MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

February 4, 2009

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 1:41 PM, in the Community Arts Auditorium, 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

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:     

Pat G. Albright, Owner of Albright Farms

Also Present:           

Heather Carmona , Executive Director, Woodward Avenue Action Assoc.

Norman Lopatin, Representative for Oakland Edison Charter School

Samuel Felton, Representative for Charter Schools

Brian Siegel, MSF Tenant , Joe Dumars Fieldhouse

Dr. Grenae Dudley , MSF Tenant, The Youth Connection

Tami Salisbury, MSF Tenant, Director of Eight Mile Blvd Association

Dennis Deno on behalf of State Senator Samuel "Buzz" Thomas

Clarence Gill on behalf of State Senator Samuel "Buzz" Thomas

Ryan Rowanski, MSU graduate, supporter of the MSF

Byna Camden , ICARE, Local resident & supporter of the Fair

Ed Bullock , ICARE, Local resident & supporter of the Fair

Eugene Kondash, Local resident & supporter of the Fair

Joellen Gilchrist, SMART (Southeast Michigan Animal Rights Team)                                               

Lindsay Calcatera, MSF Marketing Director

Margaret Fletcher, MSF Finances

Jeff Hayton, MSF Business Manager

Johnnie Bennett, MSF Secretary      

ACCEPTANCE OF AGENDA and APPROVAL OF MINUTES

ON MOTION by Mr. Porter, supported by Mr. Lester, and carried to accept today's meeting agenda.  The MOTION was unanimously passed.

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.

CHAIRMAN'S COMMENTS

Chairman Gaffney welcomed everyone to today's meeting of the Board.  The meeting was then turned over for scheduled presentations.

PRESENTATIONS:

Heather Carmona, Director of the Woodward Avenue Action Association (WA3), gave a brief yet detailed overview of her organization's mission and goal to enhance, revitalize and clean up the neighborhoods and communities along Woodward Avenue that stretch from Detroit to Pontiac.  Mrs. Carmona stated that Mr. Jenkins and Lindsay Calcatera had shown great support as they have been involved as stakeholders with the 6 to 8 Mile Road Woodward special projects initiative.  These projects include improving lighting along Woodward Avenue to create safe walkways and decrease crime, encouraging and supporting greater emphasis on property maintenance and upkeep, promoting partnerships with businesses, stakeholders, community leaders and neighboring residents, and developing a graffiti removal program among other initiatives.  A copy of the WA3 neighborhood strategic plan and their recent newsletter was passed around to the Board members for review.  Mrs. Carmona stated this information is also available on the WA3 website.  Mrs. Driker and Rev. Lester both agreed to share contact information with Mrs. Carmona related to contact information which may assist with WA3's ongoing efforts in the 6 to 8 Mile area.  Mrs. Carmona thanked the Board for allowing time on today's agenda for her presentation and she expressed her strong support for keeping the Michigan State Fair as one of the wonderful treasures along Woodward Avenue.

There was no representative available to give an update on the mall project scheduled for the southeast corner of Eight Mile and Woodward Avenue.  Calls had been made to both Cory Jacoby and Bernie Schrott recently and it had been indicated that one or the other would be present today to share information with the Board, that did not happen today.  Chairman Gaffney gave a brief overview of the proposed plans for the 40 acres of privately owned property. The State Fair Manager and Authority Board have no control over the mall property but will continue to pursue information regarding the future development and site plans for the area.

Norman Lopatin,  a representative for the owners of Edison Oakland Public School Academy located on Woodward Avenue in Ferndale, Michigan, joined the meeting and distributed a proposal packet to each Board member highlighting the schools vision and mission statement, the enrollment  progress and attendance report and a 20007-08 MEAP (Michigan Educational Assessment Program data page which highlights the academic performance of the students attending Edison Oakland Academy verses Detroit Public Schools.  Mr. Lopatin shared his credentials and details regarding the proposal to develop a charter school on 15 to 20 acres of land off Eight Mile Road in the old Softball City area of the Fairgrounds.   The Board expressed its concerns related to the opposition which may arise as a result of developing a charter school on the State Fairgrounds in Detroit.  The Board thanked Mr. Lopatin for his presentation today, and then directed him to contact DMB (the Michigan Department of Management and Budget) as a next step to learn whether or not this proposal would be a good fit for the Fairgrounds property.

