STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Albert Kahn Building

7430 Second Avenue, Suite 300

Detroit, Michigan

TUESDAY, OCTOBER 3, 2000

7:00 P.M.

MINUTES

On Tuesday, October 3, 2000, the Michigan Gaming Control Board held a public meeting at the Board office in the Albert Kahn Building, 7430 Second Avenue, Suite 300, Detroit, Michigan.   

Present:
In attendance were the following Board members:

Thomas Denomme, Chairman
Paula Blanchard

Rich Davis
Judge Geraldine Bledsoe Ford
Judge Michael Stacey

Also attending were:
Nelson Westrin
Patty James
Eric Eggan
Dewayne Brantley

Business:
The meeting was called to order at 7:00 p.m., at which time Chairman Denomme requested a motion for approval of the September 12, 2000 minutes. 

It was moved and seconded that the minutes of the September 12, 2000 meeting be approved.  Motion carried.

Nelson Westrin presented the Executive Director s report.  Mr. Westrin stated that the Board has hired four new employees in the Administration Division, two in the East Lansing office and two temporary, limited-term employees in the Detroit office.  The addition of these employees fills 74 of the 92 authorized full-time positions.  

With regard to the budget, Mr. Westrin reported that the Board has incurred expenditures in the amount of $11,298,850 through September 27, 2000, leaving a balance of $3,105,150 available for the remainder of the fiscal year, which ends September 30.  Mr. Westrin noted, however, that much of the unexpended funding has been appropriated for projects not yet completed and will be carried forward to the new fiscal year. 

Mr. Westrin stated that Board staff continues to monitor activities of the MGM Grand Detroit Casino and the MotorCity Casino on a seven-day, 24-hour basis, including daily gaming tax returns and related revenue and expense records.

Since the last Board meeting, no citations for violations of the Act or rules have been issued.

Mr. Westrin reported that the Greektown public investigative hearing is scheduled to reconvene in early November, and Greektown plans to open November 10 if granted a temporary license.

Mr. Westrin updated the Board on the status of the issuance of temporary supplier licenses, full supplier licenses, vendors, and exemptions, as well as the status of the issuance of temporary and permanent occupational licenses for the three casinos.

Upon conclusion of Mr. Westrin s report, and there being no questions or comments from Board members, the Board moved to the business portion of the meeting. 

The first item to be considered was the annual casino license renewal report and request of MGM Grand Detroit, LLC, File No. 011998-0300.  Before voting on MGM s casino license renewal request, however, Scott Snow, MGM's chief operating officer addressed the Board and presented additional information in further support of its renewal request. 

Upon completion of Mr. Snow's presentation, Chairman Denomme and Ms. Blanchard questioned Mr. Snow with regard to the issues such as the step up in trespass issues, contributions to the development and construction funds, and charitable organizations. 

A motion was made and seconded that the Board issue a notice of renewal of the casino license for MGM Grand Detroit, LLC, renewing its annual casino license for the period of October 3, 2000 through October 2, 2001.  A roll-call vote was called: 

Mr. Denomme:  Aye.

Ms. Blanchard:  Aye.
Mr. Davis:  Aye.
Judge Ford:  Aye.
Judge Stacey:  Aye.

Motion carried. 

The Board next considered staff recommendations for the granting and/or denial of 38 occupational licenses.  Staff recommended the issuance of 30 licenses and the denial of 8 licenses.

Upon motion and support, a roll-call vote on the motion to accept and adopt the staff's occupational licensing recommendations summarized in Exhibit 1 and to direct the Executive Director to issue occupational licenses and Notices of Denial to the named applicants was called:

Mr. Denomme:  Aye.

Ms. Blanchard:  Aye.
Mr. Davis:  Aye.
Judge Ford:  Aye.
Judge Stacey:  Aye.

Motion carried. 

The Board next considered two occupational license denial appeals of Kevin David Schechter and Lisa Ann Mallotto, both of which will be recorded and made a part of the contested case records. 

The Board first considered the case of Kevin Schechter, Case No. OLH-2000-02.  

