MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

July 15, 2009

Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mr. Mark T. Gaffney, Chairperson, on this date, beginning at 1:03 p.m., 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

                   Elaine Driker, Former Director, Detroit Orientation Institute @ WSU ( via Conference call)

                   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

                   Reverend Loyce Lester, Representing the Business Community

                    Jeff Haarer, Representing Don Koivisto, Director of MDA

                   Robert G. Porter, MSF General Manager

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

                      Robert Burns, Representing Lisa Webb Sharpe, Director of DMB

Also Present:   Peggy Fletcher (MSF Finance), Daryl Love (MSF Facility Manager), Jeff Hayton (MSF Business Manager), Carmen Carter (DMC Worldwide Marketing), John Kelly (Representing NAME),  Dr. Iloni Iloni Wilks (ICARE and Gospel Fest Coordinator), Byna Camden (ICARE),  Donna Vance (ICARE) Eugene Kondash (Strong State Fair Supporter and Community Arts Volunteer) and Johnnie Bennett (MSF Secretary).

ACCEPTANCE OF AGENDA and APPROVAL OF MINUTES

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

ON MOTION by EJ Brown, supported by Mr. DeCock, and carried, to approve the minutes of the meeting held on April 22, 2009.  The previous minutes were reviewed and approved. The MOTION was unanimously passed.

CHAIRMAN'S COMMENTS

Chairman Gaffney welcomed everyone to today's meeting of the Board and then offered brief comments before turning the meeting over to Mr. Porter.

The House of Appropriations process has voted to put money back into the budget for the 2010 State Fair.   The Senate Appropriations committee has not, to date, acted on this process.  There has been no indication the Governor's Administration has changed their position on the closing of the Fair at this time, but communications are still taking place.  Chairman Gaffney thanked and commended Senator Buzz Thomas and his staff for their efforts in reaching out to various organizations that "may be" interested in public, private partnerships, long-term leasing or purchasing Fair property.  Chairman Gaffney stated he and Senator Thomas have made presentations before various groups, i.e. Palace Entertainment and the Illitch organization, but no one at this time has come forth and expressed interest in moving forward.  Chairman Gaffney was happy to report there are groups, such as Senator Thomas and other members of legislation who are involved in seeking potential developers and partners interested in supporting the Fair.

MANAGER'S REPORT

Mr. Porter stated he has received potential proposals from individuals interested  in saving portions of the Fairgrounds.  He has discussed these proposals with Chairman Gaffney and feels that it may be worth looking into further.  Mr. Porter stated Jack Dempsey, Michigan Historical Society, has expressed an interest in saving the Ulysis Grant House and the World's Giant Garland Stove and he has also stated his support for keeping these historical displays at the nations oldest state fair, our Michigan State Fair!

Mr. DeCock questioned what the role of the Board would be should a group express an interest in moving forward in developing a long-term partnership with the Fair.  Mr. DeCock shared his concerns as it relate to various steps which may be overlooked if there was not a process or procedure in place that highlights this order of business should a great proposal be presented.

Chairman Gaffney explained what steps may be included in this process. He said first the interested party would want to review the books for the facility and they would also want to talk to MEDC, MEDA, DMB and the Governor's office for information regarding tax breaks, stimulus monies and various funding options and development details. Chairman Gaffney stated he would hope the group would also want to come in and discuss their proposal with the State Fair Authority Board.  He stated time is of the essence since the Governor's Executive Order called for the abolishment of the General Manager's position and the State Fair Authority Board of Director's position as of October 1, 2009.

Reverend Lester expressed his frustration with the lack of information openly being shared as it relates to the future of the Fair. Chairman Gaffney explained there are still people within the administration who propose selling the property to a private industry and he stated he has no knowledge of any locked deals for the Fair at this time . 

NON FAIR EVENTS - The Detroit City Council recently held a meeting at the Fairgrounds and expressed their strong support for saving the Fair and keeping it at its present location in Detroit.  Mr. Porter stated three council members very adamantly reported on information found in the State Fair deed which indicate the fairgrounds would be used annually to host the Fair and this was a special agreement included in the original deed for the property.

