MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

September 13, 2006

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 1:38 PM, in the Administration Building, Conference Room, at the Michigan State Fairgrounds, 1120 W. State Fair Avenue, in Detroit.

PRESENT:

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

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

Robert G. Porter, Mayor of the City of Ferndale

Pat G. Albright, Owner of Albright Farms

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

Thomas L. Valliere, Manager, Midland County Fair

Jeff Haarer, Representing Mitch Irwin, Director of MDA

John C. Hertel, General Manager, Michigan State Fair

ABSENT: Monique Field, Representing Lisa Webb Sharpe, Director of DMB

Also Present:

Tim Jenkins, MSF Assistant General Manager

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

Pat Lockwood, MDA Special Projects Assignment

Byna Camden, I-CARE & Green Acres resident

APPROVAL OF MINUTES

The minutes of the meeting held on August 9, 2006 were reviewed. ON MOTION BY Mayor Porter, supported by Mr. Deeb, and carried, the minutes were approved and the Motion was unanimously passed.

ACCEPTANCE OF AGENDA

ON MOTION BY Mr. Valliere, seconded by Mr. Deeb, and carried, to accept today's meeting agenda. The Motion passed unanimously.

CHAIRMAN'S COMMENTS

Chairman Gaffney welcomed the Board members and guests to today's meeting of the Authority and he then introduced Ms. Pat Lockwood, former State Representative and currently working with the Michigan Department of Agriculture, Director's office, on a special projects assignment. Chairman Gaffney asked the Board to take a moment and introduce themselves.

Chairman Gaffney stated that he and his family came to the Fair on numerous occasions and he expressed great thanks to Manager John Hertel and his staff members for all of their hard work and dedicated efforts to produce such a wonderful State Fair. He stated the crowds were great when he visited the Fair and it was a very interesting thing to actually watch the Fair come together over the last few weeks and months. Chairman Gaffney again thanked Mr. Hertel, Tim Jenkins and the State Fair staff for a great Fair and he then opened the floor for other Board members to comment on their experiences at the Fair.

Many of the Board members complimented Mr. Hertel and staff for a job well done. Mayor Porter stated that he attended the Fair every day and often times he would come twice in one day. Mayor Porter highly complimented Mr. Hertel and the State Fair staff for putting together a marvelous Fair. Mayor Porter shared with the Board members how one evening during the concert he had made a special surprise announcement, recognizing Mr. Hertel from the stage, for his great accomplishments and success with the State Fair and how he has played an important part in the building a better community. Mayor Porter stated that many people in the audience stood up and waved to Mr. Hertel from the Band Shell arena. Mayor Porter congratulated Mr. Hertel for an awesome State Fair.

Mrs. Driker reported that she and her five grandchildren visited the Fair and had a really great time. She also stated that after this year, she would certainly stop "belly-aching" about the loud music and noise coming from the Fairgrounds every evening. Mrs. Driker shared with the Board how she was pulling weeds in her yard one evening and once the Fair concert started, she found herself working to the beat of the music. She was very pleased to report that she actually accomplished more in less time and had a good time working in her yard that evening. Mrs. Driker offered many compliments and thanks to Mr. Hertel for a wonderful State Fair.

Mr. Deeb and the other Board members together congratulated Mr. Hertel for his many years of dedicated service, hard work and accomplishments in turning around the future of the Michigan State Fair. They all agreed that Mr. Hertel' s leadership should open up a lot more opportunities for the Fair and they wished him much success in his future endeavors with the RTCC (Regional Transit Coordinating Counsel). Mr. Hertel thanked the Board for their support over the years and stated that he would certainly miss working with all of them but promised to keep in touch.

MANAGER'S REPORT

REPORT ON THE 2006 MICHIGAN STATE FAIR: Mr. Hertel reported on the following recognitions and recommendations.

