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HomeMy WebLinkAbout5-24-22 LEPFALANSING ENTERTAINMENT & PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING May 24, 2022 MINUTES At 8:05 a.m. Chairman James Stajos called the monthly meeting of LEPFA Board of Commissioners to order in Rooms 201 and 202 located at the Lansing Center; 333 East Michigan Avenue; Lansing, Michigan 48933. COMMISSIONERS PRESENT: Cindy Bowen, Kenric Hall, Larry Leatherwood, Danielle Lenz, Brian McGrain (Ex-Officio), Charles Mickens, Maureen McNulty-Saxton, and James Stajos. COMMISSIONERS ABSENT: Paul Collins, Price Dobernick and Desiree Kirkland (Ex-Officio). OTHERS PRESENT: Mindy Biladeau, Heidi Brown, Michelle Green, Scott Keith, Kasey McFadden, Paul Ntoko, and Tristan Wright - Lansing Entertainment & Public Facilities Authority; Joe Abood-Lansing City Attorney’s Office; Sherrie Boak – Lansing City Council and Jack Alexander. III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. IV. PUBLIC COMMENT: Mr. Jack Alexander commented that at the Lansing City Council meeting that $15-$20 million funding for Jackson Field stadium was discussed. Mr. Alexander stated that the selling of bonds would be the best option for funding as the City does not have that kind of money. He added that at the last board meeting he encouraged the board members who were present to reach out to Mayor Schor and the City of Lansing to discuss the condition of Jackson Field and to see what can be done. Chairman Stajos thanked Mr. Alexander for his comments. Scott Keith introduced Sherrie Boak who was attending as a representative for City Council. Chairman Stajos introduced Cathleen Edgerly; Executive Director of Downtown Lansing Inc. (DLI)Cathleen provided a brief update on the state of downtown Lansing. Cathleen reported that downtown Lansing has been hit hard since the pandemic losing 80%-85% of daytime traffic for downtown businesses and downtown business mirrored that lose in their traffic and sales, which they are still recovering today. There is a slow increase in traffic now that people are starting to slowly come back downtown, but it will never be where it used to be noting the state of downtown Lansing is in transition. Cathleen reported that as an organization DLI transitioned their focus to providing hope, stabilizing the economic impact and strategize with the question “How do we as a community move forward, and how they will work with organizations (like LEPFA), business owners, property owners and residents?” Cathleen reported that with the economic impact Lansing currently has about 1.5 million square feet of canceled office space. So DLI had to shift their business model as an organization and how they operate and raise funds. Last year they raised over eight hundred thousand dollars ($800,000) that went to businesses, providing them with various grants through the help of state and city partners as well as private individuals. In time, Cathleen reported that DLI is looking into shared spaces and how they address vacancies and filling them, as well as diversifying their business mix. DLI is not only looking into shared spaces for businesses, but they are also looking into outdoor spaces as well. By doing this, it can help business and also create a more welcoming and attractive space that residents would want to visit when coming to the downtown area. LEPFA Board of Commissioners Meeting Page 2 May 24, 2022 Cathleen added that this past spring DLI ran an analysis where they worked with the state to make a case for why they needed funding. They asked the question, “What does downtown currently have?” “What do we need in terms of residential and commercial?” and provided a data driven approach and an actual plan for how they will get to where they need to be in terms of the business mix, they are looking to achieve. The residential offerings for downtown can no longer rely on the 8 to 5 traffic or the sales that were primarily between 8 and 2pm. The question then becomes “How do we support a different model?” “How do we build for different development for residential and commercial that haven’t been done in Lansing before?” Cathleen suggested we can do this by looking at numerous opportunities. Also, there will be at least two priority redevelopment sights that get chosen by community where the community will put together the development plans. Cathleen added that DLI is also talking with their REO Town and Old Town neighbors and are adding them to the study to see what they can afford to do and what they have done in the past to help with planning. DLI is also working on advocating with the help of the city and their partners to help provide recovery funds for businesses. This will help provide small business support grants to do the work that they know needs to be done to improve the infrastructure, community spaces, and overall create the downtown that Lansing deserves. Cathleen added that so many states across the country, especially the capital partners are putting aside funding that is dedicated to their downtown areas. That has not happened for Lansing; so, Cathleen and Downtown Lansing Inc are going to continue to advocate for funding for our beloved downtown Lansing and hope to have some positive news soon. Chairman Stajos asked when Cathleen mentions her “major employer” is she referring to the State of Michigan; Cathleen confirmed it is. Chairman Stajos asked if there is no sign of the State employees coming back at all, or does she mean to full capacity? Cathleen responded