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 1:45 PM, at MSU, Kellogg Hotel and Conference Center, 55 South Harrison Road, Room #62, in East Lansing.

Karen Batchelor, Senior V.P. of Public Affairs, Detroit Regional Chamber (via conf. call)

APPROVAL OF MINUTES

The minutes of the meeting held on May 19, 2005 were reviewed. On Motion by Director Irwin, supported by Dr. Coon, and carried, the minutes were approved as written with the following amendment offered by Mr. DeCock:

The May 19^th Minutes will reflect a conversation that took place regarding the Miracle of Life Birthing Exhibit. Mr. Hertel reported that a black top walkway will be added to the Miracle of Life Birthing Exhibit in time for the 2005.

MANAGER’S REPORT

Mr. Hertel reported that just this morning he spoke with the Governor’s Office of Appointments and was told that within the next five business days, a chairperson will be appointed for the State Fair Authority Board of Directors. Mr. Hertel had previously been told that a chairperson would be in place for today’s meeting but unfortunately that did not happen, so Mr. Hertel stated today that he is very hopeful that this appointment will be in place by the next meeting of the Authority.

Mr. Hertel distributed a copy of a special announcement that recently came from Director Dan Wyant. After serving as the Director of the Michigan Department of Agriculture (MDA) for the past nine years, Director Wyant has offered his Letter of Resignation. Director Wyant has accepted a position with the Edward Lowe Foundation. Mr. Hertel reported that Director Wyant will be leaving the department as of July 29^th, just two weeks before the opening day of the Fair.

Mr. Hertel shared with the Board how the position of the MDA Director is an appointed position made by the Michigan Agriculture Commission and not an appointment made by the Governor.

2005 STATE FAIR PLANNING – Mr. Hertel was happy to report that the plans for the 2005 State Fair are now on schedule and the adjustments have all pretty much been made as far as us moving into our new department, the Michigan Department of Management and Budget (DMB).

Mr. Hertel was pleased to share with the Authority members the 2005 Michigan State Fair entertainment line-up. Mr. Hertel stated that because of the large variety of competition with other venues, it is very difficult to put together such a concert series. Mr. Hertel reported that competition is not a problem for the New York State Fair in Syracuse, Minneapolis State Fair in Minnesota, Ohio State Fair in Columbus or the Indiana State Fair in Indianapolis. He added that in these States no one attends other major events during the run of their annual State Fair. Mr. Hertel stated is unfortunately not the case for us in Michigan. He reported that our list of competing venues include Meadow Brook, Freedom Hill, the Palace, Chene Park, and the DTE Summer Concert series. He added Comerica Park will be featuring the famous singer Eminen in concert during our upcoming State Fair. Mr. Hertel, then, gave a full report of the 2005 State Fair entertainers.

Mr. Hertel announced Dierks Bentley, who was the lead star last week on the “Good Morning America” show and also has the number one album on the charts this month, will appear on our main stage inside the Coliseum on Opening Day, August 10^th. Mr. Hertel reported that Boys II Men will perform on Thursday, August 11^th, followed by T.I on August 12^th, and the Galaxy Talent Show will be on August 13^th. Josh Gracin, the top country vocalist who performed on “American Idol” will take our stage on Sunday, August 14^th. Mr. Hertel stated that the only night when our stage will be dark (no concert) is on August 15^th. He reported that an Elvis Fest will be highlighted at the Fair on Tuesday, August 16^th and the list of activities for this special day will include a tremendous Elvis display featuring more than 500 items that were actually owned by Elvis. This display is called “The Kings Ransom”. Mr. Hertel stated that August 16^th is the 28^th Year Anniversary of Elvis’s passing. He added that if this event is successful, we may want to consider making it an annual event held at the Michigan State Fair since this date will always fall during the two week run of the Fair.

Mr. Hertel reported that our biggest act will be Z.Z. Top performing on Wednesday, August 17^th. He stated the Palace of Auburn Hills did everything they could to get this act from us, but they were unsuccessful. Brian McKnight will perform on August 18^th. The Game, which is a top hip-hop entertainer, will appear on August 19^th, and the famous group with eight gold records, The Impressions will perform on August 20^th. Mr. Hertel reported that Alice Cooper will be our closing day entertainer on August 21^st. Mr. Hertel stressed that moving the concerts into the Coliseum and relocating some of the livestock exhibits is a one-time only arrangement in place for this year’s 2005 Michigan State Fair.

