STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD
PUBLIC MEETING
Cadillac Place
3062 W. Grand Blvd., Suite L-700
Detroit, Michigan
Tuesday, December 12, 2006
10:00 A.M.
MINUTES
On Tuesday, December 12, 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
Ms. Barbara Rom
Judge Michael Stacey
Also attending were:
Tom Barker
Patty James
D/F/Lt. Vicki Johnson
Jack Cahill
Business: Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 10:08 a.m. Chairman Kassab noted that the Board would act on Items C and D, relating to the Greektown financial covenant issue and the declaratory ruling on political committees, after agenda Item I.
Chairman Kassab then asked Deputy Director Tom Barker to give a brief overview of the agenda.
Upon completion of Mr. Barker's overview, Chairman Kassab called the meeting to order, and noted for the record the absence of Mr. Robinson.
Chairman Kassab stated the first order of business was to approve the minutes from the November 14, 2006 regular public meeting. Chairman Kassab noted that all Board members had previously received the minutes, and asked if there were any questions or concerns.
It was moved and seconded that the minutes of the November 14, 2006 meeting be approved. Motion carried.
Mr. Barker next presented the Executive Director's report. Mr. Barker advised the Board that Deandra Abrou had been hired as a regulation officer in the Board's Enforcement Division. Mr. Barker further reported that there were currently 7 positions to fill.
In regards to the Board's budget, Mr. Barker reported that for fiscal year 2007, from October 1, 2006 through November, 2006, the Board has incurred expenditures of $2,225,881, leaving the unexpended balance of just under 17 million in appropriated funding for FY 2007, which includes funds for anticipated reimbursement for expenditures by the Attorney General's Office and Michigan State Police.
Mr. Barker next reported that the casinos continue to operate 24/7 and for November 2006, the aggregate revenue in taxes for all three Detroit casinos was up by 8.07 percent compared to the same month last year. The gaming taxes for the three Detroit casinos for November 2006 were 13.102 million compared to 12.124 million for the same period last year.
Next, Mr. Barker updated the Board on MSP's Board-related activities. He reported that during the month of November there were no staffing changes and the MSP Gaming Section investigated 19 criminal complaints and made 28 arrests.
Upon conclusion of Mr. Barker's report, Chairman Kassab noted the first order of business was the consideration of proposed Board Resolution No. 2006-04, acknowledging the contributions and accomplishments of Mr. Ben McMakin as Deputy Director of the Board's Licensing Division and commending him for distinguished and honorable service to the Board and to the people of the State of Michigan.
After presentation of the resolution to Mr. McMakin, it was moved by Judge Stacy and seconded by Ms. Rom that the Board adopt Board Resolution 2006-04. A voice vote was taken.
Motion carried.
Next Chairman Kassab requested a motion to accept the recommendations of the Executive Director and the Licensing Division's staff regarding the 19 Level 1 and 2 occupational license applications.
It was moved by Ms. Rom and seconded by Judge Friedman and 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 acceptance of the Acknowledgement of Violation of supplier licensee R&R Partners, Inc.
Chairman Kassab invited Mr. McMakin to give a brief overview of the case.
Upon conclusion of Mr. McMakin's comments and questions from Board members were answered, Chairman Kassab recognized for the record the presence of Dave Waddell, counsel for R&R Partners, Inc.
After comments from Mr. Waddell, it was moved by Judge Friedman and seconded by Judge Stacey that the Board accept the proposed Acknowledgment of Violation as agreed to by the MGCB staff and supplier licensee R&R Partners, Inc., 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 Executive Director's Reports and the Licensing Division's staff recommendations regarding the pending applications for transfers of ownership interest in Trend Millwork, Inc., Atlantic City Coin and Slot Service Company, Gasser Chair Company, 3 separate applications for Premier Service Group, and R&R Partners, Inc.
There being no questions from Board members, it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter orders approving the proposed applications for transfers of ownership interest in supplier licensees Trend Millwork, Inc., Atlantic City Coin and Slot Service Company, Gasser Chair Company, Premier Service Group, and R&R Partners, Inc. A voice vote was taken.
Motion carried.
The Board next considered the Executive Director's Reports and the Licensing Division's staff recommendations regarding the pending supplier license applications of Gasser Chair Company, Jessie W. Green, d/b/a/ Lucky Green's, MotorCity Electric Technologies, Henderson Electric Inc., and C. L. Rieckhoff Company, Inc.
After questions from Board members were answered, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter orders finding and concluding that Gasser Chair Company, Jessie W. Green, d/b/a/ Lucky Green's, MotorCity Electric Technologies, Henderson Electric Inc., and C. L. Rieckhoff Company, Inc., and their qualifiers, are eligible and suitable for licensure. A voice vote was taken.
Motion carried.
The next item considered by the Board was the Executive Director's Reports and the Licensing Division's staff recommendations regarding the pending supplier license renewal applications of MotorCity Electric Company and Michigan Industrial Group.
There being no questions from Board members, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter orders granting the requests of MotorCity Electric Company and Michigan Industrial Group for the renewal of their annual supplier licenses. A voice vote was taken.
Motion carried.
Next the Board considered the Executive Director's Reports and the Board staff's recommendations regarding the requests to withdraw the supplier license applications of C&R Maintenance, Inc., d/b/a Rizzo Services and C.S. Imprintables.
Again, there being no questions from Board members, it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter orders granting the requests of C&R Maintenance, Inc., d/b/a Rizzo Services and C.S. Imprintables, for withdrawal of their supplier license applications. A voice vote was taken.
Motion carried.
The Board next considered Greektown Casino's request to amend the November 15, 2005 Board order regarding financial covenants.
Upon Chairman Kassab's invitation, Mr. McMakin gave a brief overview of the request.
After Mr. McMakin's overview, Chairman Kassab noted for the record the presence of Mr. Eric Eggan, counsel for Greektown Casino, L.L.C.
Next, Chairman Kassab invited Mr. Eggan to address the Board in regards to Greektown Casino's request.
During Mr. Eggan's summary, Chairman Kassab also noted for the record the presence of Greg Collins, VP of Development and Management for Greektown Casino.
Upon conclusion of Mr. Eggan's and Mr. Collins' comments, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter an order denying Greektown Casino, L.L.C.'s request to amend the November 15, 2005 order approving debt transaction, supplier licensing exemption requests and eligibility, suitability, and qualifications of certain key persons of Greektown Casino, L.L.C. A voice vote was taken.
Motion carried.
The next item considered by the Board was the request from Michigan's Future Political Committee for a declaratory ruling related to the ability to make political contributions to political committees.
Chairman Kassab invited Mr. Barker to give a brief overview of the request. Mr. Barker deferred the invitation to Mr. Jack Cahill.
Upon conclusion of Mr. Cahill's summary and questions from Board members were answered, it was moved by Judge Stacey and seconded by Ms. Rom that the Board table this matter for 90 days for the purpose of the Board receiving additional information. A voice vote was taken.
Motion carried.
Next, Chairman Kassab requested a motion for the Board to go into closed session.
Prior to the motion, Chairman Kassab noted that Judge Stacey's Board appointment expires at the end of December 2006 and to date has not been informed by the Governor's office as to whether Judge Stacey would be reappointed. Chairman Kassab turned the floor over to Judge Stacey for comments.
Upon completion of Judge Stacey's comments, 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 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
Ms. Rom: Aye
Judge Stacey: Aye
Motion carried.
There being no comments from the public, Chairman Kassab adjourned the meeting at 11:49 a.m.
_______________________________________
Patricia S. James
Board Secretary
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