STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, September 13, 2005

10:30 A.M.

MINUTES

On Tuesday, September 13, 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

                                                D/Lt. John Lessnau

                                                Ben McMakin

                                                Tom Barker

                                                John Page

                                                Jack Cahill

Business:          Board Chairman Damian Kassab called the regular public meeting to order at 10:34 a.m.   Chairman Kassab invited Dan Gustafson to give an overview of the meeting’s agenda.

                        Mr. Gustafson advised the Board that there would be a presentation from Greektown Casino and MotorCity Casino.  Mr. Gustafson further advised that there were several requests for withdrawal of supplier license applications, three transfers of interest requests, a denial of application for an occupational license and the Board’s public meeting schedule on the agenda for the Board’s consideration.

                        Chairman Kassab next changed the order of the agenda and noted for the record that all Board members were present.

Chairman Kassab stated the first order of business was to approve the minutes from the August 9, 2005 meeting.  He requested a motion to approve the minutes from the August 9, 2005 meeting.

                        It was moved and seconded that the minutes of the August 9, 2005 meeting be approved.  Motion carried.

                        Mr. Gustafson next presented the Executive Director’s report.  In regards to staffing, Mr. Gustafson reported that the Board still has eight vacancies to fill.  Mr. Gustafson further advised that interviews have been conducted and resumes solicited to fill most of the vacancies.

                        In regards to the Board’s budget, Mr. Gustafson reported that for the fiscal year 2005, from October 1, 2004 through August 31, 2005, the Board has incurred expenditures of just over 13 million leaving the unexpended balance of 5.3 million in appropriated funding for FY 2005, which includes funds for anticipated reimbursement for expenditures by the Attorney General’s Office and Michigan State Police. 

                        Mr. Gustafson next reported that for August 2005, the aggregate revenue and gaming taxes for the three Detroit casinos were up 5.21 percent compared to the same month last year.  The gaming taxes for August 2005 for all three Detroit casinos were 12.521 million dollars compared to 7.961 million dollars for the same month last year.

                        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.

                        Next, Mr. Gustafson updated the Board on MSP’s Board-related activities.  Mr. Gustafson advised the Board that D/Lt. Robert Honey was promoted to a position in the COMET, and D/Sgt. Rick Michaels and Brad Cox have been called to service in the Michigan National Guard to do hurricane relief in Mississippi and Louisiana.  Mr. Gustafson further advised the Board that there were currently 9 vacant positions within MSP.  Mr. Gustafson also reported that MSP investigated 63 criminal complaints and made 19 arrests for the month of August 2005.

                        Upon conclusion of Mr. Gustafson’s report, Chairman Kassab requested a motion to accept the recommendations of the Executive Director and the Licensing Division’s staff regarding the 89 Level 1 and 2 occupational license applications. 

                        It was moved by Ms. Rom 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 next agenda item was a presentation and request for approval of plans for permanent construction of MotorCity Casino.           

                        Mr. Greg Solomon, Chief Executive Officer of Detroit Entertainment, L.L.C., introduced himself and proceeded to give a brief presentation of the construction plans for MotorCity Casino’s permanent casino.

                        After comments from Deputy Director Page and questions from Board members were answered, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter an order approving construction plans for the permanent casino for Detroit Entertainment, L.L.C., doing business as MotorCity Casino, based upon the Board staff’s recommendation.  A roll call vote was taken.

                                    Chairman Kassab:              Aye

                                    Judge Friedman:                Aye

                                    Mr. Robinson:                   Aye

                                    Ms. Rom:                        Aye

                                    Judge Stacey:                 Aye

                        Motion carried.

                        The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendations regarding the requests to withdraw the supplier license applications of Employers Temporary Service, Inc., d/b/a ETS Staffing, Russo Shebil Enterprises, d/b/a/ Lochmoor Chrysler Plymouth Jeep and Lorio Ross Sterling Entertainment.

                        There being no questions from Board members, it was moved by Judge Stacey and seconded by Mr. Robinson that the Board enter orders granting the requests of Employers Temporary Service, Inc., Russo Shebil Enterprises, Inc., and Lorio Ross Sterling Entertainment for withdrawal of their supplier license applications.  A voice vote was taken.

                        Motion carried.

                        The next agenda item considered was the Executive Director’s Report and the Licensing Division’s staff recommendations regarding the pending supplier license applications of General Linen Supply Company and Krystal Marketing, Inc.

                        Chairman Kassab noted for the record that there were no representatives for either applicant present at the meeting.

