STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, February 14, 2006

10:30 A.M.

MINUTES

On Tuesday, February 14, 2006, 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/F/Lt. Vickie Johnson

                                                Ben McMakin

                                                Tom Barker

                                                John Page

                                                Jack Cahill

Business:         Board Chairman Damian Kassab called the staff briefing of the 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 were numerous recommendations for occupational and supplier license applications on the agenda. 

                        Mr. Gustafson also reported that the casinos did not do as well during the Super Bowl weekend as expected.  The hypothesis for low slot revenue is that the regular slot players stayed away during this weekend, and the out of town guests were exploring the casinos for club and dining experiences rather than playing the slots.  However, the table games had record profits, which helped to offset the decline in the slot revenue.

                        Upon conclusion of Mr. Gustafson’s overview, Chairman Kassab called the regular public meeting to order 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 December 13, 2005 meeting.  He requested a motion to approve the minutes from the December 13, 2005 meeting.

                        It was moved and seconded that the minutes of the December 13, 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 has hired Jason Maue and Gregory Taylor as Regulation Officers in the Enforcement Division.   Mr. Gustafson further reported that Barry Beck and Gary Elliott have retired from the Board’s Licensing Division.  He also reported that there is an ongoing effort to fill the eight remaining authorized positions.

                        In regards to the Board’s budget, Mr. Gustafson reported that for fiscal year 2006, from October 1, 2005 through January 31, 2006, the Board has incurred expenditures of $4.6 million, leaving the unexpended balance of $14.7 million in appropriated funding for FY 2006.  He also advised the Board that the appropriated funding included reimbursement to the Attorney General and State Police for their services to the Board.

                        Mr. Gustafson next reported that the casinos continue to operation 24/7 and for January 2006, the aggregate revenue in taxes for all three Detroit casinos was up 3.55 percent compared to the same month last year.  The gaming taxes for the three Detroit casinos for January 2006 were $12.626 million.

                        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.  He reported that during the month of December and January, the Gaming Section investigated 118 criminal complaints and made 53 arrests.    

                        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 145 Level 1 and 2 occupational license applications. 

                        It was moved by Ms. Rom and seconded by Judge Friedman 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 Executive Director’s Report and the Licensing Division’s staff recommendation regarding the request to withdraw the supplier license application of Schindler Elevator Corporation.

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

                        Therefore, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter an order granting the request of Schindler Elevator Corporation for withdrawal of its supplier license application.  A voice vote was taken.

                        Motion carried.

                        The next item considered by the Board was the staff’s recommendation regarding the request for leave from the Board to reapply for a non-gaming supplier license for Russo Group Enterprises, Inc., d/b/a Lochmoor Chrysler Jeep.

                        Chairman Kassab noted for the record the presence of Attorney David Waddell, and Guss Russo, President of Russo Group Enterprises, Inc.

                        After a few brief comments from Mr. Russo, it was moved by Judge Stacey and seconded by Ms. Rom that the Board enter an order granting the request for leave from the Board to reapply for a non-gaming supplier license for Russo Group Enterprises, Inc., d/b/a Lochmoor Chrysler Jeep, Inc., based upon the Board staff’s report and recommendation.  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 Kone, Inc., Detroit Office Interiors, 3LK Construction, Baratta Brothers, Inc., Reel Games, Inc., TRE Builders, L.L.C., and Site Development, Inc. 

                        Judge Stacey recused himself from the vote, due to a prior association with Baratta Brothers, Inc. 

                        After questions from Ms. Rom were answered, it was decided that two votes would be taken, thereby allowing Judge Stacey to vote on all application requests except for Baratta Brothers, Inc.

                        Therefore, it was moved by Mr. Robinson and seconded by Judge Friedman that the Board enter orders finding and concluding that Kone, Inc., Detroit Office Interiors, L.L.C., 3LK Construction, L.L.C., Reel Games, Inc., TRE Builders, L.L.C. and Site Development Inc., and their qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board.  A voice vote was taken.

                        Motion Carried.

                        Next, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board enter an order finding and concluding that Baratta Brothers, Inc., d/b/a Fairway Packing Company, Inc., and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board.   A roll call vote was taken:

                                    Chairman Kassab:      Aye

                                    Judge Friedman:         Aye

                                    Mr. Robinson:             Aye

                                    Ms. Rom:                   Aye

                                    Judge Stacey:            Recused

                        Motion carried.

                        The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendations regarding the pending applications for approval of transfer of interest in Motor City Electric Company, Gasser Chair Company, Inc., and Western Waterproofing Company. 

                        Chairman Kassab noted for the record that there were no representatives for any of the applicants present at the meeting.

                        Therefore, it was moved by Ms. Rom and seconded by Judge Stacey that the Board enter orders approving the proposed transfer of interest in Motor City Electric Company from the Motor City Electric Company employee stock ownership plan and trust to a group of Motor City Electric key executives, and approving the proposed transfer of interest in Gasser Chair Company, Inc., from Gasser Chair Company treasury stock to Gary L. Gasser, Gregory L. Gasser and Mark E. Gasser, and approving the proposed transfer of interest in Western Waterproofing Company from Kim Mazur to the Robert T. Mazur revocable living trust under agreement dated September 30, 1998, based upon the Board’s staff recommendations under the licensing standards and requirements of the Act and Rules of the Board.  A voice vote was taken:

                        Motion carried.

