STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, October 11, 2005

10:30 A.M.

MINUTES

On Tuesday, October 11, 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/F/Lt. Vicki Johnson

                                                           Ben McMakin

                                                          Tom Barker

                                                          John Page

                                                          Jack Cahill

Business:           Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 10:32 a.m.   Chairman Kassab invited Dan Gustafson to give an overview of the meeting’s agenda.

                        Mr. Gustafson advised the Board that there were no agenda items of special import that needed to be discussed in advance of the regular public meeting.

                        After Ms. Rom’s question regarding the background material for the transfer of interest from Dominic Iafrate and Angelo Iafrate to Paul Jenkins was answered, Chairman Kassab called the regular public meeting to order and noted for the record that all Board members were present.

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

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

                        Mr. Gustafson next presented the Executive Director’s report.  In regards to staffing, Mr. Gustafson reported that the Board still has eight vacancies to fill.  Mr. Gustafson further advised that DMB has waived the hiring freeze so the Board could now fill these vacancies.

                        In regards to the Board’s budget, Mr. Gustafson reported that for the fiscal year 2005, from October 1, 2004 through September 30, 2005, the Board has incurred expenditures of $15,088,695 leaving the unexpended balance of 3.2 million in appropriated funding for FY 2005.  Mr. Gustafson further reported that when the books are closed for FY 2005 it is anticipated that most of the unexpended funds will be used for reimbursement of invoices, outstanding bills and other obligations.   It is also anticipated that any remaining unexpended funds will be captured by the State to pay off deficits from the general fund.

                        Mr. Gustafson also reported that the legislature signed MGCB’s budget and appropriated $19,326,000 for FY 2006.

                        Mr. Gustafson next reported that the gaming taxes for September 2005 for all three Detroit casinos were 11.452 million dollars compared to 11.117 million dollars for the same month last year.  Mr. Gustafson further reported that the State of Michigan collected $146 million in gaming taxes for fiscal year 2005.

                        Next, Mr. Gustafson updated the Board on MSP’s Board-related activities.  Mr. Gustafson advised the Board that there has been no change in staffing since the Board’s last meeting and that MSP investigated 53 criminal complaints and made 23 arrests for the month of September 2005.

                        Upon conclusion of Mr. Gustafson’s report, Chairman Kassab requested a motion to accept the recommendations of the Executive Director and the Licensing Division’s staff regarding the 78 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 Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendations regarding the requests to withdraw the supplier license applications of Fauxliage, Inc. and Russo Shebil Enterprises, Inc.

                        Chairman Kassab noted for the record that there were no representatives for either applicant present at the meeting.

                        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 Fauxliage, Inc. and Russo Shebil Enterprises, Inc. 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 the Licensing Division’s staff recommendation regarding the pending supplier license application of Miller Parking Company.

                        Chairman Kassab noted for the record that Mr. Shlome Benezra was present at the meeting on behalf of the applicant.

                        Chairman Kassab then requested that Deputy Director McMakin give a brief overview of the case.

                        Due to the fact that Mr. Benezra was employed by Jaffe, Raitt, Heuer & Weiss, Judge Friedman and Judge Stacey recused themselves from this vote, due to their acquaintance with one or more of the individuals involved with this matter.

                        After comments from Mr. Benezra, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter an order denying the supplier license application of Miller Parking Company, L.L.C., for the reasons stated in the written recommendation of the Executive Director and the Board’s Licensing Division staff.  A roll call vote was taken.

                                                          Chairman Kassab:      Aye

                                                          Judge Friedman:         Recused

                                                          Mr. Robinson:             Aye

                                                          Ms. Rom:                   Aye

                                                          Judge Stacey:             Recused

                        Motion carried.

                        The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending applications for approval of transfer of interest in Michigan Industrial Group, L.L.C. and The End Zone Chicken & Ribs, L.L.C.

                        Chairman Kassab noted for the record that there were no representatives for the applicants present at the meeting.

                        Therefore, it was moved by Judge Stacey and seconded by Ms. Rom that the Board enter orders approving the proposed transfer of interest in The Michigan Industrial Group, L.L.C. from Dominic Iafrate and Angelo Iafrate to Paul R. Jenkins and the proposed transfer of interest between Robert Barenie and Karen Barenie and The End Zone Chicken & Ribs, L.L.C., under the licensing standards and requirements of the Act and Rules.  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 application for approval of transfer of interest in Advanced Electronic Systems, Inc., from James M. Brendel to Happ Acquisition, Inc.

                        Chairman Kassab noted for the record the presence of Edward Chin, counsel for the Happ entities.

                        There being no questions from Board members, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter an order approving the proposed transfer of interest in Advanced Electronic Systems, Inc., from James Brendel to Happ Acquisition, Inc., under the licensing standards and requirements of the Act and Rules of the Board.  A voice vote was taken.

                        Motion carried.

                        The next item considered was the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending revised application for approval of transfer of interest in Happ Controls, Inc. from Happ Controls, L.L.C. to James Brendel.

                        After comments from Mr. Chin, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter an order approving the proposed transfer of interest in Happ Controls, Inc. from Happ Controls, L.L.C. to James Brendel, under the licensing standards and requirements of the Act and Rules.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the Acknowledgement of Violation of supplier licensee John Huxley Casino Equipment, L.L.C.

                        Chairman Kassab invited Deputy Director Page to give a brief overview of the violations and facts of the case.

                        After a brief summary and discussion regarding the history of the case, it was moved by Judge Stacey and seconded by Ms. Rom, that the Board accept the proposed Acknowledgment of Violation as agreed to by the MGCB staff and supplier licensee John Huxley Casino Equipment, L.L.C., 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 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 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 11:12 a.m.

                               _______________________________________

                               Patricia S. James

                               Board Secretary