MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

December 12, 2008

Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mr. Robert G. Porter, Vice Chair, on this date, beginning at1:40 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
Reverend Loyce Lester, Representing the Business Community
Pat G. Albright, Owner of Albright Farms
Erwin "EJ" Brown, Executive Director MI Association of Fairs & 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
Elaine Driker, Former Director, Detroit Orientation Institute @ WSU  
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: 
Eugene Kondash, Local resident & supporter of the Fair  
Joellen Gilchrist, SMART (Southeast Michigan Animal Rights Team)  
Lindsay Calcatera, MSF Marketing Director
Margaret "Peggy" Fletcher, MSF Finances
Jeff Hayton, MSF Business Manager  
Johnnie Bennett, MSF Secretary            

ACCEPTANCE OF AGENDA
and
APPROVAL OF MINUTES

ON MOTION by Mr. Coon, supported by Mr. Lester, and carried, to accept today's meeting agenda with one addition:  "Discussion of Michigan Mounted Equestrian" will be included under "Old Business."  The MOTION was unanimously passed .

ON MOTION by Mr. Porter, supported by Mr. DeCock, and carried, to approve the minutes of the October 15, 2008 meeting.  The MOTION to approve the previous minutes passed unanimously.

VICE CHAIRMAN'S COMMENTS

Chairman Gaffney apologized for his late arrival to today's meeting of the Board. 
He then wished all a very safe and happy holiday season.

ON MOTION by Mr. Porter, supported by Mr. DeCock, and carried to approve the minutes of the meeting held on December 12, 2008 , with the following correction:  On page 5, the 4^th paragraph should read Mr. DeCock offered information as it relates to The Michigan Multi-Jurisdictional Mounted Police Drill Team and Color Guard.  The mounted police drill team left from the Eaton County Sheriff facilities to attend the 2009 Presidential Inauguration, Washington , DC .  "Ingham County Mounted Horse Division" will be removed from the minutes.  The MOTION to approve the previous minutes was passed unanimously.

MANAGER'S REPORT

Mr. Jenkins reported on the following:

FINANCIAL UPDATE

A drafted financial document was distributed which highlighted the State Fair's projected budget for FY07, 08 and 09.  The House and Senate Appropriations Committee approved a departmental transfer of funds to cover the 2008 State Fair shortfall.  We will be cutting our 2009 expenditures by approximately a quarter of a million dollars and are hoping to recapture at least half of what we lost in 2008, in terms of gate attendance, parking revenue and other areas.  Mr. Jenkins reported that the Fair has reduced its expenditures by nearly 27% over the last couple years and while this has not been an easy accomplishment, it has allowed us to look at things differently in terms of how we do business and control our expenses.

The Board reviewed the document and Mr. Jenkins stated that because of the length of information to be reviewed, he invited the Board members, once again to contact him by phone or email should they have any questions concerning this document after today's meeting of the Board.  It was agreed "Discussion of Drafted Budget Numbers" would be placed on the next meeting agenda under "Old Business." 

ON MOTION BY Mr. Lester, supported by "EJ" Brown, and carried, the Drafted Financial Document presented today was accepted by the Board today.  The MOTION was unanimously passed.

Mr. Jenkins shared information regarding new livestock activities that may generate more interest and participation by exhibitors and fairgoers at the 2009 State Fair.  We are presently looking at the possibility of expanding and developing additional youth horse competitions i.e. Halflinger horse show, "speed and action" competition, miniature horse show/competition.   

CONTRACTS

The Board reviewed and briefly discussed the distributed contract update document.  The current contract with Road Runner Janitorial service will expire on August 18, 2009 just before the start of the annual State Fair.  Mr. Jenkins stated that it is our intent to extend the contract with the current vendor, Road Runner, because of their excellent service, but we may be able to minimize the cost of their services as we are presently looking into a special grant opportunity that may help us to reduce expenditures by allowing us to bring in outside help and additional janitorial staff. 

A brief discussion was held regarding NAME (North American Midway Entertainment), the recommended midway provider for the State Fair.  A public interview was held in November with both Wade Shows and NAME.  Wade Shows withdrew their consideration in the bid process at the end of November.  NAME has not been officially awarded the contract but we are hopeful this will happen soon.  Mr. Jenkins shared with the financial benefits of having NAME as our midway provider.  He commended Elise Lancaster, of DMB, for her support and help in getting the Midway Contract on the agenda for the State's Administrative Board for next week as opposed to waiting until January.  Having the contract in place a month early will help us to move forward with our preparations and plans for the 2009 State Fair.

