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HomeMy WebLinkAbout3.18.25 LEPFA Board of Commissioners Meeting MinutesLANSING ENTERTAINMENT & PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING MINUTES March 18, 2025 At 8:06 a.m. Secretary/Treasurer Paul Collins called the monthly meeting of the LEPFA Board of Commissioners to order in Hall B located at the Lansing Center; 333 East Michigan Avenue; Lansing, Michigan 48933. COMMISSIONERS PRESENT: Paul Collins, Kenric Hall, Dustin Howard, Larry Leatherwood, Danielle Lenz, Charles Mickens, Charles Randall (Ex-Officio), and Rawley Van Fossen (Ex-Officio). COMMISSIONERS ABSENT: Desiree Kirkland (Ex-Officio), Danielle Lenz, and Maureen McNulty-Saxton OTHERS PRESENT: Mindy Biladeau, Heidi Brown, Kirby Doidge, Kasey McFadden, Paul Ntoko, and Tristan Wright - Lansing Entertainment & Public Facilities Authority; Joe Abood -Lansing City Attorney’s Office; Julie Pingston and Kristy Doak- Choose Lansing; Mark Ellis- Lansing State Journal; Christian Corey- Spartan Newsroom; Andrew Roth- WKAR; and Jack Alexander- Public. I. CALL TO ORDER ll. ESTABLISHMENT OF THE AGENDA: Commissioner Larry Leatherwood, with input from Commissioner Kenric Hall, noted that the text for the Strategic Committee appears unusually large on Apple devices, causing display issues, when printing it is corrected. There were no changes to the agenda. Motion was made to approve the agenda as presented. MOTION: Commissioner Larry Leatherwood SECOND: Commissioner Charles Mickens. MOTION CARRIED Ill. PUBLIC COMMENT: Kristy Doak from Choose Lansing, Director of Sales for the Lansing Center, provided a brief update on sales activity. The team continues efforts to secure rotational business, including groups such as the Michigan Township Association and gymnastics events like LR Productions. They are also actively prospecting off-season opportunities for January, July, and August, focusing on industries such as agriculture, SMERF (social, military, educational, religious, and fraternal), and workforce development groups. Notable potential events include the Michigan War State Wrestling Championship (January), a Scottish Highland dance competition (July 2028), and several fan conventions (e.g., Magic Con, Furry Con). Collaboration has begun with the Courtyard by Marriott’s Director of Sales to co-prospect group business that benefits both downtown hotels and the Convention Center. Upcoming high-stakes site visits include the Council of Michigan Foundations (October 2027), currently being considered alongside Detroit, the United Dairy Challenge (March 2027), and the CTI Symposium USA (May 2026). lV. APPROVAL OF THE FEBRUARY 25, 2025, MINUTES: Motion was made to approve the meeting minutes for the February 25, 2025, meeting as presented. MOTION: Commissioner Kenric Hall SECOND: Commissioner Dustin Howard. MOTION CARRIED V. REPORTS: A. CHAIRMAN’S REPORT: Secretary/Treasurer Paul Collins noted items for today’s meeting 1. Financials Review: February 2025 2. Review/Approve Contract for Replacement for the Irrigation System (9 Holes) 3. Personnel Committee Updates 4. Strategic Committee Updates LEPFA Board of Commissioners Meeting March 18, 2025 P a g e | 2 B. FINANCE COMMITTEE- Finance Committee Chair Paul Collins reported the committee met and he deferred the report to Kirby Doidge to report on February 2025 Financials as follows: 1. Financial Review: i. Lansing Center- Kirby presented the Lansing Center’s February financial report. Building rental generated $110,000, and corrected food and beverage revenue totaled $440,000. Equipment rental and labor services also contributed positively, with labor services exceeding budget by $18,000. Total February revenue reached $681,000—$75,000 above budget—though year-to-date revenue remains $346,000 below projections, due to timing and a returning mix of business. On the expense side, February came in $23,000 under budget. While utilities were higher due to colder weather, savings were seen in other areas. Salaries and wages are currently over budget year-to-date, largely due to retiree payouts early in the year. However, event-related expenses remain $104,000 under budget, which aligns with lower revenue activity. Additionally, food and