STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD
PUBLIC MEETING
Cadillac Place
3062 W. Grand Blvd., Suite L-700
Detroit, Michigan
TUESDAY, June 10, 2003
6:00 P.M.
MINUTES
On Tuesday, June 10, 2003, 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 Michael Stacey
Also attending were:
Daniel Gustafson
Patty James
Eric Eggan
D/F/Lt. Darwin Scott
Ben McMakin
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 in attendance. Chairman Gribbs further advised that 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, however, Judge Gribbs requested clarification on a few issues and requested that approval for the May 13th meeting minutes be deferred until the next regular meeting. No objections were made.
Dan Gustafson next presented the Executive Director’s report. Mr. Gustafson announced the transfer of D/F/Lt. Darwin Scott to the Downriver Area Narcotic Organization. He further advised a formal tribute for Lt. Scott would be presented at the next regular meeting.
With regards to staffing, Mr. Gustafson advised the Board that there have been no additional Board employees hired since the last Board meeting and the MGCB staff total remained at 89.
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 $7,662,553 from October 1, 2002 through May 31, 2003, leaving the unexpended balance of $8,967,647 in appropriated funding for the remainder of the fiscal year, which ends September 30, 2003.
Mr. Gustafson next advised the Board that May was the second month for calendar year 2003 that the aggregate casino revenues for all three Detroit casinos exceeded the revenues generated for the same month in year 2002. The aggregate revenue and taxes for all three Detroit casinos for May was up 7.91% compared to the same period last year.
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.
Mr. Gustafson also reported that the Licensing Division has completed the required background investigations on 288 pending Level 1 and Level 2 occupational license applications, which the Board would be considering during the business portion of the meeting. Mr. Gustafson further reported that the Licensing Division has completed its investigations on 28 occupational license renewal requests, which he has approved pursuant to Board Resolution #2002-02.
Upon completion of Mr. Gustafson’s report, and there being no questions, Judge Gribbs proceeded to the first item on the business agenda.
The Board proceeded to consider the Licensing Division’s staff recommendations regarding 288 pending Level 1 and Level 2 occupational license applications. Staff recommended issuance of 284 license applications and denial of 4 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 concerning 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 288 Level 1 and Level 2 occupational license applications as summarized in Exhibit 1, and also directing that the Executive Director issue occupational licenses or notices 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 Stacey: Aye
Motion carried.
The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the transfer of 9.6 percent interest in supplier license WMS Gaming, Inc., from Sumner Redstone to Phyllis Redstone, Board File No. SL000037-03-002.
Once again, Chairman Gribbs recognized Deputy Director McMakin’s presence to answer any questions the Board members may have.
There being no questions from the Board members, it was moved by Mr. Davis and seconded by Judge Stacey that the Board enter an order approving the proposed transfer of 9.6 percent ownership interest in WMS Gaming, Inc., from Sumner M. Redstone to Phyllis G. Redstone subject to final Board determination of the eligibility, qualifications and suitability for licensure of Phyllis M. Redstone under the supplier licensing requirements of the Act and the Rules of the Board. The following roll call vote was taken:
Chairman Gribbs: Aye
Mr. Davis: Aye
Judge Stacey: Aye
Motion carried.
Next agenda item for consideration was the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the request to transfer 100 percent interest in supplier licensee John Huxley Casino Equipment, Limited, from Jeffrey Paul Lindsay Trust, Linda Gloria Lindsay Trust, Jeffrey Paul Lindsay, and Linda G. Lindsay to Victoria Holdings, Limited.
There being no questions for Mr. McMakin, it was moved by Judge Stacey and seconded by Mr. Davis that the Board enter an order approving the proposed transfer of 100 percent ownership interest in John Huxley Casino Equipment, Limited, from Jeffrey Paul Lindsay Trust, Linda Gloria Lindsay Trust, Jeffrey Paul Lindsay, and Linda G. Lindsay to Victoria Holdings, Limited, subject to final Board determination of the eligibility, qualifications and suitability of Victoria Holdings, Limited, and all required qualifiers under the supplier licensing requirements of the Act and the Administrative Rules of the Board and full compliance of Victoria Holdings, Limited, with the requirements of part 5 of the Administrative Rules of the Board. The following roll call vote was taken:
Chairman Gribbs: Aye
Mr. Davis: 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 eligibility and suitability of Phyllis G. Redstone as a required key person/qualifier of supplier licensee WMS Gaming, Inc.
