1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 08-12-10 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, December 10, 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 10:33 a.m. to 11:30 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 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 DENIS CORBETT, SENIOR COUNSEL TERESA M. NAGENGAST, SENIOR COUNSEL 11 E. DENNIS KELL, ASSISTANT GENERAL COUNSEL SETH H. BRILLIANT, SENIOR COUNSEL 12 LON E. MAMOLEN, SENIOR COUNSEL ROBERT A. MONCRIEF, COUNSEL 13 TRACY E. RICHARDSON, SENIOR COUNSEL CLAIRE FRANK, PROGRAM MANAGER 14 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 15 DIVISION OF GAMING ENFORCEMENT: DEPUTY ATTORNEYS GENERAL 16 BRIAN BISCIEGLIA, DEPUTY ATTORNEY GENERAL TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL 17 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL JAMES FOGARTY, DEPUTY ATTORNEY GENERAL 18 CHARLES F. KIMMEL, DEPUTY ATTORNEY GENERAL LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL 19 DOROTHY TURI, DEPUTY ATTORNEY GENERAL 20 21 22 23 24 25 3 1 A P P E A R A N C E S : 2 ITEM NO. 4 DENIS CORBETT, SENIOR COUNSEL TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL 3 LORETTA PICKUS, ESQ. FOR: TRUMP TAJ MAHAL ASSOCIATES 4 ITEM NO. 8 TERESA M. NAGENGAST, SENIOR COUNSEL 5 LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL LYNNE KAUFMAN, ESQ. 6 FOR: PAR-4, INC. 7 ITEM NO. 9 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL DOROTHY TURI, DEPUTY ATTORNEY GENERAL 8 STERNS & WEINROTH PAUL M. O'GARA, ESQ. 9 FOR: HARRAH'S ENTITIES 10 ITEM NO. 10 TRACY E. RICHARDSON, COUNSEL JAMES FOGARTY, DEPUTY ATTORNEY GENERAL 11 LYNNE KAUFMAN, ESQ. FOR: MARINA DISTRICT DEVELOPMENT 12 COMPANY, LLC 13 ITEM NO. 20 LEONARD J. DiGIACOMO, ASSISTANT 21 GENERAL COUNSEL 14 23 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL PASHMAN STEIN 15 SEAN MACK, ESQ. FOR: TRUSTEE/CONSERVATOR OF ADAMAR OF 16 NEW JERSEY, INC. 17 ITEM NO. 24 DIANNA W. FAUNTLEROY, GENERAL COUNSEL MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL 18 PASHMAN STEIN SEAN MACK, ESQ. 19 FOR: TRUSTEE/CONSERVATOR OF ADAMAR OF NEW JERSEY, INC. 20 21 22 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 08-12-10 2 December 10, 2008, 10:33 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of the 9 9 November 12, 2008, Public Meeting and 4 Special Meeting minutes of November 24, 9 10 2008 (conservator - approval of legal counsel) 5 2 Applications for employee and casino service industry licenses 6 8 applications for initial and/or renewal 10 11 of casino key and casino employee licenses 7 16 applications for initial and/or renewal 11 11 of casino key and casino employee licenses 8 Application of Timothy E. Burke for 11 12 renewal of a casino key employee license 9 and for qualification as Vice President of Slots Operations for Marina District Development 10 Company, LLC 3 Stipulations of settlement and consent agreements: 11 a) Darryl M. Johnson (08-0433-EA) 14 16 b) Robert D. Williams, Jr. (08-0465-EA) 14 16 12 c) Thomas R. McNeill (08-0308-ER) 14 16 d) Martiza Ortiz (08-0239-ER) 14 16 13 e) Christine M. Williams (08-0183-ER) 14 16 f) William F. Fresh (08-0466-ER) 14 16 14 g) Philip D'Agostino (08-0617-EA) 14 16 h) Donna S. Katzen (08-0873-EA) 14 16 15 i) Ashley Scalia (08-0757-EA) 14 16 j) Norma D. Worthy (08-0692-EA) 14 16 16 k) Joan St. Claire (08-0707-ER) 14 16 l) Barbara A. Staropoli (08-0811-ER) 14 16 17 m) Shirley E. White (08-0612-ER) 14 16 n) Robert G. Yetter (08-0613-ER) 14 16 18 o) Jessica E. Acosta (08-0313-RC) 14 16 p) Joseph W. Piedilato (08-0425-EA) 14 16 19 q) Joseph H. Thiel, III (08-0509-EA) 14 16 r) Jerry E. Walker, Jr. (08-0589-EA) 14 16 20 s) Stacey L. Watt (08-0132-ER) 14 16 t) Charles F. Carter (08-0815-NC) 14 16 21 u) Althea Brown (08-0518-ER) 14 16 4 Stipulations of settlement in State v. 16 19 22 Trump Taj Mahal Associates and Richard Rosen (08-0481-VC) 23 5 Petitions for early reapplication: a) Joseph M. Petrone (08-0749-RA) 19 20 24 b) Giovanni Rivera (08-0748-RA) 19 20 c) Daniel W. Smith (08-0747-RA) 19 20 25 d) Michelle A. Tyler (08-0861-RA) 19 20 e) Enrique Vargas (08-0784-RA) 19 20 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 08-12-10 2 December 10, 2008, 10:33 a.m. ITEM PAGE VOTE 3 6 Reconsideration of Commission final orders due to noncompliance of conditions therein: 4 a) Barry L. Hamlett (08-04269-NC) 26 29 b) Patricia A. Juarez (08-0643-NC) 26 29 5 c) Carlton Torian (08-0154-NC) 26 29 d) Christopher R. Wells (08-0625-NC) 26 29 6 e) Steven A. Wood (08-0641-NC) 26 29 7 Consideration of forfeiture orders in State v: 7 a) Marina District Development Company, 29 31 LLC, et al. (08-0521-VC) 8 b) Trump Taj Mahal Associates, et al. 29 31 (08-0211-VC) 9 c) Trump Taj Mahal Associates, et al. 29 31 (08-0519-VC) 10 d) Adamar of New Jersey, Inc., et al. 29 31 (08-0520-VC) 11 e) Trump Plaza Associates, et al. 29 31 (08-0722-VC) 12 f) Bally's Park Place, et al. 29 31 (08-0718-VC) 13 g) Marina District Development Company, 29 31 LLC, et al. (08-0721-VC) 14 8 Petition of PAR-4, Inc., for waiver of 32 35 qualification 15 9 Petition of Harrah's Entertainment, Inc., 35 38 and Harrah's Operating Company, Inc., for 16 approval of an exchange offer and other relief (PRN 3240801) 17 10 Joint petition of Marina District 38 43 Development Company, LLC, and Marina 18 District Finance Company, Inc., for declaratory relief with respect to 19 qualification issues and certain other issues related to certain debt transactions 20 (PRN 3230803) 11 Proposed readoption of NJAC 19:50 (Casino 43 44 21 Hotel Alcoholic Beverage Control) 12 Proposed adoption of amendments to NJAC 44 45 22 19:54-1.2 and 1.6 and New Rule 19:54-1.11 (Promotional Gaming Credits; Deduction 23 from Gross Revenue) 13 Proposed temporary adoption of amendments 12 13 24 to NJAC 19:45-1.1, 1.11, 1.33, 1.43, 1.46, 1.46B, 1.54, and 1.55 (Validation of Coupons 25 by a Gaming Voucher System) 6 1 CONTINUED AGENDA PUBLIC MEETING NO. 08-12-10 2 December 10, 2008, 10:33 a.m. ITEM PAGE VOTE 3 14 Proposed adoption of amendments to NJAC 45 47 19:47-14.6 (Counting of Poker Cards by 4 Automated Shuffling Device) 15 Proposed adoption of amendments to NJAC 47 48 5 19:46-1.18 (Card Inspection for Single Use Cards) 6 16 Petition of Bally's Park Place, Inc., to 48 50 amend its operation certificate and CHAB 7 license to reconfigure its gaming floor (PRN 3290803) 8 17 Proposed publication of amendments to 51 51 NJAC 19:45-1.54 (Gaming Vouchers; Physical 9 Characteristics; Procedures for Issuance and Redemption) 10 18 Rulemaking petition PRN 3010801 (Petition 52 53 of the Division of Gaming Enforcement to 11 amend NJAC 19:45-1.11 to expand the authority of casino licensee security departments to 12 include the detention of suspected underage gamblers and drinkers) 13 19 Proposed publication and temporary 13 14 adoption of amendments to NJAC 19:45-1.12 14 (Supervision of simulcast counter and adjacent cage areas)(PRN 3390808) 15 20 Petition of Trustee and Conservator of 53 66 Adamar of New Jersey, Inc., d/b/a Tropicana 16 Casino and Resort) to retain financial restructuring advisors (PRN 3330802) 17 21 Petition of Trustee and Conservator of 76 78 Adamar of New Jersey, Inc., (d/b/a Tropicana 18 Casino and Resort) to extend transactional waivers for consultants (PRN 3330801) 19 22 Proposed adoption of resolution concerning 78 79 closed sessions for public meetings scheduled 20 for the year 2009 23 Petition of Trustee and Conservator of 53 66 21 Adamar of New Jersey, Inc., (d/b/a Tropicana Casino and Resort) to retain a claims and 22 noticing agent (PRN 3390802) 24 Consideration of the applications of the 67 76 23 Trustee and Conservator for the former casino licensee, Adamar of New Jersey, Inc., for 24 approval of fees for the Conservator/Trustee, his personal counsel, legal, and other consultants 25 7 1 E X H I B I T S : 2 ITEM DESCRIPTION EVD 3 No. 2 4 P-1 Remand for hearings 8 license X 5 P-2 Grant 16 licenses X 6 7 Nos. 20 and 23 8 P-1 Engagement Letter with JH Cohn X 9 D-1 DGE Letter Report, 12-3-08, X Financial Restructuring Advisors 10 D-2 DGE Letter Report, 12-5-08, X 11 Claims and Noticing Agent 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (Exhibits retained by Commission.) 8 1 (Public Meeting 08-12-10 was commenced 2 at 10:33 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. 9 ITEM NO. 1 1 The matters discussed in closed session 2 were: Employee and enterprise license matters. 3 The Commissioners approved the November 4 12, 2008, closed-session minutes. 5 Litigation update regarding: Warren 6 Lackland and Lewis M. Springer, Jr., versus the 7 State of New Jersey, Casino Control Commission; 8 Petition of Tropicana, et al., for 9 renewal of casino license; 10 Application of Dana White for renewal of 11 a casino employee license; 12 And application of Bayshore Rebar for 13 casino service employee license and 14 qualification of Phyllis Merlino and Joseph N. 15 Merlino. 16 Item No. 1, ratification of the minutes 17 of November 12th, 2008, public meeting. 18 VICE CHAIR SOMMELING: Move to approve. 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. 10 ITEM NO. 2 1 MR. NANCE: And ratification of the 2 special meeting minutes of November 24th, 2008. 