HomeMy WebLinkAbout2000 LEPFA Minutes LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
JANUARY 25, 2000
MINUTES
At 7:32 a.m. Chairman James W. Butler III called the meeting to order in the Governor's Room of the
Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James Butler, Tim Haggart, Charles Janssen, Ellen Jeffries, Cyril
McGuire, Kate McNenly, Donald Ristow, Charlotte Sinadinos, Dennis Sykes (Ex-Officio), Ron Wilson
(Ex-Officio) and Denise Wootton.
COMMISSIONERS EXCUSED: Robert Swanson (Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Tad Carper, William Grove, and Peter Sullivan, -
Lansing Entertainment and Public Facilities Authority; Jack Jordan and James Smiertka - City of Lansing.
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda. c--7)
IV. PUBLIC COMMENT:
There was no public comment. r)
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V. APPROVAL OF THE MINUTES OF DECEMBER 14, 1999: - -_�'_
The minutes of December 14, 1999 stand approved as presented. Motion: Commission r I- aggait
Second: Commissioner Wootton, unanimously carried. `
VI. REPORTS:
A. CHAIRMAN'S REPORT:
1. Committee Reports: Chair Butler reported the Finance Committee has met several times to
present a budget that is sound and well thought out and indicated that he believes that they
have accomplished that goal.
2. Competition: Chairman Butler noted the competition is increasing, i.e. the Holiday Inn
South is expanding and Grand Rapids is working on an expansion (Grand Rapids is
receiving legislative funding). He explained after reviewing the budget that we are in the
top three percent of facilities of our size and that the numbers that we have garnered over
the past year have been extremely healthy especially in Building Rental (over $1,000,000);
Food Service was over $2,600,000 and Equipment Rental was over $560,000. Chair
Butler noted management has done a great job, especially in controlling expenses and in
considering ways to generate more revenue, i.e. the "Golf Show," "A Taste of
Blackness," the "Boat Show" and "Common Ground" and commended staff. Butler noted
there has been a lot of creativity in identifying revenue sources, but noted we must do more
due to the competition. He noted Commissioner Ristow stated at the Finance Committee
meeting that the LEPFA budget needs a permanent funding source and perhaps we can
impact a hotel bed tax or earmark some traditional revenue funding for the Lansing Center
expansion. Butler suggested turning to the Long Range Planning Committee to look at
additional revenue sources
LEFPA Board of Commissioners Meeting
Page 2
January 25, 2000
3. CEO Physical: Chair Butler noted he would like Peter Sullivan to look into the expenses
necessary for an executive physical. Butler noted he has discussed the physical with other
CEO's and there are locations such as Burns Clinic, Mayo Clinic, which provide such
services.
4. City Council Update: Ron Wilson reported that there was a very successful and entertaining
"State of the City" message in East Lansing. Wilson noted that the Mayor wanted to stress
regional cooperation and those in attendance were very pleased with the results. Wilson noted
there is a "Downtown Blue Ribbon Committee" which is concerned with what will be done
with the vitalization of the downtown area. Also the Board of Water and Light has applied for
a grant to revamp the Ottawa Street Power Plant. In February the Board of Water and Light
and the Blue Ribbon Committee will bring a Mr. Steiner from Columbus, who is renown for
projects such as turning the power plant into an entertainment center, as well as other projects
along riverfronts. The committee is also discussing housing (second floor) and parking.
Wilson noted Council is also concerned with the Radisson Hotel and their EDC loan, as well
as the City Market and the best use of the Market land and facility due to the decrease in
business. In addition to the expansion of the Lansing Center, the Performing Arts Center and
the resources to pay for these items will be key issues. He noted there will be a press
conference at 9:00 a.m. today to kick off a petition drive regarding the ballot proposal to allow
local governments greater control. This would mean that any future legislation that would be
enacted and would affect both units of government would have to be enacted by a 2/3 majority
vote. This could affect the Board of Water and Light going regional, currently the Legislature
is considering taking over control of the Detroit Water Authority from the City of Detroit and
making it regional, which would set the tone for them to do the same in other regions such as
Lansing. Councilmember Carol Wood is on board and her focus is local neighborhood
control.
At 8:47 a.m. Ron Wilson exited the meeting.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials: Marian B. Bryant, Vice President - Finance reviewed the following
financial statements as approved by the Finance Committee for the period ending December
31, 1999:
a. Lansing City Market: Total Operating Revenue increased over last year by 24% or
$7,189. Total Building Rental is less than last year by 4% or $1,044. Total Operating
Expense decreased by 9% or $16,236 over last year. Net Income after the City
contribution as of December 31 is $25,352 and Net Income after depreciation is
$26,758. Internal Revenue coverage of expenses is 59%, last month it was 69%, and
last year it was 38%. In review of the Income Statement it was noted that Building
Rental is $4,562 compared to last year's $4,595 and year to date it is $28,495
compared to $29,539 last year, for a Total Operating Revenue of$37,011 for this year
compared to $29,823 last year. Bryant noted the difference is because we received
the first quarter of parking this year, and had not received it at this time last year.
Under Operating Expenses - Utilities are not significantly different compared to last
year, there is a less than $300 difference. Total Operating Expenses of $67,681
compared to last year's $83,917 for excess revenues over expenses of $25,352
compared to last year's $7,528. Our current ratio is 11.42 compared to 12.26 last
month and last year's 4.46.
LEPFA Board of Commissioners Meeting
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January 25, 2000
Equity in Number of Days of Operation is 376.73, compared to 439.02 last month and
186.59 last year. Total Cash at the Market has increased and is $141,806 compared
to $95,713 for the prior year for Total Assets of$151,430 compared to $107,378 last
year. Under Liabilities, Unreserved Equity has increased to $138,573 compared to
$85,098 last year. Actual Operating Revenues are over budget by 7% or $2,454.
Actual Operating Expenses are under budget by 19% or $16,333. It was noted that
although Building Rental (year to date) is slightly behind last year, it is almost$2,500
better than budget and overall Total Operating Revenues are $37,011 compared to the
budgeted amount of $34,558 for $2,453 better than budget. Utilities are right on
budget at$15,058 compared to the budgeted amount of$15,000. Marketing is under
budget at $10,671 compared to a budgeted amount of $15,252 for Total Operating
Expenses of$67,681 compared to the budgeted amount of$84,015 for $16,332 better
than budget. After adding back the City contribution and interest on bank accounts,
we are $20,578 better than budget.
b. Oldsmobile Park: Bryant reported that the Total Operating Expense decreased by 29%
or $46,274 which is attributed to the expenditure for the service drive for last year.
Net Income after the City contribution is $11,322 and Net Income after depreciation
is $24,561. Event Revenue is $401.30, which is interest on bank accounts with year
to date revenue for events at $573,897 compared to last year's $235,338. Event
expenses are $544.25, which is attributed to Fright Night. Total Year to Date
Expenses for Events are $521,416 compared to last years $198,531 and Net Income
for the month is ($142.95) which has been applied to the Event Development Fund.
Total Year to Date Revenue for Events is $52,480 compared to last year's $36,806.
Utilities are similar to last year at $22,445 compared to $22,409 for last year.
Maintenance of Facilities is at $1,947 compared to $33,527 for last year, which
included the service drive. Total Operating Expenses for year to date are $112,180
compared to $158,454 for the prior year. Including the allocation of the City
contribution and the interest on bank accounts we are at Net Revenues over Expenses
of$11,322 compared to ($26,469) last year. Our current ratio is 1.89, last month it
was 2.02 and last year it was 1.61. Our Equity in Number of Days Operation is
337.91, last month it was 400.91, and last year it was 222.06. The Total Cash is up
at$177,495 compared to the prior year's $137,362 and the Total Event Development
Fund is $132,480 compared to the prior year's $116,806. Accounts Receivable and
Accounts Payable are down compared to last year, which is attributed to the suite
renewal for last year. Unreserved Equity at Oldsmobile Park stands at $206,016
compared to $191,230 last year. Under Budget versus Actual, Actual Operating
Expenses are under budget by 27% or $42,504. Utilities are less than budget by
almost $6,800 at $22,445 compared to the budgeted amount of $29,240. Total
Operating Expenses are $112,180 compared to the budgeted amount of $154,685,
which puts us under budget at$42,504. After adding back the City contribution and
interest on bank accounts, we are better than budget by $43,258.
c. Lansing Center: Our Total Operating Revenue is less than last year by 11% or
$214,338. Total Building Rental is less than last year by 8% or $31,674. Total
Operating Expense decreased by 3% or $66,634 from last year. Net Income after the
City contribution is ($229,573) and it is ($173,330) after depreciation. Internal
Revenue coverage of expenses is 77%, it was 84% last month and 85% .last year.
Building Revenue is better than the current period for last year at $42,924 compared
to $34,377; year to date is $381,298 compared to $412,972 last year.
LEPFA Board of Commissioners Meeting
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January 25, 2000
Food and Beverage Revenue is down for the current period at $108,192 compared to
$185,532 last year which included the Foster, Swift, Collins and Smith holiday party
which impacted last year and is difficult to make up in December. Food and Beverage
for year to date for this year is $1,001,740 compared to $1,127,887 for last year and
Gross Food and Beverage Revenues are $126,000 less than last year. Year to Date net
is $341,000 for the current year, versus last year at$346,000, which is only $5,000
less than the prior year (which included Foster Swift and the Council of Michigan
Foundations). Overall, Total Operating Revenue is at $1,681,897 compared to
$1,896,234 for last year. Expenses compare positively to last year. Utilities are about
$20,000 better than last year, at $246,682 compared to $266,682 last year. Overall
Total Operating Expenses for year to date in December were at$2,188,142 compared
to $2,254,776 for last year. Our current ratio is 1.50, last month it was 1.76 and last
year it was 1.92. Our Equity in Number of Days of Operation is 31.40; it was 45.39
last month and last year it was 53.14. The Total Cash when adding in all sources of
cash including the cash, the Restricted Assets and the Restricted Assets for Operating,
the amount is $291,702 compared to $459,000 last year. Accounts Receivable are not
significantly different from last year, at $324,000 compared to $310,000 last year.
Prepaid expenses are at $131,527 which includes deposits for Act 99 equipment.
Total Assets for the current year are $1,071,937 compared to $1,133,685 last year.
Accounts Payable are up slightly compared to last year, Unearned Revenue —
Advance Rent is up at $276,649 compared to last year's $221,376 which is a good
sign. Total Current Liabilities stand at $537,127 compared to last year's $443,430.
Unreserved Equity is down compared to last year at$373,456 compared to last year's
$651,181. Actual Operating Revenues are under budget by 13% or $254,888. Actual
Operating Expenses are under budget by 11% or $269,944. Bryant noted that the
revenue overall is under budget by ($254887) however expenses are in line with
budget. Net Income is $15,055.65 better than the budgeted amount, and utilities are
under budget by $35,821. Salaries and Wages are under budget and Fringes and
Related costs are under budget. Total expenses are under budget at$269,943. After
adding back the City contribution and the interest on bank accounts we are $14,832
better than the budgeted amount.
Chair Sinadinos moved that the monthly financials for Oldsmobile Park, the Lansing
City Market, and the Lansing Center for the period ending December 31, 1999 be
received as published and further that the monthly expenses for each entity be
approved. Second: Commissioner Ristow motion carried.
2. Review of the 2000-2001 Annual Budget:
a. Cover Letter Review: President and CEO Peter C. Sullivan reviewed the proposed annual
budget for FY 2000-2001. After referencing the cover letter, Sullivan reported that based
upon the budget projections for 2001 we anticipate generating revenues of$4.4 million while
incurring expenses of$5.1 million at the Lansing Center which would result in a projected
City contribution of$579,000 (an approximate $89,000 increase as compared to FYE 2000
budget). He noted while the revenues projected are consistent with 1999 and 2000 our Food
and Beverage net revenues for 2001 are projected to increase by $74,00 or 18.2%, while Total
Operating Expenses for the Lansing Center are expected to decrease by close to $150,000 or
2.8% compared to last year's budget.
LEPFA Board of Commissioners Meeting
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January 25, 2000
Regarding Oldsmobile Park, we anticipate incurring expenses of $206,000 for 2001 as
compared to $211,000 for last year, for a 2.6% decrease due to decreases in utilities and City
assessments. In addition, we are projecting 21 non-baseball events for approximately 31 event
days consisting of concerts, sports and community events.
For the City Market in 2001 we project generating revenues of $80,620 while incurring
expenses of $170,000 resulting in a projected city contribution of $82,000 or an estimated
2.7% decrease. Peter noted the salary allocation plan put forth is identical to last year which
proposes 4.5% of designated Lansing Center management positions be allocated to the Park
(this is consistent with the auditor and the City's recommendations for the last two years). This
is based on the presentation of approximately 850 event days, attracting over 500,000 people,
for an economic impact of$7,00,000. We are also working on "Common Ground" for the
year 2000 and hope it will become our signature event for the downtown, as well as the entire
Lansing region. Using a conservative analysis we project that event to have an economic
impact of$4.1 million in its first year of operation.
b. Individual Budget Review:
1) Lansing City Market: Revenues are projected at$81,000 which is slightly more than
the 1999/2000 budget; expenses are also slightly more than last year at $171,000
which is attributed to Salaries and Wages and Utilities increasing. Decreases are
expected for Supplies and Materials, and Miscellaneous items due to the Storm Water
assessment. The bottom line is an income loss of($82,000) versus ($85,000) for the
prior year and is our request for funding to the City. This is the fourth year for a
decrease in our request for the City Market.
2) Oldsmobile Park: Total Operating Expenses are projected at $242,739 versus
$254,313 for last year and the difference is in Utilities and Miscellaneous due to the
Storm Water fee. After adding in interest income, we are projecting a loss of
($206,000) versus a loss of($211,000) last year. Peter noted we have requested more
than we actually received for Oldsmobile Park last year (we received additional
funding due to the driveway) which was $196,000. Our projected request this year
is $206,239, which is less than our request last year.
3) Lansing Center: Total Operating Revenues are projected at$4,400,000, which is down
compared to the 1999/2000 budget, which was $4,500,000. Similarly Operating
Expenses are projected at $5,150,000 which is down compared to last year at
$5,300,000. Regarding Revenue, Rental Revenue is less than last year. Food and
Beverage is projected to be consistent with last year, and Equipment Rental is also
decreased. In 1998/99 we netted approximately $1,000,000 in Building Rent, and this
year we will be close to $1,000,000. Regarding Building Rental we are hopeful to
reach the $1,000,000 and hope to secure some additional events and is why we have
budgeted $1,034,000. In 1998/99 we generated $2,600,000 in Food and Beverage
and budgeted slightly over $2,600,000 for 1999/2000 and project$2,580,000 in actual
revenue for this fiscal year. According to industry analysis for buildings less than
100,000 square feet our Rental Revenue and Food and Beverage figures are in the top
3% in the country; however, we now have additional competition from the Summit
and the MSU Pavilion.
LEPFA Board of Commissioners
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January 25, 2000
Equipment Rental has increased due to the purchase of carpet and we have also
purchased AV equipment. Signage and Promotions is budgeted higher. Labor and
Service revenues are down due to the mixture of events. Under Expenses there is a
slight increase in full-time staff as compared to budget 1999/2000 due to better
projections and positions being filled for the entire year, Fringes increased slightly,
and Utilities are constant. Repairs and Maintenance are budgeted down slightly. Food
and Beverage no longer includes the management fee due to the program being
brought in house, however we have added two positions. Total Operating Expense
is $5,145,000 versus $5,295,000, which results in a proposed City contribution of
$579,000 versus $490,000. The increase is primarily a result of our becoming a more
mature operation with more people in budgeted positions for a longer period of time,
as compared to prior years. He explained that in prior years we have had a number
of positions budgeted, but not filled. Currently we are $27,000 ahead in terms of cost
on full-time positions compared to last year and project this rate will be$65,000 at the
end of the year.
Peter noted we have secured events such as the "Golf Show" and have lost some
events to the MSU Pavilion (a Boat Show and a RV Show) and created our own Boat
Show. The RV Show previously held at the Pavilion has disbanded he believes. He
also indicated we are attempting, along with ArtCraft, to bring the Flower and Garden
Show back to the Lansing Center and we will be creative in our attempts to create new
events, i.e. "A Taste of Blackness." We continue to monitor expenses and secure new
events. A meeting will be held with the City to review our budget, and the budget has
been discussed with Bob Swanson previous to today. Peter also referenced the
"Budget Assumptions and Descriptions," which goes into greater detail.
Peter noted the "Salary Allocation Plan" proposes the same percentages and
approximate amounts as last year. An "Events Summary" comparison was distributed
for 2001 as well; this report notes a slight decrease in revenue due to fewer concerts,
MSU Baseball, and Monthly Movies. Increases are projected for the Diamond
Classic. Peter noted Common Ground will be the difference and we will still hold
"Fiesta Del Verano," "The Symphony" and a contemporary Christian event at the
ballpark.
Commissioner Charles Janssen moved to accept the budget as stated according to the
descriptions and details and the information presented. SECOND: Commissioner
Ristow, the motion carried.
C. CHIEF EXECUTIVE OFFICER'S REPORT:
1. Union Issues: Peter reported the Union has filed for mediation on the Tech Services
agreement. At this time there is one issue and it concerns wages for part-time on call
members, this bargaining unit consists of two people. He reported we continue to wait for
proposals from the Union on the Food Services contract and the Stagehand negotiations will
begin after the previously mentioned contracts have been ratified.
2. Lansing_City Market: Peter reported that December rental revenue was down $162 compared
to December, 1998 but is still $1,300 over 1997. Occupancy was at 60%, which is down
compared to last year; however, we are still 21% ahead of 1997. In regard to recruitment
efforts we are preparing to send out information packets to potential vendors.
LEPFA Board of Commissioners Meeting
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January 25, 2000
This spring we plan to continue to focus on flowers and produce and discussions continue
with several purveyors about the possibility of leasing space at the Market, including a local
coffeehouse.
3. Oldsmobile Park: Peter noted invoices have been mailed to our founding suite holders for the
upcoming season(which is the final year of a two year extension) and we are working with
the City to renewing suite leases with the founding suite holders for an additional term of
three to five years, which we will kick off in early February or March with a breakfast
hosted by the Mayor.
Peter complimented Tad and the Marketing Department on mention in the January 5 edition
of the Lansing State Journal, they mentioned four acts that have been featured at Oldsmobile
Park that have been nominated for Grammy Awards (Contemporary Christian and Tejano
categories).
4. Lansing Center: During the month of December we hosted approximately 52 events, equating
to approximately 64 event days, with 13,400 attendees, for an economic impact of
approximately $175,000. In comparison to 1998, we were up 20 event days, and attendance
was up by 1,700 while room nights and economic impact were down. Compared to the
second quarter last year, we were about 91 event days ahead of last year, while room nights
and economic impact were up.
Sales Department Updates: Peter reported we met with the UAW folks on January 13 for a
tour and tasting and we hope to host this group on May 11. Follow up continues on an
inquiry for a holiday party for Kendall Electric in December 2000 for 600 people. Mary Kay
has confirmed for March 2001 with 3,000 attendees and this booking was a CVB lead. The
NBA Jam Van has confirmed for February 2000 in Hall C. We have confirmed a return for
a GM party for 250 people in December 2000.
Kurt Brown has joined the staff of the Greater Lansing Convention & Visitors Bureau as of
January 11 and comes to Lansing from the Novi Hilton where he was the Director of Sales.
The Lansing Center participated in three bridal shows, January 2 we participated in Bridal
World 2000 at the Lansing Center, the event had attendance of 1,200; January 16 we
participated in the Letts Bridal Show here at the Lansing Center, as well as the Bridal Show
at the Kellogg Center and received a number of leads from these shows. Peter reported Barb
Doyal, our Sales Manager will attend the RCMA conference in Dallas with the CVB in early
February.
Lansing Center Highlights for December include the Mid-Michigan Public School Academy,
December 31 FestEve was held for the fourth year with close to 4,000 attendees and was
held only on the first floor this year. FestEve events at the Lansing Center included ballroom
dancing, big band, rock,jazz and tejano music. The Lions Den Church utilized the second
floor on New Year's Eve and about 100 people attended their church service. In early
January, Michigan Nursery and Landscaping Association met with approximately 300
vendors and 4,000 attendees. January 10-12 Michigan Agri-Business was in the building;
January 13-16 the Boat Show was in all three exhibit halls and their attendance was up over
last year. January 17 the annual Martin Luther King Holiday Luncheon was held.in Hall A
with approximately 1,200 people attending, this event sold out.
LEPFA Board of Commissioners
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January 25, 2000
January 17-21 Michigan Townships Association was in the building, over 14 hotels were
utilized for this event, with 1,800 members attending and is the first time the event has been
out of Detroit in 34 years. Upcoming events include Michigan Veterinary Conference on
January 27-30; Michigan Recreation and Parks event is in house on the January 31 through
February 1. February events include the Ice Cream Show, the Deer and Turkey Show and
the Home Show.
5. Common Ground: Peter reported we continue to meet weekly with our partner, Meridian
Entertainment Group. We have made a number of offers to musical talent, but for the most
part continue to negotiate with musical agencies, we do have two acts confirmed. A press
release was distributed calling for volunteers through the media and Tad will be live on
various radio stations delivering the message. The Principle Shopping District and the CVB
have agreed to assist us as well in regard to the volunteer program. We continue our efforts
to raise sponsorship dollars. No acts will formally be announced until March, which is
predicated on who and what is secured, and tickets will not be announced until March. We
also continue to work with the various radio stations regarding tickets and currently have a
meeting set with the new Publisher of the Lansing State Journal to solidify their promotional
involvement.
6. Act 99 Financing: The security camera's are up and the computer upgrades have been
accomplished and the final item is the marquee, which will require bids.
E. PERSONNEL COMMITTEE REPORT:
Committee Chairman Cyril McGuire reported the Personnel Committee has met on several
occasions and has taken action on a bonus and a percentage salary adjustment for the President
and CEO. A meeting will be scheduled with the CEO, the Chairman of the Board and the
Personnel Committee Chairman to facilitate signing of documents. The report was approved
as submitted.
F. LONG RANGE PLANNING COMMITTEE: Committee Chair Charles Janssen reported the
committee has not met since the December board meeting, however a meeting will be held this
month to make a determination and adopt some preliminary recommendations as to how we
should address the competition issue, how to move forward with the study on the Center, and
how to proceed with either a timetable or alternative means of financing the expansion.
Chairman Butler requested that a position in reference to the competition be developed. Butler
noted the basis for his request is that in his discussions with Council, they are expecting a
position from LEPFA referencing the impact of the competition to assist them as to how they
should embrace and support LEPFA's position.
VIII. COMMISIONERS COMMENTS:
A. Commissioner Donald Ristow: Commissioner Ristow thanked Michael Meyers for securing
a piece of business from Cobo Hall in Detroit in June.
B. Commissioner Ellen Jeffries: Commissioner Jeffries thanked Peter and Marian for all the time
the devoted to the budget and for the hours they spent explaining the budget to the Board,
which is why the process proceeded so smoothly today.
LEPFA Board of Commissioners Meeting
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January 25, 2000
C. Commissioner Kate McNenly: Commissioner McNenly thanked the Center for the wonderful
presentation for the Dr. Martin Luther King luncheon. Commissioner McNenly also
expressed her concern regarding the developing Lansing area competition. She also questioned
the status of the Lansing Center expansion plans. Commissioner Ristow concurred with
Commissioner McNenly and noted that we need to expand the Lansing Center and we need
to move with a rather rapid timetable because soon Grand Rapids will be expanded which will
again increase the competition. Ristow noted that the members of the Board have a serious
fiscal responsibility to the Authority, which in essence is a holding company that oversees
separate business entities that need to be run as a business. Ristow noted we are dependent
upon City government to help make up the difference of our budget/shortfall each year in
order to run a successful operation which in turn generates millions of dollars in revenue for
the Community. He also noted the Civic Arena is a perfect example of what can happen when
funds are cut. He indicated that a permanent type of funding source is needed and is not
certain that the bed tax is the issue, but we need a funding source in place to be able to move
on items such as the expansion. Ristow noted management has fine-tuned the operations of
the facility and we cannot do any more than we currently are doing, the only way to improve
is to add more square footage in order to reach other markets.
Chairman Butler indicated that this issue has been discussed repeatedly and we understand that
something needs to be done, and we also must take into consideration timing, politics, and
collaboration, in reference to the long range and our partners. Butler noted that occasionally
we have to move in such a fashion to make certain everything is aligned so we don't alienate
those that do support our efforts. He indicated this is one issue that the Long Range
Committee has to deal with at a rapid pace and needs to come back with some
recommendations and suggestions so that we can move forward.
Peter noted he recently attended a CUED convention and tradeshow with Bob Swanson and
Jim Smiertka and one of the primary reasons for attending was to come up with creative ways
to develop financing for the expansion. Peter noted the issue is being considered and the
proper course would be to go through the Long Range Planning Committee and eventually
involve the CVB. He noted there has to be significant collaboration with the City and the
financing and the hotel are the greatest issues. A number of meetings have been held with
members of the Long Range Planning Committee and the City, however there is no easy
solution. He noted it is important that we continue to focus on the Long Range Planning
Committee and they need to meet regularly.
Dennis Sykes noted that it is important that he or Bob be involved in the process of the Long
Range Planning Committee. Sykes noted that he feels it is very important for the Board to
understand that although there hasn't been much discussion about the report itself, there has
been discussion as how to advance the ideas and the timing, all of which are of grave interest
and concern to the Mayor. Sykes noted the administration has been reluctant to move on any
items until General Motors made a formal announcement. Sykes noted GM's announcement
is a potential springboard for many items waiting to advance in the right environment. Sykes
noted the expansion of the Lansing Center is currently complicated by the status of the
Radisson Hotel's fifteen year old agreement with the City. Sykes noted there are additional
components to consider at this time and as well as how to strategically consider how to
navigate the various components to the public for the greatest potential for success. He
indicated none of the projects would be completed without public support and the time is now
to begin discussing how to proceed.
