STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Albert Kahn Building
7430 Second Avenue, Suite 300
Detroit, Michigan

TUESDAY, November 13, 2001

6:00 P.M.

MINUTES

On Tuesday, November 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

Judge Roman S. Gribbs

Judge Geraldine Bledsoe Ford

Judge Michael Stacey                                                       

Also attending were:

Nelson Westrin

Patty James

Eric Eggan

Dewayne Brantley                                                       

Business:          
The meeting was called to order at 6:00 p.m., at which time Chairman Denomme stated that Rich Davis was excused from the meeting due to other commitments.  Chairman Denomme next stated that Board members present have received copies of the minutes from the last Board meeting and there being no comments, changes or corrections to the minutes, he requested a motion to approve the minutes from the October 9, 2001 meeting.

It was moved and seconded that the minutes of the October 9, 2001 meeting be approved.  Motion carried.

Nelson Westrin next presented the Executive Director s report.   Mr. Westrin advised the Board that 1 Auditor, Abdul Mutahr and a second lab engineer, Jim Bridgewater had been hired.  Mr. Westrin further advised the

Board that Rick Percy, a regulation officer, had left the agency to work in the private sector.  Currently, with the addition of two new employees and the loss of one, the Board s staffing total is 85.  Mr. Westrin also reported that the Board has been authorized to hire 101 employees and is in the process of interviewing a number of applicants for several positions.  Mr. Westrin stated that he anticipated that these positions would be filled within the next 2 months.                             

Mr. Westrin next gave an update regarding the Board s budget.  Mr. Westrin reported that the Board has incurred expenditures in the amount of $467,818 from October 1, 2001 through October 31, 2001, leaving the unexpended balance of $16,420,882 in appropriated funding for the remainder of the fiscal year, which ends September 30, 2002.  Mr. Westrin next reported that on October 31, 2001, Wayne County Circuit Judge, Maggie Drake, sentenced Brent Morris, who had been previously convicted in September on four counts of cheating at the Greektown Casino in violation of the Gaming Control and Revenue Act.  Judge Drake sentenced Mr. Morris to 7 to 25 years in prison, ordered that the $34,245 found on Mr. Morris at the time of his arrest be turned over to Greektown Casino as partial restitution for the estimated $86,000 that he cheated the casino out of, and  also fined Mr. Morris $4,000 for his four counts of cheating.  Mr. Westrin further stated that this case is the first one involving a professional cheat convicted of cheating at our licensed Detroit casinos.Mr. Westrin 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.

Having concluded his report and with no questions or comments forthcoming from the Board, Mr. Westrin turned the floor back to Chairman Denomme.

Chairman Denomme then proceeded to the business portion of the agenda.  

The first order of business was to consider the annual casino renewal and application of MGM Grand Detroit, L.L.C., File No. CA-01-1999-02R.  Mr. Denomme advised the Board that MGM Grand Detroit Casino timely filed its renewal report and fee to the Board.  He further advised that the Board s Licensing Division staff have reviewed and investigated the information submitted in MGM s latest casino license renewal report, and each Board member had received a copy of the Executive Director s investigative report.

Mr. Denomme then asked any representatives from MGM to come forward and identify themselves for the record.  Present was Scott Snow, Chief Operating Officer.  Mr. Snow proceeded to give a brief overview of MGM Grand Detroit Casino s operations and commitments for the previous 12 months.

Upon conclusion of Mr. Snow s comments, it was moved and seconded that a roll-call vote be taken on the motion that the Board issue a Notice of Renewal to MGM Grand Detroit, L.L.C., renewing its annual casino license for the period from November 13, 2001 through November 12, 2002.

Chairman Denomme:     Aye

Judge Ford:                  Aye

Judge Gribbs:               Aye

Judge Stacey:              Aye

Motion carried.

The next item of business was to consider and decide the Licensing Division s recommendations regarding 67 pending occupational licensing applicants.  Staff recommended issuance of all 67 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 to the named applicants in accordance with the staff s recommendation:

Chairman Denomme:     Aye

Judge Ford:                  Aye

Judge Gribbs:               Aye

Judge Stacey:              Aye

Motion carried.

The Board next considered the recommendation from the Licensing Division regarding the pending supplier application of Anchor Coin, also known as Anchor Games, File No. SL-000008.

