STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

TUESDAY, September 17, 2002

6:00 P.M.

MINUTES

On Tuesday, September 17, 2002, the Michigan Gaming Control Board held a public meeting at the Board office in the Cadillac Place, 3062 W. Grand Blvd, Suite L-700, Detroit, Michigan.

Present:            In attendance were the following Board members:

                        Judge Roman S. Gribbs, Chairman

                        Rich Davis

                        Judge Geraldine Bledsoe Ford

                        Larry Garberding

                       Judge Michael Stacey

            Also attending were:

                        Nelson Westrin

                        Patty James

                        Eric Eggan

                        D/Lt. Harvie Jarriell

                        Nick Alagna

                        Carol Flores

Business:            The meeting was called to order at 6:00 p.m., by Board Chairman Roman Gribbs.  Chairman Gribbs noted for the record that all Board members were present for tonight’s meeting.  Chairman Gribbs further advised that copies of the 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 August 13, 2002 meeting.

            It was moved and seconded that the minutes of the August 13, 2002 meeting be approved.  Motion carried.

            Nelson Westrin next presented the Executive Director’s report.  With regards to staffing, Mr. Westrin reported that Brian McCafferty has been hired as the Manager of the Compliance Section of the Enforcement Division.  Mr. Westrin further advised the Board that the MGCB staff now total 92 and that the Board was in the process of filling its remaining 15 approved vacant positions.

            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 $12,127,778 from October 1, 2001 through August 31, 2002, leaving the unexpended balance of $4,760,922 in appropriated funding for the remainder of the fiscal year, which ends September 30, 2002.  Mr. Westrin further advised the Board that for fiscal year 2003, commencing October 1, 2002 and ending September 30, 2003, the legislature has appropriated $16,630,200 for Board operations, which includes funds for reimbursemen t to the Department of Attorney General and Michigan State Police.

            Mr. Westrin next advised the Board that for the eighth straight month in a row, the three casinos have once again produced greater adjusted revenues than they posted for the same months in the prior year.  Mr. Westrin further advised that through August 31, 2002, all three casinos have generated an aggregate total of $761.5 million in adjusted gross revenues, which is an 18 percent increase over the same period last year.

            With regards to the Lac Vieux Desert Band of Lake Superior Chippewa Indians’ appeal requesting that the City of Detroit be ordered to re-bid its three casino developments, the Sixth Circuit Court of Appeals issued a temporary injunction on September 13, 2002, prohibiting the City of Detroit from issuing any building permits for construction of the three permanent casino-hotel complexes, pending the Court’s final ruling on the merits of the tribe's appeal.

            Mr. Westrin continued his report by advising the Board that the Licensing Division has completed its investigations on a number of supplier license applicants and certain key persons and qualifiers for each of the three Detroit casino licensees, which the Board would be considering during the business portion of the meeting.

                        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 announced the resignation and retirement of Tom Nelson, Deputy Director of the Enforcement Division, effective September 30, 2002.  Mr. Westrin continued by expounding upon Mr. Nelson’s accomplishments and contributions to the Board during his five-year tenure with the MGCB.

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

            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 Board proceeded to consider the Licensing Division’s staff recommendations regarding 185 pending Level 1 and 2 occupational license applications. Staff recommended issuance of 184 license applications and denial of 1 license application for reasons specified in the related background investigative reports and Exhibit 1.

                        Chairman Gribbs advised the Board that Nick Alagna, Manager of the Employee Licensing Section, was present to answer any questions the Board members might have regarding the Licensing Division’s staff recommendations regarding the pending occupatio nal license 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 185 Level 1 and 2 occupational license applications as summarized in Exhibit 1, and also directing that the Executive Director issue occupational licenses or a notice of denial 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 next order of business was to consider the report of the Executive Director and Licensing Division’s staff recommendation regarding the application of Alexis Herman as a required key person and qualifier of casino licensee MGM Grand Detroit, L.L.C., Board File No. MGM-2002-004.

Chairman Gribbs noted for the record that Carol Flores, Manager of Casino & Service Industry Section, was present to answer any questions the Board may have regarding the eligibility and suitability of Ms. Herman.  Judge Gribbs further noted that neither Ms. Herman nor a representative from MGM Grand Detroit, L.L.C. were present at the meeting.

It was moved by Judge Ford and seconded by Judge Stacey that the Board enter an order finding Alexis Herman eligible and suitable as a key person and required qualifier of casino licensee, MGM Grand Detroit, L.L.C., 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 the Licensing Division’s staff recommendation regarding the pending gaming-related supplier license application of John Huxley, (Casino Equipment), Ltd., Board File No. SL0330-02-001.

