1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 08-01-02 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, January 2, 2008 10 Atlantic City Commission Offices 11 Joseph P. Lordi Public Meeting Room - First Floor 12 Tennessee Avenue and Boardwalk 13 Atlantic City, New Jersey 08401 14 10:28 a.m. to 10:37 a.m. 15 16 17 Certified Court Reporter: Darlene Sillitoe 18 - - - - - - - - - - - - - - - - - - - - - - - - - - - 19 20 ATLANTIC CITY COURT REPORTING, LLC 21 CERTIFIED COURT REPORTERS AND VIDEOGRAPHERS 22 1125 ATLANTIC AVENUE, SUITE 416 23 ATLANTIC CITY, NEW JERSEY 08401 24 (609) 345-8448 www.accourtreporting.com 25 2 1 B E F O R E : 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 WILLIAM T. SOMMELING, VICE CHAIR MICHAEL A. FEDORKO, COMMISSIONER 4 MICHAEL C. EPPS, COMMISSIONER RALPH G. FRULIO, COMMISSIONER 5 6 PRESENT FOR THE CASINO CONTROL COMMISSION: DARYL W. NANCE, ADMINISTRATIVE ANALYST 7 DANIEL J. HENEGHAN, PUBLIC INFORMATION OFFICER 8 OFFICE OF THE GENERAL COUNSEL: DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE 9 SECRETARY MARY WOZNIAK, ASSISTANT GENERAL COUNSEL 10 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR CLAIRE FRANK, PROGRAM SUPERVISOR/SENIOR EEO 11 COORDINATOR 12 DIVISION OF GAMING ENFORCEMENT: 13 DEPUTY ATTORNEYS GENERAL BRIAN BISCIEGLIA, DEPUTY ATTORNEY GENERAL 14 JAMES FOGARTY, DEPUTY ATTORNEY GENERAL 15 16 17 18 19 20 21 22 23 24 25 3 1 A P P E A R A N C E S : 2 ITEM NO. 6 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL JAMES FOGARTY, DEPUTY ATTORNEY GENERAL 3 TIMOTHY J. LOWRY, ESQ. FOR: HARRAH'S OPERATING COMPANY 4 ITEM NO. 7 CLAIRE FRANK, PROGRAM MANAGER 5 JAMES FOGARTY, DEPUTY ATTORNEY GENERAL JOSEPH CORBO, JR., ESQ. 6 FOR: MARINA DISTRICT DEVELOPMENT COMPANY, LLC 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 08-01-02 2 JANUARY 2, 2008, 10:28 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of 7 7 December 12, 2007, Public Meeting and 4 Special Meeting minutes of November 20 through December 12, 2007 5 2 Approval of Annual Meeting Schedule 8 8 3 Election of Vice Chair 8 9 6 4 Applications for employee and casino service industry licenses: 7 37 applications for initial and/or 9 10 renewal of casino and casino employee licenses 8 8 applications for initial and/or 10 10 renewal of casino key and casino 9 employee licenses Thomas J. Ballance, Development 11 11 10 Coordinator for Marina District Development Company, LLC 11 Nicolas E. Kurban, Vice President of 11 11 Hotel Operations for Marina District 12 Development Company, LLC Loretta M. Pickus, Vice President of 11 11 13 Legal Affairs for Trump Taj Mahal Associates, LLC Mark J. Sachais, Vice President of 11 11 14 Marketing for Trump Taj Mahal Associates, LLC 5 Stipulations of settlement and 15 consent agreements: a) Ted A. Hartnett (07-0471-EA) 12 12 16 b) Kenny H. Lay (07-0408-EA) 12 12 c) Denise M. Borraccini (06-0008-ER) 12 12 17 d) Keir L. Anderson (07-0735-EA) 12 12 e) Felipe A. Mitchell (07-0736-EA) 12 12 18 f) Edward Z. Ong (07-0682-EA) 12 12 e) Robert J. Rupprecht (07-0737-EA) 12 12 19 g) William E Haas, Jr. (07-0431-ER) 12 12 6 Petition of Harrah's Operating Company, 14 16 20 Inc., March (HOC), Marina Associates, Atlantic City Showboat, Inc., Bally's Park 21 Place, Inc., and Boardwalk Regency Corp. for a waiver of qualification for officers 22 of HOC (Richard Fu; Sandeep Khera) (PRN 3450706) 7 Petition of Marina District Development 16 19 23 Company, LLC, requesting permission for George M. Hirsberg, to perform the duties 24 and exercise the powers of Senior Vice President, Chief Financial Officer of 25 Boyd Gaming Corporation pending plenary qualification (PRN 3530707) 5 1 E X H I B I T S : 2 ITEM NO. 4 DESCRIPTION EVD 3 4 EL-1 Remand for hearings 37 license X applications 5 EL-2 Grant 8 licenses X 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (Exhibits retained by Commission.) 