1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 08-10-15 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, October 15, 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 10:44 a.m. to 12:07 p.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 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 WILLIAM T. SOMMELING, VICE CHAIR MICHAEL A. FEDORKO, COMMISSIONER 4 MICHAEL C. EPPS, COMMISSIONER 5 PRESENT FOR THE CASINO CONTROL COMMISSION: 6 DARYL W. NANCE, ADMINISTRATIVE ANALYST DANIEL J. HENEGHAN, PUBLIC INFORMATION OFFICER 7 OFFICE OF THE GENERAL COUNSEL: 8 DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE SECRETARY 9 LEONARD J. DIGIACOMO, ASSISTANT GENERAL COUNSEL MARY WOZNIAK, ASSISTANT GENERAL COUNSEL 10 SETH H. BRILIANT, SENIOR COUNSEL LON E. MAMOLEN, SENIOR COUNSEL 11 ROBERT A. MONCRIEF, COUNSEL CLAIRE FRANK, PROGRAM MANAGER 12 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 13 DIVISION OF GAMING ENFORCEMENT: DEPUTY ATTORNEYS GENERAL 14 JACK ADAMS, DEPUTY ATTORNEY GENERAL BRIAN BISCIEGLIA, DEPUTY ATTORNEY GENERAL 15 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL 16 R. LANE STEBBINS, DEPUTY ATTORNEY GENERAL 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 LEONARD J. DiGIACOMO, ASSISTANT GENERAL COUNSEL 3 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL PASHMAN STEIN 4 SEAN MACK, ESQ. FOR: TRUSTEE/CONSERVATOR 5 ITEM NO. 7 DIANNA W. FAUNTLEROY, GENERAL COUNSEL 6 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL PASHMAN STEIN 7 SEAN MACK, ESQ. FOR: TRUSTEE/CONSERVATOR 8 ITEM NO. 8 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL 9 JOHN E. ADAMS, JR., DEPUTY ATTORNEY GENERAL 10 MICHAEL & CARROLL GUY S. MICHAEL, ESQ. 11 ROBERT J. CARROLL, ESQ. FOR: MARGARITAVILLE OF ATLANTIC CITY, LLC 12 ITEM NO. 9 ROBERT A. MONCRIEF, COUNSEL 13 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL TIMOTHY J. LOWRY, JR., ESQ. 14 FOR: HARRAH'S OPERATING COMPANY 15 16 17 18 19 20 21 22 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 08-10-15 2 October 15, 2008, 10:44 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of the 8 8 October 1, 2008, public meeting 4 2 Applications for employee and casino service industry licenses: 5 11 applications for initial and/or renewal 9 9 of casino key and casino employees licenses 6 5 applications for initial and/or renewal of casino key and casino employee licenses 7 Applications for initial and/or renewal of casino key employee licenses and for 8 qualification: Stephen S. Callender, Senior Vice 10 10 9 President of Operations of Resorts International Hotel, Inc. 10 Leanne Marino, Manager of Security 10 10 Operations for Atlantic City Showboat, Inc. 11 3 Stipulations of settlement and consent agreements: 12 a) Eldwin Colon (a/k/a Andy Colon, Carlos 11 12 Colon) (08-0195-EA) 13 b) Kenneth J. Ellis (08-0068-EA) 11 12 c) William J. Salerno, III (07-0757-EA) 11 12 14 d) Tennille R. Lee (07-0668-RC) 11 12 4 Stipulation of settlement in State v. 13 14 15 Marina District Development Company, LLC (d/b/a Borgata Hotel, Casino & Spa) Thomas 16 Gable and Matthew Weyler (07-0038-VC) 5 Preliminary hearing concerning the 15 24 17 exclusion of Quan M. Nguyen (08-0720-EL) 6 Petition of the Trustee and Conservator 43 53 18 for the former casino licensee Adamar of New Jersey, Inc., (d/b/a Tropicana Casino 19 and Resorts) to extend the sale period (PRN 2800802) 20 7 Consideration of the seventh application 37 43 of the Trustee and Conservator for the 21 former casino licensee Adamar of New Jersey, Inc., for approval of fees for the 22 Conservator/Trustee, his personal counsel, legal, and other consultants 23 8 Petition of Margaritaville of Atlantic 25 27 City, LLC, for declaratory rulings on its 24 license status (PRN 2470802) 25 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 08-10-15 2 October 15, 2008, 10:44 a.m. ITEM PAGE VOTE 3 9 Petition of Harrah's Operating Company, 28 32 Inc., for an amendment to its operation 4 certificate to expand and reconfigure its gaming floor (PRN 2820809) 5 10 Proposed adoption of amendments to NJAC 33 34 19:46-1.10 (signage for 6 to 5 blackjack 6 variation) 11 Proposed adoption of amendments to NJAC 34 35 7 19:45-1.40B funding and transfers of annuity slot jackpots 8 12 Petition of Trump Taj Mahal Associates, 35 36 LLC, for rulemaking to permit a variation (tabled) 9 of bad beat jackpot procedures (PRN 2390802) 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 6 1 E X H I B I T S : 2 NO. DESCRIPTION EVD 3 ITEM NO. 2 4 P-1 Remand for hearings 11 license X P-2 Grant 5 licenses X 5 ITEM NO. 5 6 A-1 CCC Initial Decision of 4-23-07 X 7 ITEM NO. 7 D-1 Division's Letter of 9-22-08 X 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (Exhibits retained by Commission.) 7 1 (Public Meeting 08-10-15 was commenced 2 at 10:44 a.m.) 3 MR. NANCE: Good morning. I'd like to 4 read an opening 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 June 23, 2008, filed with the 10 Secretary of State at the State House in 11 Trenton, New Jersey, a notice of this hearing. 12 On June 23rd, 2008, copies were mailed to 13 subscribers. 14 Members of the press will be permitted 15 to take photographs, and we ask that this be 16 done in a manner which is not disruptive or 17 distracting to the Commission. 18 The use of cellular telephones in the 19 public meeting room while the Commission is in 20 session is prohibited. 21 Would everyone please stand for the 22 Pledge of Allegiance. 23 (The flag salute was recited.) 24 CHAIR KASSEKERT: Good morning. 25 MR. NANCE: Good morning. 8 ITEM NO. 1 1 The matters discussed in closed session 2 were: Employee and enterprise license matters. 3 The Commissioner approved the October 4 1st, 2008, closed session minutes. 5 Litigation update regarding: Warren 6 Lackland and Lewis M. Springer, Jr., versus the 7 State of New Jersey and the Casino Control 8 Commission; 9 Petition of Tropicana, et al., for 10 renewal of casino license; 11 Application of Dana White for renewal of 12 a casino employee license; 13 And petition of Highgate Steel for 14 release of monies. 15 Item No. 1, ratification of the minutes 16 of October 1st, 2008, public meeting. 17 COMMISSIONER SOMMELING: Move to 18 approve. 19 VICE CHAIR FEDORKO: Second. 20 CHAIR KASSEKERT: The motion has been 21 made and seconded. All in favor? 