1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 09-06-03 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, June 3, 2009 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 10:38 a.m. to 11:14 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 MICHAEL C. EPPS, VICE CHAIR MICHAEL A. FEDORKO, COMMISSIONER 4 WILLIAM T. SOMMELING, 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 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL TERESA M. NAGENGAST, SENIOR COUNSEL 10 E. DENNIS KELL, ASSISTANT GENERAL COUNSEL BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 11 DIVISION OF GAMING ENFORCEMENT: 12 DEPUTY ATTORNEYS GENERAL BRIAN C. BISCIEGLIA, DEPUTY ATTORNEY GENERAL 13 DOROTHY TURI, DEPUTY ATTORNEY GENERAL R. LANE STEBBINS, DEPUTY ATTORNEY GENERAL 14 15 16 17 18 19 20 21 22 23 24 25 3 1 A P P E A R A N C E S : 2 ITEM NO. 8 DOROTHY TURI, DEPUTY ATTORNEY GENERAL MARY M. WOZNIAK, ASSISTANT GENERAL COUNSEL 3 STERNS & WEINROTH PAUL M. O'GARA, ESQ. 4 FOR: HARRAH'S ATLANTIC CITY 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 09-06-03 2 JUNE 3, 2009, 10:38 a.m. ITEM PAGE VOTE 3 Moment of silence in memory of Ray Kot 8 1 Ratification of the minutes of the 8 8 4 May 20, 2009, public meeting 2 Applications for employee and casino 5 service industry licenses 18 initial and/or renewal of casino key 9 9 6 and casino employee licenses 3 initial and/or renewal of casino key 9 10 7 and casino employee licenses Consideration of applications for renewal 8 of casino key employee licenses and for qualification: 9 Carolyn Chun, Vice President of Customer 10 11 Development/Slots for Adamar of New Jersey, Inc. 10 Paula Mauk, Vice President of Relationship x Marketing for Trump Taj Mahal Associates, LLC 11 3 Stipulations of settlement and consent agreements: 12 a) Lydon A. Hughes (08-0197-EA) 11 13 b) Michael F. Mason (08-0912-EA) 11 13 13 c) Gregory Lomonaco (08-0912-EA) 11 13 d) Christopher B. Molla (09-0202-EA) 11 13 14 e) Anthony Reo (08-0759-EA) 11 13 f) Jontay Watson (a/k/a Jontay Purdie) 11 13 15 (08-0691-EA) g) Eugenia S. McKoy (09-0110-ER) 11 13 16 h) David M. Olive (09-0020-ER) 11 13 i) Alodia Baez (08-0630-RC) 11 13 17 j) German M. Chacon-Fernandez (08-0631-RC) 11 13 k) Ernest C. Corner, Jr. (08-0835-RC) 11 13 18 l) Carlyle Walters (08-0739-RC) 13 15 4 Reconsideration of Commission final orders 19 due to noncompliance of conditions therein: a) Michael Brown (08-0961-NC) 16 22 20 Sworn 17 b) Sheryll Y. Jackson (08-0644-NC) 22 30 21 Sworn 23 c) Elizabeth D. Kane (08-0963-NC) 32 33 22 d) Garry A. Szydlowski (08-0966-NC) 32 33 5 Petition of Tommy Rodriguez for early 32 33 23 reapplication (09-0225-RA) 6 Application for suspension in State v. 35 38 24 Kathleen M. Mason 25 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 09-06-03 2 JUNE 3, 2009, 10:38 a.m. ITEM PAGE VOTE 3 7 Consideration of forfeiture orders in State v.: a) Trump Plaza Associates, et al. 38 42 4 (08-0315-VC) b) Marina District Development Company, 38 42 5 LLC, et al. (08-0316-VC) 8 Petition of Harrah's Operating Company, 43 53 6 Inc., Showboat Atlantic City Operating Company, LLC, Boardwalk Regency Corp. and 7 Bally's Park Place, Inc., for approval of the issuance of new senior secured notes 8 and other relief (PRN 1380901) 9 Proposed adoption of amendments to NJAC 42 44 9 19:45-1.42 and 19:46-1.26B (slot machine Bill changers with alterable storage media) 10 10 Reconstitution of the Casino Control 53 55 Commission Audit Committee 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 4 P-1 Remand for hearings 18 license X 5 P-2 Grant 3 licenses X 6 7 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 09-06-03 was commenced 2 at 10:30 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 October 7, 2008, filed with the 10 Secretary of State at the State House in 11 Trenton, New Jersey, a notice of this hearing. 12 On October 7, 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 cell phones in the public 19 meeting room while the Commission is in session 20 is prohibited. 21 Any member of the public who wish to 22 address the Commission will be given the 23 opportunity to do so before the Commission 24 adjourns for the day. 25 Would everyone please stand for the 8 ITEM NO. 1 1 Pledge of Allegiance. 2 (The flag salute was recited.) 3 CHAIR KASSEKERT: May I ask if everyone 4 would remain standing for a moment of silence 5 in memory of Ray Kot, who lost his life at the 6 Taj Mahal, the shift manager there. 7 (A moment of silence was observed.) 8 CHAIR KASSEKERT: Thank you. 9 Good morning. 10 MR. NANCE: Good morning. 11 The matters discussed in closed session 12 were: Employee and enterprise license matters. 13 The Commission approved the May 20th, 14 2009, closed session minutes. 15 Litigation update regarding: Edwards 16 versus Adamar of New Jersey, Inc., et al. 17 Item No. 1, ratification of the minutes 18 of May 20th, 2009, public meeting. 19 COMMISSIONER SOMMELING: Move to 20 approve. 21 COMMISSIONER FEDORKO: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 9 ITEM NO. 2 1 (No response.) 2 CHAIR KASSEKERT: Motion carries. 3 MR. NANCE: Item No. 2, application for 4 employee and casino service industry licenses. 5 This agenda item will be entered as Exhibit 6 List 1 and 2. 7 Exhibit List 1 consists of 18 8 applications for initial and/or renewal of 9 casino key and casino employee licenses. 10 The Division has objected to licensure. 11 VICE CHAIR EPPS: I move that we remand 12 these for hearing. 13 COMMISSIONER SOMMELING: 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 MR. NANCE: Exhibit List 2 consists of 21 three applications for initial and/or renewal 22 of casino key and casino key employee licenses. 23 Staff and the Division have recommended 24 that these licenses would be granted. 25 COMMISSIONER FEDORKO: Motion to grant 10 ITEM NO. 2 1 applications. 2 VICE CHAIR EPPS: Seconded. 3 CHAIR KASSEKERT: The motion has been 4 made and seconded. All in favor? 5 (Ayes.) 6 CHAIR KASSEKERT: Opposed? 7 (No response.) 8 CHAIR KASSEKERT: Motion carries. 9 MR. NANCE: For consideration are the 10 following applications for renewal of a casino 11 key employee licenses and for qualification of 12 Carolyn Chun, Vice President of Customer 13 Development/Slots for Adamar of New Jersey, 14 Inc., and Paula Mauk, Vice President of 15 Relationship Marketing for Trump Taj Mahal 16 Associates, LLC. 17 Staff and the Division have recommended 18 that these applications be granted. 