MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

August 9, 2006

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 1:40 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

Edward Deeb, President & CEO of MI Food & Beverage Association

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 Extension (via Conference Call)

Monique Field, Representing Lisa Webb Sharpe, Director of DMB

Jeff Haarer, Representing Mitch Irwin, Director of MDA

John C. Hertel, General Manager, Michigan State Fair

ABSENT: Thomas L. Valliere, Manager, Midland County Fair

Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

Pat G. Albright, Owner of Albright Farms

Also Present: Tim Jenkins, MSF Assistant General Manager

Iris Lopez, State of Michigan, Attorney General’s Office Surrounding neighborhood residents

APPROVAL OF MINUTES

The minutes of the meeting held on June 14, 2006 were reviewed. ON MOTION BY Mayor Porter, supported by Mr. Deeb, and carried, the minutes were approved and the Motion was unanimously passed.

ACCEPTANCE OF AGENDA

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

CHAIRMAN’S COMMENTS

Chairman Gaffney welcomed the Board members and guests to today’s meeting of the Authority and he apologized for missing the last meeting. Chairman Gaffney stated that for a very long time we, at the Fair, have had a diminishing quality of infrastructure and buildings. He stated that each year as we prepare for the annual State Fair, we find more and more things that need to be either repaired or replaced. Mr. Gaffney suggested that the Board may want to consider taking time during the next meeting of the Board in September to create a list of items that need to be replaced or repaired and then we can also consider whom it is that we should present this priority list to. Mr. Gaffney stated that some items on this list might only be addressed to our State Fair administration, while other larger, and more costly tasks may need to be presented to our legislature. He suggested that we discuss and review this further at the next meeting of the Board and also that we might be prepared to give recommendations at that time.

Monique Field reported that DMB (Department of Management and Budget) has already begun putting together such a list and she agreed to bring the list to the next meeting of the Board in September. Mr. Hertel agreed to forward to Ms. Field a copy of a very extensive report that had been produced by the Smith Group, an independent contractor, which was paid for by HCMA (Huron Clinton Metro-parks Authority) a few years ago. He stated the completed study was valued at approximately $50,000. Mr. Hertel agreed to forward copies to any of the Board members at their request.

MANAGER’S REPORT

Mr. Hertel reported on the following:

NEW LAYOUT – The work for the new layout has begun. It appears that the portion of work pertaining to the new ticket plaza entrance will be complete in time for the opening of the 2006 Michigan State Fair. Mr. Hertel stated that although we can actually see continued physical progress being made with the new entrance, we do have an emergency plan in place and we will be more than prepared to re-direct fairgoers to various events and attractions, should something happen and the new entrance project is not done in time.

Mr. Hertel was happy to report that the new layout for the 2006 Michigan State Fair will offer many more attractions for the southwest end of the Fairgrounds, an area that once was very quiet and unattended. He gave a detailed list of the various exhibits and events, which have now been relocated to this new area. The Miracle of Life Birthing Exhibit, the Fallen Giant, the new Anastasini Circus with the Elephant encounter, the Pony Rides, Petting Zoo, Racing Pigs, the Lumber Jack Show, the Habitat for Humanity home which will be built right during the Fair, and the new refreshment area. Mr. Hertel stated that along with many of these new venues, we are also bringing back many of our traditional attractions i.e. the HCMA and DNR’s Outdoor Zone, the Family Grove Stage, the Community Arts displays and exhibits will remain in place and the Children’s Theatre will also take place daily in the Hudson Auditorium. This year the children’s play will be "Dragon Scales and Faerie Tales". Mr. Hertel stated that in all of the previous twelve Fairs that he has managed, there were never so many changes made.

Mr. Hertel was pleased to report that we have been approved for a new historical marker for Sea Biscuit and there will be a special dedication ceremony to take place during the upcoming Fair. He added that all of the expenses involved with the historical marker and the dedication ceremony has been paid for with private funding. The date of the dedication ceremony has not been decided at this time.

