Chairman Gaffney greeted and welcomed everyone to the meeting and stated that although it was previously voted upon at the last meeting of the Board to give the Fair Manager the approval to change and set the 2006 Fair dates should legislation pass and the start date for schools be scheduled to begin after Labor Day, Chairman Gaffney stated that a motion could be made today adding the new 2006 State Fair dates to the official records of the Board. 

 

ON MOTION BY Mayor Porter, supported by Mrs. Driker, and carried, to accept the new State Fair Dates for 2006 and having the Fair open for 13 days, beginning August 23rd through Labor Day, September 4th.  Mr. Hertel stated this information has already been placed on our State Fair website and we are now making announcements to our sponsors and media relations.  Mr. Hertel added that ending the Fair on Labor Day has been an old time tradition of the Fair and already various county fairs and exhibitors have expressed how they are in favor of these new dates.

 

Chairman Gaffney then stated that he had prepared a list of nine questions and he asked that the Board would take a moment today to review and hopefully get answers to each of these questions.  Chairman Gaffney distributed a copy of the questions and then asked Fair Manager Hertel for his input concerning each of these items.

 

The questions and responses were as follows:

 

Question #1:            Have we received all records, etc. from the Department of Agriculture?  Is this routine?

 

Answer:              Mr. Hertel stated that four times in eleven years this has been done and yes, this year Monique Field Pointer (DMB) and Margaret Fletcher (MSF) have very carefully completed the full record change over.

 

Question #2:            When will we present an annual (financial?) report to the Governor and Legislature?

 

Answer:            Mr. Hertel stated that we are presently in  the process of finalizing the annual report and he added the year-end financial report is completed around this same time every year.

 

Question #3:            When/how shall we post an annual audit?

 

Answer:            Mr. Hertel reported that an annual audit does take place and is issued in the form of a report by the Auditor General’s office and the State Fair Auditors every year and a copy of the report will be distributed to each of the Board members.  Mr. Hertel stated that we received an almost excellent report last year and he added that we, unfortunately have to pay $32,000 for our own yearly audit and we also pay for the help and security services provided by the Michigan State Police each year.  Mr. Hertel stated that the Department of Management and Budget has been very helpful this year with all of our many changes and challenges.  He added that having Sue Horvath come down and join our Board meeting today is just another example of how very supportive and helpful the Department of Management and Budget has been to us.

 

Question #4:            When will we have a five year rolling operations plan?  Spring 2006?

 

Answer:            Mr. Hertel and Chairman Gaffney agreed to spend time discussing this item and item #5 and it was further decided that the five year rolling operations plan and the long range plan would be included and placed on the agenda at the meeting of the Authority Board in December.

 

Question #5:            We need a long range plan – Spring 2006?

 

Answer:            see answer to #4.

 

Question #6:            Appoint a local neighborhood advisory council and set aside a meeting to hear their input (subcommittee).

 

Answer:            Mr. Hertel stated that he would hope that an annual meeting would come from this, possibly each year in February and the neighborhood group/subcommittee would have an opportunity to offer various ideas and suggestions for the Fair.

 

            Discussion was held regarding the Board members who would be interested in sitting on the neighborhood subcommittee.  Elaine Driker, Karen Batchelor, and Edward Deeb volunteered to sit on this subcommittee.

 

Question #7:            Review the 2006 fair and fair budget.

 

Answer:            After Margaret Fletcher explained in detail how our actual spending verses our authorization and permission for spending works, it was further decided that the 2006 Fair Budget Report would be brought before the Board in February.

                       

                        Mr. Hertel stated that our various Fair exhibitors and contractors are really happy to be getting paid in a timely fashion this year.  He added that we are attempting to finalize our 2005 financial report by November and then we can really focus and concentrate on our 2006 Fair.  Mr. Hertel reported that in our 2006 Budget we have to replace the air-conditioning in both the Michigan Mart Building, as well as, in the Community Arts Auditorium. 

He stated that we would not be able to go another year without air-conditioning in the Michigan Mart Building as this may cause many exhibitors and potential indoor sponsors to not return.  Discussion was held regarding capital outlay monies that are not offered to the State Fair.   

 

Question #8:            Wade Shows licensing agreement – when to redo?

 

Answer:            Mr. Hertel stated that Wade Shows has a two-year contract with us and the Board has the authority to give them an extension on the contract if desired.  He added that, under the contract, the State Fair has the option of requesting Wade Shows to bring in certain rides and games to the annual Fair.   Mr. Hertel stated this is a pretty amazing contract, the first $500,000 brought in by Wade Shows goes to the Fair.  This special financial arrangement makes us the envy of a lot of Fairs.  Mr. Hertel stated Wade Shows is also extremely pleased with the contract.  

