Detroit-based Michael Malik wants AZ Commission to reconsider five-year hunting license revocation and $14,995 fine

An official Notice & Agenda for a 4.17.09 meeting of the Arizona Game and Fish Commission indicates a tenacious Detroit-based Michael J. Malik, Sr., seeks a rehearing on a decision the Commission made in December 2008.

At that meeting, the Commission fined Malik $14,995 for shooting a trophy elk too close to residences without the permission of the homeowners; and revoked his right to hunt, fish and trap in Arizona and 32 other states for the next five years. Item 11 on the Notice & Agenda for the 4.17.09 meeting read:

Item 11
Presenter: Gene Elms, Law Enforcement Branch Chief. Rehearing Request Regarding Previous License Revocation/Civil Assessment. Mr. Michael Malik has requested that the Arizona Game and Fish Commission grant a rehearing regarding the action taken on revoking his licenses to hunt, fish, and trap for a period of five (5) years, invoking a civil assessment of $8,000.00, and further requiring that he complete a Hunter Education course before obtaining any license in the State of Arizona. The Commission may vote to affirm or modify its decision, or grant a rehearing.

Malik was found guilty in Arizona's Pinetop Justice Court on 8.29.08 of discharging a firearm within the quarter-mile limit of occupied residences while taking elk. (See: Michigan man found guilty on charge stemming from elk hunt).

The criminal conviction authorized the Commission to take civil action against Malik which it did at its 12.05.08 meeting. (See: Michigan man assessed $14,995 for killing trophy elk near homes).

CA FPPC finds Detroit casino syndicator Michael Malik violated campaign reform laws

As published in the Public Notice & Agenda for a 2.19.09 meeting of California's Fair Political Practices Commission (FPPC):

In the Matter of Michael J. Malik Sr., Michael J. Malik, Sr. Trust, and MJM Manistee, Inc., FPPC No. 07/195. Staff: Commission Counsel Angela Brereton. Respondents Michael J. Malik, Sr., Michael J. Malik Sr., Trust, and MJM Manistee, Inc. (collectively, “Respondent Committee”) jointly qualified as a single “major donor committee” under the Act for calendar year 2006. Respondent Committee filed a required semi-annual campaign statement but failed to disclose on the statement 17 contributions made during the reporting period totaling $26,500, in violation of Government Code sections 84200, subdivision (b), and 84211, subdivision (k)(5) (1 count). Total Proposed Penalty: $4,000. Order / Exhibit

This isn't the first time Malik has broken the law. Considers these incidents:

Malik is currently facing federal fraud charges in Florida (Goldberg v. Malik) relating to a Securities & Exchange Commission ponzi scheme case against one-time entertainment promotor Jack Utsick.

Last year, Malik was found guilty on illegal firearms related charges in Arizona.

In its 2.19.09 findings, the FPPC acknowledges that a casino affiliate of Mrs. Marian Ilitch and Malik, BarWest LLC, was found in 2006 to have violated the same CA campaign reform laws and Malik agreed to pay fines and file the appropriate disclosures in that matter.

Malik was once arrested for beating up the 12-year-old son of a girlfriend.

Ilitch partner violated campaign laws by failing to report casino related campaign contributions

In its first public action resulting from a nearly two year investigation into the campaign finance and lobbying practices of Detroit Casino developer Michael J. Malik, Sr., California’s Fair Political Practices Commission (FPPC) has found Malik violated state political campaign laws by falsely filing a campaign finance report in January 2007 that failed to disclose political contributions Malik made to 17 campaign committees and totaling $26,500 between the period July 1 – December 31, 2006.

Malik is the principal casino and development partner of Mrs. Marian Ilitch. She is the owner of Detroit’s MotorCity Casino. Ilitch and her husband Mike Ilitch are co-founders of Little Caesars Pizza and co-owners of the Detroit Red Wings. Her husband owns the Detroit Tigers. The parent company of their various affiliates is Detroit-based Ilitch Holdings, Inc. Marian Ilitch and Malik have formed various affiliates to pursue gambling opportunities across the U.S. including BarWest LLC, an entity pursuing casino resort development projects in Barstow, CA.

In its 2.19.09 decison, the FPPC notes this isn't the first time Malik has been involved in similar violations. In 2004, BarWest LLC failed to report a $26,600 contribution to a San Joaquin County GOP committee. In the Fall 2006, Malik acknowledged those violations, and paid a fine to the FPPC.

Malik is currently facing federal fraud charges in Florida (Goldberg v. Malik) related to a Securities and Exchange Commission ponzi scheme case against concert promoter Jack Utsick.

