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‘Arcade’ ordinance changes eyed: Council decision could help entertainment businesses in Niles

NILES — City council is considering legislation that would make it easier for family entertainment-oriented businesses, such as an arcade, to open within the city.

At a recent meeting, council had first reading of legislation to amend codified ordinances that regulate the use of mechanical amusement devices and “unintendedly restrict modern businesses from operating within the city of Niles.”

According to the legislation, the new ordinance, if approved, would amend sections of chapter 733 of the Niles Codified Ordinances that are deemed to be outdated

“This is being brought up to update an antiquated ordinance,” Mayor Steve Mientkiewicz said. “It’s also being brought up because we do have a business moving in that the former ordinance may restrict from moving in because it’s outdated.”

According to the codified ordinances, a mechanical amusement device is “any machine or device which, upon the insertion of a coin, slug or token in any slot or receptacle attached to such machine or connected therewith, or that a ticket is exchanged for use, operates, or which may be operated, for use as a game, contest, amusement or ride and which does not contain an automatic payoff device for the return of merchandise.”

“Essentially, think of a family arcade type thing,” city Law Director Phil Zuzolo said.

Zuzolo said there are no plans set in stone for such a business to come to the city of Niles, so he declined to suggest the name of any potential companies.

But, he said if a large, family entertainment oriented business wants to open shop in the city, the current city codified ordinances would make it difficult.

One line of the legislation the city is looking to amend involves inspections that businesses must undergo to receive licenses needed to display and to operate the machines.

Under the current codified ordinances, the owner of mechanical amusement devices would be required to first obtain a license from the director of public safety for each mechanical amusement device, except coin operated phonographs, for each and every machine displayed at one time.

Zuzolo said such restrictions can be inconvenient for any family entertainment business or arcade, potentially displaying dozens of mechanical amusement machines, that might consider moving into the city.

“A company like this that is pretty big would be somewhat prohibited if we nailed them with a license for every single machine versus just giving a location a license,” Zuzolo said. “Those licensing fees are supposed to be regulatory in nature not profit making things. If we could put it to one (license) per location, we feel that’s sufficient.”

Other changes to the codified ordinances would include loosening restrictions on when children can operate mechanical amusement machines. Under the current ordinances, no minor is allowed to operate an arcade machine in the city during school hours, between 8 a.m. and 3:30 p.m. from September to June 15.

If the proposed amendments are approved, children would be permitted in game rooms during school hours as long as they are accompanied by a parent or legal guardian.

Another section set to be amended includes annual license fees.

Under the current, codified ordinances, an establishment with one to four mechanical amusement devices would have to pay $35 per device, and an establishment with five or more machines would have to pay $50 per device after the first hour.

If the amendments are approved, the line “after the first hour,” would be stricken from the legislation.

Though he could not be completely certain, Zuzolo said his understanding of the original ordinances from 1954 and 1982 were to prevent illegal gambling in arcade-type businesses.

“When I read it I’m thinking that’s what these are really about, so that these don’t find a way to skirt the gambling laws and having real money exchanging as opposed to prizes and gifts, like stuffed animals,” he said.

Zuzolo said the amendments in the legislation are part of a larger city plan that involves looking back at old ordinances and determining what language might be restrictive and in need of replacing, while still maintaining the original intent of the ordinances.

Zuzolo said the city’s law department will be looking at past legislation, including others that could relax restrictions for potential businesses.

“That is one of the goals of our department this year,” Zuzolo said. “To go back and look at these types of ordinances, starting in the business regulation section of our Niles Codified Ordinances which is the 700 section and trying to preemptively get out in front of some of these things so that there is not a roadblock down the road. If it’s something that we know doesn’t need to stay anymore, or there’s been a material change to the Ohio Revised Code and it’s not necessary anymore. That’s something my department is going to be doing over the next few years, but immediately on the 700 section.”

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