MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS

April 12, 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 1:43 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

                     Thomas L. Valliere, Manager, Midland County Fair

                    Edward Deeb, President & CEO of MFBA                                                                       

                    Robert G. Porter, Mayor of the City of Ferndale

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

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

                     John C. Hertel, General Manager, Michigan State Fair

ABSENT:  Pat G. Albright, Owner of Albright Farms

                   Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

                   Karen Batchelor, Eisenberg & Bogas, P.C.

                   Lisa Webb Sharpe, Director of DMB (Dept. of Management and Budget)           

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

Also Present:  Jeff Haarer, Representing MDA

                       Monique Field, Representing DMB

                      Tim Jenkins, MSF Assistant General Manager

                       Iris Lopez, State of Michigan, Attorney General’s Office

                      Surrounding neighborhood residents

ACCEPTANCE OF AGENDA

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

APPROVAL OF MINUTES

The minutes of the meeting held on February 8, 2006 were reviewed.  ON MOTION BY Mr. Deeb, supported by Mr. Valliere, and carried, the minutes were approved as written.  The Motion was passed unanimously with the following clarification being offered.

Mr. DeCock asked for clarification on page 5, under “New Layout” regarding a vote that was taken at the December Board meeting concerning the new layout for the 2006 State Fair.  It was further explained that at the December meeting, Mr. Hertel was given approval and authorization to move ahead with the details for creating the new bus terminal and new walk-thru entrance, which would also allow for additional changes and improvements to be made to the layout of the 2006 State Fair.  Mr. Hertel was given approval to move ahead in meeting with the various sponsors for the major exhibits to discuss the possibility of relocating their exhibit.  Mr. Hertel stated that if for any reason, the new layout plans do not work for this year there would still be enough time to place the various exhibits and venues back in the same locations as they were in the past.   

CHAIRMAN’S COMMENTS

Chairman Gaffney stated that now that the letters have gone out to the various Commodity groups, he and MDA Director Mitch Irwin would soon begin the process of scheduling various meetings with the groups.  Jeff Haarer agreed that he would begin contacting the Commodity groups after the Easter holiday to first confirm receipt of the letter and then to offer various meeting dates & times.  Chairman Gaffney stated that he will share with the Board members the dates of the meetings so that they would be aware of the progress being made.  Mr. Hertel stated that he felt the initial meetings with the various Commodity groups should only include Director Irwin, Chairman Gaffney and the Commodity representatives.  He added that a meeting with the rest of the State Fair Authority Board of Directors could take place at a later time.   Dr. Coon stated that this would be a great opportunity for us to listen and gain an understanding of what needs to happen in order to encourage more support and greater participation from the various Commodity groups.

Mr. Deeb shared with the Board members information regarding merchants of the Detroit Eastern Market and the possibility of them coming in and partnering with the State Fair to create a Farmers Produce Market Display in the Agriculture Building.  Mr. Deeb stated that he informed the Eastern Market that we would only consider allowing them to come in and display & sell their produce at the Fair, if they were able to give assurance that the commodity groups would also come back and help to produce a more successful State Fair.  Discussion was held regarding various activities and special produce, health, commodity events that could be added to the Ag. Building if the discussions with Eastern Market go well.  Mr. Hertel stated that he became real excited when he received the call from Mr. Deeb regarding the possibility of having the Eastern Market merchants come in and help us fill the Ag. Building. Mr. Hertel further explained that the commodity people who Mr. Deeb was referring to, was not the same Commodity organizations that we recently sent the letters to and are hoping to bring back to the Fair.  He added that he thinks it’s a great idea to have the Detroit Eastern Market come in and set up displays in the Ag Building and also sell their produce on site.  It was stated that the Fair could also help promote the Eastern Market by advertising when the Fair is over don’t forget to visit the Detroit Eastern Market near downtown Detroit.  Mr. Hertel stated he would contact the four major health systems and discuss the possibility of having them come in and create health awareness programs/demonstrations in our Ag Bldg and if possible he would like to include Dr. Coon and Mr. Deeb in these meetings.  Both agreed to participate in the meetings once scheduled.  Special partnership arrangements with the Detroit Eastern Market will be pursued.   

