MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

April 22, 2009

Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mrs. Elaine Driker, Vice Chairperson, on this date, beginning at 3:39 p.m., in the Administration Building, Conference Room, at the MI State Fairgrounds in Detroit. 

PRESENT:        

Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

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

Reverend Loyce Lester, Representing the Business Community

Robert Burns, Representing Lisa Webb Sharpe, Director of DMB

Jeff Haarer, Representing Don Koivisto, Director of MDA

Robert G. Porter, Newly Appointed MSF General Manager

ABSENT:       

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

Pat G. Albright, Owner of Albright Farms

Also Present:   Peggy Fletcher (MSF), Pat Boyer (MSF), John Kelly (Representing NAME), Mitch Irwin (Representing NAME), Danny Houston (NAME), Ed Bullock (ICARE), Irene Zagar (ICARE), Byna Camden (ICARE), Steven R. Jenkins (former MI State Fair General Manager) and Johnnie Bennett (MSF).

ACCEPTANCE OF AGENDA and APPROVAL OF MINUTES

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

ON MOTION by Mr. Lester, supported by Mr. Coon, and carried, to approve the Minutes of the meeting held on March 11, 2009.  The minutes were reviewed and, two corrections were offered:  EJ Brown was "absent" at the previous meeting and the minutes were corrected to reflect this change.  Also on Page 4, under "Manager's Salary", the Motion to set the Fair Manager's Salary was passed with (1) one "no" vote offered by Mr. Albright, this was not an abstention vote.  The MOTION to approve the previous minutes was unanimously passed

CHAIRMAN'S COMMENTS

Vice Chair Driker welcomed everyone to today's meeting of the Board and stated Chairman Gaffney had called and indicated he would not be in attendance at Board meeting, but would join us for the Community Forum at 6:00 p.m. in the Hudson Auditorium.  Mrs. Driker asked today's guests and non-Board members to take a moment to introduce themselves.  The meeting was then turned over to Mr. Porter.

MANAGER'S REPORT

Mr. Porter offered a brief financial update and shared approximate figures which he would soon submit to DMB (Department of Management and Budget) Finance for approval. Mr. Porter stated that based on our past history budget reports for the Fair, these figures are justified and appropriate.  He stated we are currently budgeting $1,188,000.00 for our gate revenue.  Mr. Porter stated he will adjust this amount to reflect 1.6 million dollars and reduce sponsorships by 125,000 and increase television to 225,000, professional entertainment to 52,425 and 9,000 for the Rodeo.  The total difference is 411,000.

2009 Entertainment Update - The Miracle of Life Birthing Exhibit (MOL) will be in place for the upcoming State Fair.  Mr. Porter has been in touch with Dr. Dan Grooms and has assured him the MOL display will be in the same location as last year and there would only be agricultural displays in this area to help enhance the MOL exhibit.  It was suggested that Mr. Porter contact Dr. Grooms with regards bringing Krissa Thoms back for the upcoming Fair to help coordinate the volunteer efforts and enhance the learning experience at the MOL exhibit.

Mr. Porter stated there would be a new urban garden at the Fair this year, positioned just across from the Miracle of Life exhibit.  The garden will be located at the north/west corner of the Poultry Building.  The garden will feature demonstrations on recycling rain water and various phases and levels of development for a variety of plants.

Mr. Porter stated we are no longer considering a BMX Extreme show for the Fair; instead we are now looking to sign a contract with a Mexican Circus which Pat Boyer has been in communication with.  Mr. Porter stated the circus will offer a bright, colorful and visible for the Fair and it may also serve as a welcoming outreach to the Hispanic community.  The circus will be positioned behind the Community Arts Auditorium, at the south end of the Fairgrounds.

There will be a "free" Rodeo featured at this year's State Fair.  Last year there was an extra $5.00 fee to watch the Rodeo, Mr. Porter was happy to announce this year the Rodeo is free and will be well promoted along with other great State Fair entertainment.

Mr. Porter stated he has been working on details to put together a special celebration for the 50^th Anniversary of Motown at the Fair.  This may be a three or four day celebration with big headline entertainers and a special presentation and tribute to Barry Gordy.  The Fair's new marketing firm DMC Worldwide has been working with Mr. Porter to coordinate the Motown Revue efforts along with a special Jazz Day and Gospel Day.  Mr. Lester has also met with Mr. Porter regarding helping to promoting a Gospel show at the 2009 State Fair.  Mr. Lester shared information with the Board regarding a special conference for Baptist Ministers that would be coming to the metropolitan area just after the Labor Day weekend.  Mr. Lester suggested we could draw from this crowd if we were to host a big name Gospel festival at the Fair on the 1^st Sunday of the month (Labor Day weekend).

