HomeMy WebLinkAbout2003 LEPFA Minutes LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
JANUARY 28, 2003
MINUTES
At 8:02 a.m. Chairman Cyril McGuire 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, Charles Janssen, Ellen Jeffries, Cyril McGuire,
Kate McNenly, Sharon Peters, Charlotte Sinadinos, Bob Swanson (Ex-Officio), and Denise Wootton.
COMMISSIONERS EXCUSED: Tim Haggart, and Dennis Sykes (Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, William Grove, Peter Sullivan,
and Patrick Talty - Lansing Entertainment and Public Facilities Authority. James Smiertka, City of
Lansing.
Chairman McGuire noted at 9:00 a.m. this morning at City Hall there will be a swearing in
ceremony for the next Mayor and this evening there is a reception for him from 5:00 p.m. -6:30
p.m.
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 DECEMBER 17, 2002:
The minutes of December 17, 2002 were adopted as presented. MOTION: Commissioner
Wootton SECOND: Commissioner Butler, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: No further report.
B. SECRETARY/TREASURER'S REPORT: Marian Bryant distributed the monthly financials
and Chairman Sinadinos reviewed them as follows:
1. Monthly Financials: Chair Sinadinos reviewed the following financial statements as approved
by the Finance Committee for the period ending November 30, 2002:
a. Lansing City Market: Operating Revenue for the current period is$3,548 compared to
$4,125 for the prior year; year to date the figure is$23,759 compared to$24,752 for
the prior year. Total Operating Revenues for year to date are $24,151 compared to
$25,137 for the prior year. It was noted that we have not received parking revenue.
Under Operating Expenses — Salaries and Wages are down for the current period at
$3,657 compared to$5,100 for the prior year,which had three pay periods. For year
to date the figures are down at $18,637 compared to $19,878 for the prior year.
Utilities for the current period are at$3,594 compared to$2,576 for the prior year and
for year to date they are$15,156 compared to$13,966 for the previous year, which is
up about $1,200.
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January 28, 2003
Insurance/Bonding for year to date is $1,556 compared to $958 for last year. The
Operating Loss for year to date is ($26,191) compared to a loss of($30,522) for last
year. After adding in the City Contribution and Interest, the year to date figure is
$12,719 compared to $14,394 for the prior year.
The Balance Sheet - Our Total Cash for the current year is up over prior year's at
$73,741 compared to$64,601. Our Accounts Receivables are at$85,202 compared to
$60,483 for the prior year, and includes the loan to the Lansing Center. Unreserved
Equity is $171,061 compared to $143,798 for the prior year.
Under Budget versus Actual, the Building Rental for the current period was up and
better than budget by $117 and for year to date it was better than budget by $2,385.
Actual Total Operating Revenue for year to date is$24,151 compared to the budgeted
amount of$24,519, which is less than budget by ($367). Chair Sinadinos noted the
Parking Revenue has not been received, which impacts the figures. Total Operating
Expenses for year to date are $50,342 compared to the budgeted amount of$60,347
which is better than budget by $10,004. After adding in the City Contribution and
Interest we are $7,721 better than budget.
b. Oldsmobile Park: The Event Revenues for the current period are $18.37, which is
interest, and Event Expenses are $311.95 and are attributed to Fright Night for an
event loss of($293.58), which was applied to the Event Development Fund.
Under Operating Expenses - Utilities for the current period are $5,624 compared to
$4,557 for the prior year and for year to date they are$22,496 which is slightly more
than the prior year's $22,458. Maintenance of Facilities for the current period are
$2,898 compared to$200 for the prior year and included work on the HVAC system
and for year to date the figure is$9,838 compared to$4,152. Insurance/Bonding for
the current period is$4,761 compared to$2,966 for the prior year and year to date the
figure is $25,962 compared to $14,833. Total Operating Expenses for the current
period are $19,983, which is more than the prior year's $15,920 and year to date the
Expenses are $99,915 compared to the prior year's amount of$96,196. After adding
in the City Contribution and Interest we are at$131.40 compared to$14,185 last year.
Our Total Cash Position is $227,514 for the current year compared to $193,384 for
the prior year, which is up by about $34,000. The Net Development Fund is at
$52,917 compared to $50,288 for the prior year. Unreserved Equity is at $101,144
versus $104,060 for the prior year.
Under Budget versus Actual, Utilities are better than budget by $1,894 for year to
date. Insurance is higher than budget by ($12,027). Total Operating Expenses are
$99,915 compared to the budgeted amount of$109,676, which is better than budget by
$9,760 for the current period. After adding in the Interest, and the City Contribution,
we are better than budget by $8,557.
At 8:13 a.m. Commissioner Kate McNenly entered the meeting.
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January 28, 2003
c. Lansing Center: Building Rental for the current period is $104,057 compared to
$111,869 for the prior year and for year to date the figure is $369,248, which is
similar to last year's amount of$369,561. Food and Beverage Revenue for the current
period is$242,548 compared to$232,510 for the prior year and the year to date figure
is at$1,178,716 compared to the prior year's amount of$1,048,759, for a variance of
$130,000. Labor/Service is up for the current year at$35,108 compared to the prior
year's amount of $23,0006 and for year to date the figure is $79,290 compared to
$62,294. Equipment Rental for year to date is $256,358 compared to $206,841 for
last year. Total Operating Revenues for the current period are$467,605 compared to
$463,596 and for year to date the figure is $1,971,905 compared to $1,779,498.
Under Operating Expenses -Salaries/Wages for year to date are $663,870 compared
to $624,160. Fringes/Related costs are up for year to date at$203,234 compared to
$200,479. Utilities for the current period are $46,708 compared to $47,618 for the
prior year and for year to date they are $244,368 compared to the prior year's
$237,532. Insurance/Bonding is up for year to date at$59,218 compared to$33,951,
which is about $25,000 higher than the prior year's amount. Food and Beverage
expense for the current period is$131,553 compared to the prior year's$155,354 and
year to date the Food and Beverage expense is$686,481 compared to$649,568 for the
prior year. Total Operating expenses for year to date are$2,199,461 compared to the
prior year's amount of $2,027,248. After adding in the City Contribution and Interest
we have excess revenues over expenses of$102,936 compared to the prior year's year
to date loss of($18,582).
Totaling together Cash and Restricted Assets for the current year we have $249,565
for the current year, compared to the prior year's amount of $521,537. Accounts
Receivable are up at $814,560 compared to the prior year's amount of $447,878.
Unearned Revenue -Advanced Rent, which is an indicator of future business for the
current year is $296,756 compared to $276,571 for last year. Unreserved equity for
the current year is $564,566 compared to $607,438 for the prior year.
Under Budget versus Actual, the Building Rental for the current period is better than
budget by $10,381 and the year to date figure is better than budget by $4,878. Food
and Beverage for the current period is better than budget at$9,647 and for year to date
we are better than budget by$120,714. Equipment Rental for year to date is better than
budget by$94,512 and Labor Service is better than budget for year to date by$31,223.
Total Operating Revenues are better than budget by$58,638 for the current period and
by $261,919 for year to date.
Under Operating Expenses-Salaries/Wages are better than budget for year to date by
$14,203. Utilities for year to date were higher than what was budgeted by ($8,348).
Supplies and Materials for year to date were higher than budget by ($9,620).
Insurance/Bonding was higher than budget by ($23,973) for year to date. Food and
Beverage Expense is higher than budget by($35,477)for year to date. Total Operating
Expenses for the current period where higher than budget at($7,800) and for year to
date the expenses are higher than budget by ($90,260). After adding in the City
Contribution and Interest, we have a variance better than budget in the amount of
$164,369 for year to date.
LEPFA Board of Commissioners Meeting
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January 28, 2003
At 8:20 a.m. Commissioner Sharon Peters entered the meeting.
