MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

February 13, 2008

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 1:46 PM, in the Administration Building, Conference Room, at the MI State Fairgrounds in Detroit.

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

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

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

Robert G. Porter, Former Mayor of the City of Ferndale

Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

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

Robert Burns, Representing Lisa Webb Sharpe, Director of DMB

Jeff Haarer, Representing Don Koivisto, Director of MDA

Steven R. Jenkins, MSF General Manager

ABSENT: Pat G. Albright, Owner of Albright Farms

Also Present: Byna Camden, ICARE and State Fair local resident

Danny Houston, John Kelly, and Mitch Irwin, Representing North American Midway Entertainment

Ron Salley, Salley's Alley

Johnnie Bennett, MSF Secretary

ACCEPTANCE OF AGENDA and APPROVAL OF MINUTES

ON MOTION BY Mr. Burns, supported by Mr. Porter, and carried, the agenda for today's Board meeting was accepted with the following change being made: "New Business" was moved to immediately follow the Chairman's Comments. The MOTION passed unanimously.

ON MOTION BY Mr. Deeb, supported by Mr. Coon, and carried, the minutes of the meeting held on December 12, 2007 were reviewed and approved. The following correction was made: Mr. DeCock stated the location of the reception attended by he and Chairman Gaffney on December 11th was held at the Michigan Historical Library and Museum. On Page 5, under New Business, "The Governor's Mansion" will be removed from the report. The MOTION to approve the previous minutes was unanimously passed.

CHAIRMAN'S COMMENTS

Chairman Gaffney welcomed everyone to today's meeting. He then began the meeting with a brief explanation as to why the Board would be asked today to re-vote on Motions previously passed at the October and November meeting of the Board.

NEW BUSINESS

Chairman Gaffney stated that because we did not receive six (6) affirmative votes on the motions made at the November meeting, the Board would need to go back and re-visit the actions taken at the October and November meetings as it concerns the Midway contract for the Fair. Chairman Gaffney reported that in order to get the Midway contract matter resolved and completed today we would need to take at least four (4) separate votes on this item. These votes would include renewing, reconsidering, and/or reopening consideration of the previous failed Motions. A brief discussion was held regarding the various votes to be taken today, the number of votes that would have to be made in the affirmative in order for the Motion to pass and what each of these votes would mean as it relates to the Midway vendor for the Fair.

Chairman Gaffney explained the two votes taken in November to reconsider the action taken at the October meeting, which meant sending the 2008 Midway contract out for bids and a second vote that supported the General Manager's decision to exercise a one-year opti on with the current Midway vendor, Wade Shows. The second vote resulted in 5 yeas - 1 nay - 1 abstention. Mr. Gaffney stated that because there was not a majority of 6 yeas, the Motion failed and he suggested the Board revisit and retake the vote today. The Board agreed.

First (1st) Vote:

ON MOTION BY Mr. Burns, supported by Mr. Porter, and carried to renew and re-open consideration for the failed Motion in November as it pertained to the original October vote, where the Board agreed to begin the process for sending the 2008 Midway contract out for bids. The Board approved this Motion with a vote of 6 - yeas, 0 - nays, and 1 abstention.

Second (2nd) Vote:

ON MOTION BY Mr. Burns, supported by Mr. Porter, and carried to reconsider and undo the October vote to begin the bid process for the Midway contract for the 2008 State Fair. The Board voted 8 - yeas, 0 - nays, 0 - abstention, in support of reconsidering the October vote. It was noted this vote cancels the October vote that required the 2008 Midway contract to go out for bids.

John Kelly of North America Midway Entertainment (NAME) was given an opportunity to address the Board and ask for re-consideration to open the bid process for our 2008 Midway vendor that would allow their company an opportunity to bid on the upcoming State Fair Ride and Games Midway contract. Mitch Irwin offered information as it related to the financial benefits offered by NAME. It was agreed, by the Board that various determinations can well be made as a result of each company being given an opportunity to participate in the State's competitive bid process.

