STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING
Cadillac Place
3062 W. Grand Blvd., Suite L-700
Detroit, Michigan

Friday, September 21, 2007
10:00 A.M.

MINUTES

On Friday, September 21, 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, MI.

Present:           In attendance were the following Board members:

                                                Mr. Damian Kassab, Chairman
                                                Hon. Benjamin Friedman
                                                Mr. Donald Robinson
                                                Ms. Barbara Rom

                        Also attending were:

                                                Richard Kalm
                                                Tom Barker
                                                John Page
                                                D/F/Lt. Vicki Johnson
                                                Jack Cahill
                                                Laurie Lander

Business:

Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 10:03 a.m.  Chairman Kassab noted for the record that all Board members were present.  Chairman Kassab asked Executive Director Rick Kalm if there was any preliminary business to discuss.

Mr. Kalm requested that the Board table Agenda Items IVB, IVC and IVD, license renewals for MGM Grand Detroit, Detroit Entertainment and Greektown Casino, respectively, until the October 2007 Board meeting.

Chairman Kassab agreed to Mr. Kalm's request and then stated that the first order of business was to approve the minutes from the August 14, 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 August 14, 2007 meeting be approved.

Motion carried.

Mr. Kalm next presented the Executive Director's report.  Mr. Kalm advised the Board that Pam Duke, Licensing Regulation Officer and Patty James, Board Secretary had retired.  He further advised that the interview and selection process was ongoing for the remaining 10 vacant positions.

In regards to the Board's budget, Mr. Kalm reported that for fiscal year 2007, from October 1, 2006 through August 31, 2007, the Board has incurred expenditures of $14,859,629, leaving the unexpended balance of $4,358,071 in appropriated funding for FY 2007, which includes funds for anticipated expenditures by the Attorney General's Office and the Michigan State Police.

Mr. Kalm next reported that the casinos continue to operate 24/7 and for August 2007, the aggregate revenue in taxes for all three Detroit casinos was up by 2.73 percent and the gaming taxes were 13.508 million compared to 13.149 million for the same period last year.

In regards to employee licensing, Mr. Kalm advised the Board that the required background investigations for 257 pending Level 1 and 2 licenses had been completed and would be considered for approval by the Board at today's meeting.  He further noted that pursuant to Board Resolution No. 2006-03, 148 level 1 and 2 occupational license renewal requests were approved on behalf of the Board.

Next Mr. Kalm reported on the MSP Board related activity for the month of August.  He stated that there had been no staffing changes and the MSP Gaming Section investigated 70 criminal complaints and made 29 arrests.

Upon conclusion of Mr. Kalm's report, Chairman Kassab stated the first item for consideration was the recommendations of the Executive Director and the Licensing Division's staff regarding the 257 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 257 Level 1 and 2 occupational license applications.  A voice vote was taken.

Motion carried.

Next it was moved by Judge Friedman and seconded by Mr. Robinson to table the casino license renewals, Agenda Items IVB, IVC and IVD, until the October 2007 Board meeting.  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 pending application for transfer of ownership interest in Giesecke & Devrient America, Inc.

There being no questions from Board members, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter an order approving the proposed application for transfer of ownership interest in Giesecke & Devrient America, Inc.  A voice vote was taken.

Motion carried.

Next the Board considered the Executive Director's Reports and Licensing Division's staff recommendations regarding the pending supplier license applications of Bayview Electric Company, L.L.C., Detroit Door & Hardware Company, Fountain Guys, L.L.C., Gardner Signs, Inc., Hernandez Blueprinting, L.L.C., Mueller Custom Cabinetry, Inc., W.J. O'Neil Company and Williams Electrical and Telecommunications Company, Inc.

There being no discussion regarding the applications, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter orders finding and concluding that Bayview Electric Company, L.L.C., Detroit Door & Hardware Company, Fountain Guys, L.L.C., Gardner Signs, Inc., Hernandez Blueprinting, L.L.C., Mueller Custom Cabinetry, Inc., W.J. O'Neil Company and Williams Electrical and Telecommunications Company, Inc. and their qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Administrative Rules.  A voice vote was taken.

Motion carried.

The next item considered was the Executive Director's Report and Licensing Division staff's recommendation regarding the request to withdraw the supplier application of Jorgensen Ford Sales, Inc.

There being no questions from Board members, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter an order granting the request of Jorgensen Ford Sales, Inc. for withdrawal of it's supplier license application.  A voice vote was taken.

Motion carried.

