STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING
Cadillac Place
3062 W. Grand Blvd., Suite L-700
Detroit, Michigan

Tuesday, February 13, 2007
10:00 A.M.

MINUTES

On Tuesday, February 13, 2007, 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
  Ms. Barbara Rom
  
 Also attending were:

  Tom Barker
  Patty James
  D/Lt. Pam Benzing
  John Page
  Jack Cahill
  
    
Business: Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 10:02 a.m.    There being no preliminary matters to dispense with, Chairman Kassab called the meeting to order, and noted for the record that the Governor has not yet made an appointment for the vacant board seat.

Chairman Kassab stated the first order of business was to approve the minutes from the December 4, 2006 special meeting and the December 12, 2006 regular public meeting.  Chairman Kassab noted that all Board members had previously received the minutes, and asked if there were any questions or concerns.

It was moved and seconded that the minutes of the December 4th and 12th, 2006 meetings be approved.  Motion carried.  

Mr. Barker next presented the Executive Director's report.  Mr. Barker advised the Board that Chen Tsai had been hired as an auditor in the Board's Enforcement Division, Gaming Lab Section.  Mr. Barker further reported that two employees have left Board employment, leaving 8 positions to fill.

In regards to the Board's budget, Mr. Barker reported that for fiscal year 2007, from October 1, 2006 through January 31, 2007, the Board has incurred expenditures of 4.8 million, leaving the unexpended balance of 14.9 million in appropriated funding for FY 2007, which includes funds for anticipated reimbursement for expenditures by the Attorney General's Office and Michigan State Police.

Mr. Barker next reported that the casinos continue to operate 24/7 and for January 2007, the aggregate revenue in taxes for all three Detroit casinos was up by 4.84 percent compared to the same month last year.  The gaming taxes for the three Detroit casinos for November 2006 were 13.2 million compared to 12.6 million for the same period last year.

Upon conclusion of Mr. Barker's report, Chairman Kassab requested a motion to accept the recommendations of the Executive Director and the Licensing Division's staff regarding the 84 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 second agenda item was a presentation by Greektown Casino regarding a future request for Board approval of the allocations under the Greenshoe Facility, which had previously been approved.  

Chairman Kassab noted for the record the presence of Michael DuBay and Nelson Westrin, counsel for Greektown Casino, and Cliff Vallier, Chief Financial Officer and Assistant General Manager for Greektown Casino.

Upon conclusion of Greektown Casino's presentation and questions from Board members were answered, Chairman Kassab introduced the next agenda item, which was the Board's acceptance of the Acknowledgement of Violation of supplier licensee Atronic Americas, Inc.

Chairman Kassab invited Mr. Page to give a brief overview of the case.  Chairman Kassab also acknowledged the presence of Todd Gerber, Regulatory Compliance Manager for Atronic Americas, Inc.

Upon conclusion of Mr. Page's comments, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board accept the proposed Acknowledgment of Violation as agreed to by the MGCB staff and supplier licensee Atronic Americas, Inc., 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.

Next the Board considered the Executive Director's Reports and the Licensing Division's staff recommendations regarding the pending applications for transfers of ownership interest in Cech Corporation, Gasser Chair Company, and Chef Source, Inc.

There being no questions from Board members, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter orders approving the proposed applications for transfers of ownership interest in Cech Corporation, Gasser Chair Company, Inc. and Chef Source, Inc.   A voice vote was taken.

Motion carried.

The Board next considered the Executive Director's Reports and the Licensing Division's staff recommendations regarding the pending supplier license applications of Denn-Co Construction, Inc., The Fred Christen & Sons, Company, Cives Corporation, The William C. Reichenbach Company and Security By Design, Inc.

Again, there being no questions from Board members, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter orders finding and concluding that Denn-Co Construction, Inc., The Fred Christen & Sons Company, Cives Corporation, The William C. Reichenbach Company and Security By Design, Inc., and their qualifiers, are eligible and suitable for licensure.  A voice vote was taken.
    
Motion carried. 

Next the Board considered the Executive Director's Reports and the Board staff's recommendations regarding the requests to withdraw the supplier license applications of Chicago Beef Company, US Builders Group, Inc. and Bentor, L.L.C.

After Ms. Rom recused herself due to professional reasons related to the Chicago Beef Company, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board enter orders granting the requests of Chicago Beef Company, US Builders Group, Inc. and Bentor, L.L.C., for withdrawal of their supplier license applications.  A voice vote was taken.
  
Motion carried.

The next item considered by the Board was the Proposal for Decision in the matter of the disciplinary action of occupational licensee Juanita Marzette-Smith.

Chairman Kassab invited Assistant Attorney General Melinda Leonard to give a brief overview of the case.

Upon conclusion of Ms. Leonard's overview, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter a final decision and order in the matter of the revocation of Juanita Marzette-Smith's occupational license, accepting, adopting, and incorporating the Administrative Law Judge's Proposal for Decision in the matter and revoking Juanita Marzette-Smith's occupational license.  A voice vote was taken.

Motion carried.

Next Chairman Kassab requested a motion 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 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
  
    
 Motion carried.

 For the public comment portion of the meeting, Chairman Kassab noted for the record the presence of Mr. Ray Filary. 

Upon completion of Mr. Filary's comments regarding Resolution No. 2003-007, regarding licensing exemptions and waivers for large corporations listed on the stock exchange, Chairman Kassab adjourned the meeting at 10:37 a.m.
 

 
 
  
  Patricia S. James
  Board Secretary