MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

January 17, 2007

Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mr. Edward Deeb, Vice Chairman, on this date, beginning at 12:30 PM, in the Administration Building, Conference Room, at the Michigan State Fairgrounds, 1120 W. State Fair Avenue, in Detroit.

PRESENT: Mark T. Gaffney, President Michigan AFL/CIO

Edward Deeb, President & CEO of MI Food & Beverage Association

Thomas G. Coon, Ph.D., Professor and Director of MSU Extension

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

Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

Monique Field, Representing Lisa Webb Sharpe, Director of DMB

Barbara Hensinger, Representing Mitch Irwin, Director of MDA

Tim Jenkins, MSF Interim General Manager

ABSENT: Robert G. Porter, Mayor of the City of Ferndale

Pat G. Albright, Owner of Albright Farms

Also Present: Pat Boyer, MSF

Heather Carmona, Woodward Avenue Action Association

Iris Lopez, Office of the Attorney General

Byna Camden and another person from the surrounding neighborhood

ACCEPTANCE OF AGENDA and APPROVAL OF MINUTES

ON MOTION BY Mr. Coon, supported by Mr. DeCock, and carried, the Agenda for today's Board meeting was accepted.

The minutes of the meeting held on December 18, 2006 were reviewed. ON MOTION BY Mr. Coon, supported by Mr. DeCock and carried, the minutes were approved with the following amendment:

Mrs. Driker asked that the 2nd paragraph on Page 3 of the December 18, 2006 minutes would be changed to reflect the statement she made concerning her involvement with the Detroit Executive Service Corps. The following changes will be made: Mrs. Driker shared how she participated in a strategic planning process led by two consultants from the Detroit Executive Service Corps for Hillel of Metro Detroit and that it involved four 2-hour meetings to put together a strategic plan for a smaller scale, less complex organization. Mr. Deeb stated that he sits on the DESC Board and it was suggested that we also invite someone from this group to come in and discuss with the State Fair Board the possibility of working together to create the five-year plan for the Fair.

Mrs. Driker also noted that a correction should be made to the spelling of "Core" on Page 3, paragraph 3 (ON MOTION BY), the spelling should be changed from Core to Corps. The Minutes passed unanimously with these changes and corrections.

CHAIRMAN'S COMMENTS

Mr. Deeb, Vice Chairman of the Board, welcomed everyone to today's meeting of the Board and he thanked all for serving and being a part of the team and ongoing efforts at the State Fairgrounds. Mr. Deeb asked the Board and all present to go around the table and introduce them selves and then he stated "It's going to be a great year for the Fair!"

Presentation by Woodward Avenue Action Association:

Ms. Heather Carmona, Director of the Woodward Avenue Action Association gave a detailed overview of her organization and what their goals are for the upcoming year. Ms. Carmona shared information on the "Hands Along Woodward" event which they have planned for this summer 07' and she spoke briefly about how this event could work well with our annual Fair in helping to attract and bring additional people to the Fair who normally wouldn't come. "Hands Along Woodward" is the signature event celebrating the 200th anniversary of Woodward Avenue and Ms. Carmona stated that a variety of special events will be taking place this summer to lead up to this one big celebration. It has been estimated that forty thousand people will line Woodward Avenue to join hands for the "Hands Along Woodward" celebration day.

Ms. Carmona stated that the Woodward Avenue Action Association would love to work with the State Fair and explore new ideas and possible strategies for encouraging more people to frequent the Fair and Woodward Avenue businesses. She shared some of the unique ideas and events her group has discussed and how these special events and associations may prove to be very successful. Ms. Carmona talked briefly about "Shop Woodward" and how various business owners along Woodward Avenue partnered to give special discounts and savings to anyone who shopped Woodward Avenue. She stated that there are eleven communities on board with the special "Hands Along Woodward" event coming this summer and she invited the State Fair to join these efforts and possibly become a member of the association.

A discussion was held regarding whether or not the Fair would partner with the Woodward Avenue Action Association, and if so, what would be expected and required of the Fair Board in terms of meeting times and membership fees. Ms. Carmona agreed to forward an application to the Fair Board for their consideration. The Board thanked Ms. Carmona for her very informative presentation and stated they would look forward to receiving the application and membership packet from her soon. It was further suggested that the Board discuss this more with Mayor Porter of Ferndale who may be able to offer good background on the association.

Presentation by Detroit Puppet Art Theater:

Mr. Jenkins introduced Igor Gozman and Sharon Elliot presented a proposal to the Board for a lease of the State Fair Community Arts Auditorium for the Puppet Art Theater and Museum.

Mr. Jenkins suggested to the Board that they only receive today's presentation, but that they would hold off from making any recommendations or decisions at least until the next meeting of the Board. Mr. Jenkins stated further discussions regarding optional building rental and more lease details should take place before any final decision is made with the Puppet Art group. Mrs. Driker stated she attended a couple of the Puppet Art shows and she considered the program to be a first class organization. She stated that she would like to see more specifics on what it will take to bring the buildings up to the level of what they would need to operate and hold their family oriented events here at the Fairgrounds. A lengthy discussion was held regarding modifications that would have to be made to the Community Arts Auditorium, concerns with the building, as well as how the lease agreement could benefit both parties. Mr. Jenkins agreed to continue discussions with this group as it relates to the possibility renting another building (the General Motors Pavilion) for their Puppet Art and theater activities. The Board thanked Igor and Sharon for their presentation today.

INTERIM MANAGER'S REPORT

Recommendations and changes for 2007 Fair: Mr. Jenkins distributed a list of recommendations/changes that the State Fair staff has proposed and would ask the Board's approval today.

