STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

TUESDAY, October 12, 2004

11:00 A.M.

MINUTES

On Tuesday, October 12, 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

                                                         Barbara Rom

                                                         Judge Michael Stacey

                              Also attending were:

                                                         Daniel Gustafson

                                                         Patty James

                                                         Insp. Ellis Stafford

                                                         Ben McMakin

                                                         Tom Barker

                                                         John Page

                                                         Jack Cahill

                                                         Bethany Scheib

Business:          Board Chairman Damian Kassab called the meeting to order at 10:59 a.m.  Chairman Kassab noted for the record that Mr. Robinson was not in attendance due to a prior commitment.

                        Chairman Kassab stated the first order of business was to approve the minutes from the September 14, 2004 meeting.  He requested a motion to approve the minutes from the September 14, 2004 meeting.

                        It was moved and seconded that the minutes of the September 14, 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 with Mildred Holmes, a Regulation Officer, accepting a position with the federal government, the MGCB staff now totals 97 with 5 authorized positions yet to be filled.  He also noted that three new regulation officers had been selected through the interview process and pending a background check and drug testing, and their acceptance of the job offer, three of the five vacant positions would be filled.   Mr. Gustafson also advised the Board that the agency currently has 102 authorized positions and the legislature has authorized another 3 ½ positions.

                        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 September 30, 2004, the Board has incurred expenditures in the amount of $14,301,793, leaving the unexpended balance of just over 3 million in appropriated funding for FY 2004.   Mr. Gustafson further advised that the unexpended balance would be used for outstanding invoices/bills and obligations at year-end closing.

                        Mr. Gustafson next reported that the aggregate revenue in taxes for all three Detroit casinos in September 2004 was up 2.26 percent compared to the same month last year.   The gaming taxes for the three Detroit casinos for September 2004 were $11.12 million compared to $7.278 million for the same period last year.  The sharp raise in taxes was due to a 6 percent increase in the tax rate, which took effect September 1st.

                        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, it was moved by Judge Friedman and seconded by Judge Stacey that the Board accept the recommendations of the Executive Director regarding the 74 Level 1 and 2 occupational license applications as summarized in Exhibit 1.  A voice vote was taken.

                        Motion carried.

The next item considered by the Board was the Licensing Division’s staff recommendations regarding the pending applications for approval of transfer of interest in 1) Atlantic City Coin and Slot Service Company, 2) J.J.S.V. Enterprises, Inc., and 3) Reel Games, Inc.

                        After Mr. McMakin, Deputy Director of the Licensing Division, answered Ms. Rom’s questions relative to the investigations, it was moved by Ms. Rom and seconded by Judge Stacey that the Board enter orders approving the proposed transfer of ownership interest in 1) Atlantic City Coin and Slot Service Company from Max Seelig to Jerald Seelig, Jeffrey Seelig and Jason Seelig, 2) J.J.S.V. Enterprises, Inc. from Gabriel Sheena Trust, Mary Sheena Trustee to Mark Sheena, and 3) Reel Games, Inc. from Sean Gerard Smith to Glen Kapoosuzian.  A voice vote was taken.

                        Motion carried.

The Board next considered the Executive Director's reports and the Licensing Division's recommendations regarding the pending supplier license applications of Mezzaluna Designs, Inc., and Skanska USA Building, Inc.

                        There being no questions from Board members, it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter orders finding and concluding that Mezzaluna Designs, Inc. and Skanska USA Building, Inc. and their qualifiers are eligible and suitable for licensure.  A voice vote was taken.

                        Motion carried.

                        The next agenda item considered was the Executive Director's report and the Licensing Division's recommendation regarding the pending gaming related supplier license renewal application of LVC Technologies, Inc.

                        After noting for the record that there were no representatives for LVC Technologies present at the meeting, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter an order finding and concluding that LVC Technologies, Inc. and its qualifiers are eligible and suitable for licensure and accordingly granting the request for renewal of its annual gaming related supplier license for a new one year period beginning October 12, 2004.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the request to withdraw supplier applications and waive one year waiting periods for reapplication of 1) Miller Parking Company, and 2) Hillside Productions. 

                        Chairman Kassab noted for the record the presence of Mr. Shlome Benezra, counsel for Miller Parking Company.  Chairman Kassab also noted for the record that Board member Barbara Rom has recused herself from this vote, due to litigation with Hillside Productions and a party represented by her law firm.

                        There being no comments from Mr. Benezra it was decided to separate the requests and have separate roll call votes taken for each request.

                        Therefore, it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter an order granting the request of Miller Parking Company for withdrawal of its supplier license application and waiver of the one-year reapplication period for its non-gaming supplier license.  The following roll call vote was taken.

                                                         Chairman Kassab:      Aye

                                                         Judge Friedman:         Aye

                                                         Ms. Rom:                    Aye

                                                         Judge Stacey:             Aye

                        Motion carried.

                        Next a roll call vote was taken on the motion that the Board enter an order granting the request of Hillside Productions, Inc. for withdrawal of its supplier license application and waiver of the one-year reapplication period for its non-gaming supplier license.  The following roll call vote was taken.

                                                         Chairman Kassab:      Aye

                                                         Judge Friedman:         Aye

                                                         Ms. Rom:                    Recuse

                                                         Judge Stacey:             Aye

                        Motion carried.

                        The Board next considered the Proposal for Decision in the matter of the denial of Francois Moore’s application for an occupational license.  Board File No. OLH-2004-04.

                        After a brief summary of this matter by Assistant Attorney General, Ms. Bethany Scheib and comments from Mr. Moore, it was moved by Judge Friedman and seconded by Judge Stacey to accept, adopt and incorporate the hearing officer's Proposal for Decision in its entirety and denying Francois Moore’s application for an occupational license.   The following roll call vote was taken.

                                                         Chairman Kassab:      Aye

                                                         Judge Friedman:         Aye

                                                         Ms. Rom:                    Aye

                                                         Judge Stacey:             Aye

                        Motion carried.

                        There being no questions or comments from the public it was moved by Ms. Rom and seconded by Judge Friedman that the Board go into closed session 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.   A voice vote was taken.

                        Motion carried.

Meeting adjourned at 11:25 a.m.

                                                                                                            _______________________________________

                                Patricia S. James

                                Board Secretary