STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD
PUBLIC MEETING

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

Tuesday June 9, 2009
9:30 a.m.

MINUTES

On Tuesday June 9, 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
                                     Mr. Michael Watza                          

Also attending were:

                                     Richard Kalm
                                     Fred Cleland
                                     Thomas Barker
                                     John Page
                                     D/F Lt. Robert Hendrix
                                     Donald McGehee
                                     Diane Brown                                             

Business:

Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 9:37 a.m.   There being no preliminary business to discuss, Chairman Kassab noted for the record that Ms. Rom was not present due to a prior commitment.

Chairman Kassab stated that the first order of business was to approve the minutes from the May 7, 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 Mr. Watza that the minutes of the May 7, 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, Peggy Hagadone and Shamika Scott had been hired as Receptionist/Secretary and Auditor, respectively, effective May 18, 2009.  He also stated that Regulation Officer Scott Thomas had left the Board effective April 19, 2009, leaving 16 authorized positions to fill.

In regards to the Board's budget, Mr. Kalm reported that as of May 31, 2009, total expenditures were $11,379,837, which leaves an unexpended balance of $9,363,663 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 May 2009, the aggregate revenue and taxes for all 3 Detroit casinos was down by 4.25% compared to the same month last year.  Revenue for MGM Grand Detroit and MotorCity Casinos were down by 10.9% and 3.6% respectively, while Greektown Casino was up by 7.2% compared to the same month last year.

For the month ending May 31, 2009, gaming taxes for the 3 Detroit casinos were 10.750 Million compared to 11.093 Million for the same period last year.

In regards to supplier licensing and vendor registration, Mr. Kalm advised the Board that as of May 31, 2009, 3,229 active vendor exemptions are registered, 213 casino supplier companies have been granted exemptions from supplier licensing requirements, and 60 active temporary nongaming-related supplier licenses and 6 active temporary gaming-related supplier licenses are in effect.  In addition, a total of 127 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 May 31, 2009, the Board's Employee Licensing Section had issued a total of 2,644 valid occupational licenses to MGM Grand Detroit Casino employees; 1,864 valid occupational licenses to MotorCity Casino employees; and 1,734 valid occupational licenses to Greektown Casino employees.  To date, the Board has authorized the issuance of 16,169 occupational licenses to casino and supplier license employees; renewed 15,365 occupational licenses and denied 392 occupational license applications.

Mr. Kalm advised the Board that the required background investigations for 45 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 207 renewal requests on behalf of the Board.

Next, Mr. Kalm reported on the MSP Board related activity for the month of May 2009.  Mr. Kalm reported that D/Specialist, Cynthia Edwards has transferred out of Gaming to the Sterling Heights Laboratory leaving two positions vacant.  Also, during the month of May 2009, the MSP Gaming Section investigated 56 criminal complaints and made 25 arrests.  Mr. Kalm further stated that 12 of the complaints investigated and 7 of the arrests made were of Disassociated Persons.

Next the Board considered for approval the recommendations of the Executive Director and the Licensing Division's staff regarding the 45 level 1 and 2 occupational license applications, one of which was denied.  Also, the Board considered for approval, the amended occupational license list from the May 7, 2009 public meeting.

Therefore, It was moved by Mr. Watza and seconded by Judge Friedman to accept the recommendations of the Executive Director and the Licensing Division's staff for the 45 Level 1 and 2 occupational license applications and the amended occupational license list from the May 7, 2009 meeting. A voice vote was taken.

Motion carried.

Next the Board considered the Executive Director's Report and Licensing Division's staff recommendation regarding the transfer of interest in Ebel Signorelli Welke, LLC.

There being no questions from Board members, it was moved by Judge Friedman and seconded by Mr. Watza that the Board enter an order approving the transfer of interest in Ebel Signorelli Welke, LLC. 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 renewal applications of Gasser Chair Company, Inc., Northern Lakes Seafood & Meats, LLC, Millennium Management Group, LLC, Shuffle Master, Inc. and Simon & Leeman Corporation.

There being no questions from Board members, it was moved by Mr. Watza and seconded by Judge Friedman that the Board enter orders approving the supplier license renewal requests of Gasser Chair Company, Inc., Northern Lakes Seafood & Meats, LLC, Millennium Management Group, LLC, Shuffle Master, Inc. and Simon & Leeman Corporation.  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 1^st Choice Distributors, LLC, Micro Source, Inc., Socios Holdings, Inc.

There being no questions from Board members, it was moved by Judge Friedman and seconded by Mr. Watza that the Board enter orders finding and concluding that 1^st Choice Distributors, LLC, Micro Source, Inc., and Socios Holdings, 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 June 9, 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 requests to withdrawal the pending supplier license applications of McInerney, Inc., and Star Trax Corporate Events, LLC.

There being no questions from Board members, it was moved by Mr. Watza and seconded by Judge Friedman that the Board enter orders granting the requests of McInerney Inc. and Star Trax Corporate Events, LLC  for withdrawal of  their supplier license applications, based upon the Board staff's reports and recommendations.  A voice vote was taken.

Motion carried.

Upon Chairman Kassab's request Mr. Joel Applebaum, on behalf of the official committee of the unsecured creditors of Greektown, gave a brief presentation on a flip chart related to the structure of the proposed repayment plan.  Mr. Weiner, counsel for the debtors also addressed the Board regarding the plan and the disclosure statement which are pending before the bankruptcy court.  Mr. Weiner also informed the Board that the bankruptcy court intends to hold a hearing on the plan in July.

Mr. Chuck Moore representing the 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. Moore also stated that Greektown Casino hoped to have all of the subcontracts completed by June 30^th and the final payments made in the beginning of August.  Mr. Moore also stated that all payments related to the construction are up to date.

After Board members' questions were answered regarding the increase of revenues, bankruptcy costs, 2005 covenants and the hotel's profitability, Chairman Kassab stated that from now on the Board would be taking public comment before going into closed session.  There were 3 members of the Sault Ste Marie Chippewa Indian Tribe who addressed the Board with regard to Greektown's ownership.

Chairman Kassab stated that with the bankruptcy, the matter has been taken out of the Board's hands.

Next, Mr. Kassab stated that the Board needed to consider a motion to go into closed session immediately following public comment 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.

Therefore, it was moved by Judge Friedman and seconded by Mr. Watza that the Board consider a motion to go into closed session immediately following public comment 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
Mr. Watza                              Aye

Motion Carried.

After the closed session the public meeting was reconvened and Mr. Kassab announced that the Board's next regular public meeting will be August 11, 2009, at 9:30 a.m.

There being no other business, Chairman Kassab adjourned the meeting at 11:49 a.m.


____________________________
Diane Brown, Board Secretary