19 VICE CHAIR EPPS: I move that we grant 20 initial and/or renewal of key license and for 21 qualification. 22 COMMISSIONER FEDORKO: Second. 23 CHAIR KASSEKERT: Motion has been made 24 and seconded. This a roll call vote. 25 MR. NANCE: Commissioner Fedorko? 11 ITEM NO. 3 1 COMMISSIONER FEDORKO: Yes. 2 MR. NANCE: Commissioner Sommeling? 3 COMMISSIONER SOMMELING: Yes. 4 MR. NANCE: Vice Chair Epps? 5 VICE CHAIR EPPS: Yes. 6 MR. NANCE: Chair Kassekert? 7 CHAIR KASSEKERT: Yes. 8 MR. NANCE: The record will reflect that 9 the record is unanimous. 10 Item No. 3, stipulation of settlement 11 and consent agreements. When I call your name, 12 please come forward, spreading across the room 13 so that you may be seen: Lydon Hughes, Michael 14 Mason, Gregory Lomonaco, Christopher Molla, 15 Anthony Reo, Jontay Watson, Eugenia McKoy, 16 David Olive, Alodia Baez, and German 17 Chacon-Fernandez, and Ernest Conner, Jr. 18 CHAIR KASSEKERT: Has everyone whose 19 name has been called come forward at this 20 point? 21 Okay. I'm going to ask that each of you 22 state your name for the record, starting with 23 you, sir. 24 MR. HUGHES: Lydon Hughes. 25 MR. LOMONACO: Gregory Lomonaco. 12 ITEM NO. 3 1 MR. MASON: Michael Mason. 2 MR. Conner: Ernest Conner. 3 MS. McKOY: Eugenia McKoy. 4 CHAIR KASSEKERT: Okay. In a moment we 5 are going to vote on the stipulations which 6 you've agreed to with the Division of Gaming 7 Enforcement. I'm going to ask at this point if 8 any of you wish to be heard on your matter. 9 You don't have to say anything if you don't 10 want to. 11 Does anyone wish to be heard? 12 (No response.) 13 CHAIR KASSEKERT: Okay. Mr. Biscieglia? 14 MR. BISCIEGLIA: Thank you. 15 The State has nothing further and ask 16 that the stipulations be accepted as submitted. 17 Thank you. 18 CHAIR KASSEKERT: Thank you. 19 Any questions? 20 COMMISSIONER SOMMELING: Madame Chair, I 21 move to approve the stipulations. 22 COMMISSIONER FEDORKO: Second. 23 VICE CHAIR EPPS: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 13 ITEM NO. 3 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: Motion carries. 5 Thank you for coming. Good luck. 6 FROM THE FLOOR: Thank you. 7 MR. NANCE: I'd like to call Carlyle 8 Walters? Carlyle Walters? 9 MS. NAGENGAST: Chair, Commissioners, I 10 don't see Mr. Walters here. 11 CHAIR KASSEKERT: Mr. Biscieglia? 12 MR. BISCIEGLIA: The Division also ask 13 that this stipulation be accepted as submitted. 14 We have nothing further. 15 CHAIR KASSEKERT: Thank you. 16 MR. BISCIEGLIA: Thank you. 17 CHAIR KASSEKERT: Any questions? 18 COMMISSIONER SOMMELING: No questions, 19 Madame Chair. 20 VICE CHAIR EPPS: Just because it was a 21 purpose of discussion -- 22 CHAIR KASSEKERT: Uh-hum. 23 VICE CHAIR EPPS: Mr. Biscieglia, I 24 understand that the stipulation is that the 25 Respondent be out for a year, and this is based 14 ITEM NO. 3 1 on the failure to disclose arrests? 2 MR. BISCIEGLIA: Yes. 3 VICE CHAIR EPPS: Is that what it is? 4 MR. BISCIEGLIA: Yes. 5 VICE CHAIR EPPS: And do we know how far 6 and what the nature of those arrests are? How 7 far back they go and what the nature was about? 8 MR. BISCIEGLIA: Yeah. I believe the 9 most recent arrest of Mr. Walters is a 2001 10 arrest. The rest was arrests that took place 11 during the '90s. When the complaint was filed 12 by the Division, determined that the criminal 13 background did not meet the requisite -- based 14 on -- met the requisite standards for allowing 15 the disqualification based on the time of the 16 offenses. 17 However, due to the fact that Mr. 18 Carlyle -- or Mr. Walters specifically answered 19 "no" on the application question when asked if 20 you've ever been arrested, and failed to 21 disclose, I believe either the entirety of his 22 criminal background or all of it except for one 23 arrest, the Division felt that a complaint 24 action based upon nondisclosure was appropriate 25 and that he enter into settlement agreement, 15 ITEM NO. 3 1 Mr. Walters was appropriate for that -- his 2 failure to disclose those arrests. 3 VICE CHAIR EPPS: Okay. And was 4 there any discussion with respect to 5 rehabilitation on that issue? Or is that -- 6 MR. BISCIEGLIA: No. There's no 7 rehabilitation provision for nondisclosure. 8 VICE CHAIR EPPS: Okay. All right. 9 CHAIR KASSEKERT: Okay? 10 Is there a motion? 11 (Conferring.) 12 COMMISSIONER FEDORKO: Motion to approve 13 stipulation and find disqualified and revoke 14 the casino employee license application, permit 15 Respondent to petition for noncredential 16 employee, reapply early for a registration, and 17 apply for a license in accordance with the 18 timelines set forth in the stipulations. 19 COMMISSIONER SOMMELING: 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. 16 ITEM NO. 4 1 MR. BISCIEGLIA: Thank you. 2 CHAIR KASSEKERT: Thank you. 3 MR. NANCE: Item No. 4, reconsideration 4 of Commission final orders due to noncompliance 5 of conditions therein for Michael Brown, 6 Sheryll Jackson, Elizabeth Kane, and Garry 7 Szydlowski. 8 Miss Frigen? 9 MS. FRIGEN: Good morning, Madame Chair, 10 Commissioners. 11 I'm aware that the first two individuals 12 are present. I would ask Mr. Brown to come 13 forward and have a seat at the table here. 14 Okay. This matter is brought before you 15 because Mr. Brown, as a condition of being 16 licensed, had agreed to report to the Division 17 regarding some tax matters. After he fell out 18 of compliance with that reporting condition, a 19 conference was scheduled for February 19th, 20 which he failed to attend. Accordingly, this 21 matter was scheduled for your reconsideration 22 today. 23 I understand Mr. Brown is here to 24 address you with respect to his noncompliance 25 issues, and then perhaps we could hear from the 17 ITEM NO. 4 1 Division with respect to their position. 2 CHAIR KASSEKERT: Thank you. 3 Mr. Brown, would you stand up and be 4 sworn, please. 5 6 MICHAEL BROWN was duly sworn to testify 7 in this matter. 8 9 MR. NANCE: Please state your name for 10 the record. 11 MR. BROWN: Michael Brown. 