MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

April 27, 2005

Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mr.. John C. Hertel, Manager, on this date, beginning at 1:50 PM, in the Administration Building, Conference Room, at the Michigan State Fairgrounds, in Detroit. 

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

                        Karen Batchelor, Senior V.P. of Public Affairs, Detroit Regional Chamber

                        Pat G. Albright, Owner of Albright Farms

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

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

Mark T. Gaffney, President of Michigan AFL-CIO

                        Robert G. Porter, Mayor of the City of Ferndale

                        Dan Wyant, Director, Michigan Department of Agriculture (MDA).

                        Mitch Irwin, Director, Michigan Department of Management & Budget (DMB).

                        John C. Hertel, General Manager, Michigan State Fair.

ABSENT: Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

                        Thomas L. Valliere, Manager, Midland County Fair

Also Present: Timothy Jenkins, MSF Assistant G.M.

                        Jeff Haarer, Representing MDA

                        Monique Pointer, Representing DMB 

            Citizens and residents from the surrounding neighborhood

MANAGER’S REPORT

Mr. Hertel welcomed everyone to the Fairgrounds and to the Michigan State Fair Authority.  Mr. Hertel thanked all of the new Board of Directors and stated that it was very kind of them, agreeing to come back for this meeting so quickly after joining him last week for an orientation meeting.  Mr. Hertel asked each of the Board members to introduce themselves and then he offered some background on his history as a supporter and longtime State Fair Livestock participant as well as his efforts and involvement as the Fair Manager since September of 1993. 

Mr. Hertel stated that normally there would be previous meeting minutes presented to the Board for them to review, amend, and approve but because this is the first meeting of the Board there were no minutes to approve.

Mr. Hertel stated that there would be time set aside at the end of his report for questions and answers.  Mr. Hertel reported on the following:

2005 STATE FAIR PLANNING – Mr. Hertel was pleased to report the 2005 Michigan State Fair will be celebrating its’ 100^th Anniversary at its’ present location in Detroit.  Mr. Hertel stated that prior to 1905, the Michigan State Fair had moved around quite a bit and did not have a permanent home until it was moved to this site at the Southeast corner of Eight Mile and Woodward Avenue in 1905.   

Mr. Hertel stated that the Fair would be going with the earlier start dates again this year, as this was an item voted on and approved by the previous Board of Directors during the Fall season of 2004.   Mr. Hertel stated The Fair will open on August 10^th and will run through August 21^st.  Mr. Hertel shared with the Board members a list of the special days and various events to take place during the 2005 Fair and he encouraged each of them to mark their calendars early and attend as many events as possible.  He stated that his assistant, Johnnie Bennett, at a later time would provide gate admission passes as well as parking passes to each of the Board members.  Mr. Hertel listed the following special events and ceremonies and he then extended an open invitation to the Board to come and enjoy the Fair as much as possible. 

Wednesday, August 10^th, beginning at 12:00p.m, Opening Day Parade & Ribbon Cutting Ceremony.  Mr. Hertel stated that all of the Board members and dignitaries should arrive at the Administration Building by 11:30a.m. to begin the lining-up for the Parade.  Mr. Hertel stated that because the Fair will open its’ gates at 10:00, he encouraged the Board to come early to see the Fair and get comfortable before the Official Ribbon Cutting Ceremony at Noon.    

Wednesday, August 17^th, Governor’s Day Luncheon and Sponsors Reception.  Mr. Hertel invited all of the Board members to attend the special reception with the Governor and the 2005 State Fair Sponsors beginning at 11:00 a.m. at top of the General Motors Pavilion. Mr. Hertel stated that the Governor’s Luncheon will be held at the North Food Court and will begin at 12:00 Noon, immediately following the reception.  Mr. Hertel invited the Board to arrive around 10:45 a.m. and attend both of these special activities, where they will also be able to meet and greet many of our wonderful State Fair Sponsors as well as have their photos taken with the Governor.  Mr. Hertel stated that this is always a good time to express to our Sponsors how much we appreciate their support.  Mr. Hertel added that at the conclusion of the Governor’s Luncheon, he would hope that all of the Board members would stay around for the exciting Auction of the Livestock Champions.

Mr. Hertel stated that there are special attractions taking place every day during the annual Fair i.e. the Daily Parade, the Children’s Theatre, the Racing Pigs, and various other daily activities.  He added that there are also special events that will only take place once during the Fair i.e. Cherry Day, Veteran’s Day, Senior Citizens Day, etc.