Commissioner Butler questioned Insurance/Bonding by asking if the difference was due
to the escalated cost in the insurance over the year? Chairman Sinadinos noted that the
insurance costs have increased 57%. Commissioner Butler also questioned the
expenses, such as equipment rental and Chair Sinadinos clarified that because we did
more events, we had higher expenses. Commissioner Butler also questioned what is
included under miscellaneous? Marian Bryant stated that it includes our share of the
suite at Oldsmobile Park, various association memberships, our contribution to the
PSD, bank charges, etc. He also asked if anything increased significantly because
Miscellaneous Expenses increased by over $6,000. Marian noted that we are
reviewing the increase.
Chairman Sinadinos moved that the monthly financials for Oldsmobile Park, the
Lansing City Market and the Lansing Center for the period ending November 30, 2002
be received as published, and further that the monthly expenses for each entity be
approved. Motion: Sinadinos Support: Butler, motion carried.
2. Proposed FYE 2003-4 Annual Budget: Chairman Sinadinos noted that the Finance
Committee thoroughly reviewed the budget at an additional meeting and again at the
monthly Finance Committee Meeting. Peter Sullivan reviewed the budget as follows:
a. Cover Memo: The memo notes that we anticipate generating revenues of
approximately $4,800,000, while incurring expenses of approximately $5,600,000
combined between the Lansing Center and the City Market which results in a projected
City Contribution of$663,000 for a estimated$23,000 increase in funding compared
to last year. This is based on an increase in Total Operating Revenues of$167,000 or
6.3% at the Lansing Center, primarily due to increases in Facility Rental, and Food
and Beverage Income in an effort to offset escalating expenses. We have also
projected an increase of 3.1% in Total Operating Expenses at the Lansing Center due
to projected increases in Property Insurance of 57% and increases in medical insurance
of approximately 15%. In regard to Oldsmobile Park we anticipated incurring
expenses of$213,000 compared to $200,000 in the current year, which is due to a
70% increase in property insurance. In addition, we project we will present
approximately 24 events comprised of 36 event days consisting of concerts, sporting
and community events. Revenues for the Lansing City Market are projected at
approximately$83,000, with Operating Expenses of$156,300 resulting in a projected
City Contribution of $69,500, which remains consistent with our request for this year.
In addition, we have enclosed the "Salary Allocation Plan" which designates 4% of
the Lansing Center management positions to Oldsmobile Park due to their role in
stadium operations, which is similar to the past four to five years. We anticipate the
results previously outlined, based on the estimated presentation of over 800 event
days, attracting approximately 500,000 patrons to the facilities under our direction, for
an estimated economic impact in excess of$13,000,000. We also continue to work on
a fourth year of "Common Ground" for 2003 and continue to make it a signature
event not only for downtown, but also for the entire region. To-date we have attracted
in excess of 167,000 patrons and provided an estimated economic impact of over
$9,000,000.
LEPFA Board of Commissioners Meeting
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January 28, 2003
b. Salary Allocation Plan: Peter noted the plan is identical to the plan which the Board
has adopted for the past four years and as is called for in the Chairman's Special
Committee on Finance and as was called for by the Auditor's four years ago.
c. Lansing City Market Budget: We are projecting revenues of $83,220 versus the
budget of $76,900 for the prior year, which is an estimated 8.2% increase, which
consists primarily of Building Rental and Parking increases. Expenses are projected to
be approximately$156,000, which is an increase of 2.3% compared to the prior year.
A slight decrease is projected for Salaries/Wages due to reductions in part-time labor.
Utilities include a $6,500 increase due to scheduled Board of Water Light increases.
Marketing remains the same, insurance increases. Operating Expenses are $156,000
compared to$152,000. The Proposed Net City Contribution is$69,523 compared to
$69,625 for the previous budget,which is consistent with our request for last year, and
is$10,000 less than 2002. The Budget Assumptions are very similar to what we have
seen for the past two to three years.
At 8:20 a.m. Jim Smiertka entered the meeting.
d. Oldsmobile Park Budget: Salaries/Wages are $24,078 compared to $29,100; the
reduction is attributed to a reduction in Stage Hand use. In regard to Professional
Services the amount budgeted is$5,750 versus$8,450 and is attributed to less use of a
consultant. Utilities are commensurate to previous years, and any increase in Utilities
is shared with the Lugnuts. Repairs/Maintenance is projected to decrease and that is
consistent with the schedule and is attributed to sharing costs with the Lugnuts as well
as reducing staging costs. Supplies/Materials are reduced slightly and
InsuranceBonding increased to $57,00 from $33,443, which is a 70% increase.
Miscellaneous is $16,600 compared to $11,100 and is due to the change in how we
expense the suite at the Park versus last year. The Proposed Net City Contribution is
$213,528 compared to $199,885 and the increase is attributed to the changes in the
insurance. The Budget Assumptions are similar to prior years.
e. Lansing Center Budget: Proposed Operating Revenues are $4,745,500 compared to
$4,578,000 for the previous year, which is a 3.6% increase and is based on estimated
event projections as determined with the Sales Department, which includes an increase
in Food and Beverage as well. Equipment Rental is projected at$499,000 compared
to$460,000. Utilities are budgeted at$139,500 versus$115,000 and Labor Service is
increased by 12.4%. Peter noted that Expenses are increased and impacted by the
insurance increases, over which we have no control. Total Operating Revenues are
proposed at$4,745,500 compared to $4,578,000, which is $167,000 more than what
we were comfortable with projecting last year at this time. Salaries/Wages are
$1,796,764 compared to $1,753,094 this year, which is a 2.5% increase, and takes
into consideration three Union contracts increases. Fringes are$546,055 compared to
$512,276, which is a 6.6% increase despite a 15% increase in medical. Professional
Services are budgeted down due to an anticipated reduction in legal fees now that
negotiations with the Union have concluded.
Utilities are estimated to increase 3% based on the schedule of increases projected by
the Board of Water and Light. Marketing is up slightly at $42,000 versus $35,000.
Repairs/Maintenance is up slightly to maintain the facility.
LEPFA Board of Commissioners Meeting
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January 28, 2003
Supplies/Materials are up slightly because they were reduced in the previous year and
will require attention to repairs. Events are projected to increase in line with the
increase in Revenues. Security is budgeted to decrease based on a new agreement
with our provider and the mix of events. Insurance/Bonding reflects a 57% increase
and we are hopeful that we will be able to maintain the$132,600 while piggybacking
with the City; this line item is the bulk of the increase in the Lansing Center's
expenses. Food and Beverage Expense is estimated at $1,713,000 compared to
$1,684,000 due to the increased projection in revenue. Under miscellaneous, the
$54,500 compared to$59,900 reflects the change in allocation of the suite as reflected
in the Oldsmobile Park budget. Total Operating Expenses reflect a 3.1% change and
Revenue reflects a 3.6% change for a loss of($636,213)compared to the prior year's
loss of ($634,813). After adding in the $42,000 allocation, the Proposed Net City
Contribution is $594,213 compared to $592,813 and the difference is attributed to
insurance and medical coverage. The Budget Assumptions/Descriptions as indicated
on the following two pages are similar to those of the previous year.
Peter opened the floor to questions. Commissioner Peters asked if the amount
allocated for the PSD is spread out and requested the total amount. Marian Bryant
noted that the funds appear as we are billed and the total is $25,500. Bob Swanson
explained that each building within the Principle Shopping District is assessed.
Commissioner Peters asked Bob Swanson for his prognosis for the allocation of City
funds for LEPFA based on the City's current budget concerns and the changes in the
administration. He responded that he has indicated to Peter not to expect any increase
in funding over last year, and that City Departments on an operating basis have been
directed to make due with 10% less than what they had appropriated for the current
year. He noted that they would try to keep funding at the same level as this year.