LEPFA Board of Commissioners Meeting
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January 25, 2000
Jim Smiertka noted that one item that did come out of the conference was that Lansing is at
a disadvantage from other communities by not using the bed tax for financing facilities such
as the Lansing Center. The conference also made it clear that the expansion of a convention
center generally also includes a hotel expansion. Smiertka explained that currently we are
locked into an agreement with the Radisson, which prevents the City from adding a competing
hotel. Smiertka indicated last December the Radisson sent notice requesting extension of the
maturity date (five years) on their obligation to the City (the principle balance is currently
$11,000,000). He noted the City responded to the request by indicating that they need to
begin to pay off the $11,000,000 over a five-year period. Smiertka noted the agreement
indicates they can request the extension, but must meet the principle and interest payments and
the City has asked for the first installment in April. Smiertka noted there are questions
regarding the legality of the agreement and it is also clear that we do not have the funding
sources that other cities have across the nation. Smiertka also noted that in regard to financing
it is clear that there is an obligation on the part of the state when one is trying to produce
facilities that service the state capital and government.
Peter noted that in his experience it is very atypical that bed tax dollars are not designated to
one of the following: an operating subsidy for the convention center; a payment for when a
convention center is built; or to finance an expansion of an existing facility. He noted we do
not receive any of the bed tax funds, neither does the City and that was the way the bed tax
was established years ago. Peter noted he has had dialog with Tom Galyon regarding this
subject and as we progress with the Long Range Planning Committee, there may be a logical
progression to do something with the bed tax funds, which is 5%. Peter indicated that it is not
atypical for some of the bed tax to come to a Center in some form or fashion. Regardless, he
noted we must identify a new funding source, which may be an increase in the bed tax, all of
which is in need of discussion at the Long Range Planning Committee meetings.
D. Commissioner Cyril McGuire: Commissioner McGuire noted he found it amazing that a hotel
that owes the city $11,000,000 calls the shots. Sykes clarified that this was not the current
administration's agreement and Mr. McGuire indicated he understood that. McGuire indicated
this situation has been ongoing, and that there have been other entities that have wanted to
build hotels in Lansing and haven't been able to due to the Radisson. McGuire noted he keeps
hearing about waiting for General Motors before we proceed, however there are entities that
aren't waiting to expand.
E. Commissioner Charles Janssen: Commissioner Janssen noted the dialog was good for him to
hear and while this is a complicated issue, we need a plan now and the committee will begin
moving forward.
F. Commissioner Denise Wootton: Wootton commented that something needs to be done in terms
of the City Market and that there seems to be a lack of direction and everyone feels like they
are in limbo, which she feels is a major reason why we cannot attract vendors. Wootton noted
it was her hope that the Long Range Planning Committee will look at all of the options and
make a decision. Wootton noted if the property is valuable, lets make a decision and do it now
because the constant threat is difficult for the vendors and a decision needs to be made in terms
of the facilities because the larger the Lansing Center gets, the weaker the Market becomes
and each time the parking is forfeited for a Lansing Center event or a baseball game it hurts
the Market and depletes a vendor's revenue by as much as 75% which makes the Market
weaker. She noted the issue needs to be addressed and a decision made.
LEPFA Board of Commissioners Meeting
Page 11
January 25, 2000
Chair Butler noted this issue will be discussed by the Long Range Planning Committee and her
points are well taken. Wootton indicated she would like to have input and noted this issue
needs to be reviewed by the vendors, LEPFA and the City in a cooperative manner.
G. Chairman James Butler: Chairman Butler questioned if we can fight the Radisson. Smiertka
noted that the Radisson clause may be invalid, and the question is how to approach this issue
and the City has taken the first step by calling the Radisson. Sykes noted the City is reviewing
the agreement, which is critical in terms of the expansion of the Lansing Center. Smiertka
reiterated one of the comments that came out of the CUED conference, which is that you do
not expand a Center unless you have the hotel in line. Commissioner McGuire questioned if
there is anywhere else that has a situation similar to ours? Smiertka noted that it is hard to
determine based on how the funding and agreements are developed.
IX. OLD BUSINESS:
No report.
X. NEW BUSINESS:
No report.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY,FEBRUARY 22 , 2000 AT 7:30
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
At 9:35 a.m. the regular meeting was adjourned.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
FEBRUARY 22, 2000
MINUTES
At 7:35 a.m. Chairman James W. Butler III called the meeting to order in the Governor's Room of the
Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James Butler, Tim Haggart, Charles Janssen, Ellen Jeffries, Donald
Ristow, Charlotte Sinadinos, Ron Wilson (Ex-Officio) and Denise Wootton.
r—_
COMMISSIONERS EXCUSED: Cyril McGuire, Kate McNenly, Robert Swanson (Ex-Officio), and
Dennis Sykes (Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Tad Carper, William Grove, and Peter Sullivan;:-
Lansing Entertainment and Public Facilities Authority; James Smiertka - City of Lansing. r ,
r�r
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda.
IV. PUBLIC COMMENT:
There was no public comment.
V. APPROVAL OF THE MINUTES OF JANUARY 25, 2000:
The minutes of January 25, 2000 stand approved as presented. Motion: Commissioner Sinadinos
Second: Commissioner Ristow, unanimously carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
1. Committee Reports: Chairman Butler reported several budget review meetings took place
including the Feb. 7°i meeting, which included Bob Swanson. A meeting also took place on
February 9`' with the Mayor and staff. Chair Butler thanked the Board members that were
able to attend the meeting, noting that they made a difference and the Mayor understood
our position and showed a level of support. He also had the opportunity to state how he felt
about the budget and the level of sincerity and hard work that went into creating such a
budget.
2. Personnel Committee: Chairman Butler noted that several items were discussed at their
meetings and Denise Wootton will report for Committee Chair Cyril McGuire who is
unable to attend today's meeting due to a Doctor's appointment.
3. Long Range Planning Committee: Chair Butler noted this Committee met as well and
Committee Chair Janssen will provide an update.
4. Lansing State Journal Article: Chairman Butler distributed an article from the February 21
edition of the Lansing State Journal noting Commissioner Charles Janssen has been
appointed to the Executive Board for Foster Swift. He extended his congratulations to
Commissioner Janssen.
At 7:40 a..m. Ron Wilson entered the meeting.
LEPFA Board of Commissioners Meeting
Page 2
February 22, 2000
5. Travel: Chair Butler distributed a pamphlet from his recent trip to Seoul Korea (he was a
presenter at an international conference which was a joint venture between MSU, the Korean
University, the State Department and several different entities).
6. Commissioner Donald Ristow's Departure: Chairman Butler noted one of our premiere Board
members is leaving and this will be addressed at the conclusion of the meeting.
7. City Council Update: Ron Wilson noted the Council agenda was light this month, and a topic
was remote starters and it was noted that those with remote starters can now legally operate
their vehicle without being in the car. Many citizens were on hand to comment regarding the
Superintendent of School's position and the Neighborhood Groups. Chief Johnson's resignation
to head the Department of Corrections for Mississippi was also discussed.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials: Committee Chairman Charlotte Sinadinos reviewed the following financial
statements as approved by the Finance Committee for the period ending January 31, 2000:
a. Lansing City Market: Total Operating Revenue increased over last year by 14% or
$5,922. Total Building Rental is less than last year by 3% or $1,121. Total Operating
Expense decreased by 15% or $13,286 over last year. Net Income after the City
Contribution as of January 31 is $30,279 and Net Income after depreciation is
$31,792. Internal Revenue coverage of expenses is 65%, last month it was 59%, and
last year it was 48%. In review of the Income Statement it was noted that Total
Operating Revenue is $47,466 compared to the prior year's $41,544 due to the receipt
of two quarters of parking compared to one quarter. Utilities for year to date are
$18,334 and are very close to the prior year's $18,115. Marketing is $12,294
compared to $19,996 for the prior year, which is a timing issue. Operating Loss for
year to date is $30,792 compared to $49,999 for the prior year. Our current ratio is
22.01 compared to 11.42 last month and last year's 7.06.
Our Equity in Number of Days of Operation is 394.24, compared to 376.73 last month
and 222.49 for last year. Our current year's Accounts Receivable are $11,171 and
Total Accounts Receivable are $15,805 which includes parking. Unreserved Equity
is $143,500 compared to $94,731 for the prior year. Budget vs. Actual Operating
Revenues are over budget 6% or $2,494 and Actual Operating expenses are under
budget by 21% or$18,691. Total Operating Revenue variance for the current period
is $40 and our year to date variance is better than budget by $2,493.50. The Total
Operating Expenses year to date variance better than budget is $18,691. After adding
back in the City Contribution and interest, we are better than budget by $23,225.
b. Oldsmobile Park: Total Operating Expense decreased by 26% or $46,539 which is the
expenditure for the service drive for last year. Net Income after the City Contribution
is $14,596 and Net Income after depreciation is $30,300. Event Revenue is $403.78,
which is interest accrued for Event Income of$378.78, which was added to the Event
Development Fund. Under Event Expenses, Salaries and Wages year to date are
$27,791 compared to $33,422. Utilities are slightly under for year to date at $27,570
compared to $28,759 last year. The year to date Operating Loss is $129,144
compared to the prior year's amount of$175,576. Sinadinos noted event expenses last
LEPFA Board of Commissioners Meeting
Page 3
February 22, 2000
year was $9,499, which was due to ice skating. The bottom line for year to date,
revenues over expenses after adding in the City Contribution allocation and interest
is $14,595 compared to the prior year's ($24,693). Our current ratio is 1.75, last
month it was 1.89 and last year it was 1.46. Our Equity in Number of Days Operation
is 348.92, last month it was 337.91, and last year it was 225.09. The Total Cash
position exceeds the prior year's $137,404 compared to $129,330. Accounts
Receivable are down at $105,931 compared to $146,109. Accounts Payable are
lower compared to last year at$97,521 compared to $161,436 which is attributed to
the suite renewal for last year. Unearned Revenue -Sponsorships is $8,000 and is for
HolywaHooza. Under Budget versus Actual, Actual Operating Expenses are under
budget by 28% or $49,174. Year to date variance for Event Revenues is $265,640;
under Expenses, Salaries and Wages are ahead of budget by $6,832, which again is
attributed to timing. The bottom line Event Income variance is $27,859 better than
budget.
c. Lansing Center: Our Total Operating Revenue is less than last year by 5% or
$106,340. Total Building Rental is less than last year by 7% or $35,468. Total
Operating Expense decreased by 2% or $50,519 over last year. Net Income after the
City contribution is ($122,909) and it is ($56,581) after depreciation. Internal Revenue
coverage of expenses is 84%, it was 77% last month and 86% last year. Building Rent
is close to the current period for last year at$96,765 compared to $100,559. Year to
date is less than $35,000 difference ($478,063 versus $513,531).
Food and Beverage Revenue is at $288,948 compared to $203,949. Total Operating
Revenue for the current period is $489,211 compared to $381,213 for last year.
Sinadinos noted because our expenses were much less by comparison to our Operating
Revenues, our year to-date food and beverage to the Center is $139,422 which is
better than our best year previously which was in 1997 at$114,523. Under Operating
Expenses - Salaries and Wages are up $109,115 compared to the prior year's
$104,486 and year to date is $752,891 compared to $734,876 (which is comprised of
full time labor) and compared to last year, full time labor is up $33,516. Utilities are
down for year to date at $290,436 compared to the prior year's $318,885. Total
Operating Expenses for the current period are $405,514 compared to $392,880 and
year to date are $2,597,137 compared to $2,647,656 for last year. Our current ratio
is 1.58, last month it was 1.50 and last year it was 1.89.
Our Equity in Number of Days of Operation is 39.75; it was 31.40 last month and last
year it was 54.49. Cash Equivalents are $302,438 compared to the prior year's
$321,049. Accounts Receivable are at $285,192 compared to $372,526 last year.
Unearned Revenue - Advance Rent is at $289,299 and is up about $80,000 over the
prior year's $209,520 which is a good sign for upcoming events. The Act 99
Equipment Liability for the current year is $161,354. Unreserved Equity is down
compared to last year at$480,120 compared to last year's$671,043. Actual Operating
Revenues are under budget by 8% or$185,733. Actual Operating Expenses are under
budget by 10% or $283,978. Sinadinos noted Total Operating Expenses are ahead of
budget, Salaries and Wages are $37,000 better than budget for full time labor, and
utilities are better than budget at $39,151. Food and Beverage is ahead of budget at
$56,321 and is due to the Management Fee change. Total Operating Expenses are
ahead of budget by $283,978, for a bottom line after the City Contribution and interest
on bank accounts variance of$97,358.
LEPFA Board of Commissioners
Page 4
February 22, 2000
Chair Sinadinos moved that the monthly financials for Oldsmobile Park, the Lansing
City Market, and the Lansing Center for the period ending January 31, 2000 be
received as published and further that the monthly expenses for each entity be
approved. Second: Commissioner Ristow motion carried.
C. CHIEF EXECUTIVE OFFICER'S REPORT:
1. Union Issues: Peter reported the Food and Beverage union proposal has been received and
is under review. The Union filed for mediation regarding the Tech Services contract based
on one item that pertains to the hourly part time wages.
2. Lansing City Market: Peter reported that January rental revenue was up $2,322 compared
to January, 1999 but is still $1,200 over 1998. Occupancy was at 65%, which is up 4%
compared to this time last year; and we are 19% ahead of 1998. In regard to recruitment
efforts we are preparing to send out information packets to potential vendors and our
recruitment efforts continue on meat, flowers and produce vendors. Mark Ter Haar, our
Market Manager recently attended the 33`d Annual Convention of Vegetable Growers in
Grand Rapids, and he attended several workshops.
We have been working with the Vendor's Association on Market Beautification and ways to
make it easier to shop. Beautification includes signs for the courtyard and painting the
women's restroom. Plans also include enhancing the landscaping and improvements to the
exterior.
3. Oldsmobile Park: Peter noted we continue to follow up on invoices that have been mailed to
our founding suite holders and plan to work with the Mayor and the City on formulating a
plan to renew founding suite holders and sponsors through a breakfast in the next 30-40 days
at the Lansing Center.
4. Lansing Center: During the month of January we hosted approximately 54 events, equating
to approximately 65 event days, with 18,500 attendees, creating 5,900 room nights, for an
economic impact of approximately $1,300,000. In comparison to January 1999, we were up
in the number of event days, down slightly in attendance, with about 4,000 more room
nights. The economic impact was up about $600,000 and the changes are attributed to the
mix of events.
Sales Department Updates: Follow up continues on an inquiry for a holiday party for Kendall
Electric in December 2000 for 600 people. The Sales Department met with the Pentecostal
Church — Michigan District Youth Committee regarding a holiday youth convention in
December for 1,500 people, a decision is expected by the end of the month. Confirmed
business includes the Michigan Art Education for October, 2002 for their annual conference;
and the UAW confirmed for May 11 for approximately 1,800 people. The State Employees
Credit Union confirmed a December holiday party for 300 people. The Pentecostal Church
confirmed a banquet in June for 400 people and J. Crew will be returning in November.
Carol Trace has joined the staff of the Greater Lansing Convention & Visitors Bureau as
Convention Sales Account Exec and comes to Lansing from the Novi Hilton. Peter also noted
a long-time Sales Manager from the Radisson, Katie Creager has resigned. Our Sales
Department attended the RCMA conference in Dallas with the CVB in early February.
LEPFA Board of Commissioners Meeting
Page 5
February 22, 2000
Lansing Center Highlights for January include the Michigan Veterinarians Association;
Michigan Waterworks; Michigan Pork Producers; Great Lakes Ice Cream and Fast Food
Association; Motorcycle Swap Meet; Professional Cooks and Chef's Association Annual
Awards Banquet which is their banquet for outstanding achievement in the mid-Michigan area
(our own Chef Hadley received the lifetime achievement award). The Daddy Daughter Dance
sponsored by Lansing Parks and Recreation Department was held with 150 young girls and
their guests attended the event, which continues to grow (they are looking at increasing their
ballroom space next year). Our most successful gateshow, the Michigan Deer and Turkey
Spectacular was held in the weekend of February 11-13 and we recently hosted the Home
Show as well as the Bea Christy Awards. Upcoming events include Michigan Buggy
Builders, Michigan Association of Broadcasters, Michigan Floral Association, Michigan
Science Teachers, the Sportfishing, Boat and Travel show in mid-March as well as the Golf
Show.
5. Common Ground: Peter reported we continue to meet regularly with our partner, Meridian
Entertainment Group on Mondays. He noted there is nothing new to report regarding
performers (pending the Grammy Awards); however, we have signed a number of acts. The
call for volunteers continues, and while the response has been slow, we are not disenchanted
because acts have not been announced. WMMQ continues to air our call for volunteers, and
Tim Barron is a great supporter of the event. Currently we have a spot on City TV as well
articles in the The View and the Lansing State Journal and he and Kevin Meyer will be
making presentations to a number of groups and/or service organizations to discuss
opportunities for the various groups. Efforts continue to raise sponsorship dollars and they
are positive. Peter noted he also continues to work with the Mayor regarding securing GM
as a sponsor. Discussions also continue with City Department Heads to refine their budget
estimates for "Common Ground" and meetings continue with radio and television stations and
their response has been very positive. A productive meeting was also held with the new
Editor of the Lansing State Journal and we are awaiting their response regarding promotional
considerations.
6. Budget Comments: Peter commented that during the past several weeks we have met with
Bob Swanson and staff, and following that meeting the same individuals met with the Mayor.
We are being asked to make a cut within the Lansing Center budget, which may cause some
budgetary stress in 2001 in personnel expenses. Our response was that we continue to mature
as an organization and therefore the surpluses will continue to decrease, which will be
discussed with the Finance Committee. The City has committed to us that if we have to ask
Council for more personnel monies at the end of the fiscal year, they will support us. It was
also stressed by the City that this is not uncommon in that the City does not 100% fund their
personnel line item due to movement throughout the year, however, we will continue to
mature and will not have the same movement as the City. Additionally, we are launching
"Common Ground" with no additional positions.
Commissioner Ristow noted the Authority concept was the best idea developed and is
primarily a holding company to oversee the three entities and the dollars that are generated
in this community through the Authority are astronomical and the Authority's impact upon
the community is hidden. Ristow noted when times are tough the Authority is the target for
cuts and as such we have to be pro active.
LEPFA Board of Commissioners
Page 6
February 22, 2000
Peter commented that in general we are treated as a City Department, and he will always
maintain that we are a little different, and ask that when there are concerns that there are very
good reasons and ask that people do not forget how much we've given back over the past
couple of years. People must also remember our economic impact and therefore we must be
viewed somewhat differently. He also noted that we have reduced our subsidy for three years
straight, and considering our competition in the last two years and how we have maintained
our revenue, we have an extremely positive story to tell. Peter noted he has indicated in the
past that there may come a time when we are unable to continue to present reductions unless
things such as an expansion take place or a separate funding source is established and those
conversations are underway (i.e. the expansion and Performance Arts studies). Ron Wilson
noted the reason behind the reviews is that the City has had a 20% increase in insurance rates
and they are still in negotiations with the Fire Department and two other bargaining units as
well. A 1.9% non--personnel expenditure growth restriction on personnel has also been
implemented by City Council last fall.
At 8:20 a.m. Jim Smiertka entered the meeting.
Ellen Jeffries noted in the meeting with the Mayor he did bring up the issue of the health
benefits and did note that the City's benefits are much higher than the State's and ours. Chair
Butler indicated to Commissioner Ristow that he felt at the budget review meeting that we
were very pro active and also indicated that we did not want to be considered as a regular
department and asked the Mayor not to penalize us for thinking outside of the box.
D. PERSONNEL COMMITTEE REPORT:
Denise Wootton reported that the Personnel Committee met on February 10 and addressed two
items, the Educational Assistance policy and the Salary Range guidelines. Committee member
Wootton noted there would a report presented at the next Board meeting.
E. LONG RANGE PLANNING COMMITTEE• Committee Chair Charles Janssen reported the
committee met and discussed the expansion as well as issues that relate to the expansion.
Discussion also took place regarding the Market and it was decided that Board members should
update themselves on the Market Report and may request that the Committee reconvene at
some point. Expansion was also discussed and the following conclusions were made: First,
it is important to complete the study and footnotes so that it is available. Secondly, setting a
meeting with the CVB to discuss our mutual interests in the near future; and third, the
computation of data on how other Centers are financed/expanded using taxes, etc. to be
compiled by staff so that we may review our options and move forward. Janssen noted the
Committee is committed to meeting regularly. Peter noted he and Tom Galyon and have had
positive discussions regarding other funding sources and how to move forward. Peter noted
he looks forward to further discussion between the two entities.
VII. COMMISIONERS COMMENTS:
A. Commissioner Charlotte Sinadinos: Sinadinos noted that at the budget meetings she felt it was
significant that a number of people attended to support Peter and his presentation. Peter
thanked the Commissioners who were asked to attend and came and noted that he felt it
showed that the Board is informed and that they care.
LEPFA Board of Commissioners
Page 7
February 22, 2000
B. Commissioner Charles Janssen: Commissioner Janssen noted a newspaper article regarding
the Novi Center expansion and he questioned how it impacts on us? Peter noted it can be
positive and/or negative and Novi has helped us and hurt us i.e. they do a good job of handling
all their consumer shows and are consumer show driven. Peter noted Artcraft has worked on
a number of shows in Novi and noted he is working with Barry Freed on developing a number
of shows in Lansing, i.e. a custom car show.
Commissioner Janssen thanked Don Ristow for all his work and support. He noted that Mr.
Ristow clearly comes to mind as a role model, in that he is the tireless worker and is always
sending notes of encouragement and was a great mentor and always was very helpful. Janssen
noted that through the entire process he always put LEPFA first and he wished Mr. Ristow
well in Florida.
C. Commissioner Denise Wootton: Commissioner Wootton commented that it is very pleasant to
serve on a Board that doesn't have friction and animosity and noted that the members deserve
credit for working in a professional manner.
D. Tad Carper: Tad distributed posters for volunteers for "Common Ground" which elaborated
on how to become a volunteer. Tad explained that the reason for the "Beavers," "Ideas at
Work," and "Melting Moments" logos is to provide brand equity in the market and is a way
to showcase the early sponsors.
E. Chairman James Butler: Chairman Butler noted Commissioner Ristow has done an outstanding
job and noted that he was a part of the old Board, the new Board, part of the Transition Board
and our present Board. Butler noted Ristow has been totally committed to LEPFA from the
beginning, and his level of enthusiasm and creativity are second to none, and he has been a
great leader and willing to share information. Butler noted he has served the Commission
extremely well, and we will all miss him and wished him success and fun in the sun.
Peter reflected on Mr. Ristow's kindness to him during the interview process as well as the
benefits he has derived from his leadership during the first two years. Peter noted his bridge
ability between our Board and the CVB's will be hard to replace and he thanked him for his
boundless energy and assistance during initial discussions between LEPFA and the City, and
City Council as well and his participation and drive in the City Market study. Peter noted
Commissioner Ristow cares and is committed and he indicated he will miss him as well as
Jeanette and wishes for good luck and good fortune were extended. Gifts were presented to
Commissioner Ristow on behalf of the Board and Staff.
Chair Ristow commented that it is time to have younger people guiding the organization
moving forward and looking forward to new chapters in his life. He noted the Mayor
approached him with the concept of the Authority and his vision and he felt it was a great idea
to have a "business concept" and it has proven to be very successful. He noted it takes
wonderful people who work together and are team players and are pro active. Ristow noted
the Board has wonderful challenges ahead and wished that he could stay long enough to see
the expansion through. He noted that this organization needs to examine additional funding
sources. The competition will continue to be tough and we cannot sit back on our laurels. We
need to look 5-10 years ahead and he is grateful to have been a part of the organization. He
thanked the Board for their support, and extended his gratitude to the Mayor and the Council.
He noted it is a great organization with a great future.
LEPFA Board of Commissioners
Page 8
February 22, 2000
XIII. OLD BUSINESS:
No report.
IV. NEW BUSINESS:
No report.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, MARCH 28 , 2000 AT 7:30
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
At 8:55 a.m. the regular meeting was adjourned.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
f" BOARD OF COMMISSIONERS MEETING
MARCH 28, 2000
03
MINUTES
,At.7:35 a.`m.-Vice Chairman Ellen Jeffries called the meeting to order in the Governor's Room of the
Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: Charles Janssen, Ellen Jeffries, Cyril McGuire, Kate McNenly,
Charlotte Sinadinos, Dennis Sykes (Ex-Officio), Ron Wilson (Ex-Officio) and Denise Wootton.
COMMISSIONERS EXCUSED: James Butler III, Tim Haggart, and Robert Swanson (Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Tad Carper, William Grove, and Peter Sullivan, -
Lansing Entertainment and Public Facilities Authority; James Smiertka- City of Lansing.
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda.
IV. PUBLIC COMMENT:
There was no public comment.
V. APPROVAL OF THE MINUTES OF FEBRUARY 22, 2000:
The minutes of February 22, 2000 stand approved as presented. Motion: Commissioner Janssen
Second: Commissioner Sinadinos, unanimously carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
1. City Council Update: Ron Wilson reported that the Council passed the ordinance dealing with
the seizure of cars of individuals that solicit prostitution, it was enacted unanimously and had
immediate effect and will be handled primarily in sting operations; however officers are able
to make arrests as well. A public hearing was also held on the "425 Agreement" with GM and
it went extremely well, a press conference followed. This morning the Development and
Planning Committee will be adopting the "425 Agreement." The Mayor also delivered his
budget message and there weren't many additions to the budget. Budget hearings will begin
this Thursday and LEPFA's hearing will be held on Thursday, April 13 in Council Chambers
at approximately 3:45 p.m.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials: Committee Chairman Charlotte Sinadinos reviewed the following financial
statements as approved by the Finance Committee for the period ending February 29, 2000:
a. Lansing City Market: Total Operating Revenue increased over last year by 13% or
$5,904. Total Building Rental is less than last year by 3% or $1,140. Total Operating
Expense decreased by 15% or $15,534 over last year. Net Income after the city
contribution is $29,553 and Net Income after depreciation is $31,167. Internal
Revenue coverage of expenses is 62%, last month it was 65%, and last year it was
47%. In review of the Income Statement it was noted that the current period Building
Rental is $3,648 compared to $3,666 for the prior year; and for year to date it is
$35,702 and was $36,842 last year.
