MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

December 14, 2005

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 1:50 PM, in the Community Arts Building, Auditorium, in Detroit. 

PRESENT:  Mark T. Gaffney, Chairman of Board and President of MI AFL-CIO

                    Edward Deeb,  President & CEO of MI Food & Beverage Assoc.

                    Robert G. Porter, Mayor of the City of Ferndale

                    Thomas L. Valliere, Manager, Midland County Fair

                    Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

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

                    John C. Hertel, General Manager, Michigan State Fair

ABSENT:   Lisa Webb Sharpe, Director of DMB (Dept.of Management & Budget         

                         Mitch Irwin, Director of MDA (MI Department of Agriculture)

                    Pat G. Albright, Owner of Albright Farms

                    Karen Batchelor,

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

Also Present:Jeff Haarer, Representing MDA

                    Tim Jenkins, MSF Assistant General Manager

                    Matthew Keck, State of Michigan, Attorney General’s Office

APPROVAL OF MINUTES

The minutes of the meeting held on October 24, 2005 were reviewed.  ON MOTION BY Mayor Porter, supported by Mr. Deeb, and carried, the minutes were approved and passed unanimously with the following correction being made:

On page 3, under question #6, Mrs. Driker noted that Mr. Deeb did not volunteer to sit on the neighborhood subcommittee.  This correction was made and it was noting that Chairman Mark Gaffney, Mayor Bob Porter and Elaine Driker were the Board members who volunteered to sit on the subcommittee.

ACCEPTANCE OF AGENDA

ON MOTION BY Mayor Porter, supported by Mrs. Driker, and carried, to accept today’s meeting agenda.   The Motion passed unanimously.

MANAGER’S REPORT

Mr. Hertel distributed a newspaper article highlighting DaimlerChrysler.  He reported that since our fiscal year, October 1, 2005, we have made $394,000 from our arrangement with parking DaimlerChrysler vehicles at the Fairgrounds.  He added that as of yesterday, we are now $84.00 ahead of last year’s revenue that was brought in from parking Chrysler vehicles.  This arrangement has proven to be very beneficial to both the Fair, in terms of increased year-round revenue, and it benefits DaimlerChrysler, in terms of having a central, convenience location to store their vehicles.

NEW ENTERTAINMENT – Mr. Hertel reported that we are moving in a new direction with 2006 State Fair entertainment and he stated that if the Board members were in agreement and had no objections, he would like to move ahead with this new direction.  Mr. Hertel stated that we have decided that this year we will not hire any Rap artists to perform at the Fair and secondly, we would like to reduce the number of musical shows held at the Fair.  Mr. Hertel reported that when he attended this year’s Fair Convention in Las Vegas, he found that due to the vast number of competitors out there, the prices to book musical entertainment had exceeded that of previous years, especially in the Detroit area.  Mr. Hertel stated that by the end of the summer, as we approach the final two weeks just before Labor Day, with eight other venues around Detroit promoting musical concerts, it is strongly believed that people are less likely to be really interested or excited about attending another concert.

Mr. Hertel reported that we are presently engaged in a review of various family-oriented shows and activities that could be held at this year’s State Fair.  He added that we are reviewing shows both in terms of pricing and in terms of routing and availability.   He stated that this year we would like to spend more of our entertainment monies on grounds entertainment and family type events and less money on musical acts and concerts.   Mr. Hertel stated that we have already hired a new family circus, which will include elephants.  He added that elephant rides will be available during non-performance times and we will also receive a percentage of the revenue from this added attraction.

Mayor Porter stated that we must be especially sensitive to the many concerns regarding the treatment of elephants and caged animals and the possibility of boycotts that could arise as a result of displaying caged animals at our venue.   Mr. Hertel reported that although the display was very safe and humane, we dropped the caged animal exhibit from last year’s circus attraction as we felt that it did not give a very good appearance.  Mr. Hertel stated that we are always particularly careful and sensitive to these concerns as it relates to the Miracle of Life Birthing Exhibit, the Racing Pigs, The Petting Zoo, as well as all of the livestock exhibited at the Fair.   Mr. Valliere, Manager of the Midland Fair, commented on how their Fair featured a family circus with elephants and it was one of the most well received attractions at their Fair. 