beverage purchases, despite being high in February, are still $132,000 under budget year-to-date. Overall, total expenses are $202,000 under budget. Compared to the same period last year, revenue is down $290,000, but lower expenses have led to a net year-over-year improvement of $189,000. ii. Groesbeck Golf Course- Kirby shared Groesbeck’s February financials. Simulator revenue—including public rentals, lessons, and leagues—totaled $3,400 for the month and $5,100 year-to-date, exceeding the $4,500 budget. Total simulator income is nearly $9,000, almost covering the initial purchase. Overall revenue is $77,000 above budget, driven by greens fees, cart rentals, leagues, and miscellaneous income. Expenses are $59,000 over budget, mainly due to increased staffing needs for the simulator. Bridgestone buyback of old golf balls helped offset merchandise costs, and insurance expenses of $15,030 will be reflected next month. Including non-operating revenue, Groesbeck is $17,000 ahead of its year-to-date target and remains at pace to exceed its budget for the year. Compared to last year, revenues are up approximately $60,000, while expenses are up about $100,000. This puts the net position about $50,000 behind, but Groesbeck is still at pace to exceed its annual budget, which is a strong overall performance. Charles Randall entered the meeting at 8:23 a.m. iii. Jackson Field- Salaries and benefits have been adjusted to reflect expected costs, with some funds reserved for hourly staff to prepare the stadium. Utilities remain elevated due to pre-season cleaning, but year-to-date are only $8,600 over budget. Miscellaneous expenses are $88,250, primarily due to the suite purchase shared with Choose Lansing. February expenses exceeded budget by $6,600 but remain under $22,000 year-to-date. Despite upcoming HVAC repairs totaling $100,000—funded by both excess appropriation and grants, Jackson Field remains under budget by $13,000 overall, with preparations underway for opening day. Motion was made to accept the draft financials for February 2025 as presented MOTION: Commissioner Kenric Hall SECOND: Commissioner Charles Mickens. MOTION CARRIED LEPFA Board of Commissioners Meeting March 18, 2025 P a g e | 3 2. Purchases/Approvals- Irrigation Contract: Kirby presented two quotes for replacing the front 9 irrigation system. One was $427,500 from Thielen Turf Irrigation, and the other was $190,000 but lacked key components and could increase with add-ons. The recommendation is to proceed with Thielen, who previously completed the back 9, ensuring consistency and leveraging their familiarity with the course. Other vendors declined to bid once they learned Thielen Turf was involved. The project is expected to begin in June and finish in July, with minimal revenue impact as only one hole will be closed at one time. Funding includes $171,000 from the Parks Department and $256,500 from cash reserves. Motion was made to accept contract for the replacement of the irrigation system for 9 holes at Groesbeck Golf Course as presented MOTION: Commissioner Larry Leatherwood SECOND: Commissioner Dustin Howard MOTION CARRIED C. PERSONNEL COMMITTEE- Committee Chair Larry Leatherwood reported the committee met, had discussion, and there were no action items. D. STRATEGIC COMMITTEE- Committee Chair Charles Mickens reported the committee met, had discussion, and there were no action items. E. PRESIDENT & CEO REPORT- Tristan announced that all required MLB facility updates at Jackson Field have been successfully completed, including turf replacement, net extensions, and outfield padding installation. This was a collaborative effort between the Lansing Lugnuts, staff, and hired vendors. The upgrades were finished just in time for the Crosstown Showdown on April 1 and the Lugnuts’ opening day on April 8. Work continues on final preparations to ensure the stadium is ready for the season. F. VICE PRESIDENT/STAFF REPORTS 1. Mindy Biladeau: Sales & Services- Mindy reported strong rental performance at the Lansing Center, with February contributing to a positive financial trend. The Lansing Center is currently at 96% of its rental budget for the fiscal year ending June 30. March is shaping up to be the busiest month of the fiscal year, and projections indicate the budget will be met or exceeded. Looking ahead, the next fiscal year is already at 80% of its rental budget, a promising position typically reached by August. The annual report is nearly complete and will be shared soon. Revenue is expected to turn positive against budget by May, with strong rental income continuing through spring. 