STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Albert Kahn Building

7430 Second Avenue, Suite 300

Detroit, Michigan

TUESDAY, February 12, 2002

6:00 P.M.

MINUTES

On Tuesday, February 12, 2002, the Michigan Gaming Control Board held a public meeting at the Board office in the Albert Kahn Building, 7430 Second Avenue, Suite 300, Detroit, Michigan.

Present:   In attendance were the following Board members:

           Judge Roman S. Gribbs, Chairman

            Rich Davis

            Judge Geraldine Bledsoe Ford

            Judge Michael Stacey

            Also attending were:

            Nelson Westrin

            Patty James

            Eric Eggan

            Dewayne Brantley

Business:           
The meeting was called to order at 6:05 p.m., by new Board Chairman Roman Gribbs.  Judge Gribbs initially announced that he had recently been designated to take over as the Board's chair in place of former Chairman Tom Denomme, who had recently resigned from the Board. Next Judge Gribbs announced that Governor Engler had also appointed Larry Garberding, the recently retired executive vice president and chief financial officer of Detroit Edison, to replace Mr. Denome as a member of the Board for a term expiring December 20, 2004.

Chairman Gribbs then stated that Larry Garberding could not attend the meeting and was excused due to a prior commitment.  Chairman Gribbs next stated that Board members present have received copies of the minutes from the last Board meeting and there being no comments, changes or corrections to the minutes, he requested a motion to approve the minutes from the December 11, 2001 meeting.

It was moved and seconded that the minutes of the December 11, 2001 meeting be approved.  Motion carried.

Nelson Westrin next presented the Executive Director's report.  Mr. Westrin announced the hiring of two new employees, Pam Trakul, Senior Executive Management Assistant for Deputy Director, Ben McMakin and Patrick O'Keefe, Departmental Records Technician for the Records Section.

Mr. Westrin next advised that the Board's 2001 fourth quarter Distinguished Employee Recognition Awards had been announced during the Board's December 19, 2001 staff meeting. Mr. Westrin named each of the honored employees, which included Licensing Division's secretary Melissa Goodnoe, Board auditors Stratford Johnson, Theresa Willis and Cedric Knott, and Detroit office secretaries, Donna Davis, Kristine Dyer, Stina Lyles and Simona Richardson.  All but Melissa Goodnoe were present and were asked by Mr. Westrin to stand up in the audience when their names were announced to the Board.

Mr. Westrin next gave an update regarding the Board's budget.  Mr. Westrin reported that the Board has incurred expenditures in the amount of $3,855,373 from October 1, 2001 through January 31, 2002, leaving the unexpended balance of $13,033,327 in appropriated funding for the remainder of the fiscal year, which ends September 30, 2002. 

Mr. Westrin next advised the Board that 2001 was the first year that all three casinos had operated together for a full 12 months and that together they had generated over one billion dollars in combined adjusted gross gaming revenues in 2001 compared to $743.6 million in 2000.

Mr. Westrin further stated that the total wagering taxes and fees paid to the State of Michigan from the casinos similarly increased from $85.2 million in 2000 to $106.5 million in 2001.  In addition, Mr. Westrin also reported that total wagering taxes and fees paid to the City of Detroit had also increased from $86.6 million in 2000 to $112.8 million in 2001. 

Mr. Westrin next reported that all three casinos continue to operate on a seven-day, 24-hour basis, and that Board regulatory and audit staff regularly monitor casino operations and related casino wagering tax returns and revenue and expense records.

Mr. Westrin next advised the Board that the Licensing Division has completed its investigation on Anthony Gramer and Daniel Boone Wayson, new required qualifiers of MGM Grand Detroit, L.L.C. and that the Board would be considering the Licensing Division's recommendation regarding the suitability of Messrs. Gramer and Wayson as MGM Grand Detroit, L.L.C. qualifiers as part of the business agenda.

Mr. Westrin then proceeded to update the Board on the status of the issuance of temporary supplier licenses, full supplier licenses, vendor registrations, and supplier licensing exemptions, as well as the status of the issuance of temporary and permanent occupational licenses for the three casinos.