Mr. Hertel reported that he met with the head of the family circus and he has expressed to them the importance of not only presenting quality shows, but also he stressed the importance of appropriate treatment in all that they do while performing at our Fair.  Mr. Hertel stated that the 2006 family circus has been thoroughly investigated and they were found to have an excellent track record. 

Mr. Hertel reported that we have hired a show called “Dragons and Princess” to perform in the Community Arts Building and when they are not performing inside, they will also do some walk-around, spontaneous, interactive type of entertainment throughout the Fairgrounds.  The costumes for this show are fabulous and extremely imaginative.  Mr. Hertel reported that we have also hired someone who will dress up as a small hot rod car named “Rodney-the-Rooster” and another person on stilts will be dressed up as a live walking, talking tree.  He added that these attractions would be great additions to our strolling grounds entertainment.  Mr. Hertel stated that this new direction for entertainment would allow us to get more away from the high priced musical acts and as a result it will provide more face-to-face, spontaneous, fun family-oriented events.

Mr. Hertel reported that we are talking with a group regarding having a sand sculpturing exhibit at the Fair.  He added that the public is very fascinated with sand sculptures and if this could be done indoors, we would possibly be able to retain the display for future years. 

Mr. Hertel stated that we would like to take the monies that are being saved on musical entertainment and use it for additional Fair advertisements.  He stated that we would seek the assistance of Berline to target specific audiences with radio and cable television advertisements.   Mr. Hertel stated that we would like these special Fair announcements to reach the parents with younger children and the grandparents who would bring their young grandchildren to the Fair.  He added that due to the change with our State Fair start & end dates, it is very important that we get as much advertisement as possible and try to reach a targeted group as it relates to our host of new family oriented activities this year.

NEW LAYOUT – Mr. Hertel distributed to the Board members a conceptual plan and diagram of the proposed new developments for the Fairgrounds and he stated that unless the Board members disagree with this new layout, he would like to pursue the highlighted changes and move ahead with the new concept.  Mr. Hertel reported that the 2006 circus would once again be located in the lot behind the Community Arts Auditorium.  He also highlighted on a larger map, the location where the Dragons and Princess attractions would be held.  Mr. Hertel then stated that it is our plan to move the Miracle of Life Birthing Exhibit to a new location, creating an expanded area for the Family Picnic Grove. 

Mr. Hertel showed the Board members the new area being considered for the Miracle of Life Birthing Exhibit.  He stated that the kiddie-land carnival and rides will be moved to the Farmer Jacks display area, just west of the main midway.  The Farmer Jacks display will then move to an area located north of the Community Arts Auditorium, east of the circus.  He further explained how the Miracle of Life Birthing Exhibit would be located close to the area where the kiddie-land activities were previously positioned.  Mr. Hertel also highlighted the changes to be made in the location of the Racing Pigs, the Petting Zoo and the Pony Rides, should the Board members have no objections.  He added that the main midway rides and carnival would remain at its present location.

Mr. Hertel reported that he just received a call on yesterday that the Habitat for Humanity group has agreed to come back and build another Habitat Home at the Fairgrounds and this year they have agreed to come back with an increased sponsorship agreement from $5,000 to $30,000.   Mr. Hertel highlighted on the map the area where the Habitat Home would be built during the 2006 State Fair.

Mr. Hertel reported that a new Bus Terminal has been proposed that would extend onto the Fairgrounds and will also include a new pedestrian walkway entrance from Woodward Avenue.  He then distributed copies of a conceptual plan that highlighted the new proposed Bus Terminal, pedestrian walk-thru and State Fair ticketing entrance. 