The Hob Nobble Gobble will once again take place at the State Fairgrounds on November 25 ^th , the night before the Detroit Thanksgiving Day Parade.

The Ring of Honor Wrestling event has a tentative approval from Lansing to hold their event on December 4, 2009 at the State Fairgrounds and they have already begun selling tickets for this attraction.

The decision to honor the contract for Peak's Lumber Auction has not been confirmed at this time.  If approved, the lumber auction would take place at the fairgrounds this Fall. Mr. Porter stated Little Caesar's Ice Hockey also approached DMB and requested an extension on their lease and were denied.  Mr. Porter stated he has not received any information as it relates to who will facilitate and manage these non-fair events once the facility is shut down on October 1, 2009.  Mrs. Driker questioned what will be the appearance of the fairgrounds once the gates are closed in October. Mr. Porter stated he will look into these and other matters "in the near future."  He reported that the present lawn care service contractors, Worry Free, will be in place and mowing the fairgrounds every two weeks before and after the Fair, therefore the grounds should look fairly well.

Carmen Carter, Vice President of DMC Worldwide Marketing firm gave a brief report on the various radio, television and media relations who came out and supported today's State Fair ticket give-away which took place earlier today in the Woodward parking lot.  Ms. Carter stated this special promotional event was very successful and 1000 State Fair tickets were passed out, State Fair t-shirts and souvenirs were sold and over $300 was  received for special advance sale tickets.  Mr. Porter highlighted other Fair promotions that are now being developed and will soon be seen throughout the State. 

Mr. Porter briefly shared information as it relates to the State Fair finances. He stated we are looking at a short-fall of over $600,000.  This deficit is primarily due to sponsorships being down by approximately $400,000 and the Executive Order which removed $203,000 from the State Fair premiums/prize monies.  Mr. Porter was happy to announce that after numerous discussions with Lansing, the State Fair will pay out premium monies to each of the exhibitors.

Mr. Albright expressed his concerns as an exhibitor.  He explained his concerns as he is aware of the fact that the State Fair does not hold their own check book and Bob Burns of DMB has stated to Mr. Porter that he may legally be in violation of the Executive Order which calls for the elimination of Fair premiums.  Mr. Porter stated that while DMB has not given us anything in writing to guarantee financial support for paying premiums to the 2009 Fair exhibitors, Mr. Porter assured the Board that other monies within the Fair's budget will be used to cover this expense.  Peggy Fletcher offered a detailed explanation as to how this process worked in the past and how we foresee it working this year.  A discussion was held at length regarding paying premiums.

ON MOTION by Mr. Albright, supported by EJ Brown, and carried, to transfer funds from other areas of the budget to pay premiums to the various exhibitors. The State Fair Authority Board has indicated they would like to have premiums paid out to the State Fair exhibitors before the various vendors and contractors receive payments for their services.  The Board indicated they would like DMB to make a commitment to pay premiums in full prior to October 1, 2009.  The MOTION was passed unanimously.

2009 STATE FAIR EVENTS - Super Kicker will host a free rodeo at the Fair this season.  The Budweiser Clydesdales are back.  There's a great herb garden presently being developed as a new display for the upcoming Fair.  

The Detroit "Bring It" contest will take place at the Fair on Saturday, August 29 ^th .  Mr. Porter compared this event to the American Idol and is being promoted by Detroit City Council member, Kwame Kenyatta.

Daryl Love, MSF Facility Manager has requested additional staffing to assist with preparing the grounds and buildings for the upcoming Fair.  Mr. Porter highlighted many of the special tasks that need to be completed before opening day.

The sound, light and stage contract, the medical service contract and the landscaping contract have all been reduced in cost.

Dr. Dan Grooms will promote and manage the Miracle of Life Birthing Exhibit at the same location as last year with more agriculture exhibits surrounding this area. 

There will not be a Governor's Day Luncheon taking place at this year's Fair.  The Livestock Auction is still being planned and there will be a reception with refreshments for the auction participants.  Jeff Haarer thanked the Board for their support at the 2008 State Fair Livestock Auction and invited them to participate once again as buyers at this year's Livestock Auction, which will take place on Wednesday, September 2, 2009.

