Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mr. Mark T. Gaffney, newly appointed Chairman, on this date, beginning at 1:43 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

APPROVAL OF MINUTES

The minutes of the meeting held on July 28, 2005 were reviewed. ON MOTION BY Mr. Deeb, supported by Ms. Batchelor, and carried, the minutes were approved and passed unanimously with the following corrections and additions being made:

Mayor Porter noted that on Page 4 (first paragraph & first sentence) the word “no” should read “not”. The addition of the letter “t” on page 4 was noted for today’s report.

A correction was made regarding the previous meeting attendance. Mr. Albright was listed as being present when he was indeed absent for the July 28^th meeting. This correction was noted.

Mrs. Driker reported that her quote relative to the Phoenix Group was incorrect and should be amended to read as follows: “Upon my return to Michigan, I will contact the President of the Palmer Woods Association and ask her to contact a representative of the Phoenix Group”. Mrs. Driker mailed and faxed a letter to this regard to the Chairperson of the Palmer Woods Association and forwarded a copy of the same to the Fair Manager. The minutes were approved as amended.

CHAIRMAN’S COMMENTS

Chairman Gaffney congratulated Fair Manager, John Hertel and his staff for a very successful State Fair. Chairman Gaffney stated that the 2005 Fair appeared to be very safe and clean and he thanked the members of the Authority Board for their support and presence at the Fair. He then asked that Mr. Hertel, on behalf of the State Fair Authority, to share their thanks and congratulations with all of the State Fair Staff members. Mr. Hertel stated that not only would he forward this message to the members of his staff, but that he would also relay the message to the many wonderful Fair volunteers and sponsors of the Fair.

MANAGER’S REPORT

Mr. Hertel reported on the following three negative incidents that took place during the 2005 Fair. He stated that he feels it is very important that the Authority is made aware of all information, good or bad, so that if they ever hear of things that happened at the Fair, they will be able to respond accurately. Mr. Hertel stated that these following three incidents were very unusual for the Fair and he added that he has not experienced so much during the course of one Fair since he has been manager.

Three people were injured but not seriously hurt when a vehicle being driven by a man who was suffering from a stroke went out of control and ran into a ticket booth just inside the Woodward Avenue parking lot. Mr. Hertel reported that the accident took place during the last weekend of the Fair and two of the people injured were released from the hospital the same day, the third person was released the following day. Mr. Hertel stated that the MI State Police along with Hart Medical kept us well informed of the status of all three injured. He added that we did not hear back concerning the man who suffered a stroke. The latest report received was that he was still unconscience and undergoing neurological testing.

By judges’ order, the Fair was served notice to send the wages of the Garcia Circus to a party in Colorado, which sued and garnished the wages of the Circus group contracted to perform at our 2005 State Fair. Mr. Albright questioned whether this situation with the Circus cost the Fair anything. Mr. Hertel stated that we had to first legally notify them of the garnishment and after we explained to them how the monies we owed them would be forwarded to the State of Colorado to pay their bill, the Circus immediately left the Fairgrounds, five days short of fulfilling their contract.

Mr. Hertel reported that the hip-hop artist “T.I.”, after having the public wait for nearly three hours for his performance at the Fair, never showed up. Mr. Hertel stated that although people naturally were very upset about this, there were only minor scuffles and pushing that took place as the people were exiting the building. Mr. Hertel stated that contrary to any rumors, he was not aware of anything really bad that occurred that evening. He added that the MI State Police, ticket takers, volunteers and his State Fair staff handled this situation very well, without any significant problems to report. Mr. Hertel stated the only people who were unprofessional and did not act properly were the promoters and agents for “T.I.” He added that the manager of “T.I.” was present at the Fair, along with the back-up group, continually assuring us that the main artist “T.I.” would be here any moment. Mr. Hertel stated that we are in the process of taking depositions and will be filing a significant lawsuit against T.I. Mr. Hertel stated that the management agents of “T.I.” contacted us and asked if he could perform at the Fair for free.

Mr. Hertel reported that our response was “absolutely not!” Mr. Hertel stated that we have no intention of helping this artist out of the hole that he created for himself. “T.I.” not only put us in an embarrassing situation, but this could have been a very dangerous situation also. Mr. Hertel stated that we have already held two conversations with the Attorney General’s office and further discussions regarding this matter will take place. He added the MI State Police expressed their willingness and strong desire to participate in this lawsuit against the artist “T.I.”.

