MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

May 9, 2007 

Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mr. Edward Deeb, Vice Chairman, on this date, beginning at 1:35 PM, in the Administration Building, Conference Room, at the Michigan State Fairgrounds, 1120 W. State Fair Avenue, in Detroit.    

PRESENT: Edward Deeb, President & CEO of MI Food & Beverage Association                                                                       

Mark T. Gaffney, President Michigan AFL/CIO (via teleconference)

Kenneth J. DeCock, Partner of DeCock and Sons LLC/Boyka's Farm Market

Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

Robert G. Porter, Mayor of the City of Ferndale

Pat G. Albright, Owner of Albright Farms

Monique Field, Representing Lisa Webb Sharp, DMB Director

Jeff Haarer, Representing Mitch Irwin, Director of MDA

Steven R. Jenkins, MSF General Manager 

ABSENT:   Thomas G. Coon, Ph.D., Professor and Director of MSU Extension 

Also Present:   Byna Camden and Scott Bradford, ICARE and local resident

Santiago Esparza, Detroit News

Johnnie Bennett, MSF Secretary

ACCEPTANCE OF AGENDA and APPROVAL OF MINUTES

ON MOTION BY Mr. DeCock, supported by Mayor Porter, and carried, the agenda for today's meeting was accepted and the minutes of the meeting held on April 19, 2007 were reviewed and approved as written.  The motion passed unanimously.  

VICE CHAIRMAN'S COMMENTS

Vice Chairman Deeb welcomed everyone to today's meeting of the Board and he asked that everyone present would take a moment for brief introductions as we prepare to begin today's meeting of the Board.  He then turned the meeting over to the General Manager.

MANAGER'S REPORT

G.M. UPDATE- Mr. Jenkins stated that the most significant portion of his report today is that he met last week with the Department of Management and Budget (DMB) and we have now been given the official word that we should move forward with preparations for the 2007 State Fair.   Mr. Jenkins stated because of the State's present financial situation, there have been some questions and concerns as it relates to the State Fair.  He added that while we still have to go through getting approvals for expenditure of funds and entering into contracts, DMB has indicated they would help us expedite those requests and act upon them just as soon as they receive them.  Mr. Jenkins stated the help of DMB is greatly appreciated and it is so significant because not only are they responsible for all exceptions for the State Fair and for their own department, but they are also given the responsibility of approving all exceptions throughout the entire State of Michigan.  Mr. Jenkins thanked DMB again for their willingness to assist us in moving the Fair forward. 

Mr. Jenkins reported the Fairgrounds were recently used for filming segments of the movie "Semi-Pro", a comedy and fictional tale set around the final days of the American Basketball Association.  Semi-Pro is scheduled to come out in February 2008 and will feature Will Ferrell as Jackie Moon, the owner-coach-player of Michigan's Flint "Tropics".  Woody Harrelson, the team' s star player and Andre` "3000" Benjamin will also appear in the movie.  Mr. Jenkins stated the filming of Semi-Pro at the Fairgrounds was significant because we were able to garner rental fees from them.  He added because their reception here was so well received, they have indicated they would like to come back again in the future and shoot more movies at the Fairgrounds, when the opportunity avails for filming in Michigan.  Mr. Jenkins stated the State Fair Coliseum and the Administration Building were both filmed in the movie.  He noted the Coliseum was refaced to look like the Flint Fairgrounds Coliseum and the front of our Administration Building was re-designed to appear as the headquarters of an investment firm company owned by one of the basketball team owners.  Also there were many 1970's vehicles driving around the Fairgrounds emulating people coming and leaving the basketball game.  Mr. Jenkins stated that while some concerns were created as a result of the filming which literally took over much of the Fairgrounds, our current tenants were given information in a timely manner and were made aware of the various activities going on at the Fairgrounds.  Mr. Jenkins stated that especially from the financial side of things, the filming of Semi-Pro at the Fairgrounds was a very positive experience.    

*AS AMENDED AT THE BOARD MEETING OF JUNE 13, 2007:  

The Children's Aid Society will hold a race during the 2007 State Fair.  Mr. Jenkins stated his initial concerns related to safety issues, have all been resolved.  The race would be held early Sunday morning, before the Fair opens, on August 26, 2007.  The Children's Aid Society has agreed to use the "B" Lot to park their vehicles and while they originally wanted free parking, they have now agreed to pay for the parking.  The Fair has agreed to provide free admission to all of the participators of the race at the conclusion of their run and those who come to watch and support the racers will be offered a discounted admission ticket to the Fair.  Mr. Jenkins explained that after parking in the "B" Lot, the racers will then come over to the Administration Building area for registration and then they will either begin the race from the Administration parking lot or they will go out onto State Fair Avenue to start.   The race will then take the runners througho ut the local community and will conclude just before the Fair opens at 10:00 a.m. with the runners returning to the Fairgrounds through the exit side of the Woodward Avenue Parking Lot.  Mr. Jenkins stated he is hopeful this event will turn into be a positive benefit for both parties and it may also provide us with some additional Fair attendance and exposure that we may not have had otherwise.    

