1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 11-02-09 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, February 9, 2011 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 10:53 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 700 23 ATLANTIC CITY, NEW JERSEY 08401 24 (609) 345-8448 www.accourtreporting.com 25 2 1 B E F O R E : 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 EDWARD J. FANELLE, VICE CHAIR MICHAEL C. EPPS, COMMISSIONER 4 SHARON ANNE HARRINGTON, 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 CLAIRE FRANK, PROGRAM MANAGER 10 DIVISION OF GAMING ENFORCEMENT: DOROTHY TURI, DEPUTY ATTORNEY GENERAL 11 12 13 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. 3 DARYL W. NANCE, ADMINISTRATIVE ANALYST DOROTHY TURI, DEPUTY ATTORNEY GENERAL 3 KEVIN SMITH, ESQ. FOR: RIH ACQUISITION NJ, INC. 4 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. 11-02-09 2 FEBRUARY 9, 2011, 10:38 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of the 7 7 January 19, 2011, public meeting 4 Resolution for Commissioner Epps 7 2 Applications for casino key employee 5 licenses and for qualifications: A) Joseph P. Hooker (key) 15 15 6 b) Jeanne M. Painter (key) 15 16 c) Steven J. Rao (key) 15 16 7 d) Nicolas E. Kurban (key qualifier) 16 17 3 Petition of RIH Acquisition NJ, LLC, 17 18 8 (d/b/a Atlantic City Hilton) for the issuance of a temporary casino key employee 9 license to John Zulawski, Jr., pursuant to NJSA 5:12-89(e) and to permit him pursuant 10 to NJAC 19:43-2.6 to assume the duties and exercise the powers of Director of Security 11 without first having been qualified (PRN 0141101) 12 4 Consideration of the plenary qualification 19 20 of Eric Hession as Vice President Corporate 13 Finance and Treasurer for Caesars Entertainment Corporation and Caesars Operating 14 Company, Inc. 5 Re-constitution of the Casino Control 21 22 15 Commission Audit Committee 16 17 18 19 20 21 22 23 24 25 5 1 E H I B I T S : 2 NO. DESCRIPTION EVD 3 4 P-1 Remand for hearing 1 license X 5 P-2 Grant 2 licenses X 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (Exhibits retained by Commission.) 25 6 1 (Public Meeting 11-02-09 was commenced 2 at 10:38 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 Meeting Act," the New Jersey Casino Control 9 Commission on November 1, 2010, filed with the 10 Secretary of State at the State House in 11 Trenton, New Jersey, a notice of this hearing. 12 On November 3, 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 is prohibited. 20 Any member of the public who wish to 21 address the Commission will be given the 22 opportunity to do so before the Commission 23 adjourns for the day. 24 Please stand for the Pledge of 25 Allegiance. 7 1 (The flag salute was recited.) 2 CHAIR KASSEKERT: Good morning. 3 MR. NANCE: Good morning. 4 The matters discussed in closed session 5 were: Employee license matters. 6 The Commission approved the January 19, 7 2011, closed-session minutes. 8 Item No. 1, ratification of the minutes 9 of the January 19, 2011, public meeting. 10 COMMISSIONER EPPS: I move -- 11 COMMISSIONER HARRINGTON: Second. 12 CHAIR KASSEKERT: The motion has been 13 made and seconded. All in favor? 14 (Ayes.) 15 CHAIR KASSEKERT: Opposed? 16 (No response.) 17 CHAIR KASSEKERT: The motion carries. 18 MR. NANCE: Chair? 