Mr. Hertel stated that he was going to continue with the thanks and the acknowledgements: Jeff Haarer and The Michigan Department of Agriculture was recognized for the marvelous job they did this year with the Agriculture Building. Mr. Hertel stated that the building was full and had lots of great attractive displays and the whole layout of the building was well put together. Mr. Hertel stated that Scott Ruthenberg, MSF staff member, should receive very special thanks for how well he put together the Farm experience in the Agriculture Building. Scott literally took all of the buildings which were made out of wood and were a part of the outdoor Farm experience and he re-created them using plastic so that each could go into the Agriculture Building on the floors. He explained that because the Agriculture Building is used year-round by Joe Dumar's Fieldhouse, special care and consideration has to be taken with regards to floor treatment and what items can be displayed in the building. Mr. Hertel stated all of the volunteers and State Fair staff members should be recognized and commended for how well they re-adjusted to the new layout of the grounds and exhibits. He added that the Detroit Department of Transportation (DDOT) accomplished getting the new patron ticket booths and entrance done in record time. Mr. Hertel stated that with the new layout of the grounds, we actually used the whole fairgrounds and the exhibitors all seemed very happy with the changes also.

The Livestock entries went up in every area including the dairy, which is a very difficult thing to accomplish. Rod Jordan, MSF Livestock Supervisor, and the entire livestock department was recognized and thanked. Mr. Hertel stated that we actually made more money this year from the livestock entries and from the exhibitors parking and camping at the Fair. Mr. Hertel also noted that adjustments had to be made due to the lost of parking spaces available in the once used 40 acres which was sold by the DNR to a private group. Mr. Hertel stated not having this open lot posed two glitches for us in that we had to now be concerned with the pedestrians coming from Ferndale and we had to be concerned with the campers and livestock participants coming into the Fairgrounds. He stated that once the glitches were all worked out, everything worked out very smoothly and we actually made more money.

Governor Jennifer Granholm and the legislature were recognized for passing the law making it mandatory for public schools in Michigan to begin after Labor Day. Mr. Hertel stated we had been hoping for this to happen for a long time and finally it did. This was a major help for the Fair.

Daryl Love, MSF Facility Manager, was recognized for how well he is able to accomplish all of the maintenance needs of the Fair with such a minimum staff group. Mr. Hertel stated that Daryl literally hires people off the street and these people work so faithfully and hard without a union or any extra benefits given. Mr. Hertel highly complimented Daryl and his maintenance crew for the remarkable job they each perform.

Carolyn Mills did an outstanding job this year with the various exhibitors in and outside the Michigan Mart Building. Mr. Hertel stated that it was great to see the Michigan Mart Building packed with so many wonderful displays and products. A special note of thanks to the Michigan Department of Management and Budget for helping us obtain the much, needed air-conditioners this year for both the Michigan Mart Building and the Community Arts Building.

Rosemary Peralta, MSF Special Projects Manager, was recognized for the outstanding job she does with coordinating the Governor's Luncheon and Reception and a whole host of other special projects, i.e. the Souvenir Program Book, the World's Largest Stove & Brick program, and many more notable accomplishments.

Pat Boyer, Grounds Entertainment, was recognized for how well she coordinates the volunteer department, daily parades, children's contest, local entertainment stage, special days and events. Mr. Hertel stated that we really are grateful for the many wonderful volunteers that dedicate their time and efforts for the success of the State Fair. He added that each of the State Fair staff members and numerous volunteers deserve a big applause for how well they put together the Fair and for their long tireless hours of service, he commended and thanked them all.

