STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD
PUBLIC MEETING
Cadillac Place
3062 W. Grand Blvd., Suite L-700
Detroit, Michigan
TUESDAY, February 10, 2004
6:00 P.M.
MINUTES
On Tuesday, February 10, 2004, 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:
Damian Kassab, Chairman
Judge Benjamin Friedman
Judge Michael Stacey
Also attending were:
Daniel Gustafson
Patty James
Eric Eggan
D/Lt. Robert Honey
Ben McMakin
Tom Barker
John Page
Business: Board Chairman Damian Kassab called the meeting to order at 6:04 p.m. Chairman Kassab noted for the record his appointment by Governor Granholm as Board Chairman and former Chairman Roman Gribbs’ and Rich Davis’ retirement from the Board. Chairman Kassab also introduced the new Board member, retired district court judge, the Honorable Benjamin Friedman. Chairman Kassab further advised that copies of tonight’s agenda were available for the public at the receptionist’s desk.
Chairman Kassab stated that the Board members have received copies of the minutes from the December 16th, 2003 Board meeting and there being no comments, changes or corrections to the minutes, he requested a motion to approve the minutes from the December 16, 2003 meeting.
It was moved and seconded that the minutes of the December 16, 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 Christina Harrison was hired as the Board’s secretary at the Detroit Office. Mr. Gustafson further advised the Board that the MGCB staff now total 91 with 11 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 January 31, 2004, the Board has incurred expenditures in the amount of $3,734,264, leaving the unexpended balance of $13,594,936 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 6.29 percent for the month of January compared to the same month in year 2003. The gaming taxes for the three Detroit casinos for January 2004 were 7.567 million compared to 7.119 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 216 pending Level 1 and Level 2 occupational license applications. Staff recommended issuance of 196 and denial of 20 license applications for reasons specified in the related background investigative reports and Exhibit 1.
Chairman Kassab 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 Judge Friedman that the Board enter an order accepting and adopting the Licensing Division’s staff recommendations regarding the 216 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 Kassab: Aye
Judge Friedman: Aye
Judge Stacey: Aye
Motion carried.
The next agenda item considered by the Board was Greektown Casino’s request for Board approval pursuant to Rule 509 to enter into a $40 million debt transaction.
Chairman Kassab requested that Deputy Director McMakin give a general overview of the proposed debt transaction.
After a brief overview of the request and comments from Peter Weipert, Senior Manager of Management Advisory Services Group of Grant Thornton, Mr. Michael Atkins, counsel for Greektown Casino and Bruce Dall, Chief Financial Officer for Greektown Casino, and questions from Board members, it was decided to postpone action on this request until all other agenda items had been acted on.
The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the eligibility and suitability of Kevin Edward Kondrat as a required key person and qualifier of supplier licensee, PBG Michigan, LLC, Board File No. SL000972-04-001.
Chairman Kassab noted for the record Deputy Director Ben McMakin’s presence and further noted that neither Mr. Kondrat nor representatives from PBG Michigan, LLC were present at the meeting.
There being no questions from Board members, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter an order finding Kevin Edward Kondrat eligible and suitable as a required qualifier of supplier licensee PBG Michigan, LLC, 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 Kassab: Aye
Judge Friedman: Aye
Judge Stacey: Aye
Motion carried.
The next agenda item considered by the Board was the pending gaming related supplier license application of Gemaco, Inc., d/b/a Gemaco Playing Card Company, Board File No. SL000134-04-001.
Chairman Kassab once again noted Mr. McMakin’s presence for the record and also noted that there were no representatives for Gemaco, Inc. present.
Therefore, it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter an order finding and concluding that Gemaco, Inc., d/b/a Gemaco Playing Card Company and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Michigan Gaming Control and Revenue Act, and Administrative Rules of the Board, and accordingly granting the gaming related supplier license application of Gemaco, 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 Kassab: Aye
Judge Friedman: 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 of the pending non-gaming related supplier license application of Superior Linen Service, Inc., d/b/a A Superior Linen Service, Board File No. SL000482-04-001.
