MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS

February 8, 2006 – Minutes

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 1:36 PM, in the Administration Building, Conference Room, at the State Fairgrounds, in Detroit. 

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

Pat G. Albright, Owner of Albright Farms Thomas L. Valliere, Manager, Midland County Fair  Kenneth J. DeCock, Partner of DeCock and Sons LLC/Boyka's Farm Market  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 and Budget)     

                        Mitch Irwin, Director of MDA (Michigan Dept. of Agriculture)

                         Edward Deeb, President & CEO of  MFBA

                        Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

Robert G. Porter, Mayor of the City of Ferndale Karen Batchelor, Eisenberg & Bogas, P.C.

Also Present:    Jeff Haarer, Representing MDA  Monique Field, Representing DMB

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 December 14, 2005 were reviewed.  ON MOTION BY Mr. Valliere, supported by Mr. DeCock, and carried, the minutes were approved as written.  The Motion was passed unanimously.

ACCEPTANCE OF AGENDA

ON MOTION BY Mr. Valliere, supported by Dr. Coon, and carried, to accept today’s meeting agenda.   The Motion passed unanimously.

CHAIRMAN’S COMMENTS

Chairman Gaffney stated that he and Jeff Haarer are moving forward with contacting the various commodity groups to set up meetings with them to discuss how we can better work together to produce a more successful State Fair.  Included in these meetings will be, Chairman Mark Gaffney, MDA Director Mitch Irwin and possibly the Director of DMB, Lisa Webb Sharpe.  It was decided that a letter of invitation would go out to the various commodity groups on State Fair letterhead and the members of the State Fair Authority were welcomed to participate in these upcoming meetings. 

Pat Albright stated that he would certainly be interested in attending the meetings of the commodity groups, as he represents Agriculture on the State Fair Authority Board.  Chairman Gaffney welcomed this invitation to have the Board of Directors join the upcoming discussions with the commodity groups.

Mr. Hertel stated that while he does not worry about how the weather will affect this year’s Fair, because we can’t do anything at all about the weather, he does feel some concern over this year’s sponsorship agreements because of the present economy.   He added that he is very concerned and worried about the lack of participation in the Agriculture Building.  Mr. Hertel stated that tremendous amount of efforts and steps have been taken since last Fall season to improve the livestock participation at the Fair and he has also made numerous attempts to encourage the involvement of the commodity groups in the Agriculture Building.  Mr. Hertel reported that over the last three years, he had met with the commodity groups at the Michigan Farm Bureau offices, the Constitution Hall, and at the Fairgrounds and he has tried over and over to encourage their participation.  He explained how he has pleaded with them and stressed the fact that while other fairs charge the various commodity groups’ a rental fee for their space at the Fair, we have offered them the Agriculture Building “free of charge.”   Mr. Hertel asked Dr. Coon if he would assist in arranging for a meeting with him, Chairman Gaffney, Director Irwin, and Director Webb Sharp with the new President of MSU.   Dr. Coon agreed to do whatever he could to make this happen.

Mr. Hertel reported that he is also concerned about the Agriculture Building because he just recently learned that the Office of the Racing Commission (ORC) has moved and will no longer have a display in the Ag Building and we are also loosing their financial support as well.  Mr. Hertel added that the ORC display took up at least 1/3 of the building and this wonderful display will be greatly missed.   Participation, involvement and support for the Agriculture Building will be pursued.

Mr. Hertel also welcomed the Board of Director’s to get involved with these discussions to take place with the commodity groups and he stated that just to fill up the empty space, we may have to eventually consider putting things in the Agriculture Building that are not related in any way to the agriculture industry.

Chairman Gaffney reported that he, Elaine Driker and Mayor Porter are presently working together to establish the Neighborhood Advisory Committee.  He added that they have attempted to identify at least 12 to 14 key people in the community, who could be invited to sit on this committee designed to offer suggestions and recommendations as it relates to the future development of the Fairgrounds. 

Chairman Gaffney offered brief details concerning the recent attempts made to contact community leaders.  He stated that some of the members contacted are no longer in the listed positions for various reasons including some who were fired or retired and the position is now vacant.  Mr. Gaffney added that he and the other sub-committee members would continue with in the efforts to establish a Neighborhood/Community Advisory Committee with members ranging from all four directional areas surrounding the Fairgrounds.   Mr. Gaffney stated that the sub-committee will prepare for the next regular meeting of the Board a recommendation for the initial public meeting to take place on a Saturday evening to hopefully allow for the most participation.