Mr. Hertel stated that there will be only one major change to take place at the Fair in terms of the nightly entertainment.   He stated that instead of holding our concerts in the outdoor Band Shell area, the concerts will be taking place inside the air-conditioned Coliseum.  Mr. Hertel stated that the previous State Fair Board approved this change and he stressed that the change is for this one year only.   He, then, explained how the livestock shows will be relocated to the outside North Riding arena.  This will not affect any of the activities that normally take place in the multi-purpose livestock building.   Mr. Hertel stated that some concert seats for the Coliseum will be sold at a charge of $11.00 or less.  Most of the concerts will be $5.00 or free. Mr. Hertel is hopeful that a list of entertainers will be ready for distribution at the next meeting of the Board.

Mr. Hertel reported that the open Band Shell area will now be used for motorized events such as monster truck shows, motorcycle events, dare devil auto stunts, demolition derby attractions, and nationally sanctioned midget automobile races.  Mr. Hertel stated that the Band Shell arena would become Horse Power Heaven.  Mr. Hertel added that in choosing activities and various events for the Fair, three things are always considered:  1) Safety. 2) Cleanliness. 3) Quality/Family oriented entertainment.   Mr. Hertel stated that he strongly feels that all three of these components must be present in order to run the Fair properly.

Mr. Hertel was happy to report that all, except for one, of our sponsors have agreed to return to support the 2005 State Fair.  He added that our relationship with WJR is strong and intact and he will be meeting with the director of programs next week to begin discussions regarding special promotions for our 100^th Celebration of the Michigan State Fair.  Mr. Hertel stated that WJR is our official AM Radio station and although price tag has not been placed on the services they offer us, he knows the value of their in-kind services has to be in the tens of thousands. 

Mr. Hertel stated that Fox 2 has been our official television sponsor for a number of years and they are also excited about returning to promote the 2005 Fair.  Mr. Hertel reported that he did receive a call from the marketing manager of Channel 4 expressing interest in partnering with us for the upcoming State Fair.  Mr. Hertel stated that this is not something that normally happens to us.  He added that it is nice to have someone call us for a change and to give us a choice.  Mr. Hertel reported that five (5) FM Radio stations have agreed to promote the 2005 Fair, free of charge to us.

Mr. Hertel stated that in the past, the Detroit News has been especially generous and kind to us, but they have not officially agreed to come back and sponsor the 2005 State Fair.  These efforts will be pursued.

Mr. Hertel stated that he appreciates the patience of the Board as we are preparing to share a proposed budget report at the next meeting of the Board to be held in May.  Mr. Hertel stated that because of the limited staff members and the various tasks and responsibilities placed on all to finalize our Livestock and Community Arts Premium Books as well as maintain and secure all of our Sponsors agreements, he would like to put off presenting the budget report until the next meeting.  Mr. Hertel stated that Tim Jenkins, Asst. G.M., will mail a copy of the 2003-04 Budget report to all of the Board members.  Director Wyant made comments regarding the various budget cuts that have been made. 

Mr. Hertel reported that the Fair had a pretty good winter with very few maintenance emergencies.  He stated that a roof on one of the buildings blew off before this past winter. He stated that our income is up for special events and year-round activities. Mr. Hertel stated that we are receiving additional revenue from Joe Dumars Field House and the Little Caesar’s Hockey events as well as Vascor Cars & Trucks.   Mr. Hertel stated that all of the signs at this point are saying that our funding is moving in the right direction.  Mr. Hertel asked the Board for any questions or comments at this time in the meeting. 

Mr. Hertel stated that the Michigan State Fair is the only Fair without an outdoor grandstand and he added that the old grandstands were demolished by the Nederlander Group during the time when the Fair was under their management.  Mr. Hertel stated that the old grandstands were going to cost more to fix and repair than to just build a new one, so the Nederlander Group had the stands taken down.  The Nederlander Group was evicted from the Fairgrounds in 2002.  

Discussion was held regarding placing a historical marker at the Fairgrounds.  Director Irwin suggested that this might be something that we can look into and find an affordable company to do for us.  Discussions were also held regarding creating unique art activities or special artwork competitions for a unique outdoor grounds entertainment where the public could be invited to participate.  Karen Batchelor suggested contacting a private organization and entering into discussions to see if someone may be interested in donating their time, talent and art to help make the 100^th Michigan State Fair very special and colorful.  Ms. Batchelor said this artwork could become a permanent attraction for the Fair. Mr. Hertel stated that he had hoped to do something very significant with the city of Detroit for our 100^th State Fair.  He reported that he had met with the Detroit Mayor’s office and discussed additional promotions and attractions for the 100^th Anniversary of the Fair that would highlight both the Fair and the City of Detroit, but unfortunately the details were still not addressed by the City.