some departments are coming back, and some have chosen to be hybrid. DLI does not know exact numbers/percentages, and which is challenging in terms of planning. A large portion of DLI’s strategic plan is planned as if the state employees never fully returning to their offices. Chairman Stajos asked “Why have we always had this 8 am to 2 pm business in downtown Lansing’ East Lansing - they are opened a lot longer.” He noted with the bars that came back to downtown Lansing he thought it would have created a nightlife downtown. Chair Stajos asked,” what do you (Cathleen) think is the main reason we can’t have a downtown; Is it parking what is the million-dollar answer to give us a downtown that Lansing deserves?” Cathleen replied she believes a sizable portion is that 60 years ago, they took our neighborhoods to build large office buildings, and downtown Lansing got comfortable serving a certain model. So, all businesses in the downtown Lansing area built their business plans and business hours around that model. The harsh reality is that model no longer functions and added that we must diversify businesses, we must figure out how to have a residential downtown and we must figure that vision out together by having these types of conversations to have an overall functioning downtown. LEPFA Board of Commissioners Meeting Page 3 May 24, 2022 Commissioner Saxton asked, “Who are your legislative champions for the ARPA funding?” Cathleen answered, “Representative Sarah Anthony, Senator Curtis Hertel, Jr., Senator Mike Shirkey, private property owners, partners, and Mayor Andy Schor. Commissioner Mickens asked, “What other capital cities do you look to as potential models?” Cathleen responded that they look at many different cities across the U.S. and noted it is hard to choose a favorite, but some capitals who are showing similar challenges such as Lansing are in Alabama, Virgina, and Ohio. But our narrative is changing. Chairman Stajos asked Commissioner McGrain how the city is doing as far as bringing the departments back into the office and Commissioner McGrain stated that his department is fully staffed for about a year now. Commissioner McGrain added most of the state departments are back, and about 95% of their employees are back in their offices. Scott Keith thanked Cathleen for attending and presenting on such short notice. He added that he wanted to have Cathleen address this topic so the LEPFA board members understand how important it is to what LEPFA does and how we have aligned with them and have had these conversations on how we can integrate our strategic plan with their strategic plan for the sake of the downtown’s future. Next month Julie Pingston will attend the LEPFA board meeting to discuss state of industry. Scott Keith noted he would like to align board members, so they have background information before the Board goes into the LEPFA strategic plan development. V. APPROVAL OF THE APRIL 26, 2022, MINUTES: Motion was made to accept the meeting minutes for the April 26, 2022, meeting as presented. MOTION: Vice President Leatherwood Second: Commissioner Bowen; motion carried. At 8:24 Cathleen Edergly left the meeting. VI. REPORTS: A. CHAIRMAN’S REPORT: Chairman Stajos noted items for today’s meeting include: 1. Financials Review 2. Strategic Planning Committee 3. Personnel Committee 4. Nominating Committee 5. Thrift Plan B. FINANCE COMMITTEE: Commissioner Hall reported the committee met and he deferred the report to Michelle Green to report on April 2022 Financials as follows: LEPFA Board of Commissioners Meeting Page 4 May 24, 2022 1. Jackson Field: Michelle noted compared to her report last month Jackson Field is showing the same trend that has been the case for the past couple of months where there is a lot of maintenance and upkeep to the stadium, which resulted in maintenance and facilities being over budget as well as Salaries and Wages. Salaries and Wages picked up compared to the start of the season when allocating necessary wages needed to do the maintenance and upkeep. Michelle is keeping track of the summary page of all the expenses going into maintenance and facilities, noting HVAC is one of the biggest hitters. Michelle noted that the balance sheet/general checking has a larger balance currently due to the timing of receiving cash for renovation projects at the stadium. These were received at the end of the month and cash goes out to pay those vendors at the beginning of May. If you take the out the bills that are paid, Jackson Field ended the month with roughly $67,000 to get us through May and June. June will be tight until we can get the next subsidy check. Commissioner Lenz asked, “How often do we operate at big losses?” Scott Keith stated that COVID made it more challenging than usual, and it is always a challenge with the budget, and COVID has made it even more exacerbated because Jackson field typically had reserves to address fluctuations and timing of payments. Secondly, the stadium has times of the year where it will go up and down. We try to nix that as much as possible, but when the stadium opens at the beginning of the year (March, April, May), that is when a lot of repairs come forth due the stadium being in idle for the winter. This year there were HVAC issues and higher utilities bills due to construction which we anticipated early on, but we were also budget constrained this year, and could not ask for more money. He noted for the upcoming year we requested more funding and received it and he hopes to be able to