STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Albert Kahn Building

7430 Second Avenue, Suite 300

Detroit, Michigan

TUESDAY, March 12, 2002

6:00 P.M.

MINUTES

On Tuesday, March 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

                                                Judge Michael Stacey

                                                Rich Davis

                                                Larry Garberding

                        Also attending were:

                                                Nelson Westrin

                                                Patty James

                                                Eric Eggan

                                                Dewayne Brantley

                                                Ben McMakin

Business:            The meeting was called to order at 6:00 p.m., by Board Chairman Roman Gribbs.  Judge Gribbs introduced the newest Board member, Larry Garberding, the recently retired Executive Vice President of Detroit Edison and DTE Energy.  Judge Gribbs further noted that Mr. Garberding is the Director Trustee of the Detroit Medical Center and the Detroit Symphony Orchestra Hall, and serves on the Board of Directors for ArtServe Michigan. 

                        Chairman Gribbs then stated that Judge Ford 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 February 12, 2002 meeting.

                        It was moved and seconded that the minutes of the February 12, 2002 meeting be approved.  Motion carried.

                        Nelson Westrin next presented the Executive Director’s report.  Mr. Westrin proceeded to give an update regarding the Board’s budget.  Mr. Westrin reported that the Board has incurred expenditures in the amount of $5,228,549 from October 1, 2001 through February 28, 2002, leaving the unexpended balance of $11,660,151 in appropriated funding for the remainder of the fiscal year, which ends September 30, 2002. 

                        Mr. Westrin next reported on staffing for the Board.  He stated there had been no new hires since the last board meeting and that the Board has been authorized by the Department of Management and Budget to fill 21 additional positions.  Mr. Westrin stated that the Board's current staff numbered 86.

                        Mr. Westrin continued his report by advising that the Board’s redesigned web site went online as part of the State of Michigan’s new comprehensive web site for all state governmental agencies.

                        Mr. Westrin next advised the Board that the assessed fines and costs relative to the disciplinary action involving Greektown Casino, L.L.C. and Millennium Management Group, L.L.C., taken at last month's meeting have been paid.

                        Mr. Westrin continued his report by informing the Board that all three casinos have posted substantial increases in their adjusted gross revenues for January and February 2002, compared to the same time period in 2001.  MGM and MotorCity are up 24.4 percent and 20 percent, respectively, and Greektown Casino is up nearly 40 percent.  Mr. Westrin further stated that combined revenues from all three casinos are up 26.7 percent over the same time period.

                        Mr. Westrin next advised the Board that Greektown Casino has finalized a collective bargaining agreement with its employees.  Mr. Westrin further stated that all three casinos and their employees are now covered by collective bargaining agreements.

                        Mr. Westrin continued his report by advising the Board that the Licensing Division has completed its investigations on Salvatore Peter Semola, a key person and qualifier of Millennium Management Group, L.L.C., and supplier applicants Sigma Game, Inc., WMS Gaming, Inc., Gold Star Equipment, Inc. and Unlimited Security Services, L.L.C. and that the Board would be considering the Licensing Division’s recommendations regarding the suitability of Mr. Semola as a qualifier and the four supplier applications 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.

                        There being no questions for Mr. Westrin or comments from the Board regarding the Executive Director’s Report, Judge Gribbs proceeded to the first item of the business agenda.

                        Chairman Gribbs stated that the first order of business was to consider the Licensing Division’s staff recommendations regarding 304 pending level 2 occupational license applications and 5 level 1 and 2 occupational license renewals. Staff recommended issuance of all 309 license applications and renewal requests.

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

The Board having no questions, it was moved by Judge Stacey and seconded by Mr. Garberding that the Board enter an order accepting and adopting the Licensing Division’s staff recommendations regarding the 304 level 2 occupational license applications and 5 level 1 and level 2 occupational license renewal requests as 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

      Larry Garberding:      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 Salvatore Peter Semola as a required key person/qualifier of supplier licensee Millennium Management Group, L.L.C., Board File No. SL0004-02-001.

                              It was noted by Judge Gribbs for the record that Board Licensing Division representative, Mr. McMakin, was present to answer any questions relative to this recommendation.  It was further noted that neither Mr. Semola, nor a representative from Millennium Management Group, L.L.C. were present at tonight’s meeting.

                        Upon motion by Mr. Davis, seconded by Judge Stacey, the following roll call vote was taken on the motion that the Board enter an order finding Salvatore Peter Semola eligible and suitable as a required qualifier/key person of supplier licensee Millennium Management Group, 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

      Mr. Garberding:      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 license application of Sigma Game, Inc., Board File No. SL-0005-02-001.

