STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, August 9, 2005

10:30 A.M.

MINUTES

On Tuesday, August 9, 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

                                                Judge Benjamin Friedman

                                                Donald Robinson

                                                Barbara Rom

                                                Judge Michael Stacey

                        Also attending were:

                                                Daniel Gustafson

                                                Patty James

                                                D/Lt. Robert Honey

                                                Ben McMakin

                                                Tom Barker

                                                John Page

                                                Jack Cahill

Business:          Board Chairman Damian Kassab called the regular public meeting to order at 10:38 a.m.   Chairman Kassab noted for the record that Mr. Robinson was not yet in attendance and invited Mr. Gustafson to give a brief overview of the meeting’s agenda.

                        Chairman Kassab asked when the Board would be given Grant Thornton’s analysis on Greektown Casino’s debt transaction request.  Mr. McMakin advised the Board that the Licensing Division’s staff recommendation on this matter would be presented to the Board at the September 2005 Board meeting.  Mr. McMakin further advised that Grant Thornton’s analysis would be available to the Board members the week prior to the meeting.

Chairman Kassab stated the first order of business was to approve the minutes from the July 13, 2005 meeting.  He requested a motion to approve the minutes from the July 13, 2005 meeting.

                        It was moved and seconded that the minutes of the July 13, 2005 meeting be approved.  Motion carried.

                        Mr. Gustafson next presented the Executive Director’s report.  In regards to the Board’s budget, Mr. Gustafson reported that for the fiscal year 2005, from October 1, 2004 through July 31, 2005, the Board has incurred expenditures of $10,206,934 leaving the unexpended balance of $8,106,666 in appropriated funding for FY 2005, which includes funds for anticipated reimbursement for expenditures by the Attorney General’s Office and Michigan State Police. 

                        Mr. Gustafson next reported that for July 2005, the aggregate revenue and gaming taxes for the three Detroit casinos were up 3.92 percent compared to the same month last year.  The gaming taxes for July 2005 for all three Detroit casinos were $12,969,000.

                        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.

                        Next, Mr. Gustafson updated the Board on MSP’s Board-related activities.  Mr. Gustafson advised the Board that Larissa LaMay has joined the MSP Gaming Section.  Mr. Gustafson further advised the Board that there were currently 8 vacant positions within MSP.  Mr. Gustafson also reported that MSP investigated 68 criminal complaints and made 29 arrests for the month of July 2005.

                        Upon conclusion of Mr. Gustafson’s report, Chairman Kassab noted for the record that Mr. Robinson was now present at the meeting.  Chairman Kassab then requested a motion to accept the recommendations of the Executive Director and the Licensing Division’s staff regarding the 59 Level 1 and 2 occupational license applications. 

                        It was moved by Ms. Rom and seconded by Judge Friedman 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 next agenda item was a presentation by Greektown Casino on the approval of a debt transaction to refinance its current debt and its proposed financing structure for construction of the permanent casino.           

                        Mr. John Pirich, counsel for Greektown Casino, introduced himself and proceeded to give a brief presentation of Greektown Casino’s request for approval of a debt transaction.

                        After questions from Board members were answered, Chairman Kassab presented the next agenda item, which was the Board’s consideration of the Executive Director’s Report and Licensing Division’s staff recommendation for the Board to issue a Notice of Deficiency to Miller Parking Company, L.L.C., and to allow the applicant a limited amount of time to correct this deficiency and to notify the applicant of potential denial of the application for supplier license, if the applicant failed to meet the aforementioned criteria.

                        Chairman Kassab acknowledged the presence of Mr. Schlome Benezra, a representative for Miller Parking Company, L.L.C., and requested that Mr. Benezra give a brief overview of the matter.

                        After a brief discussion between Board members, staff members and Mr. Benezra, Judge Stacey and Judge Friedman recused themselves from this vote, due to their acquaintance with one or more of the individuals involved with this matter.

                        Therefore, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter an order to issue a Notice of Deficiency to Miller Parking Company, L.L.C., Board File No. SL001149-05-001, to allow Miller Parking Company, L.L.C. 30 days to correct deficiency and to notify the applicant of a potential denial of its application, if the applicant fails to meet the aforementioned criteria.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the Executive Director’s Report and Licensing Division’s staff recommendations regarding the requests to withdraw the supplier license applications of Blue Lakes Charters and Tours, and N.W. Coughlin and Company.

                        There being no questions from Board members, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter orders granting the requests of Blue Lakes Charters and Tours, Inc. and N.W. Coughlin and Company for withdrawal of their supplier license applications.  A voice vote was taken.

                        Motion carried.

                        The next agenda item considered was the Executive Director’s Report and Licensing Division’s staff recommendations regarding the pending supplier license renewal applications of IGT, Bally Gaming, Inc., and Konami Gaming, Inc.

                        Again, there being no questions from Board members, it was moved by Judge Stacey and seconded by Mr. Robinson that the Board enter orders finding and concluding that IGT, Bally Gaming, Inc., and Konami Gaming, Inc. and their qualifiers are eligible and suitable for licensure and accordingly grant the supplier license renewal applications for a one year period beginning August 9, 2005.  A voice vote was taken.

                        Motion carried.

                        Agenda item F was the consideration of the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending supplier license application of People’s Store Fixture Company, d/b/a People’s Restaurant Equipment Company.

                        There being no questions from Board members, it was moved by Ms. Rom and seconded by Judge Stacey that the Board enter an order finding and concluding that People’s Store Fixture Company and its qualifiers are eligible and suitable for licensure.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the Executive Director’s Report and Licensing Division’s staff recommendations regarding the pending applications for approval of transfer of interest in Productions Plus, Inc., ComSource, Inc. and Hop Bet, Inc. 

                        There being no representatives for the applicants present at the meeting and no questions from Board members, it was moved by Mr. Robinson and seconded by Chairman Kassab that the Board enter orders approving the proposed transfers of interest in Productions Plus, Inc., between Harriet Fuller trustee of Harriet S. Fuller revocable living trust and the Margaret Krevsky revocable trust, ComSource, Inc., between Jim Monaghan and Melody Jackson and Hop Bet, Inc. from Perry B. Stacey to Peter D. Keefe under the licensing standards and requirements of the Act and Rules.  A voice vote was taken.

                        Motion carried.

                        The next item considered was the Acknowledgment of Violation of occupational licensee Howard Laron Wiley.

                        Chairman Kassab invited Deputy Director John Page to give a brief overview of the disciplinary action taken against Mr. Wiley.  Chairman Kassab further noted for the record that Mr. Wiley was not present at the meeting.

                        After questions from Board members, it was moved by Judge Friedman and seconded by Judge Stacey that the Board accept the proposed Acknowledgment of Violation as agreed to by the MGCB staff and Howard Laron Wiley 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.

                        There being no other business to consider, it was moved by Judge Stacey 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 roll call vote was taken.

                                    Chairman Kassab:            Aye

                                    Judge Friedman:                Aye

                                    Mr. Robinson:                  Aye

                                    Ms. Rom:                         Aye

                                    Judge Stacey:                  Aye

                        Motion carried.

                        There being no comments from the public, Chairman Kassab adjourned the meeting, at 11:41 a.m.

                                Patricia S. James

                                Board Secretary