rebuild the reserves. At 8:28 a.m. Joe Abood stepped out of the meeting. Michelle Green noted that the subsidy checks were slightly short throughout the year so she will be collaborating with Commissioner Kirkland to make sure that we are caught up on receiving those funds. For example, the stadium might not seem like a lot of money, but we are owed about $4600 which could cover one of the HVAC bills. LEPFA Board of Commissioners Meeting Page 5 May 24, 2022 Charmain Stajos added there is no income from the stadium, and funding comes from the subsidy. Michelle Green agreed, Chairman Stajos stated that none of the income passes through to LEPFA such as parking, ticket sales, etc. He added that he did not understand how that all works within the City, and he reiterated the stadium just gets a subsidy and then must we must work with it based on what is need. Scott noted that LEFPA is playing catching up on differed maintenance from the pandemic. Also, Major League Baseball required certain changes that we must accommodate, but LEPFA does not see any revenue from the stadium. He clarified any revenue received by LEPFA goes to the City, and LEPFA is the property owner of the stadium in basic sense and revenues from specific LEPFA events at the stadium will generate revenue; but otherwise LEPFA doesn’t see any direct revenues. 8:29 Joe Abood entered the meeting. Commissioner Bowen complemented Commissioner Lenz’s question and dialogue and asked, “Is there a different fiduciary responsibility as a Board relative to the financials of Jackson Field?” She added as Scott Keith explained, LEPFA is the property manager of the facility, one of the primary responsibilities as a Board member is fiduciarily and that she believed that is a legitimate question to ask. Scott suggested there could be a way that we track payments to the City. Michelle Green stated that it would be reporting on the city revenue. Scott added that the revenues that go to the city are based on an agreement between the team and the city and there are certain elements that the city gets a portion of the revenue. Commissioner Bowen restated the question., “Do we as a board, what do we look at and what are we responsible for in reviewing those financial differently from Groesbeck and the Lansing Center?” Michelle Green answered that we are responsible for maintaining the stadium all while keeping in line with the City’s budget that we have allocated for. Michelle added general upkeep as we talk about HVAC systems would be electric, lights and just making sure all of that is working. Michelle suggested having more conversations about specific repairs that are happening each month. Commissioner Bowen added as board members, the budget that is presented is what should be monitored through the financials, but it was a good question to ask. Scott Keith also added that LEPFA is responsible for monitoring the budget and planning within the limit the City provides and there are a lot of things that need to be improved, i.e. concrete, elevators, infrastructure which is our focus at the stadium and that will be our focus for a few years. Commissioner Bowen thanked Scott. LEPFA Board of Commissioners Meeting Page 6 May 24, 2022 Chairman Stajos questioned, “Would you say we are basically a management company maintaining the maintenance of the facility?” and added “We really do not have anything to do with income or revenue.” Commissioner Bowen agreed and added that is why she was looking into the answer to the question because the question does point out that relative to the Lansing Center, the board gets reports on sales and PACE reports where Board members can get ideas and input as members. But with Jackson field, as a Board we are not brainstorming or suggesting different events, tickets, and sales or how to get groups to attend, so it is different. Chairman Stajos agreed. 2. Groesbeck Golf Course: Michelle reported that total rounds played for month to date and year to date are behind. Prior to COVID, in April, there were about 2,100 rounds played, prior to covid there were 1,600. Michelle noted when looking at the prior year for Groesbeck, 2021 was a momentous year that will not be beaten soon. Looking at April golf revenue per round, it is down compared to 2021; versus previous months where we are used to seeing the revenue per round exceeding the prior year. In April carts were not out on the course due to rainy weather; however, for the months of May and June we will see an increase, and we will be able to exceed revenue per round compared to prior year. Michelle added that we are still trending positively year to date and food and beverage revenue per round is still performing strongly. Scott Keith added that Groesbeck peaked at the number of rounds during the pandemic, because people did not have much to do, it was something they could do, and the college students looked at golf courses like outdoor bars. 2021 was high and we have since come down and leveled off and know currently that 27,000 rounds are a good solid year and that is what we are aiming for. LEPFA’s goal is to increase the revenue per round and that is how we can lower the contribution from the city. He added, we are considering the next steps needed to take the golf course to the next level which will be discussed with the board as a part of the strategic plan for the golf course. Scott mentioned he was asked the question, what do you like more, leagues or people booking online and coming to the golf course? He answered, both. That is