STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, April 12, 2005 and

Wednesday, April 13, 2005

11:00 A.M.

MINUTES

On Tuesday, April 12, 2005, 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

                                                Barbara Rom

                                                Donald Robinson

                                                Judge Michael Stacey

                        Also attending were:

                                                Daniel Gustafson

                                                Patty James

                                                DF/L Vicki Johnson

                                                Ben McMakin

                                                Tom Barker

                                                John Page

                                                Jack Cahill

Business:          Board Chairman Damian Kassab called the meeting to order at 11:02 a.m.  Chairman Kassab noted for the record that Judge Friedman was not able to attend the meeting due to a prior commitment.

                        Chairman Kassab stated the first order of business was to approve the minutes from the March 8, 2005 meeting.  He requested a motion to approve the minutes from the March 8, 2005 meeting.

                        It was moved and seconded that the minutes of the March 8, 2005 meeting be approved.  Motion carried.

                        Dan Gustafson next presented the Executive Director’s report.  In regards to staffing Mr. Gustafson advised the Board that the MGCB staff now total 99 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 2005, from October 1, 2004 through March 31, 2005, the Board has incurred expenditures in the amount of $6,605,245 leaving the unexpended balance of $11,708,355 in appropriated funding for FY 2005.  

                        Mr. Gustafson next reported that for March 2005, the aggregate revenue in taxes for all three Detroit casinos was up 7.33 percent compared to the same month last year.  The gaming taxes for the three Detroit casinos for March 2005 were $13.222 million compared to $8.24 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.

                        Mr. Gustafson also noted that the Board had in its possession a written report on the staffing and activity issues related to the Michigan State Police.

                        Upon conclusion of Mr. Gustafson’s report a discussion ensued between Ms. Rom and D/F/L Johnson regarding the number of criminal investigations at MotorCity Casino, compared to the MGM Grand.

                        Next Chairman Kassab requested a motion to accept the recommendations of the Executive Director and the Licensing Division’s staff regarding the 52 Level 1 and 2 occupational license applications. 

                        It was moved by Ms. Rom and seconded by Judge Stacey to accept the recommendations of the Executive Director and the Licensing Division’s staff for the applications summarized in Exhibit 1.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the Acknowledgment of Violation of MotorCity Casino pertaining to the liquor control code violations.

                        Chairman Kassab requested that Mr. Gustafson give a brief summary of the alleged violations and Mr. Cahill give a description of the resolution and the agreement being proposed to the Board.

                        Upon conclusion of Mr. Gustafson’s and Mr. Cahill’s summaries, it was moved by Judge Stacey and seconded by Mr. Robinson that the Board accept the proposed acknowledgment of violation as agreed to by the MGCB staff and Detroit Entertainment, L.L.C., d/b/a MotorCity Casino, and issue an order adopting, accepting and incorporating the acknowledgment of violation as the Board’s final decision.  A voice vote was taken.

                        Motion carried.

                        Chairman Kassab next requested that Agenda Item C, regarding MotorCity Casino’s four pending transfers of interest and related debt transaction be set aside until all other agenda items had been considered.

                        Therefore, the next agenda item considered by the Board was the Executive Director’s Report and the Board staff’s recommendation regarding the eligibility and suitability of David Duane Johnson and Leslie Stone Heisz as required key persons/qualifiers of supplier licensee International Game Technology.

                        There being no questions from Board members, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter orders finding and concluding that David Duane Johnson and Leslie Stone Heisz are eligible and suitable as required qualifiers of supplier licensee International Game Technology.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending supplier license application of James W. Kraft, d/b/a Absolute Images, L.L.C.

                        After Chairman Kassab noted for the record that there were no representatives from Absolute Images present at the meeting, it was moved by Ms. Rom and seconded by Mr. Robinson that the Board enter an order finding and concluding that James W. Kraft, d/b/a Absolute Images, L.L.C. and its qualifiers are eligible and suitable for licensure under the licensing requirements of the Act and Administrative Rules of the Board.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the Board staff’s recommendation regarding the supplier application withdrawal requests from Riverside Ford Sales, Inc., VHS Group, L.L.C., d/b/a Commodity Sourcing Group and Southgate Automotive, d/b/a Southgate Ford.

                        After a brief discussion between Chairman Kassab and Mr. McMakin, it was moved by Judge Stacey and seconded by Mr. Robinson that the Board grant the requests of Riverside Ford Sales, Inc., VHS Group, L.L.C., and Southgate Automotive for withdrawal of their supplier applications.  A voice vote was taken.

                        Motion carried.

                        The next agenda item considered was the Board staff’s recommendation regarding the request from Sigma Game, Inc. to withdraw it’s supplier renewal application.

                        After it was noted by Ms. Rom that the Board staff had collected fees in the amounts of $8,163.50 and $33.54, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter an order granting the request of Sigma Game, Inc. for withdrawal of the supplier renewal application.  A voice vote was taken.

                        Motion carried.

                        There being no other license applications to consider, it was moved by Ms. Rom and seconded by Judge Stacey that the meeting be recessed until Wednesday, April 13, 2005 at 11:00 a.m.  A voice vote was taken.

                        Motion carried.

                        On Wednesday, April 13, 2005, at 11:03 a.m., Chairman Kassab reconvened the Public Meeting.  Chairman Kassab noted for the record that Judge Stacey was absent, but Judge Friedman was present at the meeting.

                        The first order of business was to consider Agenda Item C, the four pending applications for transfer of interest and related debt transaction in Detroit Entertainment, L.L.C., d/b/a MotorCity Casino, including recommendations to approve two supplier license exemption requests from Deutsche Bank Trust Company and Merrill Lynch Capital Corporation. 

                        Upon Chairman Kassab’s request, Mr. Gustafson gave a brief overview of Detroit Entertainment’s request.

                        Upon conclusion of Mr. Gustafson’s summary, Chairman Kassab noted for the record the presence of Len Wolfe, counsel for CCM Merger and Marian Ilitch, Mrs. Marian Ilitch and John Redmond, President and Chief Executive Officer of MGM Grand Resorts.

                        Next, Mr. Wolfe presented an outline giving a summary of the proposed transfers of interest, which included a total of six transfers in the four application requests.

                        Upon completion of Mr. Wolfe’s presentation, Board staff, the Attorney General’s staff and representatives for Mrs. Ilitch and Detroit Entertainment answered questions from Board members.

                        After all questions were satisfactorily answered, it was moved by Ms. Rom and seconded by Mr. Robinson that the Board approve the applications for transfers of interest in Detroit Entertainment, L.L.C. and related transition services agreement, debt transaction and supplier license exemption requests.  A roll call vote was taken:

                                    Chairman Kassab:            Aye

                                    Judge Friedman:            Aye

                                    Ms. Rom:            Aye

                                    Mr. Robinson:            Aye

                        There being no other business to consider, it was moved by Mr. Robinson and seconded by Ms. Rom 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.  A voice vote was taken.

                        Motion carried.

There being no comments from the public, Chairman Kassab adjourned the meeting, at 12:15 p.m.

                              ______

                                Patricia S. James

                                Board Secretary