22 (Ayes.) 23 CHAIR KASSEKERT: Opposed? 24 (No response.) 25 CHAIR KASSEKERT: Motion carries. 9 ITEM NO. 2 1 MR. NANCE: Item No. 2, application for 2 employee and casino service industry licenses. 3 This agenda item will be entered as Exhibit 4 List 1 and 2. 5 Exhibit List 1 consists of 11 6 applications for initial and/or renewal of 7 casino key and casino employee licenses. 8 The Division has objected to licensure. 9 VICE CHAIR FEDORKO: Motion to remand 10 for hearings. 11 COMMISSIONER SOMMELING: Second. 12 CHAIR KASSEKERT: The motion is made and 13 seconded. All in favor? 14 (Ayes.) 15 CHAIR KASSEKERT: Opposed? 16 (No response.) 17 CHAIR KASSEKERT: Motion carries. 18 MR. NANCE: Exhibit List 2 consists of 19 five applications for initial and/or renewal of 20 casino key and casino employee licenses. 21 Staff and the Division have recommended 22 that these licenses be granted. 23 COMMISSIONER EPPS: Motion to grant 24 applications. 25 COMMISSIONER FEDORKO: Second. 10 ITEM NO. 2 1 VICE CHAIR SOMMELING: Second. 2 CHAIR KASSEKERT: The motion has been 3 made and seconded. All in favor? 4 (Ayes.) 5 CHAIR KASSEKERT: Opposed? 6 (No response.) 7 CHAIR KASSEKERT: Motion carries. 8 MR. NANCE: For consideration are the 9 following applications for initial and/or 10 renewal of casino key employee licenses and for 11 qualification: Stephen S. Callender, Senior 12 Vice President of Operations for Resorts, 13 International Hotel, Inc., and Leanne Marino, 14 Manager of Security Operations for Atlantic 15 City Showboat, Inc. 16 Staff and the Division have recommended 17 that these applications be granted. 18 COMMISSIONER FEDORKO: Motion to grant 19 initial and renewal of key licenses for 20 qualification. 21 VICE CHAIR SOMMELING: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. This is a roll call vote. 24 MR. NANCE: Commissioner Fedorko? 25 COMMISSIONER FEDORKO: Yes. 11 ITEM NO. 3 1 MR. NANCE: Commissioner Epps? 2 COMMISSIONER EPPS: Yes. 3 MR. NANCE: Vice Chair Sommeling? 4 VICE CHAIR SOMMELING: Yes. 5 MR. NANCE: Chair Kassekert? 6 CHAIR KASSEKERT: Yes. 7 MR. NANCE: The record will reflect that 8 the motion is unanimous. 9 Item No. 3 stipulation of settlement and 10 consent agreements. When I call your name, 11 please come forward, stand behind this middle 12 table, spreading across the room so that you 13 may be seen: Eldwin Colon, Kenneth Ellis, 14 William Salerno, III, and Tennille Lee. 15 CHAIR KASSEKERT: Has everyone whose 16 name been called come forward? 17 I'm going to ask that you each state 18 your name for the record, starting with you, 19 sir. 20 MR. COLON: Eldwin Colon. 21 MR. SALERNO: William Salerno. 22 MR. ELLIS: Kenneth Ellis. 23 MS. LEE: Tennille Lee. 24 CHAIR KASSEKERT: Okay. In a moment we 25 are going vote on the stipulations which you've 12 ITEM NO. 3 1 agreed to with the Division of Gaming 2 Enforcement. I'm going to ask at this point if 3 any of you wish to be heard on your matter. 4 You don't have to say anything if you don't 5 want to. 6 Does anyone wish to be heard? 7 MR. SALERNO: No. 8 CHAIR KASSEKERT: Okay. Mr. Biscieglia? 9 MR. BISCIEGLIA: Thank you. Good 10 morning, Chair and Commissioners. 11 The Division has nothing further and ask 12 that the stipulations of settlement be adopted 13 as submitted. 14 Thank you. 15 CHAIR KASSEKERT: Thank you. 16 Any questions? 17 VICE CHAIR SOMMELING: Move to approve 18 the stipulations, Madame Chair. 19 COMMISSIONER FEDORKO: Second. 20 CHAIR KASSEKERT: The motion has been 21 made and seconded. All in favor? 22 (Ayes.) 23 CHAIR KASSEKERT: Opposed? 24 (No response.) 25 CHAIR KASSEKERT: Motion carries. 13 ITEM NO. 4 1 Thank you for coming. Good luck. 2 FROM THE FLOOR: Thank you. 3 MR. NANCE: Item No. 4, stipulation of 4 settlement in State versus Marina District 5 Development Company, LLC, Thomas Gable and 6 Matthew Weyler. 7 Mr. Corbett? 8 MR. CORBETT: Chair, Commissioners, the 9 attorney for the Respondent in this matter, Mr. 10 Silvanio, contacted staff and advised that due 11 to a scheduling conflict he would not be able 12 to be here today, but he did request that the 13 matter move forward. 14 CHAIR KASSEKERT: Thank you. 15 Mr. Stebbins? 16 MR. STEBBINS: Thank you very much, 17 Madame Chair, members of the Commissioner. 18 I have been in contact with counsel for 19 the Respondent in this case as well, and he did 20 indicate there might be some scheduling 21 problems, but he was willing to have it go 22 forward on the papers. 23 This is a loose end, shall we say, from 24 a prior matter. This is the bartender in a 25 case that went on out at Borgata. Borgata has 14 ITEM NO. 4 1 already paid their fine. This has been delayed 2 somewhat because of an intervening complaint 3 which has now been dismissed, so this is ripe 4 to move forward. 5 The stipulation is before you. It calls 6 for a suspension with time served, and I would 7 urge to you adopt the stipulation. 8 Thank you. 9 CHAIR KASSEKERT: Thank you. 10 Any questions? 11 COMMISSIONER SOMMELING: No questions, 12 Madame Chair. 13 COMMISSIONER FEDORKO: Motion to approve 14 the stipulation of settlement and suspend 15 Matthew Weyler's casino service employee 16 registration for three working days, with time 17 served, and issue a letter of reprimand to be 18 made a permanent part of the employee file 19 violation of Commission regulations regarding 20 serving alcoholic beverages to underaged 21 patrons. 22 VICE CHAIR SOMMELING: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. All in favor? 25 (Ayes.) 15 ITEM NO. 5 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: Motion carries. 4 MR. NANCE: Item No. 5, preliminary 5 hearing concerning the exclusion of Quan 6 Nguyen. 7 Miss Frigen? 8 MS. FRIGEN: Good morning, Madame Chair 9 and Commissioners. 10 Before we hear from the Division on this 11 matter, let me inquire whether Mr. Quan Nguyen 12 is present or represented? 13 He had called me like a week and a half 14 ago indicating he would be here but, 15 apparently, he is not here today. 16 CHAIR KASSEKERT: Okay. Thank you. 17 Mr. Stebbins? 