STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD

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

Monday, October 22, 2007
10:00 A.M.

MINUTES
On Monday, October 22, 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
                                                Insp. Ellis Stafford
                                                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.

There being no preliminary business to discuss, Chairman Kassab stated that the first order of business was to approve the minutes from the September 21, 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 September 21, 2007 meeting be approved.

Motion carried.

Next Mr. Kalm presented the Executive Director's report.  Mr. Kalm advised the Board that Matt Clark, a financial analyst with the Licensing Division, has left the Board.  He further advised that the interview and selection process was ongoing for the remaining 11 vacant positions.

In regards to the Board's budget, Mr. Kalm reported that for fiscal year 2007, from October 1, 2006 through September 30, 2007, the Board has incurred total expenditures of $16,940,672 leaving the unexpended balance of $2,277,028 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 September 2007, the aggregate revenue in taxes for all three Detroit casinos was down by 7.62 percent and the gaming taxes were 12.278 million compared to 13.29 million for the same period last year.

Mr. Kalm suggested that gaming revenue was down due to the closure of MGM for 2 days in preparation of the move to it's permanent facilities on October 2, 2007 and Greektown Casino is experiencing restricted parking, transporting and transportation due to the construction of it's permanent facility.

In regards to employee licensing, Mr. Kalm advised the Board that the required background investigations for 199 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, 143 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 September.  He stated that there had been no staffing changes and the MSP Gaming Section investigated 73 criminal complaints and made 41 arrests.

Upon conclusion of Mr. Kalm's report, Chairman Kassab stated the first item for consideration was the Executive Director's Report and the Licensing Division's staff background investigative report on the eligibility and suitability of Ted Gatzaros, who is seeking a one percent ownership interest in Greektown Casino, L.L.C.

Mr. Kassab invited Deputy Director John Page to give a brief summary of the reports.  Mr. Kassab also noted for the record the presence of Robert Young, counsel for Mr. Gatzaros.

Upon conclusion of Mr. Page's overview, comments from staff and Mr. Young, and questions from Board members were answered, it was moved by Mr. Robinson and seconded by Judge Friedman that the Board enter an order finding and concluding that Ted Gatzaros is eligible and suitable as a required qualifier of casino licensee Greektown Casino, L.L.C. 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 Licensing Division's staff recommendation regarding the transfer of one percent interest in Greektown Casino, L.L.C. from Kewadin Greektown Casino to Ted Gatzaros.

There being no comments or questions from Board members, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board enter an order approving the proposed transfer of one percent ownership interest in Greektown Casino, L.L.C. from the Kewadin Greektown Casino, L.L.C. to Ted Gatzaros 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 recommendations of the Executive Director and the Licensing Division's staff regarding the 199 Level 1 and 2 occupational license applications.

It was moved by Ms. Rom and seconded by Mr. Robinson to accept the recommendations of the Executive Director and the Licensing Division's staff for the 199 Level 1 and 2 occupational license applications.  A voice vote was taken.

Motion carried.

The next agenda items considered by the Board was the pending license renewals of MGM Grand Detroit, L.L.C. and Detroit Entertainment, L.L.C.  It was noted for the record that the pending license renewal for Greektown Casino, L.L.C. would be considered at the Board's next regular public meeting.

There being no questions from Board members, it was moved by Judge Friedman and seconded by Ms. Rom that the Board issue an order and notice of renewal of the casino license to MGM Grand Detroit, L.L.C., renewing its annual casino license for a new one-year period from October 22, 2007 to October 21, 2008.  A voice vote was taken.

Motion carried.

Next, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board issue an order and notice of renewal of the casino license to Detroit Entertainment, L.L.C., renewing its annual casino license for a new one-year period from October 22, 2007 through October 21, 2008.  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 MGM Grand Detroit, L.L.C. from MGM Mirage to Infinity World Investments.

There being no questions from Board members, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter an order approving the proposed application for transfer of ownership interest in MGM Grand Detroit, L.L.C. from MGM Mirage to Infinity World Investments.

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 Executive Director's Reports and Licensing Division's staff recommendations regarding the pending supplier license applications of MBM Fabricators Company, Inc., Pontiac Drywall Systems, Inc., Rauhorn Electric, Inc., Rayhaven Group, Inc., Ross Structural Steel, Inc. and Tepel Brothers Printing, Inc.

Ms. Rom recused herself from the vote relating to MBM Fabricators Company, Inc.  After a brief discussion with counsel, it was decided to have a separate vote on MBM Fabricators license application.

Therefore, it was moved by Chairman Kassab and seconded by Judge Friedman that the Board enter an order finding and concluding that MBM Fabricators 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 voice vote, excluding Ms. Rom, was taken.

Motion carried.

Next it was moved by Ms. Rom and seconded by Mr. Robinson that the Board enter orders finding and concluding that Pontiac Drywall Systems, Inc., Rauhorn Electric, Inc., Rayhaven Group, Inc., Ross Structural Steel, Inc. and Tepel Brothers Printing, 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 the Board considered the Executive Director's Reports and Licensing Division's staff recommendations regarding the pending supplier license renewal applications of American Gaming and Electronics, Inc., Annunciation Parking, L.L.C., Del Bene Produce, Inc., Euclid Fish Company, Inc., Gold Star Equipment, Inc., The Right Productions, Inc., and Unique Linen Services, Inc.

Judge Friedman asked that he be recused from voting on the renewal application of Gold Star Equipment, Inc.   Again, it was decided to have separate motions.

Therefore, it was moved by Chairman Kassab and seconded by Ms. Rom that the Board enter an order granting the request of Gold Star Equipment, Inc., for the renewal of its annual supplier license for a new one-year period beginning October 22, 2007.   A voice vote, excluding Judge Friedman, was taken.

Motion carried.

Next, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter orders granting the requests of American Gaming and Electronics, Inc., Annunciation Parking, L.L.C., Del Bene Produce, Inc., Euclid Fish Company, Inc., The Right Productions, Inc. and Unique Linen Services, Inc. for the renewal of their annual supplier license for a new one-year period beginning October 22, 2007.    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 denial of Southeastern Tile, L.L.C.'s application for a supplier license.

Chairman Kassab asked Deputy Director John Page to give an overview of the application.  He also noted for the record Randall Harvey, representative for Southeastern Tile, L.L.C.

After Mr. Page's overview and comments from Board staff and Mr. Harvey, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter an order denying the supplier license application of Southeastern Tile, L.L.C.   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 Amended Acknowledgment of Violation of supplier licensee Atronic Americas, Inc.

Chairman Kassab invited Deputy Director John Page to give a brief summary of the Amended Acknowledgement of Violation.

Upon conclusion of Mr. Page's overview and assurance from Board members that the violation penalty was acceptable, it was moved by Ms. Rom and seconded by Judge Friedman that the Board accept the proposed Amended Acknowledgment of Violation as agreed to by the Michigan Gaming Control Board and Atronic Americas, 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.

The Board next considered the Proposal for Decision in the matter of the denial of Joy Construction Leasing, Inc.'s request for a vendor exemption.

Chairman Kassab invited Assistant Attorney General Melinda Leonard to give a brief history of the case.

Upon conclusion of Ms. Leonard's comments, it was moved by Mr. Robinson and seconded by Judge Friedman that the Board enter a final decision and order in the matter of the of denial of Joy Construction Leasing, Inc.'s request for a vendor exemption, accepting, adopting and incorporating the Administrative Law Judge's Proposal for Decision in its entirety.  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 11:09 a.m.

________________________________________________

Laurie Lander, Board Secretary