3 VICE CHAIR SOMMELING: Move to approve. 4 COMMISSIONER EPPS: Second. 5 CHAIR KASSEKERT: The motion has been 6 made and seconded. All in favor? 7 (Ayes.) 8 CHAIR KASSEKERT: Opposed? 9 (No response.) 10 CHAIR KASSEKERT: Motion carries. 11 MR. NANCE: Item No. 2, application for 12 employee and casino service industry licenses. 13 This agenda item will be entered as Exhibit 14 List 1 and 2. 15 Exhibit List 1 consists of 8 16 applications for initial and/or renewal of 17 casino key and casino employee licenses. 18 The Division as objected to licensure. 19 COMMISSIONER FEDORKO: Motion to remand 20 for hearing. 21 COMMISSIONER EPPS: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 11 ITEM NO. 2 1 (No response.) 2 CHAIR KASSEKERT: Motion carries. 3 MR. NANCE: Exhibit List 2 consists of 4 16 applications for initial and/or renewal of 5 casino key and casino employee licenses. 6 Staff and the Division has recommended 7 that these licenses be granted. 8 VICE CHAIR SOMMELING: Move to approve. 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: For consideration is the 17 application of Timothy E. Burke for renewal of 18 a casino key employee license and for 19 qualification as Vice President of Slots 20 Operations for Marina District Development 21 Company, LLC. 22 Staff and the Division have recommended 23 that this application be granted. 24 COMMISSIONER FEDORKO: Motion to grant 25 renewal of key license for qualification. 12 ITEM NO. 13 1 COMMISSIONERS EPPS: Second. 2 CHAIR KASSEKERT: Motion is made and 3 seconded. This is a roll call vote. 4 MR. NANCE: Commissioner Fedorko? 5 COMMISSIONER FEDORKO: Yes. 6 MR. NANCE: Commissioner Epps? 7 COMMISSIONER EPPS: Yes. 8 MR. NANCE: Vice Chair Sommeling? 9 VICE CHAIR SOMMELING: Yes. 10 MR. NANCE: Chair Kassekert? 11 CHAIR KASSEKERT: Yes. 12 MR. NANCE: The record will reflect that 13 the motion is unanimous. 14 For your consideration, Item No. 13, 15 proposed temporary adoption of amendments to 16 NJAC 19:45-1.1, 1.11, 1.33, 1.43, 1.46, 1.46B, 17 1.54, and 1.55. 18 Mr. Briliant? 19 MR. BRILIANT: Good morning, Madame 20 Chairs and Commissioners. 21 CHAIR KASSEKERT: Good morning. 22 MR. BRILIANT: For your consideration 23 this morning is a temporary adoption of a 24 proposal which would permit coupons to be 25 validated through an approved gaming voucher 13 ITEM NO. 19 1 system as opposed to the present procedure 2 which allows the coupons to be validated by a 3 system that's connected to the bill changer of 4 the slot machine. 5 CHAIR KASSEKERT: Any questions for Mr. 6 Briliant? 7 VICE CHAIR SOMMELING: Move to approve 8 for temporary adoption. 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. BRILIANT: Thank you. 17 MR. NANCE: For your consideration Item 18 No. 19, proposed publication of temporary 19 adoption of amendments to NJAC 19:45-1.12. 20 MR. MONCRIEF: Madame Chair, members of 21 the Commission, for your consideration this 22 morning is the proposed publication and 23 temporary adoption of amendments to NJAC 24 19:45-1.12, which would add or provide added 25 flexibility to the staffing simulcast counter 14 ITEM NO. 3 1 for casino licensees. 2 CHAIR KASSEKERT: Thank you. 3 Any questions for Mr. Moncrief? 4 VICE CHAIR SOMMELING: No questions, 5 Madame Chair. 6 COMMISSIONER FEDORKO: Motion to approve 7 for publication and temporary adoption. 8 COMMISSIONER EPPS: Second. 9 VICE CHAIR SOMMELING: 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 Thank you. 17 MR. NANCE: Okay. 18 MR. MONCRIEF: That's it? 19 MR. NANCE: Item No. 3, stipulation of 20 settlement and consent agreements. 21 When I call your name, please come 22 forward, standing behind this middle table, 23 spreading across the room so that you may be 24 seen: Darryl Johnson, Robert Williams, Jr., 25 Thomas McNeill, Maritza Ortiz, Christine 15 ITEM NO. 3 1 Williams, William Fresh, Philip D'Agostino, 2 Donna Katzen, Ashley Scalia, Norma Worthy, Joan 3 St. Claire, Barbara Staropoli, Robert -- I 4 mean -- yes. Robert -- excuse me. Shirley 5 White, Robert Yetter, Jessica Acosta, Joseph 6 Piedilato, Joseph Thiel, Jerry Walker, Jr., 7 Stacey Watt, Charles Carter, and Althea Brown. 8 CHAIR KASSEKERT: Has everyone whose 9 name been called come forward at this point? 10 I'm going ask that you each state your 11 name for the record, starting with you, ma'am. 12 MS. ST. CLAIRE: Joan St. Claire. 13 MS. ORTIZ: Maritza Ortiz. 14 CHAIR KASSEKERT: Okay. In a moment we 15 are going to vote on the stimulations which 16 you've agreed to witness Division of Gaming 17 Enforcement. I'm going ask at this point if 18 any of you wish to be heard on your matter. 19 You don't have to say anything if you don't 20 want to. 21 Does anyone wish to be heard? 22 MS. ST. CLAIRE: No. 23 CHAIR KASSEKERT: Okay. Thank you. 24 Mr. Biscieglia? 25 MR. BISCIEGLIA: Thank you. Good 16 ITEM NO. 4 1 morning, Chair and Commissioners. 2 The Division has nothing further and ask 3 that the stipulations be approved as submitted. 4 Thank you. 5 CHAIR KASSEKERT: Thank you. 6 Any questions? 7 VICE CHAIR SOMMELING: Move to approve 8 the stipulations. 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 Thank you for coming. Good luck. 17 MS. ST. CLAIRE: Thank you. 18 MS. ORTIZ: Thank you. 19 MR. NANCE: Item No. 4, stipulation of 20 settlement in State versus Trump Taj Mahal 21 Associates and Richard Rosen. 22 Mr. Corbett? 23 MR. CORBETT: Good morning, Chair, 24 Commissioners. 25 The stipulation of settlement in this 17 ITEM NO. 4 1 case calls for the casino licensee to pay a 2 penalty of $20,000, and with respect to the 3 individual respondent, his registration will be 4 suspended for three days but given credit for 5 three days' suspension imposed by the casino 6 licensee, and he'll be issued a letter of 7 reprimand. 8 Miss Pickus is here for the casino 9 licensee and Mr. Ficchi for the Division. 10 CHAIR KASSEKERT: Thank you. 11 Miss Pickus? 12 MS. PICKUS: Good morning, 13 Commissioners. 14 I would just ask that you accept and 15 approve the approved stipulation. 16 Thank you for the consideration. 17 CHAIR KASSEKERT: Thank you. 18 Mr. Ficchi? 19 MR. FICCHI: Yes. Good morning, Chair, 20 Commissioners. 21 The Division also requests that you 22 accept the stipulations, both as to the casino 23 licensee, Taj Mahal, and also to the individual 24 Richard Rosen. I've been in contact with Mr. 25 Rosen's attorney, which I heard from Cleary & 18 ITEM NO. 4 1 Josem, a Philadelphia law firm, and she 2 appreciates the -- she would ask that the 3 Commission also to accept the stipulation on 4 behalf of her client. 5 Thank you. 6 CHAIR KASSEKERT: Thank you. 7 Let me ask if there are any questions. 8 VICE CHAIR SOMMELING: No questions, 9 Madame Chair. 10 COMMISSIONER FEDORKO: Motion to approve 11 the stipulation of settlement and assess the 12 following penalties for violation of Commission 13 regulations regarding serving alcoholic 14 beverages to underaged persons: A, impose a 15 civil penalty of $20,000 against Trump Taj 16 Mahal Associates; 17 And, B, suspend Richard Rosen's casino 18 service employee license for three working 19 days, with time served, and issue a letter of 20 reprimand to be made a permanent part of his 21 employee file. 22 VICE CHAIR SOMMELING: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. All in favor? 25 (Ayes.) 19 ITEM NO. 5 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: Motion carries. 4 Thank you. 5 MR. FICCHI: Thank you. 6 MR. NANCE: Item No. 5, petitions for 7 early reapplication for: Joseph Petrone, 8 Giovanni Rivera, Daniel Smith, Michelle Tyler, 9 Enrique Vargas. 10 Ms. Frigen? 11 MS. FRIGEN: Good morning, Madame Chair, 12 Commissioners. 13 CHAIR KASSEKERT: Good morning. 14 MS. FRIGEN: The first case, Mr. 15 Petrone, he's having a seat at the table. 16 For your consideration is his petition 17 seeking permission to reapply early for a 18 license, registration, and/or a noncredential 19 hotel employment. 20 The Division has interposed no objection 21 to this petition. 22 CHAIR KASSEKERT: Thank you. 23 Mr. Petrone, is there anything you'd 24 like to say today? 25 MR. PETRONE: No. 20 ITEM NO. 5 1 CHAIR KASSEKERT: No. Okay. 2 Mr. Biscieglia? 3 MR. BISCIEGLIA: As Miss Frigen stated, 4 the Division has no objection to the petition. 5 Thank you. 6 CHAIR KASSEKERT: Thank you. 7 Any questions? 8 VICE CHAIR SOMMELING: No questions, 9 Madame Chair. 10 COMMISSIONER FEDORKO: Motion to grant 11 Mr. Petrone permission to reapply early for a 12 casino employee license, a casino service 13 employee service registration, and to work as a 14 noncredential hotel employee. 15 VICE CHAIR SOMMELING: Second. 16 CHAIR KASSEKERT: The motion has been 17 made and seconded. All in favor? 18 (Ayes.) 19 CHAIR KASSEKERT: Opposed? 20 (No response.) 21 CHAIR KASSEKERT: Motion carries. 22 Thank you for coming. Good luck. 23 MR. PETRONE: Thank you. 24 MS. FRIGEN: The next case we have is 25 Giovanni Rivera. Mr. Rivera is here as well. 21 ITEM NO. 5 1 I'd ask him to come forward and have a seat at 2 the table. 3 In this case, Mr. Rivera is petitioning 4 for a noncredential hotel employment early. 