Chairman Gaffney reported that a special State Fair Retreat information meeting has been scheduled for Wednesday, March 8, 2006 in place of the regular meeting of the State Fair Authority Board.  This special meeting will be held from 12Noon to 5:00, beginning with lunch at Noon and followed by presentations offered by the State Fair Staff members.  The luncheon will take place in the Community Arts Auditorium and should last for approximately one hour.   Mr. Gaffney reported that the Retreat would be a wonderful opportunity for all of the Board members to gain an even greater understanding and insight on how the Fair is actually put together each year.  He added that along with full staff presentations, the Board will also be given a full tour of the Fairgrounds and buildings.

Monique Field reported that she had an opportunity to meet with the Berline Group regarding their advertising contract with the Fair and during their discussions she learned of some of the wonderful “pro-bono” promotions offered to the Fair by the Berline Group.   Ms. Field stated that it would be a great idea to have the Berline Group come in and make a presentation and discuss various marketing strategies with the Board during the State Fair Retreat.  The Board of Director’s all agreed that it was an appropriate plan to include the Berline Group in the State Fair Retreat on March 8, 2006.  The Berline Group will be contacted and invited to make a presentation to the Board.

Ms. Field introduced Mr. Edward Wood III to the Board members.  She stated that Mr. Wood is the new Communications Director for DMB and he also joined her in the meeting with the Berline Group and he also had a brief opportunity recently to meet with the Fair Manager.  Mr. Wood agreed to assist the Fair with any future marketing ideas and/or communication strategies.   Mr. Hertel stated that after meeting with Director Wood, he was not only impressed with his background with the fairs, but was even more impressed by Mr. Wood’s enthusiasm to jump right in and help.  Mr. Hertel and the Board members welcomed Director Wood and expre ssed their appreciation for his offer of services to the Board.

Chairman Gaffney stated that the upcoming Retreat would also include the “beginning” process of a one-year plan, an initial look at a five-year plan and a very general overview of the budget.  The Retreat will cover a vast area of information including how we book our bands and rides and what is involved in the bidding process and contracting for special services.  Chairman Gaffney asked if there were any additional questions or suggestions for the upcoming Retreat and he invited the Board members to contact Mr. Hertel over the next few weeks if they had any special information or item to be covered at the Retreat on March 8th.

Mr. Hertel gave a brief explanation and detail on how the five-year plan should be put together and who should be involved in this planning process.  He stated he did not feel that the five-year plan should be limited or narrow in any way and he welcomed the entire Board of Director’s to take part in the plans for the future of the State Fair.

Mr. Hertel asked Jeff Haarer if he could be of any assistance in helping us to obtain a special study that was done on the needed improvements to the Fairgrounds dating somewhere between 1976-78.  He stated that he has in his possession a copy of the studies that were created by Governor Blanchard in the 1980’s and he also has a report that was done in 1953 but he has not been able to locate the Milliken Report.  Mr. Haarer expressed his willingness to assist in this area.     

MANAGER’S REPORT

Mr. Hertel reported that while the Fair has been moved to five different State departments over the last twelve years, and he could certainly give a full list of disappointments that were often given to the Fair, he was very happy to report today that the Department of Management and Budget has not disappointed us once.  He added that it is very refreshing, as to how we have been treated by DMB since moving into the department.  Mr. Hertel highly complimented DMB and stated that the entire department has clearly shown us their commitment and desire to help us.   Mr. Hertel highlighted how Director Wood has already met with the Berline Group and DMB’s financial people met early on with our budget staff and they have showed a tremendous effort in helping us to avoid the supplemental problems again. 

Mr. Hertel was happy to report that Monique Field came in on this past Monday, along with other staff members, and announced that the air-conditioning problems that we suffered during last year’s State Fair have been resolved.  There will be air-conditioning for both of the buildings in time for the 2006 State Fair.  Mr. Hertel reported that great progress was also made in terms of future planning for the Fair’s budget at the meeting this week with Ms. Field and DMB staff members.

