STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD
PUBLIC MEETING
Cadillac Place
3062 W. Grand Blvd., Suite L-700
Detroit, Michigan
Tuesday, June 13, 2006
10:30 A.M.
MINUTES
On Tuesday, June 13, 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
Mr. Donald Robinson
Ms. Barbara Rom
Judge Michael Stacey
Also attending were:
Dan Gustafson
Patty James
D/F/Lt. Vickie Johnson
Tom Barker
Jack Cahill
Business: Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 10:32 a.m. Chairman Kassab invited Dan Gustafson to give an overview of the meeting’s agenda.
Mr. Gustafson advised the Board of the meeting agenda items that would require the Board’s consideration, including a supplier license application for Metro Steel Fabricators, Inc. Chairman Kassab noted for the record that this supplier applicant was arranging financing through the Warren Bank, which he is chairman of. Therefore, Chairman Kassab advised the Board that he would recuse himself from this vote.
Chairman Kassab called the meeting to order and stated the first order of business was to approve the minutes from the May 9, 2006 meeting. He requested a motion to approve the minutes from the May 9, 2006 meeting.
It was moved and seconded that the minutes of the May 9, 2006 meeting be approved. Motion carried.
Mr. Gustafson next presented the Executive Director’s report. Mr. Gustafson advised the Board that no additional staff had been hired since the last meeting. However, there were two pending offers of employment to fill two financial analyst positions in the Licensing Division.
In regards to the Board’s budget, Mr. Gustafson reported that for fiscal year 2006, from October 1, 2005 through May 31, 2006, the Board has incurred expenditures of $8,556,000, leaving the unexpended balance of just over 10 million in appropriated funding for FY 2006.
Mr. Gustafson next reported that the casinos continue to operate 24/7 and for May 2006, the aggregate revenue in taxes for all three Detroit casinos was up 1.12 percent compared to the same month last year. The gaming taxes for the three Detroit casinos for May 2006 were 12.986 million compared to 12.84 million for the same period last year.
Next, Mr. Gustafson updated the Board on MSP’s Board-related activities. He reported that D/S Richard Michael transferred to the Joint Terrorism Task Force, which left two D/S positions and two D/T positions to be filled by MSP.
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 36 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.
Next, the Board considered the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the eligibility and suitability of required key persons/qualifiers of supplier licensee American Gaming and Electronics, Inc.
There being no questions from Board members, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter an order finding and concluding that James Frederick Brace and Meryl Henry Banta, are eligible and suitable as required qualifiers of supplier licensee American Gaming and Electronics, Inc., under the licensing standards and requirements of the Act and Rules of the Board. A voice vote was taken.
Motion carried.
Next the Board considered the Executive Director’s Reports and the Licensing Division’s staff recommendations regarding the pending supplier license applications of Metro Steel Fabricators, Guideline Mechanical, Inc., First Tech Direct, L.L.C., Samuel A. Chagois and Associates, Inc., and Skanska USA Design Build, Inc.
Chairman Kassab noted for the record that there were no representatives for any of the applicants present at the meeting. Chairman Kassab also requested that the Board consider Metro Steel Fabricators separately, and recused himself from the vote.
After questions from Ms. Rom were answered, it was moved by Mr. Robinson and seconded by Judge Stacey that the Board enter an order finding and concluding that Metro Steel Fabricators, Inc. and its qualifiers are eligible and suitable for licensure. A roll call vote was taken.
Chairman Kassab: Recused
Judge Friedman: Aye
Mr. Robinson: Aye
Ms. Rom: Aye
Judge Stacey: Aye
Motion carried.
Next Chairman Kassab requested a motion for the remaining supplier license application requests.
Again, after questions from Board members were answered, it was decided to consider motions on Guideline Mechanical, Inc. and First Tech Direct, L.L.C. first and motions for Samuel A. Chagois and Associates, Inc. and Skanska USA Design Build, Inc. separately.
Therefore it was moved by Judge Stacey and seconded by Mr. Robinson that the Board enter orders finding and concluding that Guideline Mechanical, Inc., and First Tech Direct, L.L.C., and their qualifiers are eligible and suitable for licensure. A roll call vote was taken.
Chairman Kassab: Aye
Judge Friedman: Aye
Mr. Robinson: Aye
Ms. Rom: Aye
Judge Stacey: Aye
Motion carried.
Next, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board enter an order finding and concluding that Samuel A. Chagois and Associates, Inc., and its qualifiers are eligible and suitable for licensure. A roll call vote was taken.
Chairman Kassab: Aye
Judge Friedman: Aye
Mr. Robinson: Aye
Ms. Rom: Aye
Judge Stacey: Recused
Motion carried.
Next, it was moved by Ms. Rom and seconded by Judge Stacey that the Board enter an order finding and concluding that Skanska USA Design, Inc., and its qualifiers are eligible and suitable for licensure. A voice vote was taken.
Motion carried.
The next item considered by the Board was the Board staff’s recommendation regarding Chezcore, Inc.’s request to withdraw its supplier license application.
There being no questions from Board members, it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter an order granting the request of Chezcore, Inc., for withdrawal of its supplier license application. A roll call vote was taken.
