STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Albert Kahn Building

7430 Second Avenue, Suite 300

Detroit, Michigan

TUESDAY, April 9, 2002

6:30 P.M.

MINUTES

On Tuesday, April 9, 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

                                                Judge Geraldine Bledsoe Ford

                                                Rich Davis

                                                Larry Garberding

                        Also attending were:

                                                Nelson Westrin

                                                Patty James

                                                Eric Eggan

                                                Ben McMakin

                                                Thomas G. Denomme

                                                Barbara Denomme

Business:            The meeting was called to order at 6:04 p.m., by Board Chairman Roman Gribbs. Chairman Gribbs noted that all Board members were present. 

                        Chairman Gribbs began the meeting by introducing the Board’s honorary guests for the evening, former Chairperson, Mr. Thomas Denomme and his wife, Barbara.  Judge Gribbs proceeded to highlight a few of the major events that occurred under Mr. Denomme’s Board leadership from December 20, 1996 through February 6, 2002. 

Upon completion of Judge Gribbs comments, Board members, Judge Stacey, Judge Ford and Rich Davis each paid tribute to Mr. Denomme’s outstanding service and leadership to the Board and the State of Michigan.

It was moved by Judge Ford, and seconded by Judge Stacey to adopt Board Resolution 2002-01 to acknowledge the contributions and accomplishments of former Board Chairman Thomas G. Denomme, and commend him for his service to the Michigan Gaming Control Board, to the people of the State of Michigan, and the casino industry in the City of Detroit.  The following roll call vote was taken:

            Chairman Gribbs:            Aye

            Judge Ford:            Aye

            Judge Stacey:            Aye

            Rich Davis:            Aye

            Larry Garberding:            Aye

Motion carried.

Chairman Gribbs then proceeded to present the Board’s Resolution, House of Representatives Resolution 376, Senate Resolution 191 and Governor Engler’s Certificate of Special Tribute to Mr. Denomme.  After the presentation of the special accolades to Mr. Denomme, Chairman Gribbs presented an engraved gavel to Mr. Denomme as a memento of the Board’s appreciation.

Upon conclusion of Mr. Denomme’s and Mr. Westrin’s comments concerning Mr. Denomme's service on the Board, the Board adjourned for 10 minutes.

Meeting reconvened at 6:30 p.m.

                        Chairman Gribbs stated that the Board members 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 March 12, 2002 meeting.

                        It was moved and seconded that the minutes of the March 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 $5,838,527 from October 1, 2001 through March 31, 2002, leaving the unexpended balance of $11,050,173 in appropriated funding for the remainder of the fiscal year, which ends September 30, 2002. 

                        With regards to staffing, Mr. Westrin reported there had been significant progress toward filling the remaining 21 authorized positions.  Mr. Westrin further reported that the final selection has not occurred for the three vacant regulation officer positions in the Licensing Division and a fourth position in the Indian Gaming Section.  Mr. Westrin expected the hiring process for these positions to be completed within the next month.

                        Mr. Westrin also advised the Board that Andrea Sanchez had been hired as a budget analyst in the Administration Division.  However, the Board’s staff total still remains at 86, as a result of the voluntary resignation of Sharise Johnson from the Board's Records Section.

                        Mr. Westrin next proceeded to advise the Board that on March 21, 2002, District Judge Bell issued an order in the pending Lac Vieux Desert case against the City of Detroit, to show cause on May 1, 2002, as to why the court should not grant the tribe’s motion for further relief and enter an order declaring the current casino development agreements and casino licenses to be unlawful and void, pursuant to the United States Sixth Circuit Court Opinion in January, 2002.  Although the Board is no longer a party to the lawsuit, Judge Bell has granted the Board’s request to respond to the tribe’s motion and to participate in the scheduled hearing on May 1st  as an amicus curiae.

                        Another notable event Mr. Westrin included in his report to the Board occurred on March 29, 2002, when the City of Detroit approved the request of Mayor Kilpatrick and the three current casino licensees to extend the licensees’ current development agreements for an additional 30 days through April 30, 2002. 

                        Mr. Westrin continued his report by advising the Board that the Licensing Division has completed its investigations for three supplier license applicants, Del Bene Produce, Inc., Jack Grenier Productions, Inc., and LVC Technologies, Inc., and that the Board would be considering the Licensing Division’s recommendations regarding the three supplier applications as part of the meeting's 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.

                        In conclusion, Mr. Westrin reported that an internal investigation has been initiated regarding the allegations by former employee, Michael Wynn, relative to the integrity of the Board and its staff.

                        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 on the business agenda.

                        The first business item addressed by Chairman Gribbs, was the revision of the Board’s subcommittees.  Judge Gribbs received consent and agreement that he would serve on the Administration and Operation Subcommittee with Rich Davis; Larry Garberding and Judge Stacey would serve on the Licensing and Compliance Subcommittee; and he and Judge Ford would serve on the Legislative and Administrative Rules Subcommittee.

                        The Board next considered the Licensing Division’s staff recommendations regarding 407 pending occupational license applications and 4 pending occupational license renewal requests.  The staff recommended approval of 410 license applications and renewal requests, and denial of 1 license application.

