STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, December 13, 2005

10:30 A.M.

MINUTES

On Tuesday, December 13, 2005, 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:

                                                 Damian Kassab, Chairman

                                                 Judge Benjamin Friedman

                                                 Donald Robinson

                                                 Barbara Rom

                                                 Judge Stacey

                         Also attending were:

                                                 Daniel Gustafson

                                                 Patty James

                                                 Insp. Ellis Stafford

                                                 Ben McMakin

                                                 Tom Barker

                                                 John Page

                                                 Jack Cahill

Business:          Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 10:32 a.m.   Chairman Kassab invited Dan Gustafson to give an overview of the meeting’s agenda.

                        Mr. Gustafson advised the Board that there were numerous recommendations for occupational and supplier license applications on the agenda.  Also on the agenda, is a request for a rule waiver that deals with Attorney General and State Police employees as it relates to career opportunities after they leave state employment.  There’s also a resolution to approve the permanent construction plans for MGM Grand Detroit Casino.

                        Upon conclusion of Mr. Gustafson’s overview, Chairman Kassab called the regular public meeting to order and noted for the record that all Board members were present.
           

Chairman Kassab stated the first order of business was to approve the minutes from the November 8, 2005 and the November 15, 2005 meetings.   He requested a motion to approve the minutes from the November 8, 2005 and November 15, 2005 meetings.

                        It was moved and seconded that the minutes of the November 8, 2005 and November 15, 2005 meetings be approved.  Motion carried.

                        Mr. Gustafson next presented the Executive Director’s report.  In regards to staffing, Mr. Gustafson reported that the Board has hired no new employees since the last public meeting.

                        In regards to the Board’s budget, Mr. Gustafson reported that for fiscal year 2006, from October 1, 2005 through November 30, 2005, the Board has incurred expenditures of $1,143,198 leaving the unexpended balance of over 18 million in appropriated funding for FY 2006.  He also advised the Board that the appropriated funding included reimbursement to the Attorney General and State Police for their services to the Board.

                        Mr. Gustafson next reported that the casinos continue to operation 24/7 and for November 2005, the aggregate revenue in taxes for all three Detroit casinos was up 7.22 percent compared to the same month last year.  The gaming taxes for the three Detroit casinos for November 2005 were 12.124 million compared to 11.307 million for the same period 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.

                        Next, Mr. Gustafson updated the Board on MSP’s Board-related activities.  Mr. Gustafson advised the Board that D/Sgt. Pamela Benzing was promoted to D/Lt. and D/Spec. Steven Arendt transferred to the gaming section from the Manistee post.   Mr. Gustafson also reported that during the month of November, the gaming section investigated 50 criminal complaints and made 33 arrests.

                        Upon conclusion of Mr. Gustafson’s report, Chairman Kassab requested a motion to accept 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 Judge Friedman to accept the recommendations of the Executive Director and the Licensing Division’s staff for the applications summarized in Exhibit 1.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the Executive Director’s Report and the Licensing Division’s staff recommendations regarding the requests to withdraw the supplier license applications of Ferguson Enterprises, Inc. and Plaka Café, Inc.

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

                        Therefore, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board enter orders granting the requests of Ferguson Enterprises, Inc. and Plaka Café, Inc. for withdrawal of their supplier license applications.  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 request to withdraw the supplier license application and waive the one-year waiting period for reapplication of Solomon Friedman Advertising.

                        Chairman Kassab noted for the record that Mr. Bob Stocker and Mr. Friedman, representatives for the applicant, were present at the meeting.

                        After comments from Deputy Director, Ben McMakin, Mr. Stocker and Mr. Friedman, it was moved by Judge Stacey and seconded by Ms. Rom that the Board enter an order granting the request of Solomon Friedman Advertising, L.L.C. for withdrawal of a supplier license application and waiver of the one-year reapplication period for a supplier license.  A voice vote was taken.

                        Motion carried.

