STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

TUESDAY, March 18, 2003

6:00 P.M.

MINUTES

On Tuesday, March 18, 2003, 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:

                                                Judge Roman S. Gribbs, Chairman

                                                Rich Davis

                                                Judge Michael Stacey

                        Also attending were:

                                                Daniel Gustafson

                                                Patty James

                                                Eric Eggan

                                                Inspector Ellis Stafford

                                                Ben McMakin

Business:          The meeting was called to order at 6:05 p.m. by Board Chairman Roman Gribbs. Chairman Gribbs noted for the record that Judge Ford and Larry Garberding were not in attendance, but there was a quorum.  Chairman Gribbs further advised that copies of tonight’s agenda were available for the public at the receptionist’s desk.

                        Chairman Gribbs stated that the Board members have received copies of the minutes from the last Board meeting and there being no comments, changes or corrections to the minutes, he requested a motion to approve the minutes from the February 11, 2003 meeting.

                        It was moved and seconded that the minutes of the February 11, 2003 meeting be approved.  Motion carried.

                        Dan Gustafson next presented the Executive Director’s report.  With regards to staffing, Mr. Gustafson advised the Board that three new employees were hired and several staff changes had occurred in the past month.  DeWoyne White, Elizabeth Orr and Angela Castleberry were hired as auditors for the Audit Section.  Mr. Gustafson further advised that Sandra Johnson was selected to fill the Disassociated Persons Coordinator position, Charles Benson was promoted to a regulation officer and Jim Bridgewater was selected as the new Gaming Lab Manager.  Mr. Gustafson further advised the Board that due to the hiring freeze the 7 remaining authorized positions may not be filled in a timely manner.

                        Mr. Gustafson proceeded to give an update regarding the Board’s budget.  Mr. Gustafson reported that the Board has incurred expenditures in the amount of $4,805,751 from October 1, 2002 through February 28, 2003, leaving the unexpended balance of $11,824,449 in appropriated funding for the remainder of the fiscal year, which ends September 30, 2003.

                        Mr. Gustafson next advised the Board that through February 2003, the aggregate casino revenues for all three Detroit casinos did not exceed the revenues generated in the same month of 2002.  The aggregate revenue and taxes for all three casinos in February were down by 7.08%, compared to the same month last year.

                        Mr. Gustafson then proceeded to update the Board on the status of the issuance of temporary supplier licenses, full supplier licenses, vendor registrations, and supplier licensing exemptions, as well as the status of the issuance of temporary and permanent occupational licenses for the three casinos.

                        Mr. Gustafson also reported that the Licensing Division has completed the required background investigations on 177 pending Level 2 occupational license applications, which the Board would be considering during the business portion of the meeting. Mr. Gustafson further reported that the Licensing Division has completed its investigations on 128 occupational license renewal requests, which he has approved pursuant to Board Resolution #2002-02.

                        Upon conclusion of Mr. Gustafson’s report, Judge Gribbs proceeded to the first item on the business agenda.

                        The Board proceeded to consider the Licensing Division’s staff recommendations regarding 177 pending Level 2 occupational license applications. Staff recommended issuance of 175 license applications and denial of 2 license applications for reasons specified in the related background investigative reports and Exhibit 1.

                        Chairman Gribbs advised the Board that Ben McMakin, Deputy Director of Licensing, was present to answer any questions the Board members might have concerning the Licensing Division’s staff recommendations regarding the pending occupational license applications.

The Board having no questions, it was moved by Judge Stacey and seconded by Mr. Davis that the Board enter an order accepting and adopting the Licensing Division’s staff recommendations regarding the 177 Level 2 occupational license applications as summarized in Exhibit 1, and also directing that the Executive Director issue occupational licenses or notices of denial to the named applicants in accordance with the staff’s written recommendations.  The following roll call vote was then taken on the motion:

      Chairman Gribbs:      Aye

      Mr. Davis:      Aye

      Judge Stacey:      Aye

                        Motion carried.

The next order of business was to consider the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the eligibility and suitability of Dennis Wayne McKelvie as a required key person/qualifier of casino licensee Greektown Casino, L.L.C., Board File Number GTC-2003-001.

Judge Gribbs once again acknowledged Mr. McMakin’s presence to answer any questions the Board may have.  Judge Gribbs further noted for the record that neither Mr. McKelvie nor any representative for Greektown Casino, L.L.C. were present at the meeting.

                        The Board having no questions, it was moved by Mr. Davis and seconded by Judge Stacey that the Board enter an order finding Dennis Wayne McKelvie eligible and suitable as a required qualifier of casino licensee Greektown Casino, L.L.C., under the licensing standards and requirements of the Michigan Gaming Control and Revenue Act, as amended, and Administrative Rules of the Board, based upon the background investigation report and recommendation of the Executive Director and the Board’s Licensing Division staff.  The following roll call vote was taken on the motion:

      Chairman Gribbs:      Aye

      Mr. Davis:      Aye

      Judge Stacey:      Aye

                        Motion carried.

The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending nongaming-related supplier license application of Jenkins Construction, Inc., Board File Number SL000137-03-001.