Public Notice & Agenda: FPPC Meeting 2.19.09

Press Release: FPPC Enforcement Decisions 2.19.09

Ilitch uses taxpayer subsidies to level more Foxtown buildings

3.19.09

Spaces for Final Four
Buildings razed to open room for new parking lots

Louis Aguilar / The Detroit News

DETROIT -- To create more parking for the throngs anticipated for next month's NCCA Final Four basketball championship, Ilitch Holdings Inc. is using state Super Bowl XL funds to quickly demolish five empty downtown buildings.

In less than two weeks, four buildings have been razed, including the former Chin Tiki, a Polynesian-themed restaurant featured in the Eminem film "8 Mile." The other demolished structures are a former apartment complex on West Grand River; an office building on West Columbia; and the former Egyptian building on Cass.

The last one to go is a parking garage at 145 W. Elizabeth, bought by an Ilitch executive in 2007 through a private company, which listed the Ilitches' Fox Theatre headquarters as its address. That was the period in which the Ilitch family quietly increased control of a rundown patch of downtown long considered a potential site for a new hockey arena for the Ilitch-owned Detroit Red Wings.

Mike Ilitch, co-founder of the Little Caesars Pizza chain that started the family's billion-dollar sports, real estate and business empire, has hinted he prefers building a new hockey arena near the Fox.

No decision has been made about that.

The flurry of demolition is all about "added safety and security," said Ilitch spokeswoman Karen Cullen.

"The structures in question were not suitable for long-term redevelopment," Cullen said. "The ability to move forward and remove non-viable buildings from the area ... greatly enhances the appearance for surrounding property owners and their venues."

In December, the city's Downtown Development Authority approved $2.5 million for the demolitions. The money came from state funding originally intended to level empty buildings in time for Super Bowl XL, three years ago.

The properties will become paved parking lots to accommodate the more than 100,000 people who will converge downtown during the first week of April for the NCAA Final Four.

"Yes, that's still the goal," said Fred Beal, president of J.C. Beal Construction Inc, who lobbied on behalf of the Ilitches to obtain the state money.

You can reach Louis Aguilar at (313) 222-2760 or laguilar@detnews.com

TVT Note: A comprehensive map of properties believed to be owned or controlled by the Ilitch family in Foxtown is available here.

Moody's anticipates default for Ilitch affiliate; adds it to "Bottom Rung"

Moody's Investor Services has launched a quarterly report that currently lists nearly 300 companies in the U.S. most likely to fall into default. The list, known as the "Bottom Rung," includes Ilitch-owned CCM Merger, Inc.

Moody's analysts anticipate that 45% of the companies on the list will go into default within the next year.

The "Bottom Rung" represents about 15% of the companies the respected credit ratings agency tracks.

CCM Merger, Inc. has been described as a subsidiary of Ilitch Holdings, Inc. It is the parent company of Detroit's MotorCity Casino which is owned solely by Mrs. Marian Ilitch.

Ilitch bought controlling interest in MotorCity Casino from MGM Mirage in 2005. It's reported that she owes investors more than $1 billion.

In February investors demanded that Ilitch inject $45 million cash into the struggling gaming and entertainment enterprise.

Other affiliates of Ilitch Holdings include the Detroit Tigers, Detroit Red Wings, Little Caesar Enterprises and Olympia Entertainment.

Decision expected this Fall could pave way for Shinnecock Casino Resort on Long Island

4.03.09

Shinnecock leader expects decision on tribe recognition

BY RICK BRAND rick.brand@newsday.com

A Shinnecock tribal leader said Friday he expects a preliminary decision on federal recognition of the tribe by Nov. 10, a ruling that if favorable, could open the door to Long Island's first American Indian casino.

Lance Gumbs, a tribal trustee, said he also is optimistic that a final ruling could be done by May or July of 2010.

Nedra Darling, a spokeswoman for the Bureau of Indian Affairs in Washington, confirmed the November date for a preliminary decision, but could not say when a final ruling would be made. She also said she could not assess the tribe's chances for approval.

Gumbs disclosed his timetable at the first meeting of Suffolk County's new Gaming Task Force, which is aimed at helping the tribe find a casino site. The tribe and the county both are eager for the revenue and economic development it could bring.

The Shinnecocks have said they want to build a casino-hotel-entertainment complex, which would be akin to the Mohegan Sun in Connecticut, and are looking for a site off the reservation to avoid problems like traffic.

