STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, May 9, 2006

10:30 A.M.

MINUTES

On Tuesday, May 9, 2006, 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

                                                 Mr. Donald Robinson

                                                 Ms. Barbara Rom

                         Also attending were:

                                                 Dan Gustafson

                                                 Patty James

                                                 Insp. Ellis Stafford

                                                 Ben McMakin

                                                 John Page

                                                 Tom Barker

                                                 Jack Cahill

Business:          Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 10:41 a.m.  Chairman Kassab noted for the record the absence of Judge Stacey.  Chairman Kassab invited Dan Gustafson to give an overview of the meeting’s agenda.

                        Mr. Gustafson advised the Board of the meeting agenda items that would require the Board’s consideration, including a request for a declaratory ruling on a bankcard comp program.  He further advised the Board that there would be a presentation by MGM Grand Detroit Casino and a discussion on what the Board’s current policy is relating to supplier licensing for restaurants and field of commerce exemptions.

                        Mr. Gustafson also advised the Board that a recent newspaper article referred to the MGCB in regards to tribal gaming, but the Board does not have the authority, control or regulatory oversight for tribal gaming.  The article was referring to the agency, not the Board itself.

                        Chairman Kassab stated the next order of business was to approve the minutes from the April 11, 2006 meeting.  He requested a motion to approve the minutes from the April, 2006 meeting.

                        It was moved and seconded that the minutes of the April 11, 2006 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 fiscal year 2006, from October 1, 2005 through April 30, 2006, the Board has incurred expenditures of $7,682,000, leaving the unexpended balance of $11,644,000 in appropriated funding for FY 2006. 

                        Mr. Gustafson next reported that the casinos continue to operate 24/7 and for April 2006, the aggregate revenue in taxes for all three Detroit casinos was up just over 2 percent compared to the same month last year.  The gaming taxes for the three Detroit casinos for April 2006 were 12.821 million compared to 12.562 million for the same period last year.

                        Mr. Gustafson also advised the Board that John Page, Tom Barker and he toured the construction sites for the new MGM Grand Detroit Casino and MotorCity Casino.   Mr. Marvin Beatty, a representative for Greektown Casino, advised the Board that the casino has received the necessary approvals from the Detroit City Council and were waiting for the final financial transaction, before construction on its new casino could begin.

                        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 23 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.

                        Next, the Board considered the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the eligibility and suitability of required key persons/qualifiers of supplier licensee Limbach Company, L.L.C.

                        There being no questions from Board members, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter an order finding and concluding that Craig Montgomery and Kenneth Eugene Podolak, are eligible and suitable as required qualifiers of supplier licensee Limbach Company, L.L.C., under the licensing standards and requirements of the Act and Rules of the Board.  A voice vote was taken.

                        Motion carried.

                        Next the Board considered the Executive Director’s Report and the Licensing Division’s staff recommendations regarding the pending supplier license applications of Testing Engineers & Consultants, Inc., Western Waterproofing Company, Advanced Electronic Systems, Inc., and Roger Charles and Gregory Shubin, d/b/a Genesis Associates.

                        Again, there being no questions from Board members, it was moved by Mr. Robinson and seconded by Judge Friedman that the Board enter an order finding and concluding that Testing Engineers & Consultants, Inc., Western Waterproofing Company, Advanced Electronic Systems, Inc., and Roger Charles and Gregory Shubin, d/b/a Genesis Associates, and their qualifiers, are eligible and suitable for licensure.   A voice vote was taken.

                        Motion Carried.

                        The next item considered by the Board was the Board staff’s recommendation regarding Russo Group Enterprises, Inc.’s request to withdraw its supplier license application.

                        Chairman Kassab invited Deputy Director McMakin to give a brief overview of the case.

                        Upon conclusion of Mr. McMakin’s summary, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter an order granting the request of Russo Group Enterprises, Inc., d/b/a Lochmoor Chrysler Jeep, for withdrawal of its supplier license application.  A voice vote was taken.

                        Motion carried.

                        Next, Chairman Kassab noted for the record the presence of Mike Neubecker, VP of Finance for MGM Grand Detroit Casino.  Chairman Kassab invited Mr. Neubecker to proceed with MGM Grand Detroit Casino’s presentation on its efforts to foster economic development in the City of Detroit.

                        Upon completion of the presentation and a brief question and answer period between Board members and representatives from MGM Grand Detroit Casino, Chairman Kassab invited Mr. Gustafson to give a brief overview of the Board’s current policy regarding restaurant supplier licenses and Greektown Casino’s comp program.  Mr. Jack Cahill also gave a brief overview of the statutory and rule framework regarding this issue.

                        Upon completion of Mr. Gustafson’s and Mr. Cahill’s summaries, and after questions from Board members were answered, Chairman Kassab noted for the record the presence of Mr. Michael Atkins, appearing on behalf of First Independence Bank, and for today only, Greektown Casino.           

                        After a lengthy presentation from Mr. Atkins and discussion with Board members regarding Greektown’s proposed comp program, it was moved by Judge Friedman and seconded by Ms. Rom that the Board accept and take under advisement the request for a declaratory ruling as stated in Mr. Atkins’ letter dated April 26, 2006 and referenced in his letter of February 17, 2006.  A voice vote was taken.

                        Motion carried.

                        Further, it was moved by Ms. Rom and seconded by Judge Friedman that the Board direct the Executive Director to work with all parties involved to prepare a proposal to be presented at the next regularly scheduled Board meeting.  If unable to do so, the Board will consider the declaratory ruling request as currently submitted by Greektown Casino and First Independence Bank.  A voice vote was taken.

                        Motion carried.

                        Next, Chairman Kassab requested a motion for the Board to go into closed session.

                        Therefore, it was moved by Ms. Rom and seconded by Judge Friedman 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

                                     Ms. Rom:                         Aye

                        Motion carried.

                        There being no comments from the public, Chairman Kassab adjourned the meeting, at 1:47 p.m.

                               Patricia S. James

                               Board Secretary