STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, March 8, 2005

10:30 A.M.

MINUTES

On Tuesday, March 8, 2005, 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

                                                Barbara Rom

                                                Judge Michael Stacey

                        Also attending were:

                                                Daniel Gustafson

                                                Patty James

                                                DF/L Vicki Johnson

                                                Ben McMakin

                                                Tom Barker

                                                John Page

                                                Jack Cahill

Business:          Board Chairman Damian Kassab called the meeting to order at 11:13 a.m.  Chairman Kassab noted for the record that Mr. Robinson was not able to attend the meeting due to a prior commitment.

                        Chairman Kassab stated the first order of business was to approve the minutes from the February 8, 2005 meeting.  He requested a motion to approve the minutes from the February 8, 2005 meeting.

                        It was moved and seconded that the minutes of the February 8, 2005 meeting be approved.  Motion carried.

                        Dan Gustafson next presented the Executive Director’s report.  In regards to staffing Mr. Gustafson advised the Board that Chris Adams has been hired as  Lab Manager for the Board's Gaming Laboratory Section.  Mr. Gustafson further advised the Board that the MGCB staff now total 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 February 28, 2005, the Board has incurred expenditures in the amount of $5,581.096 leaving the unexpended balance of almost $13 million in appropriated funding for FY 2005.  

                        Mr. Gustafson next reported that for February 2005, the gaming taxes for the three Detroit casinos were $12.37 million compared to $8.27 million for the same period last year, with the difference being the increase in the 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.

                        Mr. Gustafson further reported that the Michigan State Police reported that their gaming section staffing has been further reduced with the transfer of Trooper Tim Holme to the Detroit Freeway Post.  Mr. Gustafson then proceeded to update the Board on MSP’s Board-related activities.

                        Upon conclusion of Mr. Gustafson’s report a discussion ensued between Judge Stacey, D/F/L Johnson and Mr. Gustafson regarding the vacant positions within the Michigan State Police Gaming Section.

                        Next Chairman Kassab requested a motion to accept the recommendations of the Executive Director and the Licensing Division’s staff regarding the 71 Level 1 and 2 occupational license applications. 

                        It was moved by Judge Stacey and seconded by Judge Friedman to accept the recommendations of the Executive Director and the Licensing Division’s staff for the applications summarized in Exhibit 1.  A voice roll call was taken.

                        Motion carried.

                        The Board next considered the Acknowledgment of Violation of MotorCity Casino pertaining to a liquor violation, which was to be adjourned and taken up at a special meeting or in tandem with the request for transfer of interest in the casino license.

                        Therefore, it was moved by Judge Friedman and seconded by Judge Stacey to adjourn the Acknowledgement of Violation of MotorCity Casino until a future date.  A roll call was taken.

                                    Mr. Kassab:            Aye

                                    Judge Friedman:       Aye

                                    Ms. Rom:                 Aye

                                    Judge Stacey:          Aye

                        Motion carried.

                        The next agenda item considered was the Board staff’s recommendation regarding the request to withdraw the supplier license application and waiver of the one-year waiting period for LaGrasso Brothers, Inc., Board File No. SL000668-05-001.

                        After Chairman Kassab noted for the record that there were no representatives for LaGrasso Brothers, Inc. present at the meeting, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter an order granting the request of LaGrasso Brothers, Inc. for withdrawal of its supplier license application and waiver of the one-year reapplication period.  A voice roll call was taken.

                        Motion carried.

                        The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendation that the Board issue a notice of deficiency establishing a time frame to correct the deficiency and potential denial of the gaming-related supplier license application of Henderson Electric.

                        After questions by Board members, it was determined that the proposed Board order cited the deficiency as failing to cooperate and stipulated a 21-day time frame for the applicant to initiate contact with Board staff to correct the deficiency.  Inasmuch at the proposed Board order was inconsistent with the Board staff’s recommendation, it was moved by Judge Stacey that this agenda item be withdrawn from today’s agenda and be considered at a later date.  A roll call was taken.

                                    Mr. Kassab:            Aye

                                    Judge Friedman:       Aye

                                    Ms. Rom:                Aye

                                    Judge Stacey:         Aye

                       Motion carried.

                        There being no other license applications to consider, it was moved by Judge Friedman and seconded by Judge Stacey that the Board go into closed session immediately following the conclusion of the public meeting for the purpose of receiving legal advice and counsel from the Board’s attorney regarding pending Board litigation, 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.

There being no comments from the public, Chairman Kassab adjourned the meeting, at 11:31 a.m.

                              ______

                                Patricia S. James

                                Board Secretary