After Mr. Westrin concluded his report, there were no questions for Mr. Westrin or comments from the Board regarding the Executive Director's Report. 

Chairman Gribbs next stated that the first order of business was to consider the Licensing Division's staff recommendations regarding 599 pending level 1 and 2 occupational license applications. Staff recommended issuance of 596 licenses and denial of 3 license applications.

Chairman Gribbs requested that Deputy Director of Licensing, Ben McMakin and Daniel Fields introduce themselves to the Board to answer any questions the Board members might have regarding the Licensing Division's staff recommendations regarding the pending occupational license applications.

The Board having no questions, it was moved by Judge Ford and seconded by Judge Stacey that the Board enter an order accepting and adopting the Licensing Division's staff recommendation regarding the 599 level 1 and 2 occupational license applications listed and summarized in Exhibit 1, and also directing that the Executive Director issue occupational licenses to the named applicants in accordance with the staff's written recommendations.  The following roll call vote was then taken on the motion:

      Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Aye

Motion carried.

The next order of business on the agenda was to consider the Executive Director's Report and the Licensing Division's staff recommendation regarding the eligibility and suitability of Anthony Gramer as a required qualifier of casino licensee MGM Grand Detroit, L.L.C.

It was noted by Judge Gribbs for the record that Board representative, Mr. Ben McMakin was present to answer any questions relative to this recommendation.  It was further noted that Mr. Gramer's legal counsel, Mr. Lawrence Winokur, was also present at tonight's meeting.

Upon motion by Judge Stacey, seconded by Judge Ford, the following roll call vote was taken on the motion that the Board enter an order finding Anthony Gramer eligible and suitable as a required qualifier/key person of casino licensee MGM Grand Detroit, L.L.C. under the licensing standards and requirements of the Act and Board rules, based upon the background investigative report and recommendation of the Executive Director and the Board's Licensing Division staff:

      Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Aye

Motion carried.

The Board next considered the Executive Director's Report and Licensing Division's staff recommendation regarding the eligibility and suitability of Daniel Boone Wayson as a key person and required qualifier of casino licensee MGM Grand Detroit, L.L.C.

It was noted by Judge Gribbs for the record that Board representative, Mr. Ben McMakin was present to answer any questions relative to this recommendation.  It was also noted that neither Mr. Wayson nor his representative were present at tonight's meeting.

The Board having no questions, it was moved by Mr. Davis and seconded by Judge Ford that the Board enter an order finding Daniel Boone Wayson eligible and suitable as a required qualifier/key person of casino licensee MGM Grand Detroit, L.L.C., under the licensing standards and requirements of the Act and Board rules, based upon the background investigative report and recommendation of the Executive Director and the Board's Licensing Division staff.  The following roll call vote was taken on the motion:

      Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Aye

Motion carried.

The next order of business on the agenda was to consider the Executive Director's Report and the Licensing Division's staff recommendation regarding the eligibility and suitability of Patrick William Cavanaugh as a new key person and a required qualifier of supplier licensee AGI Distribution, Inc., doing business as Acres Gaming, Inc.

It was noted by Judge Gribbs for the record that Board representative, Mr. Ben McMakin was present to answer any questions relative to this recommendation.  It was also noted that neither Mr. Cavanaugh nor an AGI Distribution, Inc. representative were present at tonight's meeting.

It was moved by Judge Ford and seconded by Mr. Davis that the Board enter an order finding Patrick William Cavanaugh eligible and suitable as a required qualifier and key person of supplier licensee, Acres Gaming, Inc., under the licensing standards and requirements of the Act and Board rules, based upon the background investigative report and recommendation of the Executive Director's Report and the Board's Licensing Division staff.  The following roll call vote was taken on the motion:

      Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Aye

Motion carried.

The Board next considered the Executive Director's Report and Licensing Division's staff recommendation regarding the pending supplier application of Shuffle Master, Inc., Board File No. SL-0313-02-001.

It was noted by Judge Gribbs for the record that Board representative, Mr. Ben McMakin was present to answer any questions relative to this recommendation.  It was also noted that Ms. Kathy Worley, Director of Compliance for Shuffle Master, Inc. was present at tonight's meeting.