18 MR. STEBBINS: Thank you. 19 Madame Chair, Commissioners, this is an 20 exclusion petition. The Division has filed 21 seeking the exclusion of Mr. Nguyen. There is 22 some history to this, including an initial 23 decision by Commissioner Frulio that was -- 24 excuse me -- issued April 23rd of 2007. It's a 25 matter of public record, take official notice 16 ITEM NO. 5 1 of that. But if you want to maintain a compact 2 record, I would ask that that be considered as 3 an exhibit in this case, and I would so move if 4 you're inclined to do that. 5 MR. NANCE: That would be marked as A-1. 6 MR. STEBBINS: Yes. Thank you. 7 CHAIR KASSEKERT: And seeing no one here 8 to object, I'll move that in as an exhibit. 9 MR. STEBBINS: Thank you. Thank you. 10 The petition sets forth two bases for 11 the exclusion of this particular individual. 12 First of all, he had his license 13 revoked, which is an independent basis for 14 revocation. But in addition to the revocation, 15 when he came back looking for a license the 16 second time, which is the predicate for the 17 initial decision by Commissioner Frulio, there 18 were findings that were not to the Respondent's 19 benefit. He was involved in a cheating scam 20 with his family, convicted of $75,000 or more 21 worth of swindling and cheating at the game. 22 It was a dealer agent scam. That is the second 23 basis for the exclusion. And in the course of 24 that decision, the Respondent admits, for 25 example, lying to investigators concerning the 17 ITEM NO. 5 1 whereabouts of certain family members. He 2 admits to falsifying an employment application, 3 and things like that. When he came back to 4 work, when he was on the prohibited list. So 5 there was a number of things that attached to 6 this individual. 7 We checked to see if there's a nexus to 8 the casinos. He's been in six casinos 9 gambling. He has in excess of $11,000 worth of 10 buy-ins. He has received complimentaries. And 11 for all of these reasons, the revocation of the 12 license, the cheating scam which goes to the 13 integrity of the games, I urge that the 14 individual be placed on the exclusion list 15 pending further proceedings. 16 Thank you. 17 CHAIR KASSEKERT: Thank you. 18 Let me ask if the Commissioners have any 19 questions? 20 COMMISSIONER SOMMELING: No questions, 21 Madame Chair. 22 COMMISSIONER EPPS: I have a question. 23 CHAIR KASSEKERT: Commissioner Epps? 24 COMMISSIONER EPPS: If several people 25 were arrested in this scam or operation, why is 18 ITEM NO. 5 1 Mr. Nguyen the only one being sought to be 2 placed on the exclusion list? 3 MR. STEBBINS: Well, first of all, he's 4 the only one being sought right now. There are 5 other persons under investigation. First let 6 me say that. 7 Secondly, when we do exclusions, we look 8 for what we call a "nexus" to the casinos to 9 see if it's even beneficial, if it protects the 10 public interest to exclude somebody. If 11 somebody's not going to show up or hasn't shown 12 up for an extended period of time, we will 13 forbear from bringing a petition to exclude 14 simply because there's not any risk if he's not 15 there. 16 COMMISSIONER EPPS: So -- 17 MR. STEBBINS: Does that answer the 18 question? 19 COMMISSIONER EPPS: Well, I mean, that 20 starts to speak, I guess, to Mr. Nguyen. I 21 guess you're suggesting that because he's had 22 other casino visits -- 23 MR. STEBBINS: Yes, he has. 24 COMMISSIONER EPPS: -- that it's prudent 25 that you act now -- 19 ITEM NO. 5 1 MR. STEBBINS: Correct. 2 COMMISSIONER EPPS: -- to prevent some 3 cheating that might happen in the future? 4 MR. STEBBINS: Correct. He's been in 5 six different casinos as recently as 2008. He 6 has by-ins into the casinos. This what we know 7 by looking at the play records that we have. 8 COMMISSIONER EPPS: Now, he had a 9 hearing before? 10 MR. STEBBINS: He had -- 11 COMMISSIONER EPPS: Did he have a 12 hearing, previous hearing? 13 MR. STEBBINS: He had a hearing on the 14 license application. 15 COMMISSIONER EPPS: Was there anything 16 that precluded him from visiting the casinos? 17 MR. STEBBINS: At that time I don't 18 believe so. 19 COMMISSIONER EPPS: Okay. So, I mean, I 20 guess my concern is there's nothing that 21 precludes him from visiting the casinos up to 22 this point. So did he know -- is there some 23 reason that he would know that his visiting 24 casinos would somehow impact him negatively 25 down the line? 20 ITEM NO. 5 1 MR. STEBBINS: No, sir. No, sir. But 2 what -- but from our perspective, with the 3 resources that we have, we will act when we 4 have somebody who's actively present in the 5 casinos, particularly in the case where you 6 have a cheating scam here that goes to the 7 integrity of the games. 8 COMMISSIONER EPPS: I mean, I guess my 9 question is, has he -- he was involved in a 10 cheating scam? 11 MR. STEBBINS: Yes. 12 COMMISSIONER EPPS: Has he done 13 something else with respect to cheating other 14 than just visiting casinos that makes us say 15 this guy who was involved in a cheating scam in 16 the past is still visiting casinos so, 17 therefore, he should be precluded from the 18 casinos because he cheated before. 19 MR. STEBBINS: And the answer to that is 20 yes. It went to the integrity of the games. 21 He did cheat. It was a conviction. It's been 22 reduced to a judgment of conviction. And he 23 has been back again. And what we're trying to 24 do and we're asking you to enter the order to 25 accomplish is to protect the integrity of the 21 ITEM NO. 5 1 games by keeping a person who's been convicted 2 of cheating out of the casino. 3 COMMISSIONER EPPS: Now, is that your 4 process with every cheat that is convicted, 5 that if they start to go the casinos again 6 after conviction, you seek to have them 7 excluded? 8 MR. STEBBINS: I don't want to say that 9 we'll do that -- you know, we bring a petition 10 in every case. Again, we will look at it to 11 look at the depth and breadth of any gaming 12 activity and make a judgment on that. 13 COMMISSIONER EPPS: So what is the -- 14 again, what is the depth and breadth of this 15 petition that makes it necessary to exclude 16 this person after that? 17 MR. STEBBINS: Six separate casinos, 18 over $11,000 worth of cash by-ins, and gaming 19 activity that has run all the way up to 2008. 20 COMMISSIONER EPPS: But do those suggest 21 cheating? 22 MR. STEBBINS: I don't want to say that 23 they suggest cheating, but he has the prior 24 history of cheating with the conviction. 