STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

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

Monday, April 20, 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
                                                
                        Also attending were:

                                                Richard Kalm
                                                John Page
                                                Fred Cleland
                                                Thomas Barker
                                                D/F Lt. Vicki Johnson
                                                Donald McGehee
                                                Laurie Lander

Business:

Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 9:39 a.m.  There being no preliminary business to discuss, Chairman Kassab noted for the record that Mr. Watza was not present due to a prior commitment.

Chairman Kassab stated that the first order of business was to approve the minutes from the March 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 March 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 Lia Kincaid and Indian Gaming Auditor Holli Doyle had been hired and Records Manager Dan Ostrom had retired, leaving 14 authorized positions to be filled.

In regards to the Board's budget, Mr. Kalm reported that as of March 31, 2009, total expenditures were $8,110,011, which leaves an unexpended balance of $12,633,489 in appropriated funding for fiscal year 2009.   These funds include 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 and for the month of March 2009, the aggregate revenue and taxes for all 3 Detroit casinos were down by 3.01% compared to the same month last year.  Revenue for MGM Grand Detroit and Greektown Casino were down by 3.58% and 7.00% respectively, while MotorCity Casino was up by 0.8% compared to the same month last year.

The Final Four weekend of Friday, Saturday and Sunday revenues for MGM Grand and MotorCity Casinos was up by 12% and 6% respectively, whereas Greektown Casino was down by 5%, compared to the prior weekend.

For the month of March 31, 2009, gaming taxes for the 3 Detroit casinos were 10.92 Million compared to 9.46 Million for the same period last year.

In regards to supplier licensing and vendor registration, Mr. Kalm advised the Board that as of March 31, 2009, 3,200 active vendor exemptions are registered, 218 casino supplier companies have been granted exemptions from supplier licensing requirements, and 65 active temporary nongaming-related supplier licenses and 8 active temporary gaming-related supplier licenses are in effect.  In addition, a total of 132 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 March 31, 2009, the Board's Employee Licensing Section had issued a total of 2,688 valid occupational licenses to MGM Grand Detroit Casino employees; 1,888 valid occupational licenses to MotorCity Casino employees; and 1,645 valid occupational licenses to Greektown Casino employees.  To date, the Board has authorized the issuance of 15,988 occupational licenses to casino and supplier license employees; renewed 15,108 occupational licenses and denied 390 occupational license applications and denied 2 occupational renewal license applications.

Mr. Kalm advised the Board that the required background investigations for 87 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 he has approved the 301 renewal requests on behalf of the Board.

Next Mr. Kalm reported on the MSP Board related activity for the month of March 2009.  Mr. Kalm reported that there had been no staffing changes, still leaving 1 D/Specialist position vacant.  Also, during the month of March 2009, the MSP Gaming Section investigated 81 criminal complaints and made 23 arrests.  Mr. Kalm further stated that 10 of the complaints investigated and 7 of the arrests made were of Disassociated Persons.

Mr. Kalm further advised the Board that the Agency has entered into a Fingerprint Based RapBack Service Agreement with MSP.  This agreement provides for the storing by MSP of all submitted applicant fingerprints in the Automated Fingerprint Identification System (AFIS).  MSP will also notify the Agency of an arrest, upon receipt of criminal arrest fingerprints that match against a set of stored applicant fingerprints submitted by the Agency.

Also, the Agency will keep the criminal arrest notification information confidential and notify MSP if an employee or licensee is no longer employed or licensed by the agency.

After Chairman Kassab's questions regarding the pipe bombs that were found in MotorCity Casino's parking structure on Sunday, April 19, 2009, were answered, the Board considered for approval the recommendations of the Executive Director and the Licensing Division's staff regarding the 87 Level 1 and 2 occupational license applications.

It was moved by Judge Friedman and seconded by Ms. Rom to accept the recommendations of the Executive Director and the Licensing Division's staff for the 87 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 Bluewater Technologies Group, Inc.

There being no questions from Board members, it was moved by Ms Rom and seconded by Judge Friedman that the Board enter orders approving the transfers of interest in Bluewater Technologies Group, Inc., with a transfer of 1.8% interest from Nancy J. Billing to Tom and Sue Schoeneberger, and a subsequent transfer of 13.2% from Nancy J. Billing to Tom and Sue Schoeneberger, 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 pending supplier license applications of Fine Consulting, Inc., Jacob Music, L.L.C., Service Central, Inc. and Vision Janitorial & Facility Supply Company, Inc.