LEPFA Board of Commissioners
Page 2
March 28, 2000 Total Operating Revenue year to date is $51,149 which exceeds the prior year's total
of$45,246 which includes two quarters of parking revenue compared to last year's
one quarter. Under Operating Expenses - tear to date, Salaries and Wages are at
$28,756 compared to $33,665 for the prior year. Utilities are less than last year at
$20,750 compared to $21,331 for last year. Marketing for year to date is $14,032
compared to $22,477 last year (the difference is attributed to timing). Operating
Expenses year to date were $87,705 compared to $103,239 for last year. Our current
ratio is 12.3 compared to 22.01 last month and last year's 4.8. Our Total Cash
position for the current year is $142,720 compared to $105,368 for last year. Total
Accounts Receivable for the current year are $4,582 compared to $1,000 for the prior
year. Furniture, Fixtures and Equipment are $13,212 compared to $11,039 for Total
Assets of$154,825 compared to $114,586 for the prior year. Liabilities - Accounts
Payable are $6,429 compared to $16,039, and Unreserved Equity is $142,774
compared to $92,231. Actual Operating Revenue is over budget by 6% or$2,859 and
Actual Operating Expenses are under budget by 20% or $21,837. In comparison of
Budget vs. Actual, Building Rental is $35,702 and $32,483 was budgeted for a
variance of $3,219. Total Operating Revenues are ahead of budget by $2,858.
Salaries and Wages are $28,756 compared to $33,688 (budgeted) for a variance of
$4,931 which is a timing issue regarding a maintenance position. Total Operating
Expenses are better than budget by$21,837; and after adding the city contribution and
interest, we are better than budget by $26,972.
b. Oldsmobile Park: Total Operating Expense decreased by 24% or$48,799. Net Income
after the city contribution is $24,036 and Net Income after depreciation is $41,754.
Event Revenue is $401.74, which is interest on bank accounts for Event Expenses of
$25 which were bank fees, for an Event Income of$376.74, which was added to the
Event Development Fund. Under Event Expenses, last year's current period was
$2,079, which was attributed to ice skating. Utilities are down for the current period
and year to date, and Maintenance of Facilities is down from $34,017 under year to
date for an Operating Loss year to date of($150,713) compared to the prior year's
($199,405) and after adding in the city contribution and interest (year to date) net
income is $24,036 compared to the prior year's ($29,548). Our current ratio is 1.99,
last month it was 1.75 and last year it was 1.53. Our Equity in Number of Days
Operation is 355.22, last month it was 348.92, and last year it was 216.99. The Total
Cash position of $135,609 exceeds the prior year's $119,163. The Event
Development Fund is $133,236 compared to the prior year's $106,129. Accounts
Receivable are down for the current year at$81,276 compared to $112,989 for Total
Assets of$397,148 for the current year compared to$402,706. Unreserved Equity for
the current year is $219,486 compared to the prior year's $177,473. Budget versus
Actual, our Operating Expenses are under budget by 25% or $50,728. Our Net
Revenue for events has a variance better than budget of$266,042. Sinadinos noted
most of the line items are ahead of budget such as Salaries and Wages, for an
Operating Income variance better than budget of $61,866 after adding in the city
contribution and interest for year to date.
c. Lansing Center: Our Total Operating Revenue is less than last year by 3% or $86,624.
Total Building Rental is less than last year by 4% or $24,818. Total Operating
Expense decreased by 2% or $63,531 over last year. Net Income after the city
contribution is $16,690 and is $92,870 after depreciation. Internal Revenue coverage
of expenses is 90%, it was 84% last month and 91% last year. Building Rental for the
current period is $155,922 and was $145,272 last year.
LEPFA Board of Commissioners Meeting
Page 3
March 28, 2000
Sinadinos noted we had a very good month last month, using the bench march of
$500,000, we had total operating revenues of$564,188 for the month. Food and
Beverage for the current period exceeds last year at$325,346 compared to $315,783
and is slightly under for year to date. Also, Equipment Rental for year to date is
slightly under compared to the prior year. Tradeshow Utilities for year to date exceed
the prior year. Under Operating Expenses- Salaries and Wages, we are up slightly,
approximately$10,000 for the current period compared to the prior year because more
full time positions have been filled for a longer period. Year to date Salaries/Wages
are $879,125 and are down compared to budget by $69,012. Utilities are down for
year to date. Taking into account the expenses for Food and Beverage, the Food and
Beverage Net for the month of February is $155,000 and year to date the net is
$634,981 which exceeds last year's net by$100,000 and is better than budget by about
$75,000. Total Operating Expenses for the current period are $450,378 compared to
$463,915 for an Operating Income Net of$113,809.92 compared to$80,556 last year.
Our current ratio is 1.81, last month it was 1.58 and last year it was 1.97.
Our Equity in Number of Days of Operation is 49.61; it was 39.75 last month and last
year it was 61.41. Total Cash is $56,040 compared to the prior year's $124,571. Total
Restricted Assets are $421,650 compared to $411,000 last year. Total Accounts
Receivable for the current year are$440,311 compared to $500,552 for the prior year.
Prepaid Expenses for the current year are$77,122 and were$17,442 for the prior year
and includes a deposit for software, which was part of the Act 99 financing. Under
Liabilities— Unearned Revenue Advanced Rent is $285,570 and was$206,612 for the
prior year. Unreserved Equity is at$619,719 compared to $783,091 for the previous
year. Actual Operating Revenues are under budget by 4% or $126,517. Actual
Operating Expenses are under budget by 8% or $283,052. Sinadinos noted Building
Rental for year to date is $633,986 compared to $695,350 budgeted for a variance of
($61,363). Food and Beverage is under budget by approximately $30,000, Total
Operating Revenue is under budget by ($126,517). Utilities are less than budget by
$39,823. Total Operating Expenses year to date are under budget by $283,052, and
after adding the city contribution and interest we are better than budget by $154,849.
Chair Sinadinos moved that the monthly financials for Oldsmobile Park, the Lansing
City Market, and the Lansing Center for the period ending February 29, 2000 be
received as published and further that the monthly expenses for each entity be
approved. Second: Commissioner McNenly, motion carried.
C. CHIEF EXECUTIVE OFFICER'S REPORT:
1. Union Issues: Peter reported the Food and Beverage union proposal has been reviewed and
countered and we are awaiting a response. As was reported last month, the Union filed for
mediation regarding the Tech Services contract and there are no further developments.
2. Lansing City Market: Peter reported that February rental revenue was up $120 compared to
last year, and is $1,000 over 1998. Occupancy was at 61%, which is up 2% compared to last
year; and we are 16% ahead of 1998. Regarding recruitment efforts, we continue to follow
up on leads for potential flower vendors. Discussions have also been ongoing with folks who
raise range fed chickens and another vendor that grows a variety of orchids.
LEPFA Board of Commissioners
Page 4
March 28, 2000
In regard to advertising, the Vendors Association has been reviewing their recommendation
to Market management concerning promotion and newspaper advertising throughout the year
and they plan on submitting a formal recommendation following the next meeting regarding
special events. We will once again host the "Adopt A River Program" and "Neighborhoods
in Bloom" both events focus on cleaning the City. We continue to work with the Vendor's
Association to coordinate the Market's participation in "Be a Tourist in Your Own Town"
which will take place on Saturday, June 3 and we will once again serve free hot dogs. The
Tri County Iris Society is also planning to host its "Iris Show" during the "Be A Tourist . .
" event.
3. Oldsmobile Park: Peter noted we continue to follow up on invoices that have been mailed to
our Founding Suiteholders and are also organizing a "Founding Suiteholder's Breakfast"
which will be hosted by the Mayor in April and will be comparable to the dinner hosted by
the Mayor two (2) years ago. Operationally the outfield nets are up in anticipation of the
April doubleheader baseball game between LCC and Kalamazoo. Prior to the game there
will be a Hispanic youth baseball game. The Lugnuts open the 2000 season on Thursday,
April 6 at 6:05 p.m.
4. Lansing Center: During February we hosted approximately 57 events, equating to
approximately 97 event days, with 30,000 attendees, creating 1,700 room nights, for an
economic impact of approximately $745,000. In comparison to February 1999, we were up
by 30 event days, down slightly in attendance, room nights, and economic impact, which is
of interest given that our revenue was better than the prior year which is attributed to the mix
of events. The economic impact was up about$600,000 and the changes are attributed to the
mix of events.
Sales Department Confirmations: The Michigan Home Builder's Association has confirmed
dates for February 26 through March 1, 2003 and February of 2004 for their winter
convention; the Associated Male Choruses of America will host their international "Big Sing"
in Lansing in 2003, the group will utilize approximately 1000 room nights throughout the
City and will use the Breslin Center as well; the Michigan Chamber of Commerce confirmed
their environmental expo for February 2001 and will use Hall A; John Henry has confirmed
a party for December 2000, as has ICON Office Solutions. Ingham Intermediate School
District has confirmed for May 2000; Michigan Public Health has booked for May, 2000 as
well.
Proposals for new business include: Michigan Professional Fire Fighters for June 2002 and
Ohio Travel Showcase/Heartland Travel Showcase is interested in returning to Lansing in
February 2002.
Highlights included a number of annual events including: the Michigan Buggy Builders which
attracted in excess of 3,000 people; Michigan Association of Broadcasters; Michigan
Association of Science Teachers; Michigan Floral Association; Sportfishing Boat and Travel
Show; Michigan Asphalt&Paving; Lansing Golf Show; and the Mary Kay Convention was
held.
Upcoming events include: "A Taste of Blackness" on April 8; Michigan Safety Conference
on April 11; the Spartan Stores and Show Biz Talent.
LEPFA Board of Commissioners Meeting
Page 5
March 28, 2000
5. Common Ground: Peter noted we continue to meet with our partner Kevin Meyer on a
weekly basis and we continue to work on the performance aspects and will host two to three
press conferences over the next 30-50 days. The first press conference will discuss the
outdoor activities and may be held in conjunction with the announcement of our presenting
sponsor. Peter noted that through the efforts of the Mayor we have attracted GM as the
presenting sponsor, however this has not been announced to the public. The next press
conference will probably not take place until the end of April or early May and will announce
the talent; ticket sales will go on sale in conjunction with the press conference. The call for
volunteers continues to go out and we have received several applications. Peter noted if
anyone is aware of any groups that are interested in volunteering that they let him know. We
will be applying for a state grant in the next 30-60 days and meetings continue with City
Department Heads, radio And television stations regarding promotional ideas, and the Lansing
State Journal is set as well.
6. Budget Comments: Peter reported LEPFA's budget hearing is April 13, and a letter is
forthcoming regarding Board participation.
7. Ingham Regional "I Got Heart" Gallery: Peter referenced the new gallery in the pre-function
area of the Michigan Avenue concourse which is a partnership with Ingham Regional for
their "I've Got Heart Program" which is a campaign that was started a year ago. A press
conference will be held in early April.
8. Tad Career's Departure: Peter noted Tad has accepted the VP of Marketing position with
the Cleveland Cavaliers in Gund Arena and thanked Tad for his outstanding contributions to
the organization including his creativity with HolywaHooza, Fiesta Del Verano and Common
Ground. He wished Tad well in Cleveland and noted Tad will be on board through April
11.
D. PERSONNEL COMMITTEE REPORT: Committee Chairman Cyril McGuire reported a letter
was sent to the Board on March 3 regarding the Education Assistance policy, which was
reviewed several times by the Committee and has received no inquiries from Board members.
Chair McGuire noted the Committee also met twice to review salary ranges. A letter was
distributed regarding the salary ranges, which have not been reviewed since 1997. In the
Committee's review of the ranges they have adjusted them accordingly and suggest that further
review take place in three (3) years. Currently there are 30 positions due to the inclusion of
all full-time food and beverage personnel. No inquiries were received and as such Chairman
McGuire moved that the policy for exempt salary ranges for the year 2000 and the educational
policy be adopted as presented. Second: Commissioner Wootton, motion carried.
E. LONG RANGE PLANNING COMMITTEE: No report.
VII. COMMISIONERS COMMENTS:
A. Commissioner Charles Janssen: He thanked Tad for job well done and for always giving 100%
and wished him well. Commissioner McGuire second Mr. Janssen's comments.
LEPFA Board of Commissioners
Page 6
March 28, 2000
B. Tad Carper: Tad extended his appreciation of the kind comments and noted that the decision
was a difficult one for he and his family. He extended his thanks to the Authority and the
Board for their support and noted that it has been a very positive experience and they plan to
return to enjoy the area, and that the area has left its impact permanently. He thanked the
Board for their support.
C. Peter Sullivan: Peter noted a letter has been forwarded to Jack Jordan regarding in-line skaters
at the Lansing Center, which requests his assistance as it pertains to the ordinance and on ways
to stop the malicious destruction of property near the Riverwalk.
D. Vice Chairman Ellen Jeffries: Commissioner Jeffries noted that the Mayor spoke before the
Senate Appropriations Committee very diplomatically and eloquently on the Performing Arts
Center for Lansing. The Senate did add $15 million to the bill and it passed the Senate and
now we must see how the House votes, the City will need matching funds.
Jeffries noted that in Chair Butler's absence she would like to acknowledge the Board's support
of the Michigan State Spartan's in their quest for the championship.
XIII. OLD BUSINESS:
No report.
IV. NEW BUSINESS:
No report.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, APRIL 25, 2000 AT 7:30 A.M.
AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
At 8:20 a.m. the regular meeting was adjourned.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
APRIL 25, 2000
�' ? ;i MINUTES
'J .
At 7.40.a..m..Chairman James Butler III called the meeting to order in the Governor's Room of the Lansing
i , .;
Center;3-33 E.-Michigah,-Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James Butler III, Tim Haggart, Charles Janssen, Cyril McGuire, Kate
McNeely, Charlotte Sinadinos, Bob Swanson (Ex-Officio), Ron Wilson(Ex-Officio) and Denise Wootton.
COMMISSIONERS EXCUSED: Ellen Jeffries and Dennis Sykes (Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, William Grove, Michael Meyers, Peter Sullivan,
- Lansing Entertainment and Public Facilities Authority; James Smiertka - City of Lansing.
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda.
IV. PUBLIC COMMENT:
There was no public comment.
V. APPROVAL OF THE MINUTES OF MARCH 28, 2000:
The minutes of March 28, 2000 stand approved as presented. Motion: Commissioner Janssen
Second: Commissioner McGuire, the motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
1. Chairman Butler thanked Vice Chairman Ellen Jeffries for chairing last month's meeting. He
also thanked everyone for the many calls and well wishes he received regarding his April 12
knee surgery. Chair Butler commented on his wonderful trip to Indianapolis to watch the MSU
Spartans win the National Basketball Championship.
2. Peter Sullivan's Birthday: Chairman Butler also noted that April 18 was Peter Sullivan's
birthday and extended belated birthday wishes on behalf of all present.
3. March Financials: Chair Butler noted the figures and documents discussed at the Finance
Committee meeting indicated we had an outstanding month last month with $598,000 gross
revenue which is one of the best months we have had year to date.
4. City Council Update: Ron Wilson reported City Council is moving forward with locating GM
in Eaton County and are setting up the Industrial Development District which will allow for
abatements for personal property taxes and industrial property taxes. An ordinance was also
introduced regarding liquor licenses, noting a license will not be issued or transferred to
anyone with any debt obligation to the City. Commissioner Butler questioned if the ordinance
will be extended to include Economic, Brownfield Development, etc.? Ron noted it is under
consideration. Ron also noted Council is on the final stretch of the budget process and he
noted LEFPA did very well and City Council was appreciative of the LEPFA Board members
appearing with Peter, and that Peter did his homework as well and answered any and all
questions with Council members.
LEPFA Board of Commissioners Meeting
Page 2
April 25, 2000
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials: Committee Chairman Charlotte Sinadinos extended her thanks to the
Board members who were able to attend the City Council Budget Hearing, and noted that Peter
did
an excellent job and it was very positively commented on by Council members. Sinadinos
reviewed the following financial statements as approved by the Finance Committee for the
period ending March 31, 2000:
a. Lansing City Market: Total Operating Revenue is less than last year by 3% or $1,787.
Total Building Rental is less than last year by 4% or $1,543. Total Operating Expense
decreased by 14% or $15,418 over last year. Net Income after the city contribution
is $27,879 and Net Income after depreciation is $29,662. Internal Revenue coverage
of expenses is 60%, last month it was 62%, and last year it was 53%. In review of the
Income Statement it was noted that the current period Building Rental is $3,552
compared to $3,955 for the prior year.
Total Operating Revenue year to date is $55,093 which exceeds the prior year's total
of$56,880. Under Operating Expenses - year to date, Salaries and Wages are at
$33,082 compared to $37,805 for the prior year, which is attributed to timing on a
maintenance worker position. Total Operating Expenses year to date are $98,413
compared to $113,831 for last year for an operating loss year to date of ($43,319)
compared to ($56,951) for the prior year. Excess revenues over expenses after adding
in interest and the city contribution year to date is $27,878 compared to the prior
year's $21,260. Our current ratio is 23.7 compared to 12.30 last month and last
year's 6.57. Our equity in number of days operation is 394.28, last month it was
397.20 and last year it was 238.76. Our Total Cash position for the current year is
$134,857 compared to $105,574 for last year. Total Assets are $147,031 compared
to the prior years $115,323. Actual Operating Revenue is over budget by 7% or
$3,609 and Actual Operating Expenses are under budget by 20% or $25,500. Year
to date Building Rental is $39,254 compared to budget at $35,594 and as such are
better than budget at $3,660. Total Operating Revenues are ahead of budget by
$3,608. Utilities are very slightly higher than budget, Salaries and Wages are better
than budget by $5,586. Total Operating Expenses are better than budget by $25,004;
and after adding the city contribution and interest, we are better than budget by
$31,177.
b. Oldsmobile Park: Total Operating Expense decreased by 24% or $52,644. Net Income
after the city contribution is $31,006 and Net Income after depreciation is $50,598.
Event Revenue is $438, which is interest on bank accounts for Event Expenses of$25
which were bank fees, for an Event Income of$413, which was added to the Event
Development Fund. Under Operating Expenses/Salaries and Wages for year to date
we are at $36,588 compared to $43,181. Utilities are less than the prior year at
$34,214 compared to $37,942. Total Operating Expenses year to date are $164,103
compared to $216,747 for the prior year. Event Net Revenue for year to date is
$53,649 compared to $23,710 last year. Our current ratio is 2.01, last month it was
1.99 and last year it was 2.06. Our Equity in Number of Days Operation is 380.18,
last month it was 355.22, and last year it was 224.63. The Total Cash position of
$114,939 exceeds the prior year's $85,412.
LEPFA Board of Commissioners Meeting
Page 3
April 25, 2000
The Event Development Fund is $133,649 compared to the prior year's $103,710 (any
amount over $80,000 goes back to the city). Accounts Receivable are up for the
current year at$111,433 compared to $26,186 which is attributed to billing for suites
and signage. Accounts payables are at $98,751 compared to $45,398. Unreserved
Equity for the current year is $226,870 compared to the prior year's $176,893. Budget
versus Actual, our Actual Operating Expenses are under budget by 27% or $61,290.
Salaries and Wages are under budget due to the timing of the Maintenance Worker
position, and Maintenance of Equipment and Facilities were under budget as well and
is also a timing issue. Total Operating Expenses for year to date are $164,103 and are
better than budget by $61,290 after adding in interest and the city contribution our
variance ahead of budget is $72,278.
c. Lansing Center: Our Total Operating Revenue increased over last year by 3% or
$86,639. Total Building Rental increased over last year by 1% or $9,987. Total
Operating Expense decreased by 2% or $55,734 over last year. Net Income after the
city contribution is $144,864 and is $232,339 after depreciation. Internal Revenue
coverage of expenses is 94%, it was 90% last month and 91% last year. Building
Rental for the current period is $152,215 and was $117,409 last year as well as the
year to date amount of $786,201 compared to $776,214. Sinadinos noted food and
beverage for the current period is $350,583 compared to $245,520 as well as the year
to date amount of$1,966,000 compared to $1,893,000. Total Operating Revenues
which were a record$598,054 for the month compared to the prior year's $424,791.
Under Operating Expenses, Salaries and Wages exceed the prior month at$156,855
which was attributed to three payrolls in March and additional labor due to more
events. Utilities are down for the current period as well as year to date. The Food and
Beverage net for the month is $172,500 and our current year to date is $807,500.
Total Operating Expenses for year to date are$3,544,887 compared to the prior year's
$3,600,621 for an Operating Loss of$211,535 compared to the prior year's loss of
$353,909 and after adding in the city contribution and interest year to date income of
$144,863 compared to the prior years $39,127. Our current ratio is 2.24, last month
it was 1.81 and last year it was 1.96.
Our Equity in Number of Days of Operation is 58.02; it was 49.61 last month and last
year it was 57.35. Total Cash is $25,402 compared to the prior year's $166,252. Total
Restricted Assets are $433,750 compared to $423,500 last year. Total Accounts
Receivable for the current year are $475,679 compared to $391,884 for the prior year.
Total Assets for the current year are $1,390,219 and were $1,314,744 for the prior
year. Under Liabilities - Accounts Payable are down, $126,430 compared to
$202,194. Unearned Revenue Advanced Rent for the current year is $230,970 and
was $174,005 for the prior year. Unreserved Equity is at $747,892 compared to
$750,957 for the previous year. Actual Operating Revenues are under budget by 1%
or $44,320. Actual Operating Expenses are under budget by 7% or $253,367.
Sinadinos noted Building Rental is under budget by ($56,992). Food and Beverage is
ahead of budget by approximately $30,796, for Total Operating Revenue less than
budget by ($44,320). Actual Operating expenses are under budget by 7% or
$253,367. Under Operating Expenses- Salaries and Wages, we are better than budget
by $53,406; Utilities are better than budget by $37,526. Total Operating Expenses
have a variance of$253,366 ahead of budget and after adding the city contribution and
interest we are better than budget by $207,211. After deducting depreciation, we are
at $140,805.
LEPFA Board of Commissioners
Page 4
April 25, 2000
Chair Sinadinos moved that the monthly financials for Oldsmobile Park, the Lansing
City Market, and the Lansing Center for the period ending March 31, 2000 be
received as published and further that the monthly expenses for each entity be
approved. Second: Commissioner Haggart, motion carried.
C. CHIEF EXECUTIVE OFFICER'S REPORT:
1. Union Issues: Peter noted there are no developments to report. Discussions are still underway
with the Union regarding the Food and Beverage and Tech Services proposals.
2. Lansing City Market: Peter reported that March rental revenue was down a little over $300
compared to last year, and is $500 over 1998. Occupancy was at 54%, which is down about
5% compared to last year; and we are 8% ahead of 1998. In regard to Market Beautification
we have been working with the Vendor's Association on several projects to make the Market
more appealing and include umbrella stands for the courtyards, better signage, and painting
the women's restroom and installing new toilets. April 17 a spring cleaning day took place
and we continue to work on ways to make our landscape more appealing with better
placement of plants and tree trimming. Regarding recruitment efforts, two new vendors have
been signed at the Market including Randy Cobb of Creative Image, which offers
personalized items, and Steven Tommatika, which offers farm fresh eggs and produce and
are close to signing additional new vendors. Discussions have also been ongoing with folks
who raise range fed chickens and another vendor that grows a variety of orchids.
3. Oldsmobile Park: Peter noted we will be hosting a "Founding Suiteholder's Breakfast" which
will be hosted by the Mayor in the Governor's Room on Wednesday to begin the task of
resigning and committing those companies for another three (3) years. Festivities will include
a gourmet breakfast, gifts, as well as discussion of another baseball road trip to Comerica
Park on Thursday, August 24 (and similar to last year, Board members will be invited).
Opening Day crowd was 6,500 to 7,000 people, and since then the Lugnuts have had several
rainouts which will impact revenue.
4. Lansing Center: During March we hosted approximately 51 events, equating to
approximately 92 event days, with 29,000 attendees, creating 2,900 room nights, for an
economic impact of approximately $950,000. In comparison to March 1999, we hosted 15
more event days, we were down slightly in attendance, room nights were up approximately
500, and economic impact in excess of $75,000 more which is attributed to the mix of
events. In comparison of the third quarter of this year to last year we hosted 55 more event
days, attendance was down, but room nights and economic impact was up, which was
attributed to the mix of events. Peter noted at $598,000 March is a record, and a good
portion of that is attributed to food and beverage and he extended his kudos to Bill for two
great months. He noted we could generate close to $1,000,000 this year in food and
beverage.
Lansing Center highlights included the Caesar Chavez Dinner in the ballrooms with over 600
people attending on March 31 and Council member Tony Benavides was particularly
complimentary of the food. March 31-April 2 we hosted for the first time the Professional
Photographers of Michigan and close to 400 attended that event.
LEPFA Board of Commissioners Meeting
Page 5
April 25, 2000
April 2 the Mid Michigan Antiquarian Book and Paper Show drew close to 400 attendees,
April 8�'close to 2,500 people attended "A Taste of Blackness" with the featured guest being
Marshall Davis; and the MC was Damon Williams. April 11 and 12 the Michigan Safety
Conference met, with over 6,000 people attending the two-day event making it our largest
conference this year. April 14 the CVB held their "40'h Birthday Celebration" with
approximately 200 people attending. April 17-20 Spartan Stores were in the building for
their semi annual tradeshow.
Upcoming events include the Michigan School Food Service Association; Michigan
Association of Homes and Services of the Aging; Michigan Education Association and the
Information Network for Christian Homes.
Peter extended his thanks to the Board members that attended the City Council budget
hearings for taking the time from their schedules and for demonstrating that they are
knowledgeable and committed to the Authority.
5. Common Ground: Peter noted there will be a press conference on Thursday, April 27
announcing the presenting sponsor of the event at 10:00 a.m. and the media alert will be sent
out on Wednesday afternoon. The sponsor will present the Mayor with a check for $75,000
and the sponsor, Peter and the Mayor will speak. Kevin Meyer and Peter will meet with the
Lansing State Journal on Thursday morning to discuss the activities. Peter noted the talent
will be announced the second week of May and then tickets will go on sale. The call
continues to go out for volunteers and Volunteer Directors and Peter requested if anyone is
aware of any potential groups interested in volunteering to let him know. Peter noted he and
Kevin Meyer have met with a number of service organizations regarding potential
volunteering. The process of applying for a state grant has begun and it is due May 15 and
he thanked Ellen Jeffries for her help and direction. Peter noted meetings continue with city
departments to solidify logistics. Peter updated the Board of Commissioners on the Common
Ground layout, specifying the three main components, music, food, and fun outdoor
activities. There will be three stages, the main stage will be "Ground Zero," the second stage
is "Ground Effects," and the third stage will be "The Underground." Peter noted there will
be between 30 and 40 musical acts and we will handle the basic foods. There will be various
ethnic food vendors on the Grand Avenue side (10-12 vendors) and the "Playground" will
be the activity area on the east bank.