Gumbs said he has been in talks with the Interior Department to settle the tribe's five lawsuits that would end 31 years of delays and regain the federal recognition the tribe had until the 1950s.

"Once we have that final determination, then the door is open and we intend to go through it at 100 mph," Gumbs said.

He said he was optimistic about the outcome because of recent discussions with new White House staff, the presidential transition team and new interior officials since January.

Still, the odds have not favored the more than 332 tribes that have sought recognition since 1978. Bureau officials said 66 won the status, 28 were denied and the rest are pending.

Ray Donnelly, chairman of the task force, said the group will develop a profile by fall of what any potential casino site would need. He said a request for proposals would be asked of developers and property owners who have sites to offer.

Former Ilitch partner bids to takeover troubled Detroit Casino

3.27.09

Tom Celani makes bid for Greektown Casino

By Nancy Kaffer

Longtime Detroit casino advocate Tom Celani said he’s making a bid for the troubled Greektown Casino. Celani owns a host of business ventures including Luna Entertainment in Novi, Farmington Hills-based Motor City Harley-Davidson and Napa Valley, Calif.-based Celani Family Vineyards.

He was instrumental in financing a 1996 statewide ballot referendum that approved gaming in Michigan, according to a 2007 Crain’s profile of Celani, and once was a partner in MotorCity Casino L.L.C., selling his share to current owner Marian Ilitch in 2005.

Greektown Casino entered Chapter 11 bankruptcy in 2008, but Celani said he believes the casino can emerge profitably.

“With the right people in place, absolutely,” he said. “But you’ve got to put the right people in place. The best option would be someone like myself that lives here and has a passion for gaming.”

The Greektown offer is a joint venture between Celani and Greenwich, Conn.-based Plainfield Asset Management L.L.C., Celani said, as LPF Holdings. Celani says he is competing against other bidders in the process.

To renovate or abandon historic Joe Louis Arena

Originally published 3.22.09 as a sidebar to comprehensive coverage surrounding a Crain's Detroit Business story, "Where will Wings roost? Joe Louis Arena lease nears end:"

RENOVATE OR MOVE?

• Speculation on a site for a new arena include property west of Woodward Avenue behind the Ilitch-owned Fox Theatre, where the family already owns land; along Temple Street between the Ilitch-owned MotorCity Casino and the Ilitch-operated Masonic Temple; and the triangular site between Grand River, Cass Avenue and south of I-75.


• A new stadium could cost $200 million-$300 million.


• Renovating Joe Louis reportedly could cost $180 million or more.

Highlights of current Ilitch hockey arena lease

Originally published 3.22.09 as a sidebar to comprehensive coverage surrounding a Crain's Detroit Business story, "Where will Wings roost? Joe Louis Arena lease nears end:"

THE JOE LOUIS LEASE

The Ilitch family’s lease for its Red Wings to play at Joe Louis Arena is part of the Cobo Arena master lease. The deal includes:

• The city provides free police and landscaping services, including snow removal, for both the Joe Louis Arena and Cobo Arena, and up to $500,000 annually for capital improvements for the hockey venue.


• The Ilitches pay property taxes on city-owned Joe Louis, but they are capped at $252,000 annually. Without the cap, the tax would be about $1 million.


• The Ilitches pay $25,000 monthly rent for Joe Louis and $12,500 for Cobo.


• Detroit collects a 10 percent ticket tax for Joe Louis events and a 7.5 percent ticket tax for Cobo events. The city collects a surcharge of 10 percent on concessions and 7 percent on suite sales.


• If the lease is renewed, the city immediately loses the ticket taxes and in five years loses the surcharge on concessions and suites.


• A new arena would mean the city could charge for police and snow services and collect full property taxes on the venue. The city also could lose its ticket, concession and suites surcharges. All this depends, of course, on a new lease or stadium deal, its financing and who owns the new venue.

Latest comprehensive update on Ilitch hockey arena saga

3.22.09

Where will Wings roost? Joe Louis Arena lease nears end
Cobo expansion complicates plans for Joe Louis

By Bill Shea

Mike Ilitch has until June 30 to say if he’ll modernize The Joe or build a new facility.

The ongoing saga of whether to renovate the Joe Louis Arena or build a new home elsewhere in the city for the Detroit Red Wings has entered its version of hockey's third period — and the team owner can force overtime by negotiating an extension on a lease with the city.

Mike Ilitch, the team's owner since 1982, has until June 30 to tell Detroit if he will modernize the 30-year-old, city-owned arena or construct a new venue that likely would cost $200 million to $300 million.