Mayor Porter questioned whether we have considered having split tickets or separate ticket stubs for the Fair and for the nightly concerts. Mr. Hertel stated that after the problem we encountered with the “T.I.” concert, where there was no ticket stubs to present showing proof of concert entry, we immediately looked into this matter and created separate ticketing for the remainder of our concert series. He added that it has already been decided that split tickets will be used for all future Fairs.

Mr. DeCock questioned who pays for the damages involved with the ticket booth during the vehicle accident at the Fair. Mr. Hertel reported that there was only one ticket booth damaged and due to limited staff and this being the time of year-end, we will make a determination as far as how much the damages cost and who will be responsible for these expenses at a later time. Mr. Hertel stated that a full financial report should be presented to the Board, as early as next month.

2005 STATE FAIR FINANCES – Mr. Hertel reported that given the very latest calculations, which are very conservative, the paid attendance for the 2005 State Fair was only down by 52,000 people. He added that even being down by this number in our attendance, this year’s Fair still raised slightly more money in sponsorship agreements and we were able to save more in the area of cost cutting expenses compared to last year’s State Fair. Mr. Hertel stated that we actually went into this year’s Fair with more money than we did last year.

GOLF DOME & ENTERTAINMENT PROJECT – Mr. Hertel reported that the Golf Dome group has informed us that a meeting is scheduled to take place tomorrow with their financial supporters. After that meeting has taken place, they would like to come in and meet one last time with the Department of Management and Budget, the Attorney General’s Office and Fair Management. Mr. Hertel stated that he has not been very happy with the lack of participation from the Golf Dome people and he is beginning to feel some real concern regarding them putting together a solid package.

Mrs. Driker shared some very interesting information with the Board, which she had received from one of the named financial backers of the Golf Dome project. This person stated that Tim Canty, President of the Golf Dome and Urban Resorts Company, has not secured the necessary funding for this project. Mrs. Driker raised a concern that the financial investors listed and named should be looked at more carefully by the State, because the last thing we want to end up with is a big hole in the ground that needs to be filled.

Director Webb Sharpe stated before a lease is signed, the department does make sure that there are adequate finances to support the expenses of the project. She added that when dealing with the construction of new projects, we do not simply want to get it built, but we want it to also operate successfully. Monique Pointer added that part of the goal and responsibility of the State is to make sure all aspects of the project are covered and that the State is fully protected. She stated that we are waiting at this time for the Golf Dome group to come in with their finances. Mrs. Pointer also added that it has been requested that they present a detailed layout of what they will be building at the Fairgrounds. These details would include, but not be limited to, materials to be used and the exact location of the construction, along with the various dimensions of the buildings. Director Webb Sharpe reported that the State has appropriate ability to cancel the lease at any time should any unforeseen problems arise.

Mr. DeCock asked if there were any specific details in the present agreement regarding where they can or cannot build their project. Chairman Gaffney stated that there are two parts to the contract: The first is the lease contract and the second is the construction contract. Mrs. Pointer further explained the various components of the lease and the role of the Department of Management and Budget when dealing with various lease agreements.

Mr. Deeb questioned whether or not we are going to continue being patient with the Golf Dome people or whether it may be to our advantage to pull out from these negotiations at this time. Mr. Hertel stated that we should certainly know by next month’s Board meeting whether or not we are moving ahead with this project. Mr. Deeb suggested sending a letter to the Golf Dome group requesting all necessary documentation to further these discussions and present negotiations.

ON MOTION BY Mr. Deeb, supported by Mrs. Batchelor and carried, the Authority moved to have the Fair Manager send a letter to the Golf Dome group requesting a description of the site plans that they have proposed for the Fair and a full list of their financial investors. This detailed description should include, but not be limited to, exactly what it is that they have proposed to build, where will it be built and with what materials will be used, the size and any construction details available. Included in this letter to the Golf Dome group it will be further stated that if they are unable to meet these requirements within thirty (30) days, we will consider there proposed project to be dead. The motion passed unanimously.

Mr. Albright suggested that it might be wise for us to look into getting a bond from these various potential partners. He questioned who would be responsible for fixing the hole, should a group come in and begin construction but leaves the project incomplete. He questioned our ability to have a State of Michigan or a special performance bond in place should any problems arise once construction has begun. Mrs. Pointer stated that she knows the State is legally protected but she added that she would have to get a more accurate answer for the Board concerning the issue of bonding.