25 COMMISSIONER EPPS: I mean, I guess the 22 ITEM NO. 5 1 thing I'm having trouble understanding is -- I 2 understand protecting the integrity of the 3 game, but I don't necessarily see the nexus 4 between someone who continues to, for all we 5 know, legally play, even if he's playing a lot 6 of money, and cheating. To protect the 7 integrity of the game, do we need some showing 8 that he's continually cheating? Or is that not 9 necessary? 10 MR. STEBBINS: I would say that that is 11 not necessary. You don't know when somebody is 12 going to go over to the other side, so to 13 speak. Okay? In this case we know that he has 14 a history of doing that because he has a 15 conviction. Okay? We know that he's been 16 back. So that's why the action's been brought. 17 Not -- when I say "back" in the casinos, I mean 18 back with six casinos and over $11,000 worth of 19 by-ins. 20 Do were he know he's been cheating? No. 21 But he has in the past, and it was a judgment 22 of the Agency, and I bring it before you today 23 saying this is somebody who should not be in 24 the casinos. 25 COMMISSIONER EPPS: Well, can you give 23 ITEM NO. 5 1 me more information about how you pursue -- how 2 you've pursued other cheaters with respect to a 3 conviction of cheating and appearances in the 4 casinos? Because is one necessarily an indicia 5 of the other? The fact that someone cheated in 6 the past and was convicted, served their time, 7 nothing precludes them from coming back to the 8 casino and playing legally and fairly. 9 MR. STEBBINS: That is correct. 10 COMMISSIONER EPPS: Is it the amount 11 that they play? Is it the frequency they play? 12 What is it that makes this guy a cheat risk 13 more than anybody else? I mean, are you saying 14 that if he came in and played 25 bucks, it 15 wouldn't be an issue? I mean, is it the amount 16 of money he played? It is the number of times 17 he played? What is it that makes this guy -- 18 MR. STEBBINS: Each case is fact 19 sensitive. We looked at the dollar amount. We 20 look at the frequency. We look at the recency 21 of the presence in the casino, and we make a 22 judgment on that. 23 COMMISSIONER EPPS: Okay. 24 VICE CHAIR SOMMELING: Does that 25 judgment mean that there's a presumption that 24 ITEM NO. 5 1 he's going to cheat again? Because he has a 2 past history of cheating and he was convicted? 3 MR. STEBBINS: I would suggest that 4 certainly that is something that would come 5 into the mix, that if he's done it before, you 6 know, he may do that again. That's one of the 7 concerns that we have. Yes. 8 VICE CHAIR SOMMELING: Thank you. 9 MR. STEBBINS: I don't want to say 10 "presumption," but it's something that we 11 consider. It's like the starting point for the 12 analysis. 13 VICE CHAIR SOMMELING: Okay. Thank you. 14 CHAIR KASSEKERT: Commissioner Fedorko, 15 any questions? 16 COMMISSIONER FEDORKO: No questions. 17 CHAIR KASSEKERT: Okay. 18 COMMISSIONER FEDORKO: Madame Chair, I 19 make a motion to grant the Division's request 20 for preliminary order placing the name of Quan 21 Nguyen on the exclusion list pending the 22 outcome of the petition for final exclusion. 23 VICE CHAIR SOMMELING: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 25 ITEM NO. 8 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 COMMISSIONER EPPS: I just want to state 4 for the record that I don't oppose a hearing 5 with respect to a final exclusion, but I would 6 vote no with respect to placing it on the 7 temporary exclusion before a final hearing. 8 CHAIR KASSEKERT: Okay. Motion passes 9 three to one. 10 Thank you. 11 MR. STEBBINS: Thank you. 12 MR. NANCE: Item No. 8, in consideration 13 petition of Margaritaville of Atlantic City, 14 LLC, for declaratory rulings on its license 15 status. 16 Miss Wozniak? 17 MS. WOZNIAK: Good morning, Chair, 18 Commissioners. 19 We have a revised draft resolution dated 20 10-14-08 which you should have and which has 21 been distributed to the parties. 22 Mr. Michael and Mr. Carroll are here for 23 the Petitioners and Mr. Adams for the Division. 24 CHAIR KASSEKERT: Good morning, Mr. 25 Michael, Mr. Carroll. 26 ITEM NO. 8 1 MR. CARROLL: Good morning. 2 MR. MICHAEL: Good morning. 3 CHAIR KASSEKERT: Mr. Michael? 4 MR. MICHAEL: Thank you Madame Chair, 5 members of the Commission. 6 As Ms. Wozniak has stated, we've been 7 provided with a draft resolution, and after 8 consultation with the client, rather than 9 pressing the continuing issue of what kind of 10 license they might require, Margaritaville is 11 prepared to file a casino license application, 12 and we have no objection to the resolution as 13 it stands. 14 CHAIR KASSEKERT: Thank you. 15 Mr. Adams? 16 MR. ADAMS: Good morning, Madame Chair 17 and Commissioners. 18 You have our response to the petition. 19 You've heard Mr. Michael's presentation. We 20 don't oppose applying for a casino license, 21 which we think is appropriate here under the 22 circumstances. 23 I've looked at the draft resolution and 24 have no problems with it. 25 CHAIR KASSEKERT: Thank you. 27 ITEM NO. 8 1 Any questions? 2 VICE CHAIR SOMMELING: I have no 3 questions, Madame Chair. 4 COMMISSIONER EPPS: Madame Chair, I move 5 that we adopt the draft resolution and: A, 6 deny Petitioner's request for a ruling that it 7 is eligible for a casino service industry 8 license pursuant to NJSA 5:12-104a; and, B, 9 grant Petitioner's request for rulings that it 10 is eligible for and must obtain a casino 11 license pursuant to NJSA 5:12-82, but is not 12 required to obtain interim casino authorization 13 pursuant to NJSA 5:12-95.12 to the extent set 14 forth in the finding -- to the extent set forth 15 in the findings and rulings and subject to the 16 conditions in the resolution. 17 VICE CHAIR SOMMELING: Second. 18 CHAIR KASSEKERT: Motion has been made 19 and seconded. This is a roll call vote. 20 MR. NANCE: Commissioner Fedorko? 21 COMMISSIONER FEDORKO: Yes. 22 MR. NANCE: Commissioner Epps? 23 COMMISSIONER EPPS: Yes. 24 MR. NANCE: Vice Chair Sommeling? 25 VICE CHAIR SOMMELING: Yes. 28 ITEM NO. 9 1 MR. NANCE: Chair Kassekert? 2 CHAIR KASSEKERT: Yes. 3 MR. NANCE: The record will reflect that 4 the motion is unanimous. 5 MR. MICHAEL: Thank you very much. 6 MR. CARROLL: Thank you. 7 MR. NANCE: For your consideration Item 8 No. 7. 9 CHAIR KASSEKERT: No. I think we're 10 going recess. 