MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS

Wednesday, May 10, 2006 – Minutes

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 2:45 PM, in the Administration Building, Conference Room, at the State Fairgrounds, in Detroit. 

PRESENT:     Mark T. Gaffney, Chairman of Board and President of Michigan AFL-CIO

Robert G. Porter, Mayor of the City of Ferndale

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

Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

Thomas G. Coon, Ph.D., Professor and Director of MSU Extension (via conf. Call)

Pat G. Albright, Owner of Albright Farms

Monique Field, Representing Lisa Webb Sharpe, Director of DMB

Melissa Rogers, Representing Mitch Irwin, Director of MDA

                        John C. Hertel, General Manager, Michigan State Fair

ABSENT:        Thomas L. Valliere, Manager, Midland County Fair

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

Karen Batchelor, Eisenberg & Bogas, P.C.

Also Present:     Tim Jenkins, MSF Assistant General Manager

                        Iris Lopez, State of Michigan, Attorney General’s Office

                        Surrounding neighborhood residents

ACCEPTANCE OF AGENDA

ON MOTION BY Mayor Porter, supported by Dr. Coon, and carried, to accept today’s meeting agenda.  The Motion was unanimously passed.

APPROVAL OF MINUTES

The minutes of the meeting held on April 12, 2006 were reviewed.  ON MOTION BY Mayor Porter, supported by Mr. DeCock, and carried, the minutes were approved as written.  The Motion was passed unanimously with the following additions and correction being made.

Mrs. Driker reported that at the top of page 3, the second group referred to should include not only representatives from political bodies, but also various businesses and other neighborhood groups.   Mrs. Driker also noted that the date listed on the April Minutes report should be corrected to read “April 12, 2006” instead of April 10.  

CHAIRMAN’S COMMENTS

Chairman Gaffney reported that two Commodity group meetings have now been scheduled.  He stated that he and Director Mitch Irwin will meet with the groups on Wednesday, May 24, and a second meeting is scheduled for Tuesday, June 13, 2006.   Mr. Albright agreed to represent Chairman Gaffney and the Authority Board at the Commodity meeting to be held on June 13, 2006.  Jeff Haarer agreed to be present for both of these very informative meetings.  Johnnie Bennett will send out a meeting notice to each of the Board members with the date, time and location for both meetings.

Chairman Gaffney thanked Mayor Porter and Elaine Driker for their hard work and efforts in putting together such a wonderful list of members to be included on the Local Neighborhood Advisory Council.  He also thanked the Board members for their support.  Chairman Gaffney stated that he is really looking forward to the meeting this evening with the local neighborhood group and he encouraged the Board members to also attend and take part in the meeting to be held from 5:00 – 6:30 pm, in the Community Arts Auditorium following today’s Board meeting.  Chairman Gaffney added that this meeting should prove to be a very informative and healthy experience for everyone. 

MANAGER’S REPORT

NEW LAYOUT – Mr. Hertel stated all of the pieces are now in place regarding the new layout for this year’s State Fair.  He added that the Fair would have to raise additional monies this year to pay for a new tent to be used for the Miracle of Life Birthing Exhibit.  He stated that the new tent would offer more open space, with no poles and the ability to roll up the sidewalls.  Mr. Hertel stated the new tent will be a much nicer venue and will offer a more comfortable atmosphere for both the fairgoers and the animals.  He encouraged the Board members to contact Dr. Dan Grooms of MSU for details, if they had any questions concerning the Miracle of Life Birthing Exhibit.  

Mr. Hertel reported that he recently met with Tom Cattron of the Detroit Department of Transportation (DDOT) regarding the details for the new Bus Terminal and State Fair pedestrian walk-thru and ticketing entrance to be opened on Woodward Avenue.  Mr. Cattron has indicated that all of the plans are moving according to schedule and the new ticket booths and gate entrance will be completed in time for the Opening Day of this year’s State Fair.  Mr. Hertel reported that Tami Salisbury, Director of the Eight Mile Boulevard Association has attended meetings with Mr. Cattron and she would also agree DDOT’s interest in this project is very great.  Mr. Hertel briefly spoke on the original lease agreement between the State Fair and DDOT.  He explained that if we were to ask DDOT to pay back the dues that are owed to us from the original lease, we would receive less than $100.00 because the lease was only for $1.00 per year and he added that the original arrangement covered a much larger area than what they are asking to use at this time.  Mr. Hertel stated that based on his communications with Mr. Cattron, the time-line for this project has them breaking ground on August 1, 2006.