Mr. Hertel stated that we have now entered into special lease arrangements twice and he assured the Board. Mr. Hertel added that having the State has the official overseer of our contract negotiations protects the Fair and we are glad to have it so.

Mr. Hertel reported that an initial meeting would take place next Tuesday, September 27, 2005 with the group from Phoenix Theatres.

NON-FAIR EVENTS – Mr. Hertel was pleased to report the Red Wings held an exhibition hockey game at the Fairgrounds over this past weekend and based on the number of cars parked in the Woodward Avenue parking lot, it was obvious that many patrons showed up to participate in these activities. He added that we might be very near making an agreement with Wayne State University, in terms of having their hockey team come back and play at the State Fair Coliseum Ice Hockey arena. Mr. Hertel stated that he observed Wayne State passing out tentative schedules of their 2005-06 Hockey events at the Red Wings game and on their schedule they listed the State Fairgrounds as a possible site location for their future games. Mr. Hertel reported that if Wayne State agrees to hold their hockey games at the Fairgrounds, it would allow us an opportunity to show the Fair off to many people who otherwise would never come to the Fairgrounds. Mr. Hertel stated that if Wayne State should agree to host their league games at the Fairgrounds, these activities would not interfere or cause any conflict with other scheduled events such as the Little Caesars’ Hockey events or Joe Dumar’s Field House.

Mr. Hertel reported that Glen Murray of Little Caesars’ has agreed to change our situation with the number of locker rooms made available in the Coliseum. Mr. Murray has agreed to donate, free of charge to the Fair, an additional four locker rooms inside the Coliseum arena, going from four locker rooms to a total of eight rooms. Mr. Hertel stated that the situation with the ice arena not only brings in additional revenue for the Fair but it has also made the Fair a more able place to hold events.

Mr. Hertel stated that he has begun discussions with WOMC regarding advertising a series of special GM car shows possibly to be held at the Fair during the months of May, June and July. Mr. Hertel gave a brief description of the proposed car shows and stated that this could be very unique in terms of the car show being named a “Blue Ribbon” event with special trophy’s and prizes being presented.

Mr. Hertel stated that, financially, the Fair seems to be coming along well considering these three important factors: 1) Non-Fair Revenue 2) Annual income from Little Caesars’ and from Joe Dumar’s Field House and 3) The Fair itself.

Mr. Albright questioned whether there is a standard rental fee for the State Fair facilities. Mr. Hertel stated that this varies depending on what type of a lease we have agreed upon, whether it is a long-term arrangement or just a one-time event. He added that for long-term agreements such as Hockey, we receive 5% of the rental fees, 10% of all ticket sales and we receive 100% of the parking. He added that we do use a special contracted concessionaire and in the contract, we have the ability to use other concessionaires 12 times. Mr. Hertel stated that this is necessary because sometimes it may be the only way we will be able to secure an event coming to the Fair is to allow them usage of their own outside concession.

In response to a question raised by Mr. Albright, Mr. Hertel stated Little Caesars’, along with Joe Dumar’s pays for the monthly services of all electrical and heating usage, security and maintenance expenses. He added that in a situation like last year when we had the roof on the Dumar’s building blow off, it was our responsibility to pay the $40,000 to cover the cost of the roof replacement. Discussion was held regarding whether or not the State should pay these expenses for the Fair and whether or not insurance for such mishaps is available. Director Webb Sharpe reported the State offers special supplements at various times and may step in and pay the bill when the Fair cannot afford to pay such unfortunate occurances.

Discussion was held at length regarding setting a date for the 2006 MI State Fair. Mr. Hertel stated that everyone benefits when the date of the Fair is set and publicized well in advance. He stated that if legislation passes and schools are scheduled to begin after Labor Day, it would be better for the Fair to move it’s dates back to where the Fair ends on Labor Day. He stated that ending the Fair on Labor Day has been a tradition of the Fair for many years and based on the number of calls our office has received and the number of letters written, he believes the public would be very pleased if the Fair would go back to this old time tradition. But he added that if schools do not start after Labor Day, then we would be better off to keep our new earlier start dates.