ON MOTION BY Ed Deeb, supported by Mayor Porter, and carried, for approval today to permit the Eastern Market people to come in and display and sell their fresh produce at no cost for space in our Agriculture Building.   The Eastern Market would be under the same rules and regulations as all other exhibitors.  The MOTION PASSED unanimously. 

Chairman Gaffney thanked Mayor Porter and Elaine Driker for all of the hard work they put in to draw up the Local Neighborhood Advisory Council list.  Chairman Gaffney stated that there will be two groups and the first group is made up of local neighborhood groups and organizations.  The second group will include representatives from political bodies.   Chairman Gaffney gave a report on the various members who would be invited to attend the upcoming meeting of the Local Neighborhood Advisory Council.  It was further decided that the next State Fair Authority Board meeting would be scheduled for the regular second Wednesday of the month, May 10, 2006, but the meeting start time would be adjusted to allow a time to meet with the neighborhood group.  The Board members all agreed that the regular meeting of the Authority could begin at 2:30 on May 10th, and the Local Neighborhood Advisory meeting could be held immediately afterwards from 5:00 pm to 6:30 pm.  Mr. Hertel stated that the meeting notices to the neighborhood groups would be sent out from the Fair offices on State Fair letterhead.   Mr. Hertel also thanked and complimented Chairman Gaffney, Mayor Porter and Elaine Driker for their great efforts in putting this list together.  

Mr. Hertel stated that one of the things that he would also like to discuss with the Commodity groups is the possibility of them once again fully sponsor the Governor’s Day Luncheon.  Mr. Hertel reported that last year was the first year that the Commodity groups did not cover the expenses of the Governor’s Luncheon.   

MANAGER’S REPORT

NEW LAYOUT – Mr. Hertel reported that we have been able to get 100% support for the new layout and he have now met face to face with the major sponsors for the Miracle of Life Birthing Exhibit.  Mr. Hertel showed the Board members a diagram of the Fairgrounds and he highlighted the proposed new entrance and the details of the various new plans and changes to be made to the layout of the 2006 State Fair.  Some of these changes would include moving 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.  The main midway rides and carnival would remain at its present location.

Mr. Hertel was happy to report the Habitat for Humanity group has agreed to return and increase their sponsorship from last year’s $5,000 to $30,000 for the upcoming Fair.  They will again build a Habitat Home during the Fair.  Mr. Hertel highlighted the area on the map where the home would be built and he stated that the home would be moved to a site south of the Fairgrounds at the conclusion of the Fair.  He added that the agreement with Habitat for Humanity is a very nice arrangement and it also provides good exposure for the Fair.

NEW ADVERTISING – Mr. Hertel reported that we will stay within our budget concerning grounds entertainment.  Grounds entertainment include things like:  The Lumber Jack show, the Petting Zoo, The Jugglers, The Princess and Dragon show, The Magic acts and other activities that go in the Gazebo.  One of our new attractions for this year will be an amazing life-like tree that walks throughout the Fairgrounds entertaining fairgoers, especially little children.  Mr. Hertel stated that we had to remove some other things from last year’s budget in order to bring in “The Tree.”

Mr. Hertel reported that while we are staying within our budget regarding grounds entertainment, we have decided to spend less money on our concert line-up.  He stated that because we can’t get as many good concert acts for the same prices as in the past, we have decided to have a few dark nights with no concerts in the Band Shell and instead we will use the saved monies on radio advertisements.  He emphasized we will not be using any additional or new money on advertising and we will also remain with our previous budget for television promotions.  Mr. Hertel stated that all of our radio sponsors have agreed to return and give us free advertisement, but because of our new 2006 State Fair dates, we must do even more to make sure that the public is aware of our new start dates and we want to do all that we can to encourage them to come.