Upon motion by Judge Stacey, seconded by Judge Ford, the following roll call vote was taken on the motion that the Board enter an order finding and concluding that Shuffle Master, Inc. is eligible and suitable for licensure as a gaming-related supplier under the licensing standards and requirements of the Michigan Gaming Control and Revenue Act as amended and administrative rules of this Board and accordingly granting the supplier license application of Shuffle Master, Inc., based upon the written background investigative report and recommendation of the Executive Director and the Board's Licensing Division staff. 

      Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Aye

Motion carried.

The next order of business was to consider the Executive Director's Report and the Licensing Division's staff recommendation regarding the pending supplier application of Simon and Leeman, Board File No. SL-0448-02-001.

It was noted by Judge Gribbs for the record that Board representative, Mr. Ben McMakin was present to answer any questions relative to this recommendation.  It was also noted that there were no representatives from Simon and Leeman in attendance at tonight's meeting.

It was moved by Mr. Davis and seconded by Judge Ford that the Board enter an order finding and concluding that Simon and Leeman Corporation, doing business as Simon and Leeman, is eligible and suitable for licensure as a nongaming-related supplier under the licensing standards and requirements of the Michigan Gaming Control and Revenue Act, as amended, and administrative rules of the Board, and, accordingly, granting the supplier license application of Simon and Leeman based upon the written background investigative report and recommendation of the Executive Director and the Board's Licensing Division staff.  The following roll call vote was taken on the motion:

      Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Aye

Motion carried.

The Board next considered the Executive Director's Report and the Licensing Division's staff recommendation regarding the pending supplier application of United States Playing Card Company, Board File No. SL-0288-02-001.

It was noted by Chairman Gribbs for the record that Board representative, Mr. Ben McMakin was present to answer any questions relative to this recommendation.  It was also noted that United States Playing Card Company's representative, Mr. Dave Waddell, from the Fraser Law Firm was present at tonight's meeting.

It was moved by Judge Ford and seconded by Mr. Davis that the Board enter an order finding and concluding that United States Playing Card Company is eligible and suitable for licensure as a gaming-related supplier under the licensing standards and requirements of the Michigan Gaming Control and Revenue Act, as amended, and administrative rules of the Board and accordingly granting the supplier license application of United States Playing Cards Company based upon the written background investigative report and recommendation of the Executive Director and the Board's Licensing Division staff.  The following roll call vote was taken on the motion:

      Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Aye

Motion carried.

The next order of business considered by the Board was the proposed Stipulated Acknowledgement of Violation and resolution In the Matter of Greektown Casino, L.L.C. and Millennium Management, L.L.C., Board File No. DA-2002-01.

Chairman Gribbs requested that Deputy Director of Licensing, Ben McMakin, Deputy Director of Enforcement, Tom Nelson and Assistant Attorney General, John Cahill come forward and separately identify themselves for the record.  It was also noted for the record that Mr. Michael Atkins with the firm Miller, Canfield, Paddock and Stone was appearing on behalf of both Greektown Casino, L.L.C. and Millennium Management Group, L.L.C.

Chairman Gribbs invited Deputy Director McMakin to give a brief summary of the alleged violations, the proposed Acknowledgement of Violation, the resolution and staff's recommendation.

Upon completion of Mr. McMakin's overview, Mr. Atkins acknowledged the violations and resolution, and described the corrective action taken to bring Greektown Casino into full compliance with its internal controls and the Board's Act and rules.

After questions were posed by the Board to Mr. Atkins and answered, it was moved by Judge Stacey and seconded by Judge Ford that the Board enter a final decision and order in the matter of Greektown Casino, L.L.C., casino licensee, and Millennium Management, L.L.C., supplier licensee, Board Case No. DA-2002-01 approving, adopting and incorporating the proposed Stipulated Acknowledgment of Violations and sanctions in its entirety, after it is fully executed by all parties, as part of the Board's final decision and order resolving the disciplinary action against Greektown Casino, L.L.C., and Millennium Management, L.L.C., in this matter, and further authorizing and directing the Executive Director to monitor and enforce the compliance of Greektown Casino, L.L.C., and Millennium Management, L.L.C., with the terms and conditions of the parties' Stipulated Acknowledgement of Violations and sanctions and the Board's final decision and order in this matter.  The following roll call vote was taken on this motion:

       Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Aye

Motion carried.

