STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

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

Tuesday, March 10, 2009

9:30 a.m.

MINUTES

On Tuesday, March 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
                                                Judge Benjamin Friedman
                                                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 9:36 a.m.  There being no preliminary business to discuss, Chairman Kassab noted for the record that all Board members were 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 February 10, 2009, 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 Judge Friedman and seconded by Ms. Rom that the minutes of the February 10, 2009, 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, Financial Analyst Holly Diehl and Regulation Officers Heather Gaunt and Mark Mazzonne had been hired, leaving 15 authorized positions to be filled.

In regards to the Board's budget, Mr. Kalm reported that as of February 28, 2009, total expenditures were $6,411,087.  This leaves an unexpended balance of $14,332,413 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 February 28, 2009, the aggregate revenue and taxes for all 3 Detroit casinos were up by 4.11% compared to the same month last year.  Revenue for MGM Grand Detroit, MotorCity Casino and Greektown Casino were up by 5.17%, 4.37% and 1.88% respectively, compared to the same month last year.

As of February 28, 2009, gaming taxes for the 3 Detroit casinos were 10.57 Million compared to 11.71 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 February 28, 2009, 3,181 active vendor exemptions are registered, 218 casino supplier companies have been granted exemptions from supplier licensing requirements, and 57 active temporary nongaming-related supplier licenses and 8 active temporary gaming-related supplier licenses are in effect.  In addition, a total of 133 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 February 28, 2009, the Board's Employee Licensing Section had issued a total of 2,703 valid occupational licenses to MGM Grand Detroit Casino employees; 1,896 valid occupational licenses to MotorCity Casino employees; and 1,608 valid occupational licenses to Greektown Casino employees.  To date, the Board has authorized the issuance of 15,858 occupational licenses to casino and supplier license employees; renewed 14,762 occupational licenses and denied 392 occupational license applications.

Mr. Kalm advised the Board that the required background investigations for 67 pending Level 1 and 2 licenses had been completed and would be considered for approval by the Board at today's meeting and pursuant to Board Resolution No. 2002-02, the Executive Director has approved 286 renewal requests, on behalf of the Board.

Next Mr. Kalm reported on the MSP Board related activity for the month of February 2009.  Mr. Kalm reported that there had been no staffing changes, still leaving 1 D/Specialist position vacant.  Also, during the months of February 2009, the MSP Gaming Section investigated 70 criminal complaints and made 17 arrests.  Mr. Kalm further stated that 9 of the complaints investigated and 6 of the arrests made were of Disassociated Persons.

After Chairman Kassab's questions regarding MGM Holding's financial situation were answered, the Board considered for approval the recommendations of the Executive Director and the Licensing Division's staff regarding the 67 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 67 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 Bayview Electric Company, L.L.C., Midwest Steel, Inc., NRT Technology Corporation, RAM Construction Services of Michigan, Inc. and TIE Leasing Company.

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 Bayview Electric Company, L.L.C., Midwest Steel, Inc., NRT Technology Corporation, RAM Construction Services of Michigan, Inc. and TIE Leasing Company, 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 Licensing Division's staff recommendations regarding the requests to withdrawal the supplier license applications of Cooney Engineering Company, Majestic International Spice Corporation, Mark's Quality Meats, Inc., North American Video, Inc., Palmer Moving & Storage Company and Zingerman's Bakehouse, Inc.

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 Cooney Engineering Company, Majestic International Spice Corporation, Mark's Quality Meats, Inc., North American Video, Inc., Palmer Moving & Storage Company and Zingerman's Bakehouse, Inc. for withdrawal of their supplier license applications, based upon the Board's staff reports and recommendations.  A voice vote was taken.

Motion carried.

Next the Board considered the Executive Director's Reports and Licensing Division's staff recommendations regarding the pending supplier license applications of KBD, Inc. and Palmer Moving & Storage Company.

Ms. Rom recused herself from the vote on KBD, Inc.  Chairman Kassab requested separate motions and votes for each application.

Therefore, it was moved by Mr. Watza and seconded by Judge Friedman that the Board enter an order finding and concluding that KBD, Inc. 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 March 10, 2009.  A voice vote was taken.

Motion carried.

Next it was moved by Mr. Watza and seconded by Ms. Rom that the Board enter an order finding and concluding that Palmer Moving and Storage 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 March 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 Enterprise Cap & Gowns, Inc., Eugenio Painting Company, Security by Design, Inc. and The Berline Group, Inc.

There being no questions from Board members, it was moved by Ms. Rom and seconded by Mr. Watza that the Board enter orders finding and concluding that Enterprise Cap & Gowns, Inc., Eugenio Painting Company, Security by Design, Inc. and The Berline Group, Inc., and their 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 requests for renewal for a one-year period beginning March 10, 2009.  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 denial of the supplier license application of Crystal Clear Industries, Inc.

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

Therefore, it was moved by Mr. Watza and seconded by Ms. Rom that the Board enter an order denying the request of Crystal Clear Industries, Inc. under the licensing standards and requirements of the Act and Rules of the Board.  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, Development Agreement compliance with the City of Detroit and casino management board operations.

Mr. Chuck Moore advised the Board that the Fine Group was currently acting as consultants and that a motion had been made to the Bankruptcy court for approval and applications made for  Board approval to hire Mr. Randy Fine as CEO, Chris Colwelll as General Manager and Amanda Totaro as Vice President of Marketing.

Mr. Moore further stated that the additional $46 million in additional DIP financing would be sufficient to complete construction of the complex and operational costs through 2009.

Mr. Moore also advised the Board that a management presentation to a select group of bidders had occurred and final bids were due March 16, 2009.  However, Mr. Moore cautioned that the sale of the casino was not imminent and that reorganization is still being considered.

Regarding the hotel, Mr. Moore advised  that there has been an 80-100% weekend occupancy rate, a 60% week day occupancy rate and an overall occupancy rate of 70%.  Mr. Moore further advised  that a walk through had occurred and all rooms were open and ready for occupancy as of February 15, 2009, which would make Greektown Casino eligible for a tax roll back on March 17, 2009.   However, Mr. Moore did concede that there were issues to be worked out with the City of Detroit before a letter of Development Agreement compliance would be issued by the City.

After Ms. Rom's questions regarding the responsibility and level of authorization changes between the Fine Group and the newly appointment management board, the Board considered for approval Greektown Casino, L.L.C.'s request for final approval of amended Debt Transaction Executed February 20, 2009.

There being no questions from Board members, it was moved by Ms. Rom and seconded by Judge Friedman to enter an order granting the request of Greektown Casino, L.L.C. for final approval of amended debt transaction executed February 20, 2009.  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 Judge Friedman 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
                                             Judge Friedman:                       Aye
                                             Ms. Rom:                                 Aye
                                             Mr. Watza:                               Aye

Motion Carried.

Next, Chairman Kassab made a proposal to reschedule the April 14, 2009, regular public meeting to April 16, 2009.  There being no disagreements in changing the next Board meeting date, it was announced that the next regular public meeting would be April 16, 2009, at 9:30 a.m. 

There being no public comments, Chairman Kassab adjourned the meeting at 10:23 a.m.

____________________________
Laurie Lander, Board Secretary