12 MR. NANCE: Thank you. 13 CHAIR KASSEKERT: Mr. Brown, what would 14 you like to tell us today? 15 MR. BROWN: I failed to make the 16 appearance on the 19th due to my error. By not 17 letting the Commission know I had a new 18 address, and I never received the notice for 19 the new hearing. And that was my error. 20 CHAIR KASSEKERT: Was the -- Bernadette, 21 was the notice returned? Did we get a return 22 on the -- 23 MS. FRIGEN: I don't have his file right 24 with me, but let me see. (Reviewing.) I don't 25 see that returned. 18 ITEM NO. 4 1 CHAIR KASSEKERT: Uh-hum. 2 MS. FRIGEN: But I can't say that there 3 wasn't -- 4 CHAIR KASSEKERT: Sometimes they -- 5 MS. FRIGEN: But I do have -- actually, 6 there is a memo to the file that I guess he 7 called after the fact saying that he had moved. 8 And then Kathy Durning had spoken with him and 9 suggested that he forward on to the Division 10 the tax information to get himself straight. I 11 don't think that occurred. 12 CHAIR KASSEKERT: Uh-hum. 13 MS. FRIGEN: And so we scheduled him 14 today. 15 CHAIR KASSEKERT: Okay. 16 MS. FRIGEN: So I think he also should 17 have to address -- 18 CHAIR KASSEKERT: Right. 19 MS. FRIGEN: -- the reason he fell out 20 of compliance with not reporting the taxes. 21 For your consideration. 22 CHAIR KASSEKERT: Would you address that 23 for us, please? 24 MR. BROWN: Yes. I had to have my taxes 25 amended. And the understanding I was under was 19 ITEM NO. 4 1 when I paid the amended, I assumed that it 2 covered everything, and it didn't cover the 3 State side of it. So I had the State amended, 4 and I was unable -- I didn't -- I felt maybe it 5 showed all, that everything was amended. I 6 didn't know it was separate. So I had to have 7 the State amended now. 8 CHAIR KASSEKERT: And has that all been 9 accomplished at this point? 10 MR. BROWN: Yes, ma'am. 11 CHAIR KASSEKERT: Okay. Let me ask if 12 any of the Commissioners have any other 13 questions before we hear from Mr. Biscieglia. 14 Commissioner Epps? 15 VICE CHAIR EPPS: I guess the question 16 is, have you paid the payments you need to do 17 make? 18 MR. BROWN: The way I understood, it 19 showed me paid in full for -- I went to the 20 State Department all this week, and they said 21 there was nothing owed left. But he did amend 22 it again for me. I told him I have to have 23 this done. They're saying it's not done, so I 24 have to have it done. But he said I have zero 25 balance and -- but he wouldn't print -- he 20 ITEM NO. 4 1 didn't print it out for me. So now I have -- 2 I'm in the process of having to re-amend it 3 again as well. And I have proof of the federal 4 being amended as well and paid in full. 5 VICE CHAIR EPPS: Have you provided 6 those documents to the Division of Gaming 7 Enforcement? 8 MR. BROWN: From my understanding, I 9 provided the federal being amended but not the 10 State. 11 VICE CHAIR EPPS: Okay. Mr. Biscieglia? 12 CHAIR KASSEKERT: Mr. Biscieglia? 13 MR. BISCIEGLIA: I believe that there is 14 just some confusion on Mr. Brown's part about 15 actually what was required of him. I tried to 16 explain to Mr. Brown before the meeting here 17 today. There really is no further need for 18 amending of any tax returns. The only issue 19 that is left is reporting on whether or not the 20 2004 and 2005 New Jersey State tax liability 21 has been satisfied. 22 CHAIR KASSEKERT: Uh-hum. 23 MR. BISCIEGLIA: Mr. Brown stated to me 24 before this meeting today that they have been 25 satisfied. He had previously supplied us with 21 ITEM NO. 4 1 evidence that his federal liabilities had been 2 satisfied. And I think there might have been 3 some confusion as to him thinking that he 4 had -- that that also covered the State, but, 5 of course, it did not. 6 If it would please the Commission, I 7 think the Division would be willing to -- I 8 think a good solution here might be to adjourn 9 this matter for two weeks. That gives Mr. 10 Brown a two-week time period to provide the 11 Division with evidence that he has indeed 12 satisfied his debt. If he does that 13 beforehand, the Commission can remove it from 14 the agenda. If not, then we'll be in the same 15 position we are in today. And, actually, the 16 Division might have to take a little harsher 17 stance on this. But at this time I'm willing 18 to give him the two weeks because he had 19 contacted me. He did appear today. And I 20 think, basically, this is more rooted in a 21 little bit of confusion about -- 22 CHAIR KASSEKERT: Okay. 23 MR. BISCIEGLIA: -- what was actually 24 provided. 25 CHAIR KASSEKERT: Thank you. 22 ITEM NO. 4 1 I'll -- could we have a motion? 2 VICE CHAIR EPPS: Madame Chair, I'll 3 move that we adjourn for two weeks. 4 CHAIR KASSEKERT: Is there a second? 5 COMMISSIONER FEDORKO: Second. 6 COMMISSIONER 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 So we're going to adjourn this for two 14 weeks, and you will need to provide the 15 Division with that information that Mr. 16 Biscieglia needs. 17 MR. BROWN: Yes, ma'am. 18 CHAIR KASSEKERT: Okay? 19 MR. BROWN: Okay. 20 CHAIR KASSEKERT: All right. Thank you. 21 MR. BROWN: Thank you. 22 MS. FRIGEN: Madame Chair, the next case 23 we have would be in respect to Miss Sheryll 24 Jackson. Miss Jackson is also here. I would 25 ask her to come forward. 23 ITEM NO. 4 1 CHAIR KASSEKERT: Okay. 2 MS. FRIGEN: And have a seat at the 3 table. 4 Similar to the last matter, Miss Jackson 5 was licensed conditioned upon paying two 6 obligations, traffic fines. Following her 7 failure to provide the Division with proof of 8 payment, her case was scheduled for a 9 conference. She attended one. She missed one. 10 She attended one, and then she missed the last 11 one, January 13th. 12 Accordingly, the case again was brought 13 to you today for review. 14 CHAIR KASSEKERT: Okay. Thank you. 15 Miss Jackson, is there something you'd 16 like to say today? If so, we'll swear you in. 17 MS. JACKSON: Yeah. 18 CHAIR KASSEKERT: Yes? Okay. 19 Mr. Nance? 20 21 SHERYLL JACKSON, was duly sworn to 22 testify in this matter. 23 24 MR. NANCE: Please state your name. 25 MS. JACKSON: Sheryll Jackson. 24 ITEM NO. 4 1 MR. NANCE: Thank you. 2 CHAIR KASSEKERT: Okay. Miss Jackson, 3 what would you like to tell us today? 