Judge Gribbs once again acknowledged Carol Flores’ presence and further noted that there were no representatives from John Huxley, Ltd., present at the meeting.

Therefore, it was moved by Mr. Garberding and seconded by Mr. Davis that the Board enter an order finding and concluding that John Huxley, (Casino Equipment), Ltd. 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 John Huxley, (Casino Equipment), Ltd., 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 nongaming-related supplier license application of A.A.N. d/b/a Telecheck Michigan, Inc., Board File No. SL0438-02-001.

Judge Gribbs noted for the record that Mr. Arthur Nitzche, President and CEO, and Amy Brandt, Administrative Manager, of A.A.N. were present at the meeting.  Judge Gribbs further noted that there were no questions from Board members for Carol Flores, Manager of the Casino & Services.

Mr. Davis moved and Judge Ford seconded that the Board enter an order finding and concluding that A.A.N. d/b/a Telecheck Michigan, Inc. 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 nongaming-related supplier license application of A.A.N., d/b/a Telecheck Michigan, 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 Executive Director’s Report and Licensing Division’s staff recommendation regarding the pending nongaming-related supplier license application of D.B.T. Promotional Marketing Group, Inc., Board File No. SL0568-02-001.

Once again, Judge Gribbs noted for the record the presence of Carol Flores, and further acknowledged the presence of Mr. Anthony Zainea, President of D.B.T. Promotional Marketing Group, Inc., at the meeting.  Judge Gribbs further noted that there were no questions from Board members for Ms. Flores or Mr. Zainea.

Judge Stacey moved and Mr. Garberding seconded the motion that the Board enter an order finding and concluding that D.B.T. Promotional Marketing Group, Inc., 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 nongaming-related supplier license applic ation of D.B.T. Promotional Marketing Group, 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.

Chairman Gribbs noted for the record that the business item entitled “In the Matter of Denial of Ambrose Cosey’s Application for Occupational License” has been stricken from the agenda and adjourned.

The next item for the Board’s consideration was the Revised Proposal For Decision in the matter of the denial of James Arnell Cannon’s application for an occupational license, Case No. OLH-2001-16.

Chairman Gribbs noted for the record that Assistant Attorney General, Jack Cahill, was present as the Board’s representative.  Judge Gribbs further noted that neither Mr. Cannon nor his representative were present at the meeting.

The Board having no questions, it was moved by Judge Ford and seconded by Judge Stacey that the Board enter a final decision and order in the matter of the denial of James Arnell Cannon’s application for an occupational license, Case Number OLH-2001-16, accepting, adopting, and incorporating the Executive Director’s Revised Proposal For Decision in this matter in its entirety, and denying the occupational license for which James Arnell Cannon made application, because of his failure to demonstrate his suitability for licensure under the licensing standards of the Act, and Board Rules, by clear and convincing evidence, and the other reasons stated in the Revised Proposal for Decision.  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 to consider was the Proposal for Decision in the matter of Daniel Scott Jenuwine’s application for an occupational license, Case No. OLH-2001-24.

Chairman Gribbs requested that Mr. Cahill, Assistant Attorney General, Mr. Jenuwine and Mr. Jenuwine’s counsel, Brian Morley, identify themselves for the record.

Upon conclusion of Mr. Morley’s and Mr. Cahill’s comments, and questions from the Board members, it was moved by Mr. Garberding and seconded by Mr. Davis that the Board reject the hearing officer’s Proposal For Decision, and enter an order remanding this matter to the Executive Director to prepare a Revised Proposal For Decision containing findings of fact and conclusions of law consistent with the hearing record and the staff’s written objections to the hearing officer’s Proposal for Decision, and recommending denial of Mr. Jenuwine’s license application in this matter because of his failure to demonstrate his suitability for licensure under the licensing standards and requirements of the Act and Board Rules, by clear and convincing evidence. The following roll call vote was taken:

            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 Mr. Garberding, that the Board go into closed session immediately following the conclusion of the 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 and to discuss pending Board litigation with the Board’s attorneys.  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 acknowledged Mr. Michael Wynn’s presence and request to address the Board.  Judge Gribbs also acknowledged Mr. Wynn’s lawsuit against the Board and advised Mr. Wynn that any discussion regarding his lawsuit would be dealt with by the Board’s attorney in an appropriate forum.

            After Mr. Wynn’s comments and there being no further Board or public comment, it was moved by Mr. Garberding and seconded by Mr. Davis that the meeting be adjourned.  Motion carried and the meeting was adjourned at 7:44 p.m.

              Patricia S. James

              Board Secretary