STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD

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

Tuesday, February 12, 2008
10:00 A.M.

MINUTES

On Tuesday, February 12, 2008, 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
                                                Mr. Donald Robinson
                                                Ms. Barbara Rom
                                                Mr. Michael Watza

                        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 10:04 a.m.  There being no preliminary business to discuss, Chairman Kassab introduced and welcomed new Board member Michael Watza and noted for the record that Judge Friedman was absent due to a prior commitment.  Chairman Kassab also announced the reappointments of Ms. Rom and Judge Friedman as Board members.

Chairman Kassab stated that the first order of business was to approve the minutes from the December 11, 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 December 11, 2007 meeting be approved.

Motion carried.

Next Mr. Kalm presented the Executive Director's report.  Mr. Kalm advised the Board that in the months of December and January, Mark O'Farrell, Ron Warmbier, Sara Botke and Carol Flores had resigned from the Board.  He also advised that the Board had hired Auditor Elisa Pehote, Regulation Officers Amy Brannon and Joy Segal and Deputy Director of Licensing Fred Cleland.   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 2008, from October 1, 2007 through January 31, 2008, the Board has incurred total expenditures of $4,972,745 leaving the unexpended balance of $15,290,255 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 January 2008, the aggregate revenue in taxes for all three Detroit casinos was up by 3.79 percent and the gaming taxes were 11.873 million compared to 13.236 million for the same period last year.  Mr. Kalm explained that due to the tax rollback for MGM, the taxes were lower compared to the same period last year even though the aggregate revenue was up by 3.79 percent.

In regards to employee licensing, Mr. Kalm advised the Board that the required background investigations for 132 pending Level 1 and 2 licenses had been completed and would be considered for approval by the Board at today's meeting.

Next Mr. Kalm reported on the MSP Board related activity for the months of December 2007 and January 2008.  He stated that Lt. John Lessnau retired from the MSP Gaming Section effective December 28, 2007.  He further stated that during the months of December 2007 and January 2008 the MSP Gaming Section investigated 110 criminal complaints and made 39 arrests.

Upon conclusion of Mr. Kalm's report, Chairman Kassab asked for a progress report on the completion of MotorCity's permanent casino and a status report on the power outage that occurred the previous week.

After all Board members' questions were answered, the Board considered the recommendations of the Executive Director and the Licensing Division's staff regarding the 132 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 132 Level 1 and 2 occupational license applications.  A voice vote was taken.

Motion carried.

Next the Board considered Agenda Item C, the Licensing Division Staff's recommendations regarding the transfers of interest in Casino Credit Services, L.L.C.  - 1) 1% from Kirk Sanford to M & C International, 2) 100% from M & C International to JL Services, L.L.C., Dixon, Inc., National Precast, Inc. and Precision Food Distribution, L.L.C.

There being no questions from Board members, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter orders approving the proposed transfers of interest in Casino Credit Services, L.L.C.  - 1) 1% from Kirk Sanford to M & C International, 2) 100% from M & C International to JL Services, L.L.C., Dixon, Inc., National Precast, Inc. and Precision Food Distribution, L.L.C.    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 Ann Arbor Ceiling & Partition Co., L.L.C., Empire Tile Company, Jim Waldron Pontiac-Buick-GMC Truck, Inc., Kipco Enterprises, Inc., Madison Heights Glass Company, Inc., National Millwork, Inc., Smith Marketing Group, Inc., Tie Leasing Company, VSR Industries, Inc., and WH Canon, Inc.

There being no questions from Board members, it was moved by Mr. Watza and seconded by Ms. Rom that the Board enter orders finding and concluding that Ann Arbor Ceiling & Partition Co., L.L.C., Empire Tile Company, Jim Waldron Pontiac-Buick-GMC Truck, Inc., Kipco Enterprises, Inc., Madison Heights Glass Company, Inc., National Millwork, Inc., Smith Marketing Group, Inc., Tie Leasing Company, VSR Industries, Inc., and WH Canon, 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.

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 Bally Gaming, Inc., Casino Credit Services, L.L.C. and Millennium Management Group.

After questions were raised by Ms. Rom regarding Bally Gaming, Inc.'s financial overview and violations and Millennium Management Group's financial overview, it was moved by Ms. Rom and seconded by Mr. Robinson to table Millennium Management Group's renewal application until Millennium's financial status could be reviewed by Licensing Division staff.  A voice vote was taken.

Motion carried.

Next, it was moved by Ms. Rom and seconded by Mr. Robinson that the Board enter orders granting the requests of Bally Gaming, Inc. and Casino Credit Services, L.L.C. for the renewal of their annual supplier license for a new one-year period beginning February 12, 2008.    A voice vote was taken.

Motion carried.

The next agenda item considered by the Board was the Executive Director's Report and the Licensing Division's staff recommendation regarding the request of Precision Industrial Services, Inc. to withdraw its supplier license application.

There being no questions from Board members, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter an order granting the request of Precision Industrial Services, Inc. for withdrawal of its supplier license application.  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 Girard Allen Stevenson.

Chairman Kassab noted for the record that neither Mr. Stevenson nor his representative was present at the meeting.  Chairman Kassab invited Assistant Attorney General Jessica Weiler to give a brief overview of the case.

After a lengthy discussion regarding the Board staffs' recommendation for revocation of Mr. Stevenson's license, it was moved by Mr. Kassab and seconded by Ms. Rom that the Board enter an order accepting the summary suspension of Girard Allen Stevenson and have the Board file a formal complaint and send the matter to hearing.  A roll call vote was taken.

                                    Mr. Kassab:                       Aye
                                    Mr. Robinson:                    Aye
                                    Ms. Rom                           Aye
                                    Mr. Watza:                        Aye

Motion carried.

Next the Board considered the Acknowledgement of Violation of occupational licensee Evelyn Bonney.

Chairman Kassab noted for the record that neither Ms. Bonney nor her representative was present at the meeting.  Assistant Attorney Melinda Leonard introduced herself for the record and gave an overview of the case.

There being no questions from Board members, it was moved by Mr. Watza and seconded by Ms. Rom that the Board accept the proposed Acknowledgment of Violation as agreed to by the Michigan Gaming Control Board and occupational licensee Evelyn Bonney, and issue an order adopting, accepting, and incorporating this Acknowledgment of Violation as the Board's final decision.  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 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
                        Mr. Robinson:                              Aye
                        Ms. Rom:                                    Aye
                        Mr. Watza:                                  Aye

There being no public comments, Chairman Kassab adjourned the meeting at 10:55 a.m.

________________________________________________
Laurie Lander, Board Secretary