Robert Stocker of Fraser, Trebilcock, Davis and Foster entered his appearance on behalf of Kevin Schechter, and Musette Michael, Assistant Attorney General, entered her appearance on behalf of the Michigan Gaming Control Board staff. 

Mr. Denomme stated that before the Board considered the Hearing Officer's Proposal for Decision, it should first consider Mr. Stocker's request for oral argument.

Both Mr. Stocker and Ms. Michael addressed the Board regarding the applicant's Motion for Oral Argument, and a discussion ensued regarding the motion and the options available to the Board. 

A motion was made to remand the matter back to the hearing officer for oral argument.  The motion was withdrawn for lack of support. 

Subsequently, a motion to remand back to the hearing officer to reopen the record was made and seconded.  A roll-call vote on the motion was called: 

Mr. Denomme:  Nay.
Ms. Blanchard:  Nay.
Mr. Davis:  Aye.
Judge Ford:  Aye.
Judge Stacey:  Nay. 

Motion denied by a three to two vote.

It was then moved and seconded that the Board deny the Motion for Oral Argument.  A roll-call vote was held: 

Mr. Denomme:  Aye.

Ms. Blanchard:  Aye.
Mr. Davis:  Nay.
Judge Ford:  Nay.
Judge Stacey:  Aye.

Motion carried by a three to two vote. 

It was subsequently moved and seconded that the Board adopt the Hearing Officer's Proposal for Decision in Case No. OLH-2000-02.  A roll-call vote was called: 

Mr. Denomme:  Aye.

Ms. Blanchard:  Aye.
Mr. Davis:  Nay.

Judge Ford:  Nay.

Judge Stacey:  Aye.

Motion carried by a three to two vote.

The Board then considered Case No. OLH-2000-14 regarding Lisa Ann Mallotto. 

A motion was made and seconded to accept and adopt the Stipulation and Proposal for Decision of the Hearing Officer to vacate the Board s prior decision denying an occupational license to Lisa Ann Mallotto and to issue a Level III occupational license to Ms. Mallotto.  A roll call vote was held: 

Mr. Denomme:  Aye.

Ms. Blanchard:  Aye.
Mr. Davis:  Aye.
Judge Ford:  Aye.
Judge Stacey:  Aye.

Motion carried. 

The Board next considered File No. 011998-0400, the application of Anthony S. Gramer and GFP-I to acquire a 24 percent membership interest in Partners Detroit, which is .72 interest of MGM Grand Detroit, LLC.

After some discussion, a motion was made and seconded that neither GFP-I, LLC, nor any of its members are to be deemed discretionary qualifiers because there is no evidence that the LLC or its members have independent ability to influence or control the management, operations, or policies of MGM Grand Detroit, LLC, and the underlying facts and circumstances of the previously noticed apparent deficiencies of its member, Mr. Gramer, do not require resolution through the suitability determination process in order to reasonably protect public confidence in the integrity of the casino licensing process or the casino industry.  A roll-call vote was called: 

Mr. Denomme:  Aye.

Ms. Blanchard:  Aye.
Mr. Davis:  Aye.
Judge Ford:  Aye.
Judge Stacey:  Aye.

Motion carried. 

The next application considered by the Board was that of TYJ, LLC, and William F. Picard for approval to acquire a 24 percent interest in Partners Detroit, LLC, and a .72 percent interest of MGM Grand Detroit, LLC, File No. 011998-0500.

A roll-call vote was called on the motion that neither the acquiring TYJ, LLC, nor any of its members are to be deemed discretionary qualifiers because there is no evidence of the LLC or its members having independent ability to influence or control the management, operations, or policies of MGM Grand Detroit, LLC, and the underlying facts and circumstances of the previously noticed apparent deficiencies of its member, Mr. Picard, do not require resolution through the suitability determination process in order to reasonably protect public confidence in the integrity of casino licensing or the casino industry:

Mr. Denomme:  Aye.

Ms. Blanchard:  Aye.
Mr. Davis:  Aye.
Judge Ford:  Aye.
Judge Stacey:   Aye.

Motion carried. 