Mr. Hertel stated that at a later time he hopes to ask the Board of Directors to allow him to hire a person who will just work on special events and unique projects.  He also would like to discuss hiring a person who will go into the schools i.e. pre-schools, elementary and high schools, colleges, universities, trade schools, etc, and promote special activities for the Fair that will help create more awareness and interest.  Mr. Hertel stated that Grayling Elementary School that sits just north of the Fairgrounds on State Fair Avenue is one of the schools scheduled to close at the end of this school season.  Mr. Hertel stated that he finds this unfortunately very sad because Grayling Elementary School appears in many of the old photos taken of the Fairgrounds and its surrounding neighborhood.

Mr. Hertel gave some of the background information regarding various groups that have entered into partnership arrangement with the Fairgrounds.  He reported that Joe Dumars has a long-term lease agreement with us and have already invested 1.4 million dollars into the Agriculture Building and are holding daily basketball & sports team activities year round.   Mr. Hertel stated that the Parade Company will hold their exclusive Hob Nobble Gobble event at the Fairgrounds for the second year in a row and are happy with the arrangement here.  He added that we have a partial arrangement with Little Caesar’s Pizza.  Little Caesar’s Pizza has entered into a two-year rental agreement with us and they are currently holding hockey events eight (8) months out of the year.  Mr. Hertel stated that three organizations came in and talked to us about building a horse rack track, but nothing ever came of those discussions.

GOLF DOME AND ENTERTAINMENT PROJECT - Mr. Hertel introduced Tim Canty, Spokesmen and Chief Administrator for Urban Resorts and Sports LLC, who then gave a very detailed presentation and overview of the proposed and previously approved long-term lease agreement for the Golf Dome and Entertainment project for the Fairgrounds.   Mr. Hertel reported that this project had received approval by the former State Fair Advisory Board but the Governor has asked that the project also be reviewed and approved by the present State Fair Authority Board.  Mr. Hertel stated that after hearing today’s presentation by Mr. Canty, he is hopeful the Board would also approve this project in concept.

Mr. Canty reported that he entered into discussion with Mr. Hertel two years ago regarding building one Golf Dome at the Fairground and since their original discussions, the proposed project has grown even larger.  Mr. Canty stated that at this time their proposal includes the construction of two (2) domes. He presented details on the following:

Mr. Canty stated they are looking to renovate of the Hudson’s Auditorium.  Renovations to the Community Arts Building as well as adding an elevator in the Administration Building are among the plans.  Mr. Canty stated that his group has also proposed creating a new corporate entertainment center in the present Family Grove Picnic area.  Construction of a new Band Shell, renovations and additions to the existing Volunteer Headquarters, renovating the Veteran’s Monument, and renovating the Grant House were also included in today’s proposal.  Mr. Canty stated that his group would also be interested in re-establishing the Reflecting Pond that was once a beautiful attraction at the Fairgrounds.  Mr. Canty said that he recently brought in a firm to dig the inside area of the pond and it was discovered that the original walls are still there.  Mr. Canty said that, if approved, it is very likely that a new Reflecting Pond Fountain could be installed and opened in time for the 2005 State Fair.  Mr. Canty reported that included in these various renovations, his group has also proposed re-landscaping the grounds within the outlined area and adding a new fence along State Fair Avenue.  Mr. Canty then offered an extensive detailed report on the Golf Dome & Sports Center structure that Urban Resorts and Sports, LLC has proposed for the Fairgrounds.  In this report, Mr. Canty stated the two (2) domes would be adjacent to one another.  One dome will be devoted to golf and will be approximately 72,000 sq. ft.  The other dome will be devoted to action sports and will be a minimum of 150,000 sq. ft.  Both domes will be in operation eleven (11) months out of the year, closing for the State Fair in August.  Mr. Canty also included in this presentation information regarding security, maintenance and compensation to the Fairgrounds, if approval of this lease agreement is granted.

Mr. Canty opened the floor for various questions and comments regarding the proposed Golf Dome and Entertainment lease agreement.  Discussion was held at length and at this time, Mr. Canty made himself available to respond to all of the questions presented by the Board.

ON MOTION BY Edward Deeb, supported by Karen Batchelor, and carried to approve in concept, the Urban Resorts and Sports, LLC project.   The concept of the proposal for a Golf Dome and Entertainment project was approved unanimously. 

Discussion was held regarding preparing a public notice to go out annually inviting interested parties who may want to come in and discuss future developments and long term lease possibilities with us.    Details regarding the guidelines, policy and evaluation process were discussed.   It was agreed upon that this item would be tabled and brought back before the Authority Board at the next meeting in May.

ON MOTION BY Pat Albright, supported by Robert Porter, and carried, the State Fair Manager, John Hertel, was given support and approval from the State Fair Authority to continue looking into and pursuing additional programs, activities, and lease arrangements for the future of the Fair.  The Motion passed unanimously.