Children 10 and under are free, the common card will be a multi-day card available for all
6 days and will cost between $50 and $60. There will be an early bird special offered on
Friday, Saturday and Sunday from 11:00 a.m. to 2:00 p.m. and will cost$8. Individual day
tickets will be in between $12-$30 based upon the performer. The east side will be open on
Friday, Saturday and Sunday only. The VIP Oasis will be for sponsors. The Uncommon
Caf6 will offer a higher fare of food and will be set as a unique restaurant area.
6. Al Gore Visit: Peter reported we are preparing for Vice President Al Gore's visit on May
5 and continue to deal with the Secret Service. Barbara Bush will be in house May 18.
Chair Butler questioned the various levels of sponsorship and questioned how the Board can
be helpful in securing sponsors? Peter noted the least expensive package we offer is
$10,000, however, we have the ability to tailor packages for groups/organizations who are
desirous of being involved at lower levels.
LEPFA Board of Commissioners Meeting
Page 6
April 25, 2000
Mr. Butler suggested the dates of Common Ground might be included on the board, and
suggested there may be additional areas for in-kind services that can be provided.
D. PERSONNEL COMMITTEE REPORT: Committee Chairman Cyril McGuire noted there
were no issues before the committee.
E. LONG RANGE PLANNING COMMITTEE: Chairman Butler reported for Committee
Chairman Charley Janssen that a meeting would be set early next week and that he has
discussed the expansion and related issues with Tom Galyon and will report next month.
VII. COMMISIONERS COMMENTS:
A. James Smiertka: Mr. Smiertka reported Jack Jordan is running for District Judge and Billie
O'Berry is running for Circuit Judge.
B. Commissioner Robert Swanson: Commissioner Swanson complimented the Board and Peter
on the excellent job with the budget. He noted further that it is unusual and impressive to have
the number of Board members turnout for the budget hearing, which exemplifies the serious
consideration given to our budget, as well as the amount of work Peter does to prepare.
Chairman Butler indicated he understood that Mr. Swanson, the Mayor and Dennis Sykes gave
a presentation to the Chamber of Commerce regarding the Performing Arts Center. Swanson
noted they reviewed the proposal and the Chamber Board supported the concept and they will
be working with the Chamber to raise $25 million locally. The Center may be located across
from the stadium and may be managed by LEPFA. Swanson noted there is a long way to go
and many partners to work with, and it will have to be regionally funded which is dependant
upon the legislative tools available. Swanson noted that one of the issues is that Eaton and
Clinton counties have not supported anything previously and they are an important part of the
Lansing region, or it may be an Ingham County based situation and there are several issues
that will need to be addressed in this regard as well. Swanson noted first priority is getting
the state money, and currently there is strong bipartisan support in both the House and the
Senate.
C. Peter Sullivan: Peter noted a letter has been forwarded to Jack Jordan regarding the skate
boarders at the Lansing Center, which requests his assistance as it pertains to the ordinance.
Peter noted the security cameras are in place.
D. Chairman James W. Butler III: Chairman Butler noted he had the opportunity to attend the
"Taste of Blackness" at the Lansing Center and he felt it was extremely well done with good
food and overall it was a quality show. He noted he was in the building for the duration of
the event. Butler noted college students attended the event and there were no issues and it was
extremely well done. Peter noted the event is the idea of Joshua Gillespie and is a quality
event that outgrew MSU/Kellogg Center and works well at the Lansing Center. Chair Butler
noted the success of the budget hearings, and the outstanding events that we are preparing for,
i.e. Common Ground, are outstanding examples of the job Peter and management are doing.
He noted that he is very please to be a part of the continued success across the board, and the
organization gets nothing but outstanding accolades all the time and he is pleased to be a part
of the organization.
LEPFA Board of Commissioners Meeting
Page 7
April 25, 2000
XIII. OLD BUSINESS:
No report.
IV. NEW BUSINESS:
No report.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, MAY 23, 2000 AT 7:30 A.M.
AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
At 8:50 a.m. the regular meeting was adjourned.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
MAY 23, 2000 r ;
MINUTES
At 7:40 a.m. Vice Chairman Ellen Jeffries called the meeting to order in the Governor's Rodrri 6f-the
Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: Tim Haggart, Charles Janssen, Ellen Jeffries, Cyril McGuire,
Charlotte Sinadinos, Bob Swanson(Ex-Offrcio), Dennis Sykes (Ex-Officio), Ron Wilson (Ex-Officio) and
Denise Wootton.
COMMISSIONERS EXCUSED: James Butler III and Kate McNenly.
OTHERS PRESENT: Heidi Brown, William Grove, Michael Meyers, Peter Sullivan, - Lansing
Entertainment-and Public Facilities Authority.
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda.
IV. PUBLIC COMMENT:
There was no public comment.
V. APPROVAL OF THE MINUTES OF APRIL 25, 2000:
The minutes of April 25, 2000 stand approved as presented. Motion: Commissioner Sinadinos
Second: Commissioner Wootton, the motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
1. City Council Update: Ron Wilson reported that the budget process is complete and Council
is currently addressing GM abatements. Mr. Wilson noted LEPFA's budget as well as the
City's budget has been approved.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials: Committee Chairman Charlotte Sinadinos reviewed the following financial
statements as approved by the Finance Committee for the period ending April 30, 2000:
a. Lansing City Market: Total Operating Revenue is less than last year by 2% or $1,331.
Total Building Rental is less than last year by 4% or $2,015. Total Operating Expense
decreased by 12% or $14,894 over last year. Net Income after the city contribution
as of April 30 is $35,887 and Net Income after depreciation is $37,834. Internal
Revenue coverage of expenses is 65%, last month it was 60%, and last year it was
58%.
Total Operating Revenue for the current period is $11,205 which exceeds the prior
year's $10,749. We are slightly down for year to date at $66,299 compared to the
prior year's amount of $67,629. Total Operating Expenses for the current period are
$9,887, compared to the prior year's $9,363. Year to date expenses are $108,300 for
this month and were $123,195 last year. Under Operating Expenses, salaries and
wages are down, utilities are down, marketing is down (this is a timing issue), and
maintenance of facilities is up slightly (due to the purchase of mats).
LEPFA Board of Commissioners
Page 2
May 23, 2000
Our current ratio is 25.06 compared to 23.70 last month and last year's 7.38. Our
equity in number of days operation is 419.92, last month it was 394.28, and last year
it was 266.39. Our Total Cash position for the current year is $136,710 compared to
$107,320 for last year. Total Accounts Receivable are $10,804 compared to $8,751
for the prior year. Total Assets for the current year are $155,014 compared to the
prior year's $123,407. Accounts Payable are down for the current year at $5,142
compared to $14,462 last year. Actual Operating Revenue is over budget by 6% or
$4,045 and Actual Operating Expenses are under budget by 21% or $28,217. Year
to date Building Rental $43,021 compared to budget at $39,352. Total Operating
Revenues for year to date are at $66,299 compared to budget at $62,254 for a
variance of $4,045. Expenses for year to date are $108,300.97 compared to the
budgeted amount of$136,518 for a variance of$28,217, and an Operating Income
variance of$32,262.
Sinadinos noted the Market beautification and other projects will be starting next week
as well as some maintenance issues, which will be reflected in the numbers. After the
city contribution and interest, the Market is $35,060 to the good.
b. Oldsmobile Park: Total Operating Expense decreased by 23% or $55,658. Net Income
after the city contribution is $29,117 and Net Income after depreciation is $50,423.
Event Revenue is $17,777, which is comprised of MSU and LCC baseball, and a
March of Dimes event. Event expenses are $9,680 for an event income of$8,096,
which was applied to the Event Development Fund. Year to date event revenues are
$592,918 compared to the prior year's $238,937. Under expenses Salaries and Wages
are down, and Utilities are down for year to date at$39,435 (compared to $42,020 for
last year). Maintenance of Facilities has a significant difference due to the service
drive that was installed last year. Total Operating Expenses year to date are $186,116
compared to $241,774 for the prior year. Our current ratio is 2.44, last month it was
2.01 and last year it was 2.44. Our Equity in Number of Days Operation is 381.96,
last month it was 380.18, and last year it was 219.78. The Total Cash position for the
current year is $106,511 and it exceeds the prior year's $73,138. The Event
Development Fund is $141,746 compared to the prior year's $106,911.
Accounts Receivable are at $69,265 compared to the prior year's $3,059 and the
difference is attributed to billing for suites. Accounts Payables are at $64,926
compared to $29,486. Unreserved Equity for the current year is $233,077 compared
to the prior year's $174,221. Budget versus Actual, our Actual Operating Expenses
are under budget by 25% or $62,400. Total Operating Expenses compared to budget
for year to date are $186,116 and are compared to the budgeted amount of$248,517
which puts expenses better than budget by $62,400. After adding in interest and the
city contribution our variance is better than budget by $73,053.
c. Lansing Center: Our Total Operating Revenue increased over last year by 3% or
$104,884. Total Building Rental increased over last year by 4% or $31,856. Total
Operating Expenses decreased by 2% or $86,987 over last year. Net Income after the
city contribution is $224,628 and is $321,475 after depreciation. Internal Revenue
coverage of expenses is 96%, it was 94% last month and 92% last year. Building
Rental for the current period is $115,391 and was $93,522 last year and the year to
date amount is $901,592 compared to $869,736.
Management Staff Meeting
Page 3
May 23, 2000
Sinadinos noted food and beverage for the current period is $270,449 compared to
$278,413, and the year to date amount is $2,237,068 compared to $2,171,553.
Equipment Rental is up for the current period at$62,226 compared to $58,014 for the
prior year, and year to date figures are up as well. Tradeshow Utilities are up for the
current period as well as year to date compared to the prior year. Total Operating
Revenues for the current period are $503,486 compared to $485,241 for the prior
year and for year to date they are $3,836,837 compared to $3,731,953 for the prior
year. Sinadinos noted this is the third month in a row that we have gone over
$500,000. Under Operating Expenses, Salaries and Wages for year to date exceed the
prior year at $1,173,591 compared to the prior year's amount of $1,099,503.
Fringes/Related Costs are up year to date at$328,111 compared to $315,603. Under
Professional Services, the year to date figure of$187,472 includes the expansion study
and temporary help for employees on leave. Maintenance of Equipment is up slightly
and Maintenance of Facilities is down. Supplies and Material are up slightly. Food and
Beverage expenses for year to date are $1,292,005 compared to $1,313,251. Total
Operating Expenses are $4,005,285 compared to$4,092,272 for the prior year to date
period. Our current ratio is 2.22, last month it was 2.24 and last year it was 2.02.
Our Equity in Number of Days of Operation is 63.03; it was 58.02 last month and last
year it was 58.00. Total Cash is $103,663 for the current year compared to the prior
year's $93,122. Total Restricted Assets are $430,675 compared to $423,500 last year.
Total Accounts Receivable for the current year are $493,043 compared to $470,874
for the prior year. Under Liabilities—Accounts Payable are down$126,275 compared
to $202,331. Unearned Revenue Advanced Rent for the current year is up at$234,213
compared to $190,470 for the prior year. Unreserved Equity is at$827,657 compared
to $778,233 for the previous year. Actual Operating Revenues are under budget by
1% or $22,252. Actual Operating Expenses are under budget by 6% or $250,313.
Total Operating Revenues for the current period are $503,486 for a variance of
$22,068 and the year to date variance is ($22,252). Salaries and Wages for the current
period has a variance of ($16,158); however, we are better than budget for year to
date by $37,247. For Total Operating Expenses year to date we are ahead of budget
by $250,313 and after backing out depreciation at $73,153 we have an income of
$154,904. After adding the city contribution and interest we are better than budget
by $225,979.
Chair Sinadinos moved that the monthly financials for Oldsmobile Park, the Lansing
City Market, and the Lansing Center for the period ending April 30, 2000 be received
as published and further that the monthly expenses for each entity be approved.
Second: Commissioner Janssen, motion carried.
C. CHIEF EXECUTIVE OFFICER'S REPORT:
1. Union Issues: Peter noted there are no developments to report and we are still awaiting
responses from the Union regarding the Food and Beverage and Tech Services proposals.
LEPFA Board of Commissioners Meeting
Page 4
May 23, 2000
2. Lansing City Market: Peter reported that April rental revenue was down about $700
compared to last year, and it is equal to our 1998 level. Occupancy was down and was down
as compared to the prior year as well. In regard to Market Beautification we have been
working with the Vendor's Association on several projects to make the Market more
appealing which includes new umbrella stands for the courtyard, better signage, painting the
women's restroom and installing new toilets. We are also working with Hickory Corners
(John Decker) on landscaping and are working on the planting and trimming of flowers, in
addition to last year's plantings. Planning is underway for a number of upcoming events
including "Adopt a River" on May 6; "Neighborhoods in Bloom" on May 24 and 25;and
we are working with the Vendor's Association on "Be a Tourist in Your Own Town" which
will take place on Saturday, June 3. The Tri-County Iris Association is planning on hosting
an "Iris Show" as well.
3. Oldsmobile Park: Peter noted we hosted the Mayor's "Founding Suiteholder's Breakfast" in
the Governor's Room on Wednesday, May 24. Suite renewal packets and gifts were
distributed. We will also take the suite holders to Comerica Park on Thursday, August 24
and similar to last year, Board members will be invited. Planning continues for a number of
upcoming events including Holywahooza in early June and "Symphony in the Park" on July
1 (the date change is due to a Lugnuts home game on July 4). "Fiesta Del Verano" will take
place in early July as well as the "Park After Dark" movie series. We will also be hosting
the "Diamond Classic" baseball games. Currently, repairs and maintenance is being
scheduled for the fountain in front of the ballpark.
4. Lansing Center: During April we hosted approximately 46 events, equating to approximately
73 event days, with 19,000 attendees, creating 2,000 room nights, for an economic impact
of approximately $750,000. In comparison to April 1999, we were down 11 event days, we
were up slightly in attendance, room nights were down, and economic impact was down,
which is attributed to the mix of events. As previously noted, we had another month that
generated in excess of$500,000.
The Sales Department continues to follow up with Auto Wares in an attempt to bring their
installer conference to the Lansing Center in March 2001 for 300-400 attendees, this group
has been at the Summit (due to their date preferences) and we are hopeful they will return.
We also hosted the UAW Retiree Banquet for close to 1,800 people and provided them with
a very successful valet parking program and hope to host them again in 2001.
Confirmed business includes Michigan Farm Bureau - Employee Recognition Dinner in 2001
for approximately 700 people, (this group has met at the Holiday Inn South previously due
to their date preferences). The Woman's Show (sponsored by L&L Shoprite) is not returning
because as explained, they want to reach the Okemos/East Lansing area and felt the MSU
Pavilion would better serve them. They also were opposed to their attendees paying $3 to
park downtown. They have also considered the Summit and Grand Rapids. In addition, the
Spartan Food Show has decided not to return due to the only available dates being too close
to Good Friday and Easter.
LEPFA Board of Commissioners Meeting
Page 5
May 23, 2000
Lansing Center highlights included the Lansing State Journal Career Fair in Hall B; Taste
of Blackness; Michigan Safety Conference; Show Biz Talent which hosted 1,000 attendees
for a regional talent show/competition; Skills USA — VICA Conference which is a high
school competition for high school trade students; Michigan Education Association which
was highlighted by an appearance by Vice President Al Gore; the INCH Conference, this
was the third year for the event (Information Network for Christian Homes); Michigan
Assisted Living Association; and the Michigan Nonprofit Association Volunteerism
Superconference which is held here every two years, over 1,300 volunteers attended the
conference and was highlighted by speaker Barbara Bush.
Upcoming events include two new shows, World of Log Homes and the Machinery Services
Expo.
5. Common Ground: Peter noted General Motors will be our "presenting sponsor" and the
majority of our acts were announced this past Friday. Two articles have been published; the
first on the front page of the paper and the second was the cover story of the "Today"
section. The final line up will be announced in early July. Common Cards go on sale at the
Lansing and Mason area Meijer stores on Wednesday, May 24 and individual tickets will go
on sale within the next several weeks. A full-page ad was displayed in the Lansing State
Journal on Sunday, May 21 and Monday, May 22 and four quarter page ads will be printed
each week throughout the event. TV10 and 53 have agreed to major promotional
involvement as well as Adams Outdoor Advertising. TV53 will broadcast their news live
from the festival. All the Liggett radio stations are involved heavily over the next week with
over 250 advertising spots. Sixty Second Street Broadcasting has also agreed to promote the
event. Peter noted he, Kevin Meyer and Jim Hopson appeared on several radio stations this
past week to promote the event and will continue to be on select radio stations weekly to
discuss specific topics. Tonight the first "Volunteer Sign Up Party" will take place at the
Lansing Center.
6. Vice President— Sales and Marketing: Peter noted he has hired Linda Frederickson to fill
Tad's position and a memo is forthcoming to Board members regarding her selection. Peter
noted Linda has worked as the Director of Marketing and Sales for the Lugnuts for the past
4 1/2 years and prior to that she worked in a similar capacity at the Lansing Mall. Her first
day with LEPFA will be Tuesday, May 30.
D. PERSONNEL COMMITTEE REPORT: Committee Chairman Cyril McGuire noted there
were no issues before the committee.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Charles Janssen reported
that a meeting took place and that he and committee members Ellen Jeffries, James Butler,
Kate McNenly and Peter Sullivan met to discuss four agenda items. The agenda items were
the expansion, parking, the City Market and the Arts Center. Regarding the Performing Arts
Center, the committee felt is was premature to take any action in terms of the Center, however
the Committee members remain supportive and at some point in time the Board's involvement
will become relevant. It was felt that Parking is an ongoing issue and will continue to be
reviewed.
LEPFA Board of Commissioners Meeting
Page 6
May 23, 2000
Regarding the Lansing City Market, it was decided upon reviewing the report and the issues
and goals set forth, that the Board and Administration have tried to implement a number of the
recommendations and that the Market is moving forward i.e. it is being marketed and the
Market is achieving their budgetary goals. As such, no dramatic moves were suggested at the
Market at this time as long as we are all aware of the subsidy, and the City Council and the
Administration remain supportive knowing that we are doing what we can to reduce it. The
Committee felt that at this time they could continue to monitor the Market and are open to
input. Regarding the expansion, the timing and funding were specifically discussed and it was
concluded that we need to begin to lay out a time line, a Long Range Plan and begin
discussions with the CVB, the City and EDC and all partners on establishing a time line as
well as coordinate public relations aspects so that we are prepared to answer questions. The
Committee agreed to consider various sources of funding as it pertains to the report once the
report is ready to be released.
It was noted that with Common Ground currently occupying staff time in June and July it
would be inappropriate and insignificant to review any further suggestions at this time. The
Committee plans to meet following Common Ground and continuing the. discussion on
planning a time line and moving forward. Janssen noted there was good discussion on the
issues, but want to make certain, due to the first year of Common Ground, that the Committee
meet again following Common Ground.
VII. COMMISIONERS COMMENTS:
A. Peter Sullivan: Peter extended his congratulations to Bill Grove and the Food and Beverage
staff on another good month. He noted food and beverage continues to excel under the in-
house operation and we are exceeding the budget and hope to continue to do so for the rest of
the fiscal year.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, JUNE 27, 2000 AT 7:30 A.M.
AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
At 8:20 a.m. it was moved that the regular meeting adjourned. MOTION: Commissioner McGuire;
SECOND: Commissioner Janssen motion carried.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
JUKE 27, 2000
MINUTES
At 7:_30 a.m. Chairman James W. Butler III called the meeting to order in the Governor's Room of the
Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James W. Butler III, Ellen Jeffries, Cyril McGuire, Kate McNenly
Charlotte Sinadinos, Dennis Sykes (Ex-Officio), and Denise Wootton.
COMMISSIONERS EXCUSED: Tim Haggart, Charles Janssen, Bob Swanson (Ex-Officio), and Ron
Wilson (Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, William Grove, Peter Sullivan,
- Lansing Entertainment and Public Facilities Authority; and James Smiertka, City of Lansing.
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda.
IV. PUBLIC COMMENT:
There was no public comment. f J
V. APPROVAL OF THE MINUTES OF MAY 23, 2000: "l
The minutes of May 23, 2000 stand approved as presented. Motion: Commissioner McGuire
Second: Commissioner Sinadinos, the motion carried. -
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman James Butler reported the following:
1. Thank You: Chairman Butler thanked Vice Chairman Ellen Jeffries for chairing last month's
Board meeting and expressed his appreciation for an outstanding job.
Chair Butler noted that this is an exciting time for Lansing due to the GM plant that is
underway, a new Police Chief, a new Superintendent of Schools, and Common Ground is
everywhere. He also noted there are several tight political races and noted that he felt it is
important to be involved in the political process and as such he has witnessed several Board
members involved in the political process.
2. LEPFA Financials: Chair Butler noted he attended the LEPFA Finance Committee meeting
on Monday and heard nothing but good news and noted it is extremely exciting, especially for
the Lansing Center and the City Market. Butler noted the numbers are outstanding and the
Lansing Center continues to far exceed the expectations (five months in a row it has exceeded
all industry benchmarks as well as those set by LEPFA).
At 7:35 a.m. Dennis Sykes entered the meeting.
3. Welcome: Chairman Butler welcomed Linda Frederickson. He also noted we will have a new
Board member, Sharon Peters, who will officially join the Board in August.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials: Committee Chairman Charlotte Sinadinos reviewed the following financial
statements as approved by the Finance Committee for the period ending May 31, 2000:
LEPFA Board of Commissioners
Page 2
June 27, 2000
a. Lansing City Market: Total Operating Revenue is less than last year by 3% or$2,111.
Total Building Rental is less than last year by 6% or$2,795. Total Operating Expense
decreased by 12% or $16,222 over last year. Net Income after the city contribution
as of May 31 is $38,817 and Net Income after depreciation is $40,966. Internal
Revenue coverage of expenses is 65%, last month it was 60%, and last year it was
58%. The year to date Building Rental is $47,865, compared to the prior year's
$50,659 which equates to Total Operating Revenue for year to date of$71,178, which
is slightly under last year's total of$73,288. Under Operating Expenses, salaries and
wages are down due to a vacant part-time maintenance position that hasn't been filled;
utilities are down, and marketing is down, however a monthly marketing program will
be underway soon (this is a timing issue). Total Operating Expenses year to date are
$117,000 versus $133,222 last year for an operating loss of($45,822), compared to
the prior year's loss of($59,933).
Our current ratio is 9.22, compared to 25.06 last month and last year it was 9.55. Our
equity in number of days operation is 436.62, last month it was 419.92, and last year
it was 279.11. Our Total Cash position for the current year is $133,496 compared to
$114,031 for last year. The $25,000 is the investment in "Common Ground" and is
the amount from reserves, which was divided between the Lansing Center and the City
Market for Total Assets of$169,696 compared to $122,866 last year. Total Liabilities
for the current year are $17,657 compared to $12,202 for the prior year. Unreserved
Equity is $152,038 compared to $110,664 last year. Actual Operating Revenues are
over budget by 6% or $3,908 and Actual Operating Expenses are under budget by
21% or $32,111. Year to date Building Rental of$47,865 is better than the budgeted
amount of$44,285 for a variance of$3,580. Total Operating Revenues for year to
date are better than budget with a variance of$3,908. Operating Expenses - Salaries
and Wages are better than budget, as are utilities and marketing for Total Operating
Expenses year to date of $117,000 compared to the budgeted amount of
$149,111(which is better than budget by $32,110). After adding in the city
contribution and interest, we are better than budget by $39,111.
b. Oldsmobile Park: Total Operating Expense decreased by 22% or $58,061 over last
year. Net Income after the city contribution is $32,503 and Net Income after
depreciation is $55,581. Current Period Event Revenue is $12,376, which is attributed
to MSU baseball and the Diamond Classic event. Under Operating Expenses - Event
expenses are $5,027 for an event income of$7,349, which was applied to the Event
Development Fund. Under Expenses, Salaries and Wages are $45,429 for year to date
compared to the prior year's $53,546. Total Operating Expenses year to date are
$202,973 compared to $261,034 for the prior year. Excess Revenues over expenses
are $32,502 compared to ($33,864) for last year, which was due to the service drive.
Our current ratio is 2.93, last month it was 2.44 and last year it was 1.66. Our Equity
in Number of Days Operation is 403.60, last month it was 381.96, and last year it was
233.95. The Event Development Fund is $149,095 compared to the prior year's
$114,721 and she noted anything over $80,000 will be returned to the City. Total
Assets for the current year are $350,702 compared to the prior year's amount of
$382,624. Total Liabilities are down at $106,889 compared to $200,873 and
Unreserved Equity is $243,812 compared to $181,750.
LEPFA Board of Commissioners Meeting
Page 3
June 27, 2000
Under Budget versus Actual, our Actual Operating Expenses are under budget by 25%
or $68,145. Under Event Revenues - the variance for year to date is better than the
budgeted amount by $275,863. Salaries and Wages are down compared to budget, as
are utilities and maintenance items. We have an Operating Loss of($202,860) for year
to date compared to the budgeted amount of($271,119) for a variance of$68,258.
After adding in interest and the city contribution our variance is $78,583.
c. Lansing Center: Our Total Operating Revenue increased over last year by 5% or
$215,473. Total Building Rental increased over last year by 3% or $33,199. Total
Operating Expenses decreased by 1% or $36,739 over last year. Net Income after the
city contribution is $375,189 and is $483,399 after depreciation. Internal Revenue
coverage of expenses is 99%, it was 96% last month and 94% last year. Building
Rental for the current period is $98,693, and it was $97,350 last year, the year to date
amount is $1,000,285 compared to $967,086 for year to date last year.
Food and Beverage for year to date is $2,623,567 versus $2,460,000 and for the
current period it is $386,499 versus $288,871 (both exceed the prior year's figures).
Equipment Rental for year to date is at$451,527 compared to $425,148 for the prior
year. Total Operating Revenues for the current period are $585,631 compared to
$475,043 for the prior year and for year to date they are $4,422,469 compared to
$4,206,996 for the prior year. Sinadinos noted this is the fourth consecutive month
that we have gone over $500,000 in revenues and the fifth month in this fiscal year.