4 MS. JACKSON: I missed my last hearing 5 was due to health problems. I have -- I've 6 been having recurring health problems for maybe 7 the last two years. I have a disorder, and 8 I've been working very sporadically. I've been 9 out on medical leave for three times within the 10 last year and a half. And that's the reason 11 why. I'm on heavy medication, so that's the 12 reason I missed my last hearing. 13 And I was staying at my sister's house 14 during that last period that I was sick, and I 15 didn't -- that's why I got the -- respond to 16 the last hearing letter so late. 17 But, you know, this matter, you know, 18 for the last hearing, I was just going to 19 suggest to them that there would be a wage 20 execution for these fines because that will be 21 the best way for me to pay them because being 22 that I've been working so sporadically and 23 always in catch-up. Always in catch-up. That 24 would be a better way for me to just get it out 25 of the way and get it over with. 25 ITEM NO. 4 1 CHAIR KASSEKERT: When you are working, 2 where are you working at? 3 MS. JACKSON: At Caesars. 4 CHAIR KASSEKERT: At Caesars. And 5 you -- because you were staying at your 6 sister's you didn't receive the notice? Is 7 that correct? Or you were sick and you 8 didn't -- 9 MS. JACKSON: I was sick during the time 10 I was at my sister's. Yeah. And because -- 11 well, I probably was on medication. 12 CHAIR KASSEKERT: Uh-hum. 13 MS. JACKSON: And because I get pretty 14 out of it when I have these episodes. And I 15 forgot about the letter -- the meeting which 16 was around that time. Which I fully intended 17 on attending, all my meetings as much as 18 possible. You know. 19 CHAIR KASSEKERT: Uh-huh. 20 MS. JACKSON: You know, I never 21 deliberately try to miss a meeting. That's why 22 I'm here today. 23 CHAIR KASSEKERT: Let me ask if the 24 Commissioners have any questions before we hear 25 from the Division? 26 ITEM NO. 4 1 COMMISSIONER FEDORKO: This sounds like 2 a lot of double talk. Do you understand if you 3 don't get this done, you're going to lose your 4 license? 5 MS. JACKSON: Yes, I do, sir. It's not 6 double talk. I do have documentation with all 7 the times I have been out for -- 8 COMMISSIONER FEDORKO: Yeah. But you've 9 got a million reasons why you haven't done what 10 you've done. I mean, you got to take care of 11 this. 12 MS. JACKSON: Yeah. And I'm working 13 toward to taking care of -- I think that will 14 be the best way for me is the wage execution 15 and get it over with. Because it's just -- 16 it's been very hard for me. I'm by myself, and 17 it's been very hard. 18 CHAIR KASSEKERT: Okay. 19 COMMISSIONER SOMMELING: Hear from the 20 Division? 21 CHAIR KASSEKERT: Yeah. We're going to 22 hear from the Division. I just want to see if 23 there's there are any other questions. 24 Commissioner Epps? 25 VICE CHAIR EPPS: It's not really a 27 ITEM NO. 4 1 question as much as a comment. Even if you 2 were -- had a problem, when you were able to 3 realize that you missed a meeting, you need to 4 be proactive. You need to call and say you 5 know what? I missed a meeting. I have 6 whatever condition. Is there something I can 7 do to get this resolved or whatever. You can't 8 just wait and, you know, miss a meeting and 9 just hang out until we call you again. You 10 can't do that. 11 MS. JACKSON: No. I did come in when I 12 missed meetings and submitted the letter, the 13 reasons why. 14 VICE CHAIR EPPS: The reason you're here 15 is because you missed a meeting. You made a 16 meeting. You missed a meeting. Then we had to 17 call you to come here. What happens is -- 18 MS. JACKSON: No. That's not -- 19 VICE CHAIR EPPS: We'll, that's why 20 you're here today. 21 MS. FRIGEN: That is true. 22 MS. JACKSON: Oh, I'm sorry. 23 VICE CHAIR EPPS: So what I'm saying is, 24 is when you miss, when you realize you miss, be 25 proactive. Call, you know, I missed that 28 ITEM NO. 4 1 meeting. Is there something I can do? Because 2 you're in a bad position when you're just 3 waiting for us to bring you here. That's a bad 4 result. So, you know, first of all, you need 5 to try not to miss anymore. But if you do 6 miss, you need to be proactive and say, hey, 7 I'm sorry I missed, but is there something I 8 can do? Miss -- 9 MS. JACKSON: I apologize. Because I, 10 you know, when I have these episodes, I be -- I 11 be on a lot of medication. And I be just kind 12 of out of it. Not thinking clearly. But I do 13 apologize, and I do -- I do realize the 14 seriousness of the matter. 15 COMMISSIONER SOMMELING: Miss Jackson, 16 you realize that you always have to keep in 17 touch with both agencies? 18 MS. JACKSON: Both agencies? 19 COMMISSIONER SOMMELING: The Commission 20 itself, us, and the Division of Gaming 21 Enforcement? So you can make sure that the 22 matters are cleared up entirely. 23 MS. JACKSON: Well, I've been keeping in 24 contact with the Division. 25 COMMISSIONER SOMMELING: Right. 29 ITEM NO. 4 1 MS. JACKSON: Except for the last 2 meeting that I missed. 3 CHAIR KASSEKERT: Mr. Biscieglia? 4 MR. BISCIEGLIA: Thank you. 5 I mean, obviously, there's been a lack 6 of contact here. And the Commission -- the 7 Division will acquiesce to the Commission's 8 ruling on that. If you choose to allow Miss 9 Jackson to retain her license, what I propose 10 to take care of this matter today, is because 11 both of these debts that are owed to the two 12 municipalities are subject to wage executions, 13 the Division would propose to that we do those 14 wage executions today at the conclusion of my 15 business before the Commission. 16 I didn't handle this matter originally. 17 The only reason I can think of that a wage 18 execution wasn't done in the first place is 19 because a lot of times when the debts are of a 20 smaller nature, 5 or $600, we will maybe do a 21 one-year reporting requirement, allow the 22 person to pay it off and maybe just show us 23 evidence that it has been paid off. That, 24 obviously, hasn't happened here. So I think 25 now the time has come to do those wage 30 ITEM NO. 4 1 executions. And that would end the reporting 2 requirement. That would pretty much put the 3 matter to bed, and that's the solution the 4 Division seeks in this matter. 5 CHAIR KASSEKERT: Okay. If that's 6 acceptable, is there a motion to that effect 7 if -- 8 COMMISSIONER FEDORKO: Motion. 