                              For the record it was noted by Judge Gribbs that Board representative, Mr. McMakin, was present to answer any questions relative to this recommendation and the recommendations of WMS Gaming, Inc., and Gold Star Equipment, Inc. It was also noted that there were no representatives from Sigma Game, Inc. present at tonight’s meeting.

                              The Board having no questions, it was moved by Mr. Garberding and seconded by Mr. Davis that the Board enter an order finding Sigma Game, Inc. is eligible and suitable for licensure as a gaming-related supplier under the licensing standards and requirements of the Act and Board rules and, accordingly, granting the supplier license application of Sigma Game, Inc.,  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

      Larry Garberding:      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 pending supplier license application of WMS Gaming, Inc., Board File No. SL0037-02-001.

                              It was noted by Judge Gribbs for the record that John DeGrasse, Director of Licensing and Regulatory Affairs for WMS Gaming, Inc., was present at tonight’s meeting.

                              After a brief commentary by Mr. DeGrasse, it was moved by Judge Stacey and seconded by Mr. Garberding that the Board enter an order finding and concluding that WMS Gaming, Inc., is eligible and suitable for licensure as a gaming-related supplier under the licensing standards and requirements of the Act and Board rules and, accordingly, granting the supplier license application of WMS Gaming, Inc., 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

      Larry Garberding:      Aye

      Judge Stacey:      Aye

                        Motion carried.

                        The Board next considered the Executive Director’s Report and Licensing Division’s staff recommendation to deny the pending supplier application of Unlimited Security Services, L.L.C., Board File No. SL-0236-02-001.

                        Mr. Eggan advised the Board that business agenda Item E was skipped.  It was decided to continue with Item F and return to Item E.

                        It was noted by Judge Gribbs for the record that a notice was sent to Unlimited Security advising that its application would be considered at tonight’s meeting.  Judge Gribbs further noted for the record that there were no representatives from Unlimited Security Services, L.L.C., present at tonight's meeting.  Chairman Gribbs next asked Board representative, Mr. McMakin, to briefly summarize the reasons for staff's recommendation for denial.

                        Upon completion of Mr. McMakin's explanation and there being no questions from the Board, it was moved by Mr. Garberding and seconded by Judge Stacey, that a roll call vote be taken on the motion that the Board deny the supplier license application of Unlimited Security Services, L.L.C., for the reasons stated in the written recommendation of the Executive Director and the Board's Licensing Division staff. 

      Chairman Gribbs:      Aye

      Rich Davis:      Aye

      Larry Garberding:      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 Gold Star Equipment, Inc., doing business as Gold Star Products, Board File No. SL0146-02-001.

                              Judge Gribbs noted for the record that there were no representatives from Gold Star Equipment in attendance at tonight’s meeting.

                              It was moved by Judge Stacey and seconded by Mr. Garberding that the Board enter an order finding and concluding that Gold Star Equipment, Inc., d/b/a Gold Star Products, 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 Gold Star Equipment, Inc., 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

      Larry Garberding:      Aye

      Judge Stacey:      Aye

                        Motion carried.

                        Before proceeding with business agenda Item V, public comment, it was moved by Larry Garberding that the Board go into closed session immediately following the conclusion of tonight's public meeting for the purpose of consulting with the Board's attorney regarding pending litigation, because any discussion regarding such litigation in an open meeting at this time would have a detrimental financial effect on the litigating or settlement position of the Board in the litigation, and also for the purpose of receiving confidential notification from the Executive Director regarding the names of individuals placed on the Board's Disassociated Persons List since the Board's last public meeting.  Motion was seconded by Judge Stacey. 

                              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

      Mr. Davis:      Aye

      Larry Garberding:      Aye

      Judge Stacey:      Aye

Motion carried.

Proceeding to the public comment portion of the meeting, Chairman Gribbs invited Michael Wynn to address the Board.

Mr. Wynn advised the Board that he is a former Board employee and then proceeded to express his concerns regarding the integrity of the MGCB administration.   Mr. Wynn cited several examples that he felt indicated a lack of integrity by Board staff.

Upon completion of Mr. Wynn's comments and answers to a few questions posed by Judge Gribbs, Mr. Wynn was advised that his allegations are of major concern to the Board and would be investigated thoroughly.

                              There being no further public comment, the meeting was adjourned at 6:48 p.m.                                         

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