Mr. Hertel stated this new enhancement and expansion of the Bus Terminal at the State Fairgrounds would be made possible as a result the Detroit Department of Transportation (DDOT) using a federal grant issued to them four years ago.  Mr. Hertel reported that a lease arrangement was once in place between the Michigan State Fair and DDOT, but because payments were not made on the lease for many decades, the lease has no effect.  Mr. Hertel reported that moving the Miracle of Life Birthing Exhibit to a location near the new pedestrian walk-thru entrance would prove to be very wonderful for our Fair patrons, as they will have the opportunity to stop by and visit the birthing exhibit immediately upon entering the grounds.  The Miracle of Life Birthing Exhibit is a major highlight for the Fair.  Discussion was held regarding the various changes to be made to the layout of the Fairgrounds and various exhibits.   Mr. Hertel stated that DDOT has agreed to pay for all of the materials and labor for this project and this project will also include a new flag on Woodward Avenue and all of the electrical work will be done at their expense.  Mrs. Driker stated she hopes there would be high media coverage for the new DDOT project and for the Fair.   Mr. Hertel emphasized that he would certainly push to have the new pedestrian walk-thru entrance highlighted among all of the media networks.

ON MOTION BY Mr. Deeb, supported by Mr. Valliere, and carried, to approve the Detroit Department of Transportation (DDOT) proposal, to create a new extended Bus Terminal and State Fair pedestrian walk-thru, ticketing entrance between the Outdoor Zone and the Woodward Avenue Parking Lot, just east of Woodward and stretching east to Spartan Street. 

The Motion passed unanimously with the following two items noted: 1.) At a request made by Mayor Porter, Mr. Hertel will raise the question to DDOT concerning specifically what type of material will be used for the fencing. Mr. Hertel will also strongly recommend and suggest that a black-coated fencing be used for the project.  2.) Mrs. Driker requested that Mr. Hertel would express to DDOT our wishes of having them clean up the area surrounding the Bus Terminal on Woodward Avenue near the State Fairgrounds.  

Discussion was held at length regarding conducting demographics and marketing strategies for the Fair.  Mayor Porter stated that he would be willing to bring in some volunteers to possibly do a zip code type of survey during the Fair.  President Gaffney questioned whether or not we have any idea of what counties and communities our daily Fairgoers come from and whether or not they come by bus system or other means of transportation.   He stated that it would be a real benefit if we could do a marketing, demographic study on the Fair and learn where our many Fairgoers come from.  It was decided that demographics and marketing for the Fair will be pursued.

NEW TICKETING – Mr. Hertel reported that we are presently working on creating a seasonal type of gate admission ticket for the Fairgoer who may be interested in visiting the Fair multiple days during the season.  He reported that we are also looking into having special days that would allow certain communities/towns/districts to attend the Fair at a special discounted price, i.e. Downriver Community, Residents of Ferndale, Counties, Detroit Day, etc.  He stated that this could possibly be done in a way where the one person shows identification and everyone with that person receives a $2.00 discount. Mr. Hertel reported that discussions are also underway regarding ride wristband options.   Mr. Hertel stated that he has been in touch with Frank Zaitshik of Wade Shows and they are putting together an arrangement that would allow ride wristbands to be sold seven days a week at the same price every day.  Mr. Hertel explained the previous situation with purchasing one wristband for the daytime, and another wristband was needed for the evening hours.  He stated the details of the ride wristband would be further discussed with Mr. Zaitshik.  He stated that we would like to obtain sponsorship dollars to help offset the cost of these special discounted tickets.    He added that the major thought is about presenting bargains and special savings for families to come to an inexpensive place for great fun and entertainment.  Discussion was held regarding various prices that could be offered for seasonal adult/child admission into the Fair and the price for an all day, every day ride wristband.  Mr. Hertel stated that a more detailed schedule of this plan will be created and the Board members will have an opportunity to review this information.

