MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

September 12, 2007

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 1:42 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 (via teleconference)

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

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

                        Pat G. Albright, Owner of Albright Farms

                        Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

                        Robert G. Porter, Mayor of the City of Ferndale

                        Jeff Haarer, Representing Don Kovisto, Director of MDA

                        Steven R. Jenkins, MSF General Manager

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

                             Robert Burns, Representing Lisa Webb Sharp, DMB Director

Also Present:          Byna Camden ICARE and surrounding Fair resident

                             Johnnie Bennett, MSF Secretary

ACCEPTANCE OF AGENDA and APPROVAL OF MINUTES

ON MOTION BY Mayor Porter, supported by Mr. Coon, and carried, the agenda was accepted for today's Board meeting with one change being made:  "Old Business" was moved to the top of the agenda to accommodate a presentation and update offered by Ron Salley.  The motion passed unanimously.

ON MOTION BY Mrs. Driker, supported by Mr. DeCock, and carried, the minutes of the meeting held on July 11, 2007 were reviewed and approved as written.  The Motion was unanimously passed.

CHAIRMAN'S COMMENTS

Chairman Gaffney welcomed everyone to the meeting of the Board and he then waived the Chairperson's comments in order to allow sufficient time for today's presentation.

OLD BUSINESS

Mr. Jenkins gave a brief introduction of Ron Salley then the Board welcomed him to today's meeting.  Mr. Salley introduced himself again to many of the Board members and stated that his primary reason for coming today was to confirm his continued great interest in his proposed Bowling Alley and Entertainment Center.  Mr. Salley stated that he also came to request a letter of intent from the Board.  The letter of intent would include confirmation from the Board stating the area of land requested for his proposal would be made available for either lease or purchase upon his returning to the Board acceptable proof of financing within 90 days of receipt of the letter of intent.  Mr. Salley asked the Board whether or not they would be willing to prepare a letter of intent for him stating their decision to lease the designated area of land for his proposed Bowling Alley and Entertainment Center.  He added that in order to obtain financial support and backing and also prepare a site plan, he would first need the letter of intent confirming there is a location available.

A lengthy discussion was held regarding Mr. Salley's $20 -30 million dollar Bowling Alley proposal.  The Board questioned some of the language and terms used by Mr. Salley in his presentation today.  Mr. Salley sated that by saying "long term", he was referring to a project and lease arrangement lasting for at least the next 30 to 50 years.  Mrs. Driker questioned what Mr. Salley meant by "they must have total control of the site".  Mr. Salley responded by saying he was merely stating that they want to be able to pay us whatever is necessary to develop the entertainment project, obtain a liquor license and then move forward.  He indicated that the Bowling Alley and the parking is phase one of the project, but they have would also like to create IMaxx Theatres as part of phase two.  Mr. Salley stated he is currently working on a similar project in Highland Park, only on a much smaller scale due to a smaller area of land being available.  Discussion was held regarding which party gets the liquor license should the property be leased to a private organization.

The Bowling Alley project would be located at the northeast end of the Fairgrounds in the old Softball City area and it would consist of approximately 40 acres.  The Bowling Alley structure would only require about 10 to 12 acres of land with the rest of the area being designated for parking.  Mr. Salley stated the proposed project could be completed within 18 months once an agreement is reached.  The Board all agreed that careful consideration must be given regarding the highest and best use for the Fairgrounds property.  Chairman Gaffney stated this project would use up a quarter of our 160-acre property and he expressed to Mr. Salley why the Board would be hesitant and even reluctant in making a decision today to sign a lease agreement giving up such a considerable amount of prime Fair property.  He emphasized the challenges we are often faced with as it relates to parking vehicles during Fair season each year.  Mr. Gaffney stressed that this is a continual struggle for us and aside from the Woodward Avenue parking lot, the Softball City area is a highly valuable piece of land to us.  Mr. Salley assured the Board that should a deal be made with him, we would be able to park cars on a brand new re-paved parking lot, which would be made available during the two-week run of the Fair.  A brief discussion was held regarding the 40 acres of land owned by a private corporation at the southeast corner of Eight Mile Road and Woodward Avenue.  It is believed the area will soon be the location for a shopping strip type mall with JC Penney being the anchor store, a bookstore and a national chain restaurant.    It is uncertain when this area will be open for business.