11 MS. FAUNTLEROY: Recess. 12 MR. NANCE: Oh. We're going to recess? 13 CHAIR KASSEKERT: We're going to take a 14 brief recess. 15 (A recess was taken from 11:00 to 11:10 16 a.m.) 17 CHAIR KASSEKERT: We're going to go back 18 on the record to deal, not with Item 6 or Item 19 7 at this point yet, but the agenda items that 20 are later in the interest of moving the process 21 along and getting Commissioner Fedorko his 22 lunch. 23 MR. NANCE: Item No. 9, for your 24 consideration petition of Harrah's Operating 25 Company, Inc., for an amendment to its 29 ITEM NO. 9 1 operation certificate to expand and reconfigure 2 its gaming floor. 3 Mr. Moncreif? 4 MR. MONCRIEF: Madame Chair and members 5 of the Commission, before you is a petition of 6 Harrah's Operating Company to amend its 7 operation certificate and expand its casino 8 floor. 9 Tim Lowry is here for Commission, and I 10 believe Deputy Attorney General Tim Ficchi 11 handled the matter for the Division. He said 12 there is no objection to the proposed 13 resolution that I passed around. 14 CHAIR KASSEKERT: Thank you. 15 Mr. Lowry? 16 MR. LOWRY: Good morning, Madame Chair 17 and Commission. I will not hold up his lunch 18 any more. 19 Needless to say, we reviewed the draft 20 petition. We stipulate, ask you approve it, 21 and any questions we can answer. 22 CHAIR KASSEKERT: Any questions? 23 COMMISSIONER EPPS: Clearly I don't care 24 about Commissioner Fedorko's lunch. I have a 25 question. 30 ITEM NO. 9 1 You guys were before us previously and 2 made Brigantine Room and Salon A, B, and C -- 3 MR. LOWRY: Uh-huh. 4 COMMISSIONER EPPS: -- poker space 5 previous. I mean, we've previously done this. 6 What has happened in the interim that requires 7 you to now need that space again? Did you -- I 8 mean, was it the expansion of the floor 9 downstairs after the construction projects were 10 done? That space was taken up down there and 11 now this is -- this is -- 12 MR. LOWRY: Yeah. These -- 13 Commissioner, these are different rooms. These 14 are Atlantic City Ballrooms A, B, C, and D. 15 And what we have is we have -- 16 COMMISSIONER EPPS: Not Brigantine? 17 MR. LOWRY: Not Brigantine. Right. 18 COMMISSIONER EPPS: Okay. Brigantine is 19 already included in the casino floor? 20 MR. LOWRY: Well, what happens is that 21 sometimes we'll ask for permission on a one 22 time or a temporary basis. 23 COMMISSIONER EPPS: Okay. 24 MR. LOWRY: This is on a permanent 25 basis. 31 ITEM NO. 9 1 COMMISSIONER EPPS: Okay. 2 MR. LOWRY: I think what we do is we 3 save the time, effort, and energy of your staff 4 and the Division staff instead of coming back 5 every time and time, we have the available 6 space. We have sufficient qualified sleeping 7 units. I think the maximum casino space is 8 200,000 square feet, and this is -- would 9 expand it to 172,000. So by doing this, we've 10 save time going back and forth all the time. 11 COMMISSIONER EPPS: Okay. So the 12 clarification is those rooms that you come to 13 us to use as poker tournament space had been on 14 a temporary basis, and you're just making it a 15 permanent request, that you can switch it out 16 whenever you need it? 17 MR. LOWRY: Yeah. Yup. 18 MR. EPPS: Okay. That clears it up for 19 me. 20 (Mr. Ficchi enters.) 21 CHAIR KASSEKERT: Mr. Ficchi, timing is 22 perfect. 23 MR. FICCHI: No. I hope. Good morning, 24 Chair, Commissioners. 25 The Division has reviewed -- I assume 32 ITEM NO. 9 1 we're talking about the Harrah's expansion. 2 Otherwise, I wouldn't be here. 3 CHAIR KASSEKERT: Right. 4 MR. FICCHI: The Division has reviewed 5 the draft resolution, and we have no objection 6 to the adoption of that resolution by the 7 Commission. 8 Thank you. 9 CHAIR KASSEKERT: Thank you. 10 Any other questions? 11 VICE CHAIR SOMMELING: No questions, 12 Madame Chair. 13 Madame Chair, move to adopt the draft 14 resolution and approve the petition of Harrah's 15 Operating Company, Incorporated, for an 16 amendment to its certificate of operation and 17 casino hotel alcoholic beverage license to 18 permit the reconfiguration and expansion of its 19 gaming floor subject to the conditions in the 20 resolution. 21 COMMISSIONER EPPS: Second. 22 COMMISSIONER FEDORKO: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. All in favor? 25 (Ayes.) 33 ITEM NO. 10 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: Motion carries. 4 Thank you. 5 MR. LOWRY: Thank you. 6 MR. MONCRIEF: Thank you. 7 MR. NANCE: Item No. 10, proposed 8 adoption of amendment concerning signage for 9 six-to-five blackjack variation. 10 Mr. Briliant? 11 MR. BRILIANT: Good morning, Madame 12 Chair, and Commissioners. 13 This proposal before you would require 14 that a notice of the $5 incremental wager 15 requirement must be posted at a six-to-five 16 blackjack game in the same manner as minimum 17 and maximum wagers or other game requirements 18 are posted. 19 This amendment should help to alleviate 20 any possible patron confusion in the 21 six-to-five blackjack variation and would also 22 create a consistent notice policy with regard 23 to incremental wagers. 24 The notice of proposal was published in 25 the New Jersey Register on July 21st, 2008. No 34 ITEM NO. 11 1 comments have been received. 2 The matter is now before you for final 3 action. 4 CHAIR KASSEKERT: Thank you. 5 Any questions? 6 COMMISSIONER EPPS: Madame Chair, I move 7 for adoption as published without change. 8 VICE CHAIR SOMMELING: Second. 9 COMMISSIONER FEDORKO: Second. 10 CHAIR KASSEKERT: The motion has been 11 made and seconded. All in favor? 12 (Ayes.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: Motion carries. 16 MR. NANCE: Item No. 11, proposed 17 adoption of amendments regarding funding and 18 transfers of annuity slot jackpots. 19 Mr. Briliant? 20 MR. BRILIANT: This proposal would 21 permit up to $1,000 of each annual annuity 22 jackpot payment to be funded with cash. It's 23 indicated in the original notice of proposal. 24 This should help to prevent the overfunding of 25 annuity jackpots. 35 ITEM NO. 12 1 The notice of proposal was published in 2 the New Jersey Register on January 22nd, 2008. 3 And, again, no comments have been 4 received. 5 CHAIR KASSEKERT: Thank you. 6 Any questions? 7 COMMISSIONER SOMMELING: No questions, 8 Madame Chair. 