19 CHAIR KASSEKERT: Well, we again come to 20 a time of -- of farewell. And this is 21 particularly tough because, Mike, you and I 22 sort of -- you got here a year ahead of me, and 23 we've been together for a long time. And you 24 have been a consistent and passionate member of 25 this Commission, and we're going to miss you. 8 1 And I'm going to read into the record a 2 resolution which I'm going to ask for adoption: 3 Whereas, Michael C. Epps was appointed 4 to the Casino Control Commission on January 5 4th, 2002, and; whereas, he served the 6 Commission and the people of the State of New 7 Jersey with distinction from January 4th, 2002, 8 to February 11th, 2011, including two terms as 9 Vice Chair in 2005 and 2009; and, whereas, he 10 has demonstrated the highest level of personal 11 integrity, scholarship, and dedication in 12 fulfilling his responsibilities as Commissioner 13 and; whereas, he has exhibited honesty, 14 dignity, and compassion in discharging his 15 duties in assuring that all individual 16 applicants and respondents were treated fairly 17 and equitably, and; whereas, his passion, 18 independence, and overriding commitment to 19 justice enhanced the public trust and 20 confidence in the regulation of casino gaming 21 in Atlantic City and; whereas, his wisdom, 22 professionalism, and tenacity has earned him 23 the praise, respect, and admiration of his 24 colleagues in the entire casino gaming 25 community and; whereas, his judicial 9 1 temperament, acute insight, and perceptive 2 analysis of the myriad complex issues 3 confronting this agency aided immeasurably in 4 the Commission's decision-making process, and; 5 whereas, it is fitting and appropriate to 6 commend Michael C. Epps for his noteworthy 7 achievements and special contributions to the 8 Commission, the State of New Jersey, and the 9 casino gaming industry during his distinguished 10 service; now, therefore, be it revolved that 11 the Casino Control Commission and its staff 12 hereby express their gratitude to Michael C. 13 Epps, for his invaluable service to the 14 Commission, for his contributions to the proper 15 regulation of casino -- of casino gaming, and 16 to the realization of the ultimate social and 17 economic purposes of the Casino Control Act, 18 and for his good will and friendship; and be it 19 further resolved that the Commission and staff 20 hereby extend their best wishes to Michael C. 21 Epps and all of his future endeavors; and be it 22 further resolved this resolution be placed in 23 the record as a commemoration of our sincere 24 appreciation and our heartfelt best wishes. 25 And I so move this resolution. Is there 10 1 a second? 2 COMMISSIONER HARRINGTON: I second. 3 VICE CHAIR FANELLE: Two seconds. 4 CHAIR KASSEKERT: Two seconds. 5 A motion has been made and seconded. 6 All in favor? 7 (Ayes.) 8 CHAIR KASSEKERT: Opposed? 9 (No response.) 10 CHAIR KASSEKERT: The motion passes. 11 Congratulations. 12 (Applause and stand ovation.) 13 CHAIR KASSEKERT: I don't know if any of 14 the commissioners want say anything. 15 MS. FAUNTLEROY: Speech. 16 VICE CHAIR FANELLE: Yeah. I think I 17 want to say something. 18 CHAIR KASSEKERT: Oh. 19 VICE CHAIR FANELLE: I've worked with 20 Mike for the last year, and one of the things 21 that I did when I first came is because Mike 22 was an Atlantic City person, born and raised, I 23 wanted him to show me what was important to 24 the -- to the City of Atlantic City. And he 25 took me around to every neighborhood and 11 1 explained where the neighborhoods got their 2 name and what they did and what they were 3 famous for. And that's how he ruled on this 4 body. He took what was most important for 5 Atlantic City first. And that's one of the 6 main things I'll always remember from 7 Commissioner Epps, is that he put the best foot 8 of Atlantic City in the forefront, and I'd like 9 to thank him for that. 10 COMMISSIONER HARRINGTON: And I would 11 like to say that from day one he made me feel 12 welcome. He was always willing to give me 13 insight into the issues before us. But in the 14 resolution you referred to him as "tenacious" 15 and "compassionate," and I think that those are 16 two -- two words that actually characterize and 17 capture Mike Epps and his spirit. There's a 18 reason that he's called the "people's 19 Commissioner." And it's been a privilege to 20 sir with you, sir, and hope we maintain our 21 friendship and see you after today. 