Third (3rd) Vote:

ON MOTION BY Mr. Burns, supported by Mr. Porter, and carried, to renew and re-open consideration of the failed November Motion to exercise the one-year option with Wade Shows, extending the Midway contract through the 2008 State Fair. The Motion was passed with a vote of 7 - yeas, 1 - nay, 0 - abstention, to renew consideration to exercise the one-year contractual option with Wade Shows.

Fourth (4th) Vote:

ON MOTION BY Mr. Burns, supported by Mr. Porter, The Board approved on a vote of 7 to 1 to exercise the one year option with our current Midway vendor "Wade Shows" and extend their contract through the 2008 State Fair. The Motion was passed.

Fifth (5th) Vote:

ON MOTION BY Mr. Coon, supported by Mr. Porter, and carried, the Board voted 8 to 0 in support of directing DMB to begin the bid process for the 2009 Midway contract.

Mr. Kelly and Mr. Irwin expressed thanks and appreciation to the Board for welcoming them to join today's meeting and offer remarks on behalf of the North American Midway Entertainment group. Mr. Irwin complimented the Board for their decision to put the 2009 Rides and Games Midway contract out to bid. Mr. Kelly then asked if it would be possible to have the schedule of the mandatory pre-bid meeting moved to a later date. Mr. Burns agreed to take this question back to DMB as it relates to the timeline for the mandatory pre-bid process.

ON MOTION BY Mr. Coon, supported by Mr. Deeb, and carried, to amend the meeting agenda and move "Old Business" to the 3rd item on the agenda, immediately following "New Business". The Motion passed unanimously.

OLD BUSINESS

Ron Salley joined the meeting and again requested from the Board a special letter of acceptance for the Salley's Alley proposal. The letter requested by Mr. Salley would include language authorizing exclusive rights to 40 acres of State Fair property. Mr. Salley suggested that the proposed area of land be offered and reserved for an agreed upon period of time which would allow time to secure financial backers for his proposed project. Mr. Salley again shared with the Board details as it relates to how his project could enhance the Fairgrounds and citizens of the metropolitan area.

After a very lengthy discussion, the Board agreed we could not commit to giving exclusive rights to any given amount of Fair land without adequate financial guarantees. The Board reminded Mr. Salley that a letter was previously sent to him acknowledging their approval of his proposed concept. The Board emphasized to Mr. Salley that while they have accepted the concept of his project, they are not in a position at this time to offer him exclusive rights to any of the Fair property. Chairman Gaffney stated we have been working on a Strategic Plan for the Fairgrounds and once the plan is complete, the Board would welcome these discussions as it relates to long-term lease negotiations. Mr. Gaffney apologized to Mr. Salley for not being able to give him a more definite answer today.

Mr. Salley thanked the Board for their time and attention in this matter today and asked to join the next meeting of the Board in March. It was explained the monthly meetings of the Board are open and the public is welcomed to attend. Mr. Salley then exited the meeting.

Chairman Gaffney reported the re-appointment and appointments to the Board should all be in place soon. It is anticipated that EJ Brown, Director of Michigan Association of Fairs and Exposition will soon join the State Fair Authority Board.

GENERAL MANAGER'S REPORT

Recap of Press Conference

Mr. Jenkins shared information on today's Press Conference held at the newly opened Next Shot Golf Center, located in the northern portion of the Michigan Mart Building on the State Fairgrounds. The conference was well attended by media and highlighted many of the new and returning non-fair attractions. The return of the Shrine Circus, the grand opening of the Next Shot Golf Center, the Detroit Equestrian Horse Club, the return of the Goodwill Industries Antique Show and the Michigan Horse Association were all big announcements at today's Press Conference. The J.L. Hudson Auditorium, located in the Community Arts Building was noted today as the location where plays, concerts, and a variety of great and wonderful events such as "Hang onto the Dream" would take place throughout the non-fair season. Mr. Jenkins reported on upcoming concerts to be held in the Community Arts Auditorium. The series of concerts will be a special salute and tribute with a host of impersonators singing songs by big name celebrities i.e. "The Rat Pack" featuring Sammy Davis Jr., Dean Martin, Frank Sinatra, and many others. Mr. Jenkins reported today's Press Conference was well received, upbeat and very positive.