9 COMMISSIONER EPPS: Madame Chair, I move 10 for adoption as published without change. 11 VICE CHAIR SOMMELING: Second. 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 MR. BRILIANT: Thank you. 20 CHAIR KASSEKERT: Thank you. 21 MR. NANCE: Item No. 12, petition of 22 Trump Taj Mahal Associates, LLC, for rulemaking 23 to permit a variation of bad beat slot -- 24 excuse me -- bad beat jackpot procedures. 25 Mr. Mamolen? 36 ITEM NO. 12 1 MR. MAMOLEN: Good morning, Madame Chair 2 and Commissioners. 3 CHAIR KASSEKERT: Good morning. 4 MR. MAMOLEN: This matter, as I 5 understand it, there's been a postponement 6 request by the Petitioner. 7 Miss Pickus is outside the public 8 meeting room. I don't know that she needs to 9 make an appearance, per se. But as I 10 understand it, again, there's a request for 11 postponement. 12 CHAIR KASSEKERT: Thank you. 13 Any -- 14 COMMISSIONER EPPS: Madame Chair, I move 15 that we table this item for up to 90 days. 16 VICE CHAIR SOMMELING: Second. 17 CHAIR KASSEKERT: The motion has been 18 made and seconded. All in favor? 19 (Ayes.) 20 CHAIR KASSEKERT: Opposed? 21 (No response.) 22 CHAIR KASSEKERT: Motion carries. 23 Thank you. We will again recess. Thank 24 you. 25 (A recess was taken from 11:15 to 11:53 37 ITEM NO. 7 1 a.m.) 2 CHAIR KASSEKERT: Thank you. We'll go 3 back on the record and proceed with Item 7. 4 MR. NANCE: Item No. 7, consideration of 5 the seventh application of the application of 6 the Trustee and Conservator of the former 7 casino licensee, Adamar of New Jersey, Inc., 8 for approval of the fees for the 9 Conservator/Trustee, his personal counsel, 10 legal, and other consultants. 11 Miss Fauntleroy? 12 MS. FAUNTLEROY: Yes. Good afternoon, 13 we are approaching. 14 You have before you Item No. 7. For 15 your consideration are the requests to approve 16 the following invoices: Michael Brown for 17 August 1 through August 31; Cole Schotz for the 18 period of July 1 through July 31; Debevoise & 19 Plimpton for the period July 1 through August 20 31; Pashman Stein for the period July 21 21 through August 20; and for Justice Stein as 22 Trustee/Conservator for July 21 through August 23 20. 24 CHAIR KASSEKERT: Miss Fauntleroy, can 25 you just -- the dates are different on the 38 ITEM NO. 7 1 resolution that I have. So would you just go 2 through those again? I got the last -- I 3 missed the last two. 4 MS. FAUNTLEROY: Pashman Stein. 5 CHAIR KASSEKERT: Right. 6 MS. FAUNTLEROY: For July 21 through 7 August 20. 8 CHAIR KASSEKERT: August 20. Okay. 9 MS. FAUNTLEROY: And Justice Stein as 10 Trustee and Conservator for July 21 through 11 August 20. 12 CHAIR KASSEKERT: 20. Okay. 13 MS. FAUNTLEROY: The bill dates for the 14 Justice and for Pashman Stein coincide with the 15 Conservator's reporting periods. 16 CHAIR KASSEKERT: Okay. Thank you. 17 Mr. Mack? 18 MR. MACK: Good morning, Chair, 19 Commissioners. 20 We've submitted our invoices. I'm happy 21 to answer any questions you may have about the 22 invoices or our request. 23 CHAIR KASSEKERT: Thank you. 24 We'll hear from Miss Flaherty first and 25 see if there are any questions. 39 ITEM NO. 7 1 MS. FLAHERTY: Yes. Thank you, Chair. 2 Good morning, Commissioners. 3 I would have like to have marked a 4 letter that' been dated September 22, 2008. 5 MR. MACK: No objection. 6 CHAIR KASSEKERT: No objection? 7 Seeing no objection, Mr. Nance, do you 8 have that letter? 9 MS. FLAHERTY: I can provide it. 10 MR. NANCE: Yes, I have it. We will 11 mark it. 12 CHAIR KASSEKERT: Mark it for us, 13 please, and we will move it into evidence. 14 MR. NANCE: Mark it as P-1. 15 CHAIR KASSEKERT: No. Actually, it's 16 D-1. 17 MR. NANCE: D-1? Oh, this is yours. 18 CHAIR KASSEKERT: Division's letter. 19 MS. FLAHERTY: Some events have happened 20 since the filing of that letter. It is our 21 position that if the conditions and relief 22 being sought, that the Commission should 23 reaffirm if the $19 million cash reserve 24 requirement upon Tropicana and that the other 25 relevant conditions of the Commission 40 ITEM NO. 7 1 Resolution 08-06-04-15 and 08-06-18-21 also be 2 reimposed. 3 We believe that it should also be 4 required that an insurance reserve be kept 5 separately with regard to a new insurance 6 requirement, and that would be our preference. 7 And we understand as well that's the insurance 8 company's preference to have the reserves 9 separately. 10 Alternatively, if it becomes the more 11 appropriate course, the added insurance either 12 could be added or should be added to the 13 existing $19 million cash reserve requirement. 14 In our view, Tropicana must also abide 15 by representations as follows: First, that 16 weekly meetings will be held with regard to the 17 30-day rolling cash forecasts; 18 Two, that those forecasts will be 19 modified appropriately; 20 Three, that the six-month rolling 21 forecasted income statements which will 22 encompass but not be limited to the insurance 23 reserve, all fees related to the 24 conservatorship and bankruptcy, and any debt to 25 be paid will be provided; 41 ITEM NO. 7 1 Next, that such information will be 2 adjusted properly and conform with the cash 3 forecasts information; 4 And, lastly, that the continuing and 5 open dialog of which we have established will 6 remain in effect. 7 The Division also recommends that 8 Tropicana must advise the Trustee/Conservator 9 on a regular basis of the financial forecasts 10 which should be presented to him for his review 11 and consideration. 12 With those conditions, the Division 13 leaves to the Commission's discretion the 14 pending Conservator request for fee approvals. 15 Thank you. 16 CHAIR KASSEKERT: Thank you. 17 Mr. Mack, my understanding is that you 18 are prepared to agree with those conditions? 19 MR. MACK: Yes, Chair. We don't object 20 to those conditions. 21 In terms of the letter in terms of the 22 insurance, currently our preference is to 23 create a separate reserve account. As I 24 understand, that's what the carriers require of 25 us, anyway. 42 ITEM NO. 7 1 CHAIR KASSEKERT: Thank you. 2 Let me ask if any of the Commissioners 3 have any questions? 4 VICE CHAIR SOMMELING: I have no 5 questions, Madame Chair. 