Commissioner Peter's questioned if the City has a target strategy? Mr. Swanson noted
that the Mayor has asked Departments to put together plans that would call for holding
5% of their positions vacant out of existing vacancies, and they have been asked to
present a plan on what they would be and how they would manage without the 5% and
how it will impact their departments. Commissioner Peters questioned the effect on
LEPFA, and Swanson noted he can't determine that yet, and that the Mayor will make
the determination before his presentation in March. He noted we should not expect
anything other than a flat City Contribution. Jim Smiertka noted that the Mayor
presents the budget to Council and that Council ultimately controls the reductions for
the City as a whole and may require all agencies to reduce to the same level as the
City. Bob Swanson also noted that there is still a great deal of uncertainty and it will
not be known until the Governor presents her budget in March.
Commissioner Butler commended the staff and the Finance Committee on the overall
budget and noted he was especially impressed with the time put into the budget, in
particular the Budget Assumptions. He also commended the group as a whole in
reference to addressing the 40-45% net increase in fringe benefits over three years,
and he also noted the three main factors that impact the budget significantly which
include property insurance, medical insurance and utilities which continue rise. He
also commented that it is extremely hard to stay within the guise of last year, and he
noted that there was a great deal of work put into juggling the budget.
LEPFA Board of Commissioners Meeting
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January 28, 2003
Peter noted that he met with Tony Benavides to discuss LEPFA's budget sensitivities
and our goals. Peter noted similar to the past 7-8 years it is incumbent upon
Management and the Board to make our case before the City and that is important that
we put forth to the Administration and Council our budget as it stands and it is
imperative that the City sees what our costs are currently and that the City makes a
value judgments especially in light of the fact that we are one of the few entities that
deals with property insurance and medical insurance costs that we have no control
over. He noted that if the City funds us with the same amount that we received this
year, that at this "time" in the budget process looking ahead eighteen months we
appear to be okay; however, events outside of our control could change year end
results. However, they need to know our plight and we will work from there and will
meet with Council and make sure that they are informed. Bob Swanson noted that he
felt it would be more important this year than in the past for the Board to make their
case and that the Board has been good about stating their case in the past, but it will be
particularly important this year in terms of the message as to why the city contribution
to this entity should not be cut. Swanson noted that there is a strong case to be made
for maintaining the contribution and not cutting back. Commissioner Butler concurred
with Mr. Swanson and noted that the new Mayor is also appreciative of a team effort.
Commissioner Butler stated that in his discussions with the new Mayor he noted that
the Mayor is very sensitiveness to the uniqueness of LEPFA and the value this entity
brings to the quality of life to the downtown. Commissioner Butler noted that is
imperative that the Board participates in the process.
Motion was made by Commissioner Janssen to adopt the 2003-4 Annual Budget as
presented. Support: Commissioner Peters, the motion carried.
C. PRESIDENT AND CEO'S REPORT: In light of the Mayor's swearing in ceremony, Peter
indicated he would give a report at next month's meeting. He also noted that today's meeting
is Bob Swanson's final meeting and thanked him for his help, guidance, hard work,mentoring
and for working with LEPFA. He noted Bob was always available for help and direction and
for his initiative and understanding. Peter noted that he looked forward to visiting Bob as he
undertakes his new duties with the State and asked him not to forget us.
Chairman McGuire noted that he hates to see Bob go, and that he has been a lifeline to us. He
noted that he has enjoyed knowing Bob, and thanked him for all of his guidance and also stated
that he has the greatest respect for Bob. Mr. Swanson thanked everyone for their comments
and noted that he has been with the City for eight years, and one of the most enjoyable aspects
has been the people that he has worked with and indicated that he has enjoyed working with
the Board.
D. PERSONNEL COMMITTEE: Commissioner Butler reported that all of the paper work in
reference to the salary and incentives have been submitted and are done. He noted there are
no Union issues and asked Patrick for an update on the Forepersons contract. Patrick noted
that the Forepersons contract is signed and was completed on December 30 (three year
agreement).
E. LONG RANGE PLANNING COMMITTEE: Chairman Janssen deferred to Peter. Peter
reported that he and Patrick met with the consultant yesterday and hope to have an updated
draft by the end of the week.
LEPFA Board of Commissioners Meeting
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January 28, 2003
VII. COMMISSIONER AND STAFF COMMENTS:
1. Commissioner Sinadinos: Commissioner Sinadinos extended her thanks to Bob for his valuable
comments in Finance Committee meetings.
2. Commissioner Sharon Peters: Commissioner Peters noted that she supported the comments
regarding Bob Swanson and noted that she looked forward to the new situations that we face,
and noted that we will be up to the challenges.
3. Commissioner Ellen Jeffries: Commissioner Jeffries thanked Bob Swanson for his service as
well and noted that she looked forward to working with him in the State.
4. Commissioner James Butler: Commissioner Butler noted that Bob has done an outstanding
job, he noted that he believed that Bob is a giant in his field and that his creativity and "can
do" attitude, based upon his work with us, is second to none and he noted further that his
leadership is outstanding and he will be of great value to his new position. _
5. Commissioner Denise Wootton: Commissioner Wootton questioned if we backed out the total
dollar amount of the increases that we can't control, what kind of percent reduction are we
looking at in our total budget? She noted that this might be a number that we might want to
have available for the meeting with the City.
6. Commissioner McNenly: Commissioner McNenly noted that she once heard our Chair refer
to Bob Swanson as a "genius" and she commented that she concurred and noted further that he
will be missed.
7. Bob Swanson: Mr. Swanson noted that there will be two new individuals attending the Board
meetings as appointed by Mayor Benavides, Jim Ruff will replace Dennis Sykes and Doug
Rubley will replace Bob Swanson as the Finance Director. And the two City Councilmembers
Sandy Allen and Harold Leeman will join the Board as well.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:12 a.m. it was moved that the meeting be adjourned. Motion: Commissioner Peters Second:
Commissioner Janssen, the motion carried.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, February 25, 2003 AT 8:00
A.M. AT THE LANSING CENTER IN ROOM 205.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
FEBRUARY 25, 2003
MINUTES
At 8:03 a.m. Chairman Cyril McGuire called the meeting to order in Room 205 of the Lansing Center; 333
E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James W. Butler III, Charles Janssen, Ellen Jeffries, Cyril McGuire,
Kate McNenly, Jim Ruff(Ex-Officio), Charlotte Sinadinos, and Denise Wootton.
COMMISSIONERS EXCUSED: Tim Haggart, Sharon Peters and Doug Rubley (Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, William Grove, Peter Sullivan,
and Patrick Talty - Lansing Entertainment and Public Facilities Authority. Sandy Allen 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 JANUARY 25, 2003:
The minutes of January 28, 2003 were adopted as presented. MOTION: Commissioner Janssen
SECOND: Commissioner McNenly, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman McGuire introduced and welcomed City Councilmember
Sandy Allen and Jim Ruff who replaces Dennis Sykes on the LEPFA Board.
B. SECRETARY/TREASURER'S REPORT: Marian Bryant distributed the monthly December
and January financials and Chairman Sinadinos reviewed them as follows:
1. Monthly Financials— For the Period Ending December 31, 2002: Chair Sinadinos reviewed
the following financial statements as approved by the Finance Committee for the period ending
December 31, 2002:
a. Lansing City Market: Building Rental Revenue for the current period is $3,534
compared to $4,011 for the prior year. Total Operating Revenues for the current
period are $3,594 compared to $14,371, and the difference is attributed to parking,
which was not received in December.
Under Operating Expenses — Utilities for year to date were $19,408 compared to
$17,676 for the previous year, which is up$1,700 for year to date. Excess Revenues
Over Expenses are up by $1,590 compared to the prior year's amount of$18,152.