NEW SPONSOR MONEY – Mr. Hertel reported that Farmer Jacks has informed us that they cannot give us an answer at this time regarding whether or not they will come back and sponsor the Fair this year.  Mr. Hertel stated that we presently only have about 65% of the sponsors from last year who have agreed to return and sponsor the Fair this year.  He added that it is becoming very obvious to him that we are beginning to run out of places to go for support.  Mr. Hertel asked the Board members and encouraged each of them to come to him after the holidays and share with him any names and phone numbers of corporations that he could possibly approach for sponsorship monies.  Mr. Hertel stated that if the Board members could offer him the names and numbers of heads of corporations and top people, they would not have to worry about him being persistent.   Mr. Hertel stated that he is very comfortable when it comes to approaching potential sponsors and pleading our case for Fair support. 

Mr. Hertel again expressed how disappointed he was that MSU did not come through for us during last year’s annual State Fair.  He added that he was even more disappointed when they did not come through for us during the 150th Celebration of the Michigan State Fair.  Mr. Hertel asked Dr. Coon if he could somehow get him into the door to at least, schedule a meeting with MSU regarding our 2006 Fair.   Mr. Hertel stated that he also would like to have the Chairman of the Board and the Director of MDA write a joint letter to the commodity groups requesting that they become more supportive of the Fair and have a greater involvement in the Agriculture Building this year.  Mr. Hertel stated that the two things that he is most concerned about regarding this year’s State Fair are Sponsors and the Agriculture Building. He added that it would be really nice to have more support with the Ag. Building this year.  Mr. Hertel reported the commodity groups did not fund the Governor’s Luncheon last year and that, as a whole, they did not have much participation in the Fair.  Mr. Hertel stated that if the commodity groups were to receive a joint letter from the Chairman and the Director, he believes this may make a strong impression on them.  Dr. Coon suggested Mr. Hertel give him an opportunity to make contact with the various commodity groups before this letter is written.  Dr. Coon suggested sending a letter of invitation to the commodity groups inviting them to meet with the State Fair Authority Board and the Fair Manager at a select location in Lansing.  Mr. Hertel stated that he would strongly support this and would look forward to such a meeting.  Jeff Haarer offered to help with contacting each of the commodity groups.

Mrs. Driker suggested the possibility of approaching the various sport teams.  He added that Tom Wilson of the Auburn Hills Palace (Home of the Detroit Pistons) rented a small space from us and has also contributed a small sponsorship before.  Mr. Hertel reported that we also had a joint ticket discount day promotion with the Detroit Tigers last year and it worked out very well.  Mr. Hertel expressed how difficult it is getting the four sport groups to support the Fair.  

Mr. Hertel explained in brief how we put together various sponsorship packages and how we make exchanges and give back to our sponsors for their contributions.  He stated that often times the Fair will give State Fair gate admission passes, parking passes and concert tickets to the various sponsors in exchange for their contribution to the Fair.  Along with tickets, the State Fair sponsors also receive exposure for their company, i.e. advertisements in our Souvenir Program Book, and company banners displayed throughout the Fairgrounds.  Mr. Hertel added that sometimes we will create a venue for the sponsor or at other times, we will offer them one of the several already established venues such as the Children’s Theatre, the AAA Contest Corner, the  Miracle of Life Birthing Exhibit, Community Art contest and exhibits, concerts and many other established venues.  Mr. Hertel stated that in order for us to have the sand-sculpturing exhibit at the Fair we are going to have to obtain a sponsorship for it.  He stated that we must get some new sponsorship dollars and support for the Fair and he hopes to hear more from the Board members soon regarding various contacts.  Mrs. Driker asked if Mr. Hertel would provide the Board members with a list of the present sponsors and what their contributions are, as well as, what we offer each of them in exchange.  Mr. Hertel agreed to provide this information at the next meeting of the Board.   New sponsorship agreements will be pursued.

Mrs. Driker offered Mr. Hertel the name of Margaret Casey of Beaumont Hospital and Mr. Deeb offered another name for a lead at Beaumont Hospital, Michael Killiam.  New Sponsorship agreements will be pursued and Mr. Hertel stated that he would look forward to receiving more names and phone numbers of potential sponsors from the Board members after the holidays.

