STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Albert Kahn Building

7430 Second Avenue, Suite 300

Detroit, Michigan

TUESDAY, May 14, 2002

6:00 P.M.

MINUTES

On Tuesday, May 14, 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

                                                Larry Garberding

                        Also attending were:

                                                Nelson Westrin

                                                Patty James

                                                Eric Eggan

Business:            The meeting was called to order at 6:15 p.m., by Board Chairman Roman Gribbs. Chairman Gribbs noted for the record that all Board members were present and copies of tonight’s agenda were available for the public at the receptionist’s desk.

                        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 April 9, 2002 meeting.

                        It was moved and seconded that the minutes of the April 9, 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 $7,156,090 from October 1, 2001 through April 30, 2002, leaving the unexpended balance of $9.7 million in appropriated funding for the remainder of the fiscal year, which ends September 30, 2002. 

                        With regards to staffing, Mr. Westrin reported that Gary Peterson, Greg Kilbourn and Tami Pullen have been hired as regulation officers in the Licensing Division. 

                        The Board staff now totals 89 with ongoing efforts to fill the remaining 18 authorized positions.

                        Mr. Westrin proceeded to advise the Board that for the fourth straight month in a row, the three casinos have once again produced greater adjusted revenues than they posted in the prior year.

                        Mr. Westrin next reported that the Board was represented by Assistant Attorney General, Eric Eggan, at the May 1st show cause hearing in regards to the Lac Vieux Desert Band of Chippewa Indian lawsuit against the City of Detroit.  Mr. Westrin further advised the Board that the Court gave all parties an additional 28 days to submit additional briefs to supplement any of the issues that were raised during the course of the hearing.

                        With regards to the development agreements between the City of Detroit and MGM Grand, Detroit Entertainment and Greektown Casino, Mr. Westrin reported that on April 24, 2002, the Detroit City Council extended the City’s current development agreements with the three casinos until June 15, 2002.  This extension will provide the City Council additional time to review the proposed amendments to the development agreements, which had been previously negotiated by the Mayor and the developers.

                        Mr. Westrin continued his report by advising the Board that the Licensing Division has completed its investigations for four supplier license applicants.  The applicants the Board would be considering at tonight's meeting are Mark Newburg, a key person/qualifier of gaming supplier licensee Aristocrat Technologies; Custom Beverage, Inc., a nongaming supplier license applicant; Atronic Americas, L.L.C., and BET Technology, Inc., both gaming related supplier applicants.

                        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 Inspector Dewayne P. Brantley has been promoted to the rank of captain and has been assigned to be the second district commander of the Michigan State Police Uniform Services Bureau.  Mr. Westrin continued by expounding upon Captain Brantley’s leadership, integrity, diligence and dedication as Commander of the State Policy Gaming Section for the past 5 ½ years.  Mr. Westrin then extended to Captain Brantley the Board and its staff’s sincere congratulations and best wishes on his well deserved promotion.

                        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 to consider a proposed resolution to honor Captain Brantley for his leadership and service to the Board. 

                        Upon conclusion of Mr. Davis’ and Mr. Eggan’s tributes to Captain Brantley, it was moved by Mr. Davis and seconded by Judge Ford that the Board adopt Board Resolution No. 2002-03, recognizing and honoring Captain Dewayne Brantley for his outstanding service and assistance to the Board over the past 5 1/2 years as commander of the Michigan State Police Gaming Section and congratulating him on his well deserved promotion.  A voice vote was taken in favor of passing the motion. 

                        Motion carried.

                        At this time, Judge Gribbs introduced Captain Brantley and presented him with the resolution.

                        Upon conclusion of Captain Brantley’s comments, the Board next considered the Licensing Division’s staff recommendations regarding 372 pending occupational license applications. 

                        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 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 recommendations regarding the 372 Level 1 and 2 occupational license applications 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

      Mr. Davis:      Aye

      Judge Ford:      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 application for approval of a transfer of a hundred percent ownership interest in Casino Marketplace Development Corporation from William H. Watson to Bally Gaming, Inc., Board File No. TR0003-02-001.

                        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 transfer and acquisition and the Licensing Division’s related report and recommendation. 

                        The Board having no questions, it was moved by Mr. Garberding, and seconded by Judge Ford, that the Board enter an order approving the transfer of 100 percent ownership interest in Casino Marketplace Development Corporation from William H. Watson to Bally Gaming, Inc., a fully owned subsidiary of Alliance Gaming Corporation. 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 Board next considered the report of the Executive Director and Licensing Division’s staff recommendation regarding the application of Mark Newburg as a new key person and required qualifier of supplier licensee, Aristocrat Technologies, Inc.

Once again, Chairman Gribbs noted for the record that Deputy Director McMakin was present to answer any questions the Board may have regarding the eligibility and suitability of Mr. Newburg.  Judge Gribbs further noted that neither Mr. Newburg nor representatives for Aristocrat Technologies, Inc. were present at tonight’s meeting.

It was moved by Mr. Davis, and seconded by Judge Ford that the Board enter an order finding Mark Newburg eligible and suitable as a required qualifier, key person of supplier licensee, Aristocrat Technologies, Inc., under the licensing standards and requirements of the Act and Board Rules, 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 nongaming-related supplier license application of Custom Beverage, Incorporated, Board File No. SL0159-02-001.