Mr. Hertel stated that the Opening Day of the Fair was a perfect day with sunny skies, a light breeze and the temperature was 81 degrees. He noted that this was the only day in his thirteen years as Fair Manager when we had "Perfect" weather. The attendance was great and he received a call from Frank Zaitshik, President of Wade Shows, stating ride revenue broke records this year for Opening Day at the Michigan State Fair. From Thursday afternoon until the following Tuesday afternoon of the next week, we did not see any more sunshine and it rained every day. It rained six days out of thirteen and Mr. Hertel reported that this really hurt our Fair this year. In order to gain back the momentum from all of the revenue we lost after the first Thursday, Mr. Hertel made a decision to have three "Free Kid's Days" and also reduce the price of the ride-all-day wristbands from $22.00 to $15.00 for Wednesday, Thursday and Friday of the second week. Mr. Hertel stated that while this helped us to get our attendance up by 20%, unfortunately we still are in the hole by approximately $250,000. He added that our total attendance is somewhere around 330,000.

Mr. Hertel reported that we could attribute this lost to a couple things. 1) While we were able to get the people to come in and increase our attendance by 20% because of the "Free Kid's Day", this did not help us bring in more money, and 2) We lost money with the Vascor Car situation. Mr. Hertel explained how Vascor stated that if we didn't change our contract with them, they wouldn't come back with their cars. He then explained how this affected our yearly Fair revenue. Mr. Hertel stated that next they told us that we had to put gravel into our unpaved parking lots and we had to pay for the asphalt millings. Then finally they agreed that when they did bring the cars back, they would only pay us 80 cents per vehicle instead of the original $1.00. Mr. Hertel stated we also have to take into consideration that we were totally without cars for two months, so we lost money in many ways with this arrangement. Mr. Hertel stated Vascor along with the six days of rain clearly justifies why we lost money this year instead of making money. He added that we usually anticipate three days of rain but this year we got double that amount. He reported that the daily attendance break down will be made available after the auditors come in and perform their yearly audit and all of the numbers are calculated for a final report.

Mr. Hertel gave a report on some of the high points: We went from parking 42,000 cars this year to parking 51,000 cars. The last Sunday, which was another excellent weather day, we again set a record in ride revenue and Mr. Zaitshik told us that there was not any day, any time during all of the history of the Fair, when ride revenue was up so high as it was on the last Sunday of the Fair. He calculated that we took in $283,000 in ride revenue on the last day.

Mayor Porter had to leave the meeting, but reported that he has been doing all he can do to get the Woodward Dream Cruise people to extend the cruise into the City of Detroit over to the State Fairgrounds. He stated that he would be meeting with Motor City Casino as well as the executives and staff members of Woodward Dream Cruise Inc. Mayor Porter also stated he would be meeting with a group from the Detroit Free Press tomorrow to assist them with a project they are doing on the history of the City of Detroit. Mayor Porter said that he asked the Free Press to meet him at the State Fairgrounds at 12:15 a.m. and he hopes to also be able to show them a portion of the Fairgrounds, if time permits.

Mr. Albright reported that he had not heard any positive or negative comments regarding the new layout of the Fairgrounds. He stated he had a very positive reaction to the Miracle of Life Birthing Exhibit and he observed that it was always pretty crowded and one of the most popular attractions at the Fair. Mr. Albright stated that he had received an email from a person who displayed their products in the Agriculture Building. This person was very impressed and appreciative of the changes and new aspects of agriculture in terms of the Farmers Market in the Agriculture Building and looks forward to coming back. Mr. Albright also apologized for the things in which he was originally concerned about and stated that his overall impression of the Fair was really good. Mr. Deeb stated that he had spoken with several farmers and they each indicated that they would like to participate next year in our Fair.

Mrs. Driker questioned whether we have ever considered selling healthy foods at the Fair. Mr. Hertel stated that once upon a time there was healthy foods sold at the Fair but the vendors never made enough money so they choose not to come back. Mr. Valliere stated that the Midland County Fair does not sell healthy foods either. Jeff Haarer may possibly look into healthy foods for the Fair.