Mr. Hertel reported that all of the concerts are free with paid admission into the Fairgrounds except for the following: All seats to the Dierk’s Bentley concerts will cost $10.00, T.I. is $5.00 per person, Z.Z. Top is priced at $20.00 per person, Brian McKnight is $10.00, and The Game will cost $5.00 per person. Mr. Hertel stated that all of the other six concerts are free and he noted that all seats for all shows are first come/first serve, general admission.

Mr. Hertel shared the best piece of information regarding our 2005 entertainment. He stated that our budget to book these acts was set at $500,000 but we actually managed to sign all of these great acts at $458,000 ($42,000 under our set budget for entertainment). Mr. Hertel reported that there are approximately 7,000 seats in the Coliseum. He added that tickets to the concerts would be sold at the State Fair Coliseum Box Office only and no other ticket service will be made available this Fair season. Mr. Hertel reported that an annual safety and security meeting is held every year prior to the opening of the Fair. He added that all safety and emergency forces are included in these meetings. The Michigan State Police, Detroit Police Department, Hart Medical, the Fire Marshall’s Division, Ferndale’s Police, Traffic and Engineering, The Detroit Mounted Division, and the contracted State Fair Security team members are all among the many departments included in the pre-Fair safety & security meeting.

Mr. Hertel reported that we fortunately do not really suffer any major traffic problems as a result of the yearly Dream Cruise that normally takes place during the second weekend of our Fair. He stated that we also will host a special car show again this year at the Fairgrounds during the same weekend as the cruise. He added that WJR will be promoting the car show “Live” at the Fair all weekend. Ralph Haney has promoted this wonderful car show at the Fair for the past two years and Mr. Hertel said that he has always done a really terrific job. Mr. Hertel stated the Impressions will be performing “oldies but goodies” music for our Saturday night entertainment in the Coliseum.

Mr. Hertel reported that although an estimated revenue has not been officially established for the concerts, he stated we have been extremely reasonable and careful with how we priced the shows. He added that our biggest concern was in making it financially possible for someone to attend a Fair concert, who may not be able to attend DTE or more expensive venues.

Mr. Hertel encouraged the Authority members to all be present at the Opening Day Ribbon Cutting Ceremony on Wednesday, August 10^th. He suggested that everyone arrive around 11:15 a.m. to begin lining up for the Parade kick-off. Mr. Hertel stated there will be news and media coverage for this great event. All Board members should enter the Fairgrounds using Gate “A” located off State Fair Avenue, just east of Woodward.

Mr. Hertel invited everyone to attend the Governor’s Day Luncheon and Sponsor Reception followed by the Auction of the Junior Livestock Champions on Wednesday, August 17^th, beginning at 11:00 a.m. Again, all members were invited to enter through the State Fair entrance, Gate “A”. Mr. Hertel stated that this very exciting day is all compacted into approximately three hours and he strongly urged everyone to come out and participate.

Discussion was held regarding the Ribbon Cutting Ceremony and who will be asked to cut the ribbon this year. Mr. Hertel stated that normally we would ask the Mayor of the City of Detroit to cut the ribbon, but this year, strong consideration is being given to the J.L. Hudson family. Mr. Hertel explained how the Hudson family purchased the land and later donated the property to the State of Michigan for the sole purpose of holding an annual State Fair. Karen Batchelor and Elaine Driker both offered their assistance in making contact with a member of the Hudson family.

Mr. Hertel thanked Dr. Coon and Dean Armstrong for all of their efforts in bringing M.S.U. in as a financial sponsor for the upcoming Fair. Unfortunately, Mr. Hertel stated M.S.U. has called and indicated that they are unable to provide a cash sponsorship this year, but they have agreed to have a greater presence in the Agriculture Building. Mr. Hertel stated that Jeff Haarer also has been very helpful in this area of getting more participants and involvement with the Agriculture Building.