There being no questions for Deputy Director McMakin, it was moved by Mr. Davis and seconded by Judge Stacey that the Board enter an order finding Phyllis G. Redstone eligible and suitable as a required qualifier of supplier licensee WMS Gaming, Inc., under the licensing standards and requirements of the Act and Rules of the Board 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:
Chairman Gribbs: Aye
Mr. Davis: Aye
Judge Stacey: Aye
Motion carried.
The Board next considered the Executive Director’s Report and Licensing Division’s staff recommendation that denies the supplier license application of Enterprise Caps & Gowns, Inc., d/b/a Enterprise Uniforms II, Board File No. SL000458-03-001.
For the record, Judge Gribbs acknowledged the attendance of Mr. Jason Hanselman, representative of Enterprise Caps & Gowns, Inc.
Upon completion of a brief commentary by both Mr. Hanselman and Mr. McMakin, and comments by Mr. Eric Eggan, it was moved by Judge Stacey and seconded by Mr. Davis that the Board enter an order denying the license of Enterprise Caps & Gowns, Inc., d/b/a Enterprise Uniforms II based on violations of 7(b) of the Michigan Gaming Control and Revenue Act. The following roll call vote was taken:
Chairman Gribbs: Aye
Mr. Davis: Aye
Judge Stacey: Aye
Motion carried.
The next agenda item up for consideration was the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending supplier license application of G.L.J. Bakery Distributors, L.L.C., Board File No. SL000523-03-001.
Once again, Chairman Gribbs recognized Deputy Director McMakin’s presence and also noted for the record that a written notice was sent to G.L.J. Bakery Distributors, L.L.C. advising that the Board would consider this application at the meeting. It was further noted that there were no representatives for G.L.J. Bakery Distributors, L.L.C. present at the meeting.
It was then moved by Mr. Davis and seconded by Judge Stacey that the Board enter an order finding and concluding that G.L.J. Bakery Distributors, L.L.C. and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board and accordingly granting the nongaming-related supplier license application of G.L.J. Bakery Distributors, L.L.C., 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:
Chairman Gribbs: Aye
Mr. Davis: 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 Mark’s Quality Meats, Inc., Board File No. SL000711-03-001.
Chairman Gribbs once again acknowledged Deputy Director McMakin’s presence and further noted that there were no representatives present for the applicant.
Therefore, it was moved by Judge Stacey and seconded by Mr. Davis that the Board enter an order finding and concluding that Mark’s Quality Meats, 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 the Administrative Rules and accordingly, granting the nongaming-related supplier license application of Mark’s Quality Meats, 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:
Chairman Gribbs: Aye
Mr. Davis: Aye
Judge Stacey: Aye
Motion carried.
The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending supplier license application of The Right Productions, Inc., Board File No. SL001310-03-001.
Judge Gribbs acknowledged the presence of Ben McMakin and Shahida Mahusi, president and owner of The Right Productions, Inc.
After Mr. McMakin advised the Board of a few corrections to the investigative report and brief comments by Ms. Mahusi, Mr. Davis moved and Judge Stacey seconded that the Board enter an order finding and concluding that The Right Productions, Inc., and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board and accordingly, granting the nongaming-related supplier license application of The Right 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:
Chairman Gribbs: Aye
Mr. Davis: Aye
Judge Stacey: Aye
Motion carried.
The next agenda item to be considered was the Proposal For Decision in the matter of the denial of Alvin Van Nelson’s application for an occupational license, Board File No. OLH-2002-02.
Judge Gribbs noted for the record that neither Mr. Nelson nor his counsel were present at the meeting.
Therefore, it was moved by Judge Stacey and seconded by Mr. Davis that the Board enter a final decision and order in the matter of the denial of Alvin Van Nelson’s application for an occupational license, Case No. OLH-2002-02 accepting, adopting and incorporating the hearing officer’s Proposal for Decision in the matter in its entirety and denying the occupational license for which Alvin Van Nelson made application. The following roll call vote was taken:
Chairman Gribbs: Aye
Mr. Davis: 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 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
Judge Stacey: Aye
Motion carried.
There being no questions or comments from the public, the meeting was adjourned by Judge Gribbs, at 6:58 p.m.
_________________
Patricia S. James
Board Secretary
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