STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

TUESDAY, April 13, 2004

6:00 P.M.

MINUTES

On Tuesday, April 13, 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

                                                D/Lt. Robert Honey

                                                Ben McMakin

                                                Tom Barker

                                                John Page

                                                Jack Cahill

                                                Bethany Scheib

Business:        Board Chairman Damian Kassab called the meeting to order at 6:11 p.m.  Chairman Kassab advised that due to extenuating circumstances, the public comment portion of the meeting would be the first agenda item.

                        Chairman Kassab proceeded to invite Ms. LaTonya Taylor to come forward and speak to the Board.

                        Ms. Taylor advised the Board that the denial of her license was part of tonight's agenda, and requested that the Board waive the one-year requirement for reapplication.

                        Upon completion of Ms. Taylor's remarks, Chairman Kassab advised that the next agenda item was approval of the minutes from the March 9, 2004 Board meeting and there being no comments, changes or corrections to the minutes, he requested a motion to approve the minutes from the March 9, 2004 meeting.

                        It was moved and seconded that the minutes of the March 9, 2004 meeting be approved.  Motion carried.

                        Dan Gustafson next presented the Executive Director’s report.  In regards to staffing Mr. Gustafson advised the Board that Cheryl Taylor was hired as a secretary in the Administration Division's Detroit office.  Mr. Gustafson further advised the Board that the MGCB staff now total 95 with 7 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 March 31, 2004, the Board has incurred expenditures in the amount of $5,556,475, leaving the unexpended balance of approximately $12 million in appropriated funding for FY 2004. 

                       Mr. Gustafson next advised the Board the gaming taxes for the three Detroit casinos for March 2004 were $8,247,000 compared to $8,411,000 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 172 pending Level 1 and Level 2 occupational license applications.  Staff recommended issuance of 171 and denial of 1 license applications for reasons specified in the related background investigative reports and Exhibit 1.

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 172 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 was to consider Greektown Casino's request for modification to the Board's order limiting member distributions. 

                        Chairman Kassab invited Mr. Ben McMakin, Deputy Director of the Licensing Division to give a brief overview of the issue.

                        Upon conclusion of Mr. McMakin's summary, and dialog between Board members, Mr. McMakin, Mr. Jack Cahill, Assistant Attorney General and Mr. Michael Atkins, Counsel for Greektown Casino, it was moved by Judge Friedman and seconded by Judge Stacey that the Board table this issue until the next Board meeting.  The following roll call vote was taken:

                                    Chairman Kassab:            Aye

                                    Judge Friedman:            Aye

                                    Judge Stacey:            Aye

                        Motion carried.

                        The next agenda item was the Board's acceptance and acknowledgment of the violation of the Mikohn Gaming Corporation, Board File No. SDA-2003-03. 

                        Chairman Kassab once again invited Mr. McMakin to give a brief overview of this violation.  Chairman Kassab also invited Mr. Robert Stocker, counsel for Mikohn Gaming Corporation to speak.

                        Upon conclusion of Mr. McMakin's summary and comments from Mr. Stocker and Mike Dreitzer, Executive Vice President and General Counsel of Mikohn Gaming, it was moved by Judge Stacey and seconded by Judge Friedman that the Board accept the proposed acknowledgment of violations as agreed to by the Michigan Gaming Control Board staff and Mikohn Gaming Corporation and issue an order adopting, accepting and incorporating the acknowledgment of violations as the Board's final decision.  The following roll call vote was taken:

                                    Chairman Kassab:            Aye

                                    Judge Friedman:            Aye

                                    Judge Stacey:            Aye

                        Motion carried.

                        The Board next considered the pending gaming-related supplier license renewal application of Mikohn Gaming Corporation, Board File No. SL000006-03-001.

                        Chairman Kassab once again invited a representative from Mikohn Gaming Corporation to speak.

                        Upon conclusion of Mr. Dreitzer's comments, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter an order finding and concluding that Mikohn Gaming Corporation 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 Administrative Rules of the Board and accordingly granting the request of Mikohn Gaming Corporation for renewal of its annual gaming-related supplier license for a new one-year period beginning April 13, 2004, 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 Executive Director's Report and the Licensing Division's staff recommendation regarding the pending gaming-related supplier license application of Compsat Technology, Inc., Board File No. SL001317-04-001.

                        Chairman Kassab noted for the record the presence of Mr. Richard Glisky, Chief Executive Officer for Compsat Technology, Inc.

                        After brief comments by Mr. Glisky, it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter an order finding and concluding that Compsat Technology, Inc. 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 gaming-related supplier license application of Compsat Technology, 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 Board consideration was the pending nongaming-related supplier license application of Unique Linen Services, Inc., Board File No. SL001490-04-002.

                        Chairman Kassab noted for the record that there were no representatives for Unique Linen Services, Inc. present at the meeting.

                        There being no questions from the Board members, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter an order finding and concluding that Unique Linen Services, Inc. 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 nongaming-related supplier license application of Unique Linen Services, 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 Board next considered the Proposal for Decision in the matter of the denial of LaTonya Taylor's application for an occupational license.  Board File No. OLH-2003-05.

                        Chairman Kassab requested Ms. Bethany Scheib, Assistant Attorney General, to present this case to the Board.

                        Upon completion of comments from Ms. Scheib, Mr. Cahill and Mr. Gustafson, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter a final decision and order in the matter of the denial of LaTonya Taylor's application for an occupational license accepting, adopting and incorporating the hearing officer's Proposal for Decision in the matter in its entirety and denying the occupational license for which LaTonya Taylor made application.   It is further moved that the Board in conjunction with the recommendation in the Proposal for Decision grant a waiver of the one-year time period for reapplication pursuant to Board Rule 432.1340(2).  The following roll call vote was taken:

                                    Chairman Kassab:            Aye

                                    Judge Friedman:            Aye

                                    Judge Stacey:            Aye

                        Motion carried.

                        The next agenda item for the Board's consideration was the Proposal for Decision in the matter of the denial of Frank Bartolomeo's application for an occupational license.  Board File No. OLH-2003-10.

                        Once again Ms. Scheib addressed the Board regarding this matter.  Chairman Kassab also noted for the record, Mr. Bartolomeo's presence at the meeting.

                        Upon completion of Ms. Scheib's and Mr. Bartolomeo's comments, and legal arguments regarding reinstatement rights from Mr. Cahill, 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 Frank Bartolomeo's application for an occupational license, granting the applicant a temporary license and remanding to staff for the completion of the background investigation on a full occupational license.  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 Victoria Pendleton's application for an occupational license.  Board File No. OLH-2003-11.

                        Once again, Chairman Kassab recognized Ms. Scheib's presence and noted for the record that Ms. Pendleton was in attendance at the meeting.

                        After brief comments from Ms. Scheib and Ms. Pendleton, and questions from the Board, 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 Victoria Pendleton's application for an occupational license, accepting, adopting and incorporating the hearing officer's Proposal for Decision in the matter in its entirety and denying the occupational license for which Victoria Pendleton made application.  The following roll call vote was taken:

                                    Chairman Kassab:             Aye

                                    Judge Friedman:            Aye

                                    Judge Stacey:            Aye

                        Motion carried.

                        Next it was moved by Judge Friedman 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 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 8:15 p.m.

                              ______

                                Patricia S. James

                                Board Secretary