A roll-call vote was also called on a motion made and seconded that neither the acquiring Roberts Detroit, LLC, nor any of its members are to be deemed discretionary qualifiers because there is no evidence of the LLC or its members having independent ability to influence or control the management, operations, or policies of MGM Grand Detroit, LLC, and the underlying facts and circumstances of the previously noticed apparent deficiencies of its member, Mr. Roberts, do not require resolution through the suitability determination process in order to reasonably protect public confidence in the integrity of the casino licensing process or the casino industry: 

Mr. Denomme:  Aye.

Ms. Blanchard:  Aye.
Mr. Davis:  Nay.
Judge Ford:  Aye.
Judge Stacey:  Nay.

Motion carried by a three to two vote. 

The Board then considered the application of GFP-I, Anthony S. Gramer to acquire a 24 percent membership interest in Partners Detroit, which is a .72 percent interest in MGM Grand Detroit, LLC, File No. 01998-0400.

After discussion, it was moved and seconded that the Board vote to approve the proposed transfer and acquisition because the transferee GFP-I, LLC, and its members are not required or discretionary qualifiers unless a one percent indirect interest in MGM Grand Detroit, LLC, will be acquired by the transferee LLC and its members as a result of the proposed transfer and acquisition.  A roll-call vote on the motion was called: 

Mr. Denomme:  Aye.

Ms. Blanchard:  Nay.
Mr. Davis:  Nay.
Judge Ford:  Aye.
Judge Stacey:  Aye.

Motion carried three to two. 

The next matter considered by the Board was the application for approval of the transfer of interest to TYJ, LLC, William F. Picard, proposed acquisition of interest of 24 percent of Partners Detroit, LLC, and a .72 percent interest of MGM Grand Detroit, LLC.

A motion was made and seconded that the Board approve the proposed transfer and acquisition because the transferee TYJ, LLC, and its members are not required or discretionary qualifiers and less than one percent indirect interest in MGM Grand Detroit, LLC, will be acquired by the transferee LLC and its members as a result of the proposed transfer and acquisition.  A roll-call vote was held: 

Mr. Denomme:  Aye.

Ms. Blanchard:   Aye.
Mr. Davis:  Aye.
Judge Ford:  Aye.
Judge Stacey:  Aye.

Motion carried. 

The next item of consideration was the acquisition of a 10 percent interest in Partners Detroit, LLC, and a .2 percent interest in MGM Grand Detroit, LLC, by Roberts Detroit, LLC, and Roy S. Roberts, File No. 011998-0600. 

After discussion, it was moved and seconded that the Board approve the proposed transfer and acquisition because the transferee LLC, Roberts Detroit and its members are not required or discretionary qualifiers and hold less than one percent indirect interest in MGM Grand Detroit, LLC, and will be required by the transferee LLC and its members as a result of the proposed transfer and acquisition.

Upon further discussion, the motion was withdrawn.   

It was then moved and seconded that a vote be held on the motion that it is not necessary to approve the proposed transfer because the transferee, Roberts Detroit, LLC, and its members are not required or discretionary qualifiers and less than one percent indirect interest in MGM Grand, LLC will be acquired by Roberts Detroit, LLC and its members as a result of the proposed transfer and the acquisition.  A roll-call vote was called:  

Mr. Denomme:  Aye.

Ms. Blanchard:  Aye.
Mr. Davis:  Nay.
Judge Ford:  Aye.
Judge Stacey:  Abstain.

Motion carried three to one with one member abstaining. 

The last order of business to be considered by the Board was to approve and accept the Stipulation in the Matter of the Denial of Gary Payne's Application for an Occupational License, Case No. OLH-2000-08. 

A motion was made and supported that the Board approve and accept the Stipulation to Dismiss the Notice of Denial previously issued by the Executive on April 21, 2000.  A roll-call vote was held: 

Mr. Denomme:  Aye.

Ms. Blanchard:  Aye.
Mr. Davis:  Aye.
Judge Ford:  Aye.
Judge Stacey:  Aye.

Motion carried. 

There being no questions from the public, it was moved and seconded that the meeting be adjourned.  Motion carried and meeting adjourned at 8:54 p.m.