, for a monthly rental of $2,500.00, and estimated his utilities at $1,500.00, his total monthly cost would be $4,000.00. if he actually divided this 5,000 square feet into 2 equal areas, and used one of these areas for five machines, his monthly allocation for machine use would be $2,000.00 per month. If he operated the machine area only 28 hours weekly, an employee, at the rate of $3.50 per hour, would be an additional $424.34, for a total monthly cost, to the machine area, of $2,424.34. Operating 28 hours weekly, the 5 machines producing a minimum of $5.00 per hour, would gross $3,031.00 monthly. The operator's one-half would be $1,515.50 monthly. r% Since the income would not equal the operational cost, the 5 machines operation would not be a principle use and would not require zoning action.