Chairman Kassab noted for the record, the presence of Mr. John Blanchard, Special Projects Manager of Superior Linen Service, and Mr. Pete E. Ewasek, an attorney.
There being no comments from Mr. Blanchard or Mr. Ewasek, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter an order finding and concluding that Superior Linen Service, Inc. and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules, and accordingly granting the non-gaming related supplier license application of Superior Linen Service, 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 Kassab: Aye
Judge Friedman: Aye
Judge Stacey: Aye
Motion carried.
The pending nongaming related supplier license for Eagle Rock Associates, LLC, Board File No. SL001095-04-001 was the next agenda item the Board considered.
Chairman Kassab noted for the record that Eagle Rock Associates, LLC was given written notification that the Board would consider its supplier license application at tonight’s meeting. Chairman Kassab further noted that there were no representatives present at the meeting.
After a few brief comments from Deputy Director McMakin, it was moved by Judge Stacey and seconded by Judge Friedman that the Board deny the supplier license application of Eagle Rock Associates, LLC, 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 Kassab: Aye
Judge Friedman: 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 of the pending non-gaming related supplier license application of Annunciation Parking.
Chairman Kassab noted for the record the presence of Mr. Joe Albry, representative of Annunciation Parking.
There being no questions from Board members, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter an order finding and concluding that Annunciation Parking, LLC, 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 Annunciation Parking, LLC, 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 Kassab: Aye
Judge Friedman: Aye
Judge Stacey: Aye
Motion carried.
The Board next considered the Proposal for Decision in the matter of the denial of Olympia Shish-Kebab, Inc.’s application for a supplier license.
Chairman Kassab noted for the record that Olympia Shish-Kebab, Inc. was given written notification that the Board would consider its supplier license application at tonight’s meeting. Chairman Kassab further noted that there were no representatives present at the meeting.
Chairman Kassab also noted for the record the presence of Board representative, Bethany Scheib, Assistant Attorney General.
After comments by Ms. Scheib, it was moved by Judge Stacey and seconded by Judge Friedman, that the Board enter a final decision and order in the matter of the denial of Olympia Shish-Kebab, Inc.’s application for a supplier license, Case No. OLH-2003-04 accepting, adopting and incorporating the Hearing Officer’s Proposal for Decision in this matter in its entirety and denying the supplier license for which Olympia Shish-Kebab, Inc., made application because of Olympia Shish-Kebab, Inc.’s failure to demonstrate its suitability for licensure under the licensing standards of the Act and Board Rules by clear and convincing evidence and the other reasons stated in the Proposal for Decision. The following roll call vote was taken:
Chairman Kassab: Aye
Judge Friedman: Aye
Judge Stacey: Aye
Motion carried.
The final item to be reconsidered by the Board was Greektown Casino’s request for Board approval pursuant to Rule 509 to enter into a $40 million debt transaction.
Mr. Dall, CFO for Greektown Casino, reintroduced himself and gave a brief explanation as to why this request would not be disadvantageous to the people of the State of Michigan.
After comments from Mr. Dall and Mr. McMakin, and questions from Board members it was moved by Judge Friedman and seconded by Judge Stacey that the Board accept, adopt and incorporate the proposed order approving refinancing debt transactions of Greektown Casino, LLC, File No. GTC-2004-001 as negotiated between the Board, Board staff and Greektown Casino, LLC as its final order. The following roll call vote was taken:
Chairman Kassab: Aye
Judge Friedman: Aye
Judge Stacey: Aye
Motion carried.
There being no other license applications to consider, it was moved by Judge Stacey and seconded by Judge Friedman 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 Kassab: Aye
Judge Friedman: Aye
Judge Stacey: Aye
Motion carried.
There being no questions or comments from the public, the meeting was adjourned by Chairman Kassab, at 7:16 p.m.
_______________________________________
Patricia S. James
Board Secretary
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