A discussion was held regarding the present circumstances of the Fair tenants.   Mr. Porter stated the Equestrian Club (Christopher Ewing) has been asked to remove his horses from the Dairy Barn as we are now in the process of preparing the stalls and building for the Fair.

2009 ENTERTAINMENT UPDATE - Mr. Porter gave the 2009 State Fair Entertainment line-up.  Johnnie agreed to forward a copy of this information to the Board members.  This full line-up of entertainment will soon be available on online at our State Fair website:

GENERAL COMMENTS - Mr. Porter briefly shared information concerning a lawsuit against the State Fair involving stolen merchandise at one of the big liquidation shows held in the Community Arts Building. The claim is that the Fair did not provide ample security for the building once the weekend show shut down for the day.  Mr. Porter stated he was not able to offer more information because he had only received the Attorney's letter on yesterday.

FINANCIAL REPORT

Peggy Fletcher distributed an up-to-date financial report for the Board's review.  After answering questions raised by the Board and giving a detailed report, Peggy then suggested the Board contact her or Mr. Porter should they have any additional questions or concerns after today's meeting.  The Board received today's Financial Report and thanked Peggy for her dedicated efforts and hard work.

John Kelly, representing NAME (North America Midway Entertainment) greeted the Board and thanked them for the opportunity to participate in today's meeting.  Mr. Kelly expressed NAME's disappointment with the lack of cooperation and communication from the Governor's Administration as well as DMB.  He stated NAME has left several messages with Administration but as yet to receive any response.  NAME is very disappointed and feels they have been treated very disrespectfully. 

Mr. Kelly suggested that the Board possibly extend a special invitation to the Governor, Lt. Governor and/or the Attorney General to come and visit the 160 year old family tradition that offers great entertainment for residents throughout all of Michigan.  He also suggested we update the State Fair website with fresh and exciting information.  Mr. Kelly stated NAME is hoping that the Board would offer some assistance with putting a little pressure on Lansing as it relates to offering support for NAME's efforts and the success of our upcoming State Fair.  The Board thanked Mr. Kelly for his remarks and commitment.

OLD BUSINESS

There was no old business to report.

NEW BUSINESS

Mrs. Driker shared information concerning the cutting of the grass on the medium of Woodward Avenue between 6 and 8 Mile Road.  Mr. Porter and Chairman Gaffney agreed to contact Worry Free Landscaping and MDOT for assistance in this matter. 

Mr. Porter has reached out to three county leaders with regards to the Opening Day Ribbon Cutting Ceremony on Friday, August 28, 2009.

 PUBLIC COMMENT

Byna Camden stated ICARE is in the process of formalizing a special proposal for the future development of the Fairgrounds.  She stated a draft of their proposal will soon be presented to the Board members for their review and support.

Dr. Iloni-Iloni Wilks thanked the Board for their continued support of the Gospel Fest activities to take place at the Fairgrounds on Sunday, August 30 ^th  in the Bandshell arena.  She especially thanked Rev. Lester and Mr. Porter for their efforts and participation in coordinating the entertainment for this special day of Gospel music.

Mr. Kondash, a long supporter, volunteer and local resident of the State Fair thanked the Board for welcoming him to participate in today's meeting and for all the hard work they were doing to save the Fair.  Mr. Kondash's mother, Katherine Kondash won numerous awards and received countless acknowledgments for the many wonderful entries she made as a Fair exhibitor in the Community Arts section.

Chairman Gaffney concluded today's meeting with a special thanks to Mr. Porter for his hard work and encouraged him to take care of his health first and foremost.  Chairman Gaffney highly complimented the State Fair Staff tor their hard work, dedication and commitment. He encouraged everyone to keep up the good work and remain motivated, as we move closer to the opening of our 2009 State Fair. 

DATE for NEXT MEETING OF THE BOARD

The next meeting of the MSF Authority Board was scheduled for Wednesday, August 12, 2009, beginning @ 1:30 p.m., in the Administration Building, at the State Fairgrounds.

ADJOURNMENT

ON MOTION by Mr. Lester, supported by EJ Brown, and carried the meeting of the MSF Authority Board was adjourned at 5:10 p.m.