STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD
PUBLIC MEETING
Cadillac Place
3062 W. Grand Blvd., Suite L-700
Detroit, Michigan
TUESDAY, August 19, 2003
6:00 P.M.
MINUTES
On Tuesday, August 19, 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. Vicki Johnson
Ben McMakin
Business: The meeting was called to order at 6:07 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 May 13th and June 10th Board meetings and there being no comments, changes or corrections to the minutes, he requested a motion to approve the minutes from the May 13, 2003 and June 10, 2003 meetings.
It was moved and seconded that the minutes of the May 13, 2003 and June 10, 2003 meetings be approved. Motion carried.
Dan Gustafson next presented the Executive Director’s report. Mr. Gustafson announced the retirement of Nancy Horton, Deputy Director of Administration and the addition of Lelia Woods, Records Supervisor.
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 $10,939,889 from October 1, 2002 through July 31, 2003, leaving the unexpended balance of $5,690,311 in appropriated funding for the remainder of the fiscal year, which ends September 30, 2003.
The Executive Director advised the Board that the shut down of all three casinos as a result of the electric power outage on August 14th and 15th went smoothly and according to well-planned procedures. Mr. Gustafson ordered the reopening of the casinos at 8:00 a.m. on Saturday, August 16, 2003.
Mr. Gustafson next advised the Board that July was the fourth 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 July was up 7.98% compared to the same period last year.
Next Mr. Gustafson reported that the Court of Appeals of Michigan ruled in favor of the Board in the Papas/Gatzaros versus the MGCB case. Mr. Gustafson further congratulated Assistant Attorney General Jack Cahill, on his exemplary work on this case on behalf of the Board.
Upon completion of Mr. Gustafson’s report, and there being no questions, Judge Gribbs proceeded to recognize and honor Dt./F/Lt. Darwin Scott with a Board Resolution for his outstanding service and assistance to the Board.
It was moved by Mr. Davis and seconded by Judge Stacey to approve the Board Resolution. A voice roll call was taken. Motion carried.
The Board proceeded to consider the Licensing Division’s staff recommendations regarding 404 pending Level 1 and Level 2 occupational license applications. Staff recommended issuance of 388 license applications and denial of 16 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.
Chairman Gribbs proceeded to invite Ms. Latonya Taylor to address the Board regarding the denial of her license application.
Upon completion of Ms. Taylor’s comments and remarks from Mr. Eggan regarding the hearing process, 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 404 Level 1 and Level 2 occupational license applications as summarized in Exhibit 1, and 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 next agenda item was to consider the proposed declaratory ruling requested by Greektown Casino. It was noted for the record that Mr. Michael Atkins, legal counsel for Greektown Casino was present at the meeting.
After a brief discussion between Chairman Gribbs and Mr. Atkins, it was moved by Mr. Davis and seconded by Judge Stacey that the Board postpone issuing declaratory rulings requested by Greektown Casino in its October 22, 2002, correspondence to the Board, until the Board’s next public meeting on September 9, 2003. The following roll call 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 transfer of interest in supplier license applicant George Matteson Company, Inc., d/b/a Gemaco Playing Card Company from C. L. Fitzhugh to Danny R. Carpenter, D. Kaye Summers and Jason A. Fitzhugh. Board File No. SL000134-03-01.
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 Judge Stacey and seconded by Mr. Davis that the Board enter an order approving the proposed transfer of ownership interest in supplier license applicant George C. Matteson Company, Inc., d/b/a Gemaco Playing Card Company, from C. L. Fitzhugh to Danny R. Carpenter, D. Kaye Summers and Jason A. Fitzhugh, subject to final Board determination of the eligibility, qualifications and suitability for licensure of George C. Matteson Company, Inc., d/b/a Gemaco Playing card Company, and its associated qualifiers, and subject to the full compliance of George C. Matteson Company, Inc., with the requirements of the Act and Part 5 of the Administrative Rules of the Board, governing transfers and acquisitions of ownership in supplier license applicants and licensees. 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 ownership interest in supplier licensee A.C. Coin from Max Seelig to each of his three sons, Jerald Seelig, Jeffrey Seelig and Jason Seelig. Board File No. SL000243-03-001.
