Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mr. John C. Hertel, Manager, on this date, beginning at 1:40 PM, in the Administration Building, Conference Room, at the Michigan State Fairgrounds, in Detroit.

APPROVAL OF MINUTES

The minutes of the meeting held on April 27, 2005 were reviewed. On Motion by Mr. Deeb, supported by Mr. Gaffney, and carried, the minutes were approved as written.

Mr. Albright requested that all future meeting minutes be sent to the members prior to the next scheduled meeting. It was decided that the minutes be sent to the Authority giving them at least 48 hours to review the report before the upcoming meeting.

MANAGER’S REPORT

Mr. Hertel stated that normally before he gives the Manager’s report, the agenda would hold a place for the Chairperson’s report, but because the Governor has not appointed a Chairperson for the Authority, at this time there is no Chairperson’s report to be made.

Mr. Hertel distributed the new 2005 Michigan State Fair Brochure to everyone. He stated that the cover picture on the brochure was taken from our 1947 Michigan State Fair Program book. He said that the 1947 State Fair was the 2^nd Fair held after WWII, and during the war the fairgrounds were used as a prisoner of war camp. The 2005 State Fair Brochure highlights livestock headed to the city of Detroit. The Authority complimented the attractive and creative Fair Brochure.

2005 STATE FAIR PLANNING – Mr. Hertel reported that we are running slightly behind schedule in terms of planning the upcoming Fair. He stated that because this is our 100^th Anniversary of the State Fair at its’ present location in Detroit, we are doing a lot more new and exciting things. He added that we have also had to spend a great amount of time on the transitional efforts moving from the Department of Agriculture (MDA) to the Department of Management and Budget (DMB). Mr. Hertel stated that DMB has been extremely helpful and cooperative in providing us with information early on and he stated that he has been extremely pleased with how DMB has welcomed us and made us feel so comfortable in our new department.

Mr. Hertel stated that it has also been time consuming for us this year because we are in a position where just about everything has to be put out for bids and we are still in a situation where we have a short fall of staff members. Mr. Hertel stated that after this year’s Fair, he would like to discuss with the Authority the possibility of hiring at least two additional staff members. Mr. Hertel stated that while this year’s Fair is slightly behind in terms of scheduling, he feels confident that we will have everything done in time for Opening Day on August 10^th.

Mr. Hertel was happy to report that we will be adding an Elvis Presley Fest to the Fair this year. He stated that there will be Elvis look-a-like contest, Elvis Karaoke events, and a tremendous Elvis display called “The King’s Ransom” with over 500 of items on display that were actually owned by Elvis. Mr. Hertel stated that there will also be an Elvis concert held in the Coliseum and he added that all of these events will take place on August 16^th, which is the actual anniversary of Elvis’s passing. Mr. Hertel stated that he is also considering talking to someone about selling peanut butter and banana sandwiches.

Mr. Hertel reported that our concert line-up is coming along well and he will be able to provide a list of entertainers and the cost for each concert at the next meeting of the Authority in June. He added that he would also share at that time, a full roster of the motorized events scheduled for the new Horse Power Heaven arena. This location was previously used to hold our nightly concerts. Mr. Hertel stated that it is important for people to know that moving the concerts into the Coliseum and re-locating some of the livestock exhibits is a one-time arrangement only in place for this year’s Fair.

Mr. Hertel then shared some not so good news with the Authority. He reported that while we have been very happy and grateful to have the Michigan Grape and Wine Industry Counsel provide us with free wine for the Governor’s Sponsorship Reception every year, he was very disappointed to announce today that the Grape and Wine Counsel has voted and decided to no longer participate in the Michigan State Fair. Mr. Hertel stated that this arrangement had been mutually beneficial to both parties. He then shared his efforts and recent communications that preceded the Grape & Wine Counsels decision to leave the Fair. Mr. Hertel said that it is a situation where we asked them to come and participate more by holding their wine judging and awards presentation at the Fair, like the various livestock groups and the variety of exhibitors in the Community Arts section, but unfortunately the Grape & Wine Counsel chose to continue holding their presentation of awards in Lansing. Mr. Hertel stated that we have always allowed the Counsel to use our Michigan State Fair name and logo on their printings and invitation s and we also sanction them. Mr. Hertel felt that it was only fair that they would come and be a real part of the Fair. Mr. Hertel stated that after contacting them about moving their wine judging and awards program to the Fairgrounds, he did not hear from them for a long time. Mr. Hertel stated that he was amazed and very disappointed when he did finally hear back from Linda Jones and learned of their decision to no longer participate. Discussion was held regarding having a board member or members make contact with the Michigan Grape and Wine Industry.

