STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

TUESDAY, December 14, 2004

11:00 A.M.

MINUTES

On Tuesday, December 14, 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

                                                Judge Michael Stacey

                        Also attending were:

                                                Daniel Gustafson

                                                Patty James

                                                Insp. Ellis Stafford

                                                Ben McMakin

                                                Tom Barker

                                                John Page

                                                Jack Cahill

                                                Bethany Scheib

Business:         Board Chairman Damian Kassab called the meeting to order at 10:50 a.m.  Chairman Kassab noted for the record that Ms. Rom was not present at the meeting.

                        Chairman Kassab stated the first order of business was to approve the minutes from the November 9, 2004 meeting.  He requested a motion to approve the minutes from the November 9, 2004 meeting.

                        It was moved and seconded that the minutes of the November 9, 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 Lisa Forrester, an Auditor in the Enforcement Division, has left the Board for a position at Volkswagen.  He further advised that the MGCB staff now totals 98 with 8 authorized positions yet to be filled. 

                        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 November 30, 2004, the Board has incurred expenditures in the amount of $1,754,152, leaving the unexpended balance of just over $16 million in appropriated funding for FY 2005.  

                        Mr. Gustafson next reported that the aggregate revenue in taxes for all three Detroit casinos in November 2004 was down .48 percent compared to the same month last year.   The gaming taxes for the three Detroit casinos for October 2004 were $11.31 million compared to $7.61 million for the same period last year, with the higher amount reflecting the increased tax rate.

                        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.

                        Upon conclusion of Mr. Gustafson’s report, it was moved by Judge Friedman and seconded by Judge Stacey that the Board accept the recommendations of the Executive Director regarding the 89 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 Happ Controls, Inc.

Chairman Kassab noted for the record the presence of Donna Moore, counsel for Happ Controls, Inc.

                        There being no questions from Board members, it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter an order approving the proposed transfer of ownership interest in Happ Controls, Inc. from Frank L. Happ and Pfingsten Funds to Leonardus Albertus Patrick Suverein.  A voice vote was taken.

Motion carried.

                       The Board next considered the Executive Director's reports and the Licensing Division's recommendations regarding the pending supplier license applications of ComSource, Inc., Hillside Productions, Inc., and Lavdas Enterprises, Inc.

Again, there being no questions from Board members, it was moved by Mr. Robinson and seconded by Judge Friedman that the Board enter orders finding and concluding that ComSource, Inc., Hillside Productions, Inc., and Lavdas Enterprises, Inc. and their qualifiers are eligible and suitable for licensure.  A voice vote was taken.

                        Motion carried.

                        The Board next considered Young Electric Sign Company’s request to withdraw its supplier application. 

                        Chairman Kassab noted for the record the presence of Mr. Dave Waddell, counsel for Young Electric Sign Company.

                        After brief comments from Mr. Waddell, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter an order granting the request of Young Electric Sign Company to withdrawal its supplier license application.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the requests to withdraw non-gaming supplier applications and waive one-year waiting periods for reapplication for McInerney, Inc. and Jenkins Construction Company.

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

                        There being no questions from Board members, it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter orders granting the requests of McInerney, Inc. and Jenkins Construction Company 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.

                        The next agenda item considered by the Board was the Proposal for Decision in the matter of the denial of Delores Jones’ application for an occupational license.

                        Chairman Kassab recognized for the record the presence of Delores Jones and Assistant Attorney General, Ms. Bethany Scheib.

                        After a brief summation of the case, comments from Ms. Scheib, Assistant Attorney General In Charge Jack Cahill, Ms. Jones and questions from Board members, it was moved by Judge Friedman and seconded by Mr. Robinson, that the Board remand the order back to the hearing officer for taking of testimony and/or entry of exhibits.  The following roll call vote was taken:

                                    Chairman Kassab:            Aye

                                    Judge Friedman:               Aye

                                    Mr. Robinson:                     Aye

                                    Judge Stacey:                    Aye

                        Motion carried.

                        The Board next considered the Proposal for Decision in the matter of the denial of Patricia Wilson’s application for an occupational license.

                        Once again, Chairman Kassab recognized Ms. Scheib’s presence for the record and invited Ms. Scheib to give a brief history of the case.

                        There being no questions from Board members upon conclusion of Ms. Scheib’s summation, it was moved by Mr. Robinson and seconded by Judge Stacey that the Board enter a final decision and order denying Patricia Wilson’s application for an occupational license.  A voice vote was taken.

                        Motion carried.

                        The next agenda item considered was the Proposal for Decision in the matter of the denial of Eagle Rock Associates, L.L.C.’s application for a supplier license.

                        Chairman Kassab noted for the record the presence of Mr. Lee Juve, part owner of Eagle Rock Associates, and Mr. John Agnew, Controller and Treasurer of the company.

                        Ms. Scheib informed the Board that Mr. Bonga, part owner of Eagle Rock, was unable to attend in person and had requested that he be allowed to participate in the proceedings by telephone. 

                        After a brief discussion regarding Mr. Bonga’s request, it was moved by Judge Friedman and seconded by Chairman Kassab to permit telephone participation by Mr. Bonga.  The following roll call vote was taken:

                                    Chairman Kassab:            Aye

                                    Judge Friedman:               Nay

                                    Mr. Robinson:                    Nay

                                    Judge Stacey:                    Nay

                        Motion denied.

                        Chairman Kassab then invited Ms. Scheib to present the case to the Board.  After comments made by Mr. Juve and Mr. Agnew and a discussion between Chairman Kassab and Mr. Cahill, Mr. Agnew read a prepared statement from Mr. Bonga.

                        Upon conclusion of Mr. Bonga’s statement, it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter a final decision and order in the matter of the denial of Eagle Rock Associates, L.L.C.’s application for a supplier license, accepting, adopting and incorporating the Hearing Officer’s Proposal for Decision in the matter in its entirety and denying the supplier license application.  A roll call vote was taken.

                                    Chairman Kassab:            Aye

                                    Judge Friedman:                Aye

                                    Mr. Robinson:                     Aye

                                    Judge Stacey:                    Aye

                        Motion carried.

                        The Board next considered the Proposal for Decisions in the matter of the disciplinary actions of occupational licensees Jermaine Williamson and James Parish.

                        Once again, Chairman Kassab recognized Ms. Scheib’s presence and also noted for the record that neither the occupational licensees nor their representatives were present at the meeting.

                        After an overview of the case, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board enter final decisions and orders accepting, adopting and incorporating the Hearing Officer’s proposal in each matter and revoking the occupational licenses of Jermaine Williamson and James Parish.  A voice vote was taken.

                        Motion carried.

                        There being no questions or comments from the public, it was moved by Mr. Robinson 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 12:06 p.m.

                              ______

                                Patricia S. James

                                Board Secretary