STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, May 10, 2005

10:30 A.M.

MINUTES

On Tuesday, May 10, 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

                                                 Donald Robinson

                                                 Barbara Rom

                                                 Judge Michael Stacey

                         Also attending were:

                                                 Daniel Gustafson

                                                 Patty James

                                                 Inspector Ellis Stafford

                                                 Ben McMakin

                                                 Tom Barker

                                                 John Page

                                                 Jack Cahill

Business:         Board Chairman Damian Kassab called the meeting to order at 11:00 a.m.  Chairman Kassab noted for the record that all Board members were present at the meeting.

                         Chairman Kassab stated the first order of business was to approve the minutes from the April 12 and 13, 2005 meetings.  He requested a motion to approve the minutes from the April 12 and 13, 2005 meetings.

                         It was moved and seconded that the minutes of the April 12 and 13, 2005 meetings be approved.  Motion carried.

                         Mr. Gustafson next presented the Executive Director’s report.  In regards to the Board’s budget, Mr. Gustafson reported that for the fiscal year 2005, from October 1, 2004 through April 30, 2005, the Board has incurred expenditures just under 7.5 million dollars leaving the unexpended balance of 10.9 million dollars in appropriated funding for FY 2005.  

                         Mr. Gustafson next reported that for April 2005, the aggregate revenue in taxes for all three Detroit casinos was down 7.35 percent compared to the same month last year.  The gaming taxes for the three Detroit casinos for April 2005 were $12.56 million compared to $9.077 million for the same period last year, with the difference being the increase in the tax rate.

                         Mr. Gustafson noted that since the last Board meeting, D/L Eric Olds was transferred from the MSP Gaming Section to COMET, which is the Conspiracy Crimes Unit.  Mr. Gustafson also noted that MSP still has a number of vacancies as a result of the low number of troops currently in MSP. 

                         Next Mr. Gustafson reported that the Sixth Circuit Court of Appeals in Cincinnati has accepted the settlements between Lac Vieux Desert Tribe of Superior Chippewa Indians and MotorCity and Greektown Casinos, and has thrown out claims against the MGM casino, lifting the injunction.  This decision allows the three Detroit casinos to move forward on developing permanent casinos.

                         Upon conclusion of Mr. Gustafson’s report and questions from Board members regarding the permanent casinos, Chairman Kassab requested a motion to accept the recommendations of the Executive Director and the Licensing Division’s staff regarding the 77 Level 1 and 2 occupational license applications. 

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

                         Motion carried.

                         The Board next considered the pending application for approval of transfer of interest in People’s Store Fixture d/b/a People’s Restaurant Equipment Company.

                         Chairman Kassab noted for the record that there were no representatives from People’s Store Fixture present at the meeting.

                         Therefore, it was moved by Ms. Rom and seconded by Judge Stacey that the Board enter an order approving the proposed transfer of ownership interest in People’s Store Fixture from Frederick Muller to Gary M. Corsi.  A voice vote was taken.

                         Motion carried.

                         The Board next considered the Executive Director’s Report and the Board staff’s recommendation regarding the pending supplier applications of Limbach Company, McInerney, Inc. and Peash, Inc.

                         There being no questions from Board members, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter orders finding the Limbach Company, McInerney, Inc. and Peash, Inc. d/b/a Flowers and More, and their qualifiers are eligible and suitable for licensure.  A voice vote was taken.

                         Motion carried.

                         The next agenda item considered was the denial of Hiram Duff’s application for an occupational license. 

                         Chairman Kassab requested that Ms. Bethany Scheib, Assistant Attorney General give a brief overview of this matter and also noted for the record that Mr. Duff was present at the meeting. 

                         After Ms. Scheib’s and Mr. Duff’s comments and questions from Board members, it was moved by Mr. Robinson and seconded by Judge Stacey that the Board enter a final decision and order in the matter of denial of Hiram Duff’s application for an occupational license, Case No. OLH-2004-08, accepting, adopting and incorporating the hearing officer’s Proposal for Decision in the matter in its entirety and denying the occupational license for which Mr. Duff made application.  A voice vote was taken.

                         Motion carried.

                         The next agenda item considered was the time change for the current year’s scheduled public board meetings.

                         It was moved by Ms. Rom and seconded by Judge Stacey that the previously published board meeting calendar be amended to reflect the June, August and September board meetings beginning at 10:30 a.m. with the staff briefing to be immediately followed by the official meeting.  A voice vote was taken.

                         Motion carried.

                         There being no other business to consider, it was moved by Judge Stacey and seconded by Ms. Rom 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.

Chairman Kassab noted for the record that Ms. Norma Astorian was present and invited her to address the Board.   After Ms. Astorian’s comments regarding the Disassociated Persons List, Chairman Kassab adjourned the meeting, at 11:20 a.m.

                               ______

                                 Patricia S. James

                                 Board Secretary