STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

TUESDAY, December 16, 2003

6:00 P.M.

MINUTES

On Tuesday, December 16, 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

                                                Damian Kassab

                                                Judge Michael Stacey

                        Also attending were:

                                                Daniel Gustafson

                                                Patty James

                                                Eric Eggan

                                                John Cahill

                                                Bethany Scheib

                                                D/F/Lt. Vickie Johnson

                                                Ben McMakin

                                                Tom Barker

                                                John Page

Business:     Board Chairman Roman Gribbs called the meeting to order at 6:10 p.m. Chairman Gribbs noted for the record that all Board members were 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 October 14th Board meeting and there being no comments, changes or corrections to the minutes, he requested a motion to approve the minutes from the October 14, 2003 meeting.

                        It was moved and seconded that the minutes of October 14, 2003 meeting be approved.  Motion carried.

                        Chairman Gribbs next presented a Board Resolution honoring former Board member Geraldine Bledsoe Ford.  It was moved by Mr. Davis and seconded by Judge Stacey to approve the Resolution.  Motion carried.  Chairman Gribbs continued by introducing Judge Ford’s daughter and granddaughter and presenting them with the Board Resolution. 

                        After a few brief comments by Ms. Deborah Watson and Alana Watson, Dan Gustafson presented the Executive Director’s report.  In regards to staffing Mr. Gustafson advised the Board that Mr. Thomas Barker was selected to replace Nancy Horton as Deputy Director of Administration.  Mr. Gustafson also reported the hiring of Mike McDonald as a regulation officer in the Enforcement Division and Julie Martin as a departmental tech in the Records Section.  Mr. Gustafson further advised the Board that the MGCB staff now total 90 with 12 authorized positions yet to be filled. 

                        Mr. Gustafson proceeded to give an update regarding the Board’s budget.  Mr. Gustafson reported that for the fiscal year 2004, from October 1, 2003 through November 30, 2003 the Board has incurred expenditures in the amount of $1,568,211, leaving the unexpended balance of $15,760,989 in appropriated funding for FY 2004. 

                        Mr. Gustafson next reported that all three casinos continue to operate on a seven-day, 24-hour basis, and that Board regulatory and audit staff regularly monitor casino operations and related casino wagering tax returns and revenue and expense records.

                        Mr. Gustafson next advised the Board that the aggregate casino revenues for all three Detroit casinos were up 4.28 percent for the month of November compared to the same month in year 2002.  The gaming taxes for the three Detroit casinos for November were 7.606 million compared to 7.310 million for 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, as well as the status of the issuance of temporary and permanent occupational licenses for the three casinos.

                        Upon conclusion of Mr. Gustafson’s report the Board considered the Licensing Division’s staff recommendations regarding 378 pending Level 1 and Level 2 occupational license applications.  Staff recommended issuance of 373 license applications and denial of 5 license applications for reasons specified in the related background investigative reports and Exhibit 1.

Chairman Gribbs advised the Board that Mr. 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.

There being no questions from the Board, 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 378 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

      Mr. Kassab:                Aye

      Judge Stacey:            Aye

                        Motion carried.

                        The Board next considered Board Resolution number 2003-07 that is intended to replace two existing Board Resolutions, numbers 1998-07 and 1998-09 and the Executive Order numbered 1998-01 to clarify requirements for supplier exemption/waivers as well as expand the number of vendor exemptions available.

                        Chairman Gribbs then asked Deputy Director McMakin to give a brief synopsis of the new resolution.

                        Upon completion of Mr. McMakin’s explanation, comments from Mr. Cahill and questions from Mr. Kassab, Judge Gribbs deferred a roll call until after the next agenda item.

                        Chairman Gribbs proceeded to introduce Cheryl Scott Dube, Associate General Counsel for Mandalay Resort Group and Mr. Michael Atkins, counsel for Greektown Casino. 

                        After completion of Ms. Dube’s and Mr. Atkin’s summary of the present status of the negotiations of settlement between MotorCity and Greektown Casinos and Lac Vieux Desert Band of Lake Superior Chippewa Indians, it was moved by Mr. Kassab and seconded by Mr. Davis that the Board adopt proposed resolution number 2003-07 regarding vendor exemptions and/or waivers from supplier licensing requirements pursuant to Rule 432.1322(4) and Rule 432.1223 and delegation of authority of Executive Director to grant vendor exemptions and waivers.  The following roll call vote was taken:

                                    Chairman Gribbs:            Aye

                                    Mr. Davis:                         Aye

                                    Mr. Kassab:                     Aye

                                    Judge Stacey:                  Aye

                        Motion carried.

                        The next agenda item was an informational summary from Mr. Michael Atkins, counsel for Greektown Casino regarding Board approval pursuant to Rule 509 to enter into a $40 million debt transaction and a presentation on Greektown Casino’s proposed financing structure for construction of a permanent casino.

                        Upon completion of Mr. Atkins’ summary and presentation, comments from Mr. Eggan and questions from Board members, Chairman Gribbs proceeded to the next agenda item. 