 

Question #9:            Newsletter to be published twice a year – January and July?

 

Answer:            Mr. Hertel stated that we have never done this before because we have never had the adequate staff or money to accomplish such.  But he welcomed all of the thoughts and ideas of the Board.   Discussion was held at length regarding when the newsletter could be prepared, who would be the producer and overseer of the letter and the possibility of mailing and sharing the newsletter with various communities throughout the metropolitan area.  Mr. Hertel suggested sending out the newsletter in January and June 2006 and he stated Rosemary Peralta, MSF Special Events & Program Coordinator, would be perfect for such a task.  He stated that Rosemary is “top-notch” when it comes to her writing abilities, as she was once an editor of a newspaper.  Monique Field suggested utilizing some of DMB’s marketing staff members, while Elaine Driker suggested appointing a subcommittee to look at some of these marketing promotional ideas.  The development of a Michigan State Fair Newsletter will be pursued.

 

Dr. Tom Coon, because he would soon have to depart from the meeting, asked if the next Board of Directors meeting date could be set at this time.  Discussion was held regarding setting future meeting dates of the Board in advance to assist everyone with scheduling. 

 

ON MOTION BY Dr. Coon, supported by Ken DeCock, and carried, to schedule all future meetings of the Michigan State Fair Authority Board of Directors for the second (2nd) Wednesday of ea ch month, unless otherwise noted.  The next meeting of the Board was scheduled for Wednesday, November 9, 2005, beginning at 1:30 p.m., @ the Michigan State Fairgrounds, in Detroit.  Motion passed unanimously.  

 

MANAGER’S REPORT

 

Mr. Hertel reported on the following:

 

Mr. Hertel distributed an article from the Detroit News highlighting the doubled attendance at the 2005 Detroit International Jazz Festival event held in downtown Detroit on Labor Day.  The article announced that the festival made money, about $150,000 after three years of loses totaling approximately $1 million dollars.  Mr. Hertel stated that this and other local summer events held over the Labor Day weekend are the only negative aspects we face when considering our new Fair dates.

 

Discussion was held regarding holding Jazz concerts at the State Fair.  Mr. Hertel reported that we once tried to hold Jazz concerts but unfortunately did not get an adequate turn out of participants.  Mr. Hertel reported that the Fair staff has already begun working on creating a seasonal Fair ticket where a person can purchase a ticket to attend multiple times during the run of the Fair.   

 

Discussion was held regarding the numerous other attractions that take place during the time of the annual summer Fair.  Mr. Hertel stated that “Arts, Beats and Eats”, another free entertainment venue, is also held over the Labor Day weekend in Pontiac.  Discussion was held regarding cross-promotional, joint-marketing strategies for the annual Fair.

 

Chairman Gaffney questioned whether or not there was a calendar of scheduled events for the year-round activities held at the Fairgrounds that could be sent out to the Board members announcing the featured events and activities.  Mr. Hertel stated that along with sharing the website address with the Board, he would also make a note to send them a copy of the monthly schedule of events. 

 

2005 STATE FAIR FINANCES – Mr. Hertel introduced and welcomed Margaret (Peggy) Fletcher, MSF Financial staff member into the meeting and he stated how very pleased he is  with the work that she does for the Fair. 

 

Peggy Fletcher distributed copies of the 2005 Michigan State Fair Financial Report to date.  She then offered a detailed overview and explanation for each of the line items.  Discussion was held at length regarding the financial report.  The report showed that the ride revenue was up, even though the overall attendance was down.  This was partially attributed to the additional monies made by Wade Shows as a result of selling ride wristbands on weekends.  The report also showed the Fair being down by $38,900 in sponsorship agreements compared to last year ’s Fair.   Mr. Hertel stated that it was by far the most difficult time for us in terms of raising sponsorship dollars but he was happy to report that our total loss for the 2005 Fair will be around $100,000.

 

Mr. Hertel shared with the Board how we were able to save monies this year by hiring a retired Detroit Mounted Police Inspector, who assisted us with our security needs.  He added that while we do receive the help and service of the Detroit Police Department, as a donation, we do have to pay for the Michigan State Police and because the Detroit Mounted Police Division, a 109 year old institution has finally gone out of business, we had to use the Wayne County Sheriffs Dept and volunteers to fulfill many of our security needs. 

Mr. Hertel added that he is presently speaking with Senator Hansen Clark about creating our own Michigan State Mounted Police.  Peggy Fletcher addressed all of the Board’s questions and then she concluded her report.

 

ON MOTION BY Mr. Deeb, supported by Mrs. Batchelor, and carried, to receive and accept the financial report distributed today.  The Board thanked Mrs. Fletcher and complimented her for her hard work and efforts in preparing such a detailed report.  The Motion passed unanimously. 