25 6 1 (Public Meeting 08-01-02 was commenced 2 at 10:30 a.m.) 3 MR. NANCE: I'd like to read an opening 4 statement: 5 This is to advise the general public 6 that in compliance with Chapter 231 of the 7 Public Laws of 1975 entitled the "Open Public 8 Meetings Act," the New Jersey Casino Control 9 Commission on October 17th, 2007, filed with 10 the Secretary of State at the State House in 11 Trenton an annual meeting schedule. On October 12 17th, copies were mailed to subscribers. 13 Members of the press will be permitted 14 to take photographs, and we would ask that this 15 be done in a manner which is not disruptive or 16 distracting to the Commission. 17 The use of cellular telephones in the 18 public meeting room while the Commission is in 19 session is prohibited. 20 Any members of the public who wish to 21 address the Commission will be given the 22 opportunity to do so before the Commission 23 adjourns for the day. 24 Please stand for the Pledge of 25 Allegiance. 7 ITEM NO. 1 1 (The flag salute was recited.) 2 CHAIR KASSEKERT: Good morning. 3 MR. NANCE: Good morning. 4 The matters discussed in closed session 5 were: Employee and enterprise license matters. 6 The Commission approved the November 20 7 and December 12, 2007, closed session minutes. 8 Litigation update regarding: Warren 9 Lackland and Lewis M. Springer, Jr., versus the 10 State of New Jersey and the Casino Control 11 Commission; 12 Gloria Ford versus the State of New 13 Jersey, Casino Control Commission, et al.; 14 Husain versus the Casino Control 15 Commission, et al.; 16 And in the matter of petition of SD for 17 removal from the voluntary self-exclusion list. 18 Item No. 1, ratification of the minutes 19 of December 12th, 2007, public meeting and the 20 special meeting minutes of November 20th 21 through December 12th, 2007. 22 COMMISSIONER SOMMELING: Move to approve 23 the meeting minutes as specified on the record. 24 VICE CHAIR FEDORKO: Second. 25 CHAIR KASSEKERT: The motion has been 8 ITEM NO. 2-3 1 made and seconded. All in favor? 2 (Ayes.) 3 CHAIR KASSEKERT: Opposed? 4 (No response.) 5 CHAIR KASSEKERT: Motion carries. 6 MR. NANCE: Item No. 2, approval of 7 annual meeting schedule. 8 COMMISSIONER SOMMELING: Move to approve 9 the schedule. 10 VICE CHAIR FEDORKO: Second. 11 CHAIR KASSEKERT: The motion has been 12 made and seconded. All in favor? 13 (Ayes.) 14 CHAIR KASSEKERT: Opposed? 15 (No response.) 16 CHAIR KASSEKERT: Motion carries. 17 MR. NANCE: Item No. 3, the election of 18 Vice Chair. 19 CHAIR KASSEKERT: Commissioner Fedorko? 20 VICE CHAIR FEDORKO: Madame Chair, I 21 would like to nominate a man whose photograph 22 is in every Medicare building in the United 23 States, Commissioner Sommeling. 24 CHAIR KASSEKERT: Ooh. Took you a long 25 time to come up with that one. 9 ITEM NO. 4 1 (Laughter.) 2 COMMISSIONER FRULIO: Ouch. 3 CHAIR KASSEKERT: Is there a second? 4 COMMISSIONER FRULIO: Second. 5 CHAIR KASSEKERT: The motion has been 6 made and seconded to nominate Commissioner 7 Sommeling as Vice Chair of the Commission. 8 All those in favor? 9 (Ayes.) 10 CHAIR KASSEKERT: Opposed? 11 (No response.) 12 CHAIR KASSEKERT: Motion carries. 13 Congratulations. 