FINANCIAL REPORT:

Mr. Jenkins thanked DMB staff members and Peggy Fletcher (MSF), for all of their help and har d work in preparing today's financial report and documents, which he then shared with the Board members.  Mr. Jenkins distributed the first document which highlighted a comparison on a year-to-date basis of what the Fair spent and revenue brought in last year at this time verses the same information for this year.  The second document distributed was a detailed budget report that offered information as it relates to the various monies spent and brought in by the Fair in fiscal year 06` and the projected revenue for fiscal year 07`.    

A lengthy discussion was held regarding the details of the financial reports distributed at today's meeting.        

ON MOTION BY Mayor Porter, supported by Mr. DeCock, and carried, the financial report offered by Mr. Jenkins was accepted and well received.    

Mr. Jenkins recommended to the Board that we should consider increasing our parking fees.  After a considerable discussion took place, it was decided that the general parking fee for all events at the State Fairgrounds should be increased.  It was noted that the parking fee for the Fair has been $5.00 for at least the last ten years.    

ON MOTION BY Mayor Porter, supported by Mrs. Driker, and carried, the general admission parking fee was increased by $2.00 making the new parking fee $7.00 per vehicle for the annual State Fair as well as all future year-round non-Fair events.  The motion to increase the parking fee at the Fairgrounds from $5.00 to $7.00 was unanimously passed. 

Mr. Jenkins reported the Berline Group is again the official contracted advertising firm for the 2007 State Fair.  He added the Detroit News has agreed to list us on their calendar of events web page and also WJR-Talk Radio has our current list of events posted on their website.  The State Fair is also featured on Travel Michigan's website and Fox 2 has agreed to put us on their website.  We will also be featured in the advertisement for the Children's Aid Society Charity Run and Mr. Jenkins agreed to talk to Heather Carmona of Woodward Avenue Action Association to see about having us listed in their 200th Celebration of Woodward Avenue promotional materials.  Mr. Jenkins stated that it is our goal to anchor activities and partnerships with as many venues as possible with the hope that this will bring in additional revenue, more fairgoers, and greater exposure for the Fair.  A discussion took place regarding having a demographic study and survey done to collect data from fairgoers as to how they find out about our annual Fair.  Ms. Driker stated that she has put Roger Chapman, DESC consultant, in touch with two different resources at Wayne State University.  Mr. Chapman will work with the WSU survey research department and their Honors program to possibly work out the financial details for having their survey research unit put together the instrument, analyze the data received and train the students to collect the information.  Ms. Driker stated the students would be at the Fair for nothing more than a fun day at the Fair and to conduct the survey.   Mr. Jenkins stated that he would be meeting with the DESC this Friday to further pursue these efforts. 

PRESENTATION BY POTENTIAL PARTNER: Mr. Jenkins introduced Ms. Cynthia Ross and Ron Salley, who gave a very detailed presentation and overview of a proposal for a long-term lease agreement to create a family youth recreation center at the Fairgrounds.  Mr. Salley's proposal would allow for a 100-lane bowling alley and interactive entertainment venue to be constructed on 12 to 16 acres of Fair land.  Mr. Salley shared with the Board his plans for a family-oriented, educational, recreational project that would compliment what the Fair already has in place as it relates to sports entertainment.  Mr. Salley stated that he would like to begin breaking ground in the fall of 2007 and he believes the recreational facility could be constructed in twelve months, if the Board agrees to accept his proposal and enter into a lease arrangement with his organization.  Mr. Jenkins stated that he had previously met with Mr. Salley and was given a general overview of what was being proposed.  Mr. Jenkins stated that while he does believe the concept of the entertainment center fits in with what we already have in place, he stated he was not given any financial information as it relates to the project.  Mr. Salley shared briefly his business background and how he came to present this concept to the Fairgrounds, he then thanked the Board members for the opportunity to make his presentation before them today. 

Vice Chairman Deeb thanked Mr. Salley for his presentation today and stated the Board would certainly take all of his information into consideration and would be contacting him soon with their response to his proposal. 

OLD BUSINESS 

The D.E.S.C. held its second meeting with the Fair Authority Board.  Mr. Jenkins stated we are still looking for funding possibilities to cover the cost of this contractual arrangement.  Heather Carmona, Director of the Woodward Avenue Action Association and Paul Karr, President of the Friends of the Fair, have both expressed their willingness to assist us with this endeavor.  Mr. Jenkins stated he would attend next Tuesday's meeting of the Friends of Fair to ask for their assistance in this matter. The D.E.S.C. has made it clear they are eager to go forward with this project.  Funding for this $5,000 project will be pursued. 

