STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Albert Kahn Building

7430 Second Avenue, Suite 300

Detroit, Michigan

Tuesday, December 11, 2001

6:00 P.M.

MINUTES

On Tuesday, December 11, 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 Geraldine Bledsoe Ford

                                                Judge Roman S. Gribbs

                                                Judge Michael Stacey

                        Also attending were:

                                                Nelson Westrin

                                                Patty James

                                                Eric Eggan

                                                Bethany Scheib

                                                Ben McMakin

                                                Lisa Badalamenti

                                                Carol Flores

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 November 13, 2001 meeting.

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

                        Nelson Westrin next presented the Executive Director’s report.   Mr. Westrin advised the Board that there were two internal employee transfers within MGCB, which left staffing total still at 85.   Mr. Westrin also reported that the Board is currently 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 $1,116,944 from October 1, 2001 through November 30, 2001, leaving the unexpended balance of $15,771,756 in appropriated funding for the remainder of the fiscal year, which ends September 30, 2002. 

                        Mr. Westrin next reported that on November 30, 2001, the Detroit City Council approved an amendment extending the expiration date of the City’s development agreements with the three casinos, from December 31, 2001 to March 31, 2002.  Mr. Westrin also reported that new Mayor-elect Kwame Kilpatrick has announced that he will begin immediate negotiations with the three casino developers to resolve the location of the permanent casino complexes.

                        Mr. Westrin further advised the Board that he approved several transfers of less than one-percent interest in two supplier license holders listed in his written report.  He also advised the Board that the Licensing Division has completed its investigation on Rhonda Cohen, General Manager of MotorCity Casino and that the Board would be considering the Licensing Division’s recommendation regarding the suitability of Ms. Cohen as a MotorCity Casino qualifier as part of the business agenda.

                        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, Judge Roman S. Gribbs asked Mr. Westrin if the expectation that the three casinos might make a billion dollars this year was realistic.  Mr. Westrin advised that the financial performance of the casinos is very positive and if the casinos continued to have the same revenues in December as they did in November, they should top one billion dollars in adjusted gross revenues for calendar year 2001.

                        With no further questions or comments from the Board regarding the Executive Director’s report, Chairman Denomme proceeded to the business portion of the agenda. 

                        The first order of business was to consider the request received from Mr. Westrin from Mr. Leonard Wolfe, attorney for the Michigan’s Future Political Committee, to place the Committee’s request for declaratory ruling on the Board’s agenda, File No. DR-1999-01.  Mr. Denomme pointed out that this request was last considered at the October 9, 2001 public meeting, at which time the Board decided to table the request indefinitely.  It was noted for the record that Mr. Wolfe was not present at tonight’s meeting.

                        There being no questions or comments from the Board, it was moved by Mr. Gribbs and seconded by Mr. Stacey that a roll-call vote be taken on the motion that the Board place the Michigan’s Future Political Committee’s declaratory ruling request on tonight’s agenda for Board consideration and action.

                                    Chairman Denomme:            Aye

                                    Judge Ford:            Aye

                                    Judge Gribbs:            Aye

                                    Judge Stacey:            Aye

                        Motion carried and the Board placed the item on the agenda for immediate consideration.

                        It was next moved by Mr. Gribbs and seconded by Ms. Ford that the Board deny the Michigan’s Future Political Committee’s request for a declaratory ruling and decline to issue a declaratory ruling as to the applicability of Section 7(b) of the Act to the stated facts set forth in the Committee’s request.

                                    Chairman Denomme:            Aye

                                    Judge Ford:            Aye

                                    Judge Gribbs:            Aye

                                    Judge Stacey:            Aye

                        Motion carried.

                        The Board next considered the Licensing Division’s recommendation that Harry James Murphy be disqualified from performing functions as an officer, agent or principal employee of Hotel Employees and Restaurant Employees Union Local 24, also know as H.E.R.E., in its representation of casino gaming employees, Board File No. UR-01-2484. 

                        Mr. Denomme stated that according to the background investigation report, Mr. Murphy had several prior theft-related felony convictions, all but one of which he failed to initially disclose on his required union registration form filed with the Board.   Mr. Denomme further stated that Mr. Murphy’s failure to disclose such convictions constituted grounds for Mr. Murphy’s disqualification from performing certain union functions and representing casino employees.  It was also noted by Mr. Denomme that the union secretary/treasurer advised Licensing staff that the union would not be requesting a hearing on Mr. Murphy’s proposed disqualification.

