By Erin Smith
The opening of an electronic gaming facility in Clarkton has prompted the town board to review their electronic gaming policy. On Tuesday night, the owners of Freddy’s on Elm attended the board meeting for the discussion.
Daniel Storie and Danny Storie listened as the board discussed the policy. Mayor Arthur Whedbee told the board that it is his opinion the town can regulate electronic gaming but they cannot charge a privilege license fee.
“The legislature repealed the state that allows you to do that,” said Town Attorney Cliff Hester.
“I understand that you can’t do privilege licensing, so how do you tax them?” asked Town Commissioner Jerome Myers.
“Well, you don’t tax them. We can tax the property, but that is all,” replied Hester.
“So what it boils down to is like we said the last time. If they meet the criteria that is in the ordinance, then that is it,” said Town Commissioner Lawrence McDougald.
Audience member Linda Croom asked if there are any state regulations with regards to electronic gaming. Hester replied there are state regulations regarding gaming.
Ms. Croom also asked about County regulations and Hester said he would have to look into it. He added in the terms of a privilege license tax, the County would be in the same situation as the town.
“So how does this fall under (general statue) 168-881 that we can regulate places of amusement gaming? Do we have a right to vote on this?” asked Town Commissioner Stephen Hester.
“Do you (the board) think this is a place of amusement and entertainment?” asked Hester.
He continued, “We do have some regulations that apply to that. They have to comply with those regulations. We can’t prohibit them and we can’t do a privilege license tax.”
Daniel Storie, one of the owners of Freddy’s on Elm, asked to be recognized.
“Which type of facility is the town trying to classify us as? Is it as entertainment facility or a sweepstakes facility?” asked Storie.
“It may be both,” replied Hester.
“I don’t think we are either,” said Storie. “Some people don’t like this industry, but what we try to do, put some people at ease, is to try to find local things and local businesses to support.”
He said the company tries to find things that are important to the community to become involved in such as local baseball teams, assisting with maintaining of local softball fields, donating to such things as assisting those who are behind on their water bills.
Storie also said the business generates considerable revenue. He said he is prepared to assist the town with updating their electronic gaming regulations. He pointed a lot of the language in the current town ordinance is from 2012 and no longer applies. Storie said he has worked with the town of Grifton to update their regulations.
“We’re open to ideas about ways we can give back to the community we are in,” said Storie.
“I’ve reviewed this and also the cases that dealt with it, that really led to the adoption of the repeal of the legislation that allowed us to tax these operations,” said Hester. “We’ve got some regulations that do apply, but I don’ think they are significant.”
Ms Croom asked if they need a permit to operate and Hester replied no.
Storie explained that the fees being charged in some communities were exorbitant and unfair which led to the repeal of the privilege license law. He stated in Fayetteville, they were paying $175,000 per year.
Town Commissioner Hester asked if the town has the right to approve or deny the business. Hester said the town does not have the right to approve or deny the business opening.
Danny Storie also spoke. He said Freddy’s on Elm is open at 10 a.m. Monday through Friday and at 1 p.m. on Sundays. Storie said they close at 11 p.m. on Sunday and midnight during the week. He said no one under the age of 18 is allowed inside.
He added that he is a veteran and his parents were pastors.
“I run a legit and honest business,” said Storie.
Town Commissioner Hester asked about the armed security guard working the door. Danny Storie replied that the security guard is there for the safety of the patrons inside. He explained the security guard was hired at the request of patrons.
No action was taken by the board on the matter.
In other business:
*The board voted unanimously to approve the water shortage plan and to reschedule the January meeting to January 8, 2019, at 6 p.m.
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