The Balance Sheet— Our Total Cash for the current year is up at $69,403 compared
to $63,805 for the prior year. Our Total Accounts Receivables are at $85,202
compared to$70,474 for the prior year. Unreserved Equity is$159,932 compared to
$147,556 for the prior year.
LEPFA Board of Commissioners Meeting
Page 2
February 25, 2003
Under Budget versus Actual, the Building Rental for year to date is$27,293 compared
to the budgeted amount of $24,893, which is $2,400 better than budget. Total
Operating Revenue for the current period is$3,594 compared to the budgeted amount
of$6,836, which is less than what was budgeted by ($3,242). For year to date the
figure is$27,745 compared to the budgeted amount of$31,355 for a variance less than
budget of($3,609). Total Operating Expenses for year to date are$69,350 compared
to the budgeted amount of $76,446, which is better than budget by $7,095. After
adding in the City Contribution and Interest we are $1,189 better than budget.
b. Oldsmobile Park: The Event Revenues for the current period are ($226.34). The
expenses are $8.39, which equates to a total loss of($234.73), which was applied to
the Event Development Fund.
Under Operating Expenses - Utilities for the current period are $5,841 compared to
$5,904 for the prior year. Total Operating Expenses for the current period are
$27,964, which is more than the prior year's $26,235 and for year to date the
Expenses are $128,017 compared to the prior year's amount of $122,432. After
adding in the City Contribution and Interest we are at$7,496.00 compared to$8,000
last year. Our Total Cash Position is $205,145 for the current year compared to
$185,600 for the prior year. The Net Development Fund is up slightly at $52,682
compared to $50,131 for the prior year. Unreserved Equity is at $93,281 versus
$97,898 for the prior year.
Under Budget versus Actual, Utilities are better than budget by $1,026 for year to
date. Insurance is higher than budget by ($13,693). Total Operating Expenses are
$128,017 compared to the budgeted amount of$138,455, which is better than budget
by $10,437 for the current period. After adding in the Interest, and the City
Contribution, we are better than budget by $9,458.61.
c. Lansing Center: Building Rental for the current period is $40,196, which is down
compared to $46,115 for the prior year, and for year to date the figure is $409,444,
which is similar to last year's amount of$415,676. Food and Beverage Revenue for
the current period is$119,068 compared to$136,145 for the prior year and the year to
date figure is $1,297,784 compared to the prior year's amount of$1,184,905, for a
variance of$113,000. Equipment Rental for the current period is$4,114 compared to
$21,512 for the prior year. Equipment Rental for year to date is $260,472 compared
to $228,353 for last year. Total Operating Revenues for the current period are
$176,846 compared to $232,502 and for year to date the figure is $2,148,752
compared to $2,012,001 for last year.
Under Operating Expenses- Salaries/Wages for year to date are $765,560 compared
to $749,366. Professional Services for year to date are $103,066 compared to
$84,0174 and this figure includes temporary services. Insurance/Bonding for the
current period is $10,783 compared to $6,585 and for year to date the figure is
$70,001 compared to $40,536 for the prior year. Total Operating Expenses for the
current period are$422,438 compared to$414,617 for the previous year and for year
to date the Total Operating Expenses are $2,589,806 compared to the prior year's
amount of$2,441,865. Excess Revenues Over Expenses for year to date are($68,831)
compared to ($157,257) for the prior year.
LEPFA Board of Commissioners Meeting
Page 3
February 25, 2003
Totaling together Cash and Restricted Assets for the current year we have $412,390
for the current year, compared to the prior year's amount of $400,271. Accounts
Receivable are at $510,621 compared to the prior year's amount of $295,582 and
Chairman Sinadinos noted that the figure is down approximately$300,000 compared
to last month. Unearned Revenue -Advanced Rent, which is our indicator of future
business for the current year is $318,376 compared to $289,787 for last year.
Unreserved Equity for the current year is $392,798 compared to $468,763 for the
prior year.
Under Budget versus Actual, the Building Rental for year to date is better than budget
by$14,384. Food and Beverage for year to date is also better than budget by$84,082.
Equipment Rental for year to date is better than budget by $52,644. Total Operating
Revenues for year to date are $2,148,000 compared to the budgeted amount of
$1,978,279 and are better than budget by $170,473.
Under Operating Expenses - Utilities are higher than budget for year to date by
($1,080). Insurance/Bonding was higher than budget by ($27,707). Total Operating
Expenses for year to date are $2,589,806 compared to the budgeted amount of
$2,488,242, which equates to a variance of ($101,564). After adding in the City
Contribution and Interest, we have a variance better than budget in the amount of
$60,084.
2. Monthly Financials - For the Period Ending January 31, 2003: Chairman Sinadinos
reviewed the monthly financials for the period ending January 31, 2003:
a. Lansing City Market: Building Rental is $3,066 compared to $3,442 for the prior
year and for year to date the amount is$30,359 compared to$32,106. Parking for the
current period is $11,385 compared to $10,325 for last year. Total Operating
Revenue is $42,232 compared to $42,886. Operating Expenses - Utilities for the
current period are $4,148 compared to$3,328 for last year and year to date the figure
is $23,556 compared to $21,005. Maintenance of Facilities for year to date was
$4,561 compared to$7,365 for the prior year. Insurance/Bonding for year to date is
$2,121 compared to $1,341. Excess Revenues over Expenses for year to date are
$7,841 compared to$15,109. Our cash position is $54,131, which exceeds the prior
year's amount of$41,525. Accounts Receivable are $96,588 compared to$70,564.
Unreserved Equity is$166,183 compared to$144,513. Total Operating Revenue for
year to date is $42,232 versus the budgeted amount of$36,721, which is better than
budget by $5,511. Utilities are higher than budget by ($6,056). Total Operating
Expenses for year to date are $81,354 compared to the budgeted amount of$89,277
for a variance better than budget of$7,922. After adding in the City Contribution and
Interest, we have a variance better than budget in the amount of$10,752.
b. Oldsmobile Park: We have Event Revenues of$20.70 (interest) and Event Expenses
of$5.00 for$15.70, which was applied to the Event Development Fund. Utilities for
the current period were$5,443 compared to the previous year's amount of$4,808 and
for year to date the amount is $33,919 compared to $33,171 for last year.
Insurance/Bonding for year to date is $34,141 compared to $20,766 last year.
LEPFA Board of Commissioners Meeting
Page 4
February 25, 2003
Total Operating Expenses for the current period are $17,320 versus $22,213 for the
prior year and for year to date the figure is$145,338 compared to $144,645. Excess
Revenues over Expenses for year to date are ($5,421) compared to $5,798 for last
year. Total Cash is up at$175,443 for the current year compared to $167,688. The
Net Event Development Fund is $52,698 compared to the $49,938. Unreserved
Equity for the current year is $95,372 compared to $95,503 last year.
At 8:27 a.m. Jim Smiertka entered the meeting.