CONCERT LINE-UP – Mr. Hertel stated that while we don’t have as many acts, we do have some really “great” acts already booked for the 2006 Fair.  Mr. Hertel gave a detailed report on the concert line-up to date and stated that this information should not be publicized just yet.  Mr. Hertel reported on a new concert concept and possible way that we might hold more concerts at our Fair.  He stated that although we were originally thinking that we would have at least four dark (no-concert) nights during the upcoming Fair, we have now entered into discussions and negotiations with production agencies regarding promoting and fully sponsoring concerts at the Fair and we might very likely have less dark nights than we originally thought.  Mr. Hertel was happy to report that we have now entered into negotiations with “Radio Disney” which is a brand new radio station coming to the Detroit metropolitan area.  WJR Radio referred us to this new radio station.  Radio Disney has expressed to us an interest in promoting the #1 act on Disney television, Ms. Raven Simone, at our upcoming Fair.  Mr. Hertel stated that our State Fair contracted entertainment group also agreed that Raven Simone is the #1 show today, appealing to children.  Mr. Hertel stated that after lengthy discussions with the people at Radio Disney, he informed them that in order for us to become partners and allow them to participate at our Fair, they would have to fully cover all of the expenses for the Raven Simone show, which would be held at the Fair over the Labor Day weekend.  Mr. Hertel stated that we are expecting to hear back from Radio Disney by the end of this week, letting us know whether or not we have an agreement.  Mr. Hertel stated that we have also heard from two other production groups regarding them wanting to come in and promote musical concerts at the Fair.   This new concept regarding sponsoring and promoting concerts at the Fair will be pursued.   Mr. Hertel reported once again that all of our concerts are free-of-charge with paid gate admission into the Fair.  He stated that we will be possibly sign our hip hop groups during the month of May, but we want to be especially careful to look into the background of certain groups and make sure they have a clean track record and we also want to assure that the group is popular and holding a top spot on the Billboard charts when we book them.  

Mr. Hertel stated that because of the current condition of economics in our State and with the high price of gasoline, we have to now, more than ever before, appeal to the family and we have to do more bargains.  Mr. Hertel stated the main thrust of the advertising this year will be “A Bargain Close to Home.”  He added that we are hoping to create a special kind of bargain for every day of the Fair. 

SPONSORSHIPS AND EVENTS – Mr. Hertel was happy to report that we are now working out the details for two new non-Fair events that we created ourselves and are having other organizations pay for.  The first event is the Blue Ribbon Car Show, which will be held the last weekend in July.  Mr. Hertel stated this event is currently being sponsored by Keith Crain’s Auto Week magazine and Waste Management.  He added that Ralph Haney, who’s highly involved and helps coordinate the Dream Cruise each year has agreed to cover the expenses for all of the printed materials to promote the car show.  He reported that the Fair would receive all of the parking monies from this event.  There will be an entry fee for each car entered into the show as well as a gate admissions fee for spectators to come in and see the cars.   Mr. Hertel stated an auto parts swap meet would also be included in the car show.  He then gave a brief report on the new car show event.

The second event will be a Car Auction to take place on the last day of the Dream Cruise Weekend.  Mr. Hertel stated that we will be selling cars at the Fairgrounds on Sunday afternoon and we may also incorporate an auto parts swap meet into the auction, if it does well at the Blue Ribbon Car Show.  Mr. Hertel stated that we would make money from the parking and the admissions into the Coliseum.  He emphasized that we will not attempt to join this event in any way with the Dream Cruise activities.  Mr. Hertel reported that early vehicle inspections might be held the night before the actual car auction on Sunday and we are also discussing the possibility of holding a Saturday night concert and/or bringing in a temporary drive-in movie theatre for the weekend.  Mr. Hertel stated that details and plans for both new auto events will be pursued and he added that WOMC Radio has agreed to promote both the Blue Ribbon Car Show and the Car Auction. 