5 And, once again, the Division has 6 interposed no objection to this. 7 CHAIR KASSEKERT: Thank you. 8 Mr. Rivera, is there anything you'd like 9 to say today? 10 MR. RIVERA: No. 11 CHAIR KASSEKERT: Okay. 12 Mr. Biscieglia? 13 MR. BISCIEGLIA: Thank you. 14 Once again, the Division has interposed 15 no objection and has nothing further. 16 Thank you. 17 CHAIR KASSEKERT: Thank you. 18 Any questions? 19 VICE CHAIR SOMMELING: No question Madam 20 Chair. 21 Move to grant Mr. Rivera permission to 22 obtain employment early as a noncredential 23 hotel employee. 24 COMMISSIONER FEDORKO: Second. 25 CHAIR KASSEKERT: The motion has been 22 ITEM NO. 5 1 made and seconded. All in favor? 2 (Ayes.) 3 CHAIR KASSEKERT: Opposed? 4 (No response.) 5 CHAIR KASSEKERT: Motion carries. 6 Thank you for coming. Good luck. 7 MR. RIVERA: Okay. Thank you. 8 MS. FRIGEN: Okay. The next case is 9 Daniel Smith. Let me ask for the record 10 whether Mr. Smith is present or represented 11 here today? 12 (No response.) 13 MS. FRIGEN: Okay. He apparently is not 14 present. 15 In this case he's seeking permission to 16 obtain noncredential hotel employment early; 17 however, the Division did interpose an 18 objection to this petition. 19 CHAIR KASSEKERT: Thank you. 20 Mr. Biscieglia? 21 MR. BISCIEGLIA: Thank you. 22 By order dated September 28th of 2006, 23 the Commission revoked the Respondent's casino 24 service employee registration and found him 25 disqualified after he failed to request a 23 ITEM NO. 5 1 hearing following the filing of the Division's 2 complaint. The complaint was based on the 3 Respondent's March 24th, 2000, conviction for 4 three counts of robbery in the first degree. 5 The Respondent was paroled on February 6 22nd, 2005. He remains on parole at this time. 7 Following his parole, on December 5th of 2006, 8 he was charged with operating a motor vehicle 9 without consent, creating a risk of injury. 10 While this charge was dismissed on February 11 20th of 2007, the Petitioner did not disclose 12 this arrest to the instant petition, and, in 13 fact, he answered no to the question on the 14 petition asking if there's been any further 15 arrest. 16 Based upon this fact and, most 17 importantly, the fact that the Petitioner 18 remains on parole at this time, the Division 19 must ask that this petition be denied. 20 Thank you. 21 CHAIR KASSEKERT: Thank you. 22 Any questions for Mr. Biscieglia? 23 VICE CHAIR SOMMELING: No questions, 24 Madame Chair. 25 COMMISSIONER EPPS: Motion to deny Mr. 24 ITEM NO. 5 1 Smith's petition to obtain employment early as 2 noncredential hotel employee. 3 COMMISSIONER FEDORKO: Second. 4 CHAIR KASSEKERT: The motion has been 5 made and seconded. All in favor? 6 (Ayes.) 7 CHAIR KASSEKERT: Opposed? 8 (No response.) 9 CHAIR KASSEKERT: The motion carries. 10 MS. FRIGEN: Madame Chair, 11 Commissioners, with respect to Miss Tyler, she 12 called me this morning indicating that she had 13 a doctor's appointment she had to attend. But 14 given the Division's nonobjection to her 15 petition, I said with the Commission's 16 permission, we would leave her matter on. 17 For your consideration is her petition 18 seeking permission to reapply early for a 19 license, registration, and/or a noncredential 20 hotel employment. 21 CHAIR KASSEKERT: Thank you. 22 Mr. Biscieglia? 23 MR. BISCIEGLIA: The Division has no 24 objection. 25 CHAIR KASSEKERT: Thank you. 25 ITEM NO. 5 1 Any questions? 2 VICE CHAIR SOMMELING: No questions, 3 Madame Chair. 4 COMMISSIONER FEDORKO: Motion to grant 5 Miss Tyler permission to reapply early for a 6 casino employee license, a casino service 7 employee registration, and/or to work as a 8 noncredential hotel employee. 9 COMMISSIONER EPPS: 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 MS. FRIGEN: And, finally, we have 17 Enrique Vargas. Is Mr. Vargas present today? 18 I did not speak with him earlier. 19 (No response.) 20 MS. FRIGEN: He is not here. He is 21 seeking permission to reapply early for a 22 registration and/or noncredential hotel 23 employment. By letter dated November 17th, the 24 Division has interposed no objection to his 25 petition. 26 ITEM NO. 6 1 CHAIR KASSEKERT: Mr. Biscieglia? 2 MR. BISCIEGLIA: The Division has no 3 objection. 4 CHAIR KASSEKERT: Thank you. 5 Any questions? 6 VICE CHAIR SOMMELING: No questions, 7 Madame Chair. 8 COMMISSIONER FEDORKO: Motion to grant 9 Mr. Vargas permission to reapply early for a 10 casino service employee registration and/or to 11 obtain employment early as a noncredential 12 hotel employee. 13 COMMISSIONER EPPS: Second. 14 CHAIR KASSEKERT: The motion has been 15 made and seconded. All in favor? 16 (Ayes.) 17 CHAIR KASSEKERT: Opposed? 18 (No response.) 19 CHAIR KASSEKERT: Motion carries. 20 Thank you. 21 MR. NANCE: Item No. 6, reconsideration 22 of Commission final orders due to noncompliance 23 of conditions therein for: Barry Hamlett, 24 Patricia Juarez, Carlton Torian, Christopher 25 Wells, and Steven Wood. 27 ITEM NO. 6 1 Miss Frigen? 2 MS. FRIGEN: Let me ask for the record 3 whether any of these individuals who were just 4 called are present or represented? 5 (No response.) 6 MS. FRIGEN: Okay. Apparently not. 7 As indicated, these individuals were 8 granted licensure subject to certain reporting 9 conditions and stipulations of settlement that 10 they have reached with the Division. They 11 failed to comply with those conditions. They 12 also failed to attend a conference to address 13 the noncompliance situation. 14 The only other thing the staff would 15 note is that with respect to Barry Hamlett 16 pursuant to Section 106(c) if his license 17 application is denied, that would also result 18 in the revocation of his registration. 19 CHAIR KASSEKERT: Okay. Thank you. 20 Mr. Biscieglia? 21 MR. BISCIEGLIA: Thank you. 22 All of the listed individuals have been 23 given numerous chances to comply with the 24 conditions of their stipulations of settlement, 25 and they have chosen to not comply and to 28 ITEM NO. 6 1 disregard the attempts to get them into 2 compliance. And this ultimately today was the 3 last chance for them to appear and to come into 4 compliance, and they have chosen not to do 5 that. 6 So based upon that, the Division must 7 respectfully ask that the respective orders 8 granting licensure be vacated. 9 CHAIR KASSEKERT: Thank you. 10 Any questions for Mr. Biscieglia? 11 VICE CHAIR SOMMELING: No questions, 12 Madame Chair. 13 COMMISSIONER EPPS: Madame Chair, based 14 upon their noncompliance with conditions set 15 forth in the existing Commission orders and 16 subsequent failure to address their 17 noncompliance issue after having been afforded 18 the opportunity to do so, I move that we vacate 19 the existing orders granting the license 20 applications of the referenced individuals and 21 deny their respective license applications;. 22 Further, pursuant to Section 106(c) of 23 the Act, revoke the casino service employee 24 registration held by Barry Hamlet. 25 VICE CHAIR SOMMELING: Second. 29 ITEM NO. 7 1 CHAIR KASSEKERT: The motion has been 2 made and seconded. All in favor? 3 (Ayes.) 4 CHAIR KASSEKERT: Opposed? 5 (No response.) 6 CHAIR KASSEKERT: Motion carries. 7 Thank you. 8 MS. FRIGEN: Thank you. 9 MR. NANCE: Item No. 7, consideration of 10 forfeiture order in State versus Marina 11 District Development Company, LLC, et al.; 12 Trump Taj Mahal Associates, et al.; Trump Taj 13 Mahal Associates, et al.; Adamar of New Jersey, 14 Inc., et al.; Trump Plaza Associates, et al.; 15 Bally's Park Place, et al.; and Marina District 16 Development Company, LLC, et al. 17 Miss Frigen? 18 MS. FRIGEN: Madame Chair, we have 19 received letters from respective casino 20 cancelling each of these cases and opposing no 21 objection to the forfeiture action. 22 For the record, let me just inquire 23 whether any of the patrons involved are 24 present? I believe not. 25 (No response.) 30 ITEM NO. 7 1 MS. FRIGEN: And the other thing I would 2 mention that with respect to 7g, the staff is 3 requesting the Commission at this time only 4 take action on Count II. But in each of these 5 cases, otherwise, the matters concern money 6 that is presently being held by the casinos due 7 to the patron being either underage or on the 8 self-exclusion list at the time of their gaming 9 activity. The money is, therefore, subject to 10 forfeiture. 11 Thank you. 12 Mr. Kimmel? 13 MR. KIMMEL: Good morning, Madame Chair, 14 members of the Commission. 15 I would just ask that the appropriate 16 forfeiture orders be entered. 17 Thank you. 18 CHAIR KASSEKERT: Thank you. 19 Any questions? 20 VICE CHAIR SOMMELING: No questions, 21 Madame Chair. 22 COMMISSIONER EPPS: Madame Chair, I move 23 that with respect to Items 7a through f, due to 24 their being underaged on the date of their 25 winnings or on the self-exclusion list, the 31 ITEM NO. 7 1 money theoretically won in the individuals 2 cited in the six complaints is forfeited, and 3 the respective casinos are required to remit 4 the forfeited money to the Commission in 5 accordance with NJSA 5:12-71.3(c). 6 VICE CHAIR SOMMELING: Second. 7 CHAIR KASSEKERT: The motion has been 8 made and seconded. All in favor? 9 (Ayes.) 10 CHAIR KASSEKERT: Opposed? 11 (No response.) 12 CHAIR KASSEKERT: Motion carries. 