Mr. Hertel reported that all except for 4 of our sponsors from last year have agreed to return and support the 2005 Fair. Mr. Hertel stated that he made a decision to reduce some of the money that we would spend this year for our television promotions because we had an opportunity to obtain nine (9) billboards throughout the metro Detroit area for six weeks prior to the Fair’s opening to help promote and advertise the Fair. Mr. Hertel gave a detailed description of the billboards and stated that he will try to bring in a copy of them to the next meeting of the Authority. Mr. Hertel reported that once again, the Berline Group has won our 2005 Advertising bid and they were responsible for getting us involved with the wonderful billboard advertisement program.

Mr. Hertel was happy to announce that the Detroit Tigers have entered into a co-partnership arrangement with us and they have agreed to promote the State Fair during their August 5^th Ball game. Mr. Hertel stated that there will be a petting zoo and mounted people holding flags during the National Anthem creating lots of attention and publicity for the State Fair. He added that everyone who purchases a ticket to this special Friday night ball game on that day will in turn receive a 50% off coupon good for Opening Day admission into the Fair. Mr. Hertel stated a fabulous fireworks display is also scheduled as part of the Comerica Park Ball Game on August 5^th.

Mr. Hertel reported that special promotional discounts are also underway with Fox 2 TV in conjunction with the Tigers Ball game. Details regarding these possible promotions will be pursued.

Mr. Hertel stated that Fox 2 will produce our State Fair commercials again this year at no extra cost to us. These commercials will run on five television networks. Mr. Hertel reported that WJR Radio has agreed to once again be our official AM Radio Sponsor and he added that we also have six FM stations promoting the Fair, free of charge to us. Mr. Hertel stated that the Detroit News will have a big State Fair wrap-around in the paper again the day before the Fair opens. The wrap highlights and promotes all of the Fairs’ special days and coming attractions. Mr. Hertel stated that we are seeking a 10,000 sponsorship to cover this special Detroit News promotional.

Mr. Hertel was happy to report that the plans for the First Day Commemorative Stamp event have all been finalized. The United States Post office will be issuing four new commemorative stamps featuring American Automobiles. Mr. Hertel stated this special ceremonial event will take place in the Coliseum on August 20^th and the Michigan State Fair will be the only place where people can get a post-marked First Day Commemorative Stamp.

Mr. Hertel reported the admission into the Fair is still $9.00 for adults, $4.00 for children – 11 years of age and under, and it is Free for children under the age of 2. He added that parking remains $5.00 in all lots.

Mr. Hertel reported that he recently met with Dr. Zembala of the Detroit Historical Museum and Mr. Zembala shared with him various prints and photos taken of the State Fair when it was located down at the riverfront in the 1800’s. Negotiations are currently underway regarding the possibility of some historical Fair items on display representing the year 1905. Mr. Hertel stated the only problem we are facing with this idea is the expenses related to putting together and securing such a display. He added that we offered the Historical Museum free space at the Fair as well as banners for signage. These negotiations will be pursued.

Mr. Hertel stated that none of the plans that we were previously making with the City of Detroit are taking place this year. He added that unfortunately after 109 years of providing a wonderful service and program, the Detroit Mounted Police, two years ago had to cancel their drill team activities at the Fair. Mr. Hertel stated that again this year the Detroit Mounted Police will not be performing their special horse drill and it may also be a situation where they can no longer provide us an adequate level of security for the 2005 Fair. Mr. Hertel stated that the Detroit Mounted Police is down to 9 horses from 40 and approximately 4 riders are left. Discussion was held regarding alternatives that could be considered as a result of not having the Detroit Mounted Policemen at the Fair. Mr. Hertel stated that he will pursue the Wayne County Mounted Division and also he may try to contact the Michigan State Mounted Policemen.

Mr. Hertel was happy to announce the Pork Chop Revue will be coming to the 2005 State Fair. He stated the Pork Chop Revue features educated pigs that perform all sorts of interesting tricks. He added this is a wonderful event for the entire family and we are all very excited about this new entertainment.

Mr. Hertel reported that although the Circus will be back in place for this year’s Fair, due to many complaints, we have asked that they do not bring the caged lions and tigers back. Mr. Hertel stated the Circus is a wonderful attraction for the Fair.