PROMOTIONAL EFFORTS

Lindsay Calcatera, MSF Marketing Director, greeted the Board and wished everyone a wonderful holiday season.  Lindsay gave a brief, yet very complete update on the additional promotional efforts that are currently underway to help generate greater awareness of our year-round activities and events held at the State Fairgrounds.  These efforts include the creation of a new marketing theme: "Whatever the Season, there's always a Reason, to visit your Michigan State Fairgrounds." A new marketing brochure has also been developed that highlights various year-round events and special attractions at the Fairgrounds.  Featured in the brochure are opportunities to rent and utilize our facility, including low rental rates for non-profit and government groups.  Lindsay stated this piece is presently at the printers but she would be happy to forward a website link to the brochure once it becomes available.  A firm price structure has been created for the rental of our various facilities. A new website featuring year-round activities and rental promotions is presently underway. Lindsay stated the new Fair website should make for a much more inviting and user-friendly experience when the public visits our site.  The new website will offer an interactive map with square footage and rental rates for various buildings.  We are also in the process of developing special discount packages and advance ticket sale incentives that may include family fun promotions for the annual State Fair as well as special offers for our year-round events i.e. golf, basketball, football, hockey, equestrian center, shrine circus, etc.  The pricing structure will also include a list of our preferred vendors for catering, table and chair rental, decorating, etc.

Mr. Albright stated that while brochures certainly have their place and benefit, he stated it would be less costly for us to concentrate more on paperless promotions.  He added that it may prove to be more of a benefit, financial and otherwise, if our focus was greater placed on enhancing and developing a very informative, user-friendly State Fair website.

Chairman Gaffney stated that maybe we could consider the possibility of cross-promotions and joint-marketing with other venues and special events taking place throughout Michigan.  He questioned whether there would be an advantage in having representatives from the State Fair attend other events, possibly have a booth and gather information as to what other events/venues do their population attend throughout the summer.

A new fair partner, the Youth Connection, a non-profit after-school program, will soon move into the Volunteer Headquarters building.  Lindsay reported that renovations to the inside of the building are currently underway.  Materials and workforce for the building renovations are being donated through various organizations to the Youth Connection.

2009 STATE FAIR DATES & PRICING

Mr. Jenkins reported that traditionally the Annual State Fair ends at midnight on Labor Day each summer.  A brief discussion was held regarding the late start date for this year's State Fair (Friday, August 28, 2009).  Mr. Jenkins reported that Lindsay has at least ten other events/venues that she will be attending which will allow us an opportunity to promote the awareness of our year-round and annual State Fair activities.  Mrs. Driker suggested Lindsay contact Susan Mosey of the Detroit Festival of the Arts regarding their 3-day art and music festival held in June.  Mrs. Driker reported this is a very wonderful event and stated this may prove to be a good lead as we move ahead with the development of a special cultural celebration of ethnic foods, music and art display for the 2009 State Fair.  The Board raised no concerns as it related to starting the 2009 State Fair on Friday, August 28^th through Monday, September 7^th.  Mr. Jenkins stated we will continue to look at what we must do differently over the very competitive Labor Day weekend, in order to increase our State Fair gate attendance.

PRICING - Mr. Jenkins asked the Board to support not increasing prices for gate admissions or parking for the 2009 State Fair.  He stated that we would like to continue looking at ways to reduce pricing through various partner and special promotional opportunities.  NAME (North American Midway Entertainment) has committed they will offer an $15.00 and $25.00 ride-all-day wristband, if they can not convince us to go with another price.  Mrs. Driker stated the $25.00 wristbands are a tremendous disincentive especially with today's economy.  She expressed how financially difficult it is for a family with three children to attend the Fair over the weekend.  Mr. Jenkins reported that in a public interview NAME expressed their concern over these ticket prices. Their representatives stated that these wristband prices are lower than listed at many other State Fairs.  A brief discussion was held regarding the guarantee and promises made by NAME.  EJ Brown stated Names special marketing department will promote the fresh look of our Michigan State Fair with all new rides and games.  The NAME midway contract is a three-year agreement.

ON MOTION BY Mr. Porter, supported by Mr. Lester, and carried, to accept and adopt the 2009 State Fair Dates (Friday, August 28^th - Monday, September 7^th), and 2009 Fair Pricing for gate admissions and parking with no increases.  The MOTION passed unanimously.