13 COMMISSIONER EPPS: I also move that 14 with respect to Item 7g, Marina District 15 Development Company, LLC's, complaint, the 16 final action should be considered only as to 17 Count II. Count I should remain pending for 18 further proceedings. 19 Accordingly, due to AS being a 20 self-excluded person on the date of gambling 21 activity, the money theoretically won by AS is 22 forfeited. 23 VICE CHAIR SOMMELING: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 32 ITEM NO. 8 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: Motion carries. 5 Thank you. 6 MR. KIMMEL: Thank you. 7 MS. FRIGEN: Thank you. 8 MR. NANCE: Item No. 8, petition of 9 PAR-4, Inc., for waiver of qualification. 10 Miss Nagengast? 11 MS. NAGENGAST: Good morning, Chair and 12 Commissioners. 13 CHAIR KASSEKERT: Good morning. 14 MS. NAGENGAST: For your consideration 15 is a petition seeking a waiver of qualification 16 for a natural person qualifier. 17 Lynne Kaufman is here on behalf of the 18 Petitioner and Lou Rogacki on behalf of the 19 Division. 20 CHAIR KASSEKERT: Thank you. 21 Good morning, Miss Kaufman. 22 MS. KAUFMAN: Good morning, Chair, 23 Commissioners. 24 PAR-4 has filed a petition for waiver of 25 qualification of Bruce McKee under Section 33 ITEM NO. 8 1 1.14(b) of the regulations based on lack of 2 control. Although Mr. McKee owns 10 percent of 3 the stock of PAR-4, 90 percent of the stock of 4 PAR-4 is owned by Tony Tomasello who is also 5 the sole officer and director of PAR-4. He's 6 been that since 1991. Mr. Tomasello's last 7 contact with Mr. McKee has been in 1995. In 8 PAR-4's 2003 license renewal, they requested 9 and received a waiver of qualification from Mr. 10 McKee. Circumstances have not changed. In the 11 past 17 years, Mr. McKee has not tried to 12 exercise any control over PAR-4 and, more 13 importantly, even if he did try, he would not 14 be able to do so based on Mr. Tomasello's 90 15 percent ownership, and the fact he's a sole 16 director and sole officer. 17 Therefore, we request a waiver of 18 qualification. 19 Thank you. 20 CHAIR KASSEKERT: Let me just ask for 21 clarification on the record. You refer to him 22 as "Bruce" McKee but his -- 23 MS. KAUFMAN: Robert McKee is his legal 24 name. 25 CHAIR KASSEKERT: Very good. Thank you. 34 ITEM NO. 8 1 MS. KAUFMAN: Thank you. 2 CHAIR KASSEKERT: Mr. Rogacki? 3 MR. ROGACKI: Good morning, Madame 4 Chair, Commissioners. 5 The Division filed a letter on November 6 28th recommending that the petition for waiver 7 be granted as it was previously. 8 I'll be happy to answer any questions. 9 CHAIR KASSEKERT: Thank you. 10 Any questions for the parties? 11 VICE CHAIR SOMMELING: No questions, 12 Madame Chair. 13 COMMISSIONER FEDORKO: Motion -- 14 COMMISSIONER EPPS: Chair, I move that 15 we grant the petition of PAR-4, Inc., and waive 16 the qualification of Robert B. McKee, as 17 permitted by NJAC 19:51-1.14(b)(4) in 18 connection with PAR-4, Inc.'s 2008 through 2013 19 license cycle and subject to the conditions in 20 the order. 21 VICE CHAIR SOMMELING: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 35 ITEM NO. 9 1 (No response.) 2 CHAIR KASSEKERT: Motion carries. 3 Thank you. 4 MS. KAUFMAN: Thank you. 5 MR. ROGACKI: Thank you. 6 MR. NANCE: Item No. 9, petition of 7 Harrah's Entertainment, Inc., and Harrah's 8 Operating Company, Inc., for approval of the 9 exchange offer and other relief. 10 Ms. Wozniak? 11 MS. WOZNIAK: Chair, Commissioners, good 12 morning. 13 I have distributed a revised draft 14 resolution, most recently dated yesterday, 15 December 9th. 16 And Mr. O'Gara is here for the 17 Petitioners, and Miss Turi for the Division. 18 CHAIR KASSEKERT: Thank you. 19 Good morning, Mr. O'Gara. 20 MR. O'GARA: Good morning, Chair, 21 members of the Commission. 22 This petition seeks the required 23 approval for the issuance of securities that 24 will be issued by Harrah's Operating Company. 25 The securities are debt securities which will 36 ITEM NO. 9 1 utilize an exchange offer that will make 2 changes to the capital stack of HOC. In 3 essence, what's being exchanged are a series of 4 securities that are outstanding and are 5 unsecured that have maturities that are nearer 6 to where we are now for securities which will 7 mature further out, 2015, 2016. There will be 8 a reduction in the overall aggregate amount of 9 approximately a billion dollars, and there 10 would be a cash interest saving over the terms 11 of the securities, depending on the exact 12 numbers the exchange, in the neighborhood of -- 13 in excess of $60 million. 14 One element of the original exchange 15 offer which has changed is there was going to 16 be a Dutch auction. That Dutch auction has 17 been eliminated, meaning that we don't have to 18 try to understand what a Dutch auction is 19 and -- 20 (Laughter.) 21 MR. O'GARA: Instead, it's a fixed amount. 22 Although the Dutch auction thing would have 23 been fun to talk about. 24 Thank you. 25 CHAIR KASSEKERT: Any questions for Mr. 37 ITEM NO. 9 1 O'Gara before we hear from Miss Turi? 2 VICE CHAIR SOMMELING: No questions, 3 Madame Chair. 4 CHAIR KASSEKERT: Miss Turi? 5 MS. TURI: Good morning, Madame Chair, 6 Commissioners. 7 The Division has reviewed all of the 8 information that has been presented by Mr. 9 O'Gara and by Harrah's Operating Company and 10 Harrah's Entertainment, Inc., including the 11 modified Dutch auction when it was going to be 12 on the table, as well as the information that 13 has been provided recently. 14 We note that the exchange offer is still 15 open, and as a result, we've requested as one 16 of the conditions which is in the resolution 17 that we do get a final accounting, and we be 18 kept up to date with any changes that may occur 19 prior to the closing of the exchange offer. 20 And with the conditions that are 21 presented in the draft resolution, the Division 22 has no objection to the approval of the 23 exchange offer. 24 CHAIR KASSEKERT: Thank you. 25 Any questions for Miss Turi? 38 ITEM NO. 10 1 VICE CHAIR SOMMELING: No questions, 2 Madame Chair. 3 COMMISSIONER FEDORKO: Motion to adopt 4 the draft resolution and approve the issuance 5 of new notes and the exchange offer pursuant to 6 NJAC 19:43-4 subject to the rulings, findings, 7 and conditions set forth therein. 8 VICE CHAIR SOMMELING: 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 Thank you. 16 MS. TURI: Thank you. 17 MR. O'GARA: Thank you. 18 MR. NANCE: Item No. 10, joint petition 19 of Marina District Development Company, LLC, 20 and March District Finance Company, Inc., for 21 declaratory ruling with respect to 22 qualification issues and certain other issues 23 related to certain debt transaction. 24 MS. RICHARDSON: Good morning, Chair and 25 Commissioners. 39 ITEM NO. 10 1 A draft resolution was circulated in 2 this matter. And appearing for the Petitioners 3 is Lynne Kaufman, and for the Division is DAG 4 Jim Fogarty. 5 CHAIR KASSEKERT: Thank you. 6 Good morning again, Miss Kaufman. 7 MS. KAUFMAN: Good morning, again. 8 We're here today requesting approval to 9 enter into an amendment to Borgata's existing 10 credit facility. 11 I just want to note that this amendment 12 does not provide for any increased borrowings. 13 In fact, it's reducing the amount of 14 outstanding borrowings. Additionally, it's 15 providing flexibility for borrowing because the 16 financial covenants under the amendment will be 17 less restrictive. 18 I've reviewed the draft resolution, have 19 no objections, and also would like to thank the 20 staff and the Division for their cooperation. 21 Thank you. 22 CHAIR KASSEKERT: Thank you. 23 Any questions for Miss Kaufman? 24 VICE CHAIR SOMMELING: No questions, 25 Madame Chair. 40 ITEM NO. 10 1 CHAIR KASSEKERT: Mr. Fogarty? 2 MR. FOGARTY: Yes. Good morning. 3 CHAIR KASSEKERT: Good morning. 4 MR. FOGARTY: As Miss Kaufman indicated, 5 this is a second amendment to a first amended 6 restated credit agreement regarding Borgata and 7 its lending facility. It makes three changes. 8 Or it wants to make three changes, one of which 9 is to change the covenants to the financial 10 covenants. One, the leverage ratio, the other 11 one replace ratio -- or a different ratio with 12 a fixed coverage ratio. 13 In addition, it makes a -- it actually 14 decreases the amount of allowable borrowing 15 that's available under this credit facility. 16 And also changes the interest rates. Up. Not 17 significantly, but up. And its that -- it's 18 that -- that change that really implicates your 19 review making this a significant change such 20 that another financial stability material debt 21 transaction, and hence the financial stability 22 review, needs to be performed, which we 23 attempted to do in our filing with you in our 24 letter dated November 26, 2008. 25 We have no objection to your approval of 41 ITEM NO. 10 1 this matter. And we have reviewed the draft 2 resolution prepared by Ms. Richardson, and we 3 have no objection to its entry. 4 CHAIR KASSEKERT: Thank you. 5 Any questions for Mr. Fogarty? 6 VICE CHAIR SOMMELING: No questions, 7 Madame Chair. 