The Board next considered the Executive Director's Reports and the Licensing Division staff's recommendations regarding the eligibility and suitability of required key persons/qualifiers of 1) Greektown Casino, L.L.C., D.J. William Hoffman, Shirley P. Petoskey, Keith G. Massaway, Gregory J. Collins and Julius J. Eggert, 2) Greektown Casino, L.L.C., Clifford Joseph Vallier, 3) Greektown Casino, L.L.C., Realty Equity Company, Inc., Contract Builders Corporation and Trappers GC Partners, L.L.C. and 4) Detroit Entertainment, L.L.C., Christopher P. Ilitch.

The Board members had no questions, so a motion was made by Mr. Robinson and seconded by Ms. Rom that the Board enter orders finding and concluding that D.J. William Hoffman, Shirley P. Petoskey, Keith G. Massaway, Gregory J. Collins and Julius J. Eggert are eligible and suitable as required qualifiers of Greektown Casino, L.L.C., Clifford Joseph Vallier is eligible and suitable as a required qualifier of Greektown Casino, L.L.C., Realty Equity Company, Inc., Contract Builders Corporation and Trappers GC Partner, L.L.C. are eligible and suitable as required qualifiers of Greektown Casino, L.L.C. and Christopher P. Ilitch is eligible and suitable as a required qualifier of Detroit Entertainment, L.L.C. under the licensing standards and the requirements of the Act and Rules of the Board.  A voice vote was taken.

Motion carried.

The next item considered by the Board was a request from Greektown Casino, L.L.C. to change an employment position title.

There being no questions from Board members, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board enter an order approving the request of Greektown Casino, L.L.C. to change an employment position title, thus amending the final decision and order approving and acknowledging the violation and including certain amendments to the debt transaction documents 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

Motion carried.

Next the Board considered the Acknowledgment of Violation of supplier licensee Atronic Americas, Inc.

Chairman Kassab invited Deputy Director John Page to give a brief summary of the violation.  Chairman Kassab also noted for the record the presence of Todd Gerber, Regulatory Compliance Manager for Atronic Americas, Inc.

After a lengthy discussion regarding Atronic Americas, Inc.'s numerous violations, it was moved by Ms. Rom and seconded by Judge Friedman that the Acknowledgment of Violation be amended to $10,000 payable now with $20,000 held in abeyance.  A voice vote was taken.

Motion carried.

The Board next considered the Proposal for Decision in the matter of the disciplinary action of occupational licensee Michael Eugene Cole.

Chairman Kassab invited Assistant Attorney General Bethany Scheib to give a brief history of the case.  Chairman Kassab further noted for the record that neither Mr. Cole nor his representative was present.

Upon conclusion of Ms. Scheib's comments, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter a final decision and order in the matter of the revocation of Michael Eugene Cole's occupational license, accepting, adopting and incorporating the Administrative Law Judge's Proposal for Decision in the matter in its entirety and revoking Michael Eugene Cole's occupational license.  A voice vote was taken.

Motion carried.

The Board next considered the public meeting schedule for FY 2007-08.  After some discussion regarding the November 2007 meeting, it was moved by Ms. Rom and seconded by Chairman Kassab that the Board adopt the proposed schedule of its regular public meetings for the fiscal year October 1, 2007, in accordance with the Open Meetings Act, and amend the schedule to reflect the change of the November 2007 meeting to November 19, 2007.  A roll call vote was taken.

                        Chairman Kassab:                        Aye
                        Judge Friedman:                          Aye
                        Mr. Robinson:                              Aye
                        Ms. Rom:                                    Aye

Motion carried.

The next item considered by the Board was the proposed order to suspend the three Detroit casino gaming licenses in the event that a government shutdown is triggered by a failure to implement a budget for the next fiscal year by October 1, 2007.

Chairman Kassab asked Executive Director Rick Kalm to give an overview of the situation.  Chairman Kassab also noted for the record the presence of Peter Ellsworth, counsel for MGM Grand Detroit Casino, Andrea Hansen on behalf of Greektown Casino and Cheryl Scott Dube, counsel for MotorCity Casino.

After an intense discussion between all parties, it was moved by Chairman Kassab, but not seconded to adopt the proposed order.  Therefore, it was moved by Chairman Kassab and seconded by Ms. Rom that the Board hold a special meeting on Thursday, September 27, 2007 at 2:00 p.m. to address the non-disciplinary suspension of MGM Grand Detroit, Detroit Entertainment and Greektown Casinos' gaming licenses, if the constitutional provision that requires a government shutdown is triggered if the state budget has not been implemented by October 1, 2007.   A roll call vote was taken.

                        Chairman Kassab:                        Aye
                        Judge Friedman:                           Aye
                        Mr. Robinson:                              Aye
                        Ms. Rom:                                    Aye

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 the individuals placed on the Board's Dissociated 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

There being no public comments, Chairman Kassab adjourned the meeting at 11:23 a.m.

________________________________________________
Laurie Lander, Board Secretary