The next order of business the Board considered was the Proposal for Decision In the Matter of the Notice of the Exclusion of Sharwon Dosky, NOE-2000-01.

Chairman Gribbs noted for the record that Assistant Attorney General, John Cahill was present to represent the Board.  It was further noted for the record that Mr. Dosky and his attorney had been sent notice that the Board would consider the Proposal for Decision in this matter at tonight's meeting but neither were present.

Upon motion by Mr. Davis, seconded by Judge Ford, it was moved that the Board enter a final decision and order in the matter of the Notice of Exclusion of Sharwon Dosky, Board File NOE-2000-01 accepting, adopting, and incorporating the hearing officer's Proposal for Decision in this matter in its entirety, and denying Mr. Dosky's previously filed written request to be removed by the Board from the Board exclusion list, for the reasons stated in the Proposal for Decision, pursuant to MCL 432.204a(1) and part six of the Board's administrative rules.  The following roll call vote was taken on this motion:

      Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Aye

Motion carried.

The Board next considered the Proposal for Decision In the Matter of Denial of Ambrose Cosey's Application for Occupational License, Board File No. OLH-2001-13.

Chairman Gribbs noted for the record that Assistant Attorney General, John Cahill was present to represent the Board.  It was further noted that Mr. Cosey and his representative, Mr. Harrison Munson, were present at tonight's meeting.

Chairman Gribbs next invited Mr. Munson to present argument regarding Mr.Cosey's objections to the hearing officer's Proposal for Decision.  Upon conclusion of Mr. Munson's comments, Assistant Attorney General, John Cahill presented rebuttal argument in support of the hearing officer's Proposal for Decision in this matter.  Mr. Munson was then invited to respond to Mr. Cahill's argument and upon conclusion of his response, Ambrose Cosey provided further comments on his own behalf.

Upon confirmation from Mr. Munson, that he had obtained new information and documents relative to this matter, it was moved by Judge Gribbs and seconded by Judge Ford that this matter be remanded for further consideration of the new information, and any new materials be presented to the hearing officer and a report be presented to the Board at its regular meeting in March.  The following voice vote was taken on the motion:

      Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Opposed

Motion carried three to one.

It was next noted for the record that a brief recess was taken and the meeting reconvened.

The next item on the agenda was the Board's consideration of the Proposal for Decision In the Matter of the Denial of James Arnell Cannon's Application for an Occupational License, Board File No. OLH-2001-16.

It was noted that Mr. Cannon and the Board's representative Assistant Attorney General, John Cahill were present at tonight's meeting.

Chairman Gribbs stated that the hearing officer's Proposal for Decision in this matter recommended reversal of the Board's previous denial of Mr. Cannon's application for an occupational license.  He further stated that Assistant Attorney General, John Cahill on behalf of the Board, filed a written objection on the Proposal for Decision contending that the Board should affirm its prior denial of Mr. Cannon's occupational license.

Judge Gribbs then requested Mr. Cahill and Mr. Cannon to separately address the Board regarding the hearing officer's Proposal for Decision and Board staff's objections to the Proposal for Decision.

Upon completion of Mr. Cahill's and Mr. Cannon's presentations, it was moved by Judge Ford and seconded by Mr. Davis, that the Board enter an order rejecting and dissolving the hearing officer's current Proposal for Decision in this matter for the reasons stated and the Board staff's written objections and further remanding the matter to the Executive Director for preparation of another Proposal for Decision containing findings of fact and conclusions of law consistent with the Board staff's written objections and recommendations that the Board's previous denial of James Arnell Cannon's occupational license application be affirmed.  The following roll call vote was taken on the motion:

      Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Aye

Motion carried.