Mr. Hertel reported the Habitat for Humanity group has agreed to return and increase their sponsorship from last year’s $5,000 to $30,000.  Habitat for Humanity will again build a home on site during the upcoming State Fair.  Mr. Hertel stated that at the conclusion of the Fair, the home would then be moved to a site south of the Fairgrounds in Detroit.  He added that this wonderful arrangement with Habitat for Humanity also provides good exposure for the Fair.

TICKET PRICES – Mr. Hertel asked the Board for approval to set up a seasonal gate admissions pass for both adult and child fairgoer.  He stated that the one-day ticket price for adults should remain at $9.00 and $4.00 for children-12 years of age and under.  Discussion was held at length regarding the possibility of establishing a seasonal gate admission pass for adults and children attending the upcoming State Fair.  Included in this discussion was the possibility of selling tickets off Fair property, possibly with a credit card through the computer and how important it is for us to advertise our new seasonal rates, special events and activities, and our new start dates.  

ON MOTION BY Mr. Albright, supported by Mr. DeCock, and carried, to set the price for an adult seasonal gate admission pass at $25.00 and $10.00 for children - 12 years of age and under.  Children 2 and under will remain free of charge.  It was further decided that the seasonal gate pass would be designed to include a 13-day hole punch for everyday of the Fair and this would help to ensure that each ticket will only be used by one person per day.  THE MOTION PASSED UNANIMOUSLY.

Mr. Hertel stated that we would like to offer more bargains at the Fair everyday this season and we are also hoping to put more money into advertising our new Fair dates, special ticket prices, and a host of new activities to take place every day at the 2006 State Fair.     He added that we are also talking with the ride company regarding having one price, ride all day wristbands available every day, including weekends at the Fair.   Mr. Hertel explained how in the past, wristbands were sold only through the week and there were two separate wristbands sold, one for daytime and then another for evening fairgoers.  He stated that our contract with Wade Shows, the ride and carnival group is a very wonderful contract and he added that Frank Zaitshik, President of Wade Shows, has also been very pleased with our arrangement.    

CONCERT LINE-UP – Mr. Hertel was happy to report that 2/3 of the musical entertainment has been signed for the upcoming State Fair and he added that while we are staying within our budget regarding grounds entertainment, we have decided to spend less money on our musical entertainment and we will use the saved monies on radio promotions and advertisements. Mr. Hertel stated that we will remain within our previous budget for television promotions and he emphasized we will not be using any additional or new money for any of our advertising, we will only use the monies saved on hiring musical acts.  Mr. Hertel stated that because we have changed our start date for the Fair, it is especially important this year that we get more announcements and advertisements out to the public making them aware of our changes.

Mr. Hertel gave a detailed overview of the concert line-up to date and added that this information should not be publicized just yet.  He added that we will not have any rap entertainers appearing at this year’s Fair but we will hold two hip-hop concerts on each Friday of the Fair.  Mr. Hertel reported that everything seems to be going well regarding our new concert concept and now we may be able to hold more concerts than we originally planned and we will also have an opportunity to spend more money this year on radio advertisements, plus we will actually be able to involve sponsors in booking various musical entertainment.  Mr. Hertel was happy to announce that Radio Disney has committed to spend $40,000 to book Raven Simone for the upcoming State Fair and he added that Raven Simone is the #1 actress appearing every Sunday on the Disney television channel.  Mr. Hertel stated that we have now entered into discussions and negotiations with production agencies regarding having them fully promote and sponsor concerts at the Fair.   He stated that we are discussing the possibility of holding a special concert night with Karen Newman who sang the National Anthem for many of the sport games and we may also have former players of the Detroit Red Wings come together and produce a special “Summer Slap Shot” show for Opening Day at the Fair.  Mr. Hertel stated these and other negotiations will be pursued.  He added that once again all of our concerts are free-of-charge with paid gate admission into the Fair. 

NEW OPPORTUNITY – Mr. Hertel reported on his recent communications with Gary Peters, Director of The Lottery Commission.   The Lottery Commission has agreed to put on all of their lottery tickets a special advertisement and promotional for the 2006 State Fair.  Mr. Hertel stated this is a very wonderful thing that the Lottery Commission has agreed to do, he added that each lottery ticket will announce the dates of the 2006 State Fair and a $2.00 discount on gate admission will also be included with the purchase of each lottery ticket, (one ticket–per person).  Mr. Hertel reported that the Lottery Commission spends more than $20,000 for their tent and electrical hook-up at the Fair.  He added that this new arrangement will help promote the Fair and will bring attention to the fact that the Fair is starting and it will also offer another great bargain for this year ’s State Fair.  Mr. Hertel stated he would be meeting with Mr. Peters tomorrow to discuss the details for this new arrangement.

OLD BUSINESS

Mr. Hertel reported that discussions continue with the Phoenix Theatre group and they may soon come in to discuss a few changes that they would like made in their lease arrangement with us.