Mr. Hertel gave a detailed review of the changes and added attractions that were included in this year's State Fair and he offered a few recommendations to be considered for the 2007 Fair:

Ride-all-day wristbands should be sold on weekends also. This went over very well this year. The seasonal passes was well received and Mr. Hertel stated that he would recommend bringing this promotional back. More picnic tables could be added throughout the Fairgrounds and this could also be created as a special sponsorship opportunity with WJR next year. It worked well to have the kiddie-land rides moved close to the main midway (older children rides and games). Mr. Hertel stated the new layout of the grounds was 97% thumbs up and he would recommend keeping the new layout in place and adding a few more possible changes. While some folk may have very much enjoyed the walking "Tree-man", others expressed how frightening it was to some of the smaller children. The Puppetone Rockers was very popular and Mr. Hertel recommended that it be brought back. Mrs. Driker stated the Outdoor Zone by HCMA and DNR was a fabulous attraction for the Fair and was well staffed with such helpful people who were willing to help the children with their fishing experience. She stated that she would vote as many times as possible for this exhibit to come back Discussion was held regarding putting together some form of outreach program to get more schools involved with our various attractions and facilities such as the Outdoor Zone and the Community Arts Auditorium. The Circus went very well although we did get a few (25 to 30) complaints about the elephants. Mr. Hertel stated that we watched very closely to make sure that no points or edges were being used to control and train the animals. Mr. Hertel stated that we were very pleased with what we witnessed and the Circus shows were well attended every day. It was recommended that the Circus be brought back again. It was noted that the location of various venues were adjusted on the fourth day to help to draw patrons over towards the Michigan Mart Building because the new entrance actually moved people away from the building. Mr. Hertel strongly suggested taking down the wooden fence at Great Lakes Blvd. and adding a more attractive display instead of campers and livestock exhibits. The children's theatre play "Dragon Scales and Faerie Tales" drew in larger crowds than in the previous years and it was recommended that they return. Mr. Hertel reported the two specials, with AAA and the Lottery Commission, were very well. Hertel recommended that we not bring back the Fallen Giant. He stated that there could be a brand new special attraction every year to replace the previous attraction. Mr. Hertel stated that there are many great things that he would recommend that we bring back i.e. the Petting Zoo, the Racing Pigs and lots of free things can be brought in also. Mr. Hertel strongly suggested that we try to get more concerts sponsored and brought in by private corporations.

Mr. Hertel reported that a person would be coming down next week to spend a couple days with him to do an interview with him and go over a detailed report of his recommendations and findings at the Fair. Mr. Hertel stated that his strongest recommendation out the door would be for the Board to consider hiring two full time staff people. One marketing person to rent and lease the grounds in every way possible and another educations person to go out and talk to the schools, i.e. Wayne State, Michigan State and numerous other elementary all the way through high school age kids about getting involved with the Fair. Mr. Hertel said that this would have to be his number one recommendation and he would hope that the Board would truly consider this. He added that there's just no reason why the Fairgrounds can't be rented for everything under the sun.

Dr. Coon suggested bringing in headliners for Jazz music to help draw off the crowds that attend the Jazz festival each summer. Mr. Hertel stated that while this is very good idea, he would like to suggest that we hold our concert in the earlier part of the day on a Friday or Saturday afternoon so that people can still leave and attend the festival downtown. Discussion was held regarding Arts, Beats and Eats and how it affects the Fair's attendance.

Discussion was held regarding whether we need to put an item on our priority list to look into creating a better campground for exhibitors. Mr. Albright suggested that there be a continual outreach program addressing the needs and concerns of the exhibitors, taking into consideration the items that they would like to see added to our priority list. Mr. Albright strongly suggested putting together a priority list and seeing whether the exhibitors feel that it is more important to have warm running water in the showers or camping spots. Mr. Hertel reported that a generator was rented this year to help provide more electricity for the campers. Mr. Albright shared his experience as an exhibitor and camper at the Fair this year.