because it is the right mix and explained why. In the meantime, we are looking to figure out the right plan for food and beverage, merchandise, new events, etc. for revenue. LEPFA Board of Commissioners Meeting Page 7 May 24, 2022 Commissioner Lenz mentioned that the course is missing their beverage cart and Scott reported that currently there is an issue on our lease with the company. Michelle reported the prior year, for the full year, there were about 35,000 rounds; this year we are aiming for 29,000 rounds and believes we are on track. Scott Keith added compared to prior years weather, it has been the challenge this year as carts cannot go on the course because it is too wet. Scott reported, the Lugnuts have been frustrated by the weather as well because it has impacted the number of attendees. Michelle continued the report with expense variances noting there was not anything too outstanding in April. Salary and wages are up, due to hiring full-time employees at the golf course thanks to HRs hiring efforts. Because of this, Michelle stated we will see that pick up for the near future. Michelle reported nothing is outstanding for the balance sheet. Commissioner Bowen asked a question and had a comment about salaries and wages noting when it was stated that “things will pick-up for full-time employees,” she assumed that means to get us to the level of staffing yet, its over budget. She questioned what did we budget for? Scott Keith explained it is partly the reallocation of some salaries. Michelle Green reported that she was not sure if we changed allocations, we did pick up a bit in the schedule that was made with additional allocations for administrative staff at Groesbeck. Commissioner Bowen then asked if we then have more staff then we budgeted for? Michelle stated she could investigate if she can find documentation on previous year’s budget as to what salaries went into that. Commissioner Bowen stated in a previous board meeting there was talk of someone who was leaving to work at a course up north, so she assumed payroll would be down, especially if that person’s role was considered in the budget. Michelle report that we are currenting hiring additional full-time employees for the grounds and we hired a new an Assistant Pro. In addition, we are allocating additional salaries for accounting, so the Lansing Center is not weighted down. Chairman Stajos asked, “The only salaries that the board allocated were some additional salaries like Paul’s involvement, correct?” Scott Keith confirmed and explained that we moved forward with that a couple of years ago, but also, we had to raise wages to try and be competitive and that played a big part. He noted that the fringes are down, so we have more staff, but it is more staff that is not full-time benefit eligible staff. Commissioner Bowen asked if it would be possible to have an overview at some point of FTE counts and budget comparison to where we are at, and Michelle confirmed. LEPFA Board of Commissioners Meeting Page 8 May 24, 2022 3. Lansing Center: Michelle Green reported the Lansing Center is difficult to compare to the prior year, and that she did want to point out April of last year they recognized $700,000 received from the Strategic Grant, making the variance look like we performed poorly compared to prior year which we did not. She added looking at budget comparisons we are beating budget by 350,000 this month and we are still doing well for year to date. She noted that if we look at our income statement for the Lansing Center, while it looks like our net margin for the month is at 50% you will notice for example, food and beverage is running at 44% of food and beverage revenue budgeted at 77%. So, we are still low in labor across the board for food and beverage as well as administrative staff. Overall, we did perform well for the month of April, however if we had the appropriate staff, it would not have been quite as high of a margin. For year to date, if you back out PPE and the Strategic Grant for the year, your margin is 12% versus what is represented at 32%. The Lansing Center, expense variations, such as Salaries and Wages, we were not expecting the increase in revenue when we budgeted. So, the report shows a significant difference in salaries and wages. She added that again utilities are up from last month, as well as professional services such as security fees, due to security increases with events as well as rates increasing. That is also the account that we have our third-party accounting services hit. Commissioner Bowen shared an appreciation and thanks to the staff being in a very similar day to day position as she was one of the three banquet bartenders on a Saturday at one her property, she said seeing the revenue and what the staff is doing with what limited staff we have, she thanked the staff for all their hard work. Scott Keith explained that a $500,000 month for April is not far off from a traditional April at the Lansing Center, but to see the labor cost as well as other cost, the number is off which is about 85% to 90% of April revenue on a normal year, and we are probably at 70-75% of our expense cost on a normal year. That is with the demanding work and savings, as each team would love to have more staff in every area, but it is just a slow climb. So, when we get to talking about where we are at with hiring, there are things happening and improving but it is a two steps forward, one step back situation. He reiterated again that these numbers are based on the demanding work