There being no questions for Mr. McMakin, it was moved by Mr. Davis and seconded by Judge Stacey that the Board enter an order approving the proposed transfer of ownership interest in supplier licensee A.C. Coin from Max Seelig to Jerald Seelig, Jeffrey Seelig and Jason Seelig respectively, 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 transfer of 100 percent interest in supplier licensee AGI Distribution, Inc. from Acres Gaming Incorporated to International Gaming Technology. Board File No. SL-000259-03-001.
There being no questions for Deputy Director McMakin, it was moved by Judge Stacey and seconded by Mr. Davis that the Board enter an order approving the proposed transfer of ownership interest in supplier licensee AGI Distribution, Inc., from Acres Gaming, Inc. to International Gaming Technology, subject to the full compliance of IGT and AGI Distribution, Inc., with the requirements of the Act and Part 5 of the Administrative Rules of the Board, governing transfers and acquisitions of ownership in supplier license applicants or licensees. 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 transfer of interest in supplier licensee United States Playing Card Company, from Bicycle Holding, Inc., Charles R. Zunk, Louis B. Eichhold, David W. Sommerkamp and Robert M. LeFevre to various stockholders of the United States Playing Card Company. Board File No. SL-000288-03-001.
It was moved by Mr. Davis and seconded by Judge Stacey that the Board enter an order approving the proposed transfer of ownership interest in supplier licensee The United States Playing Card Company from Bicycle Holding, Inc., Charles R. Zunk, Louis B. Eichhold, David W. Sommerkamp and Robert M. LeFevre to various stockholders of the United States Playing Card Company, subject to final Board determination of certain individuals’ eligibility for waiver of disclosure under the licensing standards and requirements of the Act and Rules of the Board, and the full compliance of the United States Playing Card Company and Bicycle Holding, Inc., with the requirements of the Act and Part 5 of the Administrative Rules of the Board, governing transfers and acquisitions of ownership in supplier license applicants and licensees. 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 transfer of 100 percent interest in supplier licensee LVC Technologies, Inc., from Paul G. Ferguson, individually and as trustee under the revocable trust agreement of Paul G. Ferguson, UAD 5-10-88, and James L. Ferguson, individually and as trustee under the revocable trust agreement of James L. Ferguson, UAD 7-22-87, to Adam L. Amon. Board File No. SL-001171-03-011.
Once again, Chairman Gribbs recognized Deputy Director McMakin’s presence and there being no questions from Board members, it was then moved by Judge Stacey and seconded by Mr. Davis that the Board enter an order approving the proposed transfer of ownership interest in supplier licensee LVC Technologies, Inc., from Paul G. Ferguson, individually and as trustee under the revocable trust agreement of Paul G. Ferguson, UAD 5-10-88, and James L. Ferguson, individually and as trustee under the revocable trust agreement of James L. Ferguson, UAD 7-22-87, to Adam L. Amon, pursuant to and in accordance with the written recommendation and related findings of the Board’s Licensing Division staff and all the applicable provisions of the Act and Rules of the Board. The following roll call vote was taken:
Chairman Gribbs: Aye
Mr. Davis: Aye
Judge Stacey: Aye
Motion carried.
The next agenda item is Board File No. SL001249-03-001, regarding the Executive Director’s Report and Licensing Division’s staff recommendation regarding the application for transfer of 3.2 percent interest in supplier licensee Konami Gaming, Inc., from Kozuki Foundation for Higher Education to Kozuki Foundation for Sports and Athletics.
After acknowledging Mr. McMakin’s presence for the record, it was moved by Mr. Davis and seconded by Judge Stacey that the Board enter an order approving the proposed transfer of ownership interest in supplier licensee Konami Gaming, Inc. from Kozuki Foundation for Higher Education to Kozuki Foundation for Sports and Athletes, 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 application of George R. Boyer, III as a key person and required qualifier of casino licensee MGM Grand Detroit, L.L.C.
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 George R. Boyer, III eligible and suitable as a required qualifier of casino licensee MGM Grand Detroit, L.L.C., under the licensing standards and requirements of the Act and the 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 the Licensing Division’s staff recommendation regarding eligibility and suitability of Roland A. Hernandez as a required qualifier and key person in MGM Grand Detroit, L.L.C.
