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Shafer City Council held a regular meeting March 4. All members were present.  The meeting began by hearing from Matt McKenzie of the Shafer Fire and Rescue Relief Association.  McKenzie is the gambling manager for the association and he was there to discuss Shafer Saloon.  

McKenzie told the council the association has been having issues with shortages and late deposits made by Shafer Saloon.  McKenzie told the council the Minnesota Gambling Control Board had been working with the bar about the issues.  He then told the council an unopened box of pull tabs has gone missing and unaccounted for.  McKenzie told the council the state has been contacted and is conducting an investigation as to the whereabouts of the tabs.  McKenzie said all of the serial numbers have been given to the state to potentially help trace the box.  McKenzie said the association had a meeting and felt it was in their best interest to pull all gaming out of Shafer Saloon.

Shafer Saloon owner Jamie Alsaker then was allowed to give her side of the story.  Alsaker began by telling the council the relationship with the association has grown toxic and she would like to bring in a different gambling organization. She said that on January 1, the missing box was inventoried but she alleged that she has video evidence showing the box was never dropped off.  

Alsaker then told the council the association does not go over any shortages with her but rather takes whatever is short off of the lease agreement payment. But, according to the Minnesota Gambling Control Board’s Lawful Gambling Manual, in bar operations, the lessor (which is Shafer Saloon in this case) must reimburse the organization for any cash shortages. 

The manual states that gaming associations leasing a booth at a bar pay 10 percent of gross profits for pull tab sales with a cap of $1,750 per month and 15 percent for electronic tabs as a lease for space in the bars. A source with the association told the Press that the Saloon’s sales qualified them for the max payment of $1,750 per month plus e-tab payments.

A resident asked if the deposits go directly to the Fire Hall or do they go to someone's house.  "If money is being counted at someone’s house, then that smells fishy to me" said the resident. Mayor Paula Hanson chimed in and said, "There seems to be a little loose auditing going on.”  McKenzie told the council the association is audited by the state each year. He told the council he would get the recent audits to show the association follows standard operating procedures.

Both Alsaker and the organization claimed they each had reached out to the state.  The whereabouts of the missing box is still a mystery.

Hanson finished the conversation stating, "No decisions will be made tonight.  We will conduct an investigation before making a decision.  As a city we don't want to lose the fire department, but if a business isn't being treated fairly, that isn't right in our city".

The council then heard from Cory Lindgren who was there representing Lakes Area Recreation Association's (LARA) charitable gaming operation.  Lindgren said he has a good relationship with all of the fire relief gambling associations including Shafer.  He told the council he wasn't there to step on anyone's toes but rather to tell a bit about LARA.  Lindgren did point out that many of the practices Shafer Fire uses are also used by LARA and other associations.  He was asked to speak to the council by Alsaker. Lindgren did say at the very least, while the situation plays out with the fire relief, he could apply for a special temporary permit which would basically allow LARA sponsored tabs on the weekend.  Council thanked Lindgren for his time.

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