Mrs. Driker asked if we should maybe consider running the Fair an extra weekend, moving the Fair from two weekends to three. Mr. Hertel stated that we tried running the Fair longer and discovered that it is extremely hard on the limited staff, the overhead expense goes up significantly and we can only get so much out of our volunteers. He added that he really hopes the legislation will pass and schools throughout the State will begin after Labor Day.

Discussion was held regarding how our annual State Fair dates affect the various other Fairs in our Michigan counties and throughout other states, in particularly as it concerns livestock exhibitors. Mr. Albright shared experience of his family as they hauled and showed their cattle at the various Fairs over the summer. He explained, in detail, the challenges he and other exhibitors faced as they traveled from Fair to Fair in such a short period of time. He added that there are at least 30 county Fairs conflicting at one time or another with the main State Fair. Mr. Albright stated that he would certainly appreciate it if a decision to set the 2006 Fair dates could be made at next months meeting of the Board.

Before leaving the meeting Mayor Porter made two quick points: First he stated that he would like the Fair to establish greater communications and community involvement with various schools and he stated that he was recently approached by a handful of teachers who have expressed a willingness and interest in working out a special program with the Fair and their students. 2) Mayor Porter asked if it would be possible to discuss circumstances concerning “Ash Trees” at the next meeting of the Board. He stated there is a group of people in the Ferndale area doing different experiments on the problems associated with the dying of the states Ash Trees and he would like to discuss methods and ways that we may be able to save the trees at the Fair. Mr. Hertel stated that we are starting to lose some of the Ash Trees just outside the back of the Administration Building.

Chairman Gaffney stated that it would be good for the Authority to set aside an upcoming Board meeting to brainstorm and discuss various ideas on how we can get our communities more involved with the Fair. Chairman Gaffney suggested having “Ash Trees” and the “2006 State Fair Dates” placed on the Agenda for the next meeting of the Authority Board in October. Mr. Hertel agreed that he would check with Wade Shows, the rides and games company, regarding changing the date of the Michigan State Fair and how it will affect their summer schedule. Further discussions were held regarding how the dates of our annual State Fair affects so many other departments and groups, even as it relates to Agriculture and the timing of judging and activities held at various Fairs around the State.

ON MOTION BY Director Webb Sharpe, supported by Mr. Albright, and carried, to give Fair Manager John Hertel authority to move ahead and change the 2006 Fair dates should legislation be passed and signed by the Governor changing the start date for Michigan schools. The motion passed unanimously.

GENERAL MANAGER’S RENUMERATION – Mr. Hertel distributed a prepared list of various salary ranges for State Fair Manager’s and Director’s throughout other states. This report included the Ohio, New York, Indiana, Wisconsin and Minnesota State Fairs. Mr. Hertel asked the State Fair Authority Board to consider giving him an increase in pay based on these salaries for other Fair Directors. Mr. Hertel stated that his present salary is $86,460 and he added that he has not received an appropriate increase in his pay for several years.

Mr. Hertel reported the Governor’s office has expressed their support for this request and they believe an increase in wages for the State Fair Manager is a very reasonable request to make. Mr. Hertel stated that he was, at first, very concerned about whether or not the supplement would pass. Now that it has been passed, he hopes the Board would seriously consider his request. Mr. Hertel reported on the conditions of the Fair and the financial status of the Fair before he was appointed State Fair Manager by Governor Engler at the conclusion of the 1993 Fair, when the Fair suffered the worse attendance ever. Mr. Hertel shared details concerning the state subsidized, financial support received by other Fair Directors to help run and operate their yearly Fair event.

A MOTION WAS MADE BY Mr. Deeb to give Mr. Hertel an increase in pay, bringing his salary up to $100,000 effective immediately. Seconded by Mr. Valliere. Then a lengthy discussion followed with members stating their support and opposition to the motion.

ON MOTION BY Mrs. Batchelor, seconded by Mrs. Driker, and carried, the following motion was made to establish a sub-committee to develop a plan for an increased salary for the State Fair Director. The sub-committee would look at and establish a salary range for the Fair Director and then the sub-committee will make a recommendation to the Authority Board, by next month, as to how much of a wage increase the Fair Director should receive retroactive to this September 19^th meeting. Without further discussion, the MOTION PASSED UNANIMOUSLY.