MANAGER'S REPORT

Mr. Jenkins reported on the following:

NON-FAIR UPDATE

There is a 20% increase in non-fair events scheduled at this time compared to last year.  There are (18) eighteen event days presently scheduled which include various horse shows, dog and obedience training shows, lumber and building materials auction, ice hockey events, a giant liquidation sale, the Shrine Circus, Goodwill Antique show, the Cattle Baron's Ball and many other special non-fair events.  Mr. Jenkins complimented Lindsay Calcatera and Scott Ruthenberg, MSF staff members for their outstanding efforts in promoting and securing year-round events.

FAIR UPDATE

The new marketing brochure discussed at the last meeting of the Board is complete and has been mailed out to over 300 businesses.  A special State Employee Appreciation Day will be pursued for the 2009 Fair.  We are hoping to host another pre-Fair event similar to last year's Jewish Federation Day which took place the day before the official opening of the 2008 State Fair.

FINANCIAL UPDATE

Mr. Jenkins stated a draft budget report was distributed at the last meeting of the Board which highlighted the State Fair's projected budget for FY07, 08 and 09.  The Senate Appropriations Committee approved a departmental transfer of $500,000 to cover the 2008 State Fair shortfall.  While the 2008 Fair shortfall did not require all of the transfer monies provided by DMB, the additional funds were used to cover shortages from other years.  The 2008 Fair attendance was 235, 000, a 7% loss. 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.  Questions were raised as they related to the Fair's shortages.  Mr. Jenkins stated we are anticipating a slight surplus for FY09. 

A lengthy discussion took place regarding the Governor's recent State of the State address and her executive budget recommendation which would remove the Michigan State Fair from the 2010 budget by eliminating all financial support.

Many questions and concerns were raised and expressed by Board members, various State Fair tenants and the public who were all present at today's meeting of the Board.  Many concerns were expressed related to the master plan for the State Fair property should the land be sold.  Local residents surrounding the State Fairgrounds expressed their concerns related to having a large vacant piece of property just across the street from their homes.  There were questions raised related to whether or not there was any language in the original deed that would preclude the sale of the property.   Questions were raised concerning what would happen with the current tenants should the facility shut down and be placed on the market for sale.  Brian Siegel of Joe Dumars Fieldhouse stated that since the Governor's recent announcement there's been a chilling effect with their Joe Dumars business in Detroit.  He stated some customers have asked for their deposits and are very concerned about booking future events at the Fairgrounds site as a result of the Governor's recent announcement which left many people very uncertain of the facility's future.  Mr. Siegel and other Fair tenants questioned how their leases would be handled once the Fairgrounds shut down and the gates are closed.   Will their special programs suddenly end or will they each be permitted to continue their operations and what about security and the overall maintenance and management of the facility?  Joellen Gilchrist of SMART explained how very important it is for the Fair management and supporters of the Fair to get organized and begin keeping track of who really cares and would be willing to get more involved and solicit additional support.  She added that many people are disappointed and saddened by the Governors announcement to possibly close the Fair, but most people simply do not know how to complain appropriately and really make a difference. 

Additional questions were raised related to how the sale of the property would be handled. Would it be similar to the previous land lease RFP (Request For Proposal) on the State Fair property?  Questions were raised regarding whether or not zoning regulations will be considered and would the Board be interested in seeking out and participating with a 501c3 organization which may be interested in privately operating the annual State Fair, independent of state government and if a 501c3 could be identified, would the Governor be willing to allow the Fair to continue to exist and take place at it's present location?

After a very lengthy discussion among the Board, public and Fair tenants, it was agreed that the will of the State Fair Authority Board is to continue to hold an annual State Fair and to do so at its present location in Detroit.