Chairman Gaffney stated that before being able to move ahead and sign off on the letter of intent, the Board would need to work through the various details and certain restrictions that would be included in the lease arrangement with Mr. Salley.  He added that earlier today the Board made a decision to complete a strategic plan for the Fairgrounds.  He added that in doing this, the Board must now look at and weigh all options as well as consider the best possible use for the land and what is the highest value of the property before making a decision to enter into a long term lease arrangement.

Mr. Albright stated that it was his understanding from earlier meetings and discussions that the Board had already expressed to Mr. Salley the need to have proof or evidence of financial backing before the Board would be able to move forward with negotiations and consideration of his proposal.  Mr. Albright stated that he also recalled a letter was previously sent to Mr. Salley requesting some sort of "good faith" monies, which would encourage the Board to move forward and further consider the Bowling Alley and Entertainment proposal.

After a lengthy discussion on how the Board would like to proceed in these matters, the Board asked Mr. Salley to present to them, on or before the next scheduled meeting of the Board, on October 19, 2007, a drafted letter of the Board's intent.  The letter would include confirmation of the designated area of land being requested for the purpose of developing a Bowling Alley and Entertainment complex.   Mr. Salley agreed to draft the letter of intent on behalf of the Board, which they would then react to and respond to and if accepted they would then forward the letter to DMB and the AG's office for final approval.

ON MOTION BY Mrs. Driker, supported by Mr. Coon, and carried, the Board moved to have Mr. Salley draft a letter of the Michigan State Fair Authority Board's intent.  The letter will state the Board's decision to enter into a lease agreement with Mr. Salley for the leasing of a designated piece of Fair property to be used for the development of a Bowling Alley and Entertainment Center.  The letter will also include details as to exactly what it is Mr. Salley would like for the Board to do or what the Board should be prepared to allow him to do as it relates to his proposal.  The Board members asked that the letter of intent, drafted by Mr. Salley include as many details as possible i.e. a site plan/map of location, dates for construction and dates of operation, etc.  It was agreed that the letter of intent should be returned to the Board on or before the next meeting of the Board in October.   Also the letter should include a statement that addresses the need for Mr. Salley to provide sufficient, acceptable financial proof and substantial evidence of monetary support to the State Fair Authority Board within 90 days of approval and receipt of the letter of intent.  It was agreed that once the Fair Board reviews the letter of intent, the letter will be forwarded to DMB and the AG's office for final approval before sending the letter to Mr. Salley.  The Motion was carried and passed unanimously. 

The Board thanked Mr. Salley for coming back in to express his interest and continued efforts to move forward and enter into a long-term lease arrangement with the Fairgrounds.  Mr. Salley thanked the Board for their time and he exited the meeting.

Mrs. Driker stated she is more concerned than she has been for the last two years as it relates to the number of people on the State Fair Board who's terms have already expired, and the continuing vacancy of Karen Batchelor and Tom Valliere's seat.  She also shared her concern regarding no consistent representation from DMB or the Attorney General's office at our monthly Board meetings.  Mrs. Driker stated today's presentation made it very clear and helped her to realize even more so how we are at a definite disadvantage by not having a full Authority Board of Board members and not having State representation at our meetings each month.  She added the State's input would be extremely valuable in these matters as it relates to property and lease negotiations.

A discussion was held regarding the importance of filling vacant Board positions and possible candidates or suggested names of people who could be recommended by the Board to sit on the Board.  The Board discussed how they, as a Board, could possibly assist in moving the appointments process forward.  Chairman Gaffney stated Jim Stokes, of the Governors Appointments office, contacted him and shared the name of a person from the Detroit area who may soon be appointed to the Board.  Mr. Albright stated he did not feel it would be appropriate for the Board to make suggestions and offer names of persons who they would like to serve on the Fair Board.  The Board agreed.  Mr. Jenkins agreed to draft a letter to the Governors Appointments office, asking that the vacant and/or expired Board positions be soon filled and also that diversity be considered.  It was agreed that the Board members could receive a copy of Mr. Jenkins letter to the Appointments office once it is reviewed and approved by Chairman Gaffney.     

GENERAL MANAGER'S REPORT

Mr. Jenkins gave a general assessment of the 2007 MI State Fair:

Many positive comments were received and most people thought the layout of the Fairgrounds was very exciting this year.  The Building of Science and Technology was a new attraction and it was well received by many fairgoers.  Attendance was up by 2%.