14 COMMISSIONER EPPS: Would you like my 15 chair? 16 VICE CHAIR SOMMELING: You can have my 17 Chair. 18 In response to Commissioner Fedorko's 19 remarks, let me say that we all get there 20 sooner or later. 21 (Laughter.) 22 COMMISSIONER FEDORKO: Hopefully. 23 MR. NANCE: Item No. 4, application for 24 employee and casino service industry licenses. 25 This agenda item will be entered as Exhibit 10 ITEM NO. 4 1 List 1 and 2. 2 Exhibit List 1 consists of 37 3 applications for initial and/or renewal of 4 casino key and casino employee licenses. 5 The Division has objected to licensure. 6 COMMISSIONER FRULIO: Motion to remand 7 for hearings. 8 COMMISSIONER FEDORKO: Second. 9 CHAIR KASSEKERT: The motion has been 10 made and seconded. All in favor? 11 (Ayes.) 12 CHAIR KASSEKERT: Opposed? 13 (No response.) 14 CHAIR KASSEKERT: Motion carries. 15 MR. NANCE: Exhibit List 2 consists of 16 eight applications for initial and/or renewal 17 of casino key and casino employee licenses. 18 Staff and the Division have recommended 19 that these licenses be granted. 20 COMMISSIONER FRULIO: Motion to grant 21 applications. 22 COMMISSIONER FEDORKO: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. All in favor? 25 (Ayes.) 11 ITEM NO. 4 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: Motion carries. 4 MR. NANCE: For consideration are the 5 following applications for initial and/or 6 renewal of casino and key employee licenses and 7 for qualification for Thomas J. Ballance, 8 Development Coordinator for Marina District 9 Development Company, LLC; Nicholas E. Kurban, 10 Vice President of Hotel Operations for Marina 11 District Development Company, LLC; Loretta M. 12 Pickus, Vice President of Legal Affairs for 13 Trump Taj Mahal Associates, LLC; and Mike J. 14 Sachais, Vice President of Marketing for Trump 15 Taj Mahal Associates, LLC. 16 Staff and the Division have recommended 17 that these applications be granted. 18 COMMISSIONER FRULIO: Motion to grant 19 initial and key licenses and for qualification. 20 COMMISSIONER FEDORKO: Second. 21 CHAIR KASSEKERT: Motion has been made 22 and seconded. This is a roll call vote. 23 MR. NANCE: Commissioner Frulio? 24 COMMISSIONER FRULIO: Yes. 25 MR. NANCE: Commissioner Fedorko? 12 ITEM NO. 5 1 COMMISSIONER FEDORKO: Yes. 2 MR. NANCE: Commissioner Epps? 3 COMMISSIONER EPPS: Yes. 4 MR. NANCE: Vice Chair Sommeling? 5 VICE CHAIR SOMMELING: Yes. 6 MR. NANCE: Chair Kassekert? 7 CHAIR KASSEKERT: Yes. 8 MR. NANCE: The motion will reflect that 9 the motion is unanimous. 10 Item No. 5, stipulation of settlement 11 and consent agreements. When I call your name, 12 please come forward spreading across the room 13 so that you may be seen: Ted A. Hartnett, 14 Kenny Lay, Denise Borraccini, Keir Anderson, 15 Felipe Mitchell, Edward Ong, Robert Rupprecht, 16 and William Haas, Jr. 17 CHAIR KASSEKERT: Has everyone whose 18 name been called come forward? 19 Thank you. I'm going to ask that you 20 each state your name for the record, starting 21 with you, sir. 22 MR. RUPPRECHT: Robert J. Rupprecht. 23 MR. MITCHELL: Felipe Mitchell. 24 MR. LAY: Kenny Lay. 25 CHAIR KASSEKERT: Okay. In a moment we 13 ITEM NO. 5 1 are going to vote on the stipulations which 2 you've agreed to with the Division of Gaming 3 Enforcement. 4 I'm going to ask at this point if any of 5 you wish to be heard on your matter. You do 6 not have to say anything if you do not want to. 7 Does anyone wish to be heard? 8 (No response.) 9 CHAIR KASSEKERT: Mr. Biscieglia? 