At 7:46 a.m. Jim Smiertka entered the meeting.
After taking into account expenses for Food and Beverage we netted$193,000 for this
month, and the net for year to date is $1,128,164. Under Operating Expenses,
Salaries and Wages for year to date exceed the prior year/current period at$127,155
compared to$121,370. For year to date we are at$1,300,746 compared to $1,220,873
for the prior year which is attributed to more full time labor compared to last year and
part time staff to service the increased events. Utilities are down slightly for year to
date. Maintenance of Equipment is up slightly and Maintenance of Facilities is down.
Supplies and Material for year to date are up slightly at$86,228 compared to $66,232.
Total Operating Expenses for year to date are $4,477,681 compared to $4,514,420 for
the prior year for an Operating Loss year to date of($55,211) compared to the prior
year's loss of($307,423). Our current ratio is 2.53, last month it was 2.22 and last
year it was 2.29.
Our Equity in Number of Days of Operations is 73.40; it was 63.03 last month and
last year it was 64.37. After combining the Total Cash with the Total Restricted Assets
we have $700,246 which exceeds the prior year's combined cash and assets of$518,
207. Accounts Receivable for the current year are $507,619 compared to $558,523
for the prior year. Total Accounts Receivables are $503,122 versus $544,312 for the
prior year and denotes the investment for Common Ground at $30,000 for Total
Assests for the current year of$1,656,996, compared to the prior year's $1,387,050.
Liabilities - Accounts Payable are down at $113,000 compared to $159,000.
LEPFA Board of Commissioners Meeting
Page 4
June 27, 2000
Unearned Revenue Advanced Rent for the current year is at $219,741 compared to
$167,643 for the prior year for Total Liabilities of$524,208 compared to $500,544
for the prior year. Unreserved Equity for the current year is at $978,218 which
exceeds the prior year's $864,873. Actual Operating Revenues are over budget by 2%
or $80,174. Actual Operating Expenses are under budget by 5% or $225,649.
Building Rental year to date is $1,000,285 and is less than what was budgeted at
$1,078,784 for a variance of($78,498). Food and Beverage is better than budget by
$124,482, as is Equipment Rental, for a variance of$42,047. Trade Show Utilities
are better than budget by $6,817. Labor and Service is less than budget by ($16,912).
Total Operating Revenues for year to date are $4,422,469 compared to the budgeted
amount of$4,342,296 for a variance of$80,173. Operating Expenses - Salaries and
Wages are better than budget by a variance of$31,544 and Fringes are better than
budget as well by a variance $31,284. The ($81,173) under "Professional Services"
is attributed to the expansion study. Utilities are better than budget by $36,796 for an
Operating Loss of($55,211) compared to budget of($361,035) for a variance better
than budget of $305,823. After deducting the depreciation of $78,790 we are
$227,033 better than budget.
Chair Sinadinos moved that the monthly financials for Oldsmobile Park, the Lansing
City Market, and the Lansing Center for the period ending May 31, 2000 be received
as published and further that the monthly expenses for each entity be approved.
Second: Commissioner McGuire, motion carried.
C. CHIEF EXECUTIVE OFFICER'S REPORT:
1. Union Issues: Peter noted that the two outstanding contracts are the Food and Beverage and
Tech Services proposals. Since the last meeting we have met two times with the Union and
are still waiting to hear back from them regarding the Food and Beverage contract.
2. Lansing City Market: Peter reported that May rental revenue was down about $1,200
compared to this time last year, but is $500 above our 1998 level. Occupancy is at 74% and
is down 19% over last year, but is still 8% over 1998. Peter noted that while the numbers
are down compared to last year, we are having a great year compared to budget. Returning
vendors include McNamara's Produce, Rasch Farms and Anthony Cinzori has returned for
his sixth summer at the Market with herbs and flowering plants. In regard to "Market
Beautification" we have added new signs to better direct Market shoppers to the courtyard
entrance, and have added new trim around the courtyard entrance. Hickory Corners Nursery
has been working on tree trimming as well as installing wood chips and additional
landscaping. We are also in the process of making improvements to the parking lot area,
primarily at the base area of the roof, the asphalt will be replaced with "concrete pads" and
this has been discussed with the Public Service Department. In addition, meetings have taken
place with the Vendors Association to discuss improvements on the south end to install a
handicap ramp and replace the concrete. We hosted "Adopt a River" and "Neighborhoods
in Bloom" in May, and "Be a Tourist in Your Own Town" in June.
LEPFA Board of Commissioners Meeting
Page 5
June 27, 2000
3. Oldsmobile Park: We hosted "Holywahooza" in early June, which featured the Newsboys
and Skillet and was a very good event that was well received by those that attended. This year
we ended the show with a fireworks display and we have begun discussions with sponsors
regarding next year. The"Diamond Classic" took place in early June and attracted close to
4,000 patrons. Recently we hosted ""Play Catch with a Kid," and overall it was a good
event (General Motors sponsored the event). For the fifth straight year we will host
"Symphony in the Park" on July 1 and will once again include fireworks and the Everett
High School Marching Band will close the first half of the Show. "Fiesta Del Verano"
preparations continue and will take place on July 8; during the day the festivities will take
place at Oldsmobile Park and the Michael Salgado concert will be held at the Lansing Center.
4. Lansing Center: During May we hosted approximately 52 events, equating to approximately
76 event days, with an excess of 20,000 attendees, creating 1,100 room nights, for an
economic impact of approximately $724,000. In comparison to May 1999, we were up in
event days by six, we were down slightly in attendance, room nights were down, and
economic impact was down; however, as the financials indicate, May this year was better
than last year which is attributed to the mix of events.
Sales Department Update: the Michigan Professional Firefighters have confirmed their 45'
bi-annual convention for 350 people to be held June 2-7, for 2002. Additional confirmed
business included the Everett and Okemos High School Proms for May 2001; and "The
Women of Virtue Conference" in 2001 for 1,500 people. The loss of the Women's Show to
Grand Rapids was discussed last month, in its place a new "Women's Show" has been
confirmed in April 2001which is promoted by Kohler Expo and L&L Shoprite will join them
as a sponsor.
Lansing Center monthly highlights include "The World of Log Homes and Timber Frame
Expo" on June 2-4 which was a first time show that drew close to 5,000 people utilizing
Halls A, B, and C; we are working with the group on return dates, however one of the
sensitivities is that the admission fee of$10 is too high for the show and discussions with the
promoter are ongoing. June 4 the "Access 2000 Health Fair" was held, this was a first time
event with no issues; June 8-11 the Michigan Republican State Committee Campaign School
took place; June 9 the "5 h Annual Chili Cookoff" was held in the riverfront gazebo area and
included 18 exhibitors (which was 3 more than last year due to their increasing the space
north of the building and over 2000 people attended the event with the proceeds benefiting
"Adopt a River." June 9 we housed the "Lansing Squares" as hosted by the Greater Lansing
Catholic Education Foundation; June 16 the State Farm Insurance Founder's Day Celebration
was attended by over 1,000 people. During May/June we hosted three weddings, one prom
and one quincenera. The Lion's Den church also has been holding their church services on
Sunday's through the month of August.
Upcoming events include Michigan Agri Business, Michigan Fire Chiefs, Diamond Quest and
the Machinery and Services Expo.
LEPFA Board of Commissioners Meeting
Page 6
June 27, 2000
5. Common Ground: Peter noted we continue to work with various City Departments on
operational issues (i.e. Parking, Parks and Recreation, Police, Fire, Planing &Neighborhood
Development, Public Service, and Management Services). The City has re-decked the
railroad bridge to facilitate pedestrian traffic. "Common Cards" the multi-day passes are on
sale at Meijers, and single day tickets went on sale last Monday. We continue to market the
event to radio and television, currently we are on three television stations and six radio
stations and are on 30 billboards across the area. Pepsi is putting up displays at approximately
3,000 locations and the Lansing State Journal is developing a "tabloid" for the "Whats On"
section on the Thursday before the event. We continue to push the live television and radio
stations now through the event. TV 53 will broadcast live from the festival each night. We
currently have 250-300 volunteers signed up. Peter offered "Common Ground" pocket
brochures and a site map to interested Board members.
Chairman Butler thanked Peter for his comprehensive remarks.
D. PERSONNEL COMMITTEE REPORT: Committee Chairman Cyril McGuire noted there
were no issues before the committee.
E. LONG RANGE PLANNING COMMITTEE: No report.
VII. COMMISIONER AND STAFF COMMENTS:
A. Commissioner Charlotte Sinadinos: Commented that she is looking forward to "Common
Ground" and volunteering in the hospitality suite.
B. Linda Frederickson: Linda noted she is very glad to be here, is enjoying the organization and
is looking forward to the summer's involvement. Chairman Butler welcomed Linda.
C. Cormnissioner Ellen Jeffries: She noted that she is looking forward to volunteering for
"Common Ground" as well.
D. Commissioner Denise Wootton: She noted she is also looking forward to "Common Ground"
as it pertains to traffic at the Market and said "good bye" as well. Chairman Butler noted
Denise has done an outstanding job and extended his appreciation. Commissioner Wootton
noted that she believes it will be good to have another viewpoint. Chairman Butler noted it
was his understanding that Wes Clark will be her replacement. Peter noted the Vendor's
Association votes on the rep, and Wes has been President of the Association and therefore we
have had ongoing dialog with Wes. Chair Butler commented that Denise has done a great job
and we will miss her.
E. Jim Smiertka: Mr. Smiertka noted City Council approved the appointment of Sharon Peters
last evening to the LEPFA Board of Commissioners.
F. Commissioner Cyril McGuire: He extended his farewell to Denise. At Commissioner
McGuire's requested Peter formally introduced Linda Frederickson to the Board and reviewed
her past accomplishments and employment.
G. Commissioner Kate McNenly: She welcomed Linda and said farewell to Denise.
LEPFA Board of Commissioners Meeting
Page 7
June 27, 2000
H. Commissioner Dennis Sykes: He noted a meeting is scheduled with the Radisson Hotel, their
attorneys and City staff to discuss the relationship with the Radisson and our interest in
additional hotel rooms and/or another hotel.
I. Bill Grove: Chairman Butler noted Bill has done an excellent job and the Board is pleased with
the results of his efforts at the Lansing Center. He commented further that the decision to
bring food and beverage has been outstanding as evidenced by the revenue flow.
J. Peter Sullivan: Commissioner Janssen requested that Peter, on his behalf, extend his
congratulations to Bill Grove and the Food and Beverage staff. Peter note in comparison to
last year, there may be a 30-35% net increase in food and beverage over last year. He also
noted that in the past four months we generated $2,000,000, which is half of our annual
revenue. Bill extended his thanks and noted staff will be happy to hear the compliments.
K. Chairman James Butler:
1. July Meeting Cancellation: Chairman Butler noted there will be no July meeting due
to the audit and as such, the next scheduled meeting will be August 22.
2. Nominating Committee: Chairman Butler requested Kate McNenly Chair the
Nominating Committee for the selection of officers for 2000-2001 and asked Cyril
McGuire and Charley Janssen to serve on the committee as well. The Committee will
report at the August meeting.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, AUGUST 22, 2000 AT 7:30
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
At 8:31 a.m. it was moved that the meeting be adjourned. MOTION: Commissioner McGuire; SECOND:
Commissioner Wootton, motion carried.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
AUGUST 22, 2000
MINUTES
At 7:35 a.m. Chairman James W. Butler III called the meeting to order in the Governor's Room of the
Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James W. Butler III, Wes Clark, Tim Haggart , Charles Janssen, Ellen
Jeffries, Kate McNenly, Sharon Peters, Charlotte Sinadinos, Bob Swanson (Ex-Officio), and Ron Wilson
(Ex-Officio).
COMMISSIONERS EXCUSED: Cyril McGuire and Dennis Sykes (Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, William Grove, Michael
Meyers, Peter Sullivan, - Lansing Entertainment and Public Facilities Authority; James Smiertka, City of
Lansing; Carl Gratkowski and Michael Masterson, IATSE Local 274; Kevin Meyer - Meridian
Entertainment.
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda.
IV. PUBLIC COMMENT:
Carl Gratkowski from the International Alliance of Theatrical Stage Employees (IATSE)
introduced himself, noting that one of their employees had been suspended for a week and they
(the union) were hoping to get something in writing indicating the reason for suspension.
Chairman Butler noted this issue would be reviewed with the managers that are responsible for the
action. Gratkowski requested that the information be faxed to his office.
There was no further public comment.
V. APPROVAL OF THE MINUTES OF JUNE 27, 2000:
The minutes of June 27, 2000 stand approved as presented. Motion: Commissioner Sinadinos
Second: Commissioner Janssen, the motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
On behalf of the Board of Commissioners, Chairman Butler extended his sympathies to
Commissioner Ellen Jeffries on the loss of her father. He also noted Commissioner Cyril
McGuire also lost his brother as well. Chair Butler deferred his comments until the completion
of the Secretary/Treasurer's report.
B. SECRETARY/TREASURER'S REPORT:
Monthly,Financials: Committee Chairman Charlotte Sinadinos reviewed the following financial
statements a� approved by the Finance Committee for the period ending June 30, 2000:
L C C 0� 1__ _
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LEPFA Board of Commissioners
Page 2
August 22, 2000
a. Lansing City Market: Total Operating Revenue is less than last year by 5% or$4,184.
Total Building Rental is less than last year by 7% or $4,154. Total Operating Expense
decreased by 9% or $12,946 over last year. Net Income after the City Contribution
as of June 30 is $35,328 and Net Income after depreciation is $37,672. Internal
Revenue coverage of expenses is 63%, last month it was 65%, and last year it was
60%. The year to date Building Rental is $51,794, compared to the prior year's
$55,948. Parking for year to date is $28,287 compared to $28,344 for last year;
which equates to Total Operating Revenue for year to date of$81,007, which is under
last year's total of$85,191. Under Operating Expenses, Salaries and Wages for year
to date are $50,895 compared to the prior year's $54,200; Utilities for year to date are
down at $28,436 compared to $30,103. Marketing is less than last year at $20,818
compared to $28,306 for year to date. Total Operating Expenses year to date are
$137,059 versus $150,005 last year for an Operating Loss of($56,051), compared to
the prior year's loss of($64,813). Adding in the City Contribution, which was less
this year, we are at$35,327 compared to$35,651 for last year under Excess Revenues
over Expenses.
Our current ratio is 8.16, compared to 9.22 last month and last year it was 5.75. Our
equity in number of days operation is 395.60, last month it was 436.62, and last year
it was 275.50. Our Total Cash position for the current year is $102,508 compared to
$120,336 for last year. Total Assets are $168,124 (which includes the $50,000 that
was invested in Common Ground) compared to $135,775 last year. Under Liabilities,
Accounts Payable are down at $7,100 for the current year compared to the prior
year's amount of$11,424. Total Current Liabilities are down at$19,574 compared to
$22,553 for the prior year. Unreserved Equity is up at $148,549 compared to
$113,221 for last year. Actual Operating Revenues are over budget by 3% or $2,008
and Actual Operating Expenses are under budget by 18% or $30,257. Compared to
budget our Building Rental is better than budget by $2,794 for the year. Parking is
slightly under budget by ($713). Total Operating Revenues for the year are $81,007
which is better than budget by $2,007. Operating Expenses - Salaries and Wages are
better than budget $4,894; Utilities are less than budget by $1,563 and Marketing is
less than budget by $9,181 for Total Operating Expenses year to date of $137,059
compared to the budgeted amount of$167,316 which is less than budget by $30,256
for an Operating Variance of$32,264.
At 7:40 a.m. Commissioner Sharon Peters and Michael Masterson entered the
meeting.
b. Oldsmobile Park: Total Operating Expense decreased by 13% or $36,006 over last
year. Net Income after the City Contribution is $6,849 and Net Income after
depreciation is $31,642. Current Period Event Revenue is $89,505, which includes
Holywahooza, two Diamond Classic games, the Stabenow Reception, the Michigan
Mile, and Play Catch with a Kid. Under Operating Expenses - Utilities are down at
$45,563 compared to $51,403 for the prior year (year to date). Maintenance of
Facilities is down at $19,400 compared to $41,199 for year to date. Total Operating
Expenses year to date are $248,840 compared to $284,847 for the prior year. Event
Expenses for the current period are at $158,600 compared to $118,136 for the same
period last year. Sinadinos noted the Development Fund Cap-Due City is $75,117
compared to $37,781 for the prior year. Our current ratio is 1.57, last month it was
2.93 and last year it was 1.35.
LEPFA Board of Commissioners Meeting
Page 3
August 22, 2000
Our Equity in Number of Days Operation is 218.65, last month it was 403.60, and last
year it was 182.23.
At 7:45 a.m. Jim Smiertka entered the meeting.
The Total Cash for the current year is $50,341 compared to the prior year's $122,480
(and the difference in this figure included money that was being held for July concerts
which had not occurred). Total Assets for the current year are $342,651 compared to
the prior year's amount of$417,996. Total Liabilities are down at$193,587 compared
to $275,782 for the prior year. Unreserved Equity for the current year is $149,063
compared to $142,214.
Under Budget versus Actual, our Actual Operating Expenses are under budget by 16%
or $47,472. Salaries and Wages are under budget by $4,576 for year to date. Utilities
are under budget by $12,436 for Total Operating Expenses of$248,840 compared to
the budgeted amount of$296,313 for a variance of$47,472. After adding in interest
and the City Contribution our variance is better than budget by $57,662.
c. Lansing Center: Our Total Operating Revenue increased over last year by 6% or
$272,023. Total Building Rental increased over last year by 6% or $60,447. Total
Operating Expense increased by 1% or $47,593 over last year. Net Income after the
city contribution is $66,907 and is $185,936 after depreciation. Internal Revenue
coverage of expenses is 92%, it was 99% last month and 88% last year. Building
Rental for the current period is $50,252, and it is $1,050,538 year to date for this year
compared to $990,091 last year.
Food and Beverage for year to date is $2,753,503 versus $2,580,176 for year to date.
The gross Food and Beverage is up by $173,326 better than last year. Equipment
Rental for year to date is up as well at$474,529 compared to $448,082 for the prior
year. Tradeshow Utilities for year to date are up over last year as well at $135,832
compared to $120,951 for the prior year. Total Operating Revenues for year to date
are $4,677,899 compared to $4,405,875 for the prior year. Gross Revenues are
$272,000 better than last year. Under Operating Expenses, Salaries and Wages for
year to date exceed the prior year/current period at$251,493 compared to $229,071.
Year to date professional services (which include the expansion study and Y2K
preparations) are $212,696 compared to $134,819 for the prior year. Utilities are
down slightly for year to date at$528,742 compared to $559,872 last year. Marketing
is up for year to date at $63,562 compared to $31,147 last year. Total Operating
Expenses for year to date are $5,079,837 compared to $5,032,244 for the prior year.
Sinadinos noted our Food and Beverage net for the year was $1,113,000. Our
current ratio is 1.67, last month it was 2.53 and last year it was 1.59. Our Equity in
Number of Days of Operations is 48.27; it was 73.40 last month and last year it was
43.86. Our Total Cash for the current year is$300,102 compared to $257,288 for the
prior year. Total Restricted Assets are $386,000 compared to $386,000 for the prior
year. Under Liabilities, Unearned Revenue Advanced Rent is $247,656 compared to
$182,661 for the prior year. Unreserved Equity is $669,936 compared to $603,029.
Actual Operating Revenues are over budget by 2% or $96,899. Actual Operating
Expenses are under budget by 3% or $173,546. Building Rental year to date is less
than what was budgeted for the year by ($69,461).
LEPFA Board of Commissioners Meeting
Page 4
August 22, 2000
Food and Beverage is better than budget by $128,503. Total Operating Revenues for
year to date variance is $96,899. Under Operating Expenses — Salaries and Wages are
less than budget by $32,642. Fringes and related costs are also down by $28,304.
Professional Services exceed the budget by ($85,796) and Utilities are under budget
by $36,257 for Total Operating Expense better than budget of$173,545. After adding
in the City Contribution and interest, we have a variance of$270,290. After deducting
the depreciation we are $185,319 better than budget.
Chair Sinadinos moved that the monthly financials for Oldsmobile Park, the Lansing
City Market, and the Lansing Center for the period ending June 30, 2000 be received
as published and further that the monthly expenses for each entity be approved.
Second: Commissioner Haggart, motion carried.
Guest Michael Masterson introduced himself to those present.
C. CHAIRMAN'S REPORT:
1. Common Ground: Chairman Butler noted on July 18-23 Lansing made history with over
50,000 people attending "Common Ground" and he thanked Peter, his staff and all the
managers for an outstanding job. Butler noted the Board was proud to be a part of the festival
because it was presented in an outstanding manner and the Board continues to be proud inlight
of the positive comments that continue to come in.
2. New Board Members: Chairman Butler introduced and welcomed LEPFA's two newly
appointed Board members, Commissioner Wes Clark who is the City Market representative
and Commissioner Sharon Peters.
At 8:00 a.m. Carl Gratkowski exited the meeting.
3. City Council Update: Ron Wilson noted there were no issues to bring before the Board of
Commissioners. The Council viewed a video encouraging eastside home ownership, which
is of importance because the Lansing Center is a part of the eastside neighborhood.
D. CHIEF EXECUTIVE OFFICER'S REPORT:
1. Operational Issues: Peter noted we lost our Facility Services Manager, Joanne Bigelow, who
returned to her home area to work at Westfield State College as the Director of Conference
Services. Peter noted we were sorry to see her go, however it allowed us an opportunity to
promote from within and Bill Matt was promoted to her position and interviews are underway
to fill his vacant Event Coordinator position.
2. Lansing City Market: Peter reported that June rental revenue was down about$675 compared
to last year. Occupancy is at 65% which is about a 10% decrease over last year, but is still
17% over 1998. Occupancy is about the same as last year, but it increased significantly over
July of 1998. July 29 the Market hosted the "Tri County Iris Society's Annual Iris Sale" and
they were very pleased with the sale and have indicated that they would like to return to the
Market next year. Plans are underway for a "Garage Sale" in the City Market parking lot on
August 26. A fall orchid sale is also in the planning stages and additional information will
be shared, as it becomes available.
LEPFA Board of Commissioners Meeting
Page 5
August 22, 2000
In regard to "Market Beautification" the project continues to progress with raised flowerbeds
and the planting of many perennial plants.
3. Oldsmobile Park: We hosted the annual "Symphony in the Park" on Saturday July 1 due to
the Lugnut game on July 4. Attendance was down slightly, but overall the event was well
received. We also hosted "Fiesta Del Verano" which was held in the front of Oldsmobile
Park and the concert was held at the Lansing Center; while the event was well received,
attendance was down. Meetings will take place with the City and the community to address
how we can enhance the event. Movies were slated for the ballpark on Friday, August 4
"The Road to El Dorado" was show with about 450 attendees and Saturday August 5
"Mission Impossible IY was rained out and rescheduled for Saturday, August 26. "U571"
will be shown on Friday August 25.
The Lugnuts have had seven(7) rainouts and several games that had declining attendance due
to the potential of rainy weather; thus it is expected that attendance and revenue will be down
this year. Peter noted there have been more rainouts that the first three years combined.
4. Lansing Center: During June we hosted approximately 41 events, equating to approximately
60 event days, with an excess of 14,000 attendees, creating 706 room nights, for an economic
impact of approximately $300,000. In comparison to June 1999, we were up in event days
by 11, we were up by about 23 event days, attendance was up, room nights were up, and
economic impact was up as well. June this year was stronger than last year.
Peter compared FYE 2000 to 1999 noting we hosted about 556 events which was up about
101 compared to last year, 853 event days as compared to 672 for the prior year, attendance
was down by 30,000, room nights were up by 6,000 and economic impact was up as well by
close to $600,000 which is attributed to the event mix. Peter noted Food and Beverage
lacked the larger events this past year, however there were many medium sized events, which
compensated for the lack of the large events. Peter noted this year was an exceptionally busy
year, which is reflected by the numbers.
Sales Department Update: The Volunteer Super Conference has decided to remain in
Lansing at the Lansing Center in 2002-4 and will look at utilizing other hotels rather than the
Radisson due to issues they had previously. Autowares will return in March 2001 after a stay
at the Summit with 500 attendees anticipated; the Lansing State Journal will hold their career
expo in October. Peter noted he met with John Angel and GM is considering hosting a
smaller "105' Commemorative Celebration" in 2002.
Lansing Center monthly highlights include the Fire Chiefs in mid July for the 12 year in a
row, with over 200 participants; July 19-21 the Society for Developmental Education was in
house and had in excess of 500 attendees.
July 22 we hosted Diamond Quest with 1,500 attendees, which took place during Common
Ground. August 4 and 5 we hosted the World Quilt and Textile Tour which was a first time
international event. August 4 the Capital City African American Cultural Association held
a reception in the gazebo for 200 attendees. National Heritage Academy met on August 16
and this was a first time event held in Halls A and B. August 19 we will host Diamond
Quest. The Lion's Den Church has secured every Sunday in the Governor's Room through
the end of the year. We also hosted 7 weddings and two quinceaneras.
LEPFA Board of Commissioners Meeting
Page 6
August 22, 2000
Peter welcomed the two new Commissioners and thanked everyone for the notes and cards
in regard to his father's passing away.
E. PERSONNEL COMMITTEE REPORT: In Committee Chairman Cyril McGuire's absence
Committee member Kate McNenly reported that the Committee has not met.
F. LONG RANGE PLANNING COMMITTEE: Chairman Charles Janssen reported that the
committee has not met due to Common Ground, and they will meet this fall.
G. PERSONNEL COMMITTEE REPORT: Committee Chairman Kate McNenly offered the
following slate of officers:
Ellen Jeffries, Chairman
Kate McNenly, Vice Chairman
Charlotte Sinadinos, Secretary/Treasurer
It was moved that the nominations be closed and that the slate be accepted as presented by
Commissioner McNenly; Second: Commissioner Haggart, the motion was unanimously
passed.
H. COMMON GROUND REPORT: Peter thanked the Board for their support over the past
several months and also thanked the Board members that were able to volunteer their
personal time. In addition he thanked the various City Departments for their help, support
and services without which we could have not presented the event. He also thanked the
City Council and the Administration for their assistance in moving the event forward. He
also thanked Kevin Meyer and Meridian Entertainment Group staff for their efforts.