of the team. Michelle Green continued that we are doing well for our bottom line, but we are also burning out our staff on food and beverage and events. Scott added that in the finance committee meeting we discussed working on projections so that we know where we will be by year end so we can understand what we have to do between now and then knowing that June is a drop off month, with no revenues. There are a lot of events in June, but none that bring in revenue. LEPFA Board of Commissioners Meeting Page 9 May 24, 2022 For example, Scott explained, Lansing School District Graduation will be happening in June, they rent a generous portion of the building for a few days, but there are no other revenues to that event. So, we will have a busy calendar but know not with events that will bring in the revenues we need. Motion was made to accept the financials as presented for Jackson Field, Groesbeck Golf Course, and the Lansing Center for the period ending April 30, 2022. MOTION: Commissioner Saxton SECOND: Commissioner Hall Motion carried C. PERSONNEL COMMITTEE: Committee Chair Cindy Bowen reported the committee met and discussed the following items: Commissioner Bowen reported that they are close with the revised evaluation document. Scott Keith and Commissioner Bowen conferred on the SOP for the process. She suggested that due to timing that we really should settle on that form modification so that executive committee can start their process as it is supposed to be done in June. Scott Keith added that he owes commissioner Bowen one thing and then they should be finished. “Goal almost accomplished” stated Commissioner Bowen. 2. Scott reported on the LEPFA Pension Plan restatement and that the board must authorize our current pension plan (Employee Thrift Plan) and it must be restated by July 31, 2022. We are in the process of collaborating with our attorneys at Foster Swift to do that which involves updating not only dates but one item which Michelle Green reported on. Michelle reported that part of our Retirement Savings plan for LEPFA is we allow employees to contribute 7.5% to their retirement versus paying Social Security. Currently employees may not contribute to the fund until they reach their 120-day training period. At that time, we would then submit all their funds and begin their account with EMPOWER. The proposal is to change the language and there are three options: 1) We could pay social security for the first 120-days and not allow them to take the 7.5% for that period. 2) We could waive the waiting period and let them contribute 7.5% right from day one. 3). We can continue what we have been doing which is hold it until 120 days and at that time do a pro-rated amount from their checks to be able to contribute at that time. We are recommending the proposal waiving the 120-day waiting period. This is not money out of LEPFA’s pocket, this is employee money, so they either pay social security or we allow them to contribute to their retirement LEPFA Board of Commissioners Meeting Page 10 May 24, 2022 Scott Keith explained we currently are withholding 7.5% that we save in an account but if they leave, they do not get that money which is how it is currently set up. The funds should be going into something that is for the employee period. We are suggesting (as we are working with the attorneys) that we will waive the 120-day period for the 7.5% employee portion only into the pension account. Everything else will remain the same. Chairman Stajos questioned, “What is the wash out rate for the first 120 days with employees?” and noted that there is an expense for these accounts, and he said he would lean towards social security for the first 120 days until they qualify and then know that they are going to stay and then remove the 7.5%. Scott explained that route requires a lot more effort legally as the attorneys must set up how that is done currently as none of our full-time employees contribute to social security. Commissioner Leatherwood asked if the employees themselves complained about this process. Scott answered no, as it only impacts an employee who leaves within the first 120 days, and it is such a small amount in most cases. Heidi Brown added that it only pertains to full-time employees, and not the part time as they contribute to social security. Chairman Stajos stated that makes more sense that it is just for full-time employees. Commissioner Bowen asked if there is not an issue with us as an organization retaining those funds. Michelle Green stated that it could be a sticky situation and is why we need to rectify the matter. Scott clarified that this is why they have reached out to the attorneys, and they presented the three options that were just presented, and we are leaning more towards option two which is to waive the 120-day period for the 7.5% only and will go into the employee pension account and they are currently waiting on one more draft before they propose this to the LEPFA Board as a recommendation. He stated that is has never been an issue or that no one has ever brought it forward, it was just something that Michelle caught and asked the attorneys if it was something we should look at and they confirmed that we should update it. Commissioner Bowen asked for clarification if not only were the attorneys recommending the change, but they were also getting clarification on us having retained those funds as an issue, correct? Scott responded no, there has never been anything that has been brought forward that there is an issue, the