Mr. Hertel reported he has been continuing his meetings with the Phoenix Theatre group and will report any progress to the State Fair Authority.  Mr. Hertel stated there was a very nice 90-minute television special regarding Drive-in movies that aired over this past weekend on CBS.  The show promoted Drive-in movies and reported Drive-in movies are coming back and excitement for this sort of entertainment is growing. 

OLD BUSINESS

Mr. Hertel reported that the American Cancer Society has agreed to return for their fourth year in a row to hold their Cattle Baron’s Ball at the Fairgrounds.  He added that this annual fundraiser is the largest fundraising event held in Michigan and it brings in over a million dollars each year.

Mr. Hertel reported the Wayne State University (WSU) Hockey tournament went very well and WSU has reported to us that they will be meeting soon with the league directors and promoters and they are hoping to bring the tournament back to the State Fairgrounds for a second year.

Jeff Haarer reported that the Department of Agriculture is at the Fairgrounds today conducting the Ash Tree Inspection.

Discussion was held regarding how items are placed on the supplemental each year.  Monique Field explained how this process works and the difficulty in getting items on the supplemental.  Mr. Hertel reported that the only successful situation he has had with capital outlay in the last 12 years was when we were able to get the hockey operation put in the State Fair Coliseum.  He agreed the situation with the supplemental each year is a very difficult process.

NEW BUSINESS

Mr. Hertel reported that the first “Dairy” meeting took place regarding the development of a Milking Parlor at the Fair.  He stated Rod Jordan, the State Fair Livestock Coordinator, Mr. Elwood Kirkpatrick, President of Michigan Milk Producers Assoc., Mr. Thomas Angott, President of C.F. Burger Creamery, Ernie Birchmeier, of MI Farm Bureau, and a couple of dairy exhibitors all attended the meeting.  Mr. Hertel reported that we would need between $30 - $40,000 to develop the Milking Parlor and we already have $20,000 committed.   He added that the funding for this new project is coming together well and he is very hopeful that we will be able to get it done in time for this years Fair.

Mr. Hertel reported that WJR Radio has agreed to spend a day on the air with their Saturday morning “Fix-It” show, soliciting individuals and groups to come out and assist the Fair in repairing the Garland Stove.  Mr. Hertel stated that we would be asking for financial donations, materials and skilled laborers to come and help in the repair and maintenance of the World’s Largest Stove.  Mr. Hertel also reported that he has met with Director Humphrey’s of The Department of Natural Resources (DNR) and again everything is in place with the Pocket Park for the opening of our 2006 State Fair.

PUBLIC COMMENT

Byna Camden suggested that we might consider looking at additional ways for promoting and advertising the State Fairgrounds car shows and special auto events during the summer.  She added that she does not feel that we are exposing our events well enough and we may possibly find greater methods for attracting the public to the south-end of Woodward Avenue especially during the Dream Cruise weekend.  A brief discussion was held regarding various radio networks that have been considered and will be pursued for exposure of future events at the Fairgrounds.  Mr. Hertel stated Channel 7 promotes the Dream Cruise but we will be having our auto events promoted by Fox 2 TV. 

DATE FOR NEXT MEETING

The next meeting of the State Fair Authority Board is schedule for Wednesday, May 10, 2006, beginning at 2:30 p.m. in the Administration Building, Conference Room at the State Fairgrounds, in Detroit.

A special meeting with local residents and surrounding neighborhood organizations is scheduled on this same day from 5:00 p.m. to 6:30 p.m., immediately following the State Fair Authority Board meeting.  This Local Neighborhood Advisory Council meeting will take place in the Community Arts Building, Auditorium, at the State Fairgrounds.

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

ADJOURNMENT

The meeting was adjourned at 3:25p.m.