9 COMMISSIONER 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 Now, ma'am, I think you heard what both 17 the Division said, what Commissioner Epps said, 18 what Commissioner Fedorko said. You know, you 19 need to take this very seriously because your 20 license could be impacted. And if you can't 21 make a meeting and you're ill, then you've got 22 to have somebody call us and let us know that. 23 And we are going to give you one more chance 24 but -- 25 MS. JACKSON: Thank you. 31 ITEM NO. 4 1 CHAIR KASSEKERT: If we, you know, have 2 a problem, and Mr. Biscieglia has asked that we 3 do your wage execution today, and we will do 4 that. And, you know, move forward then. Okay? 5 MS. JACKSON: Thank you very much. 6 CHAIR KASSEKERT: All right. You're 7 welcome. 8 MS. FRIGEN: Madame Chair -- 9 CHAIR KASSEKERT: Yes. 10 MS. FRIGEN: Just for the record, we 11 just wanted to have some clarification that the 12 nature of the motion was to, in fact, remand 13 for purposes of -- 14 CHAIR KASSEKERT: Right. 15 MS. FRIGEN: -- getting the wage 16 executions accomplished. 17 CHAIR KASSEKERT: Correct. 18 MS. FRIGEN: I don't think anything 19 further needs -- just to clarify what occurred. 20 CHAIR KASSEKERT: Okay. Thank you. 21 Thank you. 22 MR. BISCIEGLIA: I have a question. 23 When you say "remand," not for further 24 conferences. We're going to take of this -- 25 MS. FRIGEN: Well, further conference 32 ITEM NO. 4 1 following the meeting -- 2 CHAIR KASSEKERT: Today. 3 MR. BISCIEGLIA: Okay. 4 MS. FRIGEN: -- to accomplish executing 5 those two wage executions. 6 MR. BISCIEGLIA: That is fine. 7 CHAIR KASSEKERT: Okay. Very good. 8 MS. FRIGEN: Let me inquire whether 9 Eizabeth Kane or Gary Szydlowski is present or 10 represented? 11 (No response.) 12 MS. FRIGEN: No. Apparently not. 13 Similar to these last two matters, they 14 were licensed with reporting conditions which 15 they failed to comply with, both failed to 16 attend conferences. 17 Their two matters are before you for 18 consideration today. 19 CHAIR KASSEKERT: Thank you. 20 Mr. Bisciglia? 21 MR. BISCIEGLIA: Thank you. 22 Due to the two mentioned individuals' 23 failure to appear before the Commission today, 24 this was their last chance, their last bite of 25 the apple, per se, after a history of 33 ITEM NO. 4 1 noncooperation with the Division. 2 The Division must ask the respective 3 orders be vacated leading to the revocation of 4 the two licenses of these two individuals. 5 Thank you. 6 CHAIR KASSEKERT: Thank you. 7 Any questions? 8 COMMISSIONER SOMMELING: Madame Chair, 9 based upon their noncompliance with the 10 conditions set forth in the existing Commission 11 orders and subsequent failure to address their 12 noncompliance issue after having been afforded 13 the opportunity to do so, vacate the existing 14 orders, granting the license applications of 15 the referenced individuals and deny their 16 respective license applications;. 17 Further, pursuant to Section 106(c) of 18 the Act, revoke the casino service employee 19 registration held by Gary A. Szydlowski. 20 COMMISSIONER FEDORKO: Second. 21 CHAIR KASSEKERT: The motion has been 22 made and seconded. All in favor? 23 (Ayes.) 24 CHAIR KASSEKERT: Opposed? 25 (No response.) 34 ITEM NO. 5 1 CHAIR KASSEKERT: Motion carries. 2 MR. NANCE: Item No. 5, petition of 3 Tommy Rodriguez for early reapplication. 4 Miss Frigen? 5 MS. FRIGEN: Is Mr. Rodriguez present? 6 (No response.) 7 MS. FRIGEN: Okay. I don't believe he 8 is. 9 For your consideration is a petition 10 seeking permission to reapply early for a 11 license registration and for a noncredential 12 hotel employment. Essentially, it was a 13 fingerprinting issue. He was revoked for his 14 failure to be. As part of his petition, he was 15 fingerprinted. 16 It's my understanding that the Division 17 does not object to this petition. 18 CHAIR KASSEKERT: Mr. Biscieglia? 19 MR. BISCIEGLIA: Thank you. 20 As Miss Frigen said, the Division does 21 not object to this petition, and we'll be happy 22 to answer any questions. 23 Thank you. 24 CHAIR KASSEKERT: Any questions? 25 COMMISSIONER SOMMELING: No questions, 35 ITEM NO. 6 1 Madame Chair. 2 COMMISSIONER FEDORKO: Move to grant Mr. 3 Rodriguez permission to reapply early for a 4 casino employee license, a casino service 5 employee registration, and/or to obtain 6 employment early as a noncredential hotel 7 employee. 8 COMMISSIONER 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 MR. NANCE: Item No. 6, application for 16 suspension of State versus Kathleen Mason. 17 Miss Frigen? 18 MS. FRIGEN: I don't believe she is 19 present. For the record, let me inquire 20 whether Miss Mason is present or represented 21 here today? 22 (No response.) 23 MS. FRIGEN: Okay. I do not see her. 24 I would note this matter was adjourned 25 two weeks ago to allow Miss Mason to bring in 36 ITEM NO. 6 1 an attorney as she indicated she wished to do. 2 I have received no further communications from 3 either her or her attorney on her behalf. 4 Thank you. 5 CHAIR KASSEKERT: Thank you. 6 Mr. Biscieglia? 7 MR. BISCIEGLIA: Thank you. 8 The Division will rely on its suspension 9 application, although there is one matter I'd 10 like to address. 11 As you know, this matter is based on two 12 separate arrests which occurred that led to the 13 Division's suspension application. The arrest 14 of March 17th, 2009, is currently pending a 15 grand jury with no date set. 16 Now, the arrest of January 14th, 2009, 17 was dismissed. And the original reason given 18 for the dismissal was a lack of prosecution. I 19 wanted to put forward to the Commission that 20 this was not a lack of pros -- I don't believe 21 this a lack of prosecution in the classic sense 22 that the casino did not care enough about this 23 to follow up with it. 24 Division Investigator Brian Donohue 25 listened to a taped transcript of the hearing. 