STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

TUESDAY, November 9, 2004

11:00 A.M.

MINUTES

On Tuesday, November 9, 2004, the Michigan Gaming Control Board held a public meeting at the Board office in the Cadillac Place, 3062 W. Grand Blvd, Suite L-700, Detroit, Michigan.

Present:               In attendance were the following Board members:

                                                          Damian Kassab, Chairman

                                                          Judge Benjamin Friedman

                                                          Donald Robinson

                                                          Barbara Rom

                                                          Judge Michael Stacey

                               Also attending were:

                                                          Daniel Gustafson

                                                          Patty James

                                                          Insp. Ellis Stafford

                                                          Ben McMakin

                                                          Tom Barker

                                                          John Page

                                                          Jack Cahill

Business:          Board Chairman Damian Kassab called the meeting to order at 11:02 a.m.  Chairman Kassab noted for the record that all Board members were present at the meeting.

                         Chairman Kassab stated the first order of business was to approve the minutes from the October 12, 2004 meeting.  He requested a motion to approve the minutes from the October 12, 2004 meeting.

                         It was moved and seconded that the minutes of the October 12, 2004 meeting be approved.  Motion carried.

                         Dan Gustafson next presented the Executive Director’s report.  In regards to staffing Mr. Gustafson advised the Board that Andrew Brisbo and Preston McBride were hired as Regulation Officers in the Board Enforcement Division.  He further advised that the MGCB staff now totals 99.  Mr. Gustafson also advised the Board that the agency currently has 102 authorized positions but due to a proposed reorganization the Department of Management and Budget has approved an additional 4 positions.

                         Mr. Gustafson proceeded to give an update regarding the Board’s budget.  Mr. Gustafson reported that for the fiscal year 2005, from October 1, 2004 through October 31, 2004, the Board has incurred expenditures in the amount of $427,628, leaving the unexpended balance of $17,885,972 in appropriated funding for FY 2005.  

                         Mr. Gustafson next reported that the aggregate revenue in taxes for all three Detroit casinos in October 2004 was up 1.46 percent compared to the same month last year.   The gaming taxes for the three Detroit casinos for October 2004 were $11.6 million compared to $7.65 million for the same period last year. 

                         Mr. Gustafson then proceeded to update the Board on the status of the issuance of temporary supplier licenses, full supplier licenses, vendor registrations, and supplier licensing exemptions, as well as the status of the issuance of temporary and permanent occupational licenses for the three casinos.

                         Mr. Gustafson also advised the Board that he has added a section to the Director’s Report entitled “Activities of the Michigan State Police”, which denotes ongoing activities of the MSP.

                         Upon conclusion of Mr. Gustafson’s report, it was moved by Ms. Rom and seconded by Judge Stacey that the Board accept the recommendations of the Executive Director regarding the 77 Level 1 and 2 occupational license applications as summarized in Exhibit 1.  A voice vote was taken.

                         Motion carried.

The next item considered by the Board was the Licensing Division’s staff recommendation regarding the pending application for approval of transfer of ownership interest in Custom Beverage, Inc.

                         There being no questions from Board members, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter an order approving the proposed transfer of ownership interest in Custom Beverage, Inc.  from Louise N. Thomas and Charles J. Thomas to Julie A. Chapman and Robert A. Chapman.  A voice vote was taken.

                         Motion carried.

The Board next considered the Executive Director's report and the Licensing Division's recommendation regarding the pending supplier license application of Traffic and Safety Control Systems, Inc.

Chairman Kassab noted for the record that there were no representatives of Traffic and Safety Control Systems, Inc. present at the meeting.

                         Again, there being no questions from Board members, it was moved by Judge Stacey and seconded by Ms. Rom that the Board enter an order finding and concluding that Traffic and Safety Control Systems, Inc. and its qualifiers are eligible and suitable for licensure.  A voice vote was taken.

                         Motion carried.

                         The next agenda item considered was the Executive Director's reports and the Licensing Division's staff recommendations regarding the pending gaming-related supplier license renewal applications of Osborne Coinage Company, Board File No. SL000095-04-001, and Midwest Game Supply Company, Board File No. SL000167-04-001.

                         Chairman Kassab noted for the record that Osborne Coinage Company and Midwest Game Supply Company were given written notification that the Board would consider their supplier license applications at today’s meeting.  Chairman Kassab further noted that there were no representatives for either company present at the meeting. 

                         Therefore, it was moved by Mr. Robinson and seconded by Judge Stacey that the Board enter orders finding and concluding that Osborne Coinage Company and Midwest Game Supply Company and their qualifiers are eligible and suitable for licensure and accordingly granting the request for renewal of their annual gaming-related supplier licenses for a new one year period beginning November 9, 2004.  A voice vote was taken.

                         Motion carried.

                         The Board next considered the request to withdraw supplier applications and waive one-year waiting periods for reapplication of 1) ComSource, Inc., and 2) New Parthenon Restaurant, Inc. 

                         Chairman Kassab noted for the record that there were no representatives for either company at the meeting.

                         There being no questions from Board members, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter orders granting the requests of ComSource, Inc. and New Parthenon Restaurant, Inc. for withdrawal of their supplier license applications and waiver of the one-year reapplication period for their non-gaming supplier licenses.  A voice vote was taken.

                         Motion carried.

                         There being no questions or comments from the public, it was moved by Ms. Rom and seconded by Judge Friedman that the Board go into closed session for the purpose of receiving legal advice and counsel from the Board’s attorney regarding pending Board litigation discussing background investigations, and receiving confidential notification from the Executive Director regarding the names of individuals placed on the Board’s Disassociated Persons List since the Board’s last public meeting as required by the Act.   A voice vote was taken.

                         Motion carried.

Meeting adjourned at 11:16 a.m.

                                 _______________________________________

                                 Patricia S. James

                                 Board Secretary