WHAT’S NEW for the 2006 STATE FAIR – Mr. Hertel reported that along with the new location of various exhibits and the new seasonal gate admissions and the one price, ride all day wristbands, the new circus attraction and the new children’s play in the Hudson’s Auditorium, we will also have a new walking talking tree, Rowdy Rooster and a special Fair discount promotion will be offered on over eight million lottery tickets sold before and during the State Fair. This new advertising promotion is being made possible through the Michigan Lottery Commission and will offer a special $2.00 off coupon for adult and child admission into the Fair for lottery ticket purchased.

CONCERT LINE-UP – Mr. Hertel was pleased to report that the 2006 State Fair Concert line-up is complete and now that we have held our annual State Fair Press Conference, the information could be openly shared with the public. He distributed a list of the 2006 State Fair Concert Line-Up to each Board member and then gave a brief review of each nightly entertainer to perform in the outdoor Band Shell Arena. He reported that two of the concerts have been paid for with private donations. Raven-Symone and Karen Newman & Friends were both booked for the Fair through private funding. Mr. Hertel reported that no rap artists were booked for this year’s Fair instead softer hip-hop music has been signed for both of our Friday night concerts. Mr. Hertel added that all of the concerts this season are free of charge with your paid admission into the Fair and there would be no gold circle reserve seats sold to anyone. All shows are on a first-come, first-serve base and it is stated in the program book that your general admission into the Fair does not guarantee entry in the Band Shell Arena.

Mr. Hertel was happy to report Fox 2 TV produced all three of our television commercials Pro-Bono and they also did not charge us to produce the musical entertainment video presented to the media during our State Fair Press Conference held last week on August 1, 2006. Mr. Hertel stated this in-kind service provided by Fox 2 TV is valued at approximately $200,000. Mr. Hertel stated that our relationship with Fox 2 TV continues to be a wonderful benefit. He added that we have regained the sponsorship arrangement with AAA of Michigan. AAA has finally agreed to return and sponsor the daily children’s contest corner and games. Mr. Hertel reported that unfortunately we did lose two of our sponsors this year. Farmer Jacks due to their bankruptcy could not return and DTE did not agree to come back with a renewed sponsorship arrangement. Mr. Hertel stated that even with these two losses, we are still in very good shape.

Mr. Hertel reported that the Wayne County Sheriff’s department and the Huron Clinton Metro-parks have both agreed to bring their Mounted Horsemen to perform and patrol at the 2006 State Fair.

SPECIAL DAYS – Mr. Hertel reported on these special days at the Fair:

On Wednesday, August 23, 2006, the Opening Day Ribbon Cutting Ceremony will take place at 12:00 Noon and all Board members are asked to arrive at the Administration Building no later than 11:30 to begin formation for the Opening Day Parade. Board members were instructed to enter the Fairgrounds through Gate "A", which is our special VIP parking located off State Fair Avenue. Mr. Hertel stated that Governor Granholm has been invited to cut the Opening Day Ribbon, but we have not yet received her response to the invitation. Mr. Hertel reported all three television networks will be here "Live" for the Opening Day Ceremonies.

Governor’s Day will take place on Wednesday, August 30, 2006 beginning at 11:00 a.m. with the Governor’s Wine Reception on the roof of the General Motors Pavilion. All Board members are asked to arrive in front of the Administration Building by 10:45 a.m. The Wine Reception will be immediately followed by the Governor’ s Luncheon and the Grand Championship Livestock Auction to be held in the traditional location of the North Food Court.

Mr. Hertel invited the Board members to make any day and every day at the 2006 State Fair a special day. He encouraged them all to bring their family and friends and anyone who they would like to become a supporter of the Fair. Mr. Hertel highly recommended Alice Cooper and suggested this would be a great concert for everyone.

Senior’s Day at the Fair will be Monday, August 28, 2006. Senior citizens 62 years of age and older are admitted into the Fair free of charge until 3:00 p.m. No identification will be required at the gates.

Mr. Hertel concluded his report and stated that there really is no better deal for families in Michigan and the State Fair is definitely a Great Buy!

