STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD
PUBLIC MEETING

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

Tuesday September 8, 2009

9:30 a.m.

MINUTES

On Tuesday September 8, 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:

                                                         Mr. Damian Kassab, Chairman
                                                         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:

Mr. Kassab called the staff briefing of the public meeting to order at 9:33 a.m.   There was no preliminary business to discuss.  Mr. Kassab stated that due to the pending discussions between the City of Detroit and Greektown Casino with regard to the request for tax base reduction, Item IV I would be tabled until the October meeting.  Mr. Kassab also stated that Mr. Moore's Greektown update would not be heard during this meeting due to the same reason.

Mr. Kassab stated that the first order of business was to approve the minutes from the August 11, 2009, regular public meeting. Mr. Kassab 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 August 11, 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, Adam Dick had been hired as a Departmental Technician 9, effective August 24, 2009 and Huifang (Holly) Zhu had been hired as an Auditor for Indian Gaming, effective September 8, 2009, leaving 11 authorized positions to fill.

In regard to the Board's budget, Mr. Kalm reported that as of August 31, 2009, total expenditures were $14,720,337, which leaves an unexpended balance of $5,868,263 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 August 2009, the aggregate revenue and taxes for all 3 Detroit casinos was down by less than 5.4% compared to the same month last year.  Revenue for MGM Grand Detroit and MotorCity Casinos were down by 12.08% and 10.08% respectively, while Greektown Casino was up by 14.14% compared to the same month last year.

For the month ending August 31, 2009, gaming taxes for the 3 Detroit casinos were 10.26 Million compared to 10.63 Million for the same period last year.

In regard to supplier licensing and vendor registration, Mr. Kalm advised the Board that as of August 31, 2009, 3,292 active vendor exemptions are registered, 212 casino supplier companies have been granted exemptions from supplier licensing requirements, 50 active temporary nongaming-related supplier licenses and 6 active temporary gaming-related supplier licenses are in effect.  In addition, a total of 126 full annual supplier licenses have been granted by the Board and to date, remain in effect.

In regard to employee licensing, Mr. Kalm advised the Board that as of August 31, 2009, the Board's Employee Licensing Section had issued a total of 2,609 occupational licenses to MGM Grand Detroit Casino employees; 1,838 occupational licenses to MotorCity Casino employees; and 1,671 occupational licenses to Greektown Casino employees.  To date, the Board has authorized the issuance of 16,350 occupational licenses to casino and supplier license employees; renewed 16,251 occupational licenses and denied 393 occupational license applications.

Mr. Kalm advised the Board that the required background investigations for 34 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 201 renewal requests on behalf of the Board.

Next, Mr. Kalm reported on the MSP Board related activity for the month of August 2009.  During the month of August 2009, the MSP Gaming Section investigated 81 criminal complaints and made 23 arrests.  Mr. Kalm further stated that 8 of the complaints investigated and 4 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 34 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 34 Level 1 and 2 occupational license applications.  A voice vote was taken.

Motion carried.

Next Melinda Leonard outlined the changes made to the proposed Resolution 2009-01.  Changes made increased the thresholds for exemptions to licensing.

It was moved by Ms. Rom and seconded by Mr. Watza to accept the proposed Resolution 2009-01.  A voice vote was taken.

Motion carried.

Next the Board considered the Executive Director's Report and Licensing Division's staff recommendation regarding the renewal of casino license to Detroit Entertainment, LLC d/b/a MotorCity Casino, renewing its annual casino license for a one-year period from September 8, 2009 through September 7, 2010.

It was moved by Mr. Watza and seconded by Ms. Rom that the Board enter an order approving the renewal of casino license of Detroit Entertainment, LLC, d/b/a MotorCity Casino for a one-year period beginning September 8, 2009 through September 7, 2010.

A voice vote was taken.

Motion carried.

Next the Board considered the Executive Director's Report and Licensing Division's staff recommendation regarding the renewal of casino license to MGM Grand Detroit, LLC renewing its annual casino license for a one-year period from September 8, 2009 through September 7, 2010.

It was moved by Judge Friedman and seconded by Mr. Watza that the Board enter an order approving the renewal of casino license of MGM Grand Detroit LLC for a one-year period beginning September 8, 2009 through September 7, 2010.

A voice vote was taken.

Motion carried.

Next the Board considered the Executive Director's Reports and Licensing Division's staff recommendations regarding the transfers of interest in Gemaco, Inc., and Solomon Friedman Advertising, Inc.

There being no questions from Board members, it was moved by Mr. Watza and seconded by Ms. Rom that the Board enter orders approving the transfers of interest in Gemaco, Inc., and Solomon Friedman Advertising, 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 Bluewater Technologies Group, Inc., Don Coleman Advertising, Inc., Harper Associates Detroit, Inc., Heldon Shoe Company and Star Trax Corporate Events.

There being no questions from Board members, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter orders approving the supplier license application requests of Bluewater Technologies Group, Inc., Don Coleman Advertising, Inc., Harper Associates Detroit, Inc., Heldon Shoe Company and Star Trax Corporate Events and their qualifiers 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 September 8, 2009.  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 Glass and Metals Corporation, ComSource, Inc., E. GADS, LLC, Guideline Mechanical, Inc., PMP Enterprises, Inc., Security By Design, Inc. and Skanska USA Design Build, 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 American Glass and Metals Corporation, ComSource, Inc., E. GADS, LLC, Guideline Mechanical, Inc., PMP Enterprises, Inc., Security By Design, Inc. and Skanska USA Design Build, 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 September 8, 2009.  A voice vote was taken.

Motion carried.

The Board next considered the Executive Director's Report and Licensing Division's staff recommendation regarding the request to withdrawal the pending supplier license application of DeMaria Building Company, Inc.

There being no questions from Board members, it was moved by Mr. Watza and seconded by Judge Friedman that the Board enter  an order granting the request of DeMaria Building Company, Inc. for withdrawal of  its supplier license application, based upon the Board staff's report and recommendation.  A voice vote was taken.

Motion carried.

Next, it was moved by Mr. Kassab and seconded by Mr. Watza that the matter of Greektown Casino's request for tax base reduction be tabled until the October Board meeting. A voice vote was taken.

Motion carried.

Next, the Board considered the adoption of the proposed schedule of the Board's regular public meetings for fiscal year 2010.  Ms. Rom requested that the December meeting be moved from December 8, 2009 to December 15, 2009.  The change was made.

It was moved by Ms. Rom and seconded by Mr. Watza that the Board adopt the proposed schedule of its regular public meetings for the fiscal year 2010 with the December meeting being held on December 15, 2009.  A voice vote was taken.

Motion carried.

Next, Mr. Kassab 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 Dissociated Persons List since the Board's last public meeting as required by the Act.

Therefore, it was moved by Mr. Kassab and seconded by Mr. Watza 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 Dissociated Persons List since the Board's last public meeting as required by the Act.  A roll call vote was taken.

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

Motion Carried.

After the closed session the public meeting was reconvened and Mr. Kassab announced that the Board's next regular public meeting will be October 13, 2009, at 9:30 a.m.

There being no other business, Mr. Kassab adjourned the meeting at 10:34 a.m.

____________________________

Diane Brown, Board Secretary