Admission: The State Fair staff made the following recommendations: Increasing adult gate admission from $9.00 to $10.00, increasing children (ages 3 - 12) gate prices from $4.00 to $5.00, and changing the senior citizen (62 years of age and older) gate admission from $9.00 to $5.00 daily. Also included under admission was a recommendation to set the seasonal gate pass at $35.00 for adults and $10.00 for children (3 - 12 years of age). An early seasonal gate admission pass was suggested, if purchased before July 15, 2007. This early pass would cost $25.00 for adults and $5.00 for children. This is the same price of the seasonal gate passes sold at the 2006 State Fair.

The Fair staff recommended that the special hours for Free Admission for seniors (62 +) on Senior Citizen's Day and all military w/proper ID on Armed Service Day, be changed from 10:00 a.m. until 3:00 p.m. to All Day (10 a.m. to 10 p.m.) on both days.

ON MOTION BY Mr. Coon, supported by Mr. Deeb, and carried, to accept and approve the recommendations and changes for the 2007 Michigan State Fair.

Detroit Executive Service Corps Report: Mr. Jenkins distributed a packet of information that he received from the Detroit Executive Service Corps (DESC). He reported on his communications with one of the Directors of the DESC.

They have agreed to have two of their representatives come in and meet with a couple of our Board members over the next two weeks, if possible. Chairman Gaffney, Mr. Deeb and Director Coon all agreed to sit on this sub-committee and take part in the initial meeting and discussions with the DESC.

Ongoing staff meetings with DMB and Auditors: Mr. Jenkins reported on the ongoing meetings with State Fair staff with DMB and the auditors.

A LENGTHY DISCUSSION WAS HELD regarding the ongoing examinations of the current expenditures and revenue and working together to bring the 2007 revenue in line.

OLD BUSINESS

The One Year Plan - Chairman Gaffney suggested that we do not attempt to do anything with the five-year plan today, but instead we should spend this time concentrating only on the one-year plan. The ten topics listed on page 4 of the December minutes were used as the basic guide and direction for this lengthy discussion on the one-year plan. Chairman Gaffney questioned whether or not a detailed budget report should be included with the one-year plan and if so, should the budget be attached at the end or front section of the plan. It was decided that the one-year plan should be a narrative and a budget with specific line items would not be included. The Board agreed to include a general overview of the anticipated revenue and expenditures with highlighted recommendations to the Fair Director and staff for the Fair.

The meeting was held for a 20-minute break at 2:35 p.m.

The regular meeting of the Board reconvened at 2:55 p.m.

There was a lengthy discussion, involving all Board members present, on the various components of the one-year plan that included suggestions for improvements, repairs, increasing revenue and recommendations necessary for the future success of the Michigan State Fair.

NEW BUSINESS

Mr. Jenkins reported that he met with a group who has proposed a special partnership with us for the annual Fair. This proposal stated they would put together our lights, sound and staging for the nightly Fair concerts at a savings of 50% less than what we paid for this service in the past. In exchange, we would then allow them to hold, at their own expense, additional summer concerts five weeks prior to the annual Fair. These concerts would be held outdoors in the Band shell arena and the group would be responsible for all of the promotions and advertisements for these concerts. Mr. Jenkins distributed a copy of the tentative, proposed line-up of entertainment for this year's annual Fair in August. He stated that no agreement has been made concerning this new proposal for summer concerts and he added that he has fully explained to the group that the Authority Board must first approve their proposal before they can hold an event at the Fairgrounds.

Chairman Gaffney asked who on the Fair staff is responsible for the every day rental of the Fair facility? Mr. Jenkins responded and stated that Daryl Love and Scott Ruthenberg will soon be taking over much of the responsibility in this area. He added that Scott has agreed to go out and solicit new vendors, exhibitors and year round rental arrangements. Mr. Gaffney suggested we consider approaching Rock Financial for sponsorship support. He stated that this might even be a consideration for a special sponsorship arrangement for the annual Governor's Luncheon. Mr. Jenkins stated we are now looking at our catering contract. Our current caterer also holds the concession contract and we may want to consider a new agreement at a later time. New potential partners and sponsorships will be pursued.

PUBLIC COMMENT

Comments were received from the public that included concerns over the loud, blaring sound of music that comes from the Fairgrounds in the evenings during the various evening concerts. It was suggested that a better sound system could be obtained and the amps on the speakers could be adjusted to eliminate most of this problem.

Byna Camden expressed her concerns as it relates to the Community Arts Building, the Agriculture Building, the Farmers Market, and other exhibitors/vendors being closing so early in the evenings while the Fair is still open. She stated that it was very disappointing to see the buildings closed before 10:00 at night and she hoped that something would be done to resolve this matter. Mr. Jenkins assured Ms. Camden that we have asked the vendors/exhibitors to keep their displays open until 10:00 p.m. and we will continue to look into how we may better coordinate the Fair gate hours with the operating hours for the various buildings and exhibitors.

DATE for NEXT MEETING

The next meeting of the Michigan State Fair Authority Board was scheduled for Wednesday, February 14, 2007 beginning at 1:30 p.m. in the Conference Room, Administration Building, at the Michigan State Fairgrounds, in Detroit.

Future meetings of the Michigan State Fair Authority Board of Directors are as follows:

Wednesday, March 14, 2007 @ 1:30 p.m.

Thursday, April 19, 2007 @ 4:00 p.m. with the Neighborhood group @ 5:30p.m.

Wednesday, May 9, 2007 @ 1:30 p.m.

Please note on April 19, 2007 the Board of Directors will meet at 4:00 p.m. in the Conference Room of the Administration Building and the 5:30 meeting with the local neighborhood group will take place in the Community Arts Building (next door to the Admin. Building).

ADJOURNMENT

Due to the lateness of the hour and without a formal call for adjournment, the meeting ended at 4:30 p.m.