10 MR. BISCIEGLIA: Good morning, Chair, 11 Commissioners. Happy New Year. 12 The Division has nothing further to add 13 in this matter and ask the stipulations be 14 approved. 15 Thank you 16 CHAIR KASSEKERT: Thank you. 17 Any questions? 18 VICE CHAIR SOMMELING: Move to approve 19 the stipulations, Madame Chair. 20 COMMISSIONER FEDORKO: Second. 21 COMMISSIONER EPPS: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 14 ITEM NO. 6 1 (No response.) 2 CHAIR KASSEKERT: Motion carries. 3 Thank you very much for coming. Good 4 luck. 5 MR. NANCE: Item No. 6, petition of 6 Harrah's Operating Company, Inc., Marina 7 Associates, Atlantic City Showboat, Inc., 8 Bally's Park Place, Inc., and Boardwalk Regency 9 Corp. for a waiver of qualification of officers 10 of HOC. 11 Miss Wozniak? 12 MS. WOZNIAK: Good morning. 13 Chair and Commissioners, for the record, 14 these waivers pertain to the Vice President of 15 Multi-Cultural Marketing, Richard Fu, and the 16 Vice President of Interactive Marketing 17 Customer Relationship Management, Sandeep 18 Khera. 19 Mr. Lowry is here for the Petitioners 20 and Mr. Fogarty for the Division. And I have 21 distributed a draft resolution. 22 CHAIR KASSEKERT: Thank you. 23 Good morning, Mr. Lowry. 24 MR. LOWRY: Good morning, Chair, 25 Commissioners. 15 ITEM NO. 6 1 We have seen the draft resolution. We 2 consent and rest on the papers. 3 CHAIR KASSEKERT: Thank you. 4 Good morning, Mr. Fogarty. 5 MR. FOGARTY: Good morning, happy New 6 Year. 7 Congratulations, Mr. Sommeling. Do you 8 have to, like, switch chairs? 9 (Laughter.) 10 COMMISSIONER SOMMELING: Yeah. Nice way 11 to put that. 12 MR. FOGARTY: I'm pinch-hitting for DAG 13 Adams, and he's sent you all a letter not 14 objecting to the request for these two waivers 15 for these two individuals. 16 And I have not personally seen the draft 17 resolution that Ms. Wozniak mentioned, but I 18 believe DAG Adams has and has no objection to 19 its entry. 20 CHAIR KASSEKERT: Thank you. 21 Any questions? 22 COMMISSIONER SOMMELING: No questions, 23 Madame Chair. 24 COMMISSIONER EPPS: Chair, I move that 25 we adopt the draft resolution and waive the 16 ITEM NO. 7 1 qualifications pursuant to NJSA 5:12-85d(1) as 2 to Richard Fu in his capacity as Vice President 3 of Multi-Cultural Marketing and Sandeep Khera 4 in his capacity as Vice President, Interactive 5 Marketing Customer Relationship Management. 6 VICE CHAIR SOMMELING: Second. 7 CHAIR KASSEKERT: A motion has been made 8 and second. This is a roll call vote. 9 MR. NANCE: Commissioner Frulio? 10 COMMISSIONER FRULIO: Yes. 11 MR. NANCE: Commissioner Fedorko? 12 COMMISSIONER FEDORKO: Yes. 13 MR. NANCE: Commissioner Epps? 14 COMMISSIONER EPPS: Yes. 15 MR. NANCE: Vice Chair Sommeling? 16 VICE CHAIR SOMMELING: Yes. 17 MR. NANCE: Chair Kassekert? 18 CHAIR KASSEKERT: Yes. 19 MR. NANCE: The record will reflect that 20 the motion is unanimous. 21 CHAIR KASSEKERT: Thank you. 22 MR. LOWRY: Thank you. 23 MR. NANCE: Item No. 7, petition of 24 Marina District Development, LLC, requesting 25 permission for George M. Hirsberg, II, to 17 ITEM NO. 7 1 perform the duties and the exercise the powers 2 of Senior Vice President, Chief Financial 3 Officer of Boyd Gaming Corporation pending 4 plenary qualification. 5 Ms. Frank? 6 MS. FRANK: Good morning, Chair and 7 Commissioners. 8 A draft resolution on Mr. Hirsberg's 9 temporary qualification has been circulated to 10 the parties. 11 Mr. Corbo is here for the Borgata and 12 Mr. Fogarty for the Division. 13 CHAIR KASSEKERT: Good morning, Mr. 14 Corbo. 