CHAIRMAN’S COMMENTS

Chairman Gaffney reported on the subcommittee regarding the neighborhood advisory group.

Mr. Hertel thanked the subcommittee for their hard work and efforts in putting together such a vast list of groups to contact regarding forming a neighborhood subcommittee to share in the discussions and offer ideas for the future of the State Fairgrounds.  Mr. Hertel highly complimented Elaine Driker for her community involvement and he stated that if there were just a hand full of people like Mrs. Driker, how much more could be accomplished.  He added that Mrs. Driker has a very sincere love and interest in the State Fairgrounds.  Mr. Hertel stated that it should be stressed that the neighborhood subcommittee would not be directly involved in the decision making process but that they would be welcomed and certainly invited to share their thoughts, ideas and suggestions for the future direction and plans of the Michigan State Fairgrounds.  

It was decided that a sample letter of invitation would be brought to the next meeting of the State Fair Authority Board for review.

OLD BUSINESS

Mr. Hertel reported that he is currently talking to a jazz radio station about promoting jazz music at the Fairgrounds over the Labor Day weekend, which also happens to be the weekend of the free “Arts, Beats, and Eats” activities in Pontiac, Michigan.

Mr. Hertel reported that he met with the Golf Dome people on yesterday and they provided him with only one letter from an attorney stating that he had been in touch with a group who was strongly “considering” investing in the project.   Mr. Hertel stated that the Golf Dome people had previously promised to bring us two or three letters and they also promised that they would present at today’s meeting of the Board.   Mr. Hertel stated that he firmly believes that at this point we should consider the Golf Dome project over and done with.   Discussion was held regarding whether or not a formal motion should be made at the meeting today stating The Board’s desire to cease moving forward with the current negotiations and proposal made by the Golf Dome group.  It was stated that based on the discussions and decisions that had previously taken place at the last meeting of the Board, there was no real need for additional motion to be made.  It was noted for the record, that based on the Board’s last resolution made concerning the Golf Dome group, at this point, all negotiations and discussions will cease moving forward and the project is now considered done and over.

Mr. Hertel reported that the Phoenix Theatre group has expressed to him a few changes that they would like to have made in the lease agreement.  He added that the Theatre project is moving along well and all of the details are coming together in good faith.

NEW BUSINESS

Mrs. Driker reported that twenty trees were planted on Woodward Avenue, south of Eight Mile Road and she stated that this marvelous project was accomplished by the Michigan Department of Transportation (MDOT).  Mrs. Driker encouraged everyone to take notice of the enhanced appearance of Woodward Avenue as they left the Fairgrounds today.  On another note, Mrs. Driker shared a letter with the Board, which she had received from a fairgoer, Peggy Vogt, who wrote to tell of her experience at the State Fair over the summer.  Ms. Vogt has requested that renovations and improvements be made to the women’s restrooms located in the area of the Beef and Dairy Barns.  Along with her letter of request, Ms. Vogt included a couple of photos of the restrooms and the specific areas in need of improvement and/or replacement.  Mrs. Driker gave the letter and photos to the Chairman of the Board and the Fair Manager.

Mr. Matthew Keck of the Attorney General’s office introduced himself to the Board and invited the members to contact him should they have any legal questions or concerns that he may assist them with as it relates to the Michigan State Fairgrounds.  President Gaffney welcomed Mr. Keck and wished all a safe and happy holiday season.

PUBLIC COMMENT

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

DATE FOR NEXT MEETING

The next meeting of the Michigan State Fair Authority Board is scheduled for Wednesday, January 8, 2006, beginning at 1:30 p.m., to be held on the 2nd Floor, Conference Room of the Administration Building, at the State Fairgrounds, in Detroit.

ADJOURNMENT

The meeting was adjourned at 4:05 p.m.