Mr. Jenkins reported that discussions with Brian Siegel of the Fieldhouse L.L.C. are still underway and it is his hope that he will soon have a firm understanding of the financial agreement and contractual arrangement as it pertains to the Fieldhouse and the Fair.  Mr. Jenkins agreed that after a closer investigation and evaluation of the meters at the Fair, it is possible that we have been over-charging the Fieldhouse for their electrical service at the Fairgrounds.  A lengthy discussion took place regarding the contractual agreement with the Fieldhouse and a motion previously passed to have the Fair manager move forward with negotiations and discussions to work out the various details of their contract with the hopes of continuing our relationship and partnership with the Fieldhouse.  Mr. Jenkins stated he is continuing to meet with the Fieldhouse and work out the details that will allow us to come to a mutual understanding and agreement as to how we will go forward and continue our partnership.  Ms. Field stated that a new lease arrangement with Dumar's Fieldhouse is in place but has not yet been signed, therefore we are still working under the old lease.  Mr. Albright stated he is not in favor of signing a new contract with the Fieldhouse that may put us right back to this same position that we are in at this time.  Mr. Albright stated that there should be even greater clarifications made in the new contract and there should not be any room for assumptions.  Mayor Porter and other Board members all agreed that specific details and wording in the contract should be clearly spelled out with no assumptions before a new lease arrangement is signed.     

A lengthy discussion took place regarding what role the Board plays in negotiating contracts and lease arrangements for the Fair.  It was clearly agreed by all that the State Fair Authority Board would be included in lease discussions, contractual negotiations and potential partnering arrangements as they are presented to the Fair manager.   Ms. Field stated that often times Fair proposals have fallen through the cracks due to a lack of being able to provide the Fair Board and manager with proper proof of financial backing and verification of major corporations willing to support the project with a simple letter of financial intent.  A discussion took place regarding having potential partners provide upfront some "good faith" money or a completion bond for insurance that they will not dig a huge hole at the Fairgrounds and then leave us with the financial responsibility of filling it, should their project not be completed.  Mr. Deeb suggested developing a special form letter to send out to potential partners wishing to make proposals to the Fair Board and management.  The letter would put into place a detailed process showing the necessary steps to take before entering bringing proposals to the Fair Board.   Ms. Field agreed to look into model type letters of this sort, which could be reviewed by the Board. 

ON MOTION BY Mrs. Driker, supported by Mr. Albright, and carried, to express the Board's interested in moving forward with a good faith gesture to proceed in discussions with Mr. Salley.  The Board expressed their support of the concepts of the proposal to construct a family youth entertainment center at the Fairgrounds.  Mr. Jenkins stated he would go back and ask Mr. Salley to make available to the Board a letter of his financial intent along a list of financial supporters/references.  He will also ask for a site plan, detailing the layout of the structure he has proposed building and a description of the parking area intended for his project.  

The Motion passed to support the concept of Mr. Salley's proposal.  All members present voted in favor of the motion and there was one negative vote offered by Mr. DeCock.  Mr. DeCock stated that he voted no against this motion because he would like an opportunity to read through the package of information presented by Mr. Salley before voting to move forward in negotiations.   

NEW BUSINESS

Mr. Jenkins was happy to share information regarding a special "Flag Day" event to be held at the Fairgrounds on June 14, 2007 from 10:00 a.m. to Noon.  A personal invitation was prepared for the Board members and was distributed to the Board members at the conclusion of today's meeting.  Mr. Jenkins encouraged the Board to come celebrate our first annual "Flag Day" event at the Fair.  Mr. Deeb stated Salvation Army held a Flag Day celebration last year and it turned out to be a really wonderful event.  He then offered his help and assistance in putting together this special event at the Fairgrounds. 

PUBLIC COMMENT

Mr. Jenkins thanked Byna Camden for all of her enthusiasm and support for the Fair.  He stated that Ms. Camden is certainly "a mover and a shaker" and has offered to spearhead a special project as it relates to gardening and landscaping efforts for the beautification of our Michigan State Fair facility.  The Board joined Mr. Jenkins in thanking Ms. Camden for generously giving her time and support to the Fair.    

DATE for NEXT MEETING

The next meeting of the Michigan State Fair Authority Board was scheduled for Wednesday, June 13, 2007 beginning at 1:30 p.m. (following the D.E.S.C. session to be held from 11:00a to 1:00 p.m.)in the Administration Building, Conference Room, at the Michigan State Fairgrounds, in Detroit.    

Please note - The D.E.S.C. and the Authority Board sub-committee will again meet on Thursday, May 24, 2007, beginning at 11:00 a.m.  

ADJOURNMENT

On Motion by Mr. DeCock, supported by Mayor Porter, and carried, the meeting was adjourned at 3:10 p.m.