Common Ground information was distributed and reviewed by Peter Sullivan. Attendance
was in excess of 48,000 with over 10,000 people attending Joe Walsh and Loverboy.
Revenues were approximately $1,065,000. Expenses were $1,164,000 leaving an
operational deficit of approximately $99,000, which will be footed by the partners. The
deficit was anticipated because festivals similar to "Common Ground" generally take three
to four years to develop; overall it was deemed a successful undertaking by industry
standards.
The economic impact based on the CVB's PEI (potential economic impact) index formula
was as follows: the average supplemental spending was averaged at$25; the average ticket
price was slightly over $22; plus parking and hotel estimates equal an economic impact of
$2,500,000 which everyone is happy with for a first time event. Peter noted they would
meet with the media today to share this information. Peter noted "thank yous" have been
sent to our sponsors and we will meet with them in the next 45-60 days.
Kevin Meyer thanked the Lansing Entertainment and Public Facilities Authority and the
City for their help in networking the event and noted it was a great example of people
working together. He noted operationally there is fine-tuning that is needed; however,
from the private perspective they are reviewing three areas and they are the product,
operationally how the event worked and the investment aspects.
LEPFA Board of Commissioners Meeting
Page 7
August 22, 2000
He noted in reviewing the product from the patrons perspective the feedback has been
overwhelmingly positive; operationally it was a success and from an investment perspective
they will recommend that they continue to move forward.
Chairman Butler noted that he felt it was a win/win from the private and public perspective
and extended his compliments to Kevin, Peter, and the City of Lansing for their
collaborative efforts. Chair Butler noted it was a pleasure working with Kevin and Peter.
Bob Swanson suggested Peter comment on the degree of cash reserves that were used.
Peter noted the cash reserves were not used (as approved by the Board of Commissioners)
and no additional money was added to the budget.
VII. COMMISIONER AND STAFF COMMENTS:
A. Commissioner Charlotte Sinadinos: Commissioner Sinadinos noted she enjoyed the festival and
working ft, and looked forward to working at it again next year.
B. Commissioner Tim Haggart: Commissioner Haggart noted he enjoyed the first three days of
the festival as well. Peter thanked him for his efforts in assisting in securing crowd control .
measures, i.e. pipe and drape.
C. Ron Wilson: Ron noted he had a good time as well, and shared comments he heard from GM
officials.
D. Robert Swanson: Bob noted the festival was an outstanding event and commended LEPFA and
Meridian Entertainment
E. Commissioner Ellen Jeffries: Commissioner Jeffries noted that "Common Ground" is very
exciting for the City, and commended and thanked Chairman James Butler for an outstanding
year as the LEPFA Board of Commissioners Chairman and for his energy and accessibility.
F. Commissioner Kate McNeely: Commissioner Jeffries noted she felt "Common Ground" was
exceptional as well, and operationally it was seamless. Commissioner McNenly questioned
if anyone made a hole in one and how to go about getting a golf cart? Peter noted the closest
was 2.5 inches for the hole in one event and they won the cruise.
G. Commissioner Sharon Peters: Commissioner Peters commended everyone for their effort and
noted it is wonderful to join a winning team.
H. Commissioner Wes Clark: Commissioner Clark noted he did not hear one negative comment
throughout the duration of "Common Ground" and that he thought it went over very well.
I. Commissioner Charles Janssen: Commissioner Janssen noted the festival operations were
tremendous, and the kids' section was exceptional as well as entertaining and positive. Janssen
commented that we were worried about alcohol issues; however, the security presence was
outstanding and the fact that there were no problems bodes well for the operation and the
future of the event. He also noted it is important that operationally the volunteers are thanked.
LEPFA Board of Commissioners
Page 8
August 22, 2000
Also he indicated that there were a number of unpaid volunteer supervisors and specifically
noted the efforts of Kristin Sullivan who supervised the VIP tent every night with a "velvet
hammer" and they should be recognized for their efforts.
J. Michael Meyers: Michael gave credit to the staff who participated in the event because many
of the members of the staff who participated are not accustomed to working the hours that they
had to work and they held up very well which is a credit to what they do.
K. Peter Sullivan: Peter gave thanks to IBM and Foster, Swift, Collins and Smith for their
support. Peter also thanked Chairman Butler for all the time and effort he has afforded the
Board of Commissioners and Peter during his chairmanship. Peter noted it was a pleasure
meeting with him and listening to his words and thanked him for his guidance. Chairman
Butler was presented with thank you gifts from the staff and board.
Chairman Butler thanked the Board for the opportunity to serve and noted it has been an honor
and he has enjoyed every minute, as well as the opportunity to work with such an outstanding
Board. He noted Peter and the staff are tremendous and complimented Peter's strong
leadership. He noted "Common Ground" was outstanding and a job well done and the layout
was exceptional. He welcomed the new Commissioners, extended his congratulations to Ellen, .
Kate and Charlie as the new officers and thanked thdm for their willingness to serve.
Chairman Butler thanked the Board overall for the opportunity to lead and noted it has been
a pleasure.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, SEPTEMBER 26, 2000 AT
7:30 A.M. AT THE LANSING CENTER IN ROOM 202.
At 8:50 a.m. it was moved to adjourned. MOTION: Commissioner Peters; SECOND: Commissioner
Haggart, motion carried.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
SEPTEMBER 26, 2000
MINUTES
At 7:30 a.m. Chairman Ellen Jeffries called the meeting to order in Room 202 of the Lansing Center; 333
E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James W. Butler III, Wes Clark, Tim Haggart, Ellen Jeffries, Cyril
McGuire, Kate McNenly, Sharon Peters, Charlotte Sinadinos, and Ron Wilson (Ex-Officio).
COMMISSIONERS EXCUSED: Charles Janssen, Bob Swanson (Ex-Officio) and Dennis Sykes (Ex-
Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, William Grove, Michael
Meyers, Peter Sullivan, - Lansing Entertainment and Public Facilities Authority; and Jack Jordan, City of
Lansing. -
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda.
IV. PUBLIC COMMENT:
There was no public comment.
V. APPROVAL OF THE MINUTES OF AUGUST 22, 2000: -The minutes of August 22, 2000 were adopted as presented.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
Chairman Jeffries noted that she would like to begin the Board of Commissioners meetings at
8:00 a.m. There were no objections to the change, thus beginning with the October 24
meeting the LEPFA Board of Commissioners meetings will begin at 8:00 a.m.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials: Committee Chairman Charlotte Sinadinos reviewed the following financial
statements as approved by the Finance Committee for the periods ending July 31, 2000 and
August 31, 2000:
a. Lansing City Market- July 31, 2000: Total Operating Revenue is less than last year
by 11% or $535. Total Building Rental is less than last year by 11% or $550. Total
Operating Expense increased by 6% or$507 over last year. Net Income after the City
Contribution as of July 31 is $8,130 and Net Income after depreciation is $8,361.
Internal Revenue coverage of expenses is 55%, last month it was 63%, and last year
it was 67%. The prior year's current period Building Rental is $4,308, compared to
$4,858 for Total Operating Revenue for year to date of$4,358, which is under last
year's total of$4,893. Under Total Operating Expenses, all the line items are close to
last year for Total Operating Expenses for the current period of$8,614 compared to
$8,106 for last year for an Operating Loss for the current period of($4,255)compared
to the prior year's ($3,213). Adding in the City Contribution and interest for the
current period, we have $8,129 versus $9,814 for last year.
LEPFA Board of Commissioners Meeting
Page 2
September 26, 2000
Our current ratio is 7.00, compared to 8.16 last month and last year it was 6.17. Our
equity in number of days operation is 563.85, last month it was 395.60, and last year
it was 470.47. Our Total Cash position for the current year is $101,459 compared to
$116,085 for last year, which is attributed to our investment in Common Ground.
Total Assets for the current year are $181,428 (which includes the $50,000 that was
invested in Common Ground) compared to $145,712 last year. Our Unreserved Equity
for the current year is $156,679 up slightly compared to the prior year's $123,035.
Under Budget versus Actual, our actual Operating Revenue is under budget by 9% or
$412. Our Actual Operating Expenses are under budget by 26% or$3,045. Compared
to budget our Building Rental has a variance under budget of($402.25) for the current
period. Our Total Operating Expenses are under budget for year to date by $8,614
compared to budget of$11,659 and we were under budget by $3,044 for a bottom line
of$8,129, which is better than budget by $2,604.
b. Lansing City Market- August 31, 2000: Total Operating Revenue is less than last year
by 2% or $172. Total Building Rental is less than last year by 2% or $197. Total
Operating Expense increased by 14% or$2,011 over last year. Net Income after the
City Contribution as of August 31 is $17,416 and Net Income after depreciation is
$17,879. Internal Revenue coverage of expenses is 60%, last month it was 55%, and
last year it was 56%. Building Rental is up for this current period at$5,026, compared
to $4,673 for Total Operating Revenue for year to date of$9,430, which is under last
year's total of$9,602. Under Operating Expenses for year to date, utilities are down
at$4,760 compared to $5,985 and Total Operating Expenses are down for year to date
at$16,850 compared to $18,860. Adding in the City Contribution and interest for year
to date equals excess revenue over expenses of $17,415 compared to $16,638 last
year. Our current ratio is 5.71, compared to 7.00 last month and last year it was 5.05.
Our equity in number of days operation is 610.66, last month it was 563.85, and last
year it was 426.88. Our Total Cash position for the current year is down at$137,144
compared to $150,084 for last year, which is attributed to our $50,000 investment in
Common Ground. Unreserved Equity for the current year is $165,965 which exceeds
the prior year's$129,860. Under Budget versus Actual, our actual Operating Revenue
is over budget by less than 1% or 50C. Our Actual Operating Expenses are under
budget by 34% or $8,614. For year to date, our Total Operating Revenue is $9,430
compared to budget of$9,430 and is better than budget by 50C for Total Operating
Expenses of$16,850 compared to the budgeted amount of$25,464 which is better
than budget at$8,614 for a bottom line variance of$8,624 better than budget.
c. Oldsmobile Park - July 31, 2000: Total Operating Expense decreased by 2% or$383
over last year. Net Income after the City Contribution is $2,981 and Net Income after
depreciation is $4,873. Current Period Event Revenue is $93,684 (Symphony &
Fiesta) compared to the prior year's $368,583 (which included Bonnie Raitt, Lynyrd
Skynyrd, the Fiesta and the Symphony). Net event revenue for the period is (8,170),
which has been applied to the Event Development Fund. Total Operating Expenses for
year to date are $17,417 compared to $17,800 for last year, and after adding in the
City Contribution and interest, Excess Revenues over Expenses are $2,981 compared
to $3,007 for the prior year's year to date. Our current ratio is 1.28, last month it was
1.57 and last year it was 1.30. Our Equity in Number of Days Operation is 256.07,
last month it was 218.65 and last year it was 296.28.
LEPFA Board of Commissioners Meeting
Page 3
September 26, 2000
The Total Cash for the current year is down at$289,754 compared to the prior year's
$306,966. The Net Development Fund is$71,830 compared to $104,290 for the prior
year and the Capital Due to the City is $75,117 of the Development Fund.
Under Budget versus Actual, our Actual Operating Expenses are under budget by 16%
or $3,232. Salaries and Wages are less than budget by $400. Total Operating
Expenses for year to date are $17,417 compared to the budgeted amount of$20,650.
We are better than budget by $3,232 and after adding in interest and the City
Contribution our variance is better than budget by $3,173.
d. Oldsmobile Park- August 30, 2000: Total Operating Expense increased by 85% or
$30,786 over last year, which is due to painting at the stadium, which will be refunded
to LEPFA from the City. Net Income after the City Contribution is ($7,112) and Net
Income after depreciation is ($3,278). Current Period Event Revenue is $8,334.99
(August movies and a Lansing School District event). Event expenses for the month
are $12,889 for an event loss of ($4,554) which was removed from the Event
Development Fund. Under Operating Expenses Sinadinos noted Maintenance of
Facilities which was the painting was $28,388 and there was an operating transfer of
$18,792 was the money transferred from the City for the painting which equals excess
revenues over expenses for year to date equals a($7,111) compared to the prior year's
$5,258. Our current ratio is 1.32, last month it was 1.28 and last year it was 1.53
Our Equity in Number of Days Operation is 119.41, last month it was 256.07 and last
year it was 338.55. The Total Cash for the current year is up at$260,152 compared
to the prior year's $245,541. The Event Development Fund is $67,275 compared to
the prior year's $129,798 which is due the events. Unreserved Equity is $129,226
compared to $198,271 for the prior year. Actual Operating Expenses are over budget
by 59% or $24,788 (which includes the funded capital project - painting). Actual
Operating Expenses less the project are over budget by 14% or $5,993. After adding
in interest, the City Contribution, and the operating transfer, we are less than budget
by ($5,718).
e. Lansing Center-July 31. 2000: Total Operating Revenue increased over last year by
4% or $4,940. Total Building Rental increased over last year by 27% or $7,620.
Total Operating Expense decreased by 8% or$21,289 over last year. Net Income after
the city contribution is ($54,409) and is ($44,331). Internal Revenue coverage of
expenses is 59%, it was 92% last month and 52% last year. Building Rental for the
period exceeds last year at $35,810 compared to $28,190 last year. Food and
Beverage is down slightly for the current period at $87,431 compared to $95,019.
Equipment Rental is up over the prior year as well as Tradeshow Utilities. Total
Operating Revenues for year to date are $141,292 compared to $136,351 for the prior
year. Under Operating Expenses, Salaries and Wages are down at$66,788 compared
to $72,261 due to vacancies. Utilities are down at $38,052 compared to $40,428.
Maintenance of Equipment and Maintenance of Facilities are down, Food and
Beverage Expenses are slightly more than last year for Total Operating Expenses of
$244,553 compared to $265,841 for last year. The Food and Beverage net for the
current period is $28,511 compared to last year's $29,029. Excess Revenues over
Expenses for the current period are ($54,408) compared to ($80,092). Our current
ratio is 1.77, last month it was 1.67 and last year it was 1.54. Our Equity in Number
of Days of Operations is 78.03; it was 48.27 last month and last year it was 60.98.
LEPFA Board of Commissioners Meeting
Page 4
September 26, 2000
Our Total Cash position is down at$139,347 compared to $160,836 for the prior year.
Cash Reserves for Operating are $331,000 compared to $386,000 for the prior year,
plus the $50,000 asset for Common Ground equals Total Restricted Assets of
$386,000. Accounts Receivable are up $283,741 compared to $165,153 for last year.
Total Assets are $1,299,074, which are up over last year's amount of$1,083,971.
Under Liabilities, Accounts Payable are down $99,446 compared to $173,219.
Unearned Revenue Advanced Rent is $263,901 compared to $228,129 for the prior
year. Unreserved Equity is $615,527 compared to $522,936. Actual Operating
Revenues are over budget by 14% or$17,267. Actual Operating Expenses are under
budget by 11% or $29,725. Building Rental for year to date is better than budget by
$2,980 ($35,810 compared to $32,830). Total Operating Revenue for year to date is
$141,292, which is better than the budgeted amount of$124,025, which equates to
$17,267. Salaries and Wages are less than budget by $9,372. Utilities are less than
budget by $8,947. Total Operating Expenses are $244,553 compared to $274,278,
which puts us ahead of budget by $29,724 for a bottom line variance of$47,290 better
than budget.
f. Lansing Center- August 31, 2000: Total Operating Revenue exceeds last year by 59%
or $151,195. Total Building Rental exceeds last year by 67% or $35,645. Total
Operating Expense increased by 16% or $89,162 over last year. Net Income after the
city contribution is ($138,329). Internal Revenue coverage of expenses is 64%, it was
59% last month and 47% last year. Building Rental for the current period is $53,370
compared to the current period last year at$25,345. Food and Beverage is up for the
current period at$165,690 compared to $76,467 for the prior year. Equipment Rental
is $23,181 compared to the prior year's $11,247. Tradeshow Utilities are up, Labor
Service is up for Total Operating Revenues of $265,417 for the current period
compared to $119,163 for the current period for the prior year. Total Operating
Revenues for year to date are $406,709 compared to $255,514 for the prior year.
Under Operating Expenses, Salaries and Wages are up over the current period at
$127,253 compared to $96,119 last year, which is attributed to three pay periods in
August. Utilities are up compared to the prior year at$47,858 compared to $37,251
for the prior year. Net Food and Beverage for the Center for the month is $45,856.
After adding in the city contribution and interest for the current period, we are
($83,919) compared to the prior year's amount of($120,567). Our current ratio is
1.52, last month it was 1.78 and last year it was 1.29. Our Equity in Number of Days
of Operations is 51.27; it was 78.03 last month and last year it was 45.06. Our Total
Cash position is $230,705 compared to$168,045 for the previous year. Cash and Cash
Equivalents are $331,000 versus $386,000 last year for Total Restricted Assets of
$386,000 for both years. Accounts Receivable are up at $252,963 compared to
$169,843 for the prior year. Accounts Payable are down at $145,124 compared to
$167,149. Unearned Revenue Advance Rents are up at $267,878 compared to
$248,971. Our Total Current Liabilities are $644,151 compared to $623,847.
Unreserved Equity is $531,607 versus $402,369 for the prior year. Under "Budget
versus Actual," our Actual Operating Revenues are over budget by 39% or$115,092;
our Actual Operating Expenses are over budget by less than 1% or $486.
At 8:00 a.m. Commissioner Sharon Peters entered the meeting.
LEPFA Board of Commissioners
Page 5
September 26, 2000
Our Building Rental for year to date is $89,180 which exceeds the budgeted amount
of $77,740 which makes us better than budget by $11,440. Food and Beverage
exceeds budget by $81,392. Total Operating Revenues for year to date are $406,709
compared to a budget of $291,618, so we are better than budget for revenues by
$115,091. The Net Food and Beverage to the Center is better than budget by
$36,375. Under "Operating Expenses" Salaries/Wages are better than budget by
$13,997; Utilities are better than budget by $8,088. Total Operating Expenses for
year to date are $642,808 compared to the budgeted amount of$42,323 for a variance
of($485.92); for an Operating loss of$114,605 better than budget. The bottom line
that is we are ahead of budget by $115,269.
Chair Sinadinos moved that the monthly financials for Oldsmobile Park, the Lansing
City Market, and the Lansing Center for the periods ending July 31, 2000 and August
31, 2000 be received as published and further that the monthly expenses for each
entity be approved. Second: Commissioner Haggart, motion carried.
2. FYE Audit 1999/2000: Finance Committee Chair Charlotte Sinadinos noted that Mark Kettner
from the audit firm of Rehmann Robson attended the Finance Committee meeting to review
the audit and he was very complimentary of the proficiency of Marian and Peter and she
commended them on a job very well done. Marian Bryant reviewed the audit beginning with
page one, which is the auditor's letter indicating that the audit was completed in accordance
with generally accepted accounting principles and in their opinion "the financial statements
present fairly, in all material respects, the financial position of the Lansing Entertainment and
Public Facilities Authority as of June 30, 2000 and the results of its operations and its cash
flows for the year then ended in conformity with generally accepted accounting principles."
Page three showed the combining reports of the balance sheet, and includes the proprietary and
fiduciary funds. Page five entails the combined statements of revenues and expenses for the
year and includes all three facilities and events. Page 6 exhibits the net income of facilities of
$109,097 and the next report shows the expenditure of money for the year; pages six and nine
show a balance sheet for the pension funds that we administer. The standard notes begin on
page 10 and they appear in the financial statements each year, and the only different is that on
page 14 there is a note that discusses "Common Ground" i.e. the formation of Center Park
Productions as a non-profit for the hosting of Common Ground. The combined financial
statements separates the facilities, it shows the performance of each facility for this year and
the prior year. Page 18 depicts the performance of each facility for revenues and expenses,
and the net income for each facility, which are reviewed on a monthly basis. Page 19 shows
the cash flow for each facility and the letter notes that there is nothing to report in terms of
internal control. The report was received as published and reviewed. Chairman Jeffries also
noted that the auditor was very complimentary of Marian and Peter and what a great job they
do and how accessible they are during the audit.
C. CHAIRMAN'S REPORT:
1. Committee Appointments: Chair Jeffries noted she has discussed appointments with most of
the Board members and an updated Committee list will be mailed this week.
LEPFA Board of Coi.nmissioners Meeting
Page 6
September 26, 2000
2. City Council Update: Ron Wilson noted budget policies for the next fiscal year were approved,
and included in the policies was support for LEPFA and Common Ground for another year.
Also included were the Parks & Rec programming, Human Resources, and the Police
Department. Wilson noted they are considering providing more teen dances and this may
involve the Lansing Center through the Parks & Recreation Department. The other item
included addressing MDOT's closing of I-496 from April 1 through August (Trowbridge
through Pine Street exits). A hearing will be held on October 30 to determine how much time
can be allocated toward working 24 hours a day. The second section of the closing (Pine to
69 interchange) will involve lane closures only, the road will remain open. Peter noted we
have discussed the closure with the CVB and how it will impact our clients. A letter will be
sent to all of our clients that will be impacted and we will meet with the meeting planners, as
well as send correspondence updating them on the closing. Peter noted we are attempting to
be proactive as possible and will continue to hold meetings with the planners. Ron noted there
will be state of the art signage directing people to alternative routes.
D. CHIEF EXECUTIVE OFFICER'S REPORT:
1. Union Issues: Peter noted negotiations continue with the Technical Services and Food and
Beverage unions, and it is our goal to wrap up the discussions within the next 60 days.
2. Lansing City Market: Peter reported that August rental revenue was up slightly compared to
last year and is ahead of our 1998 level. Occupancy was at 78%, which is the same as last
two fiscal years. In regard to "Market Beautification" mums are being planted in the planters
in place of the annuals. Several comments have been noted this year in regard to the
flowerbeds. In regard to recruitment efforts, there are a few potential vendors that are
considering opening booths at the Market this fall and one of the vendors has a booth at the
Kalamazoo Farmers Market and will offer baked goods. Discussions are underway with two
produce vendors from the greater Lansing area. The first annual "Yard Sale" was held in late
August in the parking lot and the participants were pleased with the response and the vendor's
felt there was an increase in traffic. October 13-14 the Orchid Sale will take place at the
Market and discussions are underway with the planners to make this an annual fall event.
3. Oldsmobile Park: Two "Park After Dark" movies were held, on August 25 "U571" (360
attendees) was shown and "Mission Impossible II" on August 26 (700 attendees). Peter
noted the average attendance was down slightly compared to last year. Preparation is
underway for "Fright Night" at Oldsmobile Park, and this year's theme will be "Haunted
Hollywood" and it will commence on Friday, October 13 through October 31, admission will
be $5. Hours are 8:00 p.m. through 11:00 p.m. and 8:00 p.m. — 12:00 midnight for the last
weekend of the event.
The Lugnuts did not make the playoffs this year, however paid attendance was 416,000 which
included seven rainouts (which was more than the cumulative total for the first four years)
and a number of near rainout games, which impacted attendance (10% of their home schedule
was rained out). Next year they appear to have an improved home schedule in August.
LEPA Board of Commissioners Meeting
Page 7
September 26, 2000
4. Lansing Center: During August we hosted 31 events, equating to approximately 50 event
days, with an excess of 10,000 attendees, creating 986 room nights, for an economic impact
of approximately $400,000. In comparison to August 1999, we were up in event days by 20,
attendance was up by close to 6,000, room nights were down and the economic impact was
up as well.
Peter noted our Sales Manager, Barb Doyal, had a baby girl on September 17, Emma Anne,
at 6 pounds 13 ounces.
Sales Department Updates: Confirmed business includes the Mid-Michigan Radio Group Job
Fair for November, 2000; Michigan Farm Bureau Legislative seminar for February;
Michigan Department of Agriculture in March 2001; the Michigan Professional Fire Fighters
Union 45`' Bi-Annual Convention in June 2002; and the World Quilt Show will be held in
August 2001. Potential business includes working with Grabill Enterprises on three events
for next year; Michigan Public Health Institute for a conference in April 2002; the American
Youth Soccer Organization in January 2002; and the John Deere Strategic Planning Sessions
for February 2001.
Facility Highlights include: the Lansing School District on August 24 which was an all staff
meeting for teachers and administrators with over 2,000 attendees; Jesse DuPlantis Ministries
were in Halls A and B with over 1,000 attendees; September 9 the Neighborhood Youth
Parent Partnership Prevention workshops and teen dance were in house; September 9 Grabill
Enterprises hosted over 2,100 people and this was first time event; September 14 Spartan
Stores were in house; September 12 Michigan AFL-CIO held a memorial service for the past
President Bill Marshall in banquet rooms 1-6 with an estimated 400 people attending.
September 15 the Michigan Council for Arts and Cultural Affairs held their annual
distribution of funds meeting; September 17-20 the Outdoor Recreation Tourism and Trends
Conference, sponsored by MSU, used the all meeting space and this was an international
event that attracted in excess of 250 industry reps and experts from around the world.
September 19 the Capital Area Michigan Works Job Fair- a first time event, attracted 1500
job seekers. September 22 the INS Citizens Ceremony took place with over 220 immigrants
becoming citizens and this was the first time the event took place at the Center and in the City
of Lansing and was sponsored by the Commission on Spanish Speaking Affairs. Other events
included six weddings, one high school reunion and one quinceanera.
Peter thanked Commissioners Janssen, McGuire, and Sinadinos for appearing before the City
Council's.Committee of the Whole and for their willingness to serve for another term, for
their past service, and for their efforts to-date.
E. PERSONNEL COMMITTEE REPORT: Committee Chairman Cyril McGuire noted the
Personnel Committee met on September 6 regarding an update from Peter and Michael
regarding on-going negotiations with the bargaining units (Technical Services, Stagehands,
Food and Beverage Personnel, Forepeople and Facility Workers). Chair McGuire noted the
meeting went well and the Committee received insight as to what has transpired over the past
year and one half. Currently, Management continues to bargain with the Technical Services
and the Food and Beverage units. Commissioners with specific questions were encouraged to
meet with Peter and Michael.
