STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

TUESDAY, December 10, 2002

6:00 P.M.

MINUTES

On Tuesday, December 10, 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

                                                Larry Garberding

                                                Judge Michael Stacey

                        Also attending were:

                                                Daniel Gustafson

                                                Patty James

                                                Eric Eggan

                                                D/F/Lt. Darwin Scott

Business:          The meeting was called to order at 6:06 p.m., by Board Chairman Roman Gribbs. Chairman Gribbs noted for the record that Judge Ford was not present.  Chairman Gribbs further advised that copies of tonight’s agenda were available for the public at the receptionist’s desk.

                        Chairman Gribbs began the meeting by introducing the Board’s honorary guests for the evening, former Executive Director Nelson W. Westrin and his wife, Carole.  Judge Gribbs next recognized the current Board members and Attorney General staff, who each paid tribute to Mr. Westrin’s outstanding service and leadership to the Board and the State of Michigan.

                        Mr. Westrin acknowledged the accolades with a few brief comments.  Upon completion of his comments, Mr. Westrin introduced MGCB’s newly appointed Executive Director, Daniel Gustafson.                       

                        After acknowledging Chairman Gribbs, Mr. Gustafson proceeded in presenting the Executive Director’s report.  With regards to staffing, Mr. Gustafson advised the Board that Robin Simpson has joined the MGCB staff as a secretary in the Detroit Office.  Mr. Gustafson further advised the Board that the MGCB was in the process of filling its 18 remaining approved vacant positions.

                        Mr. Gustafson proceeded to give an update regarding the Board’s budget.  Mr. Gustafson reported that the Board has incurred expenditures in the amount of $866,068 from October 1, 2002 through November 30, 2002, leaving the unexpended balance of $15,764,132 in appropriated funding for the remainder of the fiscal year, which ends September 30, 2003.  Mr. Gustafson also advised due to the transfer of the state services fee funds to the general fund and related appropriations to other state agencies, the Administration Division’s Budget and Procurement Section would continue to monitor the budget process to ensure that the Board receives sufficient funding for all necessary Board operations.

                        Mr. Gustafson next advised the Board that November was the second month in a row in calendar year 2002 in which the aggregate casino revenues for all three Detroit casinos did not exceed the revenues generated in the same month of 2001.  The aggregate revenue and taxes for all three casinos in November were down by 1.3%, compared to the same month last year.   However, through November, revenue and taxes for all three casinos were still up nearly 12% compared to the same period in 2001.

Mr. Gustafson 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.

                        Mr. Gustafson also reported that the Licensing Division has completed its investigations on 5 occupational license renewal requests, which he has approved pursuant to Board Resolution #2002-02, and 205 pending Level 2 occupational license applications which the Board would be considering during the business portion of the meeting.

                        Upon conclusion of Mr. Gustafson’s report, Judge Gribbs proceeded to the first item on the business agenda.

                        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 November 19, 2002 meeting.

                        It was moved and seconded that the minutes of the November 19, 2002 meeting be approved.  Motion carried.                       

The Board proceeded to consider the Licensing Division’s staff recommendations regarding 205 pending Level 2 occupational license applications. Staff recommended issuance of all 205 license applications for reasons specified in the related background investigative reports and Exhibit 1.

Chairman Gribbs advised the Board that Ben McMakin, Deputy Director of Licensing, 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 Stacey and seconded by Mr. Davis that the Board enter an order accepting and adopting the Licensing Division’s staff recommendations regarding the 205 Level 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

      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 Kilmartin Industries, Inc., d/b/a, Roger Williams Mint, Board File No. SL000107-02-001.

Judge Gribbs once again acknowledged Mr. McMakin’s presence and requested Mr. McMakin give a brief background summary of this application. 

Upon completion of Mr. McMakin’s report and the Board having no questions for Mr. McMakin, it was moved by Mr. Garberding and seconded by Mr. Davis that the Board accept the withdrawal of the supplier license application of Kilmartin Industries, Inc., d/b/a Roger Williams Mint, with the special conditions as outlined by Mr. McMakin.  The following roll call vote was taken on the motion:

            Judge Gribbs:            Aye

            Mr. Davis:            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 legal advice and counsel from the Board’s attorney regarding pending Board litigation, and 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

            Mr. Garberding:            Aye

            Judge Stacey:            Aye

Motion carried.

There being no other questions or comments from the public, the meeting was adjourned by Judge Gribbs, at 6:55 p.m.

                                 ______

                                Patricia S. James

                                Board Secretary