MSF Staffing Update - Mr. Porter took a moment to recognize Pat Boyer, a contractual staff member who recently agreed to return for the 2009 State Fair.  Pat coordinates the Daily Parade, the Volunteer department, the Grounds Entertainment dept, Children's Contest Corner, Senior's Day activities, outdoor vendors, fundraising efforts, the parking lot attendants, and a host of other Fair duties.  Mr. Porter complimented Pat for her great commitment and dedication to the Fair and he expressed how happy he was to welcome her back.  Mr. Porter also commended Daryl Love and Scott Ruthenberg for their hard work and efforts in maintaining the grounds, even after hours, when problems occur at the site.

Mr. Porter introduced Marlita Blackman and Carmen Carter, President and Vice President of DMC Worldwide, the new marketing and advertising firm for the 2009 State Fair.  Marlita  thanked Mr. Porter and the Board for having them and she stated their goal is to make this a bigger, better and best State Fair ever, by making sure all larger variety of  media relations throughout Michigan will be involved with promoting the Fair.  She stated they have also been able to secure a few new sponsorship agreements for the Fair.  These new agreements include a $150,000 sponsorship with Art Van, a $50,000 agreement with Mr. Alan's, and an ATM sponsorship for $40,000.  Marlita shared a brief story regarding how she came about contacting the Art Van organization after recently catching an Art Van furniture commercial on television.  Mr. Porter complimented and thanked Marlita and Carmen for the great job they have been doing and their efforts in bringing in more sponsorship monies for the Fair.

General Comments - Mr. Porter stated the responsibilities of handling tenant/lease arrangements, utility bill and rent payments and all other interactions as it relates to lease extensions or questions concerning the closure on lease agreements has been turned over to the DMB Real Estate Division and Financial Services department.  Mr. Porter thanked Mr. Burns for how he has been handling these matters in such a positive and more personal manner.  Instead of simply sending a letter or notice to the various tenants and stakeholders of the Fairgrounds, Mr. Burns came and met face to face with each of the tenants who were available to meet at that time.

Mr. Porter gave a brief report on a construction company doing business on the Fairgrounds in the south/east end of the Softball City parking lot.  The contract for this company expired years ago, but the company continue to drive onto the Fairgrounds hauling and transferring dirt back and forth from the Fair site.  Mr. Porter has asked Daryl Love, MSF Facility Manager to look into the dollar amount for an In-kind agreement that may be worked out with the construction company that will be to our advantage, as we wait for them to remove all of the piles of dirt off our property.  Mr. Porter stated the company can provide dirt removal services to the Fair as it relates to taking dirt in and out of the Coliseum for our Fair horse shows and leveling the Softball City parking lot with gravel.

Mr. Porter stated we are reviewing our various contractual agreements that have an option to extend or re-bid and for cost-cutting measures, we may want to consider sending some of these services out to bid for the 2009 State Fair, such as the lights and sound contract and the medical health and ambulance service contract.  Mr. Porter agreed to bring back more information on contracts at the next meeting of the Board.

A special Head Start school event was held at the Fairgrounds earlier today.  This event took up 100% of the parking in both the Administration and Community Arts parking lots and cars were also parked in the bandshell arena and along the street in front of the Grant House.  Mr. Porter shared details as it relates to this wonderful educational family program.

Mr. Porter shared a Resolution he received from Lakeview Public Schools expressing their support for the continuation of the Michigan State Fair. Mr. Porter presented and read the Resolution to the Board.  The Resolution was addressed to Governor Granholm and copied to Mr. Porter. 

OLD BUSINESS

Mr. Porter stated he was on air with WJR and WWJ Radio this morning announcing the details of the Community Forum for this evening.  The Board reviewed the Agenda for the today's Community Forum and discussed at length the format for how the meeting should run.  Mr. Burns stated DMB Director Lisa Webb Sharpe would be here to provide a power-point presentation which should answer many of the questions asked by Board members, citizens of Michigan, supporters of the Fair, State Fair stakeholders, tenants and others.  Mr. Burns stated Kim Trent of the Governor's Southeast Michigan office would also like to share comments and remarks on behalf of the Governor at the conclusion of the Director's presentation.  The floor would then be open for public comment and questions.  A discussion was held regarding the order in which speakers would be called to the microphone for public comment.  The Board agreed elected officials, Fair tenants and then the general public should be the order of the speakers.  It was also agreed that a second meeting would be scheduled if today's 2-hour session did not allow enough time for all comments to be received.  Pat Boyer agreed to quickly prepare question and comment cards to be distributed to public participants and this would help to ensure that all questions were addressed and comments received.  The Board agreed each speaker, regardless of status, would be given equal amount of time to speak (3-minute limit).  The Board agreed to arrive at the Community Arts Auditorium at least 15 minutes before the start of the meeting and would share with Chairman Gaffney the order of the Community Forum meeting.