6 CHAIR KASSEKERT: Okay. 7 COMMISSIONER FEDORKO: Motion to approve 8 the following invoices: A, Conservator/Trustee 9 Stein for a period of July 21 to August 20, 10 2008; B, Pashman Stein for the period of July 11 21 through August 30, 2000 -- I am sorry. 12 August 20, 2008; C, Debevoise & Plimpton for 13 period of July 21 to August 31, 2008; D, Cole 14 Schotz for the period of July 1 through July 15 31, 2008; and, E, Michael Brown for the period 16 of August 1 through August 31, 2008, all 17 subject to the conditions imposed in the 18 Commission Resolution No. 08-06-04-15 and 19 08-06-18-21, including the provision of daily 20 cash schedules and updated forecasts. 21 VICE CHAIR SOMMELING: Second. 22 COMMISSIONER EPPS: Question to the 23 motion. 24 CHAIR KASSEKERT: Sure. 25 COMMISSIONER EPPS: How does that speak 43 ITEM NO. 6 1 to the insurance reserve? Is it in one of 2 those two resolutions? Or should that be added 3 to this motion? 4 MS. FAUNTLEROY: Actually, it would be a 5 proposed Resolution 08-06-18-21. So if the 6 motion were to reflect that it's subject to the 7 conditions requested by the Division, that 8 would certainly be appropriate. 9 COMMISSIONER EPPS: Okay. 10 CHAIR KASSEKERT: Commission Fedorko, 11 would you put that on the record? 12 COMMISSIONER FEDORKO: Subject to the 13 conditions imposed by the Division, also. 14 CHAIR KASSEKERT: Thank you. 15 COMMISSIONER EPPS: Thank you. 16 VICE CHAIR SOMMELING: Second. 17 CHAIR KASSEKERT: The motion has been 18 made and seconded. All in favor? 19 (Ayes.) 20 CHAIR KASSEKERT: Opposed? 21 (No response.) 22 CHAIR KASSEKERT: Motion carries. 23 MR. NANCE: Item No. 6, petition of the 24 Trustee and Conservator for the former casino 25 licensee, Adamar of New Jersey, Inc., to extend 44 ITEM NO. 6 1 the sale period. 2 Mr. DiGiacomo? 3 MR. DiGIACOMO: Chair, Commissioners, 4 good morning. 5 CHAIR KASSEKERT: Good morning. 6 MR. DiGIACOMO: Mr. Sean Mack is here on 7 behalf of the Petitioner, Mary Jo Flaherty for 8 the Division. Counsel for various parties 9 seeking to move -- move for intervention or 10 participation are also present. But, I 11 believe, Chair, you are prepared to deliver 12 some remarks? 13 CHAIR KASSEKERT: Thank you. Yes. 14 Before I do that, let me just ask if Mr. 15 Mack or Ms. Flaherty have anything that they 16 want to put on the record at this point? 17 MS. FLAHERTY: I would just put on the 18 record, Chair, that I've been provided with a 19 draft resolution by Mr. DiGiacomo, 08-10-15-06 20 and that we have no objection to the draft 21 resolution. 22 CHAIR KASSEKERT: Thank you. 23 Mr. Mack? 24 MR. MACK: Chair, I've also reviewed 25 this draft resolution, I have no objection to 45 ITEM NO. 6 1 the idea of it. 2 I have a question on what Paragraph 2 3 means, just so I understand and wouldn't be in 4 violation going forward over the next couple 5 weeks. 6 CHAIR KASSEKERT: Sure. Mr. DiGiacomo? 7 MR. DiGIACOMO: For the record, Chair, 8 let me state what it he says: Until further 9 order, Justice Stein shall not sell the 10 property entrusted to him or otherwise formerly 11 engage in that process, although in the absence 12 of any objection and consistent with NJSA 13 5:12-130.2C and 95.14E, he may stabilize any 14 perceived uncertainty on the potential buyer's 15 part with the goal of maintaining the status 16 quo. 17 MR. MACK: I guess my particular 18 question, the status quo currently is that we 19 are negotiating with the Cordish Company to try 20 to prepare a final proposed purchase agreement. 21 And just to make sure I'm not in any violation 22 going forward, can I continue those 23 negotiations until the 29th without signing 24 that? 25 MR. DiGIACOMO: I would say, Chair, in 46 ITEM NO. 6 1 the absence of any objection, that would be a 2 permissible action that they could pursue. 3 CHAIR KASSEKERT: But not to move beyond 4 that point? 5 MR. MACK: Absolutely. Just to continue 6 the negotiations until we get to the 29th, but 7 certainly no signing of anything or -- 8 CHAIR KASSEKERT: Just looking at the 9 General Counsel. 10 MS. FAUNTLEROY: If there any objection 11 from the Division. 12 MS. FLAHERTY: From the Division? 13 CHAIR KASSEKERT: You understand what 14 our goal is here, Mr. Mack, given the fact that 15 we have a pending Supreme Court argument to 16 make. 17 MS. FLAHERTY: Well, I read the 18 language, and to me it meant that they 19 obviously might have some matters that they 20 needed to discuss at this moment to stabilize 21 the situation. But I did not take it to mean 22 that there would be active, ongoing 23 negotiations toward an agreement. 24 MR. DiGIACOMO: If you want to so 25 constrain it, Chair, that would be appropriate, 47 ITEM NO. 6 1 too. 2 CHAIR KASSEKERT: Yeah. I think our 3 concern is that we maintain the status quo here 4 so that nothing move forward at this point. 5 And if that further clarifies it -- 6 Let me just look at my fellow 7 Commissioners to see if anyone -- 8 Commissioner Epps? 9 COMMISSIONER EPPS: I guess the question 10 is, does status quo means that the matter stays 11 what it is today so that no further development 12 happen between now and the next meeting? If 13 that's what status quo is. I mean, the 14 question is what does "status quo" mean? To 15 me, status quo means it stays in the position 16 it is in today so it gets no better or worse 17 between now and then, but it doesn't -- it 18 doesn't -- 19 CHAIR KASSEKERT: Doesn't change. 20 COMMISSIONER EPPS: It doesn't move. 21 MS. FLAHERTY: We would concur, 22 Commissioner. Thank you. 23 CHAIR KASSEKERT: Is that clear, Mr. 24 Mack? 25 MR. MACK: I guess that helps in terms 48 ITEM NO. 6 1 of the status quo. I just -- again, then I 2 don't understand what the stabilizing perceived 3 uncertainty on the buyer's part is. And can I 4 continue having discussions with him to keep 5 him involved until the 29th? I'm not sure what 6 I'm allowed to do. 7 COMMISSIONER EPPS: I mean, and maybe 8 I'm over-simplifying the process, but it seems 9 fairly certain to me that a conversation says 10 what we've -- what we understand has -- will 11 not change and does not change, and we stop 12 what we're doing until we hear what happens on 13 the 29th. So wherever we are right now is 14 where we are. There's nothing that changes to 15 your detriment. There's nothing that changes 16 to your benefit. We stop what we're doing. We 17 wait to see what happens on the 29th, and, 18 thereafter, we pick up and go forward from that 19 point. 