STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD
PUBLIC MEETING

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

Tuesday August 11, 2009

9:30 a.m.

MINUTES

On Tuesday August 11, 2009, the Michigan Gaming Control Board held a public meeting at the Board office in the Cadillac Place, 3062 W. Grand Boulevard, Suite L-700, Detroit, Michigan.

Present:                         In attendance were the following Board members:

                                                         Ms. Barbara Rom
                                                         Judge Benjamin Friedman
                                                         Mr. Michael Watza                                                 

                                     Also attending were:

                                                         Richard Kalm
                                                         Fred Cleland
                                                         Thomas Barker
                                                         John Page
                                                         D/F Lt. Robert Hendrix
                                                         Donald McGehee
                                                         Diane Brown                                                      

Business:

Ms. Rom announced that Board Chairman Damian Kassab would not be attending this meeting and called the staff briefing of the public meeting to order at 9:33 a.m. It was also noted by Ms. Rom that due to there not being a quorum for this meeting, the casino renewals would be tabled until the September 8, 2009 meeting.  There was no preliminary business to discuss.  

Ms. Rom stated that the first order of business was to approve the minutes from the June 9, 2009, regular public meeting.  Ms. Rom noted that all Board members had previously received the minutes, and asked if there were any questions or concerns.

It was then moved by Judge Friedman and seconded by Mr. Watza that the minutes of the June 9, 2009, meeting be approved.  A voice vote was taken.

Motion carried.

Next Mr. Kalm presented the Executive Director's report.  Mr. Kalm reported that since the last Board meeting, Carrie Dodt had been hired as a Departmental Technician 9, effective June 15, 2009, Kevin Vennard had been hired as an Auditor for Indian Gaming effective August 10, 2009 and Christopher Dunklee had been hired as an Engineer in the Gaming Laboratory effective August 10, 2009.   He also stated that Celeste McDonald had been promoted to Departmental Technician 10, effective July 27, 2009, leaving 13 authorized positions to fill.

In regards to the Board's budget, Mr. Kalm reported that as of July 31, 2009, total expenditures were $12,944,147, which leaves an unexpended balance of $7,644,453 in appropriated funding for fiscal year 2009.   These funds include 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 the month of July 2009, the aggregate revenue and taxes for all 3 Detroit casinos was down by less than 1/4% compared to the same month last year.  Revenues for MGM Grand Detroit and MotorCity Casinos were down by 5.4% and 9.62% respectively, while Greektown Casino was up by 24.83% compared to the same month last year.

For the month ending July 31, 2009, gaming taxes for the 3 Detroit casinos were 10.61 Million compared to 11.093 Million for the same period last year.

In regards to supplier licensing and vendor registration, Mr. Kalm advised the Board that as of July 31, 2009, 3,282 active vendor exemptions are registered, 211 casino supplier companies have been granted exemptions from supplier licensing requirements, and 59 active temporary nongaming-related supplier licenses and 6 active temporary gaming-related supplier licenses are in effect.  In addition, a total of 124 full annual supplier licenses have been granted by the Board and to date, remain in effect.

In regards to employee licensing, Mr. Kalm advised the Board that as of July 31, 2009, the Board's Employee Licensing Section had issued a total of 2,649 valid occupational licenses to MGM Grand Detroit Casino employees; 1,861 valid occupational licenses to MotorCity Casino employees; and 1,712 valid occupational licenses to Greektown Casino employees.  To date, the Board has authorized the issuance of 16,259 occupational licenses to casino and supplier license employees; renewed 16,050 occupational licenses and denied 393 occupational license applications.

Mr. Kalm advised the Board that the required background investigations for 69 pending Level 1 and 2 licenses had been completed and would be considered for approval by the Board at today's meeting and pursuant to Board Resolution No. 2002-02 he has approved 454 renewal requests on behalf of the Board.

Next, Mr. Kalm reported on the MSP Board related activity for the months of June and July 2009.  During the months of June and July 2009, the MSP Gaming Section investigated 127 criminal complaints and made 62 arrests.  Mr. Kalm further stated that 20 of the complaints investigated and 16 of the arrests made were of Disassociated Persons.

Next the Board considered for approval the recommendations of the Executive Director and the Licensing Division's staff regarding the 69 level 1 and 2 occupational license applications.

It was moved by Mr. Watza and seconded by Judge Friedman to accept the recommendations of the Executive Director and the Licensing Division's staff for the 69 Level 1 and 2 occupational license applications.  A voice vote was taken.

Motion carried.

Next Ms. Rom had questions regarding proposed Resolution 2009-01.  Fred Cleland summarized the changes that had been made.  Ms. Rom asked that Board staff review the threshold amounts and resubmit the resolution for approval at the September 8, 2009 meeting.

I t was moved by Mr. Watza and seconded by Judge Friedman to table the motion on the Resolution until the September 8, 2009 meeting.  A voice vote was taken.

Motion carried.