Mr. Hertel reported that we are very close to our spending target for this year’s Fair.  He added that our revenue is up in terms of our income and it is down in terms of our spending.   He stated that we are parking more Chrysler vehicles at the Fairgrounds throughout the year and although it is often really inconvenient to move things around when we have other non-Fair events taking place, he stated that it is certainly worth all of the trouble. He added that there are no vehicles parked in the Woodward parking lot today because we were able to take advantage of three NFL Super Bowl events last week.  Mr. Hertel stated that as we continue to accommodate Vascor, they are encouraged to store even more vehicles here.   Mr. Hertel stated this extra revenue is a tremendous help to the Fair.

Mr. Hertel reported that the Fairgrounds held the NFL Convey of Hope.   This was an event put on by a group based out of Missouri and they literally gave away a variety of items to the less fortunate people in the community.   The Fair also held a Cadillac Celebrity Go-Cart event in the Coliseum.  This event included photo opportunities, autographs with celebrities and go-cart races.   The NFL half-time volunteers also used our facility as the location where they would be shuttled to and from downtown Detroit.  The volunteers used our facility also a place to change into their costumes and have a catered meal on Super Bowl Sunday. 

Mr. Hertel stated that we rented the various areas of Fairgrounds at regular price for all three of these NFL events.   He then explained how, when requests are made, we do also support non-profit groups by donating State Fair “Family Four Packs” to be auctioned at their fund-raising events.  He added that we also give some things away to the Detroit Public Schools and in exchange for many of these contributions we receive exposure to the public.  Mr. Hertel stated that we do not allow any charity to come in and receive free space because if we were to do this for one group, we would have to do it for all others and this would never end.

Mr. Hertel distributed a draft of the State Fair Newsletter produced by Rosemary Peralta.  The newsletter was, required under the Law, to be provided twice a year and put on line for the public.  Mr. Hertel asked the Board members to carefully review the State Fair Newsletter and make any necessary corrections or revisions at this time, as the newsletter would be going on line soon.  The following corrections were noted:  Mr. Albright stated that he should be listed as a resident of “Coldwater” not Detroit.  Also he questioned whether or not, he should be listed as an “Agriculture” Representative instead of “General Public”.  Mr. Hertel stated that we would look into this matter and make the necessary corrections.  Mr. Valliere stated that he should be listed in “Midland” and not in Holt, and he asked that there be an “e” added at the end of his name.   These corrections/revisions were noted as mentioned.

  Mr. Albright complimented the State Fair Newsletter and added that it will serve as a great communications tool.   He questioned whether or not the newsletter could be mailed out to various exhibitors so that they would know what’s going on at the Michigan State Fair.    Discussion was held at length regarding how the newsletter could be circulated throughout the metropolitan area.   Jeff Haarer questioned whether the 2006 State Fair Premium/Entry Books would be mailed out soon.   Discussion was held at length regarding the possibly of having the Entry Books placed on line for the 2006 Fair.   Mr. Hertel stated that going on line with the Fair Premium Books would be a huge cost-saver for the Fair and he recommended to the Board that a motion be made today allowing the Fair to move ahead with putting the Books on line.

ON MOTION BY Dr. Coon, supported by Mr. Albright, and carried to send out a notification to previous Fair exhibitors stating that we are putting our State Fair Premium/Entry Books on line this year and we will also include a copy of the State Fair Newsletter.   As part of this motion, it is therefore, decided that the Premium Book would be placed on line for the upcoming 2006 Michigan State Fair.  It was further decided that a special disclaimer notification will be included stating that, “The Rules are The Rules” and that there will be no exceptions made to the listed rules in each of the State Fair Premium/Entry Books.  It was further decided that a “physical” Premium Book would be made available for mailing to anyone who calls and makes a request. The MOTION PASSED unanimously.

Mr. Hertel reported that the new Conference Room chairs and much more office furniture also was donated to the State Fair by the Racing Commission, in exchange for housing their computer technician, who once worked for the State Fair, in our offices over this upcoming year.

NEW LAYOUT – Mr. Hertel showed the Board members a conceptual plan and diagram of the proposed new developments for the Fairgrounds and he stated although this information was shared with the Board at the December meeting and the plan was voted on, he would like to highlight the details of the plan again today for those members who were not present for the December meeting of the Board.