37 ITEM NO. 6 1 And I would just like to state what was put on 2 the transcript. Investigator Donohue is 3 present in the meeting room today, so if 4 anybody has any questions, he would be willing 5 to entertain them. But from his analyzation of 6 the tape, Judge Weeks, who was hearing the case 7 asked Atlantic City Municipal Prosecutor, 8 Jacqueline Abdur Labot (phonetic) if the State 9 was going forward with its case. The 10 Prosecutor replied the State is not ready 11 today. The witness, Danny Brockdorf, who is 12 one of the leading complainants, is not 13 present. He is out of town. Judge Weeks 14 replied, "That matter is dismissed. Next." 15 So it seems more that the State -- that 16 the witness was not prepared to appear that 17 day, as they were out of town, and the judge 18 decided to dismiss the case. I don't think 19 that meets the classic criteria of what we 20 think of lack of prosecution. 21 CHAIR KASSEKERT: -- 'cution. 22 MR. BISCIEGLIA: I think the State did 23 have an interest in prosecuting this case, 24 however, the judge, without the witness being 25 present, moved to dismiss the case. 38 ITEM NO. 7 1 And, therefore, the Division has nothing 2 further. 3 CHAIR KASSEKERT: Thank you for the 4 clarification. 5 Any questions? 6 VICE CHAIR EPPS: Madame Chair, I move 7 that we grant the Division's application to 8 suspend Miss Mason's casino employee license. 9 COMMISSIONER SOMMELING: Second. 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. BISCIEGLIA: Thank you. 18 CHAIR KASSEKERT: Thank you. 19 MR. NANCE: Item No. 7, consideration of 20 forfeiture orders in State versus Trump Plaza 21 Associates, et al., and Marina District 22 Development Company, LLC, et al. 23 Miss Frigen? 24 MS. FRIGEN: I don't believe so, but let 25 me ask whether there's anyone here in 39 ITEM NO. 7 1 connection with these two matters? 2 (No response.) 3 MS. FRIGEN: Apparently not. 4 I would note that we did receive letters 5 from respective casino counsel indicating that 6 they are not contesting the forfeiture actions. 7 And staff have brought to the 8 Commission's attention that we were unable to 9 serve three patrons with notice due to 10 incomplete address information, so we've 11 requested that those three matters as outlined 12 in the paperwork -- that they've be dismissed 13 without prejudice. 14 CHAIR KASSEKERT: Thank you. 15 Mr. Stebbins? 16 MR. STEBBINS: Thank you very much, 17 Madame Chair, members of the Commission. 18 A couple of forfeitures in front of you. 19 It's fairly clear-cut. It's on the papers. 20 Miss Frigen noted that there are three 21 people with the incomplete addresses. As I've 22 said I believe at the last time we had a 23 go-round with some forfeiture actions that 24 problem appears to be curable with the proposed 25 regulations regarding forfeiture, so going 40 ITEM NO. 7 1 ahead, this may evaporate. 2 CHAIR KASSEKERT: Okay. 3 MR. STEBBINS: So that's where we are. 4 But, otherwise, we should just proceed on the 5 papers. 6 And thank you. 7 CHAIR KASSEKERT: Thank you. 8 Let me ask if there are any questions? 9 COMMISSIONER SOMMELING: No questions, 10 Madame Chair. 11 CHAIR KASSEKERT: Let me just say that, 12 you know, obviously, we are very concerned 13 about underaged gambling. And contained in 14 this matter were 92 cases of forfeiture, the 15 largest forfeiture being $1472, the smallest 16 being five cents. But I think it shows the 17 Division and our concern about underaged 18 gambling. 19 So that being the case, Commission Epps, 20 you want to make a motion? 21 VICE CHAIR EPPS: Well, with respect to 22 Item 7a, I move that Trump Plaza Associates' 23 complaint involving 48 underaged patrons we 24 dismiss without prejudice the forfeiture 25 actions alleged in the complaint with respect 41 ITEM NO. 7 1 to the Respondents NO and HU due to the 2 inability to effectuate proper notice as 3 required by Section 71.3(c) of the Act, but, 4 otherwise order that the monies seized from the 5 remaining 46 respondents due to their having 6 gambled while underaged is forfeited, and Trump 7 Plaza Associates is directed to remit the 8 forfeited money to the Commission in accordance 9 with NJSA 5:12-71.3(c). 10 With respect to 7b, Marina District 11 Development Company, LLC's, complaint involving 12 46 underaged patrons, dismiss without prejudice 13 the forfeiture action alleged in the complaint 14 with respect to Respondent KF due to our 15 inability to effectuate proper notice, but 16 otherwise, order that the money seized from the 17 remaining 45 respondents due to their having 18 gambled while underage is forfeited. 19 And Boardwalk Regency Corp. is directed 20 to remit the forfeited money to the Commission 21 in accordance with NJSA 5:12-71.3(c). 22 COMMISSIONER FEDORKO: Second. 23 COMMISSIONER SOMMELING: Second. 24 CHAIR KASSEKERT: Motion is made and 25 seconded. 42 ITEM NO. 9 1 All in favor? 2 MR. NANCE: Chair? 3 CHAIR KASSEKERT: Yes? 4 MR. NANCE: We have a correction. It 5 should be "Marina District Development 6 Company," not "Boardwalk Regency." 7 CHAIR KASSEKERT: Boardwalk Regency. 8 Yeah. You're right. Thank you. 9 Motion has been made and seconded. All 10 in favor? 11 (Ayes.) 12 CHAIR KASSEKERT: Opposed? 13 (No response.) 14 CHAIR KASSEKERT: Motion carries. 15 MR. STEBBINS: Thank you. 16 CHAIR KASSEKERT: Thank you. 17 MR. NANCE: For your consideration, Item 18 No. 9, proposed adoption of amendments to NJAC 19 19:45-1.42 and 19:46-1.26b. 20 Mr. Kell? 21 MR. KELL: Good morning, Madame Chair, 22 Commissioners. 23 Before you are proposed amendments that 24 would establish two alternative sets of 25 procedures for slot machine bill changers, 43 ITEM NO. 8 1 utilized alterable storage media that do not 2 comply with current regulations applicable to 3 alterable storage media. 4 The amendments were published and 5 temporarily adopted on November 12th, 2008. No 6 comments were received. 7 And the staff recommends that you 8 publish them without change. 9 Thank you. 10 CHAIR KASSEKERT: Thank you. 11 Any questions for Mr. Kell? 12 COMMISSIONER SOMMELING: No questions, 13 Madame Chair. 14 Move to approve as -- adopt as 15 published. 16 VICE CHAIR 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. KELL: Thank you. 24 CHAIR KASSEKERT: Thank you. 25 MR. NANCE: Item No. 8, petition of 44 ITEM NO. 8 1 Harrah's Operating Company, Inc., Showboat 2 Atlantic City Operating Company, LLC, Boardwalk 3 Regency Corp., and Bally's Park Place, Inc., 4 for approval of the issuance of a new senior 5 secured notes and other relief. 6 Miss Wosniak? 