MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

March 12, 2008

Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mr. Mark T. Gaffney, Chairman, on this date, beginning at 1:42 PM, in the Administration Building, Conference Room, at the MI State Fairgrounds in Detroit.

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

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

Robert G. Porter, Former Mayor of the City of Ferndale

Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

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

Robert Burns, Representing Lisa Webb Sharpe, Director of DMB

Jeff Haarer, Representing Don Koivisto, Director of MDA

Steven R. Jenkins, MSF General Manager

ABSENT: Pat G. Albright, Owner of Albright Farms

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

Also Present: Terri Fitzpatrick, Director of DMB Real Estate Division

Ron Salley, Salley's Alley

Johnnie Bennett, MSF Secretary

ACCEPTANCE OF AGENDA and APPROVAL OF MINUTES

ON MOTION BY Mr. Porter, supported by Mr. Burns, and carried, the agenda for today's Board meeting was accepted with the following items to be added: At the request of Chairman Gaffney, " Presentation by DMB" will be placed under the Chairman's Comment. Mrs. Driker asked to include "Public Meeting in May" under Old Business and at the request of Mr. DeCock, "Agenda Items" was added under New Business. The MOTION passed unanimously.

ON MOTION BY Mr. Burns, supported by Mr. Porter, and carried, the Minutes of the previous meeting held on February 13, 2008 were reviewed and approved with the following statement to be included: "Mr. DeCock discussed non-agenda items with the Board and expressed his concerns as it relates to items not being placed on the agenda at the time the agenda is mailed out to the Board. He stated he would prefer more time to discuss and review items to be voted upon." The MOTION to approve the Minutes was unanimously passed with the addition to be included just before "Public Comment".

CHAIRMAN'S COMMENTS

Chairman Gaffney stated today's Strategic Planning session was very productive. All of the Board members will be invited to participate in the final three Strategic Planning meetings. The DESC group agreed to send a page of information detailing items to be covered at the next three sessions. Chairman Gaffney thanked the Board members in advance for their support and efforts in finalizing the Strategic Plan for the MI State Fairgrounds.

Presentation by DMB

Terri Fitzpatrick, Director of DMB Real Estate Division, introduced herself to the Board and then shared background information as it relates to the functions and operations of the Real Estate Division.

DMB Real Estate Division administers all of the leases for all of the State agencies. They have 600 leases and eight million square feet of land, which also include areas surrounding many state prisons. Ms. Fitzpatrick stated the division follows a very strategic real estate plan as they continue to seek out locations for state operations with emphasis on reducing costs and creating efficiency.

Ms. Fitzpatrick shared the recommendation for the Fair property and its year round use. It was recommended that we do a pubic solicitation to see what interest there may be in part of the Fair property. Ms. Fitzpatrick detailed the process for developing the RFI (Request For Information) and the RFP (Request For Proposals). She stated that first an RFI would go out, we would summarize the information and discuss it with the various stakeholders and then the next step would be to send out the RFP. Ms. Fitzpatrick stated that before the requests are sent out to the public, an appointed person from the Fair Board would have an opportunity to review the information in the request.

Chairman Gaffney reviewed with the Board the recommended criteria that had been discussed at the Strategic Planning session. He highlighted the following points that would be given to DMB to be included in the RFI package: The RFI would clearly state that any proposal made by a respondent must adhere to the State Fair's Mission Statement. The arrangement would be for a land lease agreement and not a sale of property. A default consideration would be included to help move the development process along in a timely fashion. An offer highlighting the area of land along Eight Mile Road and the old Softball City location near the railroad tracks would be put out. Chairman Gaffney stated language would be included to say we are willing to lease all and/or a portion of the described property. He added we should remain flexible and open to various options. It was noted that the State would have the right to cancel or modify the process before a contract finalized. All proposals must be compatible with the State Fair operations and the surrounding lots and various areas of State Fair property must be made available for use during the Annual State Fair. DMB will investigate and then make the decision whether or not to include the 5 acres of land east of the railroad tracks.

ON MOTION BY Mr. Porter, supported by Mrs. Driker, and carried, the Board agreed to ask DMB to begin and initiate the process to consider and gauge the market with the recommendations and criteria noted today. The Motion passed unanimously.

GENERAL MANAGER'S REPORT

Recap Non - Fair activities

The Shrine Circus is scheduled to return April 10th - 13th, 2008. Tickets are now on sale through the Shrine Circus box office and at the State Fair Administration office. Mr. Jenkins invited the Board to contact the Fair office for circus show times and ticket information.

A series of concerts "Salute to the Super Stars" will be held in the J.L. Hudson, Community Arts Auditorium beginning March 29th, at 7:00 pm, with a special "Motown Comes Alive." Our second concert is scheduled for May 3rd, "The Pack is Back" tribute to Dean Martin, Sammy Davis Jr., and Frank Sinatra. Mr. Jenkins stated we are anticipating a few more of these special attractions throughout the year. He invited the Board to attend.

PVS Chemical will be hosting "You Be The Chemist" regional challenge and competition for Detroit Public Schools next Tuesday, March 18, 2008, in the auditorium. There will also be a host of events taking place on the Fairgrounds in conjunction with the City of Detroit's month of August auto events. Mr. Jenkins stated these activities would all take place prior to August 22nd, Opening Day of the Fair.

