STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, March 13, 2007

10:00 A.M.

MINUTES

On Tuesday, March 13, 2007, 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

                                                Ms. Barbara Rom

                       Also attending were:

                                                Tom Barker

                                                Patty James

                                                D/F/Lt. Vicki Johnson

                                                John Page

                                                Don McGehee

Business:         Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 10:09 a.m.   Chairman Kassab invited Mr. Barker to give a brief overview of the meeting's agenda.

                        Upon conclusion of Mr. Barker's overview and after the Board agreed to keep Greektown Casino's request for funding allocation as the last item on the agenda, Chairman Kassab called the meeting to order.  Chairman Kassab noted for the record that all appointed Board members were present.  He also noted for the record that the Board still had a vacant Board seat.

                        Chairman Kassab stated the first order of business was to approve the minutes from the February 13, 2007 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 February 13, 2007 meeting be approved.  Motion carried.  

                        Mr. Barker next presented the Executive Director's report.  Mr. Barker advised the Board that Latasha Wilkins-O'Neal had been hired as a Departmental Records Technician in the Board's Administration Division, Records Section.  Mr. Barker further stated that efforts were ongoing to fill the Board's remaining vacant positions.

                        In regards to the Board's budget, Mr. Barker reported that for fiscal year 2007, from October 1, 2006 through February 28, 2007, the Board has incurred expenditures of 6.1 million, leaving the unexpended balance of 13.6 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 February 2007, the aggregate revenue in taxes for all three Detroit casinos was down by 3.79 percent compared to the same month last year.  The gaming taxes for the three Detroit casinos for February 2007 were 12.7 million compared to 13.2 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 February the MSP Gaming Section investigated 50 criminal complaints and made 13 arrests. 

                        Upon conclusion of Mr. Barker's report, Chairman Kassab requested a motion to accept the recommendations of the Executive Director and the Licensing Division's staff regarding the 68 Level 1 and 2 occupational license applications. 

                        It was moved by Judge Friedman and seconded by Ms. Rom 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 Reports and the Licensing Division's staff recommendations regarding the pending applications for transfers of ownership interest in Midwest Pro Painting, Inc., Women's Economic Empowerment Group, Inc. and Spielo Manufacturing ULC.

                        There being no questions from Board members, it was moved by Mr. Robinson and seconded by Judge Friedman that the Board enter orders approving the proposed applications for transfers of ownership interest in Midwest Pro Painting, Inc., Women's Economic Empowerment Group, Inc. and Spielo Manufacturing ULC.   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 Colombo Sales & Engineering, Inc., Cech Corporation, Cannon Electric Company, Continental Interiors, Inc., and Colasanti Specialty Services.

                        After questions from Ms. Rom regarding Cannon Electric Company were answered, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter orders finding and concluding that Colombo Sales & Engineering, Inc., Cech Corporation, Continental Interiors, Inc., and Colasanti Specialty Services, and their qualifiers, are eligible and suitable for licensure.  A voice vote was taken.

                        Motion carried.

                        Further, it was moved by Ms. Rom and seconded by Judge Friedman that the pending supplier license application of Cannon Electric Company be tabled until the next scheduled regular Board meeting.  A voice vote was taken.

                        Motion carried.

                        The next item considered by the Board was the Executive Director's Report and the Licensing Division's staff recommendation regarding the pending supplier license renewal application of Women's Economic Empowerment Group, Inc.

                        There being no questions from Board members, it was moved by Ms. Rom and seconded by Mr. Robinson that the Board enter an order granting the request of Women's Economic Empowerment Group, Inc. for the renewal of their annual supplier license.  A voice vote was taken.

                        Motion carried.

                        Next the Board considered the Executive Director's Report and the Board staff's recommendation regarding the request to withdraw the supplier license application of R&R Partners, Inc.

                        Again there being no questions from Board members, it was moved by Mr. Robinson and seconded by Judge Friedman that the Board enter an order granting the request of R&R Partners, Inc. for withdrawal of its supplier license application.  A voice vote was taken.

                        Motion carried.

                        Chairman Kassab introduced the next agenda item, which was the Board's acceptance of the Acknowledgement of Violation of supplier licensee Bally Gaming, Inc.

                        Chairman Kassab invited Mr. Page to give a brief summary of the case.  Chairman Kassab also acknowledged the presence of Peter Ellsworth, counsel for Bally Gaming, Inc.

                        Upon conclusion of Mr. Page's summary and after questions from Board members were answered, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board table this matter for further investigation and a final disposition.  A voice vote was taken.

                        Motion carried.

                        Next Mr. Barker advised that the Board received a letter from the Michigan Future Political Committee to withdraw its request for a declaratory ruling related to the ability to make political contributions to political committees. 

                        After a brief discussion between Board members and staff, it was noted for the record that the Board acknowledged receipt of the Michigan Future Political Committee's letter to withdraw its request for a declaratory ruling.

                        The next agenda item the Board considered was a request by Greektown Casino for an approval of the allocations of funds under the Greenshoe Facility for Greektown Holdings and Greektown Casino.

                        Chairman Kassab invited Deputy Director John Page to give a brief overview of the request.   He also noted for the record the presence of Michael DuBay, counsel for Greektown Casino, Cliff Vallier, Chief Financial Officer and Assistant General Manager for Greektown Casino and Charlie Jaskolski, representative of Wolinski & Company.

                        After questions from Board members were answered, it was moved by Ms. Rom and seconded by Mr. Robinson that the Board enter an order approving allocation of $200 million Greenshoe Facility funds for Greektown Casino as follows:  The Board grants the request for approval to allocate $125 million of the Greenshoe Facility funds to the Secured Credit Facility and $75 million of the Greenshoe Facility funds to the sale of additional senior notes.  The initial $100 million may be borrowed by implementing, 1) a $25 million increase in the revolving credit facility, 2) a $37.5 million term loan, and 3) a $37.5 million delayed draw term loan.  The Board's approval of the allocation of the Greenshoe Facility funds is subject to the conditions stated in the November 2005 order.  All provisions and requirements of the Board's June 13, 2006 final decision and order approving acknowledgement of violation and approving certain amendments to the debt transaction documents remain effective.  A voice vote was taken.

                        Motion carried.

                        Next Chairman Kassab requested a motion to go into closed session. 

                        Therefore, it was moved by Ms. Rom 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 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

                        Motion carried.

                        There being no public comments, Chairman Kassab adjourned the meeting at 11:04 a.m.

                                Patricia S. James

                                Board Secretary