AUTHORITY BOARD OF DIRECTORS MEETING

July 16, 2008

** As Amended at the 8/13/08 Meeting of the Board

Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mr. Robert Porter, on this date, beginning at 1:35 PM, in the Administration Building, Conference Room, at the MI State Fairgrounds in Detroit. 

PRESENT:  

Mark T. Gaffney, President Michigan AFL/CIO & Chairman of MSF Authority 

Robert G. Porter, Vice Chairman of MSF Authority Board

Larry Alexander, President, Detroit Metro Visitors and Convention Bureau

Pat G. Albright, Owner of Albright Farms

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

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

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:     

Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

Reverend Loyce Lester, Representing the Business Community

Also Present:  

Byna Camden, ICARE & local resident of State Fair

Ron Salley, Salley's Alley

J oellen Gilchrist, SMART (Southeast Michigan Animal Rights Team)

Lindsay Calcatera, MSF Marketing Director

Margaret Fletcher, MSF Finance     

Johnnie Bennett, MSF Secretary      

ACCEPTANCE OF AGENDA and APPROVAL OF MINUTES

ON MOTION by Mr. Coon, supported by Mr. Brown, and carried, to adjust today's meeting agenda by placing item #5 "Old Business" under "Public Comment". The adjustment was made to the agenda and the MOTION was unanimously passed.

ON MOTION by Mr. Coon, supported by Mr. Brown, and carried, the minutes of the June 11, 2008 meeting were reviewed and approved with the following two corrections:

The word "unanimously" will be removed from page 4, under "Old Business" in the sentence which reads: "The Board voted unanimously to elect..." 2^nd Correction: In the second from the last paragraph on page 3, under "Non-Fair Activities", the word "rabbi" will be corrected to read "Pseudorabies". The MOTION to approve the previous meeting minutes was unanimously passed as amended.

MANAGER'S REPORT

STRATEGIC PLAN ADOPTION - ON MOTION by Mr. DeCock, supported by Mr. Coon, and carried, the Board agreed to officially adopt and accept the Michigan State Fair Strategic Plan.  The MOTION was unanimously passed.  Mr. Jenkins agreed to send a Thank you letter to the DESC group once again for their hard work and efforts in helping us to accomplish this task.

NON-FAIR UPDATE - The All-Morgan Horse Show was recently held at the State Fairgrounds.  There were some challenges in terms of the infrastructure of the Fair facility, but overall, this was a very successful event.  Sue Hall, the Horse Show manager was very complimentary of our State Fair staff members, especially Scott Ruthenberg for his efforts in dealing with all of the issues of the show.  Mr. Jenkins stated bringing back the Spring Horse Shows is a very big plus for the Fairgrounds.

The Walk-About Horse exhibit will be held at the Fairgrounds on July 26, 2008.  This event has been going around the world and we are proud to be one of the few locations featuring this special show.

The Ring of Honor Wrestling event will take place on the evening of July 26, 2008, in the Michigan Mart Building.  More than 600 wrestling fans are expected to attend this special event which takes place three times a year at the Fairgrounds.

Developments are still underway as it relates to the August Auto Cruise-In activities and exciting events taking place at the Fairgrounds in Detroit.  Mr. Jenkins gave a brief review of the scheduled auto week activities.  Mr. Porter agreed to assist with radio promotions for the auto week events taking place at the Fairgrounds.

"Symphony in the Park" and "Performances in the Park" continue to take place at the State Fairgrounds each Friday evening at 7:00 p.m. and Saturdays at 11:00 a.m. through August 2, 2008.

2008 STATE FAIR UPDATE - Mr. Jenkins reported everything is generally in place and we are moving along well in terms of preparing the grounds for the upcoming State Fair.

Mr. Jenkins reported the High School Musical celebrity, Vanessa Hudgens, had to cancel her concert at the Fairgrounds this summer and we are now looking for a replacement for this particular night in the Band shell.

The annual 2008 State Fair Press Conference will be held on Thursday, July 24, 2008, beginning at 10:30 a.m. in the Community Arts Auditorium.  Mr. Jenkins complimented Lindsay Calcatera, MSF Marketing Director, for the great job she continues to do as it relates to promoting the Fair and getting us free publicity through various agencies.  Lindsay agreed to send to the Board members a list of the eleven movie theatres in the metro Detroit area and the locations of the eleven billboards where the 2008 State Fair promotions can be seen.  1.3 million email blasts will soon go out announcing the upcoming State Fair.

Mr. Jenkins stated it is pretty devastating that we are no longer in a financial position to spend dollars on television promotions as we were able to do in the past.  Promotional efforts for the Fair will continue.

The Governor unfortunately will not be able to attend the traditional Governor's Day Luncheon and Livestock Youth Auction at the Fairgrounds on August 27, 2008.  The Director of Agriculture, Don Kovisto will attend the Governor's Luncheon in place of the Governor'.  Discussion was held regarding having Paul W Smith of WJR promote the Livestock Auction in advance before August 27th.  

Governor Granholm has agreed to join us on August 22, 2008 to cut the ribbon and officially open the 2008 State Fair at 12Noon on Opening Day.  The Board was invited to attend this great event and participate in the Opening Day Parade and Ribbon Cutting Ceremony.  Mr. Jenkins stated he would be sending out regular Fair updates to the Board as we move closer to the opening of the Fair.

Mr. Jenkins reported WJR has agreed to begin promoting the Fair on August 1, 2008 and will also promote the Auto Fair "Live" from the Fairgrounds during the week of August 9-16^th.