22 CHAIR KASSEKERT: Anything you'd like to 23 say? 24 COMMISSIONER EPPS: One thing I'm 25 certain of, if I'm qualified to do anything, I 12 1 think it's Speaker of the House because John 2 Boehner and I have this tears thing. 3 (Laughter.) 4 COMMISSIONER EPPS: Anybody that I've 5 ever had the opportunity to talk to who asked 6 me how I liked -- enjoyed being a Commissioner, 7 I think I've always told them the same story. 8 It's like a broken record. But it's a unique 9 opportunity to have a chance to impact the 10 engine that drives your home town. And that's 11 the -- that was the most important thing for me 12 to serve on the Casino Control Commission. 13 Because anyone who knows me knows that I'm 14 Atlantic City's bigger cheerleader. And so to 15 have an opportunity to serve on the Casino 16 Control Commission and impact the industry that 17 made my town come back, because it was down, 18 but gaming gave us an opportunity to come back. 19 And I had the pleasure of having an opportunity 20 to have something to say about how it survived 21 during its comeback and how it made its way 22 through some tough times. 23 And here my home town finds itself down 24 again but not out. And one thing I can say on 25 my way out is, don't count Atlantic City out. 13 1 She's taken a bunch of blows in the past, and 2 she's going to take some blows again, but she 3 is one tough lady, that Atlantic City. And 4 she's going to be around for a long time, and 5 she's going to be strong, and she's going to be 6 beautiful. And I'm going to keep doing 7 whatever I can do to make sure that that is 8 what happens. 9 So I'm leaving here, but I'm not -- 10 certainly not leaving Atlantic City, and 11 Atlantic City will never leave me. But I thank 12 the Governor -- well, Governor DiFrancesco and 13 Governor McGreevey, and Governor -- 14 MR. HENEGHAN: Corzine. 15 COMMISSIONER EPPS: Corzine. Governor 16 Corzine reappointed me. Governor McGreevey 17 gave me an opportunity to be on the CRDA for a 18 period. I thank all those gentlemen for giving 19 me the opportunities and seeing something in me 20 that made them believe that I could make a 21 little bit of a difference around here. 22 But most importantly, I have to thank 23 the staff of the Casino Control Commission 24 and -- this is horrible. They've heard me say 25 this many times. But it's -- you know, I'm a 14 1 sports fan, and I always use a football 2 analogy. We sit up here, and we are like the 3 quarterbacks and the running backs. We get to 4 get in the end zone, and everybody sees us, and 5 we get the glory. The staff here are the 6 linemen. They go out. They block. They put 7 themselves in harm's way, and they make the 8 holes, and we just run through. So they do the 9 hard work, and they do what's important. We do 10 the easy stuff, and we get a lot of the glory. 11 But the glory goes to the folks in the back 12 room that you never see. Those are the most 13 important people here at the Casino Control 14 Commission, and I just want to thank them for 15 what they do every day that goes under rewarded 16 and unnoticed. So that's the most important 17 thing I have to say. 18 Thank all you, guys. And, hopefully, we 19 can get through this meeting. Thanks. 20 CHAIR KASSEKERT: Thank you. 21 (Applause and standing ovation.) 