8 Madame Chair, I move to adopt the draft 9 resolution and grant the relief requested in 10 the petition in each case to the extent set 11 forth in the findings and rulings and subject 12 to the conditions in the resolution. 13 MR. NANCE: Commissioner Sommeling? 14 CHAIR KASSEKERT: I'm sorry. 15 MR. DiGIACOMO: Excuse me, Madame Chair, 16 I believe Miss Kaufman has a request of 17 sealing. 18 MS. KAUFMAN: Sealing. 19 CHAIR KASSEKERT: Oh, okay. 20 MS. KAUFMAN: We have a sealing request 21 which I submitted to the Commission and ask for 22 your consideration of that request. 23 CHAIR KASSEKERT: Okay. Mr. Fogarty? 24 Do you have -- 25 MR. FOGARTY: Yes. Usually, as you well 42 ITEM NO. 10 1 know, we leave this matter to the Commission's 2 good discretion. Just for clarity purposes, 3 I'm in receipt of an amended sealing request 4 bearing the date of yesterday, December 9, 5 2008, and I assume that's the sealing request 6 that you will consider, and we leave to your 7 good discretion that matter. 8 CHAIR KASSEKERT: Thank you. 9 Do I need to do a motion with respect to 10 the sealing? Or I can just approve as part -- 11 MR. DiGIACOMO: I believe, Chair, it's 12 incorporated in the draft resolution. 13 CHAIR KASSEKERT: Incorporated. Okay. 14 I'm sorry. 15 Commissioner Sommeling, you may 16 continue. 17 VICE CHAIR SOMMELING: Madame Chair, 18 move to adopt the draft resolution and grant 19 the relief requested in the petition in each 20 case to the extent set forth in the findings 21 and ruling and subject to the conditions in the 22 resolution and the sealing request by the 23 Applicant. 24 CHAIR KASSEKERT: Thank you. 25 Is there a second? 43 ITEM NO. 11 1 COMMISSIONER FEDORKO: 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 MS. KAUFMAN: Thank you. 9 MR. FOGARTY: Thank you. 10 MR. NANCE: Item No. 11, proposed 11 readoption of NJAC 19:50. 12 Miss Frank? 13 MS. FRANK: Good morning, Chair and 14 Commissioners. 15 Chapter 50, Casino Hotel Alcoholic 16 Beverage Control, is scheduled to expire on 17 January 22nd of 2009. Upon filing the Notice 18 of Proposed Readoption with the Office of 19 Administrative Law, that expiration date will 20 be extended six months until July of next year. 21 The rules on casino hotel alcoholic 22 beverage control are before you today for 23 approval of the Notice For Initial Publication 24 in the New Jersey Register. 25 CHAIR KASSEKERT: Thank you. 44 ITEM NO. 12 1 Any questions for Miss Frank? 2 VICE CHAIR SOMMELING: No questions, 3 Madame Chair. 4 COMMISSIONER FEDORKO: Approve for 5 publication the proposed readoption without 6 changes. 7 COMMISSIONER EPPS: Second. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. All in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: Motion carries. 14 MS. FRANK: Thank you. 15 CHAIR KASSEKERT: Thank you. 16 MR. NANCE: Item 12, proposed adoption 17 of amendment to NJAC 19:54-1.2 and 1.16 and New 18 Rule 19:54-1.11. 19 Mr. Kell? 20 MR. KELL: Good morning, Madame Chair, 21 Commissioners. 22 Before you for final adoption are 23 amendments and the new rule that authorize 24 casino licensees subject to certain limitations 25 to take a deduction from gross revenue for the 45 ITEM NO. 14 1 value of promotional gaming credits wagered by 2 patrons at slot machines in their casinos. 3 The Commission voted to publish and 4 temporarily adopt the proposal on August 21st, 5 2008. When the public comment period expired 6 on Friday, December 5th, no comments had been 7 received. And the staff recommends that you 8 adopt the amendments and new rules as 9 published. 10 CHAIR KASSEKERT: Thank you. 11 Any questions for Mr. Kell? 12 VICE CHAIR SOMMELING: No questions, 13 Madame Chair. 14 COMMISSIONER EPPS: I move that we adopt 15 as published. 16 COMMISSIONER FEDORKO: 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. KELL: Thank you. 24 MR. NANCE: Item No. 14, proposed 25 adoption of amendment to NJAC 19:47-14.6. 46 ITEM NO. 14 1 Mr. Mamolen? 2 MR. MAMOLEN: Yes. That would be me. 3 This matter is before you for final 4 adoption. This would allow the counting of all 5 poker cards by automated shuffling device which 6 is currently the practice. Bigger part of this 7 amendment, it would essentially conform the 8 regulations to the current practice. 9 We did receive two comments from two 10 casino licensees, Borgata and Taj Mahal, with 11 respect to the requirement that every poker 12 card be counted once every 15 minutes. As the 13 two decks that are alternating in and out of 14 play. The effect that those -- that that 15 requirement would be a little bit too onerous. 16 You have staff's position with respect 17 to the variations of hold 'em and Omaha poker. 18 Again, it's before you for final 19 adoption. 20 CHAIR KASSEKERT: Thank you. 21 Any questions for Mr. Mamolen? 22 VICE CHAIR SOMMELING: No questions, 23 Madame Chair. 24 COMMISSIONER FEDORKO: Adopt as 25 published with minor substantive changes. 47 ITEM NO. 15 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: Item No. 15, proposed 9 adoption of amendment to NJAC 19:46-1.18. 10 Mr. Mamolen? 11 MR. MAMOLEN: This is another matter for 12 final adoption, and the amendment would permit 13 a casino licensee that opts for single-use 14 cards in baccarat and a version of mini 15 baccarat where the dealing procedures allow 16 players to touch the cards to inspect as an 17 alternative a sample of decks selected at 18 random or in accordance with an approved 19 stratification plan, provided procedures for 20 selecting the sample size and for assuring a 21 proper selection of the sample size are 22 submitted to and approved by the Commission. 23 And that approval would be done by way of 24 delegated authority. 25 There were no comments received during 48 ITEM NO. 16 1 the public comment period. Again, it's before 2 you for final adoption. 3 CHAIR KASSEKERT: Thank you. 4 VICE CHAIR SOMMELING: Move to adopt as 5 published. 6 CHAIR KASSEKERT: Is there a second? 7 COMMISSIONER FEDORKO: Second. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. All in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: Motion carries. 14 MR. NANCE: Item No. 16, petition of 15 Bally's Park Place, Inc., for amendment its 16 certificate and CHAB license to reconfigure the 17 gaming floor. 18 Mr. Moncrief? 19 MS. MONCRIEF: Madame Chair, members of 20 the Commission. 21 Before you is a petition of Bally's Park 22 Place to amend its operations certificate and 23 casino alcoholic beverage license. 24 Here for the Petitioner is Tim Lowry, 25 and for the Division is Tim Ficchi. 49 ITEM NO. 16 1 A draft resolution has been circulated, 2 and I believe there are no objections to the 3 substance of the draft resolution. 4 CHAIR KASSEKERT: Thank you. 5 Good morning, Mr. Lowry. 6 MR. LOWRY: Good morning, Madame Chair 7 and Commissioners. Thank you, Mr. Moncrief. 8 Yes. We just -- we are -- by this 9 petition we are seeking Commission approval to 10 decrease our gaming floor, and we believe that 11 by doing this we maximize the use value of our 12 most important asset, while it provides the 13 customer service that our customers deserve. 14 We received the draft resolution, I have 15 no objections. 16 Thank you. 17 CHAIR KASSEKERT: Thank you. 18 Any questions for Mr. Lowry? 19 VICE CHAIR SOMMELING: No questions, 20 Madame Chair. 21 CHAIR KASSEKERT: Mr. Ficchi? 22 MR. FICCHI: Yes. Good morning, again, 23 Madame Chair, Commissioners. 24 Yes. The Division has reviewed this 25 matter, and also the draft resolution as 50 ITEM NO. 16 1 submitted by Mr. Moncrief, and the Division has 2 no objection to the adoption of that 3 resolution. 4 Thank you. 5 CHAIR KASSEKERT: Thank you. 6 Any questions for Mr. Ficchi? 7 VICE CHAIR SOMMELING: No questions, 8 Madame Chair. 9 Move to adopt the draft resolution and 10 approve the petition of Bally's Park Place, 11 Incorporated, for an amendment to its 12 certificate of operation, casino hotel 13 alcoholic beverage license, permit the 14 reconfiguration of its gaming floor subject to 15 the conditions in the resolution. 16 COMMISSIONER EPPS: 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. LOWRY: Thank you. 24 CHAIR KASSEKERT: Thank you. 25 MR. FICCHI: Thank you. 51 ITEM NO. 17 1 MR. NANCE: Item No. 17, proposed 2 publication of amendments to NJAC 19:45-1.54. 3 Mr. Moncrief? 4 MR. MONCRIEF: Madame Chair, members of 5 the Commission, before you is the proposed 6 publication of amendments to NJAC 19:45-1.54. 7 The proposed amendments will change how 8 gaming vouchers are handled by slot machines 9 with respect to the residual credits contained 10 on the gaming couch voucher when they are not 11 compatible with the slot man, hoping to avoid 12 any potential confusion to casino patrons. 13 CHAIR KASSEKERT: Thank you. 14 Any questions? 15 VICE CHAIR SOMMELING: No questions, 16 Madame Chair. 17 COMMISSIONER FEDORKO: Motion to approve 18 for publication. 19 COMMISSIONER EPPS: 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. 52 ITEM NO. 18 1 MR. NANCE: Item No. 18, petition under 2 rulemaking Petition No. 3010801, the petition 3 of Division of Gaming Enforcement to amend NJAC 4 19:45-1.11 to expand the authority of casino 5 licensee security departments to include the 6 detention of suspected underaged gamblers and 7 drinkers. 8 Mr. Moncrief? 