20 You make a call. You say we got to 21 stop. Right where we are is where we're going 22 to stay. We're just going to leave everything 23 alone. And we'll pick it up on the 29th if 24 we're permitted to. 25 MR. MACK: Okay. I appreciate the 49 ITEM NO. 6 1 clarification of the Commission. 2 CHAIR KASSEKERT: Thank you. All right. 3 The current expiration date for the 4 purposes of Section 95.14E of the Act is 5 tomorrow. Justice Stein seeks an extension of 6 that period through November 12th, 2008. 7 This past Friday the Commission received 8 an order from the New Jersey State Supreme 9 Court granting the petition for certification 10 that Adamar and its former holding companies 11 had filed. Despite the Appellate Division of 12 the Superior Court having in July unanimously 13 upheld the Commission's decision from last 14 December, the recent action by the State 15 Supreme Court leaves no doubt that an appeal is 16 pending for the purposes of Section 130.2C of 17 the Casino Control Act. 18 Under that section, only in the absence 19 of an appeal may a Conservator "endeavor to and 20 be authorized to sell" the property entrusted 21 to him. However, the full impact of the 22 repercussions from the recent Supreme Court 23 action on the sale process is unknown. 24 Further, the former casino licensee's 25 counsel who's prosecuting -- who's pursuing the 50 ITEM NO. 6 1 Supreme Court appeal on its behalf, wrote the 2 Commission on Friday that the pending extension 3 request should be denied, and two creditor 4 interests having recently sought permission to 5 intervene or participate in the Justice's 6 extension request. Without seeking leave to 7 intervene or participate, the official 8 Unsecured Creditors Committee appointed in the 9 pending Delaware bankruptcy matter wrote a 10 letter to the Commission yesterday setting 11 forth its position on the merits of the 12 extension request. 13 With today's deadline looming, the goal 14 certainly was to conclude the matter today. 15 However, analyzing the written materials in the 16 short time available is not practicable. Thus, 17 the entire matter, including the pending 18 intervention motions, will be carried until the 19 next regular Commission public meeting on 20 October 29th, 2008. Solely as a means to 21 accommodate that scheduling, a brief extension 22 of the sale period through that date, thus, in 23 my view, is appropriate. 24 In the interim, Justice Stein is 25 specifically instructed not to sell the 51 ITEM NO. 6 1 property or otherwise formerly engage in that 2 process. 3 And we just heard from the Division with 4 respect to -- and Commission Epps -- which I 5 think is telling here, for him to stabilize any 6 perceived uncertainty on the potential buyer's 7 part with the goal of maintaining the status 8 quo. 9 And, obviously, Mr. Mack you heard our 10 comments with respect to what we perceive the 11 status quo as being. And -- and not moving 12 forward. 13 By October 17th, 2008, any further 14 motions to intervene shall be filed, which will 15 give the Unsecured Creditors Committee, in the 16 event it continues to wish to be heard, the 17 opportunity to perfect an application for 18 intervention or participation under NJAC 1:1-16 19 and to comply with NJAC 19:40-5.2. 20 Those movants that have already filed 21 for intervention, and for these purposes, that 22 includes counsel on behalf of the former casino 23 licensee, shall by that date supplement their 24 written materials to address the following 25 additional matters: 52 ITEM NO. 6 1 No. 1, in what, if any, activity short 2 of an actually sale may Justice Stein engage in 3 without running afoul of Section 130.2C? 4 No. 2, with Section 130.2C focusing on a 5 sale of assets in bulk, whereas the corpus of 6 the ICA trust includes Adamar's common stock, 7 does the "except during the pendency of an 8 appeal" restriction only apply if the deal is 9 structured as an asset purchase rather than a 10 stock sale? 11 And, No. 3, what are the consequences if 12 a sale under Section 95.14E does not occur by 13 the prescribed deadline? 14 The Justice and the Division would then 15 have the opportunity to respond by October 16 21st, 2008. 17 Speaking of the Division, given the 18 stipulation as to certain financial conditions 19 that the parties in Item 7 placed on the record 20 earlier today, I believe it is appropriate that 21 those conditions also attach to the interim 22 relief that I am proposing in this matter. 23 Accordingly, I move to adopt the draft 24 resolution and so extend the sale period for 13 25 days through October 29th, 2008, subject to the 53 1 earlier described instructions, conditions, and 2 filing deadlines. 3 Is there a second? 4 VICE CHAIR SOMMELING: Second. 5 CHAIR KASSEKERT: Motion is made and 6 seconded. This is a roll call vote. 7 MR. NANCE: Commissioner Fedorko? 8 COMMISSIONER FEDORKO: Yes. 9 MR. NANCE: Commissioner Epps? 10 COMMISSIONER EPPS: Yes. 11 MR. NANCE: Vice Chair Sommeling? 12 VICE CHAIR SOMMELING: Yes. 13 MR. NANCE: Chair Kassekert? 14 CHAIR KASSEKERT: Yes. 15 MR. NANCE: The record will reflect that 16 the motion is unanimous. 17 CHAIR KASSEKERT: Thank you. 18 MR. DiGIACOMO: Thank you, 19 Commissioners. 20 MR. MACK: Thank you. 21 MR. NANCE: In accordance with 22 Resolution No. 07-12-12-26, the next closed 23 session of the Commission shall be held on 24 Wednesday, October 29th, 2008, at 9:15 a.m. in 25 the Commission offices. 54 1 It is now time for the public 2 participation portion of the meeting. 3 CHAIR KASSEKERT: Is there anyone from 4 the public who wishes to heard? 5 (No response.) 6 CHAIR KASSEKERT: Seeing no one, I'll 7 declare the position of this meeting closed and 8 entertain a motion to adjourn. 9 VICE CHAIR SOMMELING: Motion to 10 adjourn. 11 COMMISSIONER FEDORKO: Second. 12 CHAIR KASSEKERT: The motion has been 13 made and seconded. All in favor? 14 (Ayes.) 15 CHAIR KASSEKERT: Opposed? 16 (No response.) 17 CHAIR KASSEKERT: Motion carries. Thank 18 you. 19 (Public Meeting No. 08-10-15 was 20 adjourned at 12:07 p.m.) 21 22 23 24 25 55 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: October 16, 2008 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25