STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD

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

Tuesday, December 11, 2007

10:00 A.M.

MINUTES

On Tuesday, December 11, 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
                                                Judge 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 10:04 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 November 19, 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 November 19, 2007meeting be approved.

Motion carried.

Next Mr. Kalm presented the Executive Director's report.  Mr. Kalm advised the Board that in the month on November, Erik Pederson was hired as an auditor in the Gaming Lab Section.  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 2008, from October 1, 2007 through November 30, 2007, the Board has incurred total expenditures of $1,419,245 leaving the unexpended balance of $18,843,755 in appropriated funding for FY 2008, 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 November 2007, the aggregate revenue in taxes for all three Detroit casinos was up by 4.55 percent and the gaming taxes were 13.697 million compared to 13.102 million for the same period last year.

In regards to employee licensing, Mr. Kalm advised the Board that the required background investigations for 87 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, 164 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 November 2007.  He stated that there have been no staffing changes for MSP Gaming.  He further stated that during the month of November 2007 the MSP Gaming Section investigated 72 criminal complaints and made 17 arrests.

Upon conclusion of Mr. Kalm's report, the Board considered the recommendations of the Executive Director and the Licensing Division's staff regarding the 87 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 87 Level 1 and 2 occupational license applications.  A voice vote was taken.

Motion carried.

Next Chairman Kassab requested that Agenda Item B, Casino License Renewal of Greektown Casino be moved to the end of the business agenda.  All Board members agreed to the reordering of the agenda items.

Next the Board considered Agenda Item C, the Licensing Division Staff's recommendations regarding the transfers of interest in Cummins-Allison, Corp. among multiple shareholders, Gasser Chair Company, Inc. from George W. Gasser to Gasser Chair Company, Inc., Gemaco, Inc. from Thomas Baranowski to Gemaco, Inc. and Kipco Enterprises, Inc., 1) from Mario Grech (4.96%) to Kipco Enterprises, Inc. and 2) Robert Greene (31%), to Kipco Enterprises, Inc.

There being no questions from Board members, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board enter orders approving the proposed transfers of interest in Cummins-Allison, Corp., Gasser Chair Company, Inc., Gemaco, Inc. and 2 transfers of ownership interest in Kipco Enterprises, 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 American Mailers, Inc., Conventional Carpet, Inc., Dumas Concepts in Building, Inc., Equity Gaming, L.L.C., Madias Brothers, Inc., Mister C-Low, Inc., Perlmutter-Lubin Marketing Services, PMP Enterprises, 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 finding and concluding that American Mailers, Inc., Conventional Carpet, Inc., Dumas Concepts in Building, Inc., Equity Gaming, L.L.C., Madias Brothers, Inc., Mister C-Low, Inc., Perlmutter-Lubin Marketing Services, PMP Enterprises, Inc., and Spielo Manufacturing ULC, 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.

The next agenda item considered by the Board was the Executive Director's Reports and Licensing Division's staff recommendations regarding the pending supplier license renewal applications of Gemaco, Inc. and WMS Gaming, Inc.

Again, there being no questions from Board members, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter orders granting the requests of Gemaco, Inc. and WMS Gaming, Inc. for the renewal of their annual supplier license for a new one-year period beginning December 11, 2007.    A voice vote was taken.

Motion carried.

The next agenda item considered by the Board was the Executive Director's Reports and the Licensing Division's staff recommendations regarding the requests of Rainbow Industries, Inc. and RMK Worldwide, Inc. to withdraw their supplier license applications.

After Chairman Kassab noted for the record that there were no representatives for the applicants present at the meeting, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board enter orders granting the requests of Rainbow Industries, Inc. and RMK Worldwide, Inc. for withdrawal of their supplier license applications.  A voice vote was taken.

Motion carried.

Next the Board considered the request of MGM Grand Detroit, L.L.C. for a Tax Base Reduction Certification.

Chairman Kassab noted for the record the presence of Deputy Director John Page, Mr. Mike Neubecker, CFO and Mr. George Boyer, President for MGM Grand Detroit.  Chairman Kassab invited Mr. Page to give a brief overview of the request.

Upon conclusion of Mr. Page's overview, comments by Mr. Neubecker and Mr. Boyer and questions from Board members were answered, it was moved by Mr. Robinson and seconded by Judge Friedman that the Board enter an order granting the request of MGM Grand Detroit Casino, L.L.C. for a Tax Base Reduction Certification based upon the Board's report and recommendation.  A roll call vote was taken.

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

Motion carried.

The next agenda item considered by the Board was the Executive Director's Report and Licensing Division staff's recommendation for the Board to issue a Notice of Deficiency to Architectural Southwest Stone Company, Inc.

Chairman Kassab noted for the record the presence of MGCB representatives John Page and Rae Jim Burnett.  He also noted for the record the presence of Kelli K. Bourgoise, representative for Architectural Southwest Stone Company, Inc.  Chairman Kassab invited Mr. Burnett to give a brief overview of the case.

Upon conclusion of Mr. Burnett's overview, comments from Ms. Bourgoise and questions from Board members were answered, the Board elected to change the allowance of 15 days to correct deficiency to 30 days.

Therefore, it was moved by Ms. Rom and seconded by Mr. Robinson that the Board enter an order granting to issue a Notice of Deficiency to Architectural Southwest Stone Company, L.L.C.; to allow them 30 days to correct deficiency, and to notify Architectural Southwest Stone Company of a potential denial of its application if it fails to meet aforementioned criteria.  A voice vote was taken.

Motion carried.

The next agenda item considered was the Board Acceptance of the Acknowledgement of Violation of Casino Licensee Greektown Casino, L.L.C.

Chairman Kassab acknowledged for the record the presence of Mr. Craig Ghelfi, CEO and Mr. John Pirich, counsel for Greektown Casino and Deputy Director John Page.  Chairman Kassab requested that Mr. Page give a brief summary of the violation.

Upon conclusion of Mr. Page's summary, comments from Mr. Ghelfi and Mr. Pirich 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 Michigan Gaming Control Board staff and 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 roll call vote was taken.

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

Motion carried.

The Board next considered the casino license renewal for Greektown Casino, L.L.C.

Chairman Kassab invited Deputy Director Page to answer any questions that Board members may have.

After comments from Chairman Kassab and questions from Board members were answered, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board issue an order and notice of renewal of casino license to Greektown Casino, L.L.C., renewing its annual casino license for a new one-year period from December 11, 2007 through December 10, 2008.  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 Mr. Robinson, 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 11:21 a.m.

________________________________________________
Laurie Lander, Board Secretary