Rick Lovely is working on a business plan to help local nonprofits raise money, downtown merchants increase their revenue and area residents have a little fun.
‘It’s nothing but a win-win situation for the community,? said the 45-year-old Oxford resident.
Banking on the popularity of Texas Hold’em, Lovely wants to open a facility downtown to host poker events for various nonprofit groups.
‘Instead of giving the money to a casino, you’re giving the majority of it to a local charity,? Lovely said. ‘I have about 25 local charities on a sheet at home with contact numbers and names of people that want to make sure they’re on my list.?
Lovely and his two partners, Will Hewett and Bud Lone, would like to open a card room in the former Oxford Antique Mall building (18 N. Washington St.), which has been vacant since May 2007. They’re planning to call it ‘The King of Clubs Poker Parlor.?
‘Actually, it’s about the only building (downtown) that would work,? he said. ‘It provides ample parking and it is the appropriate size and the rent would be affordable.?
However, Lovely has run into some zoning issues which were discussed during the public comment portion of Monday night’s village Zoning Board of Appeals meeting.
Card rooms are not specifically listed as a permitted use in downtown’s C-1 Central Business District (where the former antique mall is located). The village indicated to Lovely his proposed use doesn’t even fall under the similar uses provision of that zoning district.
Card rooms may be permitted in the C-2 District (located north and south of the C-1 District) because it permits private service clubs, fraternal organizations, banquet halls and meeting halls. ‘The village found that such uses are more consistent with the nature and intensity of the proposed card room use,? wrote village Planner Seth Shpargel, of McKenna Associates, Inc.
Because card rooms are such a new thing, nobody knows how to categorize them, so Lovely is requesting an interpretation from the ZBA as to whether or not he can open one in the C-1 District.
‘I don’t think it’s clear in our ordinance,? said ZBA Chairman Jeff Ziegelbaur. ‘So, to me, if it’s not clear, there needs to be an interpretation by us.?
Mark Young, chairman of the Downtown Development Authority, personally supports having the proposed card room in the C-1 District and told the ZBA it’s ‘really no different? than CC’s Cyber Cafe, which primarily offers patrons computer gaming opportunities along with food and beverages.
‘They’re playing video games versus playing cards,? he said. ‘I’m asking what the difference is??
It was noted that The Oxford Tap hosts Texas Hold’em tournaments (played for points, not money) while bingo is played on a weekly basis by the senior citizens at the Oxford Veterans Memorial Civic Center. Both places are located in the C-1 District.
According to Ziegelbaur, the village planner could find no prohibition on gambling in the ordinance.
The ZBA is expected to give a formal interpretation at its 7 p.m. Monday, March 3 meeting.
Members of the public, particularly downtown merchants, are invited to attend and give their input.
Properties located within 300 feet of the proposed card room will receive a meeting notice in the mail.
If he cannot use the former antique mall, Lovely said he plans to stay in Oxford by either opening up somewhere in the village’s C-2 District or moving to the township.
How would this card room work?
Nonprofit groups would sign a standard lease agreement to have Lovely’s facility host Texas Hold’em poker events ? which would consist of tournament tables and fixed-limit cash games ? to raise money for them.
Under the terms of this lease, the card room would provide the facility, advertising, dealers, chairs, cards, chips and 10-12 full-size, casino-style poker tables able to accommodate 10 players each.
‘I don’t want to open up some cheesy little joint,? Lovely told the ZBA. ‘I want (people) to call their neighbors and say ‘this was the nicest place they’ve ever been (to).?
Only soft drinks and sandwiches would be served at the card room. Lovely said they have absolutely no interest in obtaining a liquor license. ‘I don’t want a bunch of drunks in there,? he said.
Under the lease agreement, the card room would also handle all the paperwork and cover all the fees ? on the nonprofit group’s behalf ? associated with acquiring the state-issued charitable gaming licenses (called ‘millionaire party licenses?) required for each event.
‘All you need to do is sign a lease agreement, and we will do everything for you,? Lovely said. ‘There’s no headaches involved. You don’t have to worry about any paperwork. We do the whole, entire thing for you.?
Nonprofits wouldn’t have to shell out any money up front. The card room would cover all expenses. ‘There is no cost or risk involved for the charity,? Lovely said. ‘They have nothing to do but benefit.?
How’s the money divided?
Whether its tournament or fixed-limit play, the nonprofit always makes money because the gross proceeds from the evening are divided 50/50 between it and the card room.