attorneys did not have an issue with it. He added we could keep it as it is, and that was one option, but we feel it would not benefit us to keep it that way. Chairman Stajos asked, “Of that 7.5% would we be matching a percentage just like what we do with social security?” Both Michelle and Scott replied “no”. Chairman Stajos added because LEPFA Board of Commissioners Meeting Page 11 May 24, 2022 with social security as an employer, we must match those funds, “is that correct?” Scott explained we have a different match on a different pension account, but that does not go into effect until they hit a certain milestone (120 day, one thousand hours worked). The personnel committee and the finance committee will revies the proposal and then once approved by committee it will be brought to the full Board. Chairman Stajos thanked Commissioner Bowen for “taking the bull by the horns” and added that as a part of the Personnel Committee report the evaluation review process is long overdue and well needed and he thinks it will be a good addition to the CEO evaluation process. D. STRATEGIC PLANNING COMMITTEE: Committee Chair Danielle Lenz reported on the strategic plan update and noted that the committee met and to determine a date and will attempt to select a date within the time frame the committee suggested - in late July or early August. Scott added that Kasey McFadden will be reaching out to determine a date, and then will work with Dorothy Maxwell on finalizing the date/time. Commissioner Lenz stated that she cannot stress how important this one day will be for the future of LEPFA and the strategy moving forward. Commissioner Lenz stated that the next topic of discussion was the Groesbeck Golf Course Strategic Plan. She mentioned that Scott sent the plan out to the committee prior to the meeting for review and reported that the board would create an overall plan for Groesbeck. Some decisions that will be discussed are where we are at with Groesbeck, where we would like to go, as well as the design and development of a potential driving range along and the overall cost. Commissioner Lenz added that she believed that the overall cost did align with their budget, therefore they will be moving forward with researching the idea of potentially adding a driving range/practice area, and questions/concerns should be addressed with Scott Keith. Scott then presented on the background of the plan. He stated that Allen Belyea is the person who is working on this project. Allen grew up in the Groesbeck area and has played at the course multiple times and graduated from the Lansing area. Scott added that part of Allen’s proposal was a draft, and he will be working on it with Allen and Scott added that Allen has been involved in the last two redesigns at Groesbeck and is very intimately knowledgeable about the golf course. Allen has a passion for Groesbeck, and really wants to see this happen as he thinks it will be a wonderful opportunity for LEPFA to move the needle for the next 10 (ten) years at the golf course. Scott stated he is excited for what could be in store for the course as Allen has some great ideas. Vice President Leatherwood asked, “How would this (the strategic plan) be paid for, would the funds be provided from the state or general property funds?” Scott answered that LEPFA has some funds in reserve, and they have budgeted some funds as well. He added that this cost will be spread amongst two fiscal years and be in two separate phases and they have estimated the cost to be roughly $25,000 over two years and right now it is quoted at about $27,000, and Scott is working with Allen to get the cost under $25,000. LEPFA Board of Commissioners Meeting Page 12 May 24, 2022 Chairman Stajos stated that he was surprised at the last meeting that there is no longer a driving range in the city of Lansing. He added as we have all seen with COVID the younger generations have taken on the sport of Golf and it has revitalized the sport and we owe it to the young people of the city of Lansing to provide a driving range. He suggested that as we continue to host high school golf tournaments at Groesbeck and have high schools play at the course, that we have a driving range for them. It will make the facility that much better and change the overall experience. Scott added not just the driving range, but it will add more practice so people can work on their game, and it will make them stay longer or come earlier. Scott added it will invite more outings and tournaments and will add an extra element to the golf course which are all mentioned in the master plan. E. NOMINATING COMMITTEE: Commissioner Mickens presented nominations for the Slate Officers for the 2022/2023 fiscal year and the nominations were as follows: CHAIRMAN: Commissioner Larry Leatherwood VICE CHAIR: Commissioner Kenric Hall SECRETARY/TRESAURER: Commissioner Maureen McNulty Saxton MOTION: Chairman Stajos SUPPORT: Commissioner Hall Chairman Stajos opened the floor for discussion. Commissioner Bowen asked, “Could we question that is it appropriate for the chair to present a motion?” as she has never seen that happen. City Attorney Joe Abood clarified that the person with the gavel does not normally make the motion. Sherrie Boak confirmed that the chair cannot make any motion. Commissioner Bowen asked, “Of the committee or board?” Sherrie replied “Both, for example the president of the council cannot make a motion, the chair cannot make a motion. Scott Keith asked if there was someone else who would accept the motion. MOTION: Commissioner Bowen SUPPORT: Commissioner Hall MOTION CARRIED F. VICE PRESIDENT/STAFF REPORTS: 1. Tristan Wright: Tristan thanked everyone who came to support the naming of the James Walter Bulter III Board Room at the Lansing Center noting he is dearly missed and now we will have an everlasting piece of him, his class, and everything he stood for. She added her thanks to the staff, as they have done a fantastic job and will be able to enjoy a long memorial weekend which is well deserved. She reminded everyone that the pedway will be closed starting June 6th, LEPFA Board of Commissioners Meeting Page 13 May 24, 2022 as the City of Lansing will be renovating the pedway, until the end of summer. the stadium is rocking, the Lugnuts are on the road for the next week or so and the grass is growing at the course. 