7 MS. WOZNIAK: Good morning, Chair, and 8 Commissioners. Mr. O'Gara is here for the 9 Petitioner and Miss Turi for the Division. 10 We have a revised draft resolution 11 before you that I have also distributed to the 12 parties. 13 And there are sealing requests as to the 14 Division's report of May 19th and the 15 supplemental report of June 1st. 16 CHAIR KASSEKERT: Thank you. 17 Let's -- shall we deal with the sealing 18 request first? 19 Miss Turi, Mr. O'Gara? Any objections 20 to the sealing request? 21 MS. TURI: We have no objection. 22 CHAIR KASSEKERT: Since it's 23 your objection -- you wouldn't object? 24 MS. TURI: We have no objection. 25 MR. O'GARA: I'd be the asker. 45 ITEM NO. 8 1 (Laughter.) 2 CHAIR KASSEKERT: Seeing that, we will 3 honor the sealing request. 4 Mr. O'Gara, this is your petition. 5 MR. O'GARA: Yes, ma'am. 6 This petition is seeking the approval of 7 up to $1.375 billion worth of senior secured 8 notes that will be issued by Harrah's Operating 9 Company. The proceeds of those notes will be 10 used to pay down a portion of the outstanding 11 HOC term loan in the amount of $832 million. 12 And the pay-down -- a portion of the revolver 13 in the amount of $461 million of which 230 14 million will be a permanent reduction. 15 The petition indicates that there are 16 two possible ways to do it. One would be an 17 issuance of notes by what are new entities 18 which are escrows companies which would issue 19 the notes, collect the money, actually sell the 20 notes to the purchasers. And then there would 21 be conditions satisfied, that is that the bank 22 execute the agreement, the approvals be in 23 place. And upon that, there been an exchange 24 for the HOC notes. We presently anticipate 25 that, as the bank has now signed the agreement, 46 ITEM NO. 8 1 that we will close directly with the HOC notes 2 and not pass through the escrow assuming that 3 we gain your approval. So there would be a 4 direct issuance by HOC. 5 This is part of what's been and will 6 continue to be kind of a rolling term of 7 refinancing. The significant amount of debt 8 that Harrah's has and, in this instance, it's 9 specifically to do two things. It's, one, to 10 take out certain maturities, which to take out 11 the near-term maturities and push them out so 12 that you get into the 2014, 2015, 2016, 2017 13 maturities. The idea being there's then better 14 able to manage cash flows and the capital stack 15 in terms of, you know, balancing the present 16 situation and the current economy. 17 Also, here there will be a loosening of 18 certain financial covenants. That is, that 19 with this there will be a change in those 20 covenants allowing a lot more flexibility for 21 Harrah's in dealing with the management, not 22 only with cash flow but of debt and debt 23 service obligations. 24 This -- up until now, you've dealt 25 with -- and very kindly -- with the number of 47 ITEM NO. 8 1 exchanges that we've done. And if I have the 2 numbers right -- and I think I do. Because we 3 just ran them. The -- assuming this 4 transaction is approved, what we will have 5 accomplished to date is that there will be 6 reduction in annual interest -- and that's 7 overall interest, including PIK, which is 8 pay-in-kind interest -- of 225 million and a 9 reduction in the net debt, the net debt of HOC, 10 of $3.1 billion and an extension of, you know, 11 over $9 billion worth of maturities of that 12 total debt package. So that's what the goal 13 is. 14 And we've reviewed the draft resolution, 15 and it's satisfactory and fine with us. 16 And, you know, we had hoped to do this 17 two weeks ago. We, obviously, didn't have all 18 the buttons sewed onto the garment at that 19 time. But I appreciate Miss Wozniak and the 20 Division and, you know, some of this stuff is-- 21 it's very complicated, because the capital 22 stack is complicated. And people have been 23 most courteous in trying to help us to 24 accomplish this goal, and we appreciate that. 25 Thank you. 48 ITEM NO. 8 1 CHAIR KASSEKERT: Thank you. 2 Let me ask if there are any questions 3 before we hear from the Division? 4 Commissioner Epps? 5 VICE CHAIR EPPS: It's probably a 6 rhetorical question, but the market is being 7 receptive to these notes? 8 MR. O'GARA: Yeah. Excuse me 9 Commissioner. Yes. 10 That was the whole -- if you want the 11 whole story, I'll tell you the whole story. 12 The reality was that there was an opening in 13 this high-yield market. There was a window. 14 And two issuers were going out. One was MGM. 15 One was Harrah's. We sought to see how much of 16 that window there was. This is the amount. 17 MGM was in the market at the point two weeks 18 ago when we were there. The bank wanted to see 19 what the reception was to that issue as to this 20 whole allotment. The reception was good. We 21 then were able to go forward with ours. The 22 bank would execute what they have to with 23 respect to the loan agreement. And now it's 24 our hope that these notes can be sold tomorrow. 25 And there is -- it's just, no one knows 49 ITEM NO. 8 1 how long the window's open. It's been -- but 2 there have been two issuers. MGM and Harrah's 3 have both made it into the high-yield market. 4 But it's not without the consequences. You've 5 seen the offering statement. This is an 11 and 6 a quarter percent coupon on this. 7 VICE CHAIR EPPS: And one other 8 question. This is a little bit different 9 process than your exchanges in the past where 10 you were just exchanging with, kind of, current 11 holders. 12 MR. O'GARA: Right. 13 VICE CHAIR EPPS: This is going out and 14 selling these. 15 Are you confident that the process in 16 this regard will be more -- will entertain more 17 interest than the exchanges did? Or do you 18 have any -- any indication -- 19 MR. O'GARA: No. I -- there's no 20 question that they believe these will sell. 21 What this enables -- the exchangers are going 22 on with people who have certain notes, and 23 they're getting other notes. This is to reduce 24 under that credit agreement the term loan. And 25 with that reduction comes not only the 50 ITEM NO. 8 1 extension of the maturity for that, as it would 2 come, but also that loosening of the covenant. 