OLD BUSINESS

MSF Authority Board Appointments - Terms for (3) Board members (E.J. Brown, Tom Coon and Mark Gaffney) will expire on February 28, 2009.  Mr. Jenkins stated he had received a call yesterday from Larry Alexander stating that due to business commitments and obligations he had to withdraw from the Fair Board.  Mr. Jenkins spoke with Jim Stokes, Appointments Director for the Governor, and indicated that it was his impression that each of the three Board members would like to be reappointed.  He also advised Mr. Stokes of Mr. Alexander's forthcoming resignation from the Board.

Mr. Burns shared brief comments regarding the RFP on the State Fair property.  The movie proposal pulled out a while back, leaving only one proposal for retail development.  It is understood that the financial backers for this proposal no longer exist.  Mr. Burns stated that the RFP will close out at the end of six month process.  It was an educational experience for everyone involved, unfortunately there were no significant offers or proposals presented.  It was agreed that the Board should continue to discuss and investigate what would best work for the Fairgrounds facility.  Discussion was held regarding finding a developer to help market the Fair facility.  Mr. Burns stated that he may be able to contact a person who works with Management and Budget to request assistance in studying better uses of the Fairgrounds.  Mr. Burns stated he would look into having someone come in and speak at a future meeting of the Board.

Mr. Jenkins agreed to contact the management group for the 40 acres of property located at the southeast corner of Eight Mile and Woodward Avenue and ask to have a representative come in and give an update on the property development and proposals at the next meeting of the Board in February.  Mrs. Driker shared her concerns as it has to do with large trucks traveling the overpass and throughout the neighborhood.  The Board agreed it will be nice to have some of the answers when approached and asked about this 40 acres of property attached to the State Fairgrounds.

Mr. Burns reported that while there is no new news to report on the situation with our storm water, he would follow-up and see if he could get some answers for us.

Discussion of Michigan Mounted Equestrian - Mr. DeCock offered information as it relates to the Ingham County Mounted Horse Division being invited to perform and participate with the upcoming President's Inauguration to be held in Washington DC in February 2009.  The Board agreed it would be a nice gesture to send a letter and reach out to the sheriff of the mounted division to congratulate them on winning a place on the Inauguration program and also to offer stabling or any assistance that the fairgrounds could provide as their group prepares to travel with horses to Washington.  Mr. Jenkins agreed to reach out to the Ingham County Mounted Division.

At the February 4, 2009 meeting of the Board, the above section of the Minutes was amended as follows:

ON MOTION by Mr. Porter, supported by Mr. DeCock, and carried to approve the minutes of the meeting held on December 12, 2008, with the following correction:  On page 5, the 4^th paragraph should read Mr. DeCock offered information as it relates to The Michigan Multi-Jurisdictional Mounted Police Drill Team and Color Guard.  The mounted police drill team left from the Eaton County Sheriff facilities to attend the 2009 Presidential Inauguration, Washington, DC.  "Ingham County Mounted Horse Division" will be removed from the minutes.  The MOTION to approve the previous minutes was passed unanimously.

NEW BUSINESS

EJ Brown invited and encouraged the Board members to all attend the upcoming M.A.F.E. conference held in January in Grand Rapids, Michigan.  He stated Friday, January 9^th, there would be a general session taking place at 1:00 p.m. and this would be the best day for the members to attend.

PUBLIC COMMENT

Mr. Kondash thanked the Board for welcoming his participation in today's meeting.

Joellen Gilchrist of SMART (Southeast Michigan Animal Rights Team) presented information to the Board members once again stating why she and her group are against exotic animals and elephant performances in circus' and at the State Fair.  The Board received the literature distributed by Ms. Gilchrist today and thanked her for attending today's meeting.

DATE for NEXT MEETING OF THE BOARD

The Board agreed not to hold a meeting in January. The next meeting of the Board was scheduled for Wednesday, February 4th, beginning @ 1:30 p.m., in the Administration Bldg. @ the Fairgrounds. 

Please NOTE: Following are the dates/times of future meetings of the MSF Advisory Board of Directors.

Wednesday, March 11, 1009 - 1:30 pm
Wednesday, April 22, 2009 - 1:30 pm
Wednesday, May 13, 2009 - 3:00 pm tentatively
(The Neighborhood Advisory Council may also meet on this day at 5:30, details TBA).
Wednesday,  June 10, 2009 - 1:30 pm

ADJOURNMENT

ON MOTION BY Mr. Burns, supported by Mr. DeCock, and carried, the meeting of the MSF Authority Board was adjourned at 3:45 p.m.