                        Chairman Gribbs advised the Board that Deputy Director of Licensing, Ben McMakin, was present 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 Mr. Davis and seconded by Judge Ford that the Board enter an order accepting and adopting the Licensing Division’s staff recommendations regarding the 407 Level 1 and  2 occupational license applications and 4 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

      Judge Ford:      Aye

      Larry 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 nongaming-related supplier license application of Del Bene Produce, Inc., Board File No. SL0620-02-001.

                        It was noted for the record that Deputy Director of Licensing, Ben McMakin was present to answer any questions the Board members might have regarding the Licensing Division’s staff recommendations regarding the pending supplier license applications of Del Bene Produce, Inc., Jack Grenier Productions, Inc., and LVC Technologies, Inc.  Chairman Gribbs further noted that all applicants were provided with a written notice that their applications would be considered at tonight’s meeting.

                        Chairman Gribbs next requested that any representatives for Del Bene Produce, Inc. present at tonight’s meeting, please introduce themselves to the Board.  It was noted for the record that no representatives for Del Bene Produce, Inc. were present.

                        The Board having no questions, it was moved by Mr. Garberding, and seconded by Judge Stacey, that the Board enter an order finding and concluding the Del Bene Produce, Inc. and its qualifiers, are eligible and suitable for licensure under the licensing standards and requirements of the Act and the Administrative Rules of the Board, and accordingly granting the nongaming-related supplier license application of Del Bene Produce, Inc., based upon the background investigation report and recommendation of the Executive Director and the Board’s Licensing Division staff.  The following roll call vote was taken:

            Judge Gribbs:            Aye

            Mr. Davis:            Aye

            Judge Ford:            Aye

            Mr. Garberding:            Aye

            Judge Stacey:            Aye

Motion carried.

The Board next considered the report of the Executive Director and Licensing Division’s staff recommendation regarding the pending nongaming-related supplier license application of Jack Grenier Productions, Inc., Board File No. SL0784-02-001. 

Chairman Gribbs noted for the record that there were no representatives for Jack Grenier Productions, Inc. present at tonight’s meeting.

It was moved by Judge Ford, and seconded by Judge Stacey that the Board enter an order finding and concluding that Jack Grenier Productions, Inc. and its qualifiers, are eligible and suitable for licensure under the licensing standards and requirements of the Act, and the Administrative Rules of the Board, and accordingly granting the nongaming-related supplier license application of Jack Grenier Productions, Inc., based upon the background investigation report and recommendation of the Executive Director and the Board’s Licensing Division staff.  The following roll call vote was taken on the motion:

            Judge Gribbs:            Aye

            Mr. Davis:            Aye

            Judge Ford:            Aye

            Mr. Garberding:            Aye

            Judge Stacey:            Aye

Motion carried.

The next order of business was to consider the Executive Director’s report and Licensing Division’s staff recommendation regarding the pending gaming-related supplier license application of LVC Technologies, Inc., Board File No. SL1171-02-001.

Chairman Gribbs noted for the record that there were no representatives for LVC Technologies, Inc. present at tonight’s meeting.

Upon motion by Judge Stacey, and seconded by Judge Ford, a roll call vote was taken on the motion that the Board enter an order finding and concluding that LVC Technologies, Inc. and its qualifiers, are eligible and suitable for licensure under the licensing standards and requirements of the Act and Administrative Rules of the Board, and accordingly granting the gaming related supplier license application of LVC Technologies, Inc., based upon the background investigation report and recommendation of the Executive Director and the Board’s Licensing Division staff.

            Judge Gribbs:            Aye

            Mr. Davis:            Aye

            Judge Ford:            Aye

            Mr. Garberding:            Aye

            Judge Stacey:            Aye

Motion carried.

Due to the Licensing Division’s expectation of a large volume of occupational license renewal requests, the Board next considered the proposed Board Resolution delegating authority to the Executive Director to approve or deny requests for occupational license renewal for and on behalf of the Board, pursuant to Board Administrative Rule Number 41, MR 432.1341.

Chairman Gribbs next requested Licensing Deputy Director, Ben McMakin to brief the Board on the contents of the Board Resolution.

Upon conclusion of Mr. McMakin’s explanation, questions from Board members, and brief comments from Mr. Westrin and Inspector Brantley, it was moved by Judge Ford, and seconded by Mr. Garberding that the Board adopt proposed Board Resolution No. 2002-02, delegating authority to the Executive Director to approve and deny requests for occupational license renewal for and on behalf of the Board, pursuant to Board Administrative Rule 341, MR 432.1341.  The following roll call vote was taken:

            Judge Gribbs:            Aye

            Mr. Davis:            Aye

            Judge Ford:            Aye

            Mr. Garberding:            Aye

            Judge Stacey:            Aye

Motion carried.

                        The Board next gave opportunity for public comment.  There being no further Board or public comment, it was moved by Judge Stacey and seconded by Judge Ford that the meeting be adjourned.  Motion carried and the meeting was adjourned at 7:08 p.m.

                              ______

                                Patricia S. James

                                Board Secretary