OLD BUSINESS

Mr. Hertel was asked to leave the meeting and then Vice Chairman Ed Deeb gave information pertaining to what had been previously discussed and suggested by the Board members as a special tribute and recognition to Manager Hertel for his 13 years of dedicated service to the Michigan State Fair. Mr. Deeb stated that the Hertel family has been very involved in the State Fair for over 80 years and he just felt it would be appropriate to do something big for Mr. Hertel, who may very well be one of the Fair’s longest running Fair managers. Mr. Deeb stated that the entire Hertel Family, both of Mr. Hertel’s brothers, his father and his mom all served the public in one capacity or another. Whether it was in as a schoolteacher, the Speaker of the House, the U.S. Congress or in various community organizations, Mr. Deeb stated the Hertel Family has been a wonderful benefit to the entire State of Michigan.

ON MOTION BY Mr. Deeb, supported by Mayor Porter, and carried, to approve and move ahead with renaming the State Fair Coliseum in the name of the Hertel Family. Discussion was held regarding whether or not there were any State regulations that would prohibit this from being accomplished. Monique Field of DMB and Iris Lopez of the Attorney General’s office both indicated that the Authority Board had the authority to make this change if they so desired and that nothing was written to the law to prohibit it. Discussion was held regarding whether or not there would be signage painted over the Coliseum entranceway and/or a special recognition plaque would be placed on the inner walls of the building. Mr. Deeb stated that he had previously called all of the Board members and asked for their thoughts about this suggestion and he had received all positive remarks from everyone. He added that the only member whom he had not been able to contact was Elaine Driker who was out of state. Mr. Deeb made the motion to approve and proceed with the renaming of the State Fair Coliseum and the MOTION WAS PASSED unanimously. Discussion was held and various thoughts were shared regarding when this special announcement would be made to the public. No final decisions were made at this time.

Mr. Hertel thanked the Board for their support to him, the State Fair and the people of Michigan. He stated that in all of his years of public service and sitting on various Boards and committees, he has never worked with a finer group of people who were more committed to helping others for the common good to all. He stated that it has been a real pleasure working with the State Fair Authority Board and he feels that much has been accomplished under this administration. Mr. Hertel also reported that in his new role as the CEO of Mass Regional Transportation, he would make sure that there is a special stop in the transportation plan for the Michigan State Fairgrounds. He concluded by stating that he really could not thank the Board enough for all that they have done for their State Fair and the citizens of Michigan. Mr. Hertel thanked the Board again for the special honor of renaming the State Fair Coliseum after the Hertel Family. He added that this warm tribute being made by the State Fair Authority Board has really left him a bit speechless. He expressed a great feeling of pride.

NEW BUSINESS

Discussion was held regarding various activities and events that could be incorporated into the Fairgrounds to help bring in revenue over the Dream Cruise Weekend. Mayor Porter brought many great ideas to the table and suggested that the Board consider looking at some of these ideas for future planning of Non-Fair activities.

PUBLIC COMMENT

Byna Camden, on behalf of the ICARE organization complimented Fair Manager Hertel for his great accomplishments at the Michigan State Fair and she thanked him and the Board for allowing her and other supporters of the Fair to take part in the monthly meetings and to share their thoughts and concerns as it relates to the future of the State Fair. She added that she would be taking the concert line-up and various information shared at today’s Board meeting to the ICARE meeting this evening as she knew many would be interested in knowing about the upcoming Fair.

NEXT MEETING DATE

The next meeting of the Michigan State Fair Authority Board of Directors was scheduled for Wednesday, September 13, 2006, beginning at 1:30 p.m., in the Conference Room of the Administration Building, at the Michigan State Fairgrounds, in Detroit.

Please note all future meetings of the Michigan State Fair Authority Board at scheduled for the second Wednesday of each other unless otherwise noted.

ADJOURNMENT

ON MOTION BY Mayor Porter, supported by Mr. DeCock, and carried, the meeting was adjourned at 2:42 p.m.