STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Albert Kahn Building

7430 Second Avenue, Suite 300

Detroit, Michigan

TUESDAY, FEBRUARY 13, 2001

7:00 P.M.

Minutes

On Tuesday, February 13, 2001, the Michigan Gaming Control Board held a public meeting at the Board Office in the Albert Kahn Building, 7430 Second avenue, Suite 300, Detroit, Michigan.

Present:                       

In attendance were the following Board members:

Thomas Denomme, Chairman

Rich Davis

Judge Geraldine Bledsoe Ford

Judge Michael Stacey

Also attending were:

Nelson Westrin

Patty James

Eric Eggan

Dewayne Brantley

Thomas Nelson

Nancy Horton

Carol Flores

Nick Alagna

Business:      The meeting was called to order at 7:00 p.m., at which time Chairman Denomme requested a motion for approval of the October 3, 2000 minutes. It was moved and seconded that the minutes of the October 3, 2000 meeting be approved.  Motion carried. 

Chairman Denomme requested a motion for adoption of Board Resolution number 2001-01 to acknowledge the contributions and accomplishments of former Board member Paula L. Blanchard, and commend her for her service to the Michigan Gaming Control Board. 

It was moved and seconded that Board Resolution 2001-01 be adopted.  The Resolution was unanimously adopted. 

Resolution 2001-01 was presented to Ms. Paula Blanchard.

Nelson Westrin presented the Executive Director s report.  Mr. Westrin stated that the Board has hired two new employees in the Administration Division, one in the East Lansing office and one in the Board s Detroit Office.  Also, two employees have left the Board s employment.  There are currently 74 Board employees with approval pending to fill 41 additional positions.

With regard to the budget, Mr. Westrin reported that the Board has incurred expenditures in the amount of $3,810,798 from October 1, 2000 through January 31, 2001, leaving a balance of $16,656,002 available for the remainder of the fiscal year, which ends September 30, 2001. 

Mr. Westrin also reported that the Governor presented his proposed Fiscal Year 2002 State Budget to the legislature on February 8, 2001 and that the budget includes an appropriation of $16,888,700 for the Michigan Gaming Control Board for fiscal year 2002.  Part of that appropriation is an allocation of $3,545,900 for the State Police and $831,600 for the Attorney General s office for reimbursement of the assistance that they provide to the Gaming Control Board.

Mr. Westrin stated that a casino license was issued on November 8, 2000 to the Greektown Casino, which opened without any major problems or incidents.

Mr. Westrin also reported that Board staff now monitors activities of the MGM Grand Detroit Casino, MotorCity Casino and Greektown Casino on a seven-day, 24-hour basis, including daily gaming tax returns and related revenue and expense records. 

Since the casinos respective openings, no citations for violations or disciplinary action have been taken against the casino licensees for violation of the Act or rules.

Mr. Westrin updated the Board on the third-quarter and calendar year s adjusted gross revenues for MGM Grand Detroit Casino, MotorCity Casino, and Greektown Casino.

Mr. Westrin updated the Board on the status of the issuance of temporary supplier licenses, full supplier licenses, vendors, and exemptions, as well as the status of the issuance of temporary and permanent occupational licenses for the three casinos.        

Mr. Westrin reported on the activities of the Board s Gaming Laboratory, which has generated additional state revenues totaling $91,790.  

Mr. Westrin further noted that Union workers at MGM Grand Detroit Casino and MotorCity Casino voted to approve their first three-year collective bargaining agreements.

On October 23, 2000, The United States Sixth Circuit Court of Appeals issued a decision upholding and affirming the previous decision of the United States District Court Judge dismissing a lawsuit filed by Barden Casino, L.L.C. against the City of Detroit, the Michigan Gaming Control Board and others.

Also, the Wayne County Circuit Court decided in favor of the City of Detroit against the Riverfront East Alliance.

On November 30, 2000, the Detroit City Council approved the extension of the three casino development agreements to December 31, 2001.

Mr. Westrin reported that in December 2000 Governor Engler reappointed Thomas Denomme, Chairman and Board member Geraldine Bledsoe Ford to new four-year terms ending December 31, 2004.  Governor Engler also

appointed Roman S. Gribbs as Ms. Blanchard s replacement.

Upon conclusion of Mr. Westrin s report, and there being no questions or comments from Board members, the Board moved to the business agenda of the meeting.

The Board considered staff recommendations for the granting and/or denial of 372 occupational licenses.  Staff recommended issuance of 331 licenses and denial of 41 licenses.