Mr. Hertel highlighted the various changes to be made to the layout of the 2006 State Fair. These changes included but were not limited to:  The Miracle of Life Birthing Exhibit, Wade Shows Kiddie-land Carnival Rides, the Farmer Jacks display, the Racing Pigs, the Petting Zoo and the Pony Rides.  He again reported that the main midway rides and carnival would remain at its present location.

Mr. Hertel reported that the Habitat for Humanity group has agreed to come back and build another Habitat Home during the 2006 State Fair and they have also agreed to increase their sponsorship agreement from $5,000 to $30,000.   Mr. Hertel highlighted on the map the area where the Habitat Home would be built as well as all of the various other changes.

Mr. Hertel reported that the bids are now out for the construction of a new Bus Terminal that would extend onto the Fairgrounds as a result of the Detroit Department of Transportation (DDOT) using a federal grant issued to them four years ago.  He added that DDOT has agreed to create and develop a new pedestrian walkway entrance from Woodward Avenue.  He highlighted on the map the new proposed Bus Terminal, pedestrian walk-thru and State Fair ticketing entrance.   Mr. Hertel stated that the new pedestrian walk-thru would allow our Fair customers a much safer entrance onto the Fairgrounds, especially the people who would normally have to walk through the Woodward Avenue Parking lot and those who come in from parking their cars on Woodward Avenue.   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. 

NEW ADVERTISING - Mr. Hertel reported that we have a new program for signage at the Fair.  He stated the InFAIRmation booths and the various street signs located on the Fairgrounds would have a new look for the 2006 Fair.  The new signage will include questions, pictures and arrows pointing to the specific area of interest.  Example:  “How would you like to catch a FISH (include a picture of a fish)?”  Mr. Hertel stated that this is one very simple way of possibly drawing more Fairgoers to the area near the Community Arts Auditorium.

OLD BUSINESS

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 the details are coming together in good faith.

NEW BUSINESS

Mr. Hertel reported that he attended a horse sale yesterday and some people came up to him and asked if there was going to be a State Fair this year.  Mr. Hertel stated that he only brought this up today because he wanted to give the Board members an idea of how silly the rumors are about the Fair.  He stated that he has never worked at a place with more rumors than the Fair.

Mr. Hertel reported that a special “Dairy Meeting” would take place tomorrow regarding the development of a Milking Parlor at the Fair.  He stated that Rod Jordan, State Fair Livestock Coordinator, has selected a couple of people from the dairy industry to attend the meeting, along with Mr. Elwood Kirkpatrick, President of Michigan Milk Producers Assoc., Mr. Thomas Angott, President of C.F. Burger Creamery, and Mr. Wayne Wood, President of Michigan Farm Bureau.  Mr. Hertel stated that he would keep the Board members posted on the progress of this new endeavor.

PUBLIC COMMENT

Byna Camden suggested having the State Fair Newsletters available for people wishing to stop by the Fair offices and pick up.  She stated that maybe some of the newsletters could be distributed to the various surrounding neighborhood groups. Ms. Camden expressed her concerns with getting the newsletter out to people who do not have access to a computer.  Dr. Coon expressed his appreciation for the quality of the           State Fair Newsletter and stated that he would be making copies and passing them out in various places as he travels about.

DATE FOR NEXT MEETING

A special  “Michigan State Fair Retreat” has been scheduled for Wednesday, March 8, 2006, beginning with a catered luncheon for the Authority Board members served at 12:00 Noon in the Community Arts Auditorium.  A presentation offered by the Berline Advertising Group, State Fair staff presentations, a presentation made by Brad Coombs of Meridian Entertainment, and a full tour of the grounds will all follow luncheon.  The State Fair Retreat is scheduled to last from 12:00 Noon to 5:00p.m.  All members are urged to attend this very informative meeting of the State Fair Board and staff.   

Please note:  The next regular meeting of the MI State Fair Authority Board of Director’s will be held on Wednesday, April 12, 2006, beginning at 1:30 in the Conference Room of the State Fair Administration Building, in Detroit.   

All future meetings of the Board will be held on the second Wednesday of each month, unless otherwise noted.

ADJOURNMENT

ON MOTION BY Dr. Coon, supported by Mr. Valliere, and carried, the meeting was adjourned at 3:19p.m.