F. LONG RANGE PLANNING COMMITTEE• No report.
LEPFA Board of Commissioners Meeting
Page 8
September 26, 2000
VII. COMMISIONER AND STAFF COMMENTS:
No report.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, OCTOBER 24, 2000 AT 8:00
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
At 8:35 a.m. it was moved to adjourn. MOTION: Commissioner Sinadinos; SECOND: Commissioner
Haggart, motion carried.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
OCTOBER 24, 2000
MINUTES
At 8:03 a.m. Chairman Ellen Jeffries called the meeting to order in Room 202 of the Lansing Center; 333
E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: Wes Clark, Charles Janssen, Ellen Jeffries, Cyril McGuire, Kate
McNeely, Charlotte Sinadinos, Bob Swanson (Ex-Officio) and Ron Wilson (Ex-Officio).
COMMISSIONERS EXCUSED: James W. Butler III, Tim Haggart, Sharon Peters, and Dennis Sykes
(Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, William Grove, Michael
Meyers, and Peter Sullivan, - Lansing Entertainment and Public Facilities Authority; and James''Smiertka,
City of Lansing.
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda. -_
IV. PUBLIC COMMENT: `J`
There was no public comment.
V. APPROVAL OF THE MINUTES OF SEPTEMBER 26, 2000:
The minutes of September 26, 2000 were adopted as presented.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
Chairman Jeffries requested that the December monthly board meeting be moved to
December 19 at 8:00 a.m. due to the holidays. There were no objections to the change
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials: Committee Chairman Charlotte Sinadinos reviewed the following financial
statements as approved by the Finance Committee for the periods ending September 30, 2000:
a. Lansing City Market— September 30, 2000: Total Operating Revenue for the current
period is $4,423 compared to $5,011.75 for last year, for a year to date figure of
$13,854 compared to the prior year's $14,614. Under Operating Expenses Utilities
for year to-date are comparable at$7,077 versus$7,631 for the prior year. Marketing
is down for year to date at $1,794 compared to $4,940 for last year and
plans/discussions are underway with the vendors for marketing next year.
Maintenance of Facilities for year to date is at $1,301 compared to $2,286 for last
year. Total Operating Expenses for the current period are $25,786 compared to
$30,024 for the prior year and the current period figures are $8,936 versus $11,163
for the prior year. Total Cash for the current year is $123,887 compared to$138,726
for the prior year and is due to our investment in "Common Ground." Total Assets
for the current year are $186,030 compared to $149,358 for the prior year.
LEPFA Board of Commissioners Meeting
Page 2
October 24, 2000
Liabilities are similar to the prior year's $12,067 compared to $12,684 for the prior
year. Unreserved Equity is $173,962 compared to $136,673. Under Budget versus
Actual the Total Operating Revenues variance is ($546) for the current period and for
year to date it is ($545). Operating Expenses - Salaries and Wages are under budget
by $2,197. The Operating Income for year to date variance is $12,212.
b. Oldsmobile Park - September 30, 2000: Event Revenues for the current period are
$1,896 and are attributed to the "Taste of Michigan." Event Expenses are ($87.96)
due to a refund. The Event Income is $1,984 for the current period and has been
added to the Event Development Fund. Under Operating Expenses, Utilities are up
slightly for the current period at$3,662 compared to $3,526 for last year; as well as
for year to date at $11,773 compared to $11,674. Marketing is up at $6,298
compared to $1,522 for the current period last year and for year to date the figure is
$10,692 compared to $4,988 and the difference in the figure is attributed to the
Founding Suite holders trip to Comerica Park. Maintenance of Facilities for the
current period is $221.39 compared to $200 for the current period last year and the
year to date figure of$30,041 is attributed to the painting of the facility. We received
from the city an Operating Transfer of$18,792 for Total Operating Expenses for the
current period of$19,787 compared to the prior year's amount of$15,684. Total
cash position is similar for the current year at$216,103 compared to $212,421 for the
prior year. The Event Development Fund is at $69,259 for the Current Year
compared to $128,578 for the prior year (the amount is higher due to the concerts we
had at the stadium, which have been replaced by Common Ground). Total Liabilities
for the current year are $223,315 compared to $223,194 with Unreserved Equity at
$132,123 for the current year compared to $202,369 for the prior year. Under Budget
versus Actual the Utilities are under budget by $1,347; Marketing is over budget by
($5,189) due to the Founding Suiteholders trip, and the Maintenance of Facilities was
over budget due to the painting of the facility. The Operating Loss for year to date
is ($17,994) and after adding in the city transfer, we are better than budget by
$1,315.90.
c. Lansing Center - September 30. 2000: Building Rental for the current period is
$87,427 compared to the current period for the prior year at$50,637 and year to date
is $176,607 compared to $104,172. Food and Beverage for the current period is
$263,886 compared to $167,125 for the prior year, and year to date is $517,008
compared to $338,612 for the prior year. Equipment Rental for the current period is
$58,878 compared to $33,300 for last year and year to date the figure is $88,401
compared to $50,111 last year. Total Operating Revenues for the current period of
$453,598 compared to $276,533. Year to date revenues are $860,308 compared to
$532,048 for a difference of $328,000. Under Operating Expenses - Salaries and
Wages are up slightly at $118,348 compared to $116,496 which is attributed to the
retro pay for salary administration; the year to date figure is $312,389 compared to
$284,877 for the prior year. Professional Services are down for the current period at
$12,445 compared to $47,770 for last year, which was attributed to the expansion
study. Utilities are up for the current period at$46,872 compared to $39,823 and year
to date figures are $132,784 compared to $117,503 for the prior year.
At 8:17 a.m. Linda Frederickson entered the meeting.
LEPFA Board of Commissioners Meeting
Page 3
October 24, 2000
The difference in Supplies and Materials is a timing issue, and for the current period
the amount is $1,605 compared to the prior year's $11,894 and year to date figures
are $7,788 compared to $29,254. Event expenses for the current period are $16,388
compared to $1,738 for last year, and year to date is $19,440 compared to the prior
year's $3,065. Food and Beverage expenses for the current period are $127,087
compared to $116,807 last year and was$304,059 compared to $240,649 for the prior
year's year to date. Income for the current period is $51,102 compared to the prior
year's ($128,602) for the month of September. Total Cash position for the current
year is $100,899 and the prior year was $55,051. Total Restricted assets are $343,500
less than the prior year's $398,500 due to Common Ground. Accounts receivable are
up at $481,048 compared to $287,977 for Total Assets for the current year of
$1,432,000 compared to the prior year's $1,068,000. Under Liabilities, Accounts
Payable are down $122,650 compared to the prior year's $290,623. Unearned
Revenues Advanced Rent is $297,885 compared to$263,086 for last year. Unreserved
Equity is $631,274 compared to $321,746 for the prior year. Under Budget versus
Actual, Building Rental is better than budget for the current period at$21,212, and for
year to date we are exceeding budget at $32,652. Food and Beverage is better than
budget at$93,516 and for year to-date as well. Food and Beverage Net to the Center
is $210,000. Equipment rental is better than budget for the current period as well as
year to date. Total Operating Revenues variance is better than budget for the current
period at $145,295 and year to-date we are better than budget $260,387. Under
Operating expenses, Salaries and Wages were better than budget by $13,969.
Professional Services exceed budget by $1,112, utilities are $8,215 better than budget
and Food and Beverage is more than budget by $59,958, which is attributed to the
increased business. The Operating Income variance for year to date is $239,727 and
after adding in the city contribution and interest, we are ahead of budget by $240,401.
Chairman Sinadinos moved that the monthly financials for Oldsmobile Park, the Lansing
City Market and the Lansing Center for the period ending September 30, 2000 be received
as published, and further that the monthly expenses for each entity be approved.
Support: Commissioner Janssen Motion carried
C. CHAIRMAN'S REPORT:
1. City Council Update: Ron Wilson distributed an update from the previous evening's City
Council meeting. Items discussed included the redevelopment of Bethlehem Temple to a
restaurant/bar and the development of the Cedar Street School into an office complex and lofts.
The other issue that will affect the Lansing Center is the action introduced by Council Member
Larry Meyer regarding the redevelopment/expansion of the Holiday Inn South with a public
hearing set for November 13 at City Council chambers.
D. CHIEF EXECUTIVE OFFICER'S REPORT:
1. Union Issues: Peter noted in regard to Food and Beverage negotiations we submitted our
proposal to the bargaining unit last week and it is believed we moved forward on a number
of issues and await the Union's response. The Union has agreed to meet every two weeks
until the agreement is completed, which they did not agree to in prior weeks.
LEPFA Board of Commissioners Meeting
Page 4
October 24, 2000
We have declared an impasse with the Technical Services bargaining unit due to one issue,
which is the hourly wage for a new hourly part time position. Peter noted he would continue
to update the Board.
2. Lansing City Market: Peter reported that September rental revenue was down$350 compared
to last year. Occupancy was at 76%, which is slightly under last year by 5%. Regarding
recruitment efforts, we have been working with three potential vendors; one would offer
home baked goods as well as party trays and gift baskets, another hopes to open a "West
Coast" coffee and tea house. The third potential vendor would offer home baked goods, in
particular pies and cobblers. Special Events include an "Orchid Sale" on October 13 and 14
at the Market; the event included potting demonstrations, orchid growing classes, books,
supplies and an Orchid drawing. We are working with the Orchid Growers in an attempt to
have them return next year, as well as making this an annual event. Silver Bells is slated for
November 17 and plans are underway to involve the Market again this year and will include
distributing cider and Market made cookies as well as reindeer and clowns for the children
as they wait to see Mr. and Mrs. Claus.
3. Oldsmobile Park: Operationally, the take down of the Park continues, and the Lugnuts have
made a number of operational requests in regard to painting and carpeting the suites at the
City's expense. Peter noted he and Michael Meyers continue to evaluate how to fund their
requests before approaching the City and they will meet with Bob Swanson regarding this
matter. Fright Night opened October 13 and 14 weekend and will open this Friday and will
continue through Halloween. Currently we have had 3,000 visitors, which puts us slightly
behind last year, however due to the increase to $5 our dollars are ahead of last year. Peter
commended staff, noting our production values are better than last year and we have received
a number of positive comments. Peter thanked Wes Clark for his help in building the event
as well as his acting.
4. Lansing Center: During September we hosted 60 events, equating to approximately 81 event
days, with an excess of 20,000 attendees, creating 1724 room nights, for an economic impact
of approximately $670,000. In comparison to September 1999, we were up in event days
by 27, attendance was up by close to 8,500, 1500 more room nights and the economic impact
was up by $370,000.
Sales Department Updates: Confirmed business includes the Spartan Motors Chassis Fire
Truck Expo and Dealers meeting in August 2001 and the International Brotherhood of
Electrical Workers Local 665 75`' Anniversary Banquet in July 2001. Potential business
includes the Michigan Chess Association on August 31 through September 3. We continue
to work with the CVB and the City regarding the I-496 closing, and we have met with
MDOT officials and will continue to work with them monthly (as the start date begins, we
will meet with them every two weeks). Peter noted a letter has been developed in
conjunction with the CVB and will be distributed to all of the groups that have contracted
with the Lansing Center from April through the end of August in an attempt to formally
notify them, offer alternatives and update them as well (the Lugnuts were also involved in the
meetings).
September Facility Highlights include the Chamber Trade Fair, with over 200 local
businesses participating in Halls A and B.
LEPFA Board of Commissioners Meeting
Page 5
October 24, 2000
The Michigan High School Athletic Associations Sportsmanship Summit took place and is
the only kind of sportsmanship summit in the country with over 1,600 students and
administrators participating. October 1 the Mid Michigan Antiquarian and Book and Paper
Show was held; the 6' Annual Governor's Educational Summit took place; the Michigan
Optometric Association's 32`d Annual Conference took place. The Italian American Club met
for the first time and held two dinner banquets at the Lansing Center. Mollema met for their
spring show; Michigan Interscholastic Press Association met at the Lansing Center for the
fourth year; and the Michigan Council of Teachers of Mathematics met with over 1,800
teachers attending.
At 8:37 a.m. Jim Smiertka entered the meeting.
5. Common Ground: Peter noted he will be meeting with the Commissioners to discuss moving
forward with the event for next July. Peter noted he continues to receive positive feedback
from a number of sources, i.e. the City Council, the Administration, volunteers, sponsors,
businesses, and he and Kevin continue to meet. Peter has met with Bob Swanson as well and
will meet with the Commissioners prior to announcing Common Ground's second year so that
we will be in a position to sell "Common Cards" during the upcoming holiday season.
6. LEPFA Board/Staff Holiday Par: Peter noted we are considering Wednesday, December
13 for the annual Board/Staff Holiday gathering and a note will be sent to all commissioners.
E. PERSONNEL COMMITTEE REPORT: Committee Chairman Cyril McGuire noted there are
no issues before the Personnel Committee.
F. LONG RANGE PLANNING COMMITTEE: Committee Chairman Charles Janssen reported
the Committee and Bob Swanson met to discuss the final expansion report from the
consultants. At this point, the report is being finalized and readied for distribution to the CVB,
LEPFA and the TIFA Boards in conjunction with a meeting to be held with the consultants.
Janssen noted it is the goal to have held a meeting with all three Boards by mid-December,
which would include a presentation by the consultants. Janssen reminded Board members that
the purpose of the report is a feasibility/needs assessment, which is to be reviewed by the
various Boards to ensure that they concur with the final recommendation. We will then delve
into the particulars, i.e. financing, when the expansion will take place, etc. and as such
consider this initial stage as "Phase I" of the process. Peter noted he will continue to work
with the consultant on finalizing the report, with the goal to have the presentation completed
prior to the end of the year.
VII. COMMISIONER AND STAFF COMMENTS:
1. Commissioner Sinadinos: Commissioner Sinadinos noted comments from her daughter and
nephew where that "Fright Night" was awesome.
LEPFA Board of Commissioners Meeting
Page 6
October 24, 2000
2. Commissioner Janssen: Commissioner Janssen complimented the staff on the great start to the
budget year. In regard to September's events, Commissioner Janssen questioned if the success
is due to the mix of events, or a different type of events. Peter noted we hosted six weddings,
meetings, banquets, etc., which have done well in the first quarter and attributed the increase
to our radio campaign. Peter noted while we are aware of the cyclical nature of the business,
we have specifically targeted these areas, as well as the move to bring food and beverage in
house.
3. Ron Wilson: Wilson noted a meeting will be held on Monday, October 30 in regard to the 496
construction. To-date a mailing has been sent to those that will be affected by the closing and
Ron noted he has received five phone calls two were positive. Wednesday at 3:00 p.m.
MDOT will come forth with their request to have the City endorse their "Capital Loop"
project and are focusing on the Larch/Cedar street tree areas as well as Michigan Ave. and the
Capital.
4. Commissioner Wes Clark: Commissioner Clark noted he has enjoyed his first three meetings
as a LEPFA Board member, and noted it is one of the best organizations he has worked with
and noted further that there are a lot of high hopes ahead for the organization.
5. Peter Sullivan: Peter noted LEPFA, in conjunction with the Vendor's Association, is
reconstructing one of the handicapper ramps as well as building another and is moving a
number of the handicap parking spaces in an effort to make the Market more accessible. On
the east end of the Market, where draining water has created problems with the concrete, the
Public Works Department has put in new asphalt to have the water go to the drains, and the
final phase is to skim and replace the asphalt in the parking lot weather permitting. Peter noted
the cost will be around $10,000 and is being completed in conjunction with the City.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, NOVEMBER 28, 2000 AT
8:00 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
At 8:55 a.m. it was moved to adjourn. MOTION: Commissioner Sinadinos; SECOND: Commissioner
Haggart, motion carried.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
NOVEMBER 28, 2000
MINUTES
At 8:10 a.m. Chairman Ellen Jeffries called the meeting to order in the Governor's Room of the Lansing
Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James W. Butler III, Wes Clark, Tim Haggart, Charles Janssen, Ellen
Jeffries, Cyril McGuire, Kate McNenly, Charlotte Sinadinos, and Bob Swanson (Ex-Officio).
COMMISSIONERS EXCUSED: Sharon Peters, Dennis Sykes (Ex-Officio) and Ron Wilson(Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, William Grove, and Peter
Sullivan, - Lansing Entertainment and Public Facilities Authority; James Smiertka, City of Lansing; and
Michael Masterson, IATSE Local 274.
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda.
r-�
IV. PUBLIC COMMENT:
There was no public comment. `
V. APPROVAL OF THE MINUTES OF OCTOBER 24, 2000:
The minutes of October 24, 2000 were adopted as presented. =-
VI. REPORTS: C-n
A. CHAIRMAN'S REPORT:
No report.
At 8:10 a.m. James Butler entered the meeting.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials: Committee Chairman Charlotte Sinadinos reviewed the following financial
statements as approved by the Finance Committee for the period ending October 31, 2000:
a. Lansing City Market - October 31. 2000: Building Rental is down slightly for the
current period at $4,753 compared to $4,831 for last year, and is down for year to
date by $873. Total Operating Revenue year to date is$24,373 compared to the prior
year's amount$27,603, it was noted parking is down for the current period. Under
Operating Expenses, Utilities are down for the current period, as well as for year to-
date ($8,607 compared to $9,450). Marketing is down for the current period as well
as well as for year to date, ($6,279 compared to the prior year's $7,645). Total
Operating Expenses for the current period are $9,493 compared to $10,502 for last
year and the year to date figures are $38, 040 compared to $40,527 for last year, for
an operating loss year to date of ($13,666) compared to the prior year's loss of
($12,924). After adding in the city contribution and interest, Excess Revenues over
Expenses are $29,247 compared to $31,676 for the prior year. Our Total Cash for
the current year is down at$120,759 compared to the prior year's $140,238 which is
attributed to the Common Ground investment. Unreserved Equity is up at$177,796
compared to $144,897 for the prior year.
LEPFA Board of Commissioners Meeting
Page 2
November 28, 2000
At 8:12 a.m. Bob Swanson entered the meeting.
Under Budget versus Actual, Parking is down compared to budget. Total Operating
Revenues for year to date are $24,373 compared to a budgeted$27,327 for a variance
of($2,953). Total Operating Expenses are$38,040 compared to the budgeted amount
of $51,952; thus we are below budget by $10,958. The bottom line variance is
$11,174 better than budget.
b. Qldsmobile Park - October 31 2000• Event Revenues for the current period are
$40,040 and are attributed to "Fright Night." Event Expenses are ($45,469) due to
Fright Night and the movies which equates to an Event Income loss of($5,429). The
Event Revenues, year to date, are $143,955 compared to $573,012 last year, and she
noted the difference is because there were less concerts at Oldsmobile Park due to
Common Ground. Under Operating Expenses, Utilities are down for year to date at
$14,766 compared to $14,789 for the prior year. Marketing is up at $10,392
compared to $5,206 for the prior year, which is attributed to the suiteholders trip to
Comerica Park. Maintenance of Facilities for year to date is $35,520 compared to
$1,547 for last year and the difference is attributed to the painting of the stadium.
Total Operating expenses for year to date are $107,741 compared to $67,876. After
adding in the city contribution, and interest, the Operating Loss for year to date is
$6,398 compared to $14,905 last year. Event Revenues for year to date are $16,169
compared to $57,393 for the prior year. The Event Development Fund for the
current year is $63,830 which is down compared to the prior year's $135,761. Total
cash is up at$247,914 compared to $213,269 for the prior year. Accounts receivables
are down at$7,333 compared to $26,340. Unreserved Equity for the current year is
$126,496 compared to $214,512 for the prior year. Under Budget versus Actual the
Event Revenues has a variance compared to budget for year to date of ($47,207).
Marketing exceeds budget by ($4,388) and the Maintenance of Facilities exceeds
budget by ($29,188) which is attributed to the painting of the facility and is counter
balanced by the operating transfer of$18,792 from the City. After adding in the City
contribution and interest, we had a bottom line variance for Excess Revenues over
Expenses of$2,469 better than budget.
At 8:17 a.m. Bill Grove entered the meeting.
c. tensing Center - October 31 2000: Total Operating Revenue is $615,699 and is the
first time we have exceeded $600,000. Building Rental for the current period is
$126,325 compared to the prior year at $125,067. Year to date building rental is
$302,932, which exceeds $229,240 for the prior year. Food and Beverage for the
current period is $383,199 compared to $344,820 for the prior year, and year to date
is $900,207 compared to $683,432 for the prior year. Equipment Rental for the
current period is $69,324 compared to $71,592 for the prior year and year to date the
figures are $157,725 compared to $121,703 for last year. Trade Show Utilities are up
for the current period as well as for year to date; Labor Service is up for the current
period and year to date as well. Total Operating Revenues for the current period of
$615,699 compared to $569,149 and year to date is $1,476,008 compared to
$1,101,198 for the previous year. Year to date total operating revenues exceed last
year by $328,260. Under Operating Expenses - Salaries and Wages are up slightly
for the current period at $132,149 compared to $116,531, which is attributed to part
time labor, and year to date exceeds the prior year at$444,538 compared to $401,408.
LEPFA Board of Commissioners Meeting
Page 3
November 28, 2000
Utilities are up for the current period at$54,194 compared to$45,052 and year to date
figures are $186,978 compared to $162,555 for the prior year. Marketing is up at
$9,157 compared to$3,086. Food and Beverage expenses are$169,133 compared to
$166,512 for the current period last year. The monthly net for Food and Beverage to
the Center is$213,000. Operating loss for the current period is $142,939 compared
to $140,890 for the prior year, which equates to a year to date loss of ($42,056)
compared to the prior year's ($285,843). After adding back in the City contribution
and interest we have a year to date income of$161,394 compared to ($96,444) for the
prior year. Total Cash position for the current year is $35,638 and the prior year was
$29,761. Total Restricted assets are $313,500 less than the prior year's $397,651 due
to Common Ground. Total Accounts receivables are up at $746,551 compared to
$456,525 and the $85,000 investment in Common Ground was noted. Under
Liabilities, Accounts Payable are down at $123,482 compared to the prior year's
$301,462. Unearned Revenues Advanced Rent is$314,945 compared to $290,911 for
last year. Total Current Liabilities are $639,934 compared to $768,353. Unreserved
Equity is $831,330 compared to $506,584 for the prior year. Under Budget versus
Actual, Building Rental has a variance for the current period less than budget in the
amount of($5,075), however, for year to date we exceed budget by $27,577. Food
and Beverage exceeds budget by $237,620. Labor Service exceeds budget$17,992.
Total Operating Revenues are better than budget$349,622. Total Operating Expenses
for year to date are $1,518,064 compared to the budgeted amount of$1,482,304 for
a variance higher than budget of($35,760). The Operating bottom line variance is
$313,861 and after the City contribution and interest is added, we are ahead of budget
by $314,158.
Chairman Sinadinos moved that the monthly financials for Oldsmobile Park, the
Lansing City Market and the Lansing Center for the period ending October 31, 2000
be received as published, and further that the monthly expenses for each entity be
approved. Support: Commissioner Janssen Motion carried.
d. Common Ground Resolution: Chair Sinadinos noted that all Board members had
received and discussed the Common Ground resolution as presented and asked if there
were any changes. Bob Swanson suggested that the Transportation and Parking
reference be removed, as it is not a department, but rather a division of the
Department of Planning and Neighborhood Development, which is listed. He also
noted that the last "WHEREAS" be changed to "NOW THEREFORE BE IT
RESOLVED THAT" and the paragraph following be amended to read, "BE IT
FURTHER RESOLVED."
Committee Chairman Sinadinos moved that the proposed resolution allowing Center
Park Productions to proceed with plans for Common Ground 2001 according the
resolution proposed by the Finance Committee, and as amended by Bob Swanson, be
approved. Second: Commissioner Janssen, and unanimously approved.
The amended resolution will be attached to the minutes.
C. CHIEF EXECUTIVE OFFICER'S REPORT:
1. Union Issues: Peter reported the Food and Beverage employees have ratified a three-year
contract.
LEPFA Board of Commissioners Meeting
Page 4
November 28, 2000
2. Lansing City Market: Peter reported that October rental revenue was down$648 compared
to last year. Occupancy is at 71%, which is under last year by 10%, however, the recent
success with our recruitment efforts indicate a positive direction in the future. Regarding
recruitment efforts, we have signed three new vendors; Sharon Hind will offer home baked
goods as well as party trays and gift baskets; Kirk deDoes will offer a "West Coast" coffee
and tea house named "deDogs;" and Sherri Hawkins will open "Sherri's Florals and More,"
which will offer cut, dry, and silk floral arrangements. There will be a vendor selling cut
trees at the Market. He noted Silver Bells in the City was well received at the Market, as
well as Santa, Mrs. Klaus, the reindeer, clowns and musical entertainment. Fresh cider and
cookies were offered as well.
3. Oldsmobile Park: We continue with the take down of Oldsmobile Park and continue to work
with the Lugnuts on capital issues and moving forward, Michael Meyers has met with their
Operational staff to listen to their issues. Peter noted he has met with Tom Dickson regarding
a number of their issues and has requested a list of their issues to review with the City to
determine what and when we can accomplish any number of the items. He noted we are at
a crossroads regarding the re-carpeting of the suites, and the issue is who should pay for the
carpeting. Per the TMO it is clear that the City is responsible for long term capital, which
is what the carpet is, however we take issue with how the carpets have been maintained and
therefore the Lugnuts have some financial responsibility toward their replacement if agreed
upon. We currently are awaiting a list from the Lugnuts and Peter noted he will keep the
board abreast of the carpet issue.
At 8:28 a.m. Jim Smiertka entered the meeting.
Peter reported Fright Night was a successful event and staff did a great job in terms of
production, and it drew a large crowd of over 8,000 attendees. Financially the event was
down in comparison to last year by about$5,000 due to less attendance, operational costs,
and we were unable to secure a major sponsor.
4. Lansing Center: During October we hosted 64 events, equating to approximately 82 event
days, with an excess of 29,000 attendees, creating 1,900 room nights, for an economic
impact of approximately $486,000. In comparison to October, 1999, we were up in event
days by 2, attendance was up by close to 7,000, with 290 less room nights. The economic
impact was up due to the mix of events.
Sales Department Updates: Confirmed business includes John Deere for February 2001,
Michigan Council of Teachers of English for October, 2002 and the Michigan Floral
Association for February/March 2003
October Facility Highlights include the 2000 Drug Prevention Conference with close to 2,000
students attending the one-day conference; Michigan Association of Seniors Expo which was
sponsored by Pfizer; October 26-28 Michigan Association for Media in Education held a
three day conference which attracted close to 600 people; October 30-31 Ingham Intermediate
District Career Fair had over 1,000 students and parents attend this annual career fair
featuring colleges, trade schools and employers.