A brief discussion was held regarding the recent thefts at the Fairgrounds. Copper pipes were stolen and there was also damage to buildings.  Mr. Jenkins reported DMB has loaned us a plumber who has been working with us to make necessary repairs before the Fair opens.

A special thanks to Wayne County Mounted Police division for sending patrol cars to all they are doing to help us create a security presence throughout the evenings and closed hours of the Fairgrounds.  A brief discussion was held regarding the security needs of the Fairgrounds and the financial expense associated with securing the facility. 

Vice Chairman Porter turned the meeting over Chairman Gaffney, who then gave brief comments.

CHAIRMAN'S COMMENTS

Chairman Gaffney stated he would give an update on a list of MSF Authority Board Administrative Procedures at the next meeting of the Board in August.  Chairman Gaffney questioned whether or not there would be any contract renewals or re-bids to discuss at today's meeting.  Mr. Jenkins stated there were none to report at this time.  Johnnie agreed to forward to the Board a list of the compiled MSF Authority Board Administrative Procedures for the Board's review and discussion at next months meeting.

FINANCIAL REPORT

Mr. Jenkins shared a "Drafted' two page document highlighting the third quarter Financial Report on the State Fairgrounds.  He stated this information had been sent to him from Lansing earlier today and he and Peggy had spent a considerable amount of time reviewing the report before presenting it to the Board today.  Mr. Jenkins stated today's Financial Report is a roll-up version of the Fair's finances but he would be happy to share with the Board the full detailed, lengthy Financial Report, if requested.

Mr. Jenkins reviewed today's Financial Report with the Board and stated expressed his concern in the area of sponsorship dollars for the upcoming State Fair.  He added that adjustments have not been made in the area of attendance and parking. These numbers may increase as a result of new entertainment and Fair activities. A brief discussion was held regarding the situation with storm water at the Fairgrounds and the various formulas used in charging the Fair for the removal of storm water.  Mr. Jenkins reported that revised information on the ground type and surface structure of the Fairgrounds has now been sent out for review. 

ON MOTION by Mr. DeCock, supported by Mr. Coon, and carried, the "Drafted" Financial Report presented today was accepted and received by the Board.  The MOTION passed.

NEW BUSINESS

There was no New Business to come before the Board.

PUBLIC COMMENT

Byna Camden shared information regarding various thefts taking place in the neighborhood around the Fairgrounds.  She expressed her concern and asked whether or not the Fair Management would be willing to contact representatives from the Gateway Project to alert them of the problems and ask if they would lock and secure the entrance gates to their property on Eight Mile Road.   Mr. Jenkins agreed to contact General Growth Property and share these concerns.

Joellen Gilchrist, SMART (Southeast Michigan Animal Rights Team) gave a brief report on the treatment of elephants and wild life at the circus.  She distributed literature and stated her reason for attending today's meeting was to educate the Board and the Fair Manager on why her group is so strongly against elephants participating in circus activities.  Ms. Gilchrist indicated she would return to the next meeting of the Board and again her hope will be to persuade the Board to remove elephants from the circus show scheduled during the Fair. Chairman Gaffney requested that Ms. Gilchrist present to the Board, if ever available, any specific findings or proof she may have of cruelty or poor treatment to the elephants while performing at the Fairgrounds.

Ron Salley indicated he was present today to merely gain knowledge and information as it relates to his project proposal and the results of the Request for Proposals (RFP's) on the State Fair property. Mr. Burns stated that during "Closed Session", he would be giving a detailed update on the RFP and recommendations presented by DMB.  He added DMB's real estate division would soon be prepared to share information with Mr. Salley and others regarding their lease proposals.  Mr. Salley thanked the Board and he then left the meeting.

OLD BUSINESS

ON MOTION by Mr. Porter, supported by Mr. Burns, and carried, the Board voted to move the regular meeting of the Board into Closed Session to discuss the RFP's on the State Fair property.  With a roll-call vote of 9-yeas and 0-nays, The Regular Meeting of the Board was moved into Closed Session at 3:05 p.m. The MOTION was unanimously passed. The Board agreed to have both Mr. Jenkins and Johnnie Bennett present during the Closed Session.

A discussion was held at length regarding the recent RFP on the State Fair property.  The Board agreed to extend the RFP for an additional six months and issue a new RFP as soon as it is legally possible.

With no additional information to be presented during Closed Session, Chairman Gaffney moved the meeting out of Closed Session and the Regular meeting of the MSF Board of Director's reconvened at 3:55 p.m.

ON MOTION by Mr. Coon, supported by Mr. Porter, and carried, to have the DMB Real Estate Division express and emphasize to the initial RFP applicants the required information and criteria called for in the RFP on the State Fair.  The Board agreed to extend the RFP for an additional six months and issue a new RFP as soon as possible.  The original RFP applicants would be allowed to present additional information and new applicants would be invited to respond to the request.  The MOTION passed unanimously.

DATE for NEXT MEETING OF THE BOARD

The next meeting of the MSF Board was scheduled for Wednesday, August 13, 2008 beginning @ 1:30 p.m., in the Administration Bldg. @ the Michigan State Fairgrounds. 

Please NOTE: The Board should be prepared to use the State Fair Avenue entrance due to heavier traffic at the Woodward entrance due to the August Auto activities.

ADJOURNMENT

The meeting was adjourned at 4:00 p.m.

* Amended at the August 13, 2008 Meeting of the Board:

• "Expositions" corrected to "Exhibitions"
• The word "stated" removed  under FINANCIAL REPORT- 2nd para.
• Under New Business, the word "legally" inserted before the word possible