Chairman Kassab: Aye
Judge Friedman: Aye
Mr. Robinson: Aye
Ms. Rom: Aye
Judge Stacey: Aye
Motion carried.
Next, Rhonda Cohen, Chief Operating Officer of MotorCity Casino, introduced herself and proceeded with MotorCity Casino’s presentation on its efforts to foster economic development in the City of Detroit.
Upon completion of the presentation and after Board members’ questions were answered, Chairman Kassab invited Mr. Gustafson to give a brief overview of the request for a Declaratory Ruling regarding the First Independent Greektown Merchants program.
Upon completion of Mr. Gustafson’s overview, Mr. Michael Atkins, counsel for First Independence Bank and the Greektown Merchants Association also gave a brief summary of the program.
After a lengthy discussion between Board members, staff and Mr. Atkins, regarding possible solutions to provide a speedy resolution to this issue, the following motions were made.
It was moved by Judge Stacey and seconded by Ms. Rom that the Board enter an order approving and adopting the staff’s recommended Declaratory Ruling DR-2006-1. A roll call vote was taken.
Chairman Kassab: Aye
Judge Friedman: Nay
Mr. Robinson: Aye
Ms. Rom: Aye
Judge Stacey: Aye
Motion carried.
Further, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board and Board staff move forward and aggressively look at the Board’s rules related to the supplier licensing exemption process, especially field of commerce exemptions to include restaurants in the hospitality industry and find a mechanism whereby the Board could accomplish the goals that were discussed previously. A voice vote was taken, with Board members responding as follows:
Chairman Kassab: Aye
Judge Friedman: Aye
Mr. Robinson: Aye
Ms. Rom: Aye
Judge Stacey: Oppose
Motion carried.
Next it was moved by Judge Friedman and seconded by Mr. Robinson that the Board convene a special meeting within 30 days to try to effectuate a resolution to the problems discussed heretofore. A voice vote was taken, with Board members responding as follows:
Chairman Kassab: Aye
Judge Friedman: Aye
Mr. Robinson: Aye
Ms. Rom: Oppose
Judge Stacey: Oppose
Motion carried.
After a brief discussion regarding the last motion, it was moved by Judge Friedman and seconded by Ms. Rom that the motion to convene a special meeting within 30 days be withdrawn. A voice vote was taken.
Motion carried.
Next it was moved by Ms. Rom and seconded by Mr. Robinson that if the Board’s staff has a recommendation regarding the exemption process they would like to present to the Board prior to the next regularly scheduled meeting in August, and a quorum could be met, that a special meeting would be convened. A voice vote was taken.
Motion carried.
The next order of business was to consider the Executive Director’s Report and Licensing Division staff’s recommendation regarding the transfer of interest in supplier licensee Ebel Signorelli Welke, L.L.C.
There being no questions from Board members, it was moved by Judge Stacey and seconded by Mr. Robinson that the Board enter an order approving the proposed transfer of ownership interest in supplier licensee Ebel Signorelli Welke, L.L.C. A voice vote was taken.
Motion carried.
The Board next considered the acceptance of the Acknowledgment of Violation of occupational licensee Curtis Lucero.
Chairman Kassab invited Deputy Director John Page to give a brief overview of the case.
After Mr. Page’s summary, Chairman Kassab noted for the record the presence of Mr. Lucero.
After comments from Mr. Doug Minke, appearing on behalf of Mr. Lucero, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board accept the proposed Acknowledgement of Violation as agreed to by the Board’s staff and occupational licensee Curtis Lucero, 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.
Next the Board considered the acceptance of the Acknowledgment of Violation of casino licensee MGM Grand Detroit, L.L.C.
After a brief summary of the case from Deputy Director Ben McMakin, comments from Mr. Peter Ellsworth, representative for MGM Grand Detroit, L.L.C. and questions from Board members were answered, it was moved by Ms. Rom and seconded by Judge Friedman that the Board accept the proposed Acknowledgement of Violation as agreed to by the Board’s staff and casino licensee MGM Grand Detroit 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.
Next the Board considered the acceptance of Acknowledgement of Violation of casino licensee Greektown Casino.
After a brief summary of the violation from Mr. Gustafson, comments from Mr. Eric Eggan, representative for Greektown Casino and questions from Board members were answered, it was moved by Judge Stacey and seconded by Mr. Robinson that the Board accept the proposed Acknowledgment of Violation as agreed to by the Board’s staff and the casino licensee Greektown Casino, L.L.C., and issue an order adopting, accepting, and incorporating the Acknowledgement of Violation as the Board’s final decision. A voice vote was taken.
Motion carried.
Next, Chairman Kassab requested a motion for the Board to go into closed session.
Therefore, it was moved by Judge Stacey and seconded by Mr. 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 noted for the record that Mr. Steve Georgiou, owner of Olympia Restaurant and Mr. Vasso Augoustis, owner of Cyprus Taverna were present and desired to make comments regarding the loss of business for Greektown merchants.
After Mr. Georgiou’s and Mr. Augoustis’ comments, Chairman Kassab asked if there were any objections to starting all future public meetings at 9:00 a.m. There being no objections, the meeting was adjourned at 1:06 p.m.
Patricia S. James
Board Secretary
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