Mr. Hertel reported that he approached the owner of the Grand Hotel while attending a St. Patty’s Day Party hosted by WJR. Mr. Hertel stated that the Grand Hotel has agreed to bring their very fancy horse-drawn carriage to be part of the Michigan State Fair daily parade and activities, representing Mackinaw Island. Mr. Hertel added that this will be done at no cost to the Fair. The Grand Hotel has promised three set of horses with three trollies and will be in operation eight hours a day transporting guest around the Fair. Mr. Hertel stated that we have agreed to provide them with free stabling for the horses and they have agreed to bring in their own staff of cleaners to follow behind the horses, as they travel throughout the Fair. Mr. Hertel stated that the special horse drawn carriage rides will add a wonderful new flavor to our 2005 Fair.

GOLF DOME AND ENTERTAINMENT PROJECT - Mr. Hertel reported that Monique Pointer and other DMB staff members from Director Irwin’s office have been working very diligently to get the Golf Dome and Entertainment lease agreement finalized. He added that the lease should be ready and transported to the Golf Dome group shortly. Mr. Hertel expressed how pleased he is with how well things are moving along. He stated that after this lease agreement is in place, things should move even quicker for all other Fair proposals.

Negotiations and discussions are currently underway with Little Ceasar’s regarding entering into a long-term lease arrangement.

Mr. Hertel stated that the Michigan Department of Transportation has told us the road construction presently taking place on Woodward Avenue just outside the main State Fair parking entrance, will easily be completed before the opening of the Fair on August 10^th.

Mr. Hertel reported that the Parade Company has recently signed an agreement with us again to hold their exclusive Hob Nobble Gobble event here for the 2^nd year in a row. He added that the Cattle Baron’s Ball will also return for the third time. This great American Cancer Society event is the largest money making charity fundraiser held in southeast Michigan.

Discussion was held regarding having special State Fair signage placed at various locations along Michigan roads to draw more awareness and attention to the State Fair.

Mr. Hertel stated that Jeff Murri, President and General Manager of Fox 2 TV has contacted him and indicated that although Fox 2 is fully prepared to provide the Fair with all of the agreed upon promotions and great advertisements, they would like a letter from the Board of Directors stating that we will pay them for their services within 60 days of the conclusion of the Fair.

Discussion was held regarding the process taken to pay for all of our Fair exhibitors and contractors. ON MOTION BY Director Irwin, supported by Mayor Porter, a letter will be sent to Fox 2 TV, Jeff Murri, expressing our sincere thanks for all that they do for the Fair and also agreeing that we will pay Fox 2 for their services provided within the sixty days of the Fair’s conclusion. The motion was carried and passed unanimously.

OLD BUSINESS

Mr. Hertel stated the lease for the Golf Dome and Entertainment Center is almost final and he is hopeful that the contract will be signed next month. Mr. Hertel stated that we are now ready to begin moving forward on other lease negotiations. He then distributed a draft of the proposed Michigan State Fair Ad to be placed in various newspapers throughout Michigan, inviting and encouraging anyone interested in long-term leasing and future partnerships to come in and begin discussions with us. The Authority reviewed the ad and discussion was held regarding it’s content.

NEW BUSINESS

Mr. Hertel reported that he would like the Board of Director’s to consider placing on the agenda for a future Authority meeting an item that addresses the State Fair Manager’s Salary. Mr. Hertel reported that based on the information he has obtained from other State Fair’s, he is one of the lowest paid fair managers. He reported that most of the other State Fair’s receive extra funding from their State to help support the Fair and his recent study shows that all of these other fairs also have additional staff members to help run the fair. Mr. Hertel stated that besides having a very limited team of staff members, he has to go out every year to solicit sponsorship agreements and obtain the funding needed to operate the State Fair. Discussion was held regarding at what point it would be appropriate to include this item on the agenda. It was further decided that this item would be tabled until a future meeting that would include a full body of Board members.

PUBLIC COMMENTS

There were no public comments offered at today’s meeting of the Authority.

NEXT MEETING DATE

The next meeting of the Michigan State Fair Authority was scheduled for Thursday, July 28, 2005, beginning at 1:30 p.m., in the Administration Building, upper Conference Room, at the Michigan State Fairgrounds, in Detroit.

ADJOURNMENT

ON MOTION BY Dr. Coon, supported by Mr. Valliere, and carried, the meeting was adjourned at 4:10 p.m.