Utilities are better than budget for year to date by $693. Insurance/Bonding is higher
than budget by ($14,632). Total Operating Expenses are $145,338 compared to the
budgeted amount of$145,338 versus the budgeted amount of$158,297. We are better
than budget by$12,958. After adding the City Contribution and Interest,we are better
than budget by $11,125.
c. Lansing Center: Building Rental for the current period is$105,192 exceeding the prior
year's amount of$80,675 and year to date the amount is $514,636 compared to the
prior year's amount of $496,351. Food and Beverage for the current period is
$213,737 compared to$171,950 and year to date the figure is$1,511,522 compared to
$1,356,855 for last year, which is up by about$154,000. Equipment Rental is up for
the current year at $64,234 compared to $39,574 as well as for year to date at
$324,706 compared to$267,927. Tradeshow Utilities are up for the current period at
$27,252 versus $19,340 for the prior year as well as for year to date at $80,914
compared to $69,470. Labor Services are up for the current period at $36,977
compared to $8,651 for the prior year; and for year to date the figure is $118,437
compared to$87,325. Total Operating Revenues for the current period are$457,420
compared to $326,706 and the figure for year to date is $2,606,172 versus
$2,338,707. Under Operating Expenses- Utilities are up for year to date at$335,611
compared to$328,567 for the prior year. Food and Beverage expense for year to date
is $966,559 compared to $916,000. Total Operating Expenses for the current period
are $500,603 compared to $455,479 for last year. Year to date expenses are
$3,090,410 compared to $2,897,345. After adding in the City Contribution and
Interest we have a loss for year to date of($63,621)compared to a loss of($259,948)
for the prior year. Totaling together our Cash and Restricted Assets for the current
year we have$356,792 compared to the prior year's$331,470. Accounts Receivable
for the current year are $610,304 compared to the prior year's $301,828. Under
Liabilities, the Unearned Revenue Advanced Rent is up at$321,137 compared to the
prior year's $309,880. Unreserved Equity is at$398,008 compared to$366,072 for
the prior year.
Our Building Rental for the current period is better than budget by $25,237 and for
year to date it is better than budget by $39,621. Year to date Food and Beverage is
better than budget by $105,319. Equipment Rental is better than budget by $70,896.
Labor Service is better than budget by $41,992. Year to date Total Revenues are at
$2,606,172 compared to the budgeted amount of $2,332,638, which is better than
budget by$273,534 for Operating Revenues. Under Operating Expenses Utilities are
higher than budget by $5,183. Insurance/Bonding is higher than budget by $29,203
for an actual loss year to date of ($484, 237) compared to the budgeted amount of
($582,226) which leaves us better than budget by $97,988.
LEPFA Board of Commissioners Meeting
Page 5
February 25, 2003
After adding the City Contribution and Interest, we are better than budget by$96,234.
Commissioner Butler commented on the positive effect the Governor's inauguration
had on January's income statement. He also asked why Excess Revenue Over
Expenses is so much lower compared to last year. Marian noted October was a very
strong month with revenues in excess of$600,000, which put us in a much stronger
position for the last half of the year.
Committee Chairman Sinadinos moved that the monthly Financials for Oldsmobile
Park, the Lansing City Market and the Lansing Center for the periods ending
December 31, 2002 and January 31, 2003 be received as published, and further that
the monthly expenses for each entity be approved. SUPPORT: Commissioner
Janssen; the motion was unanimously approved.
C. PRESIDENT AND CEO'S REPORT:
1. Union Report: Peter noted there were no issues to report.
2. Lansing City Market: Linda Frederickson reported that both December and January
Rental Revenue was down compared to last year, but was up compared to the previous
year. She also noted that the Vendor's Association has assisted Management in re-writing
the vendor's lease, which was implemented in January 2003. The changes include an $8
monthly fee in April through December to help cover the utility costs. The food vendors
were made aware of the change in advance, and this is a part of a re-leasing strategy that
the Vendor's Association participated in and the changes for the other vendors were
implemented a year ago. Linda noted there currently is a lot of painting and sprucing up
of the Market and the Vendor's Association has purchased banners. Food re-leasing will
be a priority to improve and increase the food vendors, since the baker and the deli vendor
left last fall, since then we have added a Mediterranean cuisine vendor. In regard to
recruitment, Mark Ter Haar, the Market Manager, has met with Botma's, who were in the
Market last year and sell produce; the Shaffers from Alma who will sell produce and an
Amish vendor who will also sell.produce with the hope that they will fill the produce void
created by the Yeagers and the McNamaras retirement. In addition, vendors such as the
Woottons will pick up the seasonal flowers and John Decker continues to provide tree
business. Linda also reported that she has met with Kabeer, as she does each January, and
he is leasing on a month-to-month basis, and he has hired a consultant to help him improve
his business.
3. Oldsmobile Park: Peter noted that the auditing process continues for the 2001 season and
will begin for the 2002 season. There is a slight setback in that the head of the Finance,
who has been with the Lugnuts since 1996 is leaving. Operationally, maintenance projects
such as painting, carpet cleaning, and locker room improvements are underway. Peter
also noted that we have received approval from the LBA to proceed with replacing the
marquees on the corners of Michigan/Cedar and Michigan/Larch and the goal is to have
them replaced by the first of April/Opening day.
LEPFA Board of Commissioners Meeting
Page 6
February 25, 2003
Councilmember Allen asked if the sign will be in the same location, and Peter noted it
would. Commissioner Butler asked if there will be a sign on the Lansing Center? Peter
indicated that we are working with the City in that regard.
4. Lansing Center:
• December 2002: In December we hosted approximately 55 events, which equated
to 65 event days, attracting approximately 12,000, equating to 69 room nights for
an economic impact estimated at $170,000. Compared to December 2001, we
were up slightly in event days, down slightly in attendance, room nights and
economic impact, which is attributed to the mix of events.
• January 2003: In January we hosted 44 events, equating to 77 event days,
attracting a little over 26,000 in attendance, for 2,251 room nights for an
estimated economic impact of$734,000. Compared to January 2002 we were up
in event days, up in attendance by over 8,000, room nights were up by 1,100 and
up in economic impact by $141,000, which truly depicts how the mix of events
can impact the numbers.
• Sales Update: Spartan Stores food show will be returning in November 2003 and
in April and October 2004 which we are excited about because they were a long
time client that left our facility for Grand Rapids, and now it appears that they are
returning. After the 2004 dates they are considering the Grand Center and we are
working toward their return to the Lansing Center after 2004. We have settled
contract addendum language for the State Bar of Michigan and they will be hosting
their consolidated conference here in September 2003. Michigan Lumber and
Building Materials Association has signed contracts for 2004 and 2005. We have
delivered contracts to the Michigan Dental Association for 2006 and hope they
will return.
Other Business— it appears that we may be hosting a circus at the Lansing Center;
this circus will be at Cobo Hall and we are trying to coordinate a one-day stop in
Lansing on Thursday, March 20 for two shows. It is a three-ring circus, and
while we are a non-traditional venue, we are set up better than most arenas to
handle the circus. Our issues will be parking and routing their vehicles, which we
have discussed with parking. The set will be in a "U" shape and they will rent
bleachers for Halls A and B and they will provide their own advertising and
seating will be for 2,000 per performance.
"The Log Home Living Magazine Home Show" for June 2004, is a new show
with Wednesday through Monday dates.
• Event Highlights: In late January the Michigan Association of Drug Court
Professionals returned for a second year(out of the four years that the meeting has
taken place); the Great Lakes Ice Cream and Fast Food Show attracted over 300
people. The Toughman Contest was also hosted here for four out of the past seven
years and there were no issues.
At 9:00 a.m. Jim Ruff exited the meeting.
LEPFA Board of Commissioners Meeting
Page 7
February 25, 2003
Peter noted that in light of the death at the Soaring Eagle (Toughman), we held
numerous conversations with the promoter and he also noted that they are required
by the state to carry two additional forms of insurance and they met all of our
building requirements and the state regulations.
Councilmember Allen questioned if there is any injury or death are we in any way
responsible? Peter responded that they are required by the state to carry specific
insurance to address the issue. Also, our contracts require that they have
automatically indemnified us from any and all negative happenings unless it is
demonstrated that the building acted recklessly. Also two other levels of insurance
are instituted, which means there are three levels of coverage. In addition, the
promoter requires all participants to sign a document that they will not sue the
promoter in the event of death and measures are taken to protect the fighters
physically and a physician is on site.
Jim Smiertka clarified that over the past nine years we have not had one law
suit/claim at Oldsmobile Park or the Lansing Center. He also noted that there is
an "assumption of risk" clause in the contract, which waives liability and is
binding. Commissioner Butler commented that based on this conversation, he
attributes the history of claims to good management and making the right judgment
calls based on the type of events.