Mr. Hertel thanked the Board for their consideration of this matter and he further stated that he did not have any problem in waiting an additional month. Mr. Hertel stated that he does not wish to have the sub-committee recommend or even try to establish an expense account for him. He further stated that he would not feel comfortable accepting an wage increase to $110,000 given the current financial status of the State.

OLD BUSINESS

Mr. DeCock noted that at the last meeting of the State Fair Authority the subject of voting for a Vice Chairperson for the Board was discussed and he was interested today in knowing whether this suggestion would further be considered.

Mr. Valliere nominated Mr. Edward Deeb, President & CEO of MI Food and Beverage Association, to serve as Vice Chairman of the Michigan State Fair Authority Board of Directors. Mrs. Batchelor supported this nomination and the votes were unanimously carried and approved, to elect Mr. Deeb as Vice Chair. Because Mr. Deeb had just previously departed today’s Board meeting, Chairman Gaffney offered to contact Mr. Deeb and notify him of the decision made in his absence.

Mrs. Driker questioned what is the current status with the recent development interests expressed by the Detroit Department of Transportation (DDOT). Mr. Hertel stated that DDOT received a grant four years ago and would now like to use the grant to enhance and expand the bus terminal located on State Fair property, just south of our main entrance on Woodward Avenue. He added that this is the first time DDOT has contacted us regarding the history of their lease arrangement with the State Fairgrounds and the City of Detroit. Mr. Hertel added that they are in default because the monies ($1.00) that was to be handed over to the Fair each year has not been paid for at least the last twelve years that he has managed the Fair. Mr. Hertel stated that DDOT has been placed on our list of calls to make, concerning exactly what it is they would like to do concerning the bus terminal at the Fair location. Mr. Hertel stated that he would welcome a meeting with them and he strongly believes that it would be in our best interest to maintain a bus transportation system at the Fairgrounds. Mr. Hertel stated that these arrangements may also include enhancements to the appearance of the area on Woodward Avenue. These discussions will be pursued.

NEW BUSINESS

Mrs. Driker stated the Woodward Avenue Action Association would be interested in developing a relationship with the Fair and she may be able to create some communication with their Executive Directors. This effort will be pursued.

Mrs. Driker also stated that it might prove to be very worthwhile if we could have some of the students from Wayne State do a marketing, research and study for the State Fair. She added that she will pursue these efforts and will notify Mr. Hertel should a meeting be arranged.

Mr. Hertel distributed two photos highlighting various produces, tree growers and other special commodity exhibits that once filled the Michigan Mart Building and the State Fair Agriculture Building. He added that many people think they have to live on a farm in order to display their fruits and vegetables at the Fair. Mr. Hertel stated that besides trying to do something to increase the attendance of our livestock exhibitors, he would also like to encourage more involvement in the area of produce exhibitors, local garden growers and creating a greater awareness and participation in the area of Agriculture at the Fair.

Mr. Hertel commended the Department of Agriculture for how much support they have shown to the Fair and in their ability to bring MSU along to participate and do even more at the Fair this past season. Mr. Hertel stated that he hopes the seed that has been planted with MSU will continue to grow. Discussion was held regarding holding a special meeting of the Board to discuss how we can get more public involvement and various commodity groups to participate in the Agriculture Building.

Mr. Albright suggested that when we are attending other Fairs we might stop and ask the Fair personnel what it is that their Fair does to draw in their exhibitors. Mr. Albright added that we may even consider asking the exhibitors at that particular Fair why they do not come and display their goods at the Michigan State Fair. He added that this might prove to be a good way of getting true answers that people may not care to share or discuss in a formal meeting. Jeff Haarer stated that based on the negative comments and complaints made about the building and the attendance in the building, sometimes you may wonder if you can ever do enough. Mrs. Batchelor stated that we might want to consider including them in a special one-day event at the Fair, where the specific group of choice will be invited to attend the Fairgrounds during the off season of the Fair, thus allowing them an opportunity to see just how great this facility really is.

PUBLIC COMMENTS

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

NEXT MEETING DATE

The next meeting of the Michigan State Fair Authority was scheduled for Monday, October 24, 2005, beginning at 1:30 p.m., to be held at the Michigan State Fairgrounds, in Detroit.

ADJOURNMENT

ON MOTION BY Monique Pointer, supported by Karen Batchelor and carried, the meeting was adjourned at 4:20 p.m.