It was noted for the record that Mr. Dave Waddell from Fraser, Trebilcock was present on behalf of Anchor Coin.

It was moved and seconded that the Board enter an Order Finding and Concluding that Anchor Coin, doing business as Anchor Games, is eligible and suitable for licensure under the licensing requirements of the Michigan Gaming Control and Revenue Act, as amended, and Administrative Rules of the Board, and accordingly granting the supplier license application of Anchor Coin based upon the written background investigation report and recommendation of the Executive Director and the Board s Licensing staff.  A roll call was taken on the motion:

Chairman Denomme: Aye

Judge Ford: Aye

Judge Gribbs: Aye

Judge Stacey: Aye

Motion carried.

The Board next considered the Licensing Division s recommendation regarding the pending supplier application of Midwest Game Supply, File No. SL-000167.  

It was noted for the record that Board representatives, Ms. Carol Flores and Mr. Ben McMakin, were present.  It was also noted that Midwest Game Supply had no representatives present.

Upon motion and support, a roll call vote was taken on the motion that the Board enter an Order Finding and Concluding that Midwest Game Supply is eligible and suitable for licensure under the licensing requirements of the Michigan Gaming Control and Revenue Act, as amended, and Administrative Rules of the Board, and accordingly granting the supplier license application of Midwest Game Supply based upon the written background investigation report and recommendation of the Executive Director and the Board s Licensing Division staff.

Chairman Denomme:     Aye

Judge Ford:                  Aye

Judge Gribbs:               Aye

Judge Stacey:              Aye

Motion carried.

The Board next considered the recommendation from the Licensing Division regarding the pending supplier application of Diamond Dismantling, Inc., File No. SL-000096.  

It was noted for the record that there were no representatives for Diamond Dismantling, Inc. present.

Mr. Denomme requested that either Mr. McMakin or Ms. Flores state the reasons for the Licensing Division s denial recommendation of Diamond Dismantling s supplier license application.

Upon conclusion of comments from Ms. Flores, it was moved and seconded that the Board deny the supplier license application of Diamond Dismantling, Inc. for the reasons stated in the written recommendation of the

Board's Executive Director and the Board s Licensing Division staff.  A roll call was taken on the motion:

Chairman Denomme: Aye

Judge Ford:                  Aye

Judge Gribbs:               Aye

Judge Stacey:              Aye

Motion carried.

The Board next considered the recommendation from the Licensing Division regarding the pending supplier application of North Shore Products, Inc., File No. SL-000164.  

It was noted for the record that there were no representatives for North Shore Products, Inc. present.

It was also noted that the Board s Licensing Division staff recommended denial of North Shore Products, Inc. s supplier license application.  Mr. Denomme invited Ms. Flores to state the reasons for this recommendation.

Upon conclusion of comments from Ms. Flores, it was moved and seconded that the Board deny the supplier license application of North Shore Products, Inc. for the reasons stated in the written recommendation of the Board s Executive Director and the Board s Licensing Division staff.  A roll call was taken on the motion:

Chairman Denomme:     Aye

Judge Ford:                  Aye

Judge Gribbs:               Aye

Judge Stacey:              Aye

Motion carried.

The next item of business was to consider the proposed Board Resolution authorizing the Executive Director to consider and decide requests for Board approval of transfers of ownership interest of less than one percent in casino and supplier license applicants and licensees.

Upon motion and support, a roll-call vote was taken on the motion that the Board adopt the proposed Board Resolution authorizing the Executive Director to consider and decide the requests for Board approval of transfers of ownership interest of less than one percent in casino and supplier license applicants and licensees.

Chairman Denomme:     Aye

Judge Ford:                  Aye

Judge Gribbs:               Aye

Judge Stacey:              Aye

Motion carried.

As the final item of business, it was moved and seconded to go into closed session immediately following the conclusion of the public meeting to consider and decide pending confidential applications for placement on the Board s List of Disassociated Persons.  A roll call was taken on the motion:     

Chairman Denomme:     Aye

Judge Ford:                  Aye

Judge Gribbs:               Aye

Judge Stacey:              Aye

Motion carried.

There being no further Board or public comment, it was moved and seconded that the meeting be adjourned.  Motion carried and the meeting was adjourned at 6:35 p.m.

                                                                                                                                       
Patricia S. James

Board Secretary