The Board next considered the hearing officer's Proposal for Decision affirming the prior denial of Dewight Earl Ramsey's application for an occupational license, Board File No. OLH-2001-19.

For the record, the Chairman recognized Assistant Attorney General, John Cahill, appearing on behalf of Board staff.   It was also noted for the record that neither Mr. Ramsey nor his representative were present at tonight's meeting, despite being sent notice that the matter would be considered by the Board at tonight's meeting.

There being no discussion or questions regarding the Proposal for Decision, it was moved by Mr. Davis and seconded by Judge Ford that the Board enter a final decision and order In the Matter of the Denial of Dewight Earl Ramsey's Application for an Occupational License, Board File No. OLH-2001-19, accepting, adopting and incorporating the hearing officer's Proposal for Decision in the matter in its entirety and denying the occupational license for which Dewight Earl Ramsey made application.  The following roll call vote was taken on the motion:

      Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Aye

Motion carried.

The next item on the agenda was for the Board's consideration of the Proposal for Decision In the Matter of the Denial of Joann Johnson's Application for an Occupational License, Board File No. OLH-2001-20.

Chairman Gribbs noted for the record that Assistant Attorney General, John Cahill was present to represent the Board.  It was further noted that neither Ms. Johnson nor her representative were present at tonight's meeting, despite being sent notice that the Board would consider the Proposal for Decision in this matter at tonight's meeting.

The Board had no questions regarding the Proposal for decision, and upon motion of Judge Ford and support from Mr. Davis, it was moved that the Board enter a final decision and order In the Matter of the Denial of Joann Johnson's Application for an Occupational License, Board File No. OLH-2001-20, accepting, adopting and incorporating the hearing officer's Proposal for Decision in the matter in its entirety and denying the occupational license for which Joann Johnson made application.  The following roll call vote was taken on the motion:

      Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Aye

Motion carried.

The next order of business was to receive and consider remarks of Conly Schulte, Attorney for Lac Vieux Desert Band of Lake Superior Chippewa Indians relative to the case of Lac Vieux Desert Band vs. Michigan Gaming Control Board, et al, United States District Court Western District, File No. 2:97-CV-67.

Mr. Schulte introduced himself and Mr. Jim Williams, Vice Chairman of the Lac Vieux Desert Band.  Mr. Schulte then proceeded to address the Board.

Upon completion of Mr. Schulte's presentation Chairman Gribbs requested that a written statement received from the City of Detroit Mayor's office be read and made part of the record of tonight's proceedings.

Upon completion of reading Deputy Mayor Conrad Mallett's written statement into the record, the Board opened the floor for public comment.

The first speaker coming forward for public comment introduced himself as Jerome Alman.  Mr. Alman proceeded with public commentary concerning the City's casino developer selection process, and the subsequent development of the temporary casinos and revenues generated by the Detroit casinos.

Chairman Gribbs next recognized Mr. Donald Flynn for public comment.  Upon completion of Mr.  Flynn's comments relative to building a casino in the city of Wyandotte, the Chairman called Mr. Michael Wynn forward for public comment.

Mr. Wynn's comments related to audits conducted by the Board and a request that the Board review his exit conference.  Judge Gribbs advised Mr. Wynn that the Board would take his request under advisement.

There being no further public comments, it was moved by Judge Stacey and seconded by Judge Ford to go into closed session immediately following the conclusion of the public meeting for the purpose of consulting with the Board's attorney regarding pending litigation, which could have detrimental financial impact on the Board if discussed in open session; and also to receive confidential notification from the Executive Director regarding names of individuals placed on the Board's Disassociated Persons List since the Board's last public meeting.

After the motion was made, Assistant Attorney General, Eric Eggan requested permission to address the Board.  It was noted for the record that Mr. Eggan provided legal advice to the Board pertaining to the Open Meetings Act.

A roll call vote was taken on the motion:

      Chairman Gribbs:      Aye

      Rich Davis:               Aye

      Judge Ford:              Aye

      Judge Stacey:          Aye

Motion carried and the meeting was adjourned at 8:58 p.m.

______

Patricia S. James

Board Secretary