STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

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

Tuesday, February 10, 2009

9:30 a.m.

MINUTES

On Tuesday, February 10, 2009, the Michigan Gaming Control Board held a public meeting at the Board office in the Cadillac Place, 3062 W. Grand Boulevard, Suite L-700, Detroit, Michigan.

Present:          In attendance were the following Board members:

                                                Mr. Damian Kassab, Chairman
                                                Ms. Barbara Rom
                                                Mr. Michael Watza

                        Also attending were:

                                                Richard Kalm
                                                John Page
                                                Fred Cleland
                                                Thomas Barker
                                                Insp. Ellis Stafford
                                                Donald McGehee
                                                Laurie Lander

Business:

Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 9:38 a.m.  There being no preliminary business to discuss, Chairman Kassab noted for the record that Judge Friedman was not present and the vacant board seat has not yet been filled.

Chairman Kassab stated that the first order of business was to approve the minutes from the December 17, 2008, 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 then moved by Mr. Watza and seconded by Ms. Rom that the minutes of the December 17, 2008 meeting be approved.  A voice vote was taken.

Motion carried.

Next Mr. Kalm presented the Executive Director's report.  Mr. Kalm reported that since the last Board meeting, 3 staff members resigned from the Board, 2 new staff members were hired and 1 staff member was promoted, leaving 18 authorized positions to be filled.  He further advised that of those remaining 18 positions, the Board currently had authorization to fill 11.

In regards to the Board's budget, Mr. Kalm reported that as of January 31, 2009, total expenditures were $5,392,725.  This leaves an unexpended balance of $15,350,775 in appropriated funding for fiscal year 2009, which includes funds for anticipated expenditures by the Attorney General's Office and the Michigan State Police.

Mr. Kalm next reported that the casinos continue to operate 24/7.  As of January 31, 2009, the aggregate revenue and taxes for all 3 Detroit casinos were down by 5.83% compared to the same month last year.  Revenue for MGM Grand Detroit, MotorCity Casino and Greektown Casino were down by 1.88%, 6.46% and 11.63% respectively, compared to the same month last year.

As of January 31, 2009, gaming taxes for the 3 Detroit casinos were 9.63 Million compared to 11.87 Million for the same period last year.  The decrease in State of Michigan's gaming tax revenue is due to the tax rollback approved for MGM Grand Detroit Casino and MotorCity Casino.

In regards to supplier licensing and vendor registration, Mr. Kalm advised the Board that as of January 31, 2009, 3,169 active vendor exemptions are registered, 223 casino supplier companies have been granted exemptions from supplier licensing requirements, and 50 active temporary nongaming-related supplier licenses and 8 active temporary gaming-related supplier licenses are in effect.  In addition, a total of 145 full annual supplier licenses have been granted by the Board and to date, remain in effect.

In regards to employee licensing, Mr. Kalm advised the Board that as of January 31, 2009, the Board's Employee Licensing Section had issued a total of 2,715 valid occupational licenses to MGM Grand Detroit Casino employees; 1,918 valid occupational licenses to MotorCity Casino employees; and 1,610 valid occupational licenses to Greektown Casino employees.  To date, the Board has authorized the issuance of 15,759 occupational licenses to casino and supplier license employees; renewed 14,470 occupational licenses and denied 392 occupational license applications.

Mr. Kalm advised the Board that the required background investigations for 64 pending Level 1 and 2 licenses had been completed and would be considered for approval by the Board at today's meeting.

Next Mr. Kalm reported on the MSP Board related activity for the months of December 2008 and January 2009.  In regards to staffing, Mr. Kalm reported that D/Specialists Cynthia Edwards and Derrick Jordan have joined the Gaming Section staff, leaving 1 D/Specialist position vacant.  Also, during the months of December 2008 and January 2009, the MSP Gaming Section investigated 132 criminal complaints and made 25 arrests.

Mr. Kalm next reported that all staff and office functions from the East Lansing office have been relocated to the Lottery building.  He also reported that the Licensing Division and Records Section were now located in Detroit and the new MSP Gaming Section office in Cadillac Place was scheduled for completion this summer and the MGCB office remodel and reconfiguration would be completed by the end of 2009.

Next Mr. Kalm noted that all Board members had previously received the 2008 MGCB Year End Report and he wanted to take a few minutes and summarize some of the Board's activity for 2008.

Mr. Kalm's summation detailed staffing, Disassociated Persons List, processed records, use of Board hearing room, new servers and case management programs, completed audits, resolution of gaming device submissions, patron complaints, disciplinary proceedings, occupational, supplier and vendor applications/investigations, MSP arrests, criminal and Special Operations Team investigations.

Questions were raised by Board members regarding redemption of abandoned credits, counterfeiting, board hearing room fees, vendor comp program and charitable gaming millionaire parties.

After all questions from Board members were answered, the Board considered for approval the recommendations of the Executive Director and the Licensing Division's staff regarding the 64 Level 1 and 2 occupational license applications.