Peter reported that in early February we hosted the annual Motorcycle Swap Meet
on February 4; American Waterworks was in house on February 6 with about 600
attendees; Michigan Society of Association Executives was in house; on February
7-9 the Women's Expo, which was hosted by Kohler Expo had over 6,000
attendees and L&L was the sponsor. The Michigan Association of School Boards
was in house and Chairman McGuire noted that his son was the speaker for that
event. February 8-9 Diamond Quest(an Amway group) was in house with over
1,500 attendees; February 11 the Islamic Center of Greater Lansing was in house;
February 12 the Mother/Son— Daddy/Daughter Dance took place as a combined
event for the first time with increased attendance; February 12-13 Michigan
Concrete Paving was in house; February 14-16 the Central Michigan Home Show
was in the building and last week, Michigan Association of Broadcasters was in
house. Additional events include the Lion's Den and the House of Power and
Prayer churches which utilize space on a weekly basis. Receptions/dinners
included the Hope Scholarship Breakfast; the Cooley Law School's Barrister's
Ball; the American Legion; the Bea Christy Awards; and the James Butler
Retirement Reception.
• Upcoming Events: Upcoming events include the S. Abraham& Son tradeshow;
the Michigan Buggy Builders; Michigan Trucking Association; and the Golf
Show. Events in March include Standard Federal, Michigan Floral Association;
the Sportfishing, Boat and Travel Show; the Diana Awards, the Cesar Chavez
dinner; Taste of Blackness, the Lansing School District dinner; the Articat
Snowmobile Show; and the Deer and Turkey Spectacular.
LEPFA Board of Commissioners Meeting
Page 8
February 25, 2003
5. Common Ground: Peter reported that progress continues and the dates are July 8-13,
which is a Tuesday through a Sunday, and is commensurate with what we have done in the
previous three years. We are in need of volunteers and Peter noted that if the Board
members and/or if they know anyone that may be interested in volunteering, that they let
him know. He also noted that it appears that sponsorship revenue for Common Ground
will be down this year. The announcement of three to five acts will be in mid-March,
which will put us a month ahead of last year. We are also seriously considering a seventh
day (Monday) due to the availability of another act. The additional day will add value to
the common card and outweighs the costs.
6. Board Reappointments: Peter noted he has discussed with the Mayor the LEPFA Board
member reappointments of Cyril McGuire, Charlie Sinadinos and Charley Janssen.
Councilmember Sandy Allen requested the Event Day information.
D. PERSONNEL COMMITTEE: Committee Chairman James Butler reported that all of the
Union issues have been addressed. He also noted that he is extremely pleased with the closing
of the Forepersons negotiations, in that their contract has been ratified and signed. He noted it
was an extremely difficult negotiation process, but it appears that the members are pleased as
well. Chairman Butler commended Patrick on his new board position. Patrick noted that he
has been appointed by Mayor Mark Meadows to serve on the East Lansing Downtown
Development Authority effective February 12.
E. LONG RANGE PLANNING COMMITTEE: Chairman Janssen noted that due to the changes
in the administration and the economic concerns, and because one of the cornerstones to
expansion is state funding, the consultants have presented a number of scenarios. However,
until we know the political forecast, we continue to work on the various scenarios with them.
Peter reported that the consultants continue to work on the final report and when it is
completed, it will be presented to the Board.
Commissioner Butler asked when would we present the LEPFA budget? Peter noted it appears
if it may be next week, and he will give appropriate notice to the Board.
VII. COMMISSIONER AND STAFF COMMENTS:
1. Commissioner Sinadinos: Commissioner Sinadinos congratulated Commissioner Butler on his
retirement. Commissioner Butler noted his official last day is February 28, however he has
started his new position as the Vice President of the Broadband Developmental Authority, as
appointed by the Governor.
2. Commissioner James Butler: Commissioner Butler welcomed Jim Ruff and Councilmember
Sandy Allen to the Board and extended his appreciation for their participation. He also noted
in reference to his retirement reception that the service and the food was superb and indicated
that he was appreciative of all that was done on his behalf and the kindness that was extended.
He also commended Heidi on her process and precision in procedure to the extent that when a
person walks into or out of the meeting it is noted in the minutes.
LEPFA Board of Commissioners Meeting
Page 9
February 25, 2003
3. Commissioner Ellen Jeffries: Commissioner Jeffries welcomed Sandy Allen and Jim Ruff and
congratulated Commissioner Butler on his new position.
4. Commissioner Charles Janssen: Commissioner Janssen dittoed the previous commissioners'
comments. He also noted that there have been many articles in the paper on business travelers'
cutbacks in regard to conventions/expenditures and he commended Peter and the staff on
LEPFA's budget. He also noted and extended congratulations to Chef and Lisa Hadley on
their recent awards.
5. Commissioner Kate McNenly: Commissioner McNenly extended her congratulations to James
Butler.
6. Commissioner Denise Wootton: Commissioner Wootton welcomed Sandy Allen and Jim Ruff
and extended congratulations to James as well.
7. Councilmember Sandy Allen: Councilmember Allen noted that she was happy to be a part of
the LEPFA Board. She indicated that it has been an interest of hers since she has been on
Council and that she asked to be assigned to this group. She indicated further that it was a
pleasure meeting everyone and she will be attending the meetings regularly.
S. James Smiertka: Mr. Smiertka noted that there is no litigation and extended his
congratulations to James. He also noted the LBA is working with Peter on the marquee signs.
9. Chairman Cyril McGuire: Chairman McGuire extended his sincere congratulations to James
Butler on his retirement/transition. He also noted that it was nice to have Sandy on board.
Commissioner Butler asked Councilmember Allen to comment on the new Councilmember.
She noted his name is Randy Williams and he represents the Third Ward. She noted that he
was active in his neighborhood and was President of his Neighborhood Association. She also
commented that all of the candidates were extremely talented and it was a very difficult
decision. She also reported that Councilmember Williams(unless it takes too much time from
his family and/or job) as well as the other candidates plan to run in November.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:20 a.m. it was moved that the meeting be adjourned. Motion: Commissioner Sinadinos Second:
Commissioner McNenly, the motion carried.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, MARCH 25, 2003 AT 8:00
A.M. AT THE LANSING CENTER IN ROOM 203.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
MARCH 25, 2003
MINUTES
At 8:05 a.m. Chairman Cyril McGuire called the meeting to order in Room 203 of the Lansing Center; 333
E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: Ellen Jeffries, Cyril McGuire, Kate McNenly, and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: James W. Butler III, Tim Haggart, Charles Janssen, Sharon Peters,
Jim Ruff(Ex-Officio), Doug Rubley (Ex-Officio) and Denise Wootton.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Peter Sullivan, and Patrick Talty
- Lansing Entertainment and Public Facilities Authority. Sandy Allen and James Smiertka, City of
Lansing.
III. ESTABLISHMENT OF THE AGENDA:
The agenda was accepted as presented. MOTION: Chairman McGuire Second: Commi Sinadinos. Motion carried. ssioner
IV. PUBLIC COMMENT:
There was no public comment.
V. APPROVAL OF THE MINUTES OF FEBRUARY 25 2003:
The minutes of February 25, 2003 were adopted as presented. MOTION: Commissioner Sinadinos
SECOND: Commissioner McNenly, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman McGuire offered a measured moment of silence in
support of our troops and their families and for a speedy end to the conflict.
B. SECRETARY/TREASURER'S REPORT: Chair Sinadinos reviewed the following financial
statements as approved by the Finance Committee for the period ending February 28, 2003:
1. Monthly Financials - For the Period Ending February 28 2003: Chairman Sinadinos
reviewed the monthly financials as follows:
a. Lansing City Market: Building Rental for the current period is $2,597 compared to
$3,124 for the prior year and for year to date the amount is $32,956 compared to
$35,230. Parking Revenue for the current period is $5,822 compared to $9,898 for
last year. Total Operating Revenue for the current period is $8,454 compared to
$13,057 for the prior year and for year to date the total is $50,686 compared to
$55,943. Operating Expenses- Utilities for the current period are $3,957 compared
to $3,027 for last year and year to date the figure is $27,514 compared to $24,033.