                        Again, there being no questions from Board members, it was moved by Mr. Robinson and seconded by Judge Stacey that the Board enter orders finding and concluding that General Linen Supply Company and Krystal Marketing, Inc. and their qualifiers are eligible and suitable for licensure and accordingly grant the supplier license application requests.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending application for approval of transfer of interest in Greektown Casino from Christopher Jackson and Arthur B. Blackwell, II, to Barden Nevada Gaming, L.L.C., d/b/a Fitzgerald’s Las Vegas.

                        Chairman Kassab noted for the record that Mr. Ken Kramer, a representative of Barden Nevada Gaming, L.L.C. and Len Wolfe with Dykema Gossett, were present at the meeting.

                        After questions from Board members were answered, it was moved by Ms. Rom and seconded by Judge Stacey that the Board enter an order approving the proposed transfer of interest in Greektown Casino, L.L.C. from Christopher Jackson and Arthur B. Blackwell, II, to Barden Nevada Gaming, L.L.C., under the licensing standards and requirements of the Act and Rules.  A roll call vote was taken.

                                    Chairman Kassab:            Aye

                                    Judge Friedman:              Aye

                                    Mr. Robinson:                 Aye

                                    Ms. Rom:                        Aye

                                    Judge Stacey:                 Aye

                        Motion carried.

                        The next item considered was the Executive Director’s Report and the Licensing Division’s staff recommendations regarding the pending applications for approval of transfer of interest in Happ Controls, Inc., from Patrick Suverein to Frank Happ, Advanced Electronic Systems, Inc., from James M. Brendel to Happ Controls, Inc. and Happ Controls, Inc., from Happ Controls, L.L.C. to James Brendel.

                        Chairman Kassab noted for the record that each transfer of interest application would be voted on separately.   Chairman Kassab also requested that Deputy Director McMakin give a brief overview of all three applications for transfer of interest.

                        After Mr. McMakin’s overview, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter an order approving the proposed transfer of interest in Happ Controls, Inc. from Patrick Suverein to Frank Happ, under the licensing standards and requirements of the Act and Rules.  A voice vote was taken.

                        Motion carried.

                        Next it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter an order approving the proposed transfer of interest in Advanced Electronic Systems, Inc., from James M. Brendel to Happ Controls, Inc., under the licensing standards and requirements of the Act and Rules.  A voice vote was taken.

                        Motion carried.

                        Next it was moved by Judge Stacey and seconded by Judge Friedman, that the Board enter an order approving the proposed transfer of interest in Happ Controls, Inc., from Happ Controls, L.L.C. to James Brendel, under the licensing standards and requirements of the Act and Rules.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the Proposal for Decision in the matter of the denial of Phyllis D. Daniels’ application for an occupational license.

                        Chairman Kassab noted for the record the presence of the applicant and Mr. Michael Lockman, Assistant Attorney General.

                        After comments from Mr. Lockman, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter an order accepting, adopting and incorporating the hearing officer’s Proposal for Decision in the matter in its entirety and denying Phyllis D. Daniels’ application for an occupational license.  A roll call vote was taken.

                                    Chairman Kassab:            Aye

                                    Judge Friedman:               Aye

                                    Mr. Robinson:                   Aye

                                    Ms. Rom:                        Aye

                                    Judge Stacey:                 Aye

                        Motion carried.

                        Next Chairman Kassab invited John Pirich, representative for Greektown Casino to give a status report on Greektown Casino’s financing and construction plans for a permanent casino.

                        After a brief presentation and comments from various representatives for Greektown Casino, Deputy Director McMakin, Peter Weipert from Grant Thornton and Board members, Chairman Kassab presented the next agenda item.

                        After a brief break to collect calendars and a subsequent discussion on proposed meeting dates, it was moved by Judge Stacey and seconded by Judge Friedman that the Board adopt and post a proposed schedule of its regular public meetings for the new fiscal year beginning October 1, 2005, in accordance with the Open Meetings Act.  A voice vote was taken.

                        Motion carried.

                        There being no other business to consider, it was moved by Ms. Rom and seconded by Mr. Robinson 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 roll call vote was taken.

                                    Chairman Kassab:            Aye

                                    Judge Friedman:               Aye

                                    Mr. Robinson:                  Aye

                                    Ms. Rom:                        Aye

                                    Judge Stacey:                 Aye

                        Motion carried.

                        There being no comments from the public, Chairman Kassab adjourned the meeting, at 1:06 p.m.

                                Patricia S. James

                                Board Secretary