Talks have been ongoing for several years between the Ilitch organization and the quasi-public Detroit Economic Growth Corp.

Even with the clock ticking, no offers are on the table, those involved say.

Adding spice to the drama... (Original Story & extras)

Leaders of tribes that have pursued Barstow casinos meet for first time

3.18.09

Tribal leaders meet to clear the air over Barstow casino projects

By ABBY SEWELL, staff writer

BARSTOW • The leaders of two Indian tribes that have proposed to build two separate off-reservation casinos in Barstow sat down together for the first time in Barstow last week.

At the urging of Barstow’s Mayor Joe Gomez, Chemehuevi tribal Chairman Charles Wood and Spokeswoman Francine Kupsch with the Los Coyotes Band of Cahuilla and Cupeno met March 10 at Quigley’s Restaurant in an attempt to clear the air between their tribes.

In the past, there had been tension between the proponents of the two casino projects, particularly over Measure H, a ballot measure voted down by Barstow voters in 2006, which would have created a casino zone encompassing the area where the Chemehuevi planned to build their casino but not the site of the Los Coyotes project.

The March 10 meeting was the first formal meeting that had ever taken place between the leaders of the tribes.

“I think the meeting went very well, and it was long overdue,” Wood said.

He said he would anticipate future meetings between the tribes. Although he and Kupsch agreed to work cooperatively in the future, Wood said he does not anticipate the tribes forming a joint venture on the casino project.

Kupsch said that after discussing the histories of their respective tribes and the struggles they had faced in the past, the leaders had a better understanding of each other’s situations. The possibility of forming a joint venture did not come up during the meeting, she said.

Gomez said he asked the tribal leaders about a month ago if they would be willing to meet, in hopes that they could find ways to support — or at least not interfere with — each other.

“I think it should have been done a long time ago,” he said. “I think we would have had a better opportunity to get a casino if they had met from the very beginning and got their input from the very beginning.”

Gomez said that he and the two leaders took part on their own time and at their own expense and that after introducing the tribal leaders and making sure they felt comfortable together, he left the meeting.

Both tribes previously applied to the U.S. Department of the Interior to have land in Barstow held in federal trust to be used for off-reservation gaming. The Department of the Interior rejected both applications in January 2008 because of new federal standards requiring off-reservation Indian casinos to be within commuting distance of the reservation. Only the Los Coyotes have so far filed an amended application.

Contact the writer:
(760) 256-4123 or asewell@desertdispatch.com

Herb Strather Defaults on Detroit's St. Regis Hotel Project

3.18.09

Wall Street Journal
Real Estate Deal of the Week

In Motown, a Hotel Project Hits a Sour Note


Few cities have been hit harder by the recession than Detroit, and few property types have suffered more than hotels.


So the odds were stacked against an effort to revive the city's Hotel St. Regis by a group of investors, some with ties to Motown's recording industry. Indeed, that effort has fizzled.


The group, led by Detroit entrepreneur Herb Strather, defaulted on its $8.7 million construction-and-mortgage loan made by Chicago-based ShoreBank, which provides loans in inner cities and underserved communities. The 124-room hotel has received shutoff notices from utilities, has failed to pay taxes and insurance and has missed some ...

Expert says casinos won't help Detroit's convention prospects

2.09.09

Detroit: The odds are long



Las Vegas might have gaming to thank for at least getting it started down the road to its exalted tradeshow status. So shouldn’t the same strategy work elsewhere? Apparently, it hasn’t been enough for hard-hit Detroit, which boasts three casinos.

According to William Thompson, a professor of public administration at the University of Nevada Las Vegas, Detroit has a fine convention facility in Cobo Center, “but casinos won’t help.”

Thompson added, “There isn’t much in Detroit in the way of nightclubs and restaurants, its image is bad and its hotels aren’t inexpensive.”

David Austin, director of sales and marketing at Cobo Center, agreed that negative perceptions are a continuous struggle and Chris Baum, Detroit Metro Convention & Visitors Bureau senior vice president of sales and marketing, acknowledged that Detroit isn’t many planners’ first choice. However, convention business that was booked years before the recession will tide the city over, he added.

Still, corporate meeting business is “horrible,” Baum said, which is why, although the CVB’s marketing department has experienced some staff attrition and may send three people, instead of four, to industry tradeshows, “we’re still marketing very aggressively.”

Austin said the CVB has done a great job letting people know that this isn’t the same old Detroit.