Insurance/Bonding for year to date is $2,374 compared to $1,533. Total Operating
Expenses for the current period are $9,751 compared to $8,663 and year to date the
figure is $91,105 compared to $90,575. The Operating Loss for year to date is
($40,419) compared to the prior year's loss of($34,632). After taking into account
the City Contribution and Interest our Excess Revenues over Expenses for year to date
are$10,303 compared to$23,810 for the prior year. Our cash position for the current
year is $67,666, which exceeds the prior year's amount of$54,861. Total Accounts
LEPFA Board of Cpmmissioners Meetirzg
Page 2
March 25, 2003
:.Receivables for the current year are $85,202 compared to$72,996 for the prior year.
-Our Unreserved Equity is $168,646 compared to $153,214. Under Budget versus
_Actual, Total Operating Revenue for year to date is $50,686 versus the budgeted
amount of$42,414, which is better than budget for year to date by $8,272.
Under Operating Expenses, for year to date, Utilities are higher than budget by
($7,514). Insurance/Bonding is higher than budget by ($1,006). Under Operating
Expenses, overall we are better than budget by$9,919. After netting Expenses against
Revenues we are better r than budget by$18,191. After adding in the City Contribution
and Interest, we have o variance better than budget in the amount of$15,117,
b Oldsmobile Park: We have Event Revenues of$15.92 (interest) and Event Expenses
of$5.00 (a bank fee) for$10.92, which was applied to the Event Development Fund.
Utilities for the currerit period are $5,982 compared to the previous year's amount of
$4,991 and year to date the amount is$39,901 compared to$38,163 for the prior year
for a difference of$1 ,'738. Insurance/Bonding for year to date is$37,866 compared to
the prior year's amount of $23,733. Maintenance of Facilities for year to date is
$13,427 compared to -%5,055 for the prior year, which is due to structural repairs and
maintenance of the HVAC system. Current period expenses are ($15,992) compared
to the prior year's amount of($15,952). Total Operating Expenses for year to date are
($161,331)compared to($160,597) for the prior year. The bottom line loss is($1,529)
compared to the prior year's Income of$9,808.
Our Total Cash position for the current year is $171,512, which exceeds the prior
year's amount of $156,292. The Net Event Development Fund is $52,709, which
exceeds the prior year' s amount of$49,960. Unreserved Equity for the current year is
$99,275 compared to t1he prior year's amount of$99,536.
At 8:27 a.m. Jim Smiertka entered the meeting.
Year to date Utilities are more than budget by($177.30). Insurance/Bonding is higher
than budget by ($15,570) for an Operating Expense of$16,910. After adding the City
Contribution and Inteee st, we are better than budget by $14,712.
C. Lansing Center: Using the benchmark of $500,000 February was a good month.
Building Rental for the current period is $137,657 exceeding the prior year's amount
of $136,845 and year to date the amount is $652,294 compared to the prior year's
amount of$633,196. Food and Beverage for the current period is$329,672 compared
to $296,325 for the prior year and year to date the figure is $1,841,194 compared to
$1,653,181 for last year, which is up by about $188,000 for the year to date.
Equipment Rental was down for the current period, but is up for year to date at
$354,642 compared to $300,099. Tradeshow Utilities are up for year to date at
$108,429 compared to $94,406. Labor Services are up for the current period and for
year to date the figure is $133,916 compared to $99,912. Total Operating Revenues
for the current period are $553,693 compared to$517,754 and the figure for year to
date is $3,159,866 versus $2,856,462. Under Operating Expenses -Salaries/Wages
are up about$39,500 due to part time labor as are Fringes/Related Costs. Utilities for
year to date are$388,988 compared to$371,410 for the prior year. Insurance/Bonding
for year to date is $87,090 compared to $54,077.
LEPFA Board of Commissioners Meeting
Page 3
March 25, 2003
Food and Beverage expense for year to date is $1,137,108 compared to $1,075,630
for the prior year. Total Operating Expenses for the current period are $487,571
compared to$441,858 for last year. Year to date Operating Expenses are$3,577,952
compared to$3,339,204. After adding in the City Contribution and Interest we have a
year to date income of$42,354 compared to a loss of($157,915) for the prior year.
Totaling together our Cash and Restricted Assets for the current year we have
$550,266 compared to the prior year's$405,536. Accounts Receivable for the current
year are $510,032 compared to the prior year's $381,955. Under Liabilities, the
Unearned Revenue Advanced Rent is up at $318,374 compared to the prior year's
$312,536. Unreserved Equity is at $503,983 compared to $468,105 for the prior
year.
Under Budget versus Actual - our Building Rental for year to date has a variance
better than budget by$35,019. Year to date Food and Beverage is better than budget
by $133,694. Equipment Rental is better than budget for year to date by $54,850.
Labor Service is better than budget by $43,282. Year to date Total Operating
Revenues are at$3,159,000 compared to the budgeted amount of $2,858,000, which
is better than budget by $301,767. Under Operating Expenses Salaries/Wages were
higher than what was budgeted by ($8,201) for year to date, as were Fringes by
($9,738). Utilities are higher than budget by $11,356. Insurance/Bonding is higher
than budget by $30,698. Total Operating Expenses for year to date are $3,577,952
compared to the budgeted amount of $3,369,587 which is higher than budget by
($208,365). After netting expenses against revenues, we have a variance better than
budget of$93,401. After taking into account the City Contribution and Interest,we are
better than budget for year to date by $90,148.
At 8:20 a.m. Jim Smiertka entered the meeting.
Committee Chairman Sinadinos moved that the monthly Financials for Oldsmobile
Park, the Lansing City Market and the Lansing Center for the period ending February
28, 2003 be received as published, and further that the monthly expenses for each
entity be approved. SUPPORT: Commissioner Jeffries; the motion was unanimously
approved.
C. PRESIDENT AND CEO'S REPORT:
1. Union Report: Peter noted there were no issues to report.
2. Lansing City Market: Linda Frederickson reported that the Vendor's Association had
voted to accept"Winter Hours" for the months of January, February and March and this is
the last week for the winter hours (10:00 a.m. - 5:00 p.m.) regular hours of 8:00 a.m. -
6:00 p.m. will resume on April 1. February rent revenue and occupancy were down
slightly, but are even with 2001. Linda reviewed the informational Market documents that
were distributed at the meeting. The first sheet highlighted the accomplishments in 2002
and states the strategies for 2003 recruitment and beautification. A color-coded 2003
leasing map, as well as a comparative analysis of the various other markets in the region
was also included, and she noted that for the type of Market we are, we are the most
affordable for current tenants in the market. Linda noted she would be happy to address
any questions.
LEPFA Board of Commissioners Meeting
Page 4
March 25, 2003
Regarding advertising, Melissa Steelman, LEPFA's Marketing Manager has already met
with media representatives and is reviewing proposals for billboard, radio and television
and the spring campaign will begin in mid-April and the electronics and billboards will be
posted beginning May 1.
In regard to special events and promotions, planning is underway for the City Market's
involvement in traditional city events such as hosting "Adopt A River," "Neighborhoods
in Bloom" and "Be a Tourist . . ." on May 31. Mark is currently developing a schedule
of Saturday entertainment for a family friendly atmosphere from May through July from
10:00 a.m. to 2:00 p.m. on Saturdays.