22 COMMISSIONER EPPS: You're just going to 23 make it worse. Stop. 24 (Laughter.) 25 COMMISSIONER EPPS: This is terrible. 15 1 MR. NANCE: Item No. 2, application for 2 casino key employee licenses and/or for 3 qualification. This agenda item will be 4 entered as Exhibit List 1 and 2. 5 Exhibit List 1 consists of one 6 application for initial and/or renewal of 7 casino key employee license for Joseph P. 8 Hooker. 9 The Division has objected to licensure. 10 CHAIR KASSEKERT: Is there a motion to 11 remand for a hearing? 12 COMMISSIONER EPPS: I move that we 13 remand this matter for a hearing. 14 VICE CHAIR FANELLE: 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: The motion carries. 21 MR. NANCE: Exhibit List 2 consists of 22 two applications for initial and/or renewal of 23 casino employee licenses for Jeanne M. Painter, 24 Steven J. Rao. 25 The staff and the Division has 16 1 recommended that these licenses be granted. 2 COMMISSIONER HARRINGTON: Move to -- 3 COMMISSIONER EPPS: Move that we grant 4 applications. 5 COMMISSIONER HARRINGTON: Second. 6 VICE CHAIR FANELLE: 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: The motion carries. 13 MR. NANCE: For consideration is the 14 renewal application of Nicholas E. Kurban for 15 key employee license and for qualification as 16 Vice President of Food and Beverage for Marina 17 District Development Company, LLC. 18 The staff and the Division have 19 recommended that this application be granted. 20 COMMISSIONER EPPS: Move that we grant 21 initial key license and qualification. 22 COMMISSIONER HARRINGTON: Second. 23 CHAIR KASSEKERT: Motion is made and 24 seconded. This is a roll call vote. 25 MR. NANCE: Commissioner Epps? 17 1 COMMISSIONER EPPS: Yes. 2 MR. NANCE: Commissioner Harrington? 3 COMMISSIONER HARRINGTON: Yes. 4 MR. NANCE: Vice Chair Fanelle? 5 VICE CHAIR FANELLE: Yes. 6 MR. NANCE: Chair Kassekert? 7 CHAIR KASSEKERT: Yes. 8 MR. NANCE: The record will reflect that 9 the motion is unanimous. 10 Item No. 4 -- no, excuse me. 11 Item No. 3, Petition No. 0141101 of RIH 12 Acquisitions, New Jersey, LLC, is requesting 13 the issuance of a temporary casino key employee 14 license to John Zulawski, Jr., pursuant to NJSA 15 5:12-89(e) and to permit him pursuant to NJAC 16 19:43-2.6 to assume the duties and exercise the 17 powers of Director of Security without first 18 having been found qualified. 19 CHAIR KASSEKERT: Good morning. 20 MR. SMITH: Good morning. Madame Chair, 21 Commissioners. Kevin Smith on behalf of RIH. 22 We'd ask that this matter be approved by 23 the Commission. 24 CHAIR KASSEKERT: Thank you. 25 Good morning, Miss Turi. 18 1 MS. TURI: Good morning, Madame Chair, 2 commissioners. Dorothy Turi on the behalf of 3 the Division of Gaming Enforcement. 4 We have no objection to the relief 5 requested. 6 CHAIR KASSEKERT: Thank you. 7 Any questions? 8 VICE CHAIR FANELLE: No, Madame Chair. 9 I move that we approve the petition and 10 issue a temporary key license employee license 11 to John Zulawski, Jr., and permit him to assume 12 the duties and exercise the powers of Director 13 of Security without first having been found 14 qualified. 15 COMMISSIONER HARRINGTON: Second. 16 CHAIR KASSEKERT: Motion is made and 17 seconded. This is a roll call vote. 18 MR. NANCE: Commissioner Epps? 19 COMMISSIONER EPPS: Yes. 20 MR. NANCE: Commissioner Harrington? 21 COMMISSIONER HARRINGTON: Yes. 22 MR. NANCE: Vice Chair Fanelle? 23 VICE CHAIR FANELLE: Yes. 24 MR. NANCE: Chair Kassekert? 25 CHAIR KASSEKERT: Yes. 19 1 MR. NANCE: The record will reflect that 2 the motion is unanimous. 3 MR. SMITH: Thank you. 4 MR. NANCE: Item No. 4, consideration of 5 the plenary qualification of Eric Hession as 6 Vice President Corporate Finance and Treasurer 7 for Caesars Entertainment Corporation and 8 Caesars Operating Company, Inc. 9 Miss Frank? 