‘They get 50 percent right off the top,? Lovely said. ‘The charity will never ever, ever, ever, ever by law be out money . . . The charity pays me after they’ve collected all their money.?
The card room’s 50 percent of the gross is meant to cover its expenses (rent, utilities, gaming licenses, insurance, advertising, dealers) and hopefully turn a profit.
‘If we make $100 (per partner) at the end of the evening in net profit, we’re going to be thrilled,? Lovely told the ZBA.
‘This is not a big money business,? he explained. ‘This is something to do for fun. People think these card rooms make millions of dollars and they’re not. We’re not Greektown Casino.?
Lovely acknowledged there may be times when 50 percent won’t even cover the expenses. ‘The risk is all on us,? he said. ‘If I run a bad game in a bad place and I don’t get players coming in and we lose money that evening, I’m the one that takes the loss, not the charity.?
A way to give back
The main reason Lovely wants to open this poker parlor is because ‘it’s an opportunity to give something back.?
‘As I look back at my life, I have done nothing but benefit from everything around me,? he explained. ‘I’ve never been a benefactor. I’ve never given anything back.?
Given the large number of local nonprofits in the area ? including churches, scouts, schools, after-school clubs, booster clubs, sports teams, charities, service clubs, the high school marching band ? Lovely believes there are more than enough potential clients.
Oxford High School’s robotics team has already expressed an interest. ‘They would like to be our first recipients,? Lovely said.
According to state law, each nonprofit group is limited to four millionaire party licenses per calender year. Each license may be issued for up to four consecutive days at one location. What the poker parlor would be doing is providing ‘one central location? for the area’s charity Texas Hold’em tournaments rather than holding them all over the place.
An economic shot in the arm
The card room is expected to bring 100-plus people to the downtown area Thursday through Sunday nights when it would be open from 4 p.m. to midnight (maybe 2 a.m. if business warrants it), according to Lovely.
‘As soon as guys heard that I was going to open up a (poker) room, my phone’s been ringing off the hook,? said Lovely, who’s ‘well known? amongst Texas Hold’em players as both a player and tournament organizer.
Lovely expects the influx of players to pump ‘a minimum of $100,000? into adjacent local businesses, especially restaurants, based on what a card room in Burton has done for surrounding businesses since June 2007.
He reasoned if at least half the people coming to the card room each night spent $10 at local businesses that would equal $2,000 a week in additional revenue for his neighbors.
‘I don’t think that’s a bad thing for downtown Oxford,? he told the village ZBA.
‘Hold’em tournaments have become the ‘date night? for people over 40,? explained Lovely, who noted couples who play are going to want to dine at a local eatery, maybe enjoy a few drinks, ‘make an evening of it.?
People playing cards for hours are going to take breaks and stretch their legs, so they could end up doing a little window shopping along Washington St., according to Lovely.
‘Just because the business is closed at night, doesn’t mean they can’t come back to shop when it’s open,? he said.
Lovely’s certain his card room will give more people a reason to stop downtown instead of just driving through.
The popularity of Texas Hold’em is undeniable. ‘It’s taking the country by storm,? Lovely said. ‘There are card rooms springing up all over the country. Any state that will allow bingo, will allow this.?
Lovely said when he started planning this venture a year ago, ‘there were only two card rooms I knew of in the state.?
Now, ‘there’s probably 30 card rooms within a 50-mile radius of here,? he said.
A game for decent folks
For those worried about the type of people a card room would attract downtown, Lovely said they needn’t fear any seedy elements.
Texas Hold’em is ‘not a game of cigar-smoking, bourbon swillers? or ‘back-room, low-life ruffians,? he said.
Given it’s a ‘game of mathematics, probability, and statistics,? Lovely said it attracts engineers, computer guys and people with math degrees as well as married couples.
‘Everyone can learn to play the game,? he said. ‘That’s the beauty of it.?
One of the best things about Texas Hold’em is it’s virtually impossible to cheat at.
‘Texas Hold’em is what they call a window game, meaning you have two cards (dealt to you) and then there are five cards that end up in the middle of the table face up that everyone shares,? he explained. ‘That takes away the element of cheating as far as stacking the deck, palming cards, all the normal cheating techniques that go on in stud poker.?
Nonprofit groups interested in holding a poker event can reach Lovely one of three ways ? 1) by phone at 248-224-6866; 2) by e-mail at fairtrade22a@aol.com; or 3) by mail at 1555 N. Baldwin Road, Oxford, MI 49371.