                        The next agenda item considered was the Executive Director’s Report and the Licensing Division’s staff recommendations regarding the pending supplier license applications of Production Plus, Inc. and Resource Data Systems Corporation.

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

                        Therefore, it was moved by Mr. Robinson and seconded by Judge Friedman that the Board enter orders finding and concluding that Production Plus, Inc. and Resource Data Systems Corporation, and their qualifiers are eligible and suitable for licensure under the licensing standards of the Act and Rules of the Board. 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 pending application for approval of transfer of interest in Cummins-Allison Corporation from Cummins-American Corporation to multiple shareholders.

                        Chairman Kassab noted for the record that Mr. Bill Jones, Chairman, and Bob Jordan, CFO, of Cummins-Allision were present at the meeting.

                        There being no questions from Board members, it was moved by Ms. Rom and seconded by Mr. Robinson that the Board enter an order approving the proposed transfer of interest in Cummins-Allison Corporation from Cummins-American Corporation to multiple shareholders, under the licensing standards and requirements of the Act and Rules of the Board.  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 pending application for approval of transfer of interest in Greektown Casino, L.L.C., from Barden Nevada Gaming, L.L.C., d/b/a Fitzgerald’s Las Vegas to Kewadin Greektown Casino, L.L.C.

                        Chairman Kassab noted for the record that Mr. John Pirich, counsel for Greektown Casino, and Mr. Ken Kramer representing Mr. Barden, were present at the meeting. 

                        There being no questions from Board members, it was moved by Judge Friedman and seconded by Mr. Robinson that the Board enter an order approving the proposed transfer of interest in Greektown Casino, L.L.C., from Barden Nevada Gaming, L.L.C., d/b/a Fitzgerald’s Las Vegas to Kewadin Greektown Casino, L.L.C., under the licensing standards and requirements of the Act and Rules of the Board.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the request for approval of construction plans for the permanent MGM Grand Detroit Casino.

                        Chairman Kassab invited Mr. John Page, Deputy Director of Enforcement, to give a brief overview of the plans.

                        After Mr. Page’s overview and questions from Board members were answered, Chairman Kassab invited Mr. Barry Borovsky representing the MGM Grand Resorts Development group to address the Board.

                        After Mr. Borovsky’s presentation, it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter an order approving construction plans for the permanent casino for MGM Grand Detroit, L.L.C., based upon the Board staff’s recommendations.  A voice vote was taken.           

                        Motion carried.

                        The next agenda item considered was the proposed Board Resolution No. 2005-04 to waive the requirements of Rule 432.1229 as they relate to employees of the Department of the Attorney General’s office and the Michigan State Police.

                        Chairman Kassab invited Mr. Gustafson to summarize the resolution. 

                        After Mr. Gustafson’s summary, Assistant Attorney in Charge, Jack Cahill and Inspector Ellis Stafford provided further details relative to the resolution as it pertains to employees of the Department of the Attorney General and the Michigan State Police.

                        After Mr. Cahill’s and Inspector Stafford’s comments, it was moved by Mr. Robinson and seconded by Judge Stacey that the Board adopt proposed Board Resolution No. 2005-04 to waive the requirements of Rule 432.1229 as they relate to the employees of the Department of the Attorney General and the Michigan State Police.  A voice vote was taken.

                        Motion carried.

                        Next Chairman Kassab requested a motion for the Board to go into closed session.

                        Therefore, it was moved by Mr. Robinson and seconded by Ms. Rom 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.  A roll call vote was taken.

                                     Chairman Kassab:              Aye

                                     Judge Friedman:                 Aye

                                     Mr. Robinson:                     Aye

                                     Ms. Rom:                         Aye

                                     Judge Stacey:                  Aye

                        Motion carried.

                        Chairman Kassab noted for the record that Mr. Duma Jensen was present and desired to make comments regarding the air quality of the casinos.

                        After Mr. Jensen’s comments, Chairman Kassab adjourned the meeting at 11:31 a.m.

                               Patricia S. James

                               Board Secretary