                        Upon motion of Ms. Ford and support from Mr. Gribbs and Mr. Stacey, a roll call vote was taken on the motion that the Board enter an order finding and concluding, by clear and convincing evidence presented in the Licensing Division’s staff report and recommendation, that the required statutory grounds for disqualification of Harry James Murphy exist and ordering that he shall accordingly be disqualified as an officer, agent or principal employee of the Hotel Employees and Restaurant Employees Union Local 24, from performing any of the following union functions in its representation of casino gaming employees: (a) adjusting grievances for or negotiation or administering the wages, hours, working conditions or employment conditions of casino gaming employees; (b) soliciting and collecting or receiving from casino gaming employees any dues, assessments, levies, fines, contributions or other charges within this state, for or on behalf of the local labor organization; (c) supervising, directing or controlling other officers, agents or employees of the local labor organization in performing functions described in subdivisions (a) and (b).

      Chairman Denomme:      Aye

      Judge Ford:      Aye

      Judge Gribbs:      Aye

      Judge Stacey:      Aye

Motion carried.

                        The next order of business was to consider Licensing staff’s recommendation regarding 214 pending level 2 occupational license applications. Staff recommended issuance of 212 licenses and denial of 2 licenses.

It was moved by Mr. Stacey and seconded by Mr. Gribbs that the Board enter an order accepting and adopting the Licensing Division staff’s recommendation regarding the 214 level 2 occupational license applications listed and summarized in Exhibit 1, and also directing that the Executive Director issue occupational licenses to the named applicants in accordance with the staff’s written recommendation.

      Chairman Denomme:      Aye

      Judge Ford:      Aye

      Judge Gribbs:      Aye

      Judge Stacey:      Aye

Motion carried.

                              The next order of business on the agenda was to consider the Executive Director’s report and the Licensing Division staff’s recommendation regarding the eligibility and suitability of Rhonda Cohen as a required qualifier of casino licensee Detroit Entertainment, L.L.C., doing business as MotorCity Casino, Board File No. MCC-01-005.

                              It was noted by Mr. Denomme for the record that Board representatives, Mr. Ben McMakin and Ms. Carol Flores were present.  It was further noted that neither Ms. Cohen nor any representative from MotorCity Casino were present at tonight’s meeting.

                              It was moved by Ms. Ford and seconded by Mr. Stacey that the Board enter an order finding Rhonda Cohen eligible and suitable for licensure as a required qualifier of casino licensee Detroit Entertainment, L.L.C., under the licensing standards and requirements of the Act and Board rules, based upon the background investigation report and recommendation of 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 AGI Distribution, Inc., Board File No. SL-01-0259.

                              It was noted for the record that Board representatives, Mr. Ben McMakin and Ms. Carol Flores were present.  It was also noted that no representatives from AGI Distribution were present at tonight’s meeting.

                              Upon motion of Mr. Gribbs and support from Ms. Ford, it was moved that the Board enter an order finding and concluding that AGI Distribution, Inc., 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 grant the supplier license application of AGI Distribution, Inc., 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 Paul-Son Gaming Supplies, Inc., Board File No. SL-01-0201. 

                              It was noted for the record that Board representatives, Mr. Ben McMakin and Ms. Carol Flores were present.  It was also noted that no representatives from Paul-Son Gaming were present at tonight’s meeting.

                              It was moved by Ms. Ford and seconded by Mr. Gribbs and Mr. Stacey that the Board enter an order finding and concluding that Paul-Son Gaming Supplies, Inc., 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 grant the supplier license application of Paul-Son Gaming Supplies, Inc., 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 Atlantic City Coin & Slot Service Company, doing business as A.C. Coin, Board File No. SL-01-0243.

                              It was noted for the record that Board representatives, Mr. Ben McMakin and Ms. Carol Flores were present.  It was also noted that no representatives from A.C. Coin were present at tonight’s meeting.

                              It was moved by Mr. Gribbs and seconded by Mr. Stacey that the Board enter an order finding and concluding that Atlantic City Coin & Slot Service Company, 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 grant the supplier license application of Atlantic City Coin & Slot Service Company, 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 next order of business was to consider a Board resolution, which would authorize the Executive Director to consider and decide applications for placements on the Board’s List of Disassociated Persons under MCL 432.225.

                              It was moved by Mr. Gribbs and seconded by Ms. Ford to adopt the resolution, with the stipulation that Mr. Westrin would advise the Board of decisions that he has made and that the Board reserves the right to reconsider further any of his decisions. 

                              A roll call was taken on the motion that the Board adopt the proposed Board Resolution No. 2001-06 authoring the Executive Director to consider and decide applications for placement on the Board’s List of Disassociated Persons.

      Chairman Denomme:      Aye

      Judge Ford:      Aye

      Judge Gribbs:      Aye

      Judge Stacey:      Aye

Motion carried.

                              As the final item of business, it was moved by Ms. Ford and seconded Mr. Gribbs and Mr. Stacey 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.

                              The Board next gave opportunity for public comment.  There being no further Board or public comment, it was moved by Mr. Stacey and seconded by Mr. Gribbs that the meeting be adjourned.  Motion carried and the meeting was adjourned at 6:30 p.m.

                              ______

                                Patricia S. James

                                Board Secretary