 

NON-FAIR EVENTS – Mr. Hertel was pleased to report that Wayne State University has agreed to having their hockey team come back and play at the State Fair Coliseum Ice Hockey arena for the next three years.   Mr. Hertel added that this would now allow us an opportunity to show the Fair off to many people who otherwise would never come to the Fairgrounds.  He added that teams as far as Alabama and Colorado are scheduled to come and play hockey at our State Fair.

 

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 next Friday, United Way would be holding a Job Fair at the Fair.  This special Work Force program has agreed to rent and hold their event in the Michigan Mart Building and is expected to have a huge turnout of participants.  Monique Field explained more of the details.

 

Mr. Hertel reported that the Parade Company is now discussing the possibility of expanding their one day Hob Nobble Gobble event into a festival of holiday events that would begin the day before Thanksgiving and run throughout the Christmas season.  Mr. Hertel stated this year the Parade Company has agreed for the second year in a row to hold their very exclusive Hob Nobble Gobble Holiday event in the Michigan Mart, West Mall and the Joe Dumars Buildings.  Mrs. Batchelor commented on how at one time this very special event was held at Cobo Hall in downtown Detroit.

 

GENERAL MANAGER’S SALARY – Mr. Hertel was excused.  The Salary Subcommittee, which previously had been selected at the September meeting of the State Fair Authority, presented their report.   Discussion was held regarding the distributed report.

 

ON MOTION WAS MADE BY Mr. Valliere, supported by Mr. Deeb, to accept the policy and recommendation presented by the Authority Board’s subcommittee to increase the Fair Manager’s salary to $101,000, retroactive from September 19, 2005.  The motion passed with a vote of 8 to 2.

 

ASH TREE REPORT: Mayor Porter stated that 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. 

He reported that David Roberts of MSU has donated all of the time and chemicals needed to protect and prolong the life of the Ash Trees in Ferndale.  Mayor Porter added that a 3-year treatment cycle is presently being applied to the trees along N. Woodward going from Eight Mile Road all the way to Pontiac.  He stated that an evaluation has been done on the trees at the State Fairgrounds and he would be able to present this report at the next meeting of the Board in November.  Mayor Porter stated how very critical it is for the appearance of the State Fairgrounds that the trees be preserved and protected.  Discussion was held regarding the number of trees that are located at the Fair site (approx. 35) and the conditions of the Fairgrounds when Mr. Hertel was appointed Fair Manager in 1993.  Mayor Porter and Jeff Haarer agreed to catalogue the trees at the State Fairgrounds.  The preservation of the Ash Trees on the State Fairgrounds will be pursued.

 

OLD BUSINESS

 

Tim Canty, President of Urban Sports and Resorts LLC, joined the meeting and told the Fair Board that he would come back in December with his financial package in order.

 

NEW BUSINESS

 

Mr. Hertel reported that Habitat for Humanity has contacted us and expressed their interest in building another house here at the Fairgrounds next year during our 2006 State Fair.  Mr. Hertel was happy to report that not only are they talking to us about having their sponsors help with building the house, but they are also talking with us about having their sponsors support the Fair.  Mr. Hertel reported that the home built by Habitat during our previous 2005 Fair will be moved and placed @ 5:00 this evening to its permanent location at 19517 Blake Street in Detroit.

 

Mr. Hertel reported that all of the preliminary meetings have been held with the Phoenix Theatres.  He stated the lease agreement is presently in the Attorney General’s office and the Phoenix Theatre group has expressed an eagerness to get the lease in the hands of their attorneys.  Mr. Hertel was happy to report that the plans and arrangements to build and operate a seven screen drive-in movie at the Fair are moving along well.

 

Mr. Albright reported that all of the exhibitors have been paid premiums and monies owed to them by the State Fair and they have expressed how much they appreciate the efforts made concerning having their payments mailed out so quickly this year.  Mr. Hertel reported that he would also like to discuss the possibility of creating a Milking Parlor at the Fair.  He stated that Tom Angott, President and CEO of C.F. Burger Creamery, has already put up $10,000 towards these efforts.   Mr. Hertel and Mr. Albright agreed that a small committee could be formed to look further into this and other possible developments.  Mr. Albright suggested having a few of the exhibitors sit on the committee.  The development of a Milking Parlor will be pursued.

 

It was suggested that the community participation sub-committee members, Elaine Driker, Mayor Porter, Karen Batchelor and Mark Gaffney, set a time first to speak with one another as a group possibly over the phone

 

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 Board of Directors was scheduled for Wednesday, November 9, 2005, beginning at 1:30 p.m., to be held at the Michigan State Fairgrounds, in Detroit.  

 

ADJOURNMENT

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