Resolution No. 1998-07 (Adopted 7/21/98) (RESCINDED on 09/08/09 by Resolution No. 2009-01 and 06/29/06 by Resolution No. 2006-01) - Policy regarding Suppliers of goods/services; construction suppliers (amended 10/20/98)

AMENDED RESOLUTION NO. 1998-07 (Adopted 7/21/98... Amended 10/20/98... Amended version appears below)

 

A Board Resolution Stating the Board's Policy Regarding Licensing of Casino Construction Suppliers and Other Suppliers of Goods and Services to Casinos

 

WHEREAS, the Michigan Gaming Control Board ("the Board") is empowered by the Michigan Gaming Control and Revenue Act, as amended, Public Act 69 of 1997; MCL 432.201 et. seq. ("the Act") to issue up to three casino licenses to eligible and suitable applicants to conduct casino gambling operations in building locations in the City of Detroit specified in certified development agreements between the City and the applicants; and

 

WHEREAS, the City of Detroit has entered into certified casino development agreements with three casino developers who have applied to the Board for casino licenses; and,

 

WHEREAS, the applicants' certified development agreements with the City of Detroit give the applicants the option of conducting gaming operations in the City in temporary casino facilities pending the development and completion of certain agreed permanent casino hotel complexes, subject to approval by the City and the Board and other specified requirements and restrictions; and,

 

WHEREAS, each of the three casino license applicants has submitted a proposal to the City to conduct casino gaming operations in the City in specified temporary casino facilities pending development and completion under the terms of their respective certified casino development agreements; and,

 

WHEREAS, various prospective providers of construction goods and services to the proposed temporary and permanent casino construction projects have inquired as to how the Board's supplier licensing rules will apply to said projects; and,

 

WHEREAS, the Board, accordingly, believes it is necessary and appropriate to clarify its policy regarding construction supplier licensing as applied to the projects for construction of temporary and permanent casino facilities under certified development agreements between the City of Detroit and applicants, and the licensing of other suppliers of goods and services to the Detroit casinos; NOW THEREFORE,

 

IT IS HEREBY RESOLVED, as follows:

  1. The Board will require Supplier Licensing of:

    • All persons providing gaming-related goods or services for the construction or operation of a casino or casino enterprise;
    • All persons providing nongaming-related goods or services for the construction or operation of a casino or casino enterprise where the person is a party to an agreement with a casino licensee, casino license applicant, or holder of a certificate of suitability and the annual dollar amount of business is equal to or greater than $200,000 within a 12-month period (or is equal to or greater than $400,000 within a 12-month period if the person is a party to agreements with more than one casino licensee, casino license applicant, or holder of a certificate of suitability);
    • All prime contractors, which means any person who is a party to a contract(s) or subcontract(s) with another contractor(s) for a major portion of a casino construction project as defined by the CSI Master Format Division and Subdivision, and whose contract amount exceeds $500,000, exclusive of cost of material purchases or equipment rentals, within any 12-month period; (or exceeds $1 million, exclusive of cost of material purchases or equipment rentals, within any 12-month period, if the party is working on more than one (1) casino construction project); and,
    • All other persons providing goods or services for the construction or operation of a casino or casino enterprise when deemed necessary to protect the public interest.
  2. The Board will require that all persons providing any goods or services for the operation of a casino or casino enterprise, and all persons providing goods or services for construction of a casino or casino enterprise in excess of $50,000 in any 12-month period:

    • Must complete and submit a vendor notification and disclosure to the Board; and,
    • All non-licensed persons providing goods or services may be subject to a background investigation to the same extent as those required to be licensed as a supplier.
  3. The Board will establish a Casino Construction Project Monitoring Team to review and inspect the:

    • Casino construction contractor selection process and project meetings;

    • Casino construction contract documents and related materials; and,

    • The Casino construction project work site.