The Board agreed to contact the Attorney General's office and seek answers and information as it relates to the (5) five historic structures at the Fairgrounds and when these sites may have been designated.  Also questions will be asked that relate to Fair tenant concerns expressed at today's meeting regarding their lease agreements and contracts.  It was understood that the MSF Authority Board and the Fair Manager were responsible for the leasing and rental of the Fairgrounds property and that DMB was responsible for the actual sale of the property.  The Board would also like information regarding the original deed to the property.  Clarity on this item will be sought from the Attorney General's office along with zoning regulations and whether or not the property is subject to the City of Detroit zoning laws and what is the master plan for the property.

It was explained that the Governor's office would like to be protected from the risk of having to cover the financial differences between income and expenditures and also the Governor's office would like the State to be protected from the cost of capital upkeep, repairs and improvements to the Fairgrounds property and the Governor's office would further like to see economic benefits coming from the property.   The Board expressed their desire to work with the Governor as partners towards these goals.  The possibility of a 501c3 or private entity may be interested in taking over the operations of the Fair will be explored. The Board would like to have more information as it relates to the numbers of jobs and income that would be expected or needed to be generated at this location in order to have a positive financial impact throughout the surrounding communities and the State. 

Mr. Burns stated that  he would continue to provide information to the Board as he always has, but when it comes down to stating an opinion to the Governor, because of his position on the Board , serving as a representative for DMB, he would abstain from any vote.  Mr. Haarer stated he would also abstain.   Mr. Burns stated that a special public forum would soon be scheduled through the Governor's Southeast Michigan office and that all interested parties would have an opportunity to hear the facts and share in the discussions concerning the future of the State Fair property.

ON MOTION BY Mr. Coon, supported by Mr. DeCock, and carried, the Board agreed to have Mr. Coon draft the comments and statements expressed by the Board today in the form of a resolution which will be sent to the Board over the next few days for review and then forwarded to the Governor's Southeast Michigan Office and to the Governor.  The resolution will express the desire of the Board to work with the Governor on the future plans for this location. The information included in the resolution will then become part of a working document for the Board as we move forward in this process.  The MOTION passed with (2) two abstentions votes by Mr. Burns and Mr. Haarer.

OLD BUSINESS

Mr. Jenkins reported that he recently sent an email to the Detroit City Mayor Crockrel's attention concerning the problems we continue to face as a result of bills the State Fair is being asked to pay to the Detroit Water Department as it relates to storm & rain water run-off charges.   Mr. Jenkins stated that a meeting with the Detroit Water department should soon take place.  It was stated that approximately $250,000 would still need to be paid every year whether the State Fair property is sold or not. The owners of the property would still be responsible for the Detroit Water Department storm water run-off charges.

NEW BUSINESS

There was no new business to report.

PUBLIC COMMENT

Mr. Kondash thanked the Board for welcoming his participation in today's meeting and he stated that he would very much like to see a special transportation system in place to help bring more Michigan residents from various parts of the State to the Fairgrounds each year.  He stated this is something that used to take place and he believes a bus, trail or train system along Woodward would help increase attendance and public participation.

Various guests expressed their support and love for the Fair and indicated their wishes to have it remain at its present location in Detroit.

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

Ed Bullock of ICARE complimented the Fair Manager and State Fair Authority Board on their openness, community involvement and the overall manner in which they conduct business.  He stated that Mr. Jenkins was very visible in Hazel Park and throughout the community he was making a wonderful difference for the State Fair.

Ryan Rowinski, a Michigan State University graduate expressed why he felt it would not be a financial benefit for the State to allow a charter school to operate at the State-owned Fairgrounds property in Detroit.  He explained that this would not make much sense as the state would be responsible for the financial support of the school, so this would not be idea for the facility seeing how the State has made it clear that all financial support will be removed.

DATE for NEXT MEETING OF THE BOARD

The next meeting of the MSF Authority Board was scheduled for Wednesday, March 11th, beginning @ 1:30 p.m., (location TBA)

ADJOURNMENT

ON MOTION BY Mr. Coon, supported by Mr. Porter, and carried, the meeting of the MSF Authority Board was adjourned at 4:18 p.m.