15 MR. CORBO: Good morning. Joseph Corbo, 16 Vice President and General Counsel of MDDC. 17 First of all, happy New Year. 18 And I've seen the resolution. I'm fine 19 with it. I would just like to say on behalf of 20 Mr. Hirsberg and Boyd Gaming and the Borgata, I 21 appreciate the expedient action of both 22 regulatory agencies. Mr. Hirsberg just 23 recently filed his 4A, but today does happen to 24 be his first day, and appreciate the 25 consideration to his petition today, which is 18 ITEM NO. 7 1 his first day of work. 2 CHAIR KASSEKERT: Thank you. 3 Mr. Fogarty? 4 MR. FOGARTY: Yes. We have filed a 5 letter not objecting to Mr. Hirsberg 6 temporarily performing in that position 7 indicated. I have not seen the draft 8 resolution because I just landed, but I'm sure 9 that -- 10 MR. CORBO: From where? 11 MR. FOGARTY: Normalcy. 12 (Laughter.) 13 But I'm sure, given the fine work Claire 14 does, we have no objection to its entry. 15 CHAIR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER SOMMELING: No questions, 18 Madame Chair. 19 COMMISSIONER EPPS: Chair, move that we 20 adopt the draft resolution and authorize George 21 M. Hirsberg, II, on a temporary basis prior to 22 his plenary qualification to assume the duties 23 and exercise the powers of Senior Vice 24 President and Chief Financial Officer for Boyd 25 Gaming Corporation, subject to the conditions 19 ITEM NO. 7 1 contained in NJAC 19:43-2.7 which, among other 2 things, require that he file a personal history 3 disclosure form, MJ, and NJ Supplement by 4 January 17th, 2008. 5 COMMISSIONER SOMMELING: Second. 6 CHAIR KASSEKERT: Motion has been made 7 and seconded. This is a role call vote. 8 MR. NANCE: Commissioner Frulio? 9 COMMISSIONER FRULIO: Yes. 10 MR. NANCE: Commissioner Fedorko? 11 COMMISSIONER FEDORKO: Yes. 12 MR. NANCE: Commissioner Epps? 13 COMMISSIONER EPPS: Yes. 14 MR. NANCE: Vice Chair Sommeling? 15 VICE CHAIR SOMMELING: Yes. 16 MR. NANCE: Chair Kassekert? 17 CHAIR KASSEKERT: Yes. 18 MR. NANCE: Let the record reflect that 19 the motion is unanimous. 20 MR. CORBO: Thank you so much. 21 MS. FRANK: Thank you. 22 MR. NANCE: In accordance with 23 Resolution No. 07-12-12-26, the next closed 24 session of the Commission shall be held on 25 Wednesday, January 16, 2007, at 9:15 a.m. in 20 1 the Commission offices. 2 It is now time for the public 3 participation of the meeting. 4 CHAIR KASSEKERT: Is there anyone from 5 the public that wishes to be heard? 6 (No response.) 7 CHAIR KASSEKERT: Seeing no one, I'll 8 declare this portion of the meeting closed and 9 entertain a motion to adjourn. 10 VICE CHAIR SOMMELING: Motion to 11 adjourn. 12 COMMISSIONER FEDORKO: Second. 13 CHAIR KASSEKERT: The motion has been 14 made and seconded. All in favor? 15 (Ayes.) 16 CHAIR KASSEKERT: Opposed? 17 (No response.) 18 CHAIR KASSEKERT: Motion carries. 19 This is not quite a new record. 20 (Public Meeting 08-01-02 was adjourned 21 at 10:37 a.m.) 22 23 24 25 21 1 2 C E R T I F I C A T E 3 4 5 I, DARLENE SILLITOE, a Certified Court 6 Reporter and Notary Public of the State of New 7 Jersey, certify that the foregoing is a true 8 and accurate transcript of the proceedings. 9 10 11 I further certify that I am neither 12 attorney, of counsel for, nor related to or 13 employed by any of the parties to the action; 14 further that I am not a relative or employee of 15 any attorney or counsel employed in this case; 16 nor am I financially interested in the action. 17 18 19 DARLENE SILLITOE CCR 20 License No XI01023 21 22 Dated: January 3, 2008 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25