Chairman Gribbs once again acknowledged Deputy Director McMakin’s presence and further noted that there were no representatives present for the applicant.
Mr. Davis moved and Judge Stacey seconded that the Board enter an order finding Roland A. Hernandez eligible and suitable as a required qualifier of casino licensee MGM Grand Detroit, L.L.C., under the licensing standards and requirements of the Act and Administrative 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 next agenda item to be considered was the Board’s June 10, 2003, decision to deny a non-gaming related supplier license to Enterprise Caps & Gowns, Inc., d/b/a Enterprise Uniforms II. Board File No. SL000458-03-002.
It was noted for the record that a notice was sent to Enterprise Caps & Gowns, Inc. advising that the Board would be considering their application at the meeting. It was further noted that Mr. Len Wolfe, legal counsel for the applicant and Mr. McMakin was present at the meeting.
After comments from Mr. McMakin and Mr. Wolfe, it was moved by Judge Stacey and seconded by Mr. Davis that the Board reconsider and vacate it’s June 10, 2003, decision to deny the supplier license application of Enterprise Caps and Gowns, Inc., d/b/a Enterprise Uniforms II. It was further moved that the Board enter an order finding and concluding that Enterprise Caps & Gowns, Inc., d/b/a Enterprise Uniforms II, 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 non-gaming related supplier application of Enterprise Caps & Gowns, 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 item for consideration was the request for adjournment for the supplier application of F.D. Stella Products Company.
Mr. Gustafson advised the Board that due to the electrical power outage, the applicant did not receive timely notice that its application was being presented to the Board.
Therefore, it was moved by Mr. Davis and seconded by Judge Stacey that the supplier application for F.D. Stella Products Company be adjourned until the next public meeting on September 9, 2003. A voice roll call was taken:
Chairman Gribbs: Aye
Mr. Davis: Aye
Judge Stacey: Aye
Motion carried.
The Board next considered the Executive Director’s and Licensing Division’s staff recommendation to deny the supplier license application of VJT Restaurants, Inc., d/b/a Cyprus Traverna. Board File No. SL001284-03-001.
Chairman Gribbs noted for the record the presence of Mr. Avgoustis at the meeting.
Upon completion of Mr. Avgoustis’ comments and remarks from Mr. Eggan regarding the hearing process, it was moved by Judge Stacey and seconded by Mr. Davis that the Board deny the supplier license application of VJT Restaurants, Inc., d/b/a Cyprus Traverna, for the reasons stated in the written 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 considered was the Executive Director’s and Licensing Division’s staff recommendation regarding the pending non-gaming supplier license application of 538274 Ontario Limited, d/b/a Canadian Bread Bakers. Board File No. SL001821-03-001.
Mr. McMakin’s presence was noted and it was further noted that there were no representatives for the applicant present at the meeting.
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 finding and concluding that 538274 Ontario Limited, d/b/a Canadian Bread Bakers, 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 non-gaming related supplier license application of 538274 Ontario Limited, 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 disciplinary action of Timothy John Krolczyk. Case No. DA-2002-02.
Judge Gribbs noted for the record that neither Mr. Krolczyk nor his counsel were present at the meeting.
A motion was made by Mr. Davis and supported by Judge Stacey that the Board enter a final decision and order in the matter of the disciplinary action of Timothy John Krolczyk, accepting, adopting and incorporating the hearing officer’s Proposal for Decision in the matter in its entirety and revoking the occupational license of Timothy John Krolczyk. 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 proposed public meeting schedule for the fiscal year 2003-2004. All Board members were given a copy of the proposed meeting schedule prior to the meeting.
There being no discussion regarding the proposed schedule, it was moved by Mr. Davis and seconded by Judge Stacey that the Board adopt and post the proposed schedule of its regular public meetings for the new fiscal year beginning October 1st, 2003, in accordance with the Open Meetings Act. All meetings will start at 6:00 p.m., Tuesday, October 14, 2003; no November 2003 meeting; Tuesday, December 9, 2003; no January 2004 meeting; February 10, 2004; March 9, 2004; April 13, 2004; May 11, 2004; June 8, 2004; no July 2004 meeting; August 10, 2004; September 14, 2004. 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 7:31 p.m.
______
Patricia S. James
Board Secretary
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