9 MR. MONCRIEF: Madame Chair, members of 10 the Commissioners, before you is a petition of 11 the Division of Gaming Enforcement to expand 12 the authority of the casino security 13 departments to address the problem of underaged 14 drinking and underaged gambling at the 15 facilities of the casino licensees. 16 Several meetings occurred between the 17 staff and the Division to try to come to a 18 resolution for this petition. As you are 19 aware, the 60-day time period for the 20 rulemaking petition will lapse after this 21 meeting, before the next public meeting is 22 held; therefore, it has to be addressed in some 23 manner. 24 Staff recommends that we refer this 25 matter for further deliberations so that we can 53 ITEM NO. 18 1 work with the Division to come to a resolution 2 to the issue they've brought to our attention. 3 CHAIR KASSEKERT: Thank you. 4 Mr. Kimmel? 5 MR. KIMMEL: Thank you. 6 We understand that the staff has 7 requested an additional 90 days to further 8 consider this matter, and we have no objection 9 to that. 10 CHAIR KASSEKERT: Thank you. 11 Any questions? 12 COMMISSIONER EPPS: Madame Chair, I move 13 that we table this matter for up to 90 days. 14 COMMISSIONER FEDORKO: Second. 15 VICE CHAIR SOMMELING: Second. 16 CHAIR KASSEKERT: The motion has been 17 made and seconded. All in favor? 18 (Ayes.) 19 CHAIR KASSEKERT: Opposed? 20 (No response.) 21 CHAIR KASSEKERT: Motion carries. Thank 22 you. 23 MR. MONCRIEF: Thank you. 24 MR. NANCE: For your consideration Item 25 No. 20, 23, and 24. Petition of Trustee and 54 ITEM NO. 20, 23 1 Conservator of Adamar of New Jersey, Inc., to 2 retain financial restructuring advisors; 3 petition of Trustee and Conservator of Adamar 4 of New Jersey, Inc., to extend transact -- 5 excuse me. Petition of Trustee and Conservator 6 of Adamar of New Jersey, Inc., to retain a 7 claims and noticing agent; and consideration 8 the application of the Trustee and Conservator 9 for the former casinos licensee, Adamar of New 10 Jersey, Inc., for approval of fees for the 11 Conservator Trustee and his personal counsel, 12 legal, and other consultants. 13 Mr. DiGiacomo? 14 MR. DiGIACOMO: Chair, Commissioner. 15 Good morning. 16 Mr. Sean Mack is here for the 17 Petitioner. Miss Mary Jo Flaherty for the 18 Division of Gaming Enforcement. 19 On Items 20 and 23, there's a combined 20 draft order. I've shared that with counsel for 21 the parties. I believe that they're prepared 22 to consent to its form and entry. On 20 and 23 23-- Items 20 and 23, there are, I believe, no 24 sealing requests. 25 CHAIR KASSEKERT: Thank you. Let's take 55 ITEM NO. 20, 23 1 20 and 23 then first. 2 Mr. Mack? 3 MR. MACK: Good morning, Chair, 4 Commissioners. 5 As Mr. DiGiacomo said, I reviewed the 6 proposed order, and I have no objection to it. 7 Before I sit down, I would like to 8 supplement the filings we've made. We have 9 distributed the last of the petitions we're 10 making to you to hire professionals in 11 connection with the 363 sale, and I'd like to 12 submit and mark as P-1 being the formal 13 engagement letter with JH Cohn which has been 14 previously shared with staff and the Division 15 and the Commission. 16 CHAIR KASSEKERT: Thank you. 17 MR. MACK: Staff note -- raised a 18 question with the other day I would like to 19 address it for you. There is a slight 20 difference between the hourly rate set forth in 21 the presentation that JH Cohn provided to 22 Justice Stein and the hourly rate set forth in 23 the engagement letter. 24 It's been explained to me that the 25 hourly rates in the presentation reflected the 56 ITEM NO. 20, 23 1 rate structure for the entire JH Cohn 2 enterprise and the rates set forth in the 3 engagement letter set forth only the hourly 4 rate of the members of JH Cohn to practice in 5 this restructuring group within the enterprise. 6 So it's a smaller -- smaller group of 7 individuals who are in this group. 8 And as the Commission has seen from the 9 billings which have been submitted over the 10 last couple of weeks -- last two weeks, the 11 hourly rates for the individuals who are 12 actually at the property working and who we 13 expect to be continue being the majority of the 14 time limits matter fall at the lower end of 15 most of those ranges, and they would be people 16 we would expect to continue working on this 17 matter for us. 18 If there are any questions about these 19 services or the diligence work that Justice 20 Stein did before recommending the retention of 21 JH Cohn or the Kurtzman Carson group as claims 22 agent, I'll be happy to address those questions 23 or anything else. 24 CHAIR KASSEKERT: Thank you. 25 Let me -- before you ask any questions, 57 ITEM NO. 20, 23 1 let me ask if the Division has any objection to 2 the entry of P-1 into evidence? 3 MS. FLAHERTY: No objection, Madame 4 Chair. Thank you. 5 CHAIR KASSEKERT: Thank you. 6 Commissioner Epps -- therefore, I will 7 move it into evidence. 8 Commissioner Epps, question? 9 COMMISSIONER EPPS: I have a question 10 first with respect to the claims agent company. 11 Help me with the name. 12 MR. MACK: Kurtzman Carson. 13 COMMISSIONER EPPS: Those people. 14 MR. MACK: KCC. 15 COMMISSIONER EPPS: That's even better. 16 Just for the record, I've had the benefit of 17 the staff -- but just for the record, I think 18 it's important that we clear up, what is a 19 claims agent, and what are they going to do, 20 and what is unique about them that some firm or 21 Cole Schotz or somebody else couldn't have done 22 this process? Why do we need them? Because it 23 seems that we're going to need a plumber next 24 and so -- 25 (Laughter.) 58 ITEM NO. 20, 23 1 MR. MACK: That's why I mentioned at the 2 beginning of this, this is my expectation that 3 at the end of the professionals, we're asking 4 ask for in this process. 5 COMMISSIONER EPPS: I understand. 6 MR. MACK: You're right. Ten years ago 7 law firms like Cole Schotz or Debevoise or 8 Lakeman did this work in-house, did have 9 paralegals do the work? And the work is -- a 10 large part of the work is providing notice. In 11 a 363 sale process, one of the hallmarks is 12 that everybody in the world, just about, gets 13 notice of everything that happens. In our case 14 we expect it's probably going to be five to 15 6,000 people who will receive notice. So even 16 when this process begins, first meeting of 17 creditors goes out. It has to go out to 6,000 18 people. Paralegal -- law firms used to do it 19 in-house, charge -- have their paralegals 20 charge the paralegal rates to do this work. 21 And, frankly, it's lot cheaper to hire somebody 22 like KCC who does this. And the reason they 23 make the -- their business survives is because 24 they are more cheaper and more efficient than 25 having the law firms doing it in-house. 59 ITEM NO. 20, 23 1 So, yes, on the noticing side, law firms 2 used to and maybe could still do it. My firm 3 couldn't do it. I don't know even know if I 4 have that many envelopes just to handle the 5 mailings in this case. And we're just not set 6 up to do it. KCC, this is all they do. And so 7 they can do it a lot more efficiency and cost 8 savings to the company. 9 The other -- the notices is one of the 10 big things that we'll be doing. The other big 11 thing, the big project they will be working on 12 is getting out proofs of claim. Any creditor 13 who has, you know, a claim from anywhere from, 14 you know, a dollar to a million dollars, 15 whatever it is, will file a proof of claim 16 saying I'm owed money by this company. They 17 send out these mailings. They collect them. 18 They tabulate them. Again, a law firm -- many 19 law firms used to do that work. But, again, 20 it's much more cheaper and more efficient to 21 hire somebody like KCC who, this is all they 22 do, and so they provide better rates to provide 23 those services. 24 COMMISSIONER EPPS: Okay. I mean, the 25 other question I have is with respect to Cohn. 60 ITEM NO. 20, 23 1 I understand that there's the whole retainer 2 issue that has to exist and the billings that 3 are -- that have taken place. And later, I 4 guess, they'll be able to be approved. But how 5 do we maintain their retainer issue and 6 bankruptcy -- I guess what I'm saying is, we 7 get into a secureness situation where you're 8 trying to clean up so that you can go in, but 9 the process of cleaning up incurs a fee that 10 you have to pay before you go in. If you 11 follow. The cycle -- 12 MR. MACK: Yes. 13 COMMISSIONER EPPS: How do we clean up 14 that cycle so that -- and Cohn seems to be 15 another party that gets into the cycle so that 16 we were trying to -- 17 MR. MACK: Yeah. Everybody -- Cohn's 18 falls into the same -- same cycle that all of 19 the other professionals are and will be in. 20 Outside of the casino world, outside of the 21 regulated world, what typically would happen 22 is, if the day before a filing, a check would 23 be wired in from the company to all the 24 professionals -- 25 COMMISSIONER EPPS: Wipe it out. 61 ITEM NO. 20, 23 1 MR. MACK: And wipe it out. What we've 2 been trying to do is, as with KCC at this 3 public hearing, bring them up as close as 4 possible. There is going to be a stub period 5 at some point, most likely. And I think what 6 we may ask is if there's delegated authority or 7 some way to clean -- use the retainers that 8 will be in place to clean up that stub period. 