Stillwater American Legion post seeks change to state’s charitable-gambling laws (Pioneer Press)

Two apartments above American Legion Post No. 48 in downtown Stillwater have been vacant since the state’s gambling laws were changed a few years ago.

Now, veterans from the post are working with local legislators to rectify the situation and allow the units to be rented again.

The post was forced to stop renting the apartments in 2004 after legislators tightened charitable-gambling laws, making it unlawful for the post to use gambling proceeds to pay utility bills if the building was not “wholly used” by the Legion.

Since the cost of utilities was greater than the rental income, post officials decided to stop renting the units, said Bob Hart, adjutant for the post.

But the change cost the Legion about $1,400 a month in rent, he said.

“It’s been hard,” Hart said. “When you have this loss, plus the change in the smoking law with smokers going across the (St. Croix) river to Wisconsin… ”

Rep. Julie Bunn, DFL-Lake Elmo, is sponsoring a measure that would allow veterans to rent out apartments at their posts even if they are using charitable-gambling proceeds to pay for utilities.

The Minnesota Gambling Control Board supports the legislation, said Gary Danger, compliance officer for the board. He said the change would affect about five veterans organizations in the state.

“We’re fine with this. It’s going to have a minimal impact,” he said. “This would be a quick fix that really would just take care of a minority of organizations. They would

be using gambling funds to pay for the utilities for their part of the building; gambling would not subsidize the rentals upstairs.”

Bunn said she hopes the legislation will help the Stillwater post stay financially viable.

“Other legions have been forced to close,” she said. “We want to do all we can to make sure this one stays open. This is an organization that has been hit hard by a number of things — the smoking ban, the recession. This is coming at a time when they could really use some help to ensure the viability of the organization going forward.”

Mary Divine can be reached at 651-228-5443.