                        The Board next considered the acceptance of the Acknowledgment of Violation of occupational licensee Denita Renee DeRamus.

                        Chairman Kassab invited John Page, Deputy Director of Enforcement, to give a brief summary of the case.

                        It was noted in Mr. Page’s summary that the next two agenda items were related to this same violation.

                        Upon conclusion of Mr. Page’s summary, comments from Assistant Attorney General Michael Lockman, and questions from Board members were answered, it was moved by Ms. Rom and seconded by Judge Stacey, that the Board accept the proposed Acknowledgment of Violation as agreed to by the MGCB staff and occupational licensee Denita Renee DeRamus and issue an order adopting, accepting and incorporating the Acknowledgment of Violation as the Board’s final decision.  A voice vote was taken.  Judge Friedman opposed.

                        Motion carried.

                        The Board next considered the acceptance of the Acknowledgment of Violation of occupational licensee Brandon Phillip Black.

                        Chairman Kassab noted for the record that the Acknowledgement of Violation was previously discussed during the consideration of Denita Renee DeRamus’ disciplinary action.

                        Therefore, it was moved by Judge Stacey and seconded by Ms. Rom, that the Board accept the proposed Acknowledgement of Violation as agreed to by the MGCB staff and occupational licensee Brandon Phillip Black and issue an order accepting, adopting and incorporating the Acknowledgment of Violation as the Board’s final decision.  A voice vote was taken.

                        Motion carried.

                        The next item to be considered was the Board’s acceptance of the Acknowledgment of Violation of casino licensee Greektown Casino. 

                        There being no comments or questions from Board members, it was moved by Mr. Robinson and seconded by Ms. Rom, that the Board accept the proposed Acknowledgment of Violation as agreed to by the MGCB staff and casino licensee Greektown Casino, L.L.C., and issue an order adopting, accepting and incorporating the Acknowledgment of Violation as the Board’s final decision.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the Proposal for Decision in the matter of the disciplinary action of Lanondria T. Henderson. 

                        Chairman Kassab invited Assistant Attorney General, Michael Lockman, to address the Board regarding this matter.

                        Upon conclusion of Mr. Lockman’s comments, it was moved by Judge Friedman and seconded by Judge Stacey, that the Board enter a final decision and order in the matter of the disciplinary action of Lanondria T. Henderson, accepting, adopting and incorporating the hearing officer’s Proposal for Decision in the matter in its entirety in revoking Lanondria T. Henderson’s occupational license.  A voice vote was taken.

                        Motion carried.

                        The next item for the Board’s consideration was the Proposal for Decision in the matter of the denial of Delores Jones’ occupational license renewal.

                        Chairman Kassab noted for the record the Board’s representative, Assistant Attorney General, Bethany Scheib and the applicant’s representative, Mr. Ronnie Cromer.

                        After comments from Ms. Scheib, Mr. Cromer and questions from Board members were answered, it was moved by Judge Stacey and seconded by Mr. Robinson that the Board enter a final decision and order in the matter of the denial of Delores Jones’ occupational license renewal, accepting, adopting and incorporating the hearing officer’s Proposal for Decision in the matter in its entirety in denying Delores Jones’ occupational license renewal.  A roll call vote was taken.

                                    Chairman Kassab:            Aye, with reluctance

                                    Judge Friedman:              Aye

                                    Mr. Robinson:                  Aye

                                    Ms. Rom:                        Aye

                                    Judge Stacey:                 Aye

                        Motion carried.

                        The next agenda item considered by the Board is the consideration of the Proposal for Decision in the matter of the denial of Eric Jasper Harris’ application for an occupational license.

                        For the record, Chairman Kassab acknowledged the presence of Melinda Leonard, Assistant Attorney General and invited Ms. Leonard to address the Board regarding this agenda item.

                        After Ms. Leonard addressed the Board, Chairman Kassab recognized for the record, the presence of Eric Jasper Harris.

                        After a lengthy discussion between MGCB’s legal counsel, the applicant and the Board regarding financial suitability, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter a final decision and order in the matter of the denial of Eric Jasper Harris’ occupational license, accepting, adopting and incorporating the hearing officer’s Proposal for Decision in the matter in its entirety and denying Eric Jasper Harris’ occupational license and waiving the reapplication period.  A roll call vote was taken.

                                    Chairman Kassab:         Aye

                                    Judge Friedman:            Aye

                                    Mr. Robinson:               Aye

                                    Ms. Rom:                     Aye

                                    Judge Stacey:              Nay

                        Motion carried.

                        Next Chairman Kassab called for a recess.

                        After Chairman Kassab reconvened the meeting, he requested a motion for the Board to go into closed session.

                        Therefore, it was moved by Judge Stacey and seconded by Judge Friedman 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.

                        For the public comment portion of the meeting, Chairman Kassab acknowledged the presence of Angela Mason and Thomas Drake. 

                        Ms. Mason and Mr. Drake were present to discuss the expiration and non-renewal by MGCB of Mr. Drake’s occupational license due to unpaid bills.   

                        After comments from Ms. Mason, Mr. Drake and MGCB Regulation Officer Henry Williams, Chairman Kassab advised Mr. Drake that the Board was unable to make any decisions during the public comment portion of the meeting.  Chairman Kassab further advised Mr. Drake to contact the Executive Director’s office for further directions on the appropriate procedure necessary to address his specific situation.

                        Chairman Kassab adjourned the meeting at 1:00 p.m.

                                Patricia S. James

                               Board Secretary