STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, August 8, 2006

9:00 A.M.

MINUTES

On Tuesday, August 8, 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

                                                 Mr. Donald Robinson

                                                 Ms. Barbara Rom

                                                 Judge Michael Stacey

                         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 9:07 a.m.  Ms. Rom asked Mr. Gustafson to give an update on the Greektown restaurant comp program.

                        Upon conclusion of Mr. Gustafson’s update, Chairman Kassab noted for the record the absence of Board member, Judge Benjamin Friedman.  

                        Next Chairman Kassab called the meeting to order and stated the first order of business was to approve the minutes from the June 13, 2006 regular public meeting and the June 29, 2006 special public meeting.  He requested a motion to approve the minutes from the June meetings.

                        It was moved and seconded that the minutes of the June 13, 2006 and June 29, 2006 meetings be approved. 

Motion carried.

                        Mr. Gustafson next presented the Executive Director’s report.  Mr. Gustafson advised the Board that Karen Finch, Record Section Supervisor, Sara Botke and Matthew Clark, Financial Analysts, Gary Hough, Regulation Officer and Ardrenna Lenton and Alice Jacob, Auditors had been hired since the last meeting. 

                        In regards to the Board’s budget, Mr. Gustafson reported that for fiscal year 2006, from October 1, 2005 through July 31, 2006, the Board has incurred expenditures just over 11 million, leaving the unexpended balance of $8.3 million in appropriated funding for FY 2006, which includes funds for anticipated reimbursement for expenditures by the Attorney General’s Office and Michigan State Police. 

                        Mr. Gustafson next reported that the casinos continue to operate 24/7 and for July 2006, the aggregate revenue in taxes for all three Detroit casinos was up 2.63 percent compared to the same month last year.  The gaming taxes for the three Detroit casinos for May 2006 were 13.319 million compared to 12.9 million for the same period last year.

                        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 131 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.

                        Chairman Kassab next invited Deputy Director John Page, to give a brief summary of Greektown Casino’s request for approval of the construction plans for its permanent casino.

                        Upon conclusion of Mr. Page’s summary, Chairman Kassab stated that the next agenda item was a presentation by Greektown Casino regarding these construction plans.  He also noted for the record the presence of Greg Collins, VP in Development and Management Board Representative, Mike Leinweber, Construction Manager for Greektown Casino and Geoffrey Harrison, architect for SDG.

                        Upon conclusion of Greektown Casino’s presentation and questions from Board members were answered, it was moved by Judge Stacey and seconded by Ms. Rom that the Board enter an order approving construction plans for the permanent casino for Greektown Casino, L.L.C.  A voice vote was taken.

                        Motion carried.

                        Next, the Board considered the Executive Director’s Reports and the Licensing Division’s staff recommendations regarding the eligibility and suitability of required key persons/qualifiers of casino licensees MGM Grand Detroit and MotorCity Casino.

                        There being no questions from Board members, it was moved by Mr. Robinson and seconded by Judge Stacey that the Board enter orders finding and concluding that Michael N. Neubecker, is eligible and suitable as a required qualifier of casino licensee MGM Grand Detroit, L.L.C., and William Cummings, Sharon Hall, James Cone, and Jacqueline Woods, are eligible and suitable as required qualifiers of casino licensee Detroit Entertainment, 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 Reports and the Licensing Division’s staff recommendations regarding the pending supplier license applications of Solomon Friedman Advertising, L.L.C., Ceco Concrete Construction of Michigan, L.L.C., and Gardiner C. Vose, Inc.

                        Chairman Kassab noted for the record the presence of Bob Stocker, counsel for Solomon Friedman.

                        Again, there being no questions from Board members, it was moved by Ms. Rom and seconded by Judge Stacey that the Board enter orders finding and concluding that Solomon Friedman Advertising, L.L.C., Ceco Concrete Construction of Michigan, L.L.C. and Gardiner C. Vose, Inc., and its 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 recommendations regarding National Industrial Painting Company’s and Unique Food Management, Inc.’s requests to withdraw their supplier license applications.

                        There being no questions from Board members, it was moved by Judge Stacey and seconded by Mr. Robinson that the Board enter orders granting the requests of National Industrial Painting Company and Unique Food Management, Inc., for withdrawal of their supplier license applications.  A voice vote was taken.

                        Motion carried.           

                        The Board next considered the Executive Director’s Report and Licensing Division’s staff recommendation to issue a notice of deficiency to Harvard Consulting, Engineering and Construction Group, Inc.

                        After questions from Board members were answered, it was moved by Ms. Rom and seconded by Judge Stacey that the Board enter an order to issue a notice of deficiency to Harvard Consulting Engineering and Construction Group, Inc., to allow applicant 15 days to correct deficiency, and to notify applicant of a potential denial of its application if it fails to meet aforementioned criteria.  A voice vote was taken.

                        Motion carried.

                        The next order of business was to consider the Executive Director’s Report and Licensing Division’s staff recommendation regarding the transfer of interest in supplier licensee Paltronics, Inc.

                        There being no questions from Board members, it was moved by Mr. Robinson and seconded by Judge Stacey that the Board enter an order approving the proposed transfer of ownership interest in supplier licensee Paltronics, Inc., by and between Angelo Palmisano and Terry Cooper, 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 acceptance of Acknowledgement of Violation of casino licensee Greektown Casino.

                        After a brief summary of the violation from Mr. Page and comments from Mr. Olisaeloka Dallah, VP of Compliance for Greektown Casino, 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 Board’s staff and the casino licensee Greektown Casino, L.L.C., and issue an order adopting, accepting, and incorporating the Acknowledgement of Violation as the Board’s final decision.  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 Stacey 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

                                     Mr. Robinson:                  Aye

                                     Ms. Rom:                         Aye

                                     Judge Stacey:                  Aye

                        Motion carried.

                        Next it was moved by Judge Stacey and seconded by Ms. Rom that the Board change the time for the September 12, 2006 regular public meeting to 10:00 a.m.  A voice vote was taken.

                        Motion carried.

                        There being no comments from the public, Chairman Kassab adjourned the meeting at 9:46 a.m.

                               Patricia S. James

                               Board Secretary