Chairman Gribbs noted for the record the attendance of attorney, Mr. Scott Sirich and Mr. James Jenkins, President of Jenkins Construction, Inc.

Chairman Gribbs next acknowledged Mr. McMakin’s presence and requested a brief statement indicating the reasons for denial of the supplier license application.

Upon conclusion of Mr. McMakin’s comments, Mr. Sirich addressed the Board.  There being no questions from Board members for Mr. Sirich, Mr. Eric Eggan, Assistant Attorney General, next addressed the Board.  

After Mr. Sirich’s brief rebuttal to Mr. Eggan’s comments, it was moved by Judge Stacey and seconded by Mr. Davis that the Board enter an order denying the license of Jenkins Construction, Inc., based on violations of 7b of the Act.  The following roll call vote was taken on the motion:

      Chairman Gribbs:      Aye

      Mr. Davis:      Aye

      Judge Stacey:      Aye

                        Motion carried.

The next agenda item to be considered was the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending nongaming-related supplier license application of the PBG Michigan, L.L.C., Board File Number SL000972-03-001.

Once again, Chairman Gribbs recognized Deputy Director McMakin’s presence and also noted for the record that a written notice was sent to PBG Michigan, L.L.C. advising that the Board would consider this application at the meeting.  It was further noted that there were no representatives for PBG Michigan, L.L.C. present at the meeting.

Mr. Davis moved and Judge Stacey seconded that the Board enter an order finding and concluding that PBG Michigan, L.L.C., and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Michigan Gaming Control and Revenue Act, as amended, and Administrative Rules of the Board, and, accordingly, granting the nongaming-related supplier license application based upon the background investigation report and recommendation of the Executive Director and the Board’s Licensing Division staff.  The following roll call vote was taken on the motion:

      Chairman Gribbs:      Aye

      Mr. Davis:      Aye

      Judge Stacey:      Aye

                        Motion carried.

The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending gaming-related supplier license application of Sierra Design Group, Board File Number SL001496-03-001.

Judge Gribbs acknowledged Mr. McMakin’s and Mr. Robert W. Stocker’s, attorney for Sierra Design Group, presence at the meeting.

There being no questions from Board members, it was moved by Judge Stacey, and seconded by Mr. Davis that the Board enter an order finding and concluding that Sierra Design Group 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 granting the gaming-related supplier license application of Sierra Design Group based upon the background investigation report and recommendation of the Executive Director and the Board’s Licensing Division staff.  The following roll call vote was taken on the motion:

      Chairman Gribbs:      Aye

      Mr. Davis:      Aye

      Judge Stacey:      Aye

                        Motion carried.

The next item the Board considered was Lavdas Enterprises’ request that the notice of denial be vacated.   For the record Judge Gribbs acknowledged the presence of Mr. Len Wolfe, counsel for Lavdas Enterprises.

After Mr. Wolfe addressed the Board, Judge Gribbs invited Mr. Eggan, the Board’s legal counsel, to respond to Mr. Wolfe’s comments.  

Upon conclusion of a discussion between Chairman Gribbs and Mr. Wolfe, it was moved by Mr. Davis and seconded by Judge Stacey that the Board deny Lavdas Enterprises’ request that the notice of denial be vacated.  The following roll call vote was taken: 

            Chairman Gribbs:            Aye

      Mr. Davis:      Aye

      Judge Stacey:      Aye

                        Motion carried.

The next agenda item to be considered was the proposed Board Resolution delegating authority to the Executive Director to suspend occupational licenses pursuant to Rule 1109(2), MR 432.11109(2), and Section 292 of the Administrative Procedures Act, MCL 24.292.

Mr. John Cahill, Assistant Attorney General for the Board was invited to present a brief background summary and explain the necessity of this resolution.

There being no questions from the Board members, Judge Stacey moved and Mr. Davis seconded the motion that the Board adopt Proposed Board Resolution Number 2003-01 delegating authority to the Executive Director to suspend an occupational license when an emergency exists, for and on behalf of the Board, as provided for in the Michigan Gaming Control Board’s Administrative Rules and the Administrative Procedures Act.  The following roll call vote was taken:

            Chairman Gribbs:            Aye

      Mr. Davis:      Aye

      Judge Stacey:      Aye

                        Motion carried.

Next, it was moved by Mr. Davis, and seconded by Judge Stacey 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 from the Executive Director 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.  The following roll call vote was taken:

            Judge Gribbs:            Aye

            Mr. Davis:            Aye

            Judge Stacey:            Aye

Motion carried.

                        As part of the public comment portion of the meeting, Chairman Gribbs acknowledged Mr. Peter Erickson.  Mr. Erickson’s comments concerned the lack of financial information for each casino issued every month by the Board.  Mr. Erickson requested consideration from the Board to expand the revenue data and tax reports on table games and slots issued every month.

                        Judge Gribbs asked Mr. Gustafson to explore the possibility of releasing the requested information and report back to the Board.

                        There being no other questions or comments from the public, the meeting was adjourned by Judge Gribbs, at 7:23 p.m.

                              ________________

                                Patricia S. James

                                Board Secretary