MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

April 19, 2007

Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mr. Mark T. Gaffney, on this date, beginning at 4:20 PM, in the Community Arts, Exhibit Hall, at the Michigan State Fairgrounds, 1120 W. State Fair Avenue, in Detroit.

PRESENT:  Mark T. Gaffney, President Michigan AFL/CIO

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

Kenneth J. DeCock, Partner of DeCock & 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

Jeff Haarer, Representing Mitch Irwin, Director of MDA

Steven R. Jenkins, newly appointed MSF General Manager

ABSENT: Edward Deeb, President & CEO of MI Food & Beverage Assoc.

          DMB Director's Office

Also Present: E.J. Brown, Executive Director of M.A.F.E.

Byna Camden and Scott Bradford, ICARE and local resident

John Wiktor, D.E.S.C. (Detroit Executive Service Corps)

Johnnie Bennett, MSF Secretary

ACCEPTANCE OF AGENDA and APPROVAL OF MINUTES

ON MOTION BY Mrs. Driker, supported by Mr. Coon, and carried, the agenda for today's meeting was accepted and the minutes of the meeting held on March 14, 2007 were reviewed and approved with the following correction:

On page six (6), in the top paragraph, Chairman Gaffney noted that the word "alternative" should be removed from in front of his name, as he will be serving on the sub-committee with the MSF Board to meet with the D.E.S.C. on the five-year strategic plan for the Fair. The list of sub-committee members was reviewed and approved as noted with Mr. Gaffney, Mr. Coon, Mr. DeCock and Mayor Porter all serving as sub-committee members, with Mr. Albright and Mrs. Driker filling in as alternatives for representatives who are unable to attend one of the scheduled sessions with D.E.S.C.

The minutes passed unanimously with the above correction being made.

CHAIRMAN'S COMMENTS

Chairman Gaffney welcomed all to today's meeting of the Board and he thanked everyone in advance for their participation in the meeting with the local neighborhood advisory group, which would begin immediately following today's Board of Directors meeting at 5:30 p.m.

Chairman Gaffney stated that the Board is still interested and supportive of the efforts to bring in an additional staff person to help with marketing the Fair and raising scholarship funds. He stated that he had been in touch with the Governor's appointments' office and they have chosen a consultant, Colleen Polbur, to come in and help us. Ms. Polbur is from the Governor's Wayne County operations division and she was very instrumental during the Governor's last election. Polbur handled the contractual details for the shops that opened at the new airport terminal. Mayor Porter offered the name of a person who may also be interesting in working with us on fund development projects if Ms. Polbur is not brought in.

Mr. Jenkins reported that last year the Fair raised $565,000 in sponsorship dollars. This year our goal is $750,000. Mr. Jenkins stated that we are currently at $425,000 in sponsorship dollars. Chairman Gaffney stated that the Governor's appointments office is working on the details as it relates to hiring Colleen Polbur and who will pay for her services to the Fair or can her contract be written as a gift to the Fair. A discussion was held regarding the possibility of having the Friends of the Fair, a non-profit 501c3 organization, pay for special service contracts such as Colleen Polbur or the D.E.S.C. services. Mr. Jenkins agreed to approach the Friends of the Fair for possible assistance and help.

D.E.S.C. Report: Chairman Gaffney reported on the first meeting held with D.E.S.C. (Detroit Executive Service Corps) and the State Fair Authority Board sub-committee on April 5th. Chairman Gaffney stated that the meeting went very well. He added that many of the thoughts and ideas shared at the meeting conveyed the strong message that besides the two-week annual Fair, the Fairgrounds should really look and act much like it does during the annual State Fair with 50 weeks of family fun, youth activities, agriculture, sports and a variety of exciting events. Chairman Gaffney and Mr. Jenkins both stressed that in order for the Fair to be successful we must pursue new partnership agreements, bring in additional sponsorship dollars and seek more year round events and activities for the Fairgrounds. Mr. Gaffney asked that the Board would share any comments or suggestions they had, at this time, as it relates to the proposed State Fair Mission Statements submitted by various Board members. D.E.S.C. instructed the Authority Board sub-committee to draft a Mission Statement for the Fair after their first strategic planning session.

A discussion was held regarding the drafted State Fair Mission Statements. The Board members shared their thoughts and comments regarding what the Mission Statement should and could include.

Mr. Albright stated that there is a basis for the Fair and it should be to bring together the rural and urban communities. He added that one of the centerpieces of the Fair is the livestock exhibits and the Miracle of Life Birthing exhibit. Mr. Albright stated that the key in the statement should be the basis and the rock on which the Fair moves forward.

Mrs. Driker questioned whether or not the Board should think about possibly creating two Mission Statements? Mr. Jenkins stated he thought this was a very good question and that the Board may want to consider exploring the possibility of having double Mission Statements, one for the two-week annual Fair and then a second statement which would concentrate on what we want the Fairgrounds to look like. Mrs. Driker stated that she would like the statement to also include a statement that precludes auto racing and racing activities at the Fairgrounds.

The Board all agreed that in writing the Mission Statement it should be a balanced thought that we have a Fair and Fairgrounds and both of these areas should be included in the statement. It was agreed that the urban and rural connection should be highlighted in the statement and also a historical thought could be included.

Chairman Gaffney invited all of the Board members to email any suggestions or ideas they may have as it relates to the Mission Statement to Mr. Jenkins @

jenkinss@michigan.gov

before the next meeting of the Executive group on May 9, 2007. It was noted that Chairman Gaffney offered to sponsor lunch for May meeting of the Board and the D.E.S.C. The meeting will be held from 11:00 a.m. to approximately 1:30 p.m. and will be followed by the regular meeting of the State Fair Authority Board.

MANAGER'S REPORT

Mr. Jenkins apologized for not signing the D.E.S.C. contract for the strategic plan efforts when he first became General Manager of the Michigan State Fair. Unfortunately, since the State has established limitations on service contracts, we are now exploring other funding options with Heather Carmona of the Woodward Avenue Action Association, Friends of the Fair and a person who has been suggested by Tami Salisbury. He added that we are all set to move ahead with our next scheduled D.E.S.C. planning session with the understanding that financial resources will be made available to pay them for their services as accepted and agreed upon by the Board.

Mr. Jenkins stated it was fortunate for him that he was at the Fair before, so he does have some understanding of what happens here. He stated that his first four weeks at the Fair has been a world wind of activities and meetings with many different groups as it concerns the annual State Fair and non-fair events to take place year round.

At the request of Mr. Albright, Mr. Jenkins promised to provide the Board with a budget and financial report to help chart where we are financially at this time and how much allowance do we have for spending on various items. The report will include a year to date financial report with line-by-line items to show where we are today compared to last year. Mr. Albright stated that it is the function, position and desire of the Board to assist and help the Fair Manager in every area as it relates to the future success and development of the Fairgrounds.

Mr. Jenkins gave a brief review of some of the cuts that have already taken place; maintenance has been reduced, service contracts have been reduced by 5%, the number of security guards we use throughout the week has also been reduced. Mr. Jenkins stated that the most difficult cut that has been made is the abolishment of the Assistant General Manager's position at the Fair. He stated that Tim Jenkins, MSF Assistant GM, is the next highest paid position at the Fair and it was very difficult to make this cut but that it had to happen. Mr. Jenkins stated Tim's last day at the Fair will be May 19, 2007.

Mr. Jenkins stated that last year the Fair spent $26,000 to rent golf carts for the two-week run of the Fair. He stated that after speaking with the Fair staff, it has been decided that the Fair does not need to rent as many golf carts for the Fair, as many of the staff members have stated that they only drive on the carts for a very minimum amount of time throughout each day. Mr. Jenkins stated that we may be able to contract with a company to bring in a limited number of carts at $10,000.

Mr. Jenkins reported that he has met with WJR Radio and Fox 2 TV regarding them returning to be our official sponsors for the 2007 State Fair. Both have agreed to return. He added that he will be meeting soon with Detroit News Nolan Finley and Keith Crain of Crains Detroit Business magazine as they have business partners who may be of assistance to us and help to raise additional sponsorship dollars for the Fair. Mr. Jenkins stated that he has also met with Michigan Farm Bureau and the people from the Miracle of Life Birthing exhibit and auction group. He added that he has also met with Pepsi and they have agreed to return and sponsor the Fair. A signed contractual agreement with Pepsi has not happened yet, but the attorney general's office and DMB will work with us to have one in place for the upcoming Fair. Mr. Jenkins stated that Pepsi raised a question regarding how much they give us in comparison to what our attendance is and how much they are actually getting for their sponsorship contribution. Mr. Jenkins stated his discussions with Pepsi included comments made about the fact that there should be some sort of a threshhold or bench mark level for sponsorship agreements. Mr. Jenkins stated that he would be meeting again with Pepsi to go over their sponsorship arrangement with the State Fair.

A lengthy discussion took place regarding the lease arrangement with Joe Dumar's Fieldhouse LLC.

OLD BUSINESS

Mr. Jenkins stated that he recently met with Bernie Schrott, Shoppes at Gateway Park, primarily to discuss the possibility of them partnering with us in a joint advertisement effort to make usage of the huge electrical sign that sits on their property. Mr. Jenkins stated that today the sign is not up and running but he believes it would be a significant advertising tool that could benefit all parties if we were to work out the details of a partnership. Mr. Schrott stated that he would get back with us regarding this matter.

Mr. Jenkins reported that we are still waiting for feedback from a company regarding putting a new roof on the Volunteer Headquarters building at no charge to us. He added that unless some significant investment is put into the building, we may still have to demolish the White Hall building. The White Hall building will not be used during the 2007 Fair.

Mr. Jenkins reported the one-year plan is all set and has been sent off to the Governor's office.

NEW BUSINESS

Mr. Jenkins announced he has been working on the details for a new event, which would be held at the Fairgrounds this summer. Mr. Jenkins was happy to report Pegasus will be donating all of the production (a $15,000 value) for the Fairs first annual "Flag Day" celebration to be held on June 14th. A significant number of guests are invited to fill the Band Shell arena and Mr. Jenkins stated that as many people who are in the military and/or veterans of the military and their family and friends are being invited to join us for this special celebration. He added that schools are also being invited to participate in civic lessons and activities during our first annual Flay Day celebration when we will come together, celebrate the flag and thank the patriots who have allowed us to continue to have the freedom to celebrate our Flag.

Mrs. Driker stated that since the fairgrounds land was donated by the J.L. Hudson family and since the world's largest flag was once hung and displayed on the front of the J.L. Hudson store building every year for Flag Day before the building was eventually demolished, she stated that we might consider contacting someone who may be able to help us locate the huge flag and bring it back for our Flag Celebration Day. Mrs. Driker suggested contacting the Henry Ford Museum regarding the flag and she also offered to contact Joe Hudson Jr. if it would help. Mr. Jenkins stated that we presently have a 30x50 foot flag that has been donated and Mayor Porter has been working also to bring in a live band to perform at the event. Mr. Jenkins stated that he would make sure all of the Board members received an invitation to attend the First Annual Flag Day Celebration and also he would forward a copy of the press release to them once it goes out officially.

Mr. Jenkins stated the Children's Aid Society has contacted him regarding hosting a special charity race at the fairgrounds one day in August during the 2007 State Fair. They would like to start the race early in the morning from our Band Shell arena and then walk throughout the surrounding neighborhood and conclude the race back at the Fairgrounds just before the Fair opens at 10 a.m. Mr. Jenkins stated that he has some concerns as it relates to safety issues on the grounds. He explained that often times we have utility and supply vehicles moving throughout the fairgrounds each morning before the Fair opens and with an anticipated number of over a thousand people participating in the race, we need to consider all of the safety factors. Mr. Jenkins stated the group has asked for free parking and possibly a donation of admission passes for the runners who all or most would stay and attend the Fair at the conclusion of the race.

A discussion was held regarding the details that would be involved in hosting and advertising such an event at the Fairgrounds. Mr. Jenkins stated that we have to be especially careful about allowing various non-profit groups to hold and advertise events at the fairgrounds, as we can not be partial to one group and not another. It was stated that the Children's Aid Society has a nice list of sponsors i.e. Ford Motor Company promoting the event and it may be beneficial if we were to partner with them for this event. Discussions regarding hosting a charitable race at the 2007 Fair will be pursued.

Mr. Jenkins reported that he would be meeting next Monday with a gentleman who was referred to us by Mayor Porter regarding partnering with the Fair for a special event to take place in Ferndale this summer with approximately forty thousand participants.

Mr. Jenkins stated that he would bring to the next meeting of the Board some revenue questions as it relates to a few things that he has discussed with Chairman Gaffney but because of the time restraint, he will bring these items to the next meeting of the Board in May.

PUBLIC COMMENT

Byna Camden of ICARE stated while it would be nice to have the charity race at the Fair and help such a good cause; we still have to consider the financial struggles that we are faced with today and the need to increase our revenue at the Fair. She added that it would certainly be appropriate if we charged the group something. Whether we charge them a parking fee or admission to the Fair, Byna stated that the Fair should really collect something from this event.

DATE for NEXT MEETING

The next meeting of the Michigan State Fair Authority Board was scheduled for Wednesday, May 9, 2007 beginning at 1:30 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 meet on May 9th, beginning at 11:00 a.m. and the regular business meeting of the State Fair Authority will begin at 1:30.

Future meetings of the Michigan State Fair Authority Board of Directors are as follows:

Wednesday, June 13, 2007 @ 1:30 p.m. (The D.E.S.C. will meet from 11am to 1:00 with MSF Authority)

Wednesday, July 11, 2007 @ 1:30 p.m.

D.E.S.C. - The Detroit Executive Service Corps will meet with the State Fair Authority sub-committee on May 23rd and June 13th beginning at 11:00 a.m. and each session is expected to run until approximately 1:30 p.m.

ADJOURNMENT

The meeting was adjourned at 5:30 p.m.