AUTHORITY BOARD OF DIRECTORS MEETING

May 14, 2008

Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mrs. Elaine Driker, on this date, beginning at 3:20 PM, in the Administration Building, Conference Room, at the MI State Fairgrounds in Detroit.

PRESENT: Mark T. Gaffney, President Michigan AFL/CIO (arrived late)

Pat G. Albright, Owner of Albright Farms and MI Farm Bureau Board member

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

Reverend Loyce Lester, Representing the Business Community

Erwin "EJ" Brown, Executive Director MI Association of Fair & Expositions

Robert Burns, Representing Lisa Webb Sharpe, Director of DMB

Jeff Haarer, Representing Don Koivisto, Director of MDA

Steven R. Jenkins, MSF General Manager

ABSENT: Larry Alexander, President, Detroit Metro Visitors and Convention Bureau

Also Present: Byna Camden, ICARE and local resident of State Fair

Ron Salley, Salley's Alley

Margaret Fletcher, MSF Finances

Lindsay Calcatera , MSF Marketing Director

Jeff Hayton, MSF Business Manager

Johnnie Bennett, MSF Secretary

ACCEPTANCE OF AGENDA and APPROVAL OF MINUTES

ON MOTION BY Mr. Porter, supported by Mr. Coon, and carried, the agenda for today's Board meeting was accepted. The MOTION passed unanimously.

ON MOTION BY Mr. Coon, supported by Mr. Porter, and carried, the Minutes of the previous meeting held on March 12, 2008 were reviewed and approved as written. The MOTION to approve the Minutes was unanimously passed.

CHAIRMAN'S COMMENTS

Mrs. Driker agreed to serve as Co-Chair of today's meeting in the temporary absence of Chairman Gaffney, who phoned earlier and indicated he would be arriving late for the meeting, but asked that the meeting start without him. Mrs. Driker was happy to fill in.

Mrs. Driker asked the Board and everyone present to take a moment and give a brief introduction of themselves at the start of the meeting. She then urged all of the Board members to stay around later and participate in the Neighborhood Advisory Council meeting, to be held at 5:30 p.m., next door in the Community Arts Exhibit Hall.

GENERAL MANAGER'S REPORT

Mr. Jenkins reported that Jeff Hayton, newly hired MSF Business Manager, is the last State Fair staff member to be hired for a while. He added that while Jeff is working at the Fairground today in the role of his current position with DIT, he would officially start working at the Fair next Monday, May 19th. Mr. Jenkins added Jeff has invaluable knowledge and experience with the Fair and we are very happy to welcome him back.

The first of three Spring Horse shows will be returning this week after an absence of four or five years at the Fairgrounds. Mr. Jenkins offered a very special thanks to Daryl Love, MSF Facility Manager and his staff for their hard work and efforts in constructing the new Coliseum horse ring. Daryl and his staff spent many long hours, including working over the weekend, just to get the ring in place for this weeks' horse show event. The Office of Corrections has a "Prison Build" program that we had hoped would be able to assist us with building the horse ring, but unfortunately, they were not skilled this area so were not much help. The Prison Build program may later assist in the construction of a new guard shack, picnic tables and benches and other special projects around the Fairgrounds. Mr. Jenkins noted paying for the materials would be our only responsibility for these projects.

The Woodward Avenue Action Association and the Eight Mile Blvd Association will hold a special "Clean-Up Day " initiative this upcoming weekend and they will use the Fairgrounds as their push-off, initial check-in location for volunteers before going off to their assigned work sites along Woodward Avenue and Eight Mile Road. Mr. Jenkins stated a few of the volunteers from this program agreed to join us in our beautification and cleaning efforts at the Fairgrounds this summer.

Beautification Efforts - The Fairgrounds will hold an annual beautification efforts kick-off on May 31st and June 1st with flower planting and a general clean sweep of the grounds. Mr. Jenkins stated information would be included with today's announcements at the Neighborhood Advisory Council meeting. He stated we are seeking volunteers to sign-up to help plant flowers, donate materials, time and monies to this great project. It was suggested that we contact Haag's Lawnmower business on Woodward Avenue to seek help with mowing and maintaining the lawn on Woodward Avenue in front of the main entrance of the Fairgrounds. A discussion also took place regarding welcoming a partnership arrangement with the Gateway Project group as it relates to snow plowing and snow removal efforts. It was agreed that we should reach out to the Gateway group in an effort to become good neighbors once this development is underway.