                        The Board next considered the Licensing Division’s staff recommendation of a proposed acknowledgement of violations for the Mikohn Gaming Corporation.

                        After a brief overview of the violations from Mr. McMakin and comments from Robert Stocker, counsel for the Mikohn Gaming Corporation it was moved by Judge Stacey and seconded by Mr. Davis to adjourn this matter and the renewal of the Mikohn Gaming Corporation’s supplier license until the next Board meeting.  A voice roll call was taken.

                        Motion carried.

                        The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending non-gaming related supplier license of Euclid Fish Company, Inc., d/b/a Euclid Fish Company, Board File No.  SL000521-03-001.

Chairman Gribbs noted for the record Deputy Director, Ben McMakin’s presence and further noted that there were no representatives from Euclid Fish Company, Inc. present at the meeting.

There being no questions from Board members, it was moved by Mr. Davis and seconded by Judge Stacey that the Board enter an order finding and concluding that Euclid Fish Company, Inc., d/b/a Euclid Fish Company 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 Euclid Fish Company, Inc., based upon the background investigation report and recommendations of the Executive Director and the Board’s Licensing Division staff.  The following roll call vote was taken:

      Chairman Gribbs:      Aye

      Mr. Davis:                    Aye

      Mr. Kassab:                Aye

      Judge Stacey:            Aye

                        Motion carried.

The next agenda item for consideration was the Executive Director’s Report and the Licensing Division’s staff recommendation to deny the supplier license application of Miller Parking Company, Board file number SL001149-03-001.

Judge Gribbs noted for the record that Mr. Ira Jaffe, counsel for Miller Parking Company was present at the meeting.

After comments from Mr. Jaffe and there being no questions from Board members, it was moved by Mr. Kassab and seconded by Mr. Davis that the Board enter an order denying the license of Miller Parking Company based on violations of 7B of the Michigan Gaming Control and Revenue Act. The following roll call vote was taken:

      Chairman Gribbs:      Aye

      Mr. Davis:                   Aye

      Mr. Kassab:                Aye

      Judge Stacey:            Aye

                        Motion carried.

                        The next case the Board considered was the denial of Shannon Burts’ application for an occupational license, Board File No. OLH-2003-08.

                        Chairman Gribbs noted for the record the presence of Assistant Attorney General Bethany Scheib, Nick Alagna, Employee Licensing Manager and Shannon Burt.

                        After comments from Ms. Scheib, Ms. Burts and Mr. Alagna, it was moved by Judge Stacey and seconded by Mr. Kassab that the Board enter a final decision and order in the matter of the denial of Shannon Burts’ application for an occupational license, case number OLH-2003-08, accepting, adopting and incorporating the hearing officer’s Proposal for Decision in part, but rejecting the hearing officer’s recommendation for remand to the Board staff and instead move the denial of the occupational license.  A motion also was made that the Board in conjunction with the alternative recommendation in the Proposal for Decision grant a waiver of the one-year time period for a reapplication pursuant to Board Rule 432.1340(2).  The following roll call vote was taken:

      Chairman Gribbs:      Aye

      Mr. Davis:                    Aye

      Mr. Kassab:                Aye

      Judge Stacey:            Aye

                        Motion carried.

                        The Board next considered the disciplinary action of Ola Mae Robinson, Case Number DA-2003-0001-OL.

Chairman Gribbs noted for the record that Ola Mae Robinson was given written notification that the Board would consider the hearing officer’s Proposal for Decision at tonight’s meeting.  Judge Gribbs further noted that Ms. Robinson was not present at the meeting. 

                        It was moved by Mr. Davis and seconded by Mr. Kassab that the Board enter a final decision and order in the matter of the disciplinary action of Ola Mae Robinson accepting, adopting and incorporating the hearing officer’s Proposal for Decision in the matter in its entirety and revoking the occupational license of Ola Mae Robinson. The following roll call vote was taken:

      Chairman Gribbs:      Aye

      Mr. Davis:                    Aye

      Mr. Kassab:                Aye

      Judge Stacey:            Aye

                        Motion carried.

The Board next considered the decision in the matter of the denial of Jennifer Bertrand’s application for an occupational license, Board file number OLH-2003-02.

Chairman Gribbs noted for the record that Ms. Bertrand was not present at the meeting and that neither she nor Board staff have filed any objections to the hearing officer’s Proposal for Decision.

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 Jennifer Bertrand accepting, adopting and incorporating the hearing officer’s Proposal for Decision in the matter in its entirety and denying the occupational license for which Jennifer Bertrand made application. The following roll call vote was taken:

      Chairman Gribbs:      Aye

      Mr. Davis:                    Aye

      Mr. Kassab:                Aye

      Judge Stacey:            Aye

                        Motion carried.

                        There being no other license applications to consider, it was moved by Mr. Kassab 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:

            Chairman Gribbs:            Aye

            Mr. Davis:                          Aye

            Mr. Kassab:                      Aye

            Judge Stacey:                 Aye

Motion carried.

There being no questions or comments from the public, the meeting was adjourned by Chairman Gribbs, at 8:25 p.m.

                              ______

                                Patricia S. James

                                Board Secretary