Chairman Gribbs noted for the record that a written notice was sent to Custom Beverage, Inc. advising that the Board would consider its supplier license application at tonight’s meeting, and it was further noted that there were no representatives for Custom Beverage, Inc. present.

Judge Stacey moved, and Judge Ford seconded, that the Board enter an order finding and concluding that Custom Beverage, Incorporated 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 a nongaming-related supplier license application of Custom Beverage, Incorporated, 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 Board next considered the Executive Director’s Report and Licensing Division’s staff recommendation regarding the pending supplier license application of Atronic Americas, L.L.C., Board File No. SL0284-02-001.

Judge Gribbs once again acknowledged Mr. McMakin’s presence and further noted there were no representatives of Atronic Americas, L.L.C. present at tonight’s meeting.

Judge Ford moved, and Judge Stacey seconded the motion that the Board enter an order finding and concluding that Atronic Americas, L.L.C., and its qualifiers are eligible and suitable for licensure 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 gaming-related supplier license application of Atronic Americas, L.L.C., based upon a 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 the Licensing Division’s staff recommendation regarding the pending supplier license application of BET Technology, Inc., Board File No. SL1121-01-001.

Judge Gribbs noted for the record that there were no representatives for BET Technology, Inc. present at tonight’s meeting.  Judge Gribbs further noted that there were no questions from Board members for Deputy Director McMakin.

It was moved by Mr. Garberding, and seconded by Mr. Davis, that the Board enter an order finding and concluding that BET Technology, Inc., and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act, and Board Rules, and accordingly, granting the gaming-related supplier license application of BET Technology, 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 Board next considered the parties’ stipulation to rescind the Board’s prior denial and grant James B. Dalton’s application for an occupational license, Board File No. OLH-2001-11.

It was noted for the record that Board representative Assistant Attorney General, Bethany Scheib and Mr. Dalton were present at tonight’s meeting.

Upon conclusion of Ms. Scheib’s summary of this case and the parties’ stipulation; and there being no comments from Mr. Dalton, it was moved by Mr. Davis, and seconded by Judge Ford that the Board enter an order, first rescinding, vacating, and setting aside the Board’s previous order that denied James B. Dalton’s occupational license application in this matter; and secondly, ordering that Mr. Dalton’s application now be granted, and that he be issued the Level 2 occupational license for which he applied.  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 next item of business was to consider the Proposal for Decision in the Matter of the Denial of Aundray Lamar Gray’s Application for an Occupational License, Board No. OLH-2001-14. 

It was noted for the record that the Board representative, Assistant Attorney General, Bethany Scheib was present to answer any questions the Board may have on the three Proposals for Decision that would be presented at tonight’s meeting.  It was further noted that neither Mr. Gray nor his representatives were present at tonight’s meeting.

It was moved by Judge Stacey, and seconded by Judge Ford, that the Board enter a final decision and order in the matter of Aundray Lamar Gray’s application for an occupational license, Case No. OLH-2001-14, accepting, adopting, and incorporating the Hearing Officer’s Proposal for Decision in the matter in its entirety, and denying the occupational license for which Aundray Lamar Gray made application.  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 next Proposal for Decision considered by the Board was in the Matter of the Denial of Tonja Michelle Gray’s Application for an Occupational License.

Judge Gribbs noted for the record that neither the applicant nor her counsel were present at tonight’s meeting.

Judge Ford moved, and Judge Stacey seconded the motion that the Board enter a final decision and order in the matter of Tonja Michelle Gray’s application for an occupational license, Case No. OLH-2001-18, accepting, adopting, and incorporating the Hearing Officer’s Proposal for Decision in the matter in its entirety, and denying the occupational license for which Tonja Michelle Gray made application.  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 Proposal for Decision in the Matter of the Denial of William Clyde Bunting’s Application for an Occupational License, Board File No. OLH-2001-25.

Judge Gribbs noted for the record that neither Mr. Bunting, nor his representative, were present at tonight’s meeting.

It was moved by Mr. Garberding, and seconded by Judge Stacey, that the Board enter a final decision and order in the matter of William Clyde Bunting’s application for an occupational license, Case No. OLH-2001-25, accepting, adopting, and incorporating the Hearing Officer’s Proposal for Decision in the matter in its entirety, and denying the occupational license for which William Clyde Bunting made application. 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.

Next, it was moved by Mr. Davis, and seconded by Judge Stacey, that the Board go into closed session immediately following the conclusion of tonight’s public meeting 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 as required by the Act.  The following roll call vote was taken:

            Judge Gribbs:            Aye

            Mr. Davis:            Aye

            Judge Ford:            Aye

            Mr. 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 expressed concern about the Board’s inadequate investigation into his allegations regarding Board employees and the integrity of the MGCB administration.   Judge Gribbs informed Mr. Wynn that until he agreed to be interviewed by the Board’s investigative team and provide the investigators with more details regarding his allegations, the investigation could not be completed or an opinion rendered concerning the merits of his allegations.  Mr. Wynn advised the Board that he was going to talk with an attorney before being interviewed as part of the Board’s investigation of his complaints.  Mr. Westrin advised the Board of his unsuccessful efforts to date to schedule and conduct an interview of Mr. Wynn regarding his allegations.  Mr. Westrin also pointed out that Board staff had, in fact, investigated several prior complaints by Mr. Wynn, and that he had reviewed the results of those investigations, as part of his investigation of Mr. Wynn’s current allegations.

                        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 7:30 p.m.

                              ______

                                Patricia S. James

                                Board Secretary