STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Albert Kahn Building

7430 Second Avenue, Suite 300

Detroit, Michigan

TUESDAY, MARCH 27, 2001

7:00 P.M.

MINUTES

On Tuesday, March 27, 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 Michael Stacey

Judge Roman S. Gribbs

Also attending were:

Nelson Westrin

Patty James

Thomas Nelson

Pat Leen

Nick Alagna

Eric Eggan

Carol Flores

 

Business: The meeting was called to order at 7:00 p.m., at which time Chairman Denomme introduced Judge Roman S. Gribbs who was appointed to the Board by Governor John Engler on February 13, 2001. Judge Gribbs replaces former member Paula Blanchard who resigned from the Board in December 2000.

Chairman Denomme also stated that Judge Ford was unable to attend the meeting, but there was still a quorum of Board members.

Chairman Denomme requested a motion for approval of the February 13, 2001 minutes.

It was moved and seconded that the minutes of the February 13, 2001 meeting be approved. Motion carried.

Nelson Westrin presented the Executive Director's report. Mr. Westrin stated that there have been no changes in staffing since the last Board meeting. There are currently 74 Board employees.

Mr. Westrin advised that a Distinguished Employee Award Program was established to honor and recognize the outstanding efforts and achievement of Board employees. Mr. Westrin also advised the Board that he would be introducing the award winners after the Executive Director's report was completed.

With regard to the budget, Mr. Westrin reported that the Board has incurred expenditures in the amount of $4,918,018 from October 1, 2000 through February 28, 2001, leaving the balance of $15,548,782 of available appropriate funding for the remainder of the fiscal year, which ends September 30, 2001.

Mr. Westrin reported that all three casinos are operating on a seven-day, 24-hour basis, and that all operations activities, daily gaming tax returns and related revenue and expense records are regularly monitored by Board regulatory and audit staff. He also reported that no citations for violations or disciplinary action have been taken against the casino licensees for violation of the Act or rules since their respective openings.

Mr. Westrin updated the Board on the adjusted gross revenues for MGM Grand Detroit Casino, MotorCity Casino and Greektown Casino for the calendar year 2001 through March 20, 2001.

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 that as part of the agenda, Nick Alagna, Employee Licensing Section Manager, would be presenting an overview of the Licensing Section's operations and Pat Leen, Compliance Manager, would be describing the Dispute Resolution Policies and Procedures.

Upon conclusion of Mr. Westrin's report, and there being no questions or comments from Board members, the Board moved to the presentation of the three first quarter 2001 Distinguished Employee Award winners, Pamela Aungst, Sandra Johnson and Rae Jim Burnett.

Upon completion of the introduction of the award winners, Nick Alagna and Pat Leen, respectively, gave their presentations to the Board.

Upon conclusion of these presentations, and there being no questions or comments from Board members, the Board moved to the consideration of Licensing and Compliance Division's recommendations on 175 pending Occupational License Applicants. Staff recommended issuance of 156 licenses and denial of 19 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 Gribbs: Aye

Judge Stacey: Aye

Motion carried.

The Board next reconsidered an occupational license application for Lanicki Johnson, which it had previously denied.

A motion was made and seconded to rescind, vacate and set aside the Board's prior decision and Notice of Denial of the occupational license application for Lanicki Johnson and refer the application back to staff for further review and recommendation. A roll-call was taken on the motion:

Mr. Denomme: Aye

Mr. Davis: Aye

Judge Gribbs: Aye

Judge Stacey: Aye

Motion carried.

The Board next considered the hearing officers' Proposals for Decision (PFD) in 3 appealed occupational license denial 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 O'Bray Jerome Dixon, Case No. OLH-2000-18; Allen S. Gaetke, Case No. OLH-2000-19; and Carrie L. Driver, Case No. OLH-2000-20. It was noted that written notices of the Board's consideration and decision of the cases at tonight's hearing were sent to the Appellants and their attorneys, and that none were present.

It was individually moved and seconded for each appealed occupational license application denial that a Final Decision and Order be issued accepting, adopting and incorporating therein the hearing officers' proposal to deny the occupational license for O'Bray Jerome Dixon, Allen S. Gaetke, and Carrie L. Driver. A separate roll-call vote was taken for each motion with the same results:

Mr. Denomme: Aye

Mr. Davis: Aye

Judge Gribbs: Aye

Judge Stacey: Aye

Motion carried.

The last item of business was to consider and decide an application for Board approval of the Transfer and Acquisition of Interest from the Bud Jones Company, Inc. to Etablissements Bourgogne et Grasset, File No. TR-000133-0001.

It was moved and seconded that the Board approve the transfer of 100 percent ownership interest in the Bud Jones Company, Inc. to Etablissements Bourgogne et Grasset subject to final Board determination of the eligibility, qualifications and suitability for licensure for these companies and all other required qualifiers. A roll-call vote was taken on the motion:

Mr. Denomme: Aye

Mr. Davis: Aye

Judge Gribbs: Aye

Judge Stacey: Aye

Motion carried.

It was moved and seconded that the Board go into closed session to consider and decide the pending applications 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 Gribbs: Aye

Judge Stacey: Aye

Motion carried.

The Chairman opened the floor for public comments.

Mr. Bill McMaster, representing TaxPayer's United, addressed the Board. Mr. McMaster expressed dismay at the lack of response from the Michigan Economic Development Corporation regarding the TaxPayer's United Freedom of Information request for Indian Gaming revenue statistics.

Mr. McMaster stated that due to the lack of response from the Michigan Economic Development Corporation he would be filing this Freedom of Information request with the Michigan Gaming Control Board and he hoped to receive the same cooperation from the Board that he has received in the past.

There being no other questions or comments from the public, it was moved and seconded that the meeting be adjourned.

Motion carried and the meeting was adjourned.

Received and Filed:

Patricia S. James

Board Secretary