NEW BUSINESS

Mr. Lester expressed his frustrations and concerns as it relates to the closing of the Fairgrounds and the discontinuation of the current lease agreements.

Mr. Burns responded to Mr. Lester's concerns as it relates to the leasing of the Fairgrounds.  He stated that over the last few months, DMB Financial services has been working very closely with Fair staff members and Mr. Porter to dig into the financial history and records of the Fair to try to understand and come to some conclusions whether or not it made sense for the tenants to remain here after the end of the fiscal year assuming there be no future Fair held at this location and probably little or no staff members.  Mr. Burns stated it was determined there would be no financial benefit to the State to keep the tenants here once the Fair concluded and in many cases, the State would only be subsidizing the tenants.  He added that because these agreements have 90 to 120 day clauses to provide notice of termination on the lease, and assuming there would be no future Fairs held at this site, DMB felt it was necessary to provide the tenants as much notice as possible and notify the tenants that normally leave the Fair before the start of the Fair in August, that there was no need to return in September once the Fair concludes. In an Executive Order presented by Governor Granholm in February, The Governor ordered the positions of the State Fair General Manager and the State Fair Authority Board of Director's be abolished as of October 1, 2009.

Mr. Haarer presented to the Fair Manager and Board a special "Thank you" letter and gift on behalf of the Michigan Youth Livestock Scholarship Fund for the Fairs past support of the Livestock Auction. A beautiful illustrated "American Farmer" Book accompanied the warm letter of thanks and appreciation.  A buyer brochure for the 2009 Michigan State Fair Livestock Auction, being help on Wednesday,

 September 2 at noon, was also included.

 PUBLIC COMMENT

Ed Bullock of ICARE, resident of Hazel Park, questioned what ever happened to the Old Softball City program at the Fairgrounds and did the State collect monies from these activities.  Mr. Bullock complimented the softball program once held at the Fairgrounds and stated it would be nice to see something of this sort come back to the city.  Mr. Bullock also questioned when the profit and loss statement for the 2008 State Fair would be released.  Peggy Fletcher stated the report should be on-line over the next couple weeks and Mr. Bullock would be able to go onto his computer and find the report listed under the Fair's 2008 Audit section.

Irene Zagar of ICARE, questioned whether or not there was any stimulus monies available to help support the continuation of the State Fair.  Mr. Porter stated he was not aware of any funding available but he suggested Ms. Zagar or anyone interested could contact Lansing and look into this matter further.

Danny Huston of NAME (North America Midway Entertainment) ride and games provider thanked Mr. Porter and the Board for the opportunity to speak before them today and would look forward to a more extensive presentation at a future meeting.  He also thanked the Board for the opportunity to work with the State Fair this year and will look forward to working with us in the future. Mr. Huston stated that in April he sent a letter to DMB with regards to requesting that certain modifications be made to their 3-year contractual agreement with the Fair. Unfortunately the State has not responded to the information or request made by NAME.  Mr. Huston stated that the Governor's announcement to close the Fair has created a very challenging task for NAME and he feels the contract was agreed by NAME based on misleading information.  Mr. Kelly explained the details of their request.  Mr. Huston expressed his appreciation for the Board's position and all that they must deal with as it relates to the Governor's recent decision.  He added that NAME remains very enthusiastic and excited about the opportunity of working with the Fair and making this a very beneficial and first class event for everyone.  Mr. Burns agreed to follow-up with this matter. 

DATE for NEXT MEETING OF THE BOARD

The next meeting of the MSF Authority Board was scheduled for Wednesday, May 13, 2009, beginning @ 1:30 p.m., in the Administration Building, at the State Fairgrounds.

ADJOURNMENT

ON MOTION by Mr. DeCock, supported by Mr. Lester, and carried the meeting of the MSF Authority Board was adjourned at 5:00 p.m.