There being no questions from Board members, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter orders finding and concluding that Fine Consulting, Inc., Jacob Music, L.L.C., Service Central, Inc. and Vision Janitorial & Facility Supply Company, Inc., and their qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board.  And accordingly, grant these requests for a one-year period beginning April 20, 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 Chef Source, Inc., Conventional Carpet, Inc., Detroit Spectrum Painters, Inc., Jenkins Construction, Inc., Krystal Marketing, Inc., Loco Promos, Inc., Master Craft Carpet Service, Inc., Midwest Pro Painting, Inc., TCS John Huxley America, Inc., Tepel Brothers Printing, Inc. and Western Money Systems.

Chairman Kassab recused himself from the vote on Detroit Spectrum Painters, Inc.  and requested a separate motion and vote for this application.

First Attorney General Don McGehee advised the Board that with only 3 members present, only two could vote on Detroit Spectrum Painters, Inc. and that would not constitute a quorum.

Therefore, it was decided that Detroit Spectrum Painters, Inc. would be tabled until the May 2009 Board meeting.

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 Chef Source, Inc., Conventional Carpet, Inc., Jenkins Construction, Inc., Krystal Marketing, Inc., Loco Promos, Inc., Master Craft Carpet Service, Inc., Midwest Pro Painting, Inc., TCS John Huxley America, Inc., Tepel Brothers Printing, Inc. and Western Money Systems, 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 April 20, 2009.  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 All In Productions, L.L.P., Conway MacKenzie, Inc., HR Management Group, Inc., Kirvin Doak Communications and WTS International, 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 All In Productions, L.L.P., Conway MacKenzie, Inc., HR Management Group, Inc., Kirvin Doak Communications and WTS International, Inc. for withdrawal of their supplier license applications, based upon the Board's staff reports and recommendations.  A voice vote was taken.

Motion carried.

The next agenda item considered by the Board was the Executive Director's Report and Licensing Division's staff recommendation regarding the eligibility and suitability of Randall A. Fine, a required key person/qualifier of casino licensee Greektown Casino, L.L.C.

Mr. Kalm advised the Board that a representative from the Sault Ste. Marie Tribe was present and would like to make a public comment on this agenda item.  Chairman Kassab noted for the record the presence of Jeff Galland.

Mr. Galland advised the Board that the Tribe objected to the appointment of Mr. Fine as CEO of Greektown Casino, due to Mr. Fine's lack of experience as a casino CEO.  Mr. Galland also stated that Mr. Fine was already a consultant and that his appointment as CEO would greatly increase the cost of operation and be redundant.  The Tribe requested that the Board table this agenda item until June, at which time the bankruptcy court would be taking bids and plans of reorganization.

Chairman Kassab advised Mr. Galland that the Board was not acting on Mr. Fine's appointment as CEO for Greektown Casino, but only acting on whether Mr. Fine was eligible and suitable to be a key person/qualifier of Greektown Casino, L.L.C.

After comments from Mr. Fine, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter an order finding and concluding that Randall A. Fine be found eligible, suitable and qualified 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 for approval the order upholding the Summary Suspension Order of Plaka Café, Inc.'s vendor exemption.

Chairman Kassab acknowledged for the record the presence of Attorney General Jessica Hodgson and Michael Gordner, counsel for Plaka Café, Inc.

After comments from Ms. Hodgson and Mr. Gordner, it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter an order upholding the Summary Suspension Order of Plaka Café, Inc.'s vendor exemption 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.

Relative to the bankruptcy proceedings, Mr. Moore advised the Board that a contested hearing was held regarding Greektown Casino's motion to assume the revised development agreement with the City of Detroit.

In regards to Ms. Rom's question on whether the debtor still agreed to the Board's stipulation, which the bankruptcy judge declined to enter an order on, Dan Weiner, bankruptcy counsel for Greektown Casino, advised the Board that counsel for Greektown Casino and MGCB's bankruptcy counsel were working through issues, but no conclusion had been reached at this time.

Mr. Moore continued with his status report and advised the Board that in accordance with the amended and restated DIP agreement the debtors will file a motion by May 1st to approve bidding procedures related to the sale process and that all final bids must be received by June 1^st.

In regards to the financial status, Mr. Moore advised the Board that the financial outlook was positive and Greektown Casino was in compliance with all the financial covenants under the credit agreement.

Mr. Fine then gave an update on the new marketing strategy, the new casino floor plan, hotel operations, personnel changes, the Event Center and construction.

After Board members' questions were answered, Mr. Moore and Sid Froelich, counsel for the City of Detroit discussed the revised development agreement.

After all questions were answered, Chairman Kassab requested a motion to recess and go into closed session.

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

Motion Carried.

Next, Chairman Kassab made a proposal to reschedule the May 12, 2009, regular public meeting to May 7, 2009.  There being no disagreements in changing the next Board meeting date, it was announced that the next regular public meeting would be May 7, 2009, at 9:30 a.m.

There being no public comments, Chairman Kassab adjourned the meeting at 11:00 a.m.

____________________________

Laurie Lander, Board Secretary