ON MOTION BY Mr. Valliere, supported by Mr. Coon, and carried, THE MEETING WAS MOVED IN EXECUTIVE SESSION at 2:48 to discuss personnel and staffing issues.

THE MEETING WAS RECONVENED TO REGULATORY SESSION AT 2:59. ON MOTION BY Mr. Deeb, supported by Mr. Valliere, and carried to recommend that Tim Jenkins, MSF Assistant General Manager be considered for an Interim position as Acting Manager of the Michigan State Fair. Mr. Jenkins would carry out the daily duties and task of the General Manager until such time a permanent General Manager is appointed to this position. Mr. Hertel stated that he feels very positive about this recommendation and he strongly supports the Board's decision. THE MOTION WAS UNANIMOUSLY PASSED.

Discussion was held regarding setting the date for the Neighborhood Advisory meeting this fall. Mrs. Driker stated that many of the Board members were not in attendance at the neighborhood advisory meeting held last Spring and she encouraged the Board to select a day when more members would be able to attend the next meeting that will include a broader list of invitees from the neighborhood, businesses and government.

Dr. Coon volunteered to sit on the Board as a replacement for Karen Batchelor who resigned form the Authority Board. Mr. Hertel stated that he would recommend that the Board consider holding the regular meeting of the Board later in the day and then going out to dinner and coming back to an evening, approximately 7:00 p.m., meeting with the neighborhood group. He stated that this would give the public more of an opportunity to get off work and join us for the meeting. It was suggested that the Board consider setting the neighborhood meeting for the month of November.

OLD BUSINESS

ON MOTION BY Mr. Valliere, supported by Mr. Deeb, and carried, a Motion was made to set the 2007 Michigan State Fair dates for August 22nd through September 3rd and all future Fairs thereafter will be scheduled to end on Labor Day, with the starting date being open for discussion and approval each year. The Authority Board members were all in favor of setting the 2007 State Fair dates and they indicated that setting the dates early would allow a great opportunity for earlier promotions and advertisements of the Fair. The Motion passed unanimously.

NEW BUSINESS

Many compliments were received regarding the wonderful selection of food choices served at this year's Governor's Day Luncheon on August 30th. The Board members all agreed that more Michigan Commodity groups were involved this year and the variety of food selections was a wonderful addition. Mr. Haarer reported the Governor's Luncheon Day "Livestock Auction" brought in $117,000 in monies from the auction, which was a bit down from the past years, but nevertheless the auction went well, received great support and the luncheon was a big success. The Board complimented Rosemary Peralta for putting together such a great event.

PUBLIC COMMENT

Byna Camden, resident of the surrounding neighborhood, thanked the State Fair Board and Manager Hertel for a really wonderful Fair and stated that she attended the Fair on three separate occasions with guest and everyone was very complimentary regarding their time at the Fair. Ms. Camden stated that her only complaint was that the Agriculture Building seemed to be vacant too early in the evening and she would have wanted to see the new Farmer's Market and various other agricultural displays kept open longer in the evenings. Ms. Camden remarked on how friendly and courteous all of the staff members were at the Fair and she also stated that she thought it was especially helpful and commendable how the parking lot attendants used discretion in handling various situations dealing with handicapped and disabled patrons of the Fair. Ms. Camden again thanked Mr. Hertel for all that he has done to make the Michigan State Fair a success and she thanked the Board for allowing her the opportunity to participate in the monthly meetings of the Authority.

Mr. Hertel then gave his final words as Fair Manager and thanked everyone for all they had contributed and done to help make the State Fair successful.

NEXT MEETING DATE

The next meeting of the Michigan State Fair Authority Board of Directors was scheduled for Wednesday, October 11, 2006, beginning at 1:30 p.m., in the Conference Room of the Administration Building, at the Michigan State Fairgrounds, in Detroit.

ADJOURNMENTON MOTION BY Mr. Deeb, supported by Mr. Haarer, and carried, the meeting was adjourned at 3:05 p.m.