LEPFA Board of Commissioners Meeting
Page 5
November 28, 2000
November 3-4 Hearts at Home was in house and attracted 1,800 stay at home moms, utilizing
all the space in the building. November 6-10 the annual J. Crew Clothing/Warehouse Sale
took place in Hall C for the third year with over 5,000 people attending. November 17, we
hosted Silver Bells; November 18 Diocese of Lansing held their "Youth Jamboree," (which
is an event that returned to the Lansing Center after having moved to the Summit) with over
900 teens in attendance. November 21-26, Festival of Trees was in Halls A and B with over
12,000 attending and the "Celebration Ball was last Saturday and with many positive
comments noted regarding the food. The Lions Den Church continues to meet at the
Lansing Center. Upcoming events include Shipshewanna on the Road and the Michigan
Technology Showcase.
5. Master Plan Update: Peter noted that he, Bob Swanson, Tom Galyon and Michael Meyers
traveled to Kansas City to meet with the consultants regarding updating the Master Plan, and
a meeting will be held in December to update the Board. Peter noted overall the meeting was
a good meeting and progress is underway.
D. PERSONNEL COMMITTEE REPORT: Committee Chairman Cyril McGuire noted the
Personnel Committee will meet on Wednesday, November 29 in regard to the CEO's annual
evaluation. Chair McGuire reminded Board members to forward the CEO's evaluations to
him.
E. LNG RANGE PLANNING COMMITTEE: Committee Chairman Charles Janssen indicated
there was no report at this time for the Long Range Planning Committee.
Discussion ensued regarding the carpet replacement. Commissioner Janssen questioned if the
carpet was a large expenditure, Peter noted the cost is$15,000 - $20,000. Discussion ensued
regarding the care of the carpet in the suites at Oldsmobile Park. The carpet manufacturers
feel that the carpet issue is a maintenance issue as opposed to a wear issue and we feel that the
City should not be 100% responsible for replacing the carpet. Bob Swanson suggested
contacting the manufacturer regarding the ten-year warranty. Peter clarified that the carpet
is no longer made and the Lugnuts initial years lack of maintenance of the carpet has decreased
its life. Again, Peter noted he felt that the City should participate in its replacement, but not
bare the costs solely.
VII. COMMISIONER AND STAFF COMMENTS:
1. Marian Bryant: Marian noted that the financials for the December meeting will be distributed
at the meeting, as has been done in the past and will not be in the packets.
2. Commissioner Janssen: Commissioner Janssen congratulated staff, especially Bill, on the Food
and Beverage numbers for the start of this fiscal year.
3. Commissioner Butler: Commissioner Butler congratulated the staff on exceeding the
benchmark of$500,000, and for a phenomenal month
4. Chairman Jeffries: Chair Jeffries reminded those present of the change in next month's meeting
noting it has been moved to December 19 and she also reminded everyone of the Holiday Party
on December 13.
LEPFA Board of Commissioners Meeting
Page 6
November 28, 2000
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, DECEMBER 19 AT 8:00
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
At 8:45 a.m. it was moved to adjourn. MOTION: Commissioner Sinadinos; SECOND: Commissioner
Haggart, motion carried.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
RESOLUTION
WHEREAS the Lansing Entertainment and Public Facilities Authority supports Center Park
Productions plans to host a major multi-day music celebration at Adado Riverfront Park in
downtown Lansing on July 17 through 22, 2001; and
WHEREAS this annual music celebration will constitute a public purpose by contributing to the
continuing renaissance and economic vitality of downtown Lansing and the entire Lansing area
through its substantial economic impact; and
WHEREAS the Lansing Entertainment and Public Facilities Authority supports Center Park
Production's partnership with Meridian Entertainment Group, to manage such a music
celebration at Adado Riverfront Park in downtown Lansing; and
WHEREAS this multi-day event will feature top national, regional and local recording artists in
order to maximize attendance and sponsorship opportunities; and
WHEREAS this event would also feature children's programs, outdoor recreational
opportunities, river based activities, and food and beverage offerings including beer and wine,
and an array of food selections from ethnic groups, reflecting the diversity of the Lansing
community; and
WHEREAS an event of this magnitude will require city support in its FYE 2002 budget for the
Lansing Police Department; Department of Parks and Recreation; Lansing Fire Department; the
Department of Public Service; the Department of Management Services; and the Department of
Planning and Neighborhood Development; and
WHEREAS the Mayor and the City Council have indicated their support of a festival of this type;
and
WHEREAS this event will also require a special parking rate for event parking in city facilities,
with parking revenues net of expenses supporting the event;
NOW THERFORE BE IT RESOLVED THAT, the Lansing Entertainment and Public Facilities
Authority Board of Commissioners authorizes the President and CEO to enter into a contract
with the partnership of Center Park Productions and Meridian Entertainment Group for
procurement of this festival; and
BE IT FURTHER RESOLVED, this event will require the use of the Lansing Entertainment and
Public Facilities Authority cash reserves in order to pay for its share of the obligations under the
contract for the procurement of music talent, programming and operational expenses in
producing a first class musical celebration, the President and CEO is authorized to commit up to
$200,000 from the cash reserves fund; and
BE IT FURTHER RESOLVED that the LEPFA Board of Commissioners will continue to be
informed on all matters regarding this project.
MOTION: Commissioner Sinadinos SECOND: Commissioner Butler
This resolution was X approved disapproved by the Lansing Entertainment and Public
Facilities Authority Board of Commissioners on the 28th day of November, 2000.
Charlotte Sinadinos, Secretary Treasurer
Lansing Entertainment Public Facilities Authority— Board of Commissioners
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
- BOARD OF COMMISSIONERS MEETING
- December 19, 2000
3 7 MINUTES
At 8:07 a-.m: Chairman Ellen Jeffries called the meeting to order in the Governor's Room of the Lansing
Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James W. Butler III, Wes Clark, Tim Haggart, Ellen Jeffries, Cyril
McGuire, Kate McNenly, Sharon Peters, Charlotte Sinadinos, and Bob Swanson (Ex-Officio).
COMMISSIONERS EXCUSED: Charles Janssen, Dennis Sykes (Ex-Officio) and Ron Wilson (Ex-
Officio).
OTHERS PRESENT Heidi Brown, Marian Bryant, Linda Frederickson, Michael Meyers, and Peter
Sullivan, - Lansing Entertainment and Public Facilities Authority; and James Smiertka, City of Lansing.
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda.
IV. PUBLIC COMMENT:
There was no public comment.
V. APPROVAL OF THE MINUTES OF NOVEMBER 28, 2000:
The minutes of November 28, 2000 were adopted as presented.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
1. Holiday Par tv: Chairman Jeffries noted she was unable to attend the holiday party and the
expansion presentation because the legislature was in session each of those dates.
2. Expansion Project: Chair Jeffries commended Peter Sullivan and staff on the expansion project
which was completed in a short time frame in order to be prepared for the presentation. Chair
Jeffries noted Peter will review the expansion information today.
B. SECRETARY/TREASURER'S REPORT:
1. Months Financials: Committee Chairman Charlotte Sinadinos reviewed the following financial
statements as approved by the Finance Committee for the period ending November 30, 2000:
a. Lansing City Market- November 30 2000• Building Rental is down slightly for the
current period at $3,341 compared to $4,591 for last year, and is down for year to
date for the current year at $21,809 compared to $23,932 for last year. Parking is
down year to date at $5,730 compared to $8,122 for last year. Total Operating
Revenue year to date is $27,902 compared to the prior year's amount of$32,413.
Under Operating Expenses, Salaries and Wages are up for the current period because
there were three pay periods in November at$5,055 compared to $3,681 for the prior
year, and they are up for year to date at$19,548 compared to $17,127. Utilities are
down for year to date at$11,035 compared to $12,831.
LEPFA Board of Commissioners Meeting
Page 2
December 19, 2000
Marketing is down slightly, Maintenance of Facilities is $5,212 for the current period
compared to $293 at this time last year due to asphalt work at the Market, the year to
date figure is up at$7,437 compared to $3,077 for last year. Total Operating Expenses
for the current period are $15,423 compared to $10,111 for last year and the year to
date figures are $53,464 compared to $50,638 for last year. Total Cash position for
the current year is down compared to the prior year at $125,958 compared to
$147,202. Chair Sinadinos noted the investment of$50,000 for Common Ground for
the current year. Unreserved Equity is $171,426 for the current year which exceeds
the prior year's $145,302. Building Rental has a variance for the current period of
($1,223) compared to budget and is down for year to date as well at ($1,877). The
Total Operating Revenues variance for year to date is ($4,049) less than budget.
Under Operating Expenses, Salaries and Wages are better than budget for year to date
by $3,976. Utilities are less than budget by $1,879. Marketing is also less than
budget. Total Operating expenses for year to date are $53,464 compared to the
budgeted amount f$67,662 for a variance better than budget of$14,197. After adding
in the city contribution and interest, there is variance of$10,427 better than budget.
Commissioner Butler questioned the difference in the Parking Revenue,. and Peter
indicated that the first quarter figure will be reviewed with the city. Commissioner
Butler also questioned the decline in tenants, and Peter noted occupancy is down
slightly compared to last year.
At 8:15 a.m. Linda Frederickson entered the meeting.
b. Oldsmobile Park - November 30 20007 Event Revenues for the current period is
$309 in interest and Event Expenses were $1,732 which is the balance for labor for
Fright Night, which equated to an Event Loss of($1,423) which was applied to the
Event Development Fund. Under Operating Expenses - Salaries and Wages are up
for the current period and are attributed to three pay periods in November ($5,632
compared to $4,283), as well as for year to date at$23,568 compared to $19,729 for
last year. Utilities are up slightly for year to date at$19,183 compared to $18,055 for
the prior year. Total Operating Expenses for the current period are $15,726 compared
to $14,429 for the prior year. Year to date expenses are $123,468 compared to
$82,305 for the prior year which was attributed to the painting that was done at the
stadium, which the city partially reimbursed the Authority in the form of an operating
transfer. The bottom line year to date is ($1,579) compared to $20,828 for last year.
The Total Cash position is $187,670 compared to $176,195 for the prior year. The
Total Event Development Fund is $62,407 compared to $132,623 for the prior year.
Unreserved Equity is $129,891 compared to $215,665 for the prior year. Salaries and
Wages have a variance less than budget of$2,241 for year to date. Utilities are less
than budget by $3,351. Maintenance of Facilities exceeds budget by ($27,317) due
to the painting project. Total Operating Expenses for year to date are $123,468
compared to budget of$117,877, which equates to ($5,591). After adding in the City
contribution, the operating transfer, and interest, we are $14,007 better than budget.
LEPFA Board of Commissioners Meeting
Page 3
December 19, 2000
c. LansinLy Center - November 30. 2000: Building Rental for the current period is
$96,325 compared to $109,134 for the prior year. Year to date Building Rental is
$399,773, which exceeds $338,374 for the prior year. Food and Beverage for the
current period is $246,232 exceeding the prior year's amount of$210,115 and year
to date figures are $1,146,440 compared to $893,547 for the prior year. Equipment
Rental for the current period is $54,168 compared to $34,534 for the prior year and
year to date the figures are $211,894 compared to $156,237 for last year. Total
Operating Revenues for the current period are $436,562 compared to $397,878 and
the year to date amount is $1,912,570 compared to $1,499,076 for the previous year.
Year to date total operating revenues exceed last year by $413,000. Under Operating
Expenses - Salaries and Wages are up slightly for the current period at $161,136
compared to $118,966 due to the three payrolls, and part time labor; year to date
exceeds the prior year at$605,675 compared to $520,374.
Utilities are up for the current period at $43,434 compared to $42,107 for the prior
year and year to date figures are $230,413 compared to $204,663 for last year. Food
and Beverage expenses for the current period are $149,825 compared to$133,201 for
last year and for year to date the amount is $622,624 compared to $540,362 for the
prior year. The monthly net for Food and Beverage to the Center is$95,599 and for
year to date the Food and Beverage net is $519,491. The overall Operating loss for
year to date is ($62,665) compared to the prior year's loss of($299,774). The Total
Cash position for the current year is up at $86,507 compared to the prior year's
$28,651. Accounts Receivable for the current year are $727,944 and were$390,209
for the prior year due to a busier period than last year. Under Liabilities, Accounts
Payable are down at $96,274 compared to the prior year's $142,996. Unearned
Revenues Advanced Rent is$321,678 compared to$275,731 for last year. Unreserved
Equity for the current year is $867,634 compared to $536,084 for the prior year.
Under Budget versus Actual, Building Rental for year to date is $399,773 compared
to $383,995 for a variance ahead of budget in the amount of $15,778. Food and
Beverage exceeds budget for year to date at $246,674. Equipment Rental is better
than budget by $70,515.Total Operating Revenues are better than budget$365,944.
Under Operating Expenses, Salaries and Wages are better than budget by $3,892.
Utilities are better than budget by $4,586. Total Operating Expenses are more than
budget at($25,424) for a year to date variance better than budget of$340,520. After
the City contribution and interest is added, and deducting the variance on depreciation,
we are better than budget by $334,639.
At 8:20 a.m. Commissioner Sharon Peters entered the meeting.
Commissioner Butler commented and made reference to overall business and in
particular Building Rental, Food and Beverage, and Trade Show Utilities which were
all up significantly over last year, noting how remarkable the $500,000 or more
difference is compared to last year. He also noted an Operating Income Loss of
$200,000 compared to last year, which is a significant reduction, and commended staff
for their efforts.
Chairman Sinadinos moved that the monthly financials for Oldsmobile Park, the
Lansing City Market and the Lansing Center for the period ending November 30,
2000 be received as published, and further that the monthly expenses for each entity
be approved. Support: Commissioner Haggart Motion carried.
LEPFA Board of Commissioners Meeting
Page 4
December 19, 2000
C. CHIEF EXECUTIVE OFFICER'S REPORT:
1. Union Issues: The Food and Beverage employees ratified a three-year contract.
2. Lansing City Market: Peter reported that November rental revenue was down $1,200
compared to last year. Occupancy is at 76%, which is under last year, however, the recent
success with our recruitment efforts indicate a positive direction in long term growth.
Regarding recruitment efforts, we signed a lease with a fresh cut Christmas tree vendor. He
noted there have been sensitivities with the caf6 since the Ezzos sold the business, and the
individual who is currently in house is attempting to sell middle eastern cuisine; however, he
has eliminated a number of traditional menu items, including breakfast foods. Linda and
Mark continue to meet with the individual regarding the decline in business, however he does
not feel there are any problems and he remains open and operating as a one or two-man
business. Peter noted he will discuss potential legal avenues with Jim Smiertka, and will
continue to update the Board. The owner is a former Sultans employee.
3. Oldsmobile Park: Michael Meyers distributed a letter that was sent to the Lugnuts regarding
suite carpeting issues. Peter noted he has exchanged phone messages with Tom Dickson and
feels that the Lugnuts should pay for a portion of the carpet in light of the issues outlined in
the letter and his conversations with the Mayor. Peter noted further in his message to Tom
that it was our understanding that he was going to forward a list of capital projects to us, and
that the carpet would be included in the list, and that upon our review of the list we would
make recommendations to the city.
4. Lansing Center: During November we hosted 43 events, equating to approximately 69 event
days, with in excess of 40,000 attendees, creating 1,100 room nights, for an estimated
economic impact of approximately $600,000. In comparison to November 1999, we were
down by one event day, attendance was up by close to 19,000, with 219 additional room
nights and economic impact was up by approximately $270,000.
Sales Department Updates: The Vietnam Vets conference was lost to Nashville due to the
airport having a limited number of carriers. Confirmed business includes the Michigan
Health and Hospital Association for April 2001; Michigan Public Health Institute for 2001;
National Evaluation Systems - Teacher Certifications exams in January; Mid-Michigan
Teacher Recruitment Fair in May, 2001; Sysco Food Service in June, 2001; and the Italian
American Club in October 2001.
November Facility Highlights include the Michigan Association of CPA's with 300 in
attendance. Shipshewanna was in the building in early December with 6,000 attendees which
was down slightly compared to last year, but they will return in 2001. December 6-7 the
Michigan Technology Showcase produced by American Show Management was held at the
Lansing Center for the first time, they utilized all three halls and have confirmed dates for
2001and 2002. Over 3,000 attendees were on hand and the Mayor attended the ribbon cutting
ceremony and spoke at the evening's reception. Peter noted this group used a national
decorator and was a higher level show. Fifteen holiday parties were in house, as well as a
wedding, a class reunion and an anniversary celebration.
LEPFA Board of Commissioners Meeting
Page 5
December 19, 2000
Upcoming events include Fest Eve on New Years Eve, the Boat Show, Letts Bridal Show,
Michigan Nursery and Landscaping, the Dr. Martin Luther King Jr. luncheon, Michigan
Agri- Business, the New York City Dance Alliance, and the Michigan Vets Conference.
Peter noted we have hired a new Marketing Manager, Shelby Bailer. Shelby previously
worked for the Lansing Regional Chamber as co-director of the Oldsmobile Classic and we
are happy to have her on board. Shelby will work to secure sponsors for Oldsmobile Park,
Common Ground and the Lansing Center.
5. Common Ground Update: Peter noted discussions continue with our media partners, sponsors
and potential sponsors as we continue to move forward.
6. Expansion Update: A presentation took place on Thursday, December 14. Board members
from the three entities (TIFA, LEPFA and the GLCVB) as well as the media attended the
afternoon presentation, which lasted about 40 minutes and was given by Peter and the
consultants. It was noted in 1991 the original Master Plan for the expansion of the Lansing
Center was created and was used for the renovation of the Lansing Center and with help from
TIFA, the CVB and the City of Lansing it was decided to update the Master Plan with HOK
as the lead consultant. The end result is a 37 page executive summary, which is a market plan
update as well as an architectural update, which expresses the need for an additional
downtown hotel and calls for an immediate Phase III plan as well as a long term plan. The
presentation centered on the Phase III plan with the key components being the addition of
28,900 square feet of exhibit space; 28,000 square feet of ballroom space on the second level
with pre function space; and an additional 10,000 square feet of meeting space. The fourth
component is a new downtown hotel. The consultants emphasized that in order for us to stay
competitive and to stay ahead of the breaking point in regard to occupancy, we need to
expand and there is immediate need in terms of ballroom and meeting space. Overall Peter
felt the presentation was well received and there were no questions following the
presentation. Representatives from the Radisson attended, in addition to Gordon Long and
Phil Williams from the Holiday Inn South. The media attended and there were two positive
articles in the paper and an editorial that was not positive. A committee will be created to
discuss the funding. Similar to the way Grand Rapids proceeded, we will follow the process.
At 8:50 a.m. Jim Smiertka entered the meeting.
Peter reviewed the expansion photos with the Board members. With the expansion, the key
is to take the river into the existing facility, so to speak, in an effort to create a new signature
space for the facility and the downtown and create signature space for the facility, while the
Market will remain untouched by the expansion. Peter thanked all the Board members who
were able to attend the presentation for their support, noting overall he was pleased with the
report and media coverage. Commissioner McNeely questioned if we received any feedback
from the hotels? There were no questions. Chair Jeffries noted that Grand Rapids did receive
a state appropriation of$65 million, which was about a third of the cost.
LEPFA Board of Commissioners Meeting
Page 6
December 19, 2000
Peter noted Grand Rapids followed a process involving a market analysis to determine size and
scope similar to our analysis. He noted he called Mark Nixon last Monday in an attempt to
have him meet with the consultants and the Journal was unable to meet at that time.
Commissioner Butler noted in reference to the presentation that Peter and the consultants did
an outstanding job and the presentation was right on the point, and the handouts were
extremely well received and he heard many positive comments from the media. In reference
to the newspaper, Commissioner Butler requested a summary documentation for talking points
regarding the editorial so that they can defend and support our point of view. He also noted
that we need to understand the legal ramifications regarding the hotel as well. He also
complimented Linda on her radio comments.
A motion was made to accept the plan as presented and refer it to the Long Range Planning
Committee for further study. Motion: Commissioner Butler Second: Commissioner
McGuire. The motion passed unanimously.
D. PERSONNEL COMMITTEE REPORT: At 9:05 a.m. Committee Chairman Cyril McGuire
moved that the regular meeting be adjourned and that an executive session be called to order
for the purposed of discussing the President and CEO's annual evaluation as requested by the
President and CEO. MOTION: Commissioner Butler SECOND: Commissioner Peters.
Yeas: Butler, Clark, Haggart, Jeffries, McGuire, McNealy, Peters and Sinadinos.
Nays:
Motion carried.
At 9:20 a.m. the Executive Session adjourned and the regular monthly meeting was
reconvened. MOTION: Commissioner McGuire SECOND: Commissioner Peters, the
motion carried.
E. LONG RANGE PLANNING OMMITTEE• No report.
VII. COMMISIONER AND STAFF COMMENTS:
1. Wes Clark: Commissioner Clark noted that he was impressed with the study.
2. Jim Smiertka: Mr. Smiertka noted the clause in the contract with the Radission appears to be
an "after thought" and not of substance in the negotiations with the Radisson. It is muddy in
its detail and he is not sure if it is legal. There are two areas of concern and one is whether
such a clause can be invoked by a legislative power and whether or not it is binding for its
successors, and whether or not it is in violation of an anti-trust law. As such a law suite may
be filed, and it was noted there is no length to this clause. Smiertka also noted the clause is
only in effect until such time the Revenue Per Average Room (Rev PAR) which is a product
of the occupancy rate times the average room rate, etc. (they have never met that level) is
reached. Peter noted this agreement was executed by a previous administration. Smiertka
noted there is $11 million outstanding balance and they have been asked to start paying
principle and have paid nothing for the past five years.
LEPFA Board of Commissioners Meeting
Page 7
December 19, 2000
3. Bob Swanson: Mr. Swanson noted when the consultants looked at the economic and revenue
impact, it clearly showed that 80% in the gains will go to the state, which is encouragement
for the state to participate. He noted the Grand Rapids expansion is a $200 million expansion
and ours is $37 million (and will be a huge and impressive addition along the river). Grand
Rapids received a third of their money from the state, a third in county bonds, $30 million in
private contributions and the city is contributing $10 million to the project.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, JANUARY 23 AT 8:00 A.M.
AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
At 9:20 a.m. the meeting adjourned.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING E; '?TAINMENT AND PUBLIC FAG .iES AUTHORITY
200012001 Board of Commissioners
OFFICERS
ELLEN JEFFRIES (Chairman) OFFICE: 373-5300
3229 Moores River Dr. ��� �' �'��' 1} FAX: 373-1986
Lansing, MI 48911 HOME: 482-4416
TERM EXPIRATION: June 30, 2001
KATE MCNENLY (Vice Chairman) OFFICE: 487-1000
The McNenly Group FAX: 372-3262
1026 N. Washington HOME: 887-1768
Lansing, MI 48906
TERM EXPIRATION: June 30, 2002
CHARLOTTE S. SINADINOS (Secretary/Treasurer) OFFICE: 484-7676
1003 Darlington Ave. HOME: 337-0554 OR
East Lansing, MI 48823 337-8587
TERM EXPIRATION: June 30, 2004
COMMISSIONERS
JAMES W. BUTLER III OFFICE: 377-3709
IBM FAX 377-3745
1476 Stonegate HOME: 332-0910
East Lansing, MI 48823 CELL: 517-881-1776
TERM EXPIRATION: June 30, 2002
WES CLARK
Clark Sugarbush Maple Syrup & Perennials CITY MKT: 485-4937
333 N. Cedar St. HOME: 517-628-3643
Lansing, MI 48912
TERM EXPIRATION: June 30, 2001
TIM HAGGART
Plumbers and Pipefitters Local 333 OFFICE: 393-5480
5405 S. Martin Luther King Blvd. FAX: 393-0798
Lansing, MI 48910 HOME: 394-5497
TERM EXPIRATION: June 30, 2001 CELL: 202-3755
CHARLES A. JANSSEN OFFICE: 371-8262
FOSTER, SWIFT, COLLINS & SMITH, PC FAX: 371-8200
313 S. Washington Sq. HOME: 485-3004
Lansing, MI 48933-2193
TERM EXPIRATION: June 30, 2000
CYRIL A. MCGUIRE HOME: 482-5296
International Representative U.A.W. — Retired FAX: 371-2770
401 S. Verlinden COTTAGE: 231-745-4269
Lansing, MI 48915
TERM EXPIRATION: June 30, 2004
(OVER PLEASE)
SHARON CLAYTOR F_ -2S
Michigan's Children .,rFICE: 485-3500
428 W. Lenawee. FAX: 485-3650
Lansing, MI 48933 HOME: 485-0897
TERM EXPIRATION: June 30, 2001
ROBERT SWANSON (Ex-officio)
City of Lansing OFFICE: 483-4505
Finance Department FAX: 483-4524
8th Floor, City Hall HOME: 371-2795
124 Michigan Ave.
Lansing, MI 48933
DENNIS J. SYKES (Ex-officio)
City of Lansing OFFICE: 483-4060
Planning & Neighborhood Development FAX: 483-6036
316 N. Capital Ave. Suite D- HOME:
Lansing, MI 48933
RON WILSON (Ex-officio)
Office of City Council OFFICE: 483-4183
10`h Floor City Hall FAX: 483-7630
124 W. Michigan Ave.
Lansing, MI 48933
RESOURCE PERSONNEL
JAMES SMIERTKA OFFICE: 483-4320
City of Lansing FAX: 483-4081
City Attorney's Office HOME: 487-5344
51h Floor City Hall
124 W. Michigan Ave.
Lansing, MI 48933
JACK JORDAN OFFICE: 483-4321
City of Lansing FAX: 483-4081
City Attorney's Office HOME: 393-2018
51h Floor City Hall
124 W. Michigan Ave.
Lansing, MI 48933
LEPFA STAFF
333 E. Michigan Ave.
Lansing, MI 48933
FAX: 483-7439
MAIN LINE: 483-7400
Marian Bryant Linda Frederickson Michael Meyers Peter Sullivan
Cell: 388-3351 388-3350 388-3349
Home: 699-0701 1-517-543-1972 327-6177 487-9699
Direct: 483-7431 483-7412 483-7428 483-7410
HOME ADDRESSES:
1811 Cottonwood Dr. 432 High St. 1026 Runaway Bay 1 B 2100 Moores River Dr.
Holt, MI 48842 Charlotte, MI 48813 Lansing, MI 48917 Lansing, MI 48910
Revised: 8/00