“I grew up here,” Austin added. “When I returned in 2003 after 17 years, a change had truly occurred, and today Detroit is being transformed. Invariably, when meeting planners visit for the first time, the positive comments are, 'I didn’t know Detroit was like this,’ or, 'This is not what I was expecting.’ So, if we can overcome this perception issue, we certainly can beat this economic downturn.”

Michigan only has three non-Indian gaming licenses, all in Detroit. Even so, Thompson said it is hard to see how the presence of the MGM Grand Detroit, MotorCity Casino Hotel or Greektown Casino have stimulated the tourism or tradeshow business. Most casino visitors come from within 50 miles of the city; otherwise, the state has 20 Indian-owned casinos to satisfy gamblers, he added.

Each of the Detroit casinos has a hotel with about 400 rooms, but they haven’t been much help drawing convention or tradeshow attendees to town, Thompson said.

“The casino hotels are small and not luxurious,” he added.

Nevertheless, Austin said there hasn’t been much of a downturn in Cobo tradeshows.

“We have a decent 2009 lined up and 2010 is shaping up as the best year at Cobo since 2003, but, obviously, with the automotive industry taking a huge hit, everybody is tightening their belts,” he said.

Austin noted that 2006 union work rule changes at Cobo now allow exhibitors and show management to do more of their own work, and recent legislation will create an authority to operate Cobo, as well as generate funds for a renovation and expansion.

Chris McClain, director of the MGM Grand Detroit, which opened in October 2007, said he is encouraged by the city’s potential for conventions and meetings. “We have remained steady in comparison with 2008 and our 2009 projections,” McClain added.

–Gary Tufel

BusinessWeek: Detroit Tigers, Inc. like CCM Merger is a subsidiary of Ilitch Holdings, Inc.

BusinessWeek's profile of Detroit Tigers, Inc.:

Detroit Tigers, Inc. offers sports and entertainment services. The company manages a professional baseball team that participates in Major League Baseball. Additionally, it auctions game memorabilia and markets match tickets, sports merchandise, apparels, and accessories through its Website. The company was formed in 1901 and is based in Detroit, Michigan. Detroit Tigers, Inc. operates as a subsidiary of Ilitch Holdings Inc.

BusinessWeek's profile of CCM Merger, Inc. (parent of Detroit Entertainment LLC which does business as MotorCity Casino) indicates it too is a subsidiary of Ilitch Holdings, Inc.


John M. Kotlar, VP of Tax Affairs at Ilitch Holdings is Resident Agent for Ilitch Holdings, Inc., CCM Merger, Inc. and Detroit Tigers, Inc.



Mich.gov: CCM Merger, Inc.; Detroit Entertainment, LLC; Ilitch Holdings, Inc.; Detroit Tigers, Inc.

BusinessWeek: Ilitch Holdings, Inc.

BusinessWeek's profile of Ilitch Holdings, Inc.:

Ilitch Holdings, Inc., through its subsidiaries, engages in sports, entertainment, food distribution, and real estate development businesses in the United States and internationally. The company owns and operates Detroit Tigers baseball team and Detroit Red Wing hockey team, as well as provides sports premiere franchises. It also owns and operates carryout pizza chain and restaurants; theatres that provides performances, concerts, broadway shows, classic movies, and family entertainment; and a hamburger and malt shop, which offers hamburgers, hand-dipped shakes and malts, American fries, sandwiches, flavored soda pop, and baked apple pies. The company also owns and operates a sports bar; and a gift shop that offers various gifts, including furniture, pottery, crystal, china, jewelry, frames, and children's toys and clothes, as well as engages in booking and operating arenas and comerica parks. In addition, it offers a fundraising program for schools, churches, sports teams, and various nonprofit organizations; and engages in the real estate development activities. Further, the company operates as a foodservice distributor and restaurant equipment provider; and manufactures private label and branded food products, including packaged retail pizza, par-baked pizza crusts, and tubs of cookie dough products for foodservice distributors, restaurant chains, industrial toppers, schools, universities, and supermarkets. Ilitch Holdings, Inc. was founded in 1999 and is based in Detroit, Michigan with distribution centers in the United States and Canada.

In a separate BusinessWeek profile, CCM Merger, Inc. (parent of Detroit Entertainment LLC which does business as MotorCity Casino) is reported as a subsidiary of Ilitch Holdings, Inc.

BusinessWeek also reports Detroit Tigers, Inc. is as a subsidiary of Ilitch Holdings, Inc.


Mich.gov: CCM Merger, Inc.; Detroit Entertainment, LLC; Ilitch Holdings, Inc.; Detroit Tigers, Inc.