2. Heidi Brown: Heidi thanked everyone for the support of the LEPFA team and reviewed from the information provided in the Administrative Report including a summary of filled and vacant positions. We currently have thirty-three full time staff, and we are at 43 on 2020. There are five positions left to fill: Foodservice Supervisor, Golf Operations Manager, Accounting Manager, Accounting Box/Office Coordinator. Interviews are scheduled for the Golf Operations Manager and there have been ongoing interviews for the Accounting Manager. The Event Services (Logistics) Manager has resigned as of May 26thand the position is being reposted. Commissioner Lenz asked, “That was a new hire, wasn’t it?” Mindy answered yes and explained Laurel retired in January 2020 and she hired Rebecca about 5 months ago. Rebecca came from Van Andel/DeVosASM Global. Mindy added it was surprising and unfortunate. Commissioner Lenz asked if she provided a reason. And Mindy replied that she took another career opportunity. It was hard to compete with the 1.5-hour drive from her home each day, and we can’t compete with no nights and weekends and working full-time remotely. Scott added it was a customer of ours that she went to, so she will be back in the building. He added that with working from home, we can give the money part but the working from home we cannot work with. Heidi Brown continued her report mentioning that Groesbeck is fully staff except for the Golf Operations Manager. On the sales and service side they are nearly fully staffed. There is a list of the full-time positions that have been filled to date in the report and currently the emphasis is on food and beverage part-time staff hiring which is ongoing. Heidi reported no employee leaves for April and the same for the employee referral program and no workers compensation claims. With Kasey on board that is allowing more time for her to work on relooking at employee programs and amping up a return for LEPFA U starting in August and reviewing LEPFA Bucks, a reward program for our employees. LEPFA’s vision insurance (EyeMed) is coming up for renewal in June, so we will see what they bring to us. Collective Bargaining is underway with IATSE, and we will meet with UAW. Staff committees are under review and will be ramping back up. 3. Paul Ntoko: Paul noted Groesbeck is starting off bringing back almost all the leagues from last year which is huge. We were able to squeeze in twenty-five leagues which have started already this year. He reiterated that the staff has been outstanding there is no way we would not have done it without them, and they all are looking forward to the long weekend and they deserve it. “Greens and Grains” will be here in a couple of weeks (June 10), and they have Grains LEPFA Board of Commissioners Meeting Page 14 May 24, 2022 and Greens in the spring because the last one was in the Fall, and it got dark too quick which they believe is why they did not sell out. Event sponsors are Lansing Brewing Company. At 9:16 a.m. Commissioner Saxton, Tristan Wright and Kasey McFadden exited the meeting 4. Mindy Biladeau: Mindy reported the Lansing Center monthly rental sales are at $76,285 for the month of April, which is way above budget in comparison to 2019 pre- pandemic. She added we are currently at 73% of rental and added to Heidi’s report about losing the Event Logistics Manager, who just hired three new Event Coordinators, two started on Monday: Rebekah and Jake. The third will start on Monday, May 31. They each have various levels of experience. One is straight out of college just graduating from MSU in May in Hospitality and Business, to some that have more experience with operations. She added that it is exciting but it will take time to train them and get them familiar with our building and getting use to LEPFA’s policies as well as collaborating with our clients so it will take several months for them to get into the swing of things and work on their own. Mindy reiterated what Paul had mentioned about Greens and Grains which is June 10th and September 16th and asked those present to spread the word. She is wrapping up Silver Bells 2021 and is diving into 2022 and trying to get caught up. The 2022 date will be Friday, November 18, and the 5K will be Saturday, November 19th. Mindy also reported that her team is working on a social campaign on various platforms for HR recruitment. They are currently working on edits to employee testimonial videos per department and she hopes it helps recruit high-quality candidates for future employment in our departments. At 9:18 Kasey McFadden re-entered the meeting. G. PRESIDENT & CEO’s REPORT: Scott Keith reported the following: 1. Greens and Grains: Scott