Mr. Hertel then shared some good news with the Authority. He was happy to report that with the assistance of Senator Carl Levin’s office we will be holding a First Day Commemorative Stamp event at the Fair this year. Mr. Hertel stated that this extremely colorful, and well-decorated event will be held inside the air-conditioned Coliseum on Saturday, August 20^th, during the Woodward Dream Cruise weekend. Mr. Hertel stated that the United States Post Office will be issuing four new commemorative stamps featuring American Automobiles. He added that there will be lots of media coverage and the Fair will be the only place where people can get a post-marked First Day Stamp.

Mr. Hertel reported on another good piece of information. He stated that we are presently negotiating a co-partnership arrangement with the Detroit Tigers where they will promote and highlight our 100^th Michigan State Fair at one of their baseball games held at Comerica Park. Negotiations and finalizing details regarding this agreement will be pursued.

Mr. Hertel reported that almost all of our previous sponsors have agreed to return for the 2005 Fair. He added that although we are slightly down at this point in our sponsorship dollars, our relationships are strong and intact. Discussion was held regarding various corporations and companies that could be contacted for support. Mr. Hertel reported on the situation with Blue Cross-Blue Shield last season and how they originally stated that they would no longer be able to fund the Miracle of Life Exhibit. So we moved DaimlerChrysler in and they filled in for Blue Cross-Blue Shield. We then moved General Motors into Chrysler’s position, and AAA filled in for General Motors. Mr. Hertel stated that later after all of this was accomplished, Blue Cross Blue Shield came back with a portion of the money to sponsor the Fair. He stated that although we welcomed them back, we were unable to give them the main sponsorship for the exhibit. Discussion was held regarding how sponsors are compensated for their contributions and support.

Mr. Hertel reported on a call that he received this morning from Monique Pointer and then from Matthew Keck in the Attorney General’s office. Mr. Hertel stated that he has been advised that the State Fair will soon be charged a fee for the Attorney General’s annual services to the Fair. Mr. Hertel stated that he was especially surprised to receive this call today since when he met with the Attorney General’s office yesterday concerning finalizing the Golf Dome & Entertainment Project, this subject never came up. Mr. Hertel thanked Monique Pointer and the Attorney General’s office for moving so quickly on the lease arrangement, but he expressed his great concerns with the phone call that he received today and how this will affect our projected budget. It was reported that the Fair will be charged for administrative services by both the Department of Agriculture and the Department of Management and Budget. Discussion was held at length regarding this matter.

PROPOSED BUDGET 2005 – Mr. Hertel introduced Peggy Fletcher, Michigan State Fair Financial Accountant, who then gave a very detailed and thorough 2005 Projected Budget Report. The projected budget presented showed a small projected profit, however this was printed before the new charges just announced in the morning by the two departments.

ON MOTION BY Mr. Deeb, supported by Mr. DeCock, the Budget was approved reflecting the shortfall created by the new administrative charges. The motion was approved with Mr. Valliere voting no.

OLD BUSINESS

Mr. Hertel stated the lease for the Golf Dome and Entertainment Center is almost final and he is hopeful that the contract will be signed next month. Mr. Hertel stated that we are now ready to begin moving forward on other lease negotiations. He then distributed a draft of the proposed Michigan State Fair Ad to be placed in various newspapers throughout Michigan, inviting and encouraging anyone interested in long-term leasing and future partnerships to come in and begin discussions with us. The Authority reviewed the ad and discussion was held regarding it’s content.

ON MOTION BY Mr. Gaffney, supported by Mr. DeCock, to accept the concept of the Michigan State Fair Ad with the review and approval of the Governor’s legal staff before the Ad is placed in the papers. The motion was carried and passed unanimously.

NEW BUSINESS

There was no New Business to report.

PUBLIC COMMENTS

Various members from the public expressed their appreciation for being welcomed to attend the meetings of the State Fair Authority and in knowing that their comments and opinions matter in the decision making process for the future of the fairgrounds. The public expressed their strong opposition to new rail yards at the State Fairgrounds. Mr. Hertel stated that he has also made it very clear to reporters that the State Fair is not in support of the expansion project and that we have absolutely no interest in the proposal being made by the Michigan Department of Transportation (MDOT). Mr. Hertel stated that he was one of the three authors of the Michigan Open Meeting’s Act. He then thanked all who came and offered their support and cooperation in today’s meeting and the future plans of the Fairgrounds.

NEXT MEETING DATE

The next meeting of the Michigan State Fair Authority was scheduled for Thursday, June 16, 2005, beginning at 1:30 p.m., at the Kellogg Hotel and Conference Center, MSU, Room 62, at 55 Harrison Road, in East Lansing.

ADJOURNMENT

ON MOTION BY Mr. DeCock, supported by Dr. Coon, and carried, the meeting was adjourned at 4:01p.m.