STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

TUESDAY, September 9, 2003

6:00 P.M.

MINUTES

On Tuesday, September 9, 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

                                                D/F/Lt. Vicki Johnson

                                                Ben McMakin

                                                John Page

Business:    The meeting was called to order at 6:12 p.m. by Board Chairman Roman Gribbs. Chairman Gribbs noted for the record that Judge Ford was not in attendance.  Chairman Gribbs also introduced Mr. Damian Kassab, as the new Board member appointed by Governor Granholm.  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 August 19^th Board meeting and there being no comments, changes or corrections to the minutes, he requested a motion to approve the minutes from the August 19, 2003 meeting.

                        It was moved and seconded that the minutes of August 19, 2003 meeting be approved.  Motion carried.

                        Dan Gustafson next presented the Executive Director’s report.  In regards to staffing Mr. Gustafson advised the Board that Denise Reece, a Departmental Tech in the Licensing Division has accepted another position within Treasury.  Mr. Gustafson further advised the Board that the MGCB staff now total 87 with 10 authorized positions yet to be filled. 

                        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 $11,540,427 from October 1, 2002 through August 31, 2003, leaving the unexpended balance of $5,089,773 in appropriated funding for the remainder of the fiscal year, which ends September 30, 2003.

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 down .71 percent compared to the same month in year 2002.  The gaming taxes for the three Detroit casinos were 7.69 million compared to 7.74 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 completion of Mr. Gustafson’s report, Judge Gribbs proceeded to recognize and honor Ms. Nancy Horton, former Deputy Director of Administration, with a Board Resolution for her exceptional service and assistance to the Board.

                        It was moved by Mr. Kassab and seconded by Judge Stacey to approve the Board Resolution.  A voice roll call was taken.  Motion carried.

                        After comments from Ms. Horton and D/F/Lt. Johnson, Chairman Gribbs introduced John Page, Deputy Director of the Enforcement Division.   Mr. Page proceeded to give a brief overview of the Enforcement Division.

                        After Mr. Page answered Board members’ questions and agreed to continue his presentation at the October 2003 Board meeting, Chairman Gribbs proceeded to the next business agenda item. 

                        The Board considered the Licensing Division’s staff recommendations regarding 113 pending Level 1 and Level 2 occupational license applications.  Staff recommended issuance of 108 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. Kassab that the Board enter an order accepting and adopting the Licensing Division’s staff recommendations regarding the 113 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 next agenda item was to consider the declaratory rulings requested by Greektown Casino.  Chairman Gribbs invited Mr. Gustafson to give a brief synopsis of the Board staff’s recommendation on the proposed declaratory rulings.  

                        Upon completion of Mr. Gustafson’s summary, it was noted for the record that Mr. Michael Atkins, legal counsel for Greektown Casino was present at the meeting.

                        Chairman Gribbs then asked for a motion and it was moved by Mr. Kassab and seconded by Mr. Davis that the Board adopt Board Resolution and Order Number 2003-05 granting field of commerce supplier licensing exemptions to third party retail tenants who have a strictly and purely landlord-tenant relationship with licensed casinos and are not physically or functionally connected to the gaming areas of the licensed casino.  The following roll call was taken:

      Chairman Gribbs:      Aye

      Mr. Davis:      Aye

      Mr. Kassab:      Aye

      Judge Stacey:      Aye

                        Motion carried.

                        Next, it was moved by Mr. Kassab and seconded by Judge Stacey that the Board adopt and issue declaratory ruling number 2003-01 on third-party retail tenants in the permanent casinos by clarifying the definition of, “casino enterprises,” as requested by Greektown Casino in its October 22, 2002, request.  The following roll call was taken:

      Chairman Gribbs:      Aye

      Mr. Davis:      Aye

      Mr. Kassab:      Aye

      Judge Stacey:      Aye

                        Motion carried.

                        The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the non-gaming related supplier license renewal report of Simon & Leeman, Board File No. SL000448-03-001.

Chairman Gribbs noted for the record that there were no representatives for Simon & Leeman Corporation present at the meeting.  He also recognized Deputy Director McMakin’s presence to answer any questions the Board members may have.

Therefore, it was moved by Mr. Davis and seconded by Judge Stacey that the Board enter an order finding and concluding that Simon & Leeman Corporation and its qualifier 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 request of Simon & Leeman for renewal of its annual non-gaming related supplier license for a new one-year period beginning September 9, 2003, and expiring on September 8, 2004, 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.

Next agenda item for consideration was the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending non-gaming related supplier license application of Allied Building Service Company of Detroit, Inc., d/b/a Allied Eagle Supply Company, Board File No. SL000518-03-001.

Judge Gribbs noted for the record that Allied Building Service Company of Detroit, Inc. was given written notification that the Board would consider its supplier license application at tonight’s meeting.  Judge Gribbs further noted that there were no representatives present at the meeting. 

There being no questions for Mr. McMakin, it was moved by Judge Stacey and seconded by Mr. Davis that the Board enter an order finding and concluding that Allied Building Service Company of Detroit, 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 of the Board, and accordingly granting the non-gaming related supplier license application 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

      Mr. Kassab:      Aye

      Judge Stacey:      Aye

                        Motion carried.

                        The next order of business was a status report from Deputy Director McMakin on MGM financing.  It was noted for the record that Mr. Pete Weipert, representative for Grant Thornton LLP, a MGCB consultant and Mr. James Candler, counsel for MGM Grand Detroit Casino were also present at the meeting.

                        After Mr. McMakin’s presentation and brief comments from Mr. Weipert and Mr. Candler, it was moved by Mr. Kassab and seconded by Mr. Davis 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. Kassab:            Aye

            Judge Stacey:            Aye

Motion carried.

There being no questions or comments from the public, the meeting was adjourned by Judge Gribbs, at 7:50 p.m.

                              ______

                                Patricia S. James

                                Board Secretary