10 MS. FRANK: Good morning, Chair and 11 Commissioners. 12 Eric Hession was temporarily qualified 13 by the Commission in May of last year. A draft 14 resolution on his plenary qualification has 15 been circulated to the parties. 16 Mike Magazzu of Caesars Entertainment 17 has been in touch by phone, will not be making 18 an appearance, but would like to rely on the 19 papers. 20 And we have this Miss Turi here from the 21 Division. 22 CHAIR KASSEKERT: Thank you. 23 MS. TURI: Good morning again, Madame 24 Chair and Commissioners. 25 We have reviewed the draft resolution, 20 1 and we have no objection to its entry. 2 CHAIR KASSEKERT: Thank you. 3 Any questions? 4 COMMISSIONER HARRINGTON: No questions. 5 I'll move that we adopt the draft 6 resolution and find Eric Hession qualified to 7 serve as Vice President of Corporate Finance 8 and Treasurer for Caesars Entertainment 9 Corporation and Caesars Operating Company, Inc. 10 VICE CHAIR FANELLE: Second. 11 COMMISSIONER EPPS: Second. 12 CHAIR KASSEKERT: Motion is made and 13 seconded. This a role call vote. 14 MR. NANCE: Commissioner Epps? 15 COMMISSIONER EPPS: Yes. 16 MR. NANCE: Commissioner Harrington? 17 COMMISSIONER HARRINGTON: Yes. 18 MR. NANCE: Vice Chair Fanelle? 19 VICE CHAIR FANELLE: Yes. 20 MR. NANCE: Chair Kassekert? 21 CHAIR KASSEKERT: Yes. 22 MR. NANCE: The record will reflect that 23 the motion is unanimous. 24 MS. FRANK: Thank you. 25 MS. TURI: Thank you. 21 1 MR. NANCE: Item No. 5, reconstitution 2 of the Casino Control Commission Audit 3 Committee. 4 Miss Fauntleroy? 5 MS. FAUNTLEROY: Good morning. 6 The matter for your consideration is the 7 appointment of an alternate commissioner to 8 replace now Vice Chair Ed Fanelle on the Casino 9 Control Commission's Audit Committee and to 10 authorize the removal of Commissioner Epps in 11 lieu of his retirement on Friday, and to 12 approve the reaching out to the Treasurer's 13 Office for them to designate an additional 14 designee to serve on the Commission's Audit 15 Committee. 16 The proposed replacement for Vice Chair 17 Fanelle would be Sharon Anne Harrington. 18 COMMISSIONER HARRINGTON: Thank you. 19 CHAIR KASSEKERT: That would be pursuant 20 to Executive Order. 21 MS. FAUNTLEROY: 122. 22 CHAIR KASSEKERT: Thank you. 23 Any questions? 24 COMMISSIONER HARRINGTON: No questions. 25 COMMISSIONER EPPS: I move that we adopt 22 1 the draft resolution and appoint Commissioner 2 Harrington to replace Vice Chair Fanelle and 3 remove retiring Commissioner Epps from the 4 Casino Control Commission's Audit Committee. 5 VICE CHAIR FANELLE: Second. 6 CHAIR KASSEKERT: Motion made and 7 seconded. All in favor? 8 (Ayes.) 9 CHAIR KASSEKERT: Opposed? 10 (No response.) 11 CHAIR KASSEKERT: Motion carries. 12 MR. NANCE: In accordance with 13 Resolution No. 10-12-15-19, the next closed 14 session of the Commission shall be held on 15 Wednesday, March 2nd, 2011, at 9:15 a.m. in the 16 Commission offices. 17 It is now time for the public 18 participation portion of the meeting. 19 CHAIR KASSEKERT: Is there anyone from 20 the public that wishes to be heard? 21 (No response.) 22 CHAIR KASSEKERT: Seeing no one, I'll 23 declare this portion of the meeting closed and 24 entertain a motion to adjourn. 25 COMMISSIONER HARRINGTON: Second. 23 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: The motion carries. 7 Thank you. 8 (Public Meeting 11-02-09 was adjourned 9 at 10:53 a.m.) 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 24 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: February 10, 2011 23 My Notary Commission Expires July 22, 2014 24 ID No 2062871 25