9 For that -- whatever isn't having previously 10 been approved at a prior hearing. And then, 11 you know, afterwards, maybe have a -- we can 12 discuss this further -- have a review. And to 13 the extent anything was deemed to be excessive, 14 have it repaid to the retainer or pulled back 15 out. 16 But I think there's going to have to be 17 some sort of mechanism like that to deal with 18 the stub period, which is the cycle you're 19 talking about. 20 COMMISSIONER EPPS: All right. Okay. 21 Just one second. 22 Len, with respect to the additional item 23 in the resolution that's going to be delegated 24 to the Chair, is that -- 25 MR. DiGIACOMO: I can share the latest 62 ITEM NO. 20, 23 1 version. You have a prior version probably, 2 Commission Epps. I can share with the entire 3 Commission the current version of the 4 resolution, and it is dealt with -- or order, 5 rather. And it is dealt with in that version 6 of the order. 7 COMMISSIONER EPPS: And we can speak to 8 that? 9 MR. DiGIACOMO: Yes. 10 COMMISSIONER EPPS: Well, that issue is, 11 if I understand correctly, Cohn in '09 may 12 change their rates. And, apparently, it was in 13 the retention agreement that gives them the 14 right to do that. I guess the order, as 15 proposed, is going to leave to the Chair 16 authority to review that and have -- weigh it 17 in in some regard as to whether or not it seems 18 appropriate. I mean, I guess my concern on 19 originally hearing that is, if I got in under 20 the wire, you know -- what are we at, December 21 10th? I got in 30 days before the new year. I 22 should get the '08 rates. 23 MR. MACK: Rates. 24 COMMISSIONER EPPS: As opposed -- that's 25 why I bought the '08 instead of the '09, 63 ITEM NO. 20, 23 1 because the '09 cost more money. 2 MR. MACK: Right. 3 COMMISSIONER EPPS: So, hopefully, we 4 can continue to engage in that dialog and maybe 5 some relief can be granted down the line if and 6 when that issue comes up. But we've, I think, 7 provided in the order at least the Chair's 8 ability to confront the issue when it comes up. 9 MR. MACK: And I appreciate that. I've 10 already begun having that discussion with the 11 managing partner at JH Cohn about that. And 12 given the example, my firm's engagement letter 13 had the same provision in it, and we did the 14 same thing. You got the '07 model, and we 15 stuck with that. 16 COMMISSIONER EPPS: Okay. 17 MR. MACK: So we'll work to keep that 18 where it is. 19 COMMISSIONER EPPS: Okay. 20 CHAIR KASSEKERT: Any other questions 21 before we hear from Miss Flaherty? 22 VICE CHAIR SOMMELING: I have no other 23 questions, Madame Chair. 24 CHAIR KASSEKERT: No? 25 Miss Flaherty. 64 ITEM NO. 20, 23 1 MS. FLAHERTY: Chair, Commissioners. 2 I'd like to introduce my two letter reports 3 dated December the 3rd and the 5th. I've given 4 copies to Mr. Nance previously. And I think 5 you've already seen them as our reports. 6 With regard to JH Cohn, we have no 7 disagreement with the selection of that firm or 8 their retainer amount as well as the payment of 9 the interim fees, which we will address in the 10 next item. 11 We leave the approval of the financial 12 restructuring adviser to the Commission and its 13 sound discretion, as well as that retainment 14 matter. But that is subject to the conditions 15 related to the $19 million rolling cash balance 16 and its procedure and compliance with that 17 requirement and the procedure. 18 And we note that JH Cohn has filed for 19 casino service industry licensure and has 20 entered a retainer agreement with satisfactory 21 terms, which met two of our other conditions in 22 our letter report. 23 With regard to KCC, we've also noted an 24 agreement with the selection of that firm or 25 with its retainer arrangement. We leave the 65 ITEM NO. 20, 23 1 approval of the claims and noticing agent to 2 the Commission and the sound discretion, as 3 well as the retainer arrangement. Again, our 4 position is subject to the conditions relating 5 to the $19 million rolling cash balance and its 6 procedure and compliance with those 7 requirements and the procedure. 8 And we would also condition our position 9 upon the filing of a casino service industry 10 licensure application at the appropriate time, 11 which would probably be within 60 days. And 12 that is addressed in the draft resolution, as 13 well as the submission of an agreement between 14 the Trustee/Conservator on behalf of Adamar and 15 KCC for the Chair's approval as to its specific 16 terms. 17 Thank you very much. 18 CHAIR KASSEKERT: Thank you. 19 Before I ask if there are any questions, 20 let me ask, Mr. Mack, do you have any objection 21 to the entry of D-1 and D-2 as exhibits? 22 MR. MACK: No. 23 CHAIR KASSEKERT: Okay. They are so 24 entered. 25 Any questions for Miss Flaherty? 66 ITEM NO. 20, 23 1 VICE CHAIR SOMMELING: I don't have any 2 questions, Madame Chair. 3 CHAIR KASSEKERT: Commissioner Epps? 4 Okay. Why don't we deal with Item No. 5 20 first. 6 MR. DiGIACOMO: The -- 7 CHAIR KASSEKERT: You want to just -- 8 MR. DiGIACOMO: Yeah. The draft order 9 addresses both Items 20 and 23. 10 CHAIR KASSEKERT: Both items. So we 11 just need the one resolution. 12 MR. DiGIACOMO: One resolution. 13 CHAIR KASSEKERT: Okay. Is there a 14 motion? 15 COMMISSIONER EPPS: Madame Chair, I move 16 to adopt the draft order and grant the relief 17 requested in the petition to the extent set 18 forth in the findings and rulings subject to 19 the conditions in the order as to retention of 20 financial restructuring advisors and retention 21 of claims and noticing agent. 22 VICE CHAIR SOMMELING: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. All in favor? 25 (Ayes.) 67 ITEM NO. 24 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: Motion carries. 4 MR. DiGIACOMO: Thank you, 5 Commissioners. 6 CHAIR KASSEKERT: Thank you. 7 MR. NANCE: Item No. 24. Miss 8 Fauntleroy? 9 MS. FAUNTLEROY: Yes. The last item 10 with respect to Adamar is the approval of the 11 outstanding invoices, which include a number 12 that there were incurred between November 25, 13 2008, and December 2, 2008, being the latest 14 date. They include the invoices presented by 15 JH Cohn, Cole Schotz, Pashman Stein, the 16 Conservator/Trustee Stein and Debevoise & 17 Plimpton. 18 You've been provided with the invoices 19 in detail. There, I believe, is one redaction 20 with respect to the Cole Schotz invoice. All 21 other invoices are presented as submitted. 22 We have Sean Mack here for the Trustee, 23 the Conservator and Mary Jo Flaherty for the 24 Division. 25 CHAIR KASSEKERT: Thank you. 68 ITEM NO. 24 1 Mr. Mack? 2 MR. MACK: Chair, Commissioners, I'm 3 happy to answer any questions you have about 4 the invoices. I would just like to say with 5 respect to JH Cohn, I appreciate the Commission 6 and staff's help over the last couple weeks. 7 I've been almost living at the property, 8 helping get the financial documents prepared, 9 and they really have been invaluable to us. 10 CHAIR KASSEKERT: Thank you. 11 Any questions for Mr. Mack? 12 VICE CHAIR SOMMELING: I have no 13 questions, Madame Chair. 14 CHAIR KASSEKERT: Commissioners Epps? 15 COMMISSIONER EPPS: I just have one 16 question. 17 While I appreciate the amount of work, 18 and while we're at a ramp-up point while we're 19 on approach and, if you will, and I appreciate 20 the amount of work that Cohn had to do just 21 getting into the matter. My question in this 22 regard -- again getting back to the stub is 23 with respect to Debevoise. Are they at a point 24 where they might be able to scale back until 25 you get beyond that stub where the amount that 69 ITEM NO. 24 1 you're trying to cover wouldn't be so 2 extensive? Do you follow me? 3 MR. MACK: I know what you're saying. 4 COMMISSIONER EPPS: Is it at all 5 possible? I mean, I understand -- 6 MR. MACK: Yes. 7 COMMISSIONER EPPS: -- they're your 8 counsel, and you they need to do what it is 9 that they do, but -- 10 MR. MACK: Where we are right now in the 11 process in terms of the negotiations, in the 12 next couple of weeks -- 13 COMMISSIONER EPPS: Okay. 14 MR. MACK: -- Debevoise is going to be 15 highly involved after that. 16 COMMISSIONER EPPS: But that stub is 17 going to be a major obstacle, then, in the next 18 cycle? 19 MR. MACK: It all depends on the timing 20 of things. I mean, there's a couple of -- or 21 two hearings scheduled in January. But ideally 22 we would schedule things in connection with the 23 hearings. And my expectation is there will 24 come a point we'll provide to the Commission 25 the form of the proposed purchase agreement, 70 ITEM NO. 24 1 and it would be sort of at that point where 2 Debevoise would, again, be not doing a whole 3 heck of a lot. 4 COMMISSIONER EPPS: I mean, I guess the 5 point I'm making is, in view of the $19 million 6 rolling cash balance requirement -- 7 MR. MACK: Uh-hum. 8 COMMISSIONER EPPS: And if, as you say, 9 they're going to be significantly involved in 10 that, that means that number is going to be 11 significantly high, and you're going to have to 12 have that room in order to clear all that up. 13 Do you need to -- we asked at the last meeting. 