Mr. Jenkins reported we have been working with Goodwill Industries in the Detroit Area and in an effort to have them assign workers to the Fairgrounds. Goodwill Industries primary emphasis is on transitional work forces which assists people who have experienced various challenges and struggles to get back into the work force, through landscaping, mowing lawns and other types of tasks and special assignments. Goodwill currently has an arrangement with the Detroit Zoo. Goodwill has been working with Lindsay Calcatera, our new Marketing Director, as it relates to identifying grants and organizations willing to assist and partner with us in these efforts. Goodwill has indicated they should soon be able to provide us with 10 to 12 people to help with landscaping and lawn care needs at the Fairgrounds.

In addition to the Spring Horse shows, we will also host a variety of activities surrounding the Auto Cruise-In events taking place in the Detroit area. The Motor City National Heritage Foundation will be hosting many classic car events in the month of August and we will be the center for these events starting August 10th thru August 16th.

Purchasing Update - Mr. Jenkins distributed a current update on State Fair contracts, exceeding $25,000 to be renewed and/or sent out to bid. The Midway Vendor contract was sent out to bid for the 2009 State Fair. The bids are in and will be reviewed on June 4th by a joint evaluation committee. Wade Shows and N.A.M.E. (North American Midway Entertainment) were the only two companies to bid on the contract. Mr. Jenkins reviewed with the Board the various list of contracts to be considered for renewal. Mr. Jenkins reported that the 2007 Security group was released after the company posed various security problems for the Fairgrounds. Mr. Jenkins added that because our new company "ARMCO" cannot provide enough security for the upcoming State Fair, we are considering asking the previous company to come back and work with us during the Fair only. He stated there were not many problems experienced with this company during the 2007 Fair. It was discussed that a better security program should be established as it relates to the exhibitor gates and with trailer checks. A brief discussion was held regarding the various listed contracts i.e. stagehands and sound, barn cleaning, electrical and hotel bid proposals.

Mr. Albright suggested that the official hotel for the Fair be promoted in the premium book and that the information be made available to the various judges and exhibitors. A discussion was held regarding adding a special link on the website for hotel and shuttle service and special "family fun" packages for the Fair. It was suggested that we contact Larry Alexander, President of Detroit Metro Visitors and Convention Bureau (DMVCB) and newly appointed MSF Authority Board of Director, to discuss the possibility of having someone from DMVCB work with us to promote special tourism type packages to the Fair which could include hotel and shuttle arrangements.

A brief discussion was held regarding manure hauling, woodchips, and recycled bedding requirements for livestock at the Fair. E.J. Brown explained the process of bedding i.e. recycling woodchips, straw and sawdust. Mr. Jenkins reported we would announce that this year is a transitional year and would not put any stiff requirements on the exhibitors, but we would let them know that next year all of the bedding has to be done a certain way or there will be additional fees associated with us transferring the bedding for them.

FINANCIAL REPORT

Mr. Jenkins distributed the second quarter Financial Report issued on March 31, 2008. He indicated that not a whole lot has changed since the first quarter report. Today's report showed a projection of approximately $2,000 to be generated in revenue over our expected expenditures for FY 08. The Board was given an opportunity to review the Financial Report and ask questions. Mr. Albright expressed his concern and frustration as it relates to large line item amounts. He stated more information and detail should be offered for the large line items. Mr. Jenkins offered to send out a full break down of any or every line item, in detail, to any of the Board members who made a request for additional information.

OLD BUSINESS

Mr. Burns gave an update on the RFP. Last month the Board voted to have DMB move forward with sending out an RFP to see what interest there may be in developing activities and year-round land leases at the Fairgrounds. The RFP was sent out on May 6th. The State's real estate vendor, Staubach, recommended we broaden the RFP to cover a larger area of land which could possibly be leased to interested parties. It was felt that the area of land to be reviewed for proposals should not be limited to the area located at the old softball city site (near the railroad tracks), but the RFP should cover a larger area of the Fairgrounds.

Mr. Burns emphasized the proposal was for a land lease opportunity and not an offer to sell or buy Fair property. He added that the timeline to accept responses is through June 10th and the guidelines for the selection of the development is scheduled for July 11th and October 1st is the finalization date, but these dates are subject to change. Mr. Burns stated the State Fair Mission Statement and the Vision for the Fair were included in the RFP. It was noted that all proposals would have to include arrangements to hold the annual State Fair. It was stated that the RFP is an exploratory process to find out what kind of interest there are as it concerns leasing of the Fair property. Mr. Jenkins stated it was a clear statement in the RFP that states the MSF Authority Board has the right to say yes or no to any proposal presented. Mr. Jenkins distributed a hard copy of the request for proposal to the Board. A discussion was held regarding future proposals and lease opportunities for the Fairgrounds.