It was moved by Ms. Rom and seconded by Mr. Watza to accept the recommendations of the Executive Director and the Licensing Division's staff for the 64 Level 1 and 2 occupational license applications.  A voice vote was taken.

Motion carried.

Next the Board considered the Executive Director's Reports and Licensing Division's staff recommendations regarding the transfers of interest in Gasser Chair Company, GEMACO, Inc. and Seabury/OCI Advisors, L.L.C.

There being no questions from Board members, it was moved by Mr. Watza and seconded by Ms. Rom that the Board enter orders approving the transfers of interest in Gasser Chair Company, GEMACO, Inc. and Seabury/OCI Advisors, 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 Licensing Division's staff recommendation regarding the ligibility and suitability of William Pickard a required key person/qualifier of casino licensee MGM Grand Detroit, L.L.C.

Chairman Kassab noted for the record that neither Mr. Pickard nor any representative from MGM Grand Detroit were present at the meeting.

There being no questions from Board members, it was moved by Ms. Rom and seconded by Mr. Watza that the Board enter an order finding and concluding that William Pickard be found eligible and suitable for licensure 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 Licensing Division's staff recommendation regarding the pending supplier license application of The Certif-A-Gift Company.

There being no questions from Board members, it was moved by Mr. Watza and seconded by Ms. Rom that the Board enter an order finding and concluding that The Certfi-A-Gift Company and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board.  And accordingly, grant the request for a one-year period beginning February 10, 2009.  A voice vote was taken.

Motion carried.

The Board next considered the Executive Director's Reports and Licensing Division's staff recommendations regarding the pending supplier license renewal reports of Cannon Electric Company, Del Bene Produce, Inc., Denn-CO Construction, Inc., LaGrasso Brothers, Inc., Michigan Industrial Group, L.L.C., RAM Construction Services of Michigan, Inc. and Tre Builders, L.L.C.

After Ms. Rom's questions regarding conditions imposed on Cannon Electric Company were answered, it was moved by Ms. Rom and seconded by Mr. Watza that the Board enter orders finding and concluding that Cannon Electric Company, Del Bene Produce, Inc., Denn-CO Construction, Inc., LaGrasso Brothers, Inc., Michigan Industrial Group, L.L.C., RAM Construction Services of Michigan, Inc. and Tre Builders, L.L.C., and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Administrative Rules of the Board.  And accordingly, grant the request for renewal for a one-year period beginning February 10, 2009.  A voice vote was taken.

Motion carried.

Next the Board considered the Executive Director's Report and Licensing Division's staff recommendation regarding the request to withdrawal the supplier license application of G.L.J. Bakery Distributors, L.L.C.

After Ms. Rom's questions were answered, it was moved by Mr. Watza and seconded by Ms. Rom that the Board enter an order granting the request of G.L.J. Bakery Distributors, L.L.C. for withdrawal of its supplier license application, based upon the Board's staff report and recommendation.  A voice vote was taken.

Motion carried.

Upon Chairman Kassab's request Mr. Chuck Moore of Conway MacKenzie & Dunleavy, financial advisors for Greektown Casino, gave a status report pursuant to the Board's June 10, 2008 show cause order.

Mr. Moore provided an update to the bankruptcy court proceedings, financial status, exit paths, operations and casino management board operations.

Mr. Frank Sellman, a representative of Moelis & Company, gave a brief outline of events to take place if an Asset Purchase Agreement is executed by May 1^st.  Also, Randy Fine of Fine Point Group gave a brief summary of his company and the company's contract with Greektown Casino, which was to consult and advise the casino on how to improve its operating performance.

After Board members' questions were answered, Mr. Moore, Mr. Dan Weiner and Ms. Melissa Langridge endeavored to answer the Board members' questions relative to the status of Greektown's Casino Management Board operations and the lack of progress in the appointment of 3 board members.

Chairman Kassab then recessed the meeting at 11:30 a.m.

Chairman Kassab reconvened the meeting at 11:49 a.m.

After all board members' questions were answered, the Board considered for approval Greektown Casino, L.L.C.'s request to execute amended and restated senior secured superpriority debtor-in-possession credit agreement.

There being no questions from Board members, it was moved by Ms. Rom and seconded by Mr. Watza to enter an order granting the request of Greektown Casino, L.L.C. for interim conditional approval for request to execute amended and restated senor secured superpriority debtor-in-possession credit agreement with conditions as set forth in the order proposed by Board staff.  A voice vote was taken.

Motion carried.

Chairman Kassab then requested a motion to recess and go into closed session.

Therefore, it was moved by Mr. Watza and seconded by Ms. Rom, that the Board recess and go into closed session 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 the individuals placed on the Board's Dissociated Persons List since the Board's last public meeting as required by the Act.

A roll call vote was taken.

                        Chairman Kassab:                        Aye
                         Ms. Rom:                                    Aye
                        Mr. Watza:                                  Aye

Motion Carried.

There being no public comments, Chairman Kassab adjourned the meeting at 12:29 p.m.

____________________________
Laurie Lander, Board Secretary