In regard to beautification, interior painting continues with a total of 20 spaces being
painted and we are looking into repairing a gate and fencing in the south courtyard. Bulbs
will be added to the flowerbeds in our ongoing landscaping to spruce up our curb appeal at
the north and south courtyard.
3. Oldsmobile Park: Peter noted that maintenance projects continue in anticipation of the
upcoming season, which includes painting and carpet cleaning. Opening Day is April 3 at
7:05 p.m. We continue to work on the replacement of the back lit marquees on the
corners of Michigan/Cedar and Michigan/Larch and they should be up and operating by
opening day which is April 3. In April we will host a number of events at the stadium
including Michigan State University Baseball for three separate series, and they are MSU
versus Western Michigan University; MSU vs. Michigan; and MSU versus Central
Michigan on April 16, 18, and 23. We will also host the March of Dimes Walk America
event on April 26.
4. Lansing Center:
• February 2003: In February we hosted 56 events, equating to 83 event days,
attracting a little over 28,000 attendees, for 1,450 room nights for an estimated
economic impact of$720,000.
• Sales Update: Michigan Art and Education Association is returning for their
annual conference in October, 2006. The National Caged Bird Show has booked
for November 2004, with approximately 600 hotel rooms and will include a bird
competition, and exhibits. The Michigan Association of School Boards confirmed
their return to the Lansing Center for March 2005 and it appears that we might be
included in their rotation.
Other Business — We have booked a new show called "The Log Home Living
Magazine Home Show" for June 2004. We will also be hosting another new event
in conjunction with WLNS entitled "Big Boy Big Toy Sale" which will be held
Easter weekend and will include big boy toys such as big screen televisions,
snowmobiles, etc.
• Event Highlights: In past thirty days we have been very busy and have hosted the
Golf Show for the fifth year in all three halls, with over 6,700 people attending the
event.
LEPFA Board of Commissioners Meeting
Page 5
March 25, 2003
March 1 Michigan Farm Bureau was in house with over 600 people attending their
employee dinner; for the second time on March 4 Standard Federal Bank hosted
their offsite employee business meeting which was attended by over 1,500
employees in Halls A and B and was produced by Jimmy Whiteside Productions
and was the largest stagehand call for this facility with 32 stagehands called. The
event featured indoor fireworks and it went off without issues. Michigan Floral
returned for their fifth year at the Lansing Center, and attracted over 600
attendees. The Sportfishing Boat and Travel Show returned for their eight-year,
this is our second largest consumer show, attracting just over 11,000 people.
Peter noted the past week was one of the busiest in the past three years beginning
with Bassette and Bassett Law Firm Education Dinner, which featured Richard
Holbrook. Tuesday and Wednesday Delphi/Matchmaker, a first time event, which
involved automotive suppliers/manufacturers together with minority business
entrepreneurs interested in the automotive industry. This was the eight annual
meeting, but was the first time in Michigan (previously it was held in Dayton
Ohio). The Mayor and Representative Garcia, addressed attendees and the
featured speaker was Steadman Graham. Over 1,000 people attended the event,
which was a significant increase over last year.
March 19 we hosted the Diana Awards for over 400 people. Thursday we hosted
the Sterling Reed Circus, and it was the first time it had been hosted in the facility
with over 4,600 people attending the sold out shows. Peter noted if we were to do
the event again we would handle ticketing differently, i.e. the coupon distribution,
which Peter discussed. Friday night we hosted the eighth annual Cesar Chavez
Dinner for 1,200 people in Hall C; the event continues to grow, last year it was in
the ballrooms and it moved to Hall C this year. Saturday we hosted "A Taste of
Blackness" for the fourth year in the ballrooms and featured a variety stage show,
a talent contest entitled "Keepin It Real," as well as a vendors market and
"Grandma's Soul Food Kitchen." About 1,000 people attended the variety show
and the after party sold out at 3,000 people and there were no issues. On Sunday
we hosted the Lansing School District Showcase for the second year with over
1,000 people attending the event in Hall A.
• Upcoming Events: Upcoming events include our largest consumer show,the Deer
and Turkey Spectacular this weekend; Autowares, the Book and Paper Show;
Michigan Works!; the MSU Teachers Job Fair; Lansing Squares; our largest
conference, the Michigan Safety Conference; Showbiz Talent and the Diocese of
Lansing's Youth Jamboree.
5. Common Ground: Peter noted the opening round of talent was announced last Tuesday by
Kevin Meyer and Peter on numerous radio and television stations. On Wednesday we
were on the front page of the "Entertainment" section of the Lansing State Journal and it
was all positive. The following acts were announced: Boston, the Allman Brothers,
Travis Tritt, Meatloaf and Joe Cocker; with many more acts to be named and announced.
This announcement was 5-6 weeks ahead of last year's announcement and we remain
cautiously optimistic in terms of solidifying additional talent. Peter also noted that they
announced that the festival will be seven (7) days this year (July 7-13) as well.
LEPFA Board of Commissioners Meeting
Page 6
March 25, 2003
Efforts continue in terms of sponsorships, which we estimate will be down this year due to
the economy. Two new features include a portable skybox, which is a large 18 wheeler
that opens into a skybox and can seat 50 people in a tented, air conditioned lounge/catering
area on the first level, which includes a restroom, and the second level is tiered with a tent;
it will hold 50 people and has an elevator to meet ADA requirements. The skybox has
been rented for six of the seven nights at a cost of $3,000, which includes 50 tickets,
parking passes and catering is extra. It will be positioned on the field facing the west main
stage. The second addition is the "Uncommon Club" which is a VIP Club and is similar
to other festival clubs. We will sell up to 50 memberships to the club which will include a
seven day pass; premium seating next to the stage; VIP parking; a separate entrance to the
festival; complimentary food each night from 5:30—7:30 p.m. and$15 worth of food and
beverage coupons. This was developed in response to people who wanted to "buy" their
way into the VIP Oasis and to-date we have received a lot of positive feedback. The cost is
$250 per ticket for the seven days.
D. PERSONNEL COMMITTEE: No report.
E. LONG RANGE PLANNING COMMITTEE: No report.
VII. COMMISSIONER AND STAFF COMMENTS:
1. Commissioner Sinadinos: Commissioner Sinadinos noted that everyone at the Knight Cap is
excited about Common Ground.
2. Commissioner Kate McNenly• Commissioner McNenly noted she has received very good
feedback on Common Ground.
3. Councilmember Sandy Allen• Councilmember Allen noted that she was amazed at how the
Cesar Chavez dinner food was distributed for such a large number and she noted that it was
very well done. Peter noted that everyone worked with us and the tables were released in an
orderly fashion and everyone was served within 25 minutes.
At 8:50 Commissioner McNenly and Commissioner Jeffries exited the meeting.
4. James Smiertka: Mr. Smiertka noted that there is no litigation or claims; and the Mayor's
budget was presented at Council last night.
5. Patrick Talty: Patrick noted that in the lower lobby mats have been added to give the area a
softer feel and we have received many compliments. Peter noted it is a nice operational
addition for the winter because it keeps the area cleaner.
Councilmember Allen asked if we have wheelchairs available on site? Peter noted we do have
and people should call for them in advance if they are able.
6. Chairman Cyril McGuire. Chairman McGuire noted he is hearing a lot of good things about
Common Ground. He also had an individual that was interested in volunteering.
LEPFA Board of Commissioners Meeting
Page 7
March 25, 2003
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 8:55 a.m. it was moved that the meeting be adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, APRIL 22, 2003 AT 8:00
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
' ` 1 APRIL 22, 2003
1 ui,4 Za i 'l MINUTES
,M.m. Chairman Cyril McGuire 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, Charles Janssen, Ellen Jeffries, Cyril McGuire,
Kate McNenly, Sharon Peters, Doug Rubley(Ex-Officio), Jim Ruff(Ex-Officio), Charlotte Sinadinos and
Denise Wootton.
COMMISSