STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

TUESDAY, October 14, 2003

6:00 P.M.

MINUTES

On Tuesday, October 14, 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

                        Also attending were:

                                                Daniel Gustafson

                                                Patty James

                                                Eric Eggan

                                                D/Lt. Harvie Jarriell

                                                Ben McMakin

                                                John Page

Business:           Board Chairman Roman Gribbs called the meeting to order at 6:10 p.m. Chairman Gribbs noted for the record that Judge Stacey was not in attendance.   Chairman Gribbs also announced and expressed deep sorrow at the passing of Judge Geraldine Bledsoe Ford.  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 September 9th Board meeting and there being no comments, changes or corrections to the minutes, he requested a motion to approve the minutes from the September 9, 2003 meeting.

                        It was moved and seconded that the minutes of September 9, 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 David Hicks has been added to the staff as an auditor in the Native American Gaming Section.  Mr. Gustafson further advised the Board that the MGCB staff now total 88 with 14 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 2003, ending September 30, 2003, the Board has incurred expenditures in the amount of $12,572,050, leaving the unexpended balance of $4,058,150 in appropriated funding for FY 2003.  Mr. Gustafson further advised the Board that until the fiscal year end books are closed, the unexpended balance would be lower, due to additional expenditures that have not yet been reported.

                        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 .58 percent for the month of September compared to the same month in year 2002.  The gaming taxes for the three Detroit casinos were 7.278 million compared to 7.236 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, Chairman Gribbs introduced Michael Atkins, counsel for Greektown Casino.  Mr. Atkins proceeded to give a brief presentation on the status of ongoing arbitration between Monroe Partners and Mr. Gatzaros and Mr. Papas.

                        After Mr. Atkins answered Board members' questions, Chairman Gribbs proceeded to the next business agenda item. 

                        The Board considered the Licensing Division's staff recommendations regarding 151 pending Level 1 and Level 2 occupational license applications.  Staff recommended issuance of 150 license applications and denial of 1 license application 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 Mr. Kassab and seconded by Mr. Davis that the Board enter an order accepting and adopting the Licensing Division's staff recommendations regarding the 151 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

                        Motion carried.

                        The next agenda item was to consider the Executive Director's report and Licensing Division's staff recommendation regarding the debt collateralization and financing proposal for the MGM Grand Detroit, L.L.C. permanent casino.

                        Upon completion of a brief overview of the transactions from Mr. McMakin, comments from Jim Candler, counsel for MGM Grand Detroit, L.L.C., and questions from Board members, it was moved by Mr. Davis and seconded by Mr. Kassab that the Board, accept, adopt and incorporate the proposed order approving debt transactions of MGM Grand Detroit, L.L.C., file number MGM-2003-03, as negotiated between the Board, Board staff and MGM Grand Detroit, L.L.C. as its final order.  The following roll call vote was taken:

                                    Judge Gribbs:            Aye

                                    Mr. Davis:            Aye

                                    Mr. Kassab:            Aye

                        Motion carried.

                        The Board next considered the acknowledgement of violation by MGM Grand Detroit.

                        Chairman Gribbs acknowledged Mr. McMakin's presence and invited Assistant Attorney General John Cahill to give a brief summary of the resolution and agreement being proposed to the Board.

                        Mr. Cahill began by introducing Ms. Phyllis James, Senior Vice President/Senior Counsel for MGM Mirage, and general counsel for MGM Grand Detroit, and Mr. Peter Ellsworth, representative of MGM Grand Detroit.

                        After brief comments from Mr. Cahill and Ms. James, and there being no questions from Board members, it was moved by Mr. Kassab and seconded by Mr. Davis that the Board accept the proposed acknowledgement of violations as agreed to by the Gaming Board staff and MGM Grand Detroit, L.L.C. and issue an order adopting, accepting and incorporating the acknowledgement of violations as the Board's final decision.  The following roll call vote was taken:

                                    Judge Gribbs:            Aye

                                    Mr. Davis:            Aye

                                    Mr. Kassab:            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 of L.S. Brinker Company, Board File No. SL000402-03-001.

Chairman Gribbs noted for the record that Mr. Larry S. Brinker, Chief Executive Officer of L.S. Brinker Construction Company was present at the meeting.  He also recognized Deputy Director McMakin's presence.

There being no questions from Board members, it was moved by Mr. Davis and seconded by Mr. Kassab that the Board enter an order finding and concluding that L.S. Brinker 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 L.S. Brinker Company, 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

                        Motion carried.

The 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 Michigan Industrial Group, L.L.C., Board File No.  SL001191-03-001.

Judge Gribbs noted for the record that Michigan Industrial Group 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 Mr. Kassab and seconded by Mr. Davis that the Board enter an order finding and concluding that Michigan Industrial Group, L.L.C. 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

                        Motion carried.

                        The next business agenda item was to consider the Executive Director's Report and the Licensing Division's staff recommendation regarding the pending non-gaming related supplier license application of J.J.S.V. Enterprises, Inc., Board File No.  SL001287-03-001.

                        Chairman Gribbs noted for the record the presence of Mr. McMakin and Mr. Mark Sheenan, representative for J.J.S.V. Enterprises.

                        There being comments from Mr. Sheenan, it was moved by Mr. Davis and seconded by Mr. Kassab that the Board enter an order finding and concluding that J.J.S.V. Enterprises, Inc., doing business as PizzaPapalis Greektown, 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 J.J.S.V. Enterprises, 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

      Mr. Kassab:      Aye

                        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 application of C & R Maintenance, Inc., Board File No.  SL001468-03-001.

                        Chairman Gribbs recognized Mr. McMakin's presence and noted for the record that there were no representatives from C & R Maintenance, Inc. present at the meeting.

                        It was moved by Mr. Kassab and seconded by Mr. Davis that the Board enter an order finding and concluding that C & R Maintenance, Inc., d/b/a Rizzo Services, 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 C & R Maintenance, 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

      Mr. Kassab:      Aye

                        Motion carried.

The next agenda item for consideration was the Executive Director's Report and the Licensing Division's staff recommendation regarding the pending gaming related supplier license application of Casino Credit Services, L.L.C., Board File No.  SL002244-03-001.

Chairman Gribbs noted for the record that there were no representatives present for Casino Credit Services, L.L.C. and once again acknowledged Deputy Director McMakin's presence.

There being no questions for Mr. McMakin, it was moved by Mr. Davis and seconded by Mr. Kassab that the Board enter an order finding and concluding that Casino Credit Services, L.L.C. 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 gaming related supplier license application of Casino Credit Services, 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

      Mr. Kassab:      Aye

                        Motion carried.

                        The next case the Board considered was the denial of Daniel Scott Jenuwine's application for an occupational license, Case No. OLH-2001-24.

                        Chairman Gribbs stated for the record that Mr. Jenuwine and his attorney were given notice that the Board would consider the Revised Proposal for Decision in this matter at the meeting.  Chairman Gribbs further noted for the record that neither Mr. Jenuwine nor his counsel were present at the meeting.

                        Therefore, it was moved by Mr. Kassab and seconded by Mr. Davis that the Board enter a final decision and order in the matter of the denial of Daniel Scott Jenuwine's application for an occupational license, Case No. OLH-2001-24, accepting, adopting and incorporating the Executive Director's Revised Proposal for Decision in this matter in its entirety and denying the occupational license for which Mr. Jenuwine made application because of his failure to demonstrate his suitability for licensure under the licensing standard of the Act and Board Rules by clear and convincing evidence and the other reasons stated in the Revised Proposal for Decision.  The following roll call vote was taken:

      Chairman Gribbs:      Aye

      Mr. Davis:      Aye

      Mr. Kassab:      Aye

                        Motion carried.

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

Motion carried.

                        There being no questions or comments from the public, the meeting was adjourned by Chairman Gribbs, at 7:38 p.m.

                              ______

                                Patricia S. James

                                Board Secretary