Next the Board considered the Executive Director's Report and Licensing Division's staff recommendation regarding the transfer of interest in Northern Lakes Seafood & Meats, LLC.

There being no questions from Board members, it was moved by Judge Friedman and seconded by Mr. Watza that the Board enter an order approving the transfer of interest in Northern Lakes Seafood & Meats, LLC. 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 Greektown Creamery, LLC, J.J.S.V. Enterprises, Inc., JRDesigns, Inc., Miller Parking Company, LLC, MLS Signs, Inc., Professional Sanitary Supply Corp., and Zingerman's Bakehouse.

There being no questions from Board members, it was moved by Mr. Watza and seconded by Judge Friedman that the Board enter orders approving the supplier license application requests of Greektown Creamery, LLC, J.J.S.V. Enterprises, Inc., JRDesigns, Inc., Miller Parking Company, LLC, MLS Signs, Inc., Professional Sanitary Supply Corp., and Zingerman's Bakehouse.

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 Bayview Electric Company, LLC, General Linen Supply Company, John E. Green Company and Midwest Steel, Inc.

There being no questions from Board members, it was moved by Judge Friedman and seconded by Mr. Watza that the Board enter orders finding and concluding that Bayview Electric Company, LLC, General Linen Supply Company, John E. Green Company and Midwest Steel, Inc. and their qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board.  And accordingly, grant these requests for a one-year period beginning August 11, 2009.  A voice vote was taken.

Motion carried.

The Board next considered the Executive Director's Reports and Licensing Division's staff recommendations regarding the requests to withdrawal the pending supplier license applications of American Mailers, Inc., The Chimaera Group, LLC, The Freeman Group, Inc., M-Limousine, Inc., Krystallos, Inc., Professional Garment Systems, Inc., and Tiffany's Building Services, Inc.

There being no questions from Board members, it was moved by Mr. Watza and seconded by Judge Friedman that the Board enter orders granting the requests of American Mailers, Inc., The Chimaera Group, LLC, The Freeman Group, Inc., M-Limousine, Inc., Krystallos, Inc., Professional Garment Systems, Inc., and Tiffany's Building Services, Inc. for withdrawal of  their supplier license applications, based upon the Board staff's reports and recommendations.  A voice vote was taken.

Motion carried.

Next the Board considered accepting the proposed Acknowledgments of Violation as agreed to by the Michigan Gaming Control Board staff and supplier licensees Blaze Contracting, Inc., Compsat Security, Inc., Compsat Technologies, Inc., Jenkins Construction, Inc., LaGrasso Brothers, Inc., Michigan Foundation Company, Inc., RAM Construction Services, Inc., and casino licensee Greektown Casino, LLC, and issue orders adopting, accepting and incorporating the Acknowledgments of Violation as the Board's final decision.

There being no representatives of the respective companies present and no questions from Board members, it was moved by Mr. Watza and seconded by Judge Friedman that the Board enter orders approving the proposed Acknowledgments of Violation as agreed to by the Michigan Gaming Control Board staff and supplier licensees Blaze Contracting, Inc., Compsat Security, Inc., Compsat Technologies, Inc., Jenkins Construction, Inc., LaGrasso Brothers, Inc., Michigan Foundation Company, Inc., RAM Construction Services, Inc., and casino licensee Greektown Casino, LLC, and issue orders adopting, accepting and incorporating the Acknowledgments of Violation as the Board's final decision.  A voice vote was taken.

Motion carried.

Next the Board considered the recommendation regarding the request of Greektown Casino, LLC for Tax Base Reduction Certification.

Mr. Kalm suggested that due to the voluminous amount of information that has been provided to the Board, this matter also be tabled to the September Board Meeting to allow the Board members more time to review the information provided to them.

A motion was made by Ms. Rom that Mr. Kalm engage in discussions with the parties to see if a facilitation process can be established in an effort to have the parties come to an agreement.  Motion was supported by Judge Friedman.  A voice vote was taken.

Motion carried.

Mr. Fine provided a monthly status report for Greektown Casino LLC.  Ms. Rom asked Mr. Fine what the profit was after the EBITAR and he stated that he did not know but that one of his colleagues would look it up.  It was later reported there was a net loss of $5.1 million in July.

Next, Ms. Rom stated that the Board needed to consider a motion to go into closed session immediately following public comment 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 Disassociated Persons List since the Board's last public meeting as required by the Act.

Therefore, it was moved by Mr. Watza and seconded by Judge Friedman that the Board consider a motion to go into closed session immediately following public comment 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 Disassociated Persons List since the Board's last public meeting as required by the Act. 
A roll call vote was taken.

                                              Ms. Rom:                                     Aye
                                              Judge Friedman:                           Aye
                                              Mr. Watza                                    Aye

Motion Carried.

After the closed session the public meeting was reconvened and Ms. Rom announced that the Board's next regular public meeting will be September 8, 2009, at 9:30 a.m.

There being no other business, Ms. Rom adjourned the meeting at 11:13 a.m.

____________________________
Diane Brown, Board Secretary