14 You're going to need to clear all that up 15 before you go in. 16 MR. MACK: Yes. 17 COMMISSIONER EPPS: It seems that -- 18 that seems to be a problem. 19 MR. MACK: It -- I mean, with the 20 retainer Debevoise has, there's a couple ways 21 to do this. They could -- 22 COMMISSIONER EPPS: Okay. Just be 23 mindful of that. That's a concern. Hopefully 24 we can -- 25 MR. MACK: Yeah. I know. The idea is 71 ITEM NO. 24 1 that the retainer amount would provide coverage 2 if the decision is made the way to do it is at 3 that last minute to just draw down that 4 retainer and then replenish it later 5 afterwards. The hope is that that estimated, 6 what the retainer amount is, properly so that 7 it's covered, and that stub period gets taken 8 care of. 9 COMMISSIONER EPPS: Okay. 10 CHAIR KASSEKERT: Any other questions? 11 Miss Flaherty? 12 MS. FLAHERTY: Yes, Chair. 13 The Division has had the opportunity to 14 review the billings submitted by the 15 Conservator, Pashman Stein, Debevoise Plimpton, 16 and Cole Schotz and JH Cohn. And based on our 17 review, in looking at the hours billed as well 18 as the rates billed, they appear to be accurate 19 in that regard. 20 With regard to Debevoise, I would just 21 note that there appear to be various bankruptcy 22 matters that they were involved in, and I 23 assume now that Cole Schotz is involved. 24 They'd be taking over more of those areas. And 25 although they will be working on the asset 72 ITEM NO. 24 1 purchase agreement within the next month or so, 2 after that point in time, as it has been noted 3 on the record, it would appear their 4 involvement should be less. 5 Based on our reviewing review and 6 conditioned upon the $19 million rolling cash 7 balance and the other requirements relating to 8 that as well as the procedure which, in our 9 view, would need to be met with respect to 10 those billings for fees and expenses, we leave 11 to the Commission's discretion with its 12 authority under the Casino Control Act to 13 approve these invoices. 14 Thank you. 15 CHAIR KASSEKERT: Thank you. 16 Mr. Mack, can you reconcile that with 17 respect to what the Division said with respect 18 to Debevoise and bankruptcy matters and now 19 Cole Schotz? 20 MR. MACK: Yes. We have -- as Mary Jo 21 noted, we have -- Debevoise had been providing 22 us the assistance before we have Cole Schotz in 23 various matters. They have now stopped. I've 24 said my last goodbyes to Richard Hahn and 25 Jasmine Powers, so you won't see their names on 73 ITEM NO. 24 1 the invoices anymore. Now Cole Schotz has 2 completely stepped into that role. 3 CHAIR KASSEKERT: Okay. Thank you. 4 Before -- I have a motion I need to 5 make, but let me ask if there are any questions 6 for Miss Flaherty at this point. 7 VICE CHAIR SOMMELING: No questions, 8 Madame Chair. 9 CHAIR KASSEKERT: No? Okay. 10 Just as a way of a clean up, the invoice 11 submitted for JH Cohn is for the period for 12 November 25th through December 5th, and 13 pursuant to certain authority delegated to me 14 under Order No. 07-12-19, I advised Justice 15 Stein that JH Cohn could be permitted to begin 16 working with him and the bankruptcy counsel 17 prior to the Commission's consideration of his 18 request to retain JH Cohn to provide financial 19 restructuring advice. 20 Justice Stein was advised that such 21 permission was subject to the full Commission's 22 ratification and without liability on the part 23 of the former licensee should you not approve 24 them. 25 In light of the decision to approve the 74 ITEM NO. 24 1 retention of JH Cohn, I would ask that you 2 ratify my prior decision and approve their 3 invoice for the period of November 25th through 4 December 5th. 5 Is there a motion? 6 VICE CHAIR SOMMELING: Motion. 7 COMMISSIONER EPPS: Question on the 8 motion. 9 CHAIR KASSEKERT: Question? Sure. 10 COMMISSIONER EPPS: Is it -- would it be 11 proper to just include JH Cohn in the general 12 motion, and we're approving all the bills at 13 one time? Or do we have to do a separate 14 motion for the Cohn as recommended by the 15 Chair? 16 MS. FAUNTLEROY: The separate motion for 17 Cohn as represented by the Chair. And then you 18 can take B through E as a separate motion. 19 CHAIR KASSEKERT: Okay. 20 COMMISSIONER EPPS: Very well. 21 MS. FAUNTLEROY: And you could still, 22 however, indicate that with respect to A it's 23 subject to the conditions imposed by Commission 24 Resolution No. 08-06-04-15. 25 COMMISSIONER EPPS: Okay. Well, then, I 75 ITEM NO. 24 1 second the Chair's motion. 2 CHAIR KASSEKERT: Okay. The motion has 3 been made and seconded. All in favor? 4 (Ayes.) 5 CHAIR KASSEKERT: Opposed? 6 (No response.) 7 CHAIR KASSEKERT: Motion carries. 8 Now, with respect to the other invoices? 9 Commission Epps, do you want to -- 10 COMMISSIONER EPPS: Oh, okay. With 11 respect to invoices indicated in letters B 12 through E, I would move approval of those 13 invoices all subject to the conditions imposed 14 in Commission Resolution No. 08-06-04-15 and 15 08-06-18-21, including the provisions of daily 16 cash schedules and updated forecasts. 17 VICE CHAIR SOMMELING: Second. 18 CHAIR KASSEKERT: General Counsel, 19 should we set all those out in terms of each of 20 those items are? 21 MS. FAUNTLEROY: You should. 22 CHAIR KASSEKERT: We should. Yes. 23 COMMISSIONER EPPS: A is Cole Schotz for 24 the period November 1 through November 30, 25 2008 -- I'm sorry, B is. C is Pashman Stein 76 ITEM NO. 21 1 for the period November 1 through November 30, 2 2008. D is Conservator/Trustee Stein for the 3 period November 1 through November 30, 2008. 4 And E is Debevoise & Plimpton for the period 5 October 30 through November 30, 2008. 6 CHAIR KASSEKERT: Thank you, 7 Commissioner, Epps. 8 Is there a second? 9 COMMISSIONER FEDORKO: Second. 10 VICE CHAIR SOMMELING: 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: The motion carries. 17 Thank you. 18 MR. NANCE: For your consideration Item 19 No. 21, petition of Trustee and Conservator of 20 Adamar of New Jersey to extend transactional 21 waivers for consultants. 22 Mr. DiGiacomo? 23 MR. DiGIACOMO: Chair, Commissioners, 24 Mr. Sean Mack again for the Petitioner in this 25 matter. And, again, Miss Mary Jo Flaherty for 77 ITEM NO. 21 1 the Division. 2 I've shared the draft resolution -- or 3 the draft order, rather, with counsel, and I 4 believe that they are prepared to consent to 5 its form and entry. 6 CHAIR KASSEKERT: Thank you. 7 Mr. Mack? 8 MR. MACK: Chair, Commissioners. Yes. 9 We have no objection to the form of the 10 proposed order, and we just ask that the 11 extensions be granted to the extent that we 12 need to continue using consultants going 13 forward. 14 CHAIR KASSEKERT: Thank you. 15 Any questions for Mr. Mack? 16 Miss Flaherty? 17 VICE CHAIR SOMMELING: No questions, 18 Madame Chair. 19 MS. FLAHERTY: Yes, Madame Chair, and 20 Commissioners. 21 We believe good cause has been set 22 forth, and we have no objection to the 23 additional extension of time. The draft 24 resolution contains the date of January 21st, 25 2009, which is perfectly acceptable. And we 78 ITEM NO. 22 1 have no issues with the provisions of the draft 2 resolution. 3 Thank you. 4 CHAIR KASSEKERT: Thank you. 5 Any questions for Miss Flaherty? 6 VICE CHAIR SOMMELING: I have no 7 questions, Madame Chair. 8 COMMISSIONER EPPS: I move that we grant 9 the petition extending transactional waivers 10 until January 21, 2009. 11 COMMISSIONER FEDORKO: Second. 12 VICE CHAIR SOMMELING: 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 Thank you. 20 MR. DiGIACOMO: Thank you. 21 MR. MACK: Thank you. 22 MR. NANCE: For your consideration Item 23 No. 22, proposed adoption of resolution 24 concerning closed sessions for public meeting 25 schedule for the year 2009. 79 ITEM NO. 22 1 Presented for adoption is the proposed 2 resolution schedule to permit the Commission to 3 hold a closed session prior to the commencement 4 of each scheduled 2009 public meeting. 5 CHAIR KASSEKERT: Thank you. 6 Any questions? 7 VICE CHAIR SOMMELING: No questions, 8 Madame Chair. 9 Move to approve. 10 COMMISSIONER 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: The in accordance with 18 Resolution No. 08-12-10-22, the next closed 19 session of the Commission shall be held on 20 Wednesday, January 7, 2009, at 9:15 in the 21 Commission offices. 22 It is now time for the public 23 participation portion of the meeting. 24 CHAIR KASSEKERT: Is there anyone from 25 the public who wishes to be heard? 80 1 (No response.) 2 CHAIR KASSEKERT: Seeing no one, I'll 3 declare this portion of the meeting closed and 4 entertain a motion to adjourn. 5 VICE CHAIR SOMMELING: Motion to 6 adjourn. 7 COMMISSIONER FEDORKO: Second. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. All in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: Motion carries. 14 Thank you. 15 (Public Meeting 08-12-10 was adjourned 16 at 11:30 a.m.) 17 18 19 20 21 22 23 24 25 81 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: December 14, 2008 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25