Mr. DeCock questioned how the Milking Parlor was coming along.  Mr. Hertel reported that we have received some financial commitments and we are still hoping to receive additional funding for this project.  He added that President Gaffney has two labor unions committed $10,000 towards this project, and Tom Angott of C.F. Burger Creamery donates all of the chocolate milk and he also donates all of the money that is made from the milk.  Mr. Hertel reported that Mr. Angott has also committed to $10,000.  Mr. Hertel then stated that he would be happy to answer any additional questions concerning the Milking Parlor project outside of today’s Board meeting. 

Mr. Hertel reported that just recently a group made an offer regarding a long-term agreement with the State Fairgrounds and once this proposal is reviewed, he stated that he may then bring the offer to the Board members for their review and approval.  

Mr. Hertel distributed a copy of the Auditor General’s Report Summary.  Mr. Albright questioned the items listed on the Auditor General’s Report Summary and asked if the two findings had been resolved.  Tim Jenkins, MSF Asst. General Manager, offered details and information concerning the two items highlighted in the report.  The items noted by the Auditors were: 1) Some of the cars parked in the lots did not have parking ticket/stubs placed in their windows and 2) The cash that was received in the Livestock Entry office was placed in an unlocked cash drawer.  It was also noted that some of our vendor contracts were missing appropriate signatures.  As a result of the findings in the Auditor General’s report, Mr. Jenkins stated these corrective actions would take place:  1) The State Fair will post large signs at all of the parking lot entrances, instructing the drivers of each vehicle that they “MUST” place their parking stub visibly on the dash of their car window, and 2) Cash management will be improved with the addition of a cash register made available in the Livestock Entry office.  Vendor contracts are now being processed with earlier deadlines than in the past and this will allow more time for review, approval and final signatures and authorization on all contracts.

NEW BUSINESS

Mr. Hertel reported that as of this morning, he was informed that Vascor, the group who handles the parking for Chrysler vehicles at the Fairgrounds, received a notice from DaimlerChrysler that the cars have been very muddy and dirty once they leave the Fairgrounds and arrive at the various dealerships.  Mr. Hertel stated that the Fairgrounds has been noted for being the #1 recipient for parking and storing Chrysler vehicles throughout the metro area but now they are threatening to pull all of their cars from the Fairgrounds, if gravel is not added to the lots to ensure a cleaner storage area for the cars.  Mr. Hertel stated that the estimated costs to gravel the lots is between $90,000 - $120,000.  He added that every year we use special treatments and sprays to keep the dust down but now we must do even more to repair the lots.  Mr. Hertel stated that DaimlerChrysler has expressed their desire to continue doing business with us and we will be meeting with them tomorrow to hopefully resolve this matter.  A brief discussion was held regarding the damages done to the Fairgrounds during the time when the facility was under new management.    

Mrs. Driker asked if a phone call could be made or a formal letter could be sent to someone regarding the downed poles and lights that are out surrounding the Fairgrounds and along Woodward Avenue.  She also asked if something could be done to encourage cleaning up and the regular upkeep of the area around the bus terminal on both the east and west side of Woodward Avenue and north to Eight Mile Road on the eastside.  Discussion was held regarding the lack of State Fair maintenance workers, as well as our lack of revenue that would afford us additional landscaping and clean up services.  Mr. Hertel agreed to look into this matter although he could not promise that anything would be done as a result of contacting a state or city agency.    He noted that every morning the State Fair sends its limited maintenance staff out to clean up the inner and outer perimeters of the Fairgrounds and this also includes the bus terminal at Woodward. 

Mr. Hertel circulated a copy of a letter, which he had received on May 8, 2006 from Karen Batchelor announcing her resignation from the State Fair Authority Board of Directors.  Mr. Hertel stated Mrs. Batchelor has been a very supportive Board member and would be missed greatly.

PUBLIC COMMENT

Byna Camden asked for clarity regarding the $2.00 discount offered with the purchase of lottery tickets and whether or not this discount would also apply to the new “seasonal gate admission” pass.  It was explained that the $2.00 lottery ticket discount would only be good towards one-day admissions.

DATE FOR NEXT MEETING

The next meeting of the State Fair Authority Board is schedule for Wednesday, June 14, 2006, beginning at 1:30 p.m. in the Administration Building Conference Room at the State Fairgrounds, in Detroit. 

A meeting of the Michigan State Fair Authority Board of Director’s will be held on the second Wednesday of each month, unless otherwise noted.

ADJOURNMENT

The meeting was adjourned at 4:15 p.m.   The Board members were encouraged to take a 45-minute recess before attending the Local Neighborhood Advisory Council meeting in the Community Arts Auditorium at 5:00 this evening.