2. Heidi Brown: Human Resources - Heidi provided an update on HR activities, noting that interviews for two maintenance department positions have been concluded, with offers extended and tentative start dates set for March 21 and 24. Interviews for the Event Services Manager position have also been completed, and hiring decisions are in progress. The Vice President of Operations, Sous Chef, and Receptionist, and seasonal positions have been posted. Seasonal hiring efforts are underway in preparation for upcoming events. A pension update session was held with Brunner VanGorder Financial March 6, allowing employees to ask questions and meet individually. Employee Appreciation Day took place on March 7, and the updated Summary Plan Description update is expected to be completed by April 1. LEPFA Board of Commissioners Meeting March 18, 2025 P a g e | 4 3. Paul Ntoko: Foodservice- Paul reported a strong February for food service, with momentum continuing into March. Favorable weather last week allowed for outdoor golf, with over 200 golfers playing between Thursday and Saturday, alongside strong indoor simulator usage. Preparations for the upcoming season are underway, with managers coordinating with league presidents to maintain last year's 24 leagues and potentially add a Friday night league. The first shipment of golf carts is set to arrive next week, though they will remain in storage until course conditions are suitable. Optimism remains high as the season approaches. 4. Ryan Tess: Operations- Ryan reported the completion of the Lansing Center security project, a significant milestone. While internet sales were slightly below the previous two years, strong bookings are expected in March. Preparations for Jackson Field’s April 1 opening are underway, with the team arriving early for practice and a detailed task list in progress. At Groesbeck, winter ice operations were successful, maintaining activity. With the addition of the new irrigation system, a strong spring season is anticipated. 5. Kirby Doidge: Finance- Kirby reported that a state audit will be conducted on the $1.5 million grant for Jackson Field, beginning at the end of April and lasting five days into May. Vl. COMMISSIONERS AND STAFF COMMENTS: No report. VIl. OLD BUSINESS: A. Third Party Agreement Update- The Finance Committee, in collaboration with legal counsel, is currently reviewing the third-party agreement as directed by the board. The contract remains under consideration, with discussions with ASM Global being confidential and premature at this stage. Upon completing its review and addressing questions with both ASM Global and the City, the Finance Committee will present a recommendation to the Board at an upcoming meeting. The proposed agreement includes certain expenses that will remain outside the ASM Global contract, which could potentially result in additional costs for the City of Lansing related to LEPFA. LEPFA's Vice President of Finance, Kirby Doidge, will analyze these expenses to determine their impact on the overall budget. ASM Global plans to retain all employees with at least 90% of the current staff, though final hiring decisions will be made once a contract is finalized. The city intends to maintain its existing management relationship with LEPFA, and the budgeting process will proceed as usual. The Board will review all findings and make a final decision based on this comprehensive analysis. Vlll. NEW BUSINESS: None IX. AJOURNMENT: Motion was made to adjourn the meeting. MOTION: Commissioner Kenric Hall SECOND: Commissioner Dustin Howard MOTION CARRIED At 8:49 a.m. the regular monthly meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: TUESDAY, APRIL 22, 2025 8:00 a.m. LOCATION: LANSING CENTER- GOVENOR’S ROOM Respectfully submitted, LEPFA Board of Commissioners Meeting March 18, 2025 P a g e | 5 Kasey McFadden, Recording Secretary