Agenda Items - A lengthy discussion was held regarding "Agenda Items" and actionable, substantial items to be included on the agenda and how much time would be given to review such items before a vote is taken on the item. Mr. DeCock expressed his frustration as it relates to items to be voted on, appearing on the agenda without an ample amount of time given for review and consideration of the item.

The Board previously held discussions concerning not taking action on items that are not placed on the agenda when the agenda was first sent to the Board. The Board discussed gathering the information on the item, reviewing it and then taking action on the item at the next meeting of the Board. The Board once again agreed to come back and further discuss this item. Mr. Coon and Mr. Porter agreed work on guidelines and develop a drafted proposal of time frames for various agenda items to be presented to the Board.

NEW BUSINESS

The Board agreed to elect a Vice Chairperson at next months meeting in June. A question was raised as to whether or not the Board would be interested in selecting a third person to also serve as a back-up Chair for the other two. It was agreed that this item would be on the agenda next month when Chairman Gaffney is present.

Discussion was held regarding water drainage fees to the Fair and the possibility of us getting a rebate. Mr. Jenkins met with the MI Department of Transportation last week to see if they would be willing to review the formula that the City of Detroit uses to come up with the high rates charged to us for water drainage. The Fair will do a detailed report on how much of our property is open ground, black topped, cemented and roof topped. Mr. Jenkins added that the rates charged to the Fair are not based on meter reading, but rather the water drainage charges are based on a formula used by the City of Detroit. Mr. Jenkins stated this is the reason why he has approached MDOT for a review. The cost of water drainage at the Fair will continue to be reviewed.

PUBLIC COMMENT

Byna Camden expressed concerns as it relates to having enough volunteers and assistance with watering the plants once the beautification efforts at the Fairgrounds take place. She explained there should be a schedule for maintaining the gardens once they are established, otherwise all of the work would be in vain. Mr. Jenkins assured Ms Camden there would be adequate help to assist with the beautification initiative at the Fairgrounds. He stated a $500.00 donation had been received and he was hopeful that more support would soon arrive. Checks for the State Fair Beautification efforts should be made out to the Friends of the Fair.

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Ron Salley of Salley's Alley introduced himself to the new Board members and explained in brief the details of his Family Entertainment Bowling Alley proposal. He stated he has been awaiting approval for his proposed project for the last three years and feels it is unfair that he now has to start all over again. Mr. Salley asked for more clarity as it relates to the liquor license for his program should the Salley's Alley venue be approved and constructed at the Fairgrounds. A lengthy discussion took place regarding who owns the liquor license and possible restrictions on certain areas of Fair property. Mr. Albright stated the Board might want to consider whether or not we are really interested in bringing a family-oriented event to the Fairgrounds which sales alcoholic beverages. He stated the Fairgrounds would have no interest in sharing, sponsoring or being connected with anyone's license for liquor. Mr. Salley stated there would be a special section selected for drinking just like sections have been designated for smokers in other establishments. Mr. Burns agreed to look into the questions raised today as it relates to the liquor license, transferring ability and liabilities associated with multiple licenses. Mr. Salley expressed his willingness to follow the procedures and guidelines and submit his proposal in response to the RFP.

The Board again apologized to Mr. Salley for the delay in getting an answer to him regarding his land lease proposal. It was further explained the importance of completing the State Fair Strategic Plan before moving forward with making an responsible plans and decisions for the future use of the Fairgrounds. The Board was pleased to announce that the Strategic Plan has been completed. Mr. Salley was encouraged to attend today's meeting of the Neighborhood Advisory Council where highlights of the Strategic Plan would be shared with the public. Mr. Salley agreed to attend today's meeting of the Neighborhood group.

DATE for NEXT MEETING OF THE BOARD

The Next Meeting of the Board was scheduled for Wednesday, June 11, 2008 beginning @ 1:30 p.m., Michigan State Fairgrounds, in Detroit.

ADJOURNMENT

ON MOTION by Mr. Coon, supported by Rev. Lester, the meeting was adjourned at 5:15 p.m.