mentioned he has posters for business to promote Greens and Grains. He stated he is really looking forward to this event as last year it was a great turn out and he thinks this year it will turn out just as well. 2. James Walter Bulter III Ceremony: Scott passed around the pamphlet for the James Walter Butler III’s memorial at Arlington Cemetery in Washington, D.C as he attended the memorial. He stated it was a very touching and moving experience. He said what stuck with him the most was what the officiant said which was that people ask how much it costs to buy a plot in Arlington Cemetery and his response was, “You can’t buy a plot here it must be earned.” He stated to stand there in the presence of all the fallen heroes to watch a 21-gun salute while listening to Taps was a moving experience. Mrs. Bulter planned the whole memorial very well. At 9:21a.m. Tristan Wright re-entered the meeting. 3. Meeting with Mayor/ PA340 Funding: Meeting are to be schedule for the PA340 Funding and then tomorrow there is a meeting with the Mayor and the Executive Committee to catch them LEPFA Board of Commissioners Meeting Page 15 May 24, 2022 up on all things LEPFA. Scott added that we are looking into an energy savings project in the future that he will bring to the committee. We will have to develop an RFQ, or RFP based on where the City would like this to go. The City is in the midst of a similar project, so it might be good timing for us to tag along with the success of their project. Scott report Tristan is working on a "RAP” Grant through Commissioner McGrain’s office and is working on getting that completed as a grant funding that has matching dollars for adding some improvements to the riverside area of the Lansing Center. 4. CVE Test: Scott added that last Wednesday he took the CVE Test (Certified Venue Executive) which he has been working towards for about a year. He added this is the third step in the process and was a 3.5-hour test. He is hoping to hear this week if he passed which he must have 75% to pass and then the next step is an oral exam with a board asking questions and defending his paper which he finished in December. He will update the Board as he progresses. Vice President Leatherwood commended the President and Chair for the outstanding dedication of the James Butler III Board Room. He thought the ceremony was nice and well attended. It was outstanding. Scott Keith added that it was a team effort Tristan, Heidi and himself worked diligently on getting that up. VII. COMMISSIONERS AND STAFF COMMENTS: 1. Commissioner Hall thanked the board, Chairman Stajos and Scott Keith for the condolences and thoughtful gifts. 2. Vice President Leatherwood thanked the everyone for the support for the election of Chair. 3. Commissioner Bowen shared information for being one of the representatives for the Greater Lansing Convention and Visitors Bureau. First, with business coming back, MSU graduation weekend her property sold out; and with the new hotels that have opened, her team knew there would be compression but did not expect to sell out with the added inventory. With that weekend it was so compressed that friends were trying to find last minute lodging and ended up out in Brighton. She added that they might have not sold out on every room due to staffing, but it was close. The overall occupancy was 92% which is so exciting, and the average rate was in ballpark $196.07. The success Commissioner Bowen added is that on an average Lansing is just getting back to the over $100 rate, so her take away is that it makes a difference on what you bring into the community to elevate it. There has been a lot of additional hotels and hotel types, such as the Graduate and the Courtyard that are elevating revenue opportunities for all of us. This is because when there is more selection that can charge lower rates due to no food and beverage departments, and budgets to pay has those additional and types of hotels does make a difference. The second point commissioner Bowen wanted to make is the importance in your circles when you talk to people of leisure sports, youth sports and athletics in our community. She stated that LEPFA Board of Commissioners Meeting Page 16 May 24, 2022 Scott talks a lot about associations, she added that her property would not thrive off association business. It is a good market she explained, but association and corporate would be their bread and butter but for Lansing, the weekend youth activities are of all kinds, all year round. The focus and emphasis of the CVB is that continues to be a terrific opportunity for Lansing and for our hotels to maximize the revenue and being short venues like the Summit, they appreciate how the Lansing Center has flipped itself to accommodate to youth sports and athletic competitions in our community. Overall Commissioner Bowen wanted to highlight the importance of youth sports in the community and to never downplay the events as they have benefited our community. Scott added that the Lansing Center has a dance or cheer or sports competition almost every weekend. Chairman Stajos added they travel, and they have money to spend in the community. Scott added he has been pushing for the E sports trend to take hold in Lansing. VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: None X. AJOURNMENT: At 9:34 a.m. the regular monthly meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: TUESDAY, June 28, 2022 8:00 a.m. LOCATION: Lansing Center- Governors Rooms Respectfully submitted, Kasey McFadden, Recording Secretary