3 So there were two goals here. 4 Yeah. I think there's hope that people 5 want to continue to look at the market as to 6 how to blend what you might exchange. You 7 know, clearly the up side of the exchange is 8 that, as you've seen, is that because they 9 trade below par, you exchange at a lesser 10 amount. You get these net reductions. I think 11 it's an idea of trying to balance that. And 12 there's a lot of people spending a lot of time 13 trying to figure out what that right balance 14 is. And then, unfortunately, as you've come to 15 know, decide that they arrive at the balance, 16 and they will you that they have 90 seconds to 17 accomplish it. And that's kind of the way it 18 happens. 19 VICE CHAIR EPPS: Now, one other 20 question. With the exchanges, there was a 21 certain number that you sought to exchange, and 22 if you -- if they didn't all occur, you held on 23 to the difference. With these you are seeking 24 to sell them all. 25 MR. O'GARA: Yes. 51 ITEM NO. 8 1 VICE CHAIR EPPS: Is there any -- 2 MR. O'GARA: I believe that there's -- 3 there's little question that the underwriters 4 believe these will all be sold. 5 VICE CHAIR EPPS: Okay. 6 CHAIR KASSEKERT: Any other question? 7 MR. O'GARA: They have commitments, I 8 believe. 9 COMMISSIONER SOMMELING: No further 10 questions. 11 CHAIR KASSEKERT: Miss Turi? 12 MS. TURI: Yes. Thank you. 13 The Division's responsibility here, 14 quite frankly, has always been to look at the 15 financial stability and to ensure that whether 16 it be an exchange or issuance of notes that we 17 at least are comfortable and can represent to 18 you and recommend that it's not going to impact 19 the financial stability of the casino itself. 20 We've had the opportunity over the last 21 few months to review the exchange offers. We 22 had the responsibility and the opportunity to 23 review this particular transaction and the 24 issuance of the notes, the possible issuance of 25 the notes. Both two weeks ago when we weren't 52 ITEM NO. 8 1 quite sure exactly what was going to happen 2 with them, and then during these two weeks to 3 get more of an idea of exactly how it was going 4 to happen. And our bottom line, after we 5 reviewed this, was to say that we don't believe 6 that it's going to impact the financial 7 stability of the casino at this point. 8 Obviously, what we're going to do, 9 especially through some of the conditions that 10 we've recommended and that appear in the draft 11 resolution, is look towards maintaining our 12 review of all of the information that comes in 13 to ensure that the financial stability of the 14 casinos -- all of the casinos that are involved 15 here remain true and remain financially stable. 16 So we've reviewed the draft resolution. 17 We have no objection to the draft resolution 18 and recommend it as being adopted with the 19 conditions as they're stated in the resolution. 20 Thank you. 21 CHAIR KASSEKERT: Thank you. 22 Any questions? 23 COMMISSIONER SOMMELING: No questions, 24 Madame Chair. 25 COMMISSIONER FEDORKO: Motion to adopt 53 ITEM NO. 10 1 the draft resolution and grant the relief 2 requested approving the issuance of the new 3 notes subject to the terms and conditions and 4 to the extent set forth in the resolution. 5 COMMISSIONER SOMMELING: Second. 6 CHAIR KASSEKERT: Motion is made and 7 seconded. This is a roll call vote. 8 MR. NANCE: Commissioner Fedorko? 9 COMMISSIONER FEDORKO: Yes. 10 MR. NANCE: Commissioner Sommeling? 11 COMMISSIONER SOMMELING: Yes. 12 MR. NANCE: Vice Chair Epps? 13 VICE CHAIR EPPS: Yes. 14 MR. NANCE: Chair Kassekert? 15 CHAIR KASSEKERT: Yes. 16 MR. NANCE: The record will reflect that 17 the motion is unanimous. 18 CHAIR KASSEKERT: Thank you. 19 MR. O'GARA: Thank you. 20 MR. NANCE: Item No. 10, reconstitution 21 of the Casino Control Audit Committee. 22 Miss Fauntleroy? 23 MS. FAUNTLEROY: Yes. This is the last 24 item, is a little internal housekeeping in 25 light of Vice Chair Epp's capacity as Vice 54 ITEM NO. 10 1 Chair. Pursuant to Executive Order 122, the 2 Commission's Internal Audit Committee's 3 constitution should not involve anyone involved 4 in the day-to-day management of the 5 Commission's operations. 6 Accordingly, the proposal is to 7 substitute Commissioner Sommeling, who is no 8 longer Vice Chair, for Commissioner Epps, who 9 is currently Vice Chair. 10 CHAIR KASSEKERT: Thank you. 11 Any questions? 12 VICE CHAIR EPPS: I have several. 13 (Laughter.) 14 CHAIR KASSEKERT: Is there a motion? 15 VICE CHAIR EPPS: I'm not moving. 16 (Laughter.) 17 CHAIR KASSEKERT: Commissioner Fedorko, 18 would you make the motion, please? 19 COMMISSIONER FEDORKO: Since I'm not 20 part of this at all -- 21 (Laughter.) 22 COMMISSIONER FEDORKO: -- I adopt the 23 draft resolution and appoint Commissioner 24 Sommeling to replace Vice Chair Epps on the 25 Casino Control Commission -- 55 ITEM NO. 10 1 CHAIR KASSEKERT: You made a motion. 2 You're not adopting it. 3 (Laughter.) 4 COMMISSIONER FEDORKO: Right. I'm 5 making a motion. 6 CHAIR KASSEKERT: We're going to adopt 7 it. 8 COMMISSIONER FEDORKO: Right. 9 CHAIR KASSEKERT: Thank you. 10 Is there a second? 11 Commissioner Sommeling, you need to 12 second it because Commissioner Epps isn't going 13 to. 14 (Laughter.) 15 VICE CHAIR EPPS: 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: The motion carries. 22 (Laughter.) 23 MR. NANCE: In accordance with 24 Resolution No. 08-12-10-22, the next closed 25 session of the Commission shall be held on 56 1 Wednesday, June 17th, 2009, at 9:15 a.m. in the 2 Commission offices. 3 It is now -- excuse me. It is now time 4 for the public participation portion of the 5 meeting. 6 CHAIR KASSEKERT: Is there anyone from 7 the public who issues to be heard? 8 (No response.) 9 CHAIR KASSEKERT: Seeing no one, I will 10 declare this section of the meeting closed and 11 entertain a motion to adjourn. 12 COMMISSIONER SOMMELING: Motion to 13 adjourn. 14 COMMISSIONER FEDORKO: Second. 15 CHAIR KASSEKERT: The motion has been 16 made and seconded. All in favor? 17 (Ayes.) 18 CHAIR KASSEKERT: Opposed? 19 (No response.) 20 CHAIR KASSEKERT: Motion carries. 21 Thank you. 22 (Public Meeting 09-06-03 was adjourned 23 at 11:14 a.m.) 24 25 57 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: June 5, 2009 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25