Mr. Jenkins reported the primary negative comments and remarks were concerning too many vehicles surrounding the Miracle of Life Birthing Exhibit, which was in a new location this year, the West Mall area.   The other complaint was about the moving of the Agriculture exhibits and displays inside the Coliseum.  Mr. Jenkins stated both of these areas could be fixed very easily.  He stated consideration is already underway as it relates to possibly moving all of the Agriculture into the West Mall area, which would allow for more space and larger displays.  Mr. Jenkins stated he would like to get together with Mr. Coon and Mr. Haarer soon regarding promoting and encouraging greater participation and involvement form the various commodity groups.

Mr. Albright reported that Michigan Farm Bureau does not have the Miracle of Life Birthing Exhibit in their 2008 Budget and will not be able to provide volunteers or staff members for the activities at the Fair.  He added that while we may be able to replace the money for sponsorship of the exhibit, the real challenge is going to be getting farm experienced volunteers and people with livestock knowledge and experience to come in and teach and educate the fairgoers about the livestock animals.  Mr. Jenkins stated he has been in contact with Dan Groomes of MSU regarding what options and possibilities there may be in getting volunteers and staff to help with the exhibit.  Mr. Albright stressed that without Michigan Farm Bureau volunteers and staff, it's going to be very difficult getting enough farmers to tell the people about the farm animals.  He added the education aspect of the Miracle of Life Birthing Exhibit simply cannot be overlooked.  Special staffing needs for the Miracle of Life Birthing exhibit will be further explored and pursued.

Mrs. Driker complimented Mr. Jenkins on how well he put his arms around the Fair in such a short period of time.  She also expressed how disappointed she was with the location of the Miracle of Life Birthing exhibit and how confined the area felt with all of the vehicles around the Birthing display.  Mrs. Driker stated her grandchildren were especially looking forward to the Agriculture maze in the Agriculture Building and were disappointed to learn the exhibits had been moved to the dark corners of the Coliseum.  Mrs. Driker stated she really felt the Agriculture element of the Fair had been diminished this year at the Fair and this was truly a disappointment.  She also commented on how it was not as easy finding the Butter Cow this year. 

Mr. Jenkins stated he really welcomes all feedback whether it's positive or negative he invites all comments as it relates how the Fair went this year.  He added this will help us in modifying and developing a better layout for future Fairs.

Mr. Haarer also complimented Mr. Jenkins on a great Fair and he added that he felt the Governor's Luncheon and Livestock Auction overall went well and was well received this year.  He also complimented a successful Preview Night. 

Mr. Jenkins stated he would love to be able to completely fill the Joe Dumar's Fieldhouse with nothing but Agriculture displays and exhibits.  He added that one of the problems we have experienced in the past as it relates to putting certain things in the Joe Dumar's building is that we often have to pay cost and expenses for repairing scrapes and water damages made on the flooring.  Mr. Jenkins stated a 1.3 million dollar floor was installed by Joe Dumar's when the Fieldhouse was first developed. 

The Michigan Sports Hall of Fame (MSHF) reported an estimated 50,000 people came through their building during the run of the 2007 State Fair.  The MSHF group, the promoter, and the Detroit area sports teams were all very pleased and positive about their experience at the Fair. Mr. Jenkins added that he has been in discussions with Jim Starks of the MSHF and Tony Michaels, CEO and President of Big Boy Restaurants and Chairman of MSHF, as it relates to them becoming a stand-alone event and having a permanent home at the Fairgrounds.  These discussions will be pursued.

2008 STATE FAIR DATES:

Mr. Jenkins made a strong recommendation to the Board asking them to consider starting the 2008 State Fair two days later, opening on Friday as opposed to Wednesday. He shared various reasons why he felt this would be a great plan for the Fair.  A discussion was held regarding the various benefits associated with opening the Fair 2 days later.  Mr. Jenkins stated Rod Jordan indicated there might possibly be a few small challenges as it relates to getting the livestock in, but he was pretty sure it would work out.   Pat Boyer also stated she did not foresee any problems a later start day would pose for any of the Fair programs and activities in her area.  Mr. Jenkins stated Frank Zaitshik, President of Wade Shows, is not necessarily in favor of the later Fair dates.  But these discussions will be pursued.  Mr. Jenkins is hopeful this could work out well for everyone involved.  Mrs. Driker cautioned the Board to consider how positively this message can be conveyed to both the media and the public.  Mr. Jenkins stated one of the benefits to opening the Fair two days later is that it will allow us time to put together a significant event in conjunction with the Woodward Dream Cruise.  The Board, while in favor of moving the start day for the 2008 State Fair back two days, agreed to make a decision on this change at the next meeting of the Board.

Discussion was held regarding the cost of food vendors at the Fairgrounds and how mini carnivals, food, games and  ride vendors could be used to promote additional activities at the Fair year round.

The Circus had good attendance and their shows and they have already expressed their interest in returning with their performances next year.

Chairman Gaffney suggested to the Board that we should plan a special entertainment meeting of the Board for the month of November and at that time, we should be prepared to explore and take a closer look at our headline musical entertainment.  Mr. Gaffney suggested possibly having Pat Boyer join this meeting and any others who may be involved in booking entertainment for the annual Fair.  A discussion was held regarding the 2007 State Fair line-up, the attendance at the concerts and what the weather conditions were like at the various shows.  Mr. Jenkins stated he would like to discuss with Rich Padgen, of Radio Disney, the possibility of bringing three or four Disney shows in during the daytime.  Mr. Jenkins stated he would also like to look into bringing some of Michigan's home-grown talent with big name entertainers such as Stevie Wonder, Eminem, Aretha Franklin, Bob Seger, and others who may be willing to come in and sing a few songs but not necessarily perform an entire concert.  Mr. Jenkins stated Tim Allen might also be a consideration for a night of comedy.

Mr. Jenkins reported the Gold Circle Reserve Seating did well in the Band shell arena and we should consider doing this for future concert events.  The Board agreed to take a closer look at how we may better utilize the VIP General Motors Building and also examine whether or not there should be a charge for all concert seating.  Mr. Jenkins, at the request of Chairman Gaffney agreed to provide the Board with an entertainment grid for the November entertainment meeting.  The grid will show all of the 2007 State Fair nightly concerts, and how many people were estimated to be in attendance, the show dates and what the weather conditions were for the day/evening.  Also included with this information will be the cost for each nightly concert.

Mr. Albright gave a report on his observations as it relates to the quality of security during the Fair.  Mr. Jenkins and Mayor Porter also shared comments regarding the Fair's contracted security group.  Mr. Jenkins stated this being his first year managing the Fair, he felt it went very well and he added it was certainly a learning experience.  Mr. Jenkins welcomed feedback from the Board members regarding their thoughts as it related to the 2007 State Fair.  He added it should also be very helpful to receive the feedback from the surveys taken during the Fair by the Wayne State Honor students.

Mrs. Driker questioned whether or not the Neighborhood Advisory Council group had been mailed invitations to the State Fair Preview Night event and she strongly suggested this group be included in all of our future mailings and invitations to special Fair activities.  Mr. Jenkins apologized for this oversight and agreed to add them to our special mailing list for future events.

FINANCIAL REPORT

Mr. Jenkins stated a report on our fiscal year financial assessment would be provided at the next meeting of the Board in October.

NEW BUSINESS

Mr. Jenkins stated Brian Siegel of Joe Dumar's Fieldhouse recently made a comment to him suggesting a 2008 International Junior Olympics group may have an interest in reserving a special day of celebration at the Fair next summer on Thursday, August 21, 2008.  If the rides and games were in place and made available, the Junior Olympics group may be interested in coming in the day before the Fair opens with about 7 to 10 thousand people.  Mrs. Driker stated she is familiar with the Jewish "Maccabi" Olympics which involves many children from all around the world.  She stated this would be a fabulous opportunity should the group decide to reserve an exclusive day at our Fair.  Mr. Jenkins stated Mr. Siegel has agreed to pursue this possibility and bring information back to us.

Mr. Jenkins reported another group has come in and made a proposal to create a golfing center with a clubhouse, doom and driving range at the Fairgrounds.  He stated the good thing about this proposal is they already have financing in place should we accept their proposal.  Mr. Jenkins stated he will continue to pursue the details of this proposal before inviting this group to come in and make a presentation to the Board.

PUBLIC COMMENT

There was no public comment to come before the Board today.

DATE for NEXT MEETING

The next meeting of the Michigan State Fair Authority Board was scheduled for Wednesday, October 10, 2007, beginning at 1:30 p.m. in the Administration Building Conference Room, at the Michigan State Fairgrounds, in Detroit.  

ADJOURNMENT

On Motion by Mr. DeCock, supported by Mayor Porter, and carried, the meeting was adjourned at 4:10 p.m.