TODAY'S PRESS CONFERENCE - WAR MONUMENT

The Board was invited to attend the special Press Conference to be held in the J.L. Hudson Auditorium at 3:00 p.m. immediately following today's Board meeting. Mr. Jenkins stated the Press Conference today is primarily being held to announce our fundraising drive for the unveiling of a new Veteran 's War Monument at the corner of State Fair and Woodward Avenue at the 2009 Michigan State Fair. Mr. Jenkins reported the original monument was unveiled during the 1939 State Fair.

STAFF UPDATE

Mr. Jenkins was happy to report the Promotional Agent position has been filled and Lindsay Calcatera will begin working with the State Fair on Monday, April 7, 2008. Mr. Jenkins offered brief background information on Ms. Calcatera and stated how nice it will be to finally have someone in place to assist us in the areas of marketing and promotions, public relations and also identifying grants and securing funds for the Fair.

Mr. Jenkins reported the Departmental Analyst position was posted this week and this position will assist with the day-to-day Fair operations in specific areas such as purchasing and the Premium Program. Details to renew contracts with Rod Jordan and Pat Boyer are being reviewed. Mr. Jenkins stated he feels fairly confident that both will be brought back for the 2008 Fair. Mr. Jenkins shared information regarding Ms. Krissa Thoms, a young lady who will again join us to work with the Miracle of Life Birthing and the Agriculture Campus. Mr. Jenkins stated Dan Grooms worked with Ms. Thoms in the past and highly recommends bringing her back for the 2008 State Fair. Ms. Thoms is a MSU graduate and is presently working with an Agricultural company in Virginia. Mr. Jenkins was happy to report that the company that Ms. Thoms works for has also agreed to pick up the costs of Ms. Thoms work with us in August.

FINANCIAL REPORT

Mr. Jenkins stated the Financial Reports come out quarterly and that the next report would be issued on March 31, 2008. Mr. Jenkins will bring an update and assessment to the Board in April and at time the Board would review the information and make any recommendations or modifications to bring the budget in balance for the fiscal year.

OLD BUSINESS

Mr. DeCock requested to have Mr. Jenkins contact the City of Detroit Planning Division to find out information as it relates to the Gateway project at the southeast corner of Eight Mile and Woodward Avenue. Mr. DeCock stated he would like to know whether or not there has been approval for zoning, how far along they are with the project, and also if the Fair Board could be notified when the site plan reviews come up. Mr. Jenkins agreed to follow up on these matters. It was suggested that Heather Carmona, Woodward Avenue Action Association, be contacted to assist in obtaining this information.

Public Meeting in May

A discussion was held regarding the Neighborhood Advisory Meeting to be held in May.

ON MOTION BY Mrs. Driker, supported by Mr. Porter, and carried, the Neighborhood Advisory Meeting was scheduled for Wednesday, May 14, 2008, beginning at 5:30 p.m. following the Authority Board meeting at 3:00 p.m. It was agreed that Mr. Jenkins and Chairman Gaffney would discuss food arrangements for this special meeting in May. The Board agreed will forward any additional names and invitees to Johnnie. A very nice and fun invitation "flyer" would be created to mail out to an expanded group of neighbors and surrounding organizations.

NEW BUSINESS

Agenda Items - A lengthy discussion took place regarding Agenda Items. ON MOTION by Mr. DeCock, supported by Mr. Porter, to not take action on items that have not been placed on the Agenda at the time the Agenda is mailed out to the Board, but instead the Board would gather the information on the item, discuss and review the information and then take action on the item at the next meeting of the Board. Mr. DeCock again stated that he would prefer if the Board received more notice of items to be voted upon and given opportunity to review the information before action is taken. After a lengthy discussion, the Board agreed to continue this discussion at a later time and come back and visit this item as it relates to "actionable items" and the time allowed to review items of importance. The Motion did not pass. This discussion will be continued at a later meeting of the Board.

PUBLIC COMMENT

Elaine Driker requested and the Board agreed that visitors and public participants would be introduced at the beginning of each Board meeting.

Joellen Gilchrist representing S.M.A.R.T. (Southeast Michigan Animal Rights Team introduced herself and gave background information about herself, the S.M.A.R.T. organization and she explained why she had joined today's meeting of the Board. Ms. Gilchrist stated her group would like to educate the public and help others to become more knowledgeable and aware of the treatment of large animals, in particular the elephants, which perform with the circus. Ms. Gilchrist distributed information and 8-minute DVD's to the Board members and stated she may come back and join another meeting and ask to be included on the agenda. Chairman Gaffney thanked Ms. Gilchrist for the information and her participation in today's meeting of the Board.

DATE for NEXT MEETING OF THE BOARD

The Next Meeting of the Board was scheduled for Wednesday, April 9, 2008 beginning @ 1:30 p.m., MI State Fairgrounds, in Detroit.

Please Note: The D.E.S.C. Strategic Planning sessions will be held on the following dates/times: * Monday, March 31, 2008 @ 9:30 a.m., Wedneday, April 9, 2008 @ 11:00 a.m., and Monday, April 21, 2008 @ 9:30 a.m.

*All MSF Authority members are being asked to attend each of these three very informative Strategic Planning sessions.

ADJOURNMENT

The meeting was adjourned at 3:15 p.m.