Upon motion and support, a roll-call vote was taken on the motion to accept and adopt the staff s occupational licensing recommendations summarized in Exhibit 1 and to direct the Executive Director to issue occupational licenses and Notices of Denial to the named applicants in accordance with the staff recommendation:

Mr. Denomme: Aye

Mr. Davis: Aye

Judge Ford: Aye

Judge Stacey: Aye

Motion carried.

The Board next considered staff recommendations for the granting of a full supplier license for two suppliers.

A motion was made and seconded to accept and adopt the staff s recommendation to approve a 1-year supplier license to Mikohn Gaming Corporation.  A roll-call was taken on the motion:

Mr. Denomme: Aye

Mr. Davis: Aye

Judge Ford: Aye

Judge Stacey: Aye

Motion carried.

A motion was made and seconded to accept and adopt the staff s recommendation to approve a 1-year supplier license to The Osborne Coinage Company.  A roll-call was taken on the motion:

Mr. Denomme: Aye

Mr. Davis: Aye

Judge Ford: Aye

Judge Stacey: Aye

Motion carried.

The Board next considered the hearing officers' Proposals for Decision (PFD) in nine occupational license denial appeal cases.  The Chair noted that the Board's deliberations and decision in each case was to be recorded and made a part of the contested case record for the case as well as the public meeting record.

The Board individually considered the PFDs in the matter of the denials of the occupational license applications of Brian Arnold, Case No. OLH-2000-15; Portia Dixon, Case No. OLH-2000-16; Angela Donald, Case No. OLH-2000-25; Ralph Holland, Case No. OLH-2000-05; Joseph Maillet, Case No. OLH-2000-03; Anthony Riccaddona, Case No. OLH-2000-09; Monique Tripp, Case No. OLH-2000-11; and Jesse Ward, Case No. OLH-2000-04.   It was noted that written notices of the Board's consideration and decision of the cases were sent to the Appellants and their attorneys, and that none were present. 

It was individually moved and seconded for each occupational license application that a Final Decision and Order be issued accepting and adopting the applicable PFD and denying the occupational license for Brian Arnold, Portia Dixon, Angela Donald, Ralph Holland, Joseph Maillet, Anthony Riccarddona, Monique Tripp and Jesse Ward.  A separate roll-call vote was taken for each motion with the same results:

Mr. Denomme: Aye

Mr. Davis: Aye

Judge Ford: Aye

Judge Stacey: Aye

Motions carried.

A motion was made and seconded to reverse the Board s prior denial and approve the occupational license application of Patricia Bosket, Case No. OLH-2000-13.  A roll-call was taken on the motion:

Mr. Denomme: Aye

Mr. Davis: Aye

Judge Ford: Aye

Judge Stacey: Aye

Motion carried.

The next order of business was the application for approval of transfer of interest from Silicon Gaming Incorporated to International Game Technology.   Mr. David Waddell of Fraser, Trebilcock, Davis and Foster entered his appearance on behalf of International Game Technology.

It was moved and seconded to approve the proposed transfer of 100 percent ownership interest in Silicon Gaming, Inc, from Silicon Gaming, Inc. to International Game Technology subject to final Board determination of the eligibility, qualifications and suitability of International Game Technology and its respective qualifiers and full compliance of Silicon Gaming, Inc. and International Game Technology with requirements of Part 5 of the Administrative Rules.  A roll-call vote was taken on the motion:

Mr. Denomme: Aye

Mr. Davis: Aye

Judge Ford: Aye

Judge Stacey: Aye

Motion carried.

The last item of business was to consider a proposed Board Resolution, No. 2001-02 clarifying the Board s policy regarding waiver of eligibility and suitability requirements for institutional investors. 

After Mr. Nelson Westrin and Mr. Tom Nelson presented comment in support of this resolution, a motion was made and supported that the Board approve and adopt proposed Board Resolution No. 2001-02.  A roll-call vote was taken on the motion:

Mr. Denomme: Aye

Mr. Davis: Aye

Judge Ford: Aye

Judge Stacey: Aye

Motion carried.

It was moved and seconded that the Board go into closed session to consider the pending application for placement on the Board s List of Disassociated Persons.  A roll-call vote was taken on the motion:

Mr. Denomme: Aye

Mr. Davis: Aye

Judge Ford: Aye

Judge Stacey: Aye

Motion carried.                         

There being no questions or comments from the public, it was moved and seconded that the meeting be adjourned.  Motion carried and the meeting was adjourned at 8:00 p.m.

Received and Filed:

Patricia S. James

Board Secretary