Mr. Jenkins reported on an upcoming Press Conference to take place on March 12 th. The conference will cover information concerning our efforts as it relates to a fundraising drive to obtain monies to refurbish the Veterans War Monument located at the corner of State Fair and Woodward Avenue. Mr. Jenkins invited the Board to attend the Press Conference on March 12, 2008. The time and location will later be determined.

Update on Non Fair Activities

The Red Wings Alumni game will be held at the MI State Fair Coliseum on Sunday, March 2, 2008. Discussions are being pursued with Woodward Dream Cruise organizers involving the State Fairgrounds as a destination for special activities over the weekend of the cruise. Fair management has also considered putting together a special fireworks show as part of the kick off or conclusion for the cruise. Mr. Jenkins was happy to report on the various non-fair events and activities taking place currently at the Fairgrounds.

08 Fair Entertainment

Mr. Jenkins offered a brief line-up of the 2008 State Fair musical entertainment schedule. Negotiations for the 2008 State Fair concert series are presently underway.

DMB Purchasing Update

A discussion was held at length regarding how contractual agreements are awarded and who sits on the committee that selects and makes final decisions on the contract. Chairman Gaffney stated he would certainly agree that Mr. Jenkins, Fair Manager, should be on the committee for making these very important decisions on various Fair operations.

Mr. Jenkins reported that two previous contracts (Rod Jordan and Pat Boyer) could not be renewed. He stated these contracts would have to go out to bid. The Janitorial contract was extended for 2008. Two State classified positions may soon be filled. A joint evaluation committee would assist in reviewing and interviewing candidates for these two positions and Mr. Jenkins would then make recommendations to DMB.

FINANCIAL REPORT

Mr. Jenkins distributed the Financial Report. The information presented today highlighted the State Fair fiscal year financials for 2007 and also included the projected Budget for FY 08'. After a brief discussion took place, the Board agreed to support the planned 2008 Budget presented by the Fair Manager today. It was stated, in this discussion, that the Fair Manager's salary is included in the Budget Report and this amount could increase if the Board made a decision to take action.

ON MOTION BY Mr. Coon, supported by Mrs. Driker, and carried, to support the Budget Report presented at today's meeting of the Board. Mr. Burns expressed his support of the Budget Report and stated this was something very difficult and challenging to accomplish. He thanked Mr. Jenkins for all of his hard work and efforts in putting together the Budget presented today. The Motion to support today's Budget Report was unanimously passed.

Chairman Gaffney, Mrs. Driker and Mr. Porter agreed to get together with Mr. Jenkins to discuss details regarding the next meeting of the Neighborhood Advisory Council. Mrs. Driker and Mr. Porter will review the invitation list and addresses for the Neighborhood Advisory group before the next meeting of the Board. It was discussed that at the Neighborhood Advisory group meeting, the Board would hope to be prepared to share and present the State Fair Strategic Plan. The Board suggested additional meetings be scheduled with the DESC Strategic planning group in order complete of the plan over the next couple months.

*AS AMENDED AT THE MARCH 12, 2008  BOARD MEETING:

 "Mr. DeCock discussed non-agenda items with the Board and expressed his concerns as it relates to items not being placed on the agenda at the time the agenda is mailed out to the Board.  He stated he would prefer more time to discuss and review items to be voted upon."   

PUBLIC COMMENT

Byna Camden thanked Mr. Jenkins and the Board for inviting her to attend today's State Fair Press Conference. She stated the press conference was a wonderful way to promote the new, year round activities taking place at the Fairgrounds. She complimented the Fair Board for putting together a very positive and well-received press conference.

DATE for NEXT MEETING OF THE BOARD

The next meeting of the Board was scheduled for Wednesday, March 12, 2008 beginning @ 1:30 p.m., MI State Fairgrounds, in Detroit.

The D.E.S.C. Strategic group will also meet on March 12th from 11:30 a.m. to 1:30 p.m.

Please note: There will also be a special press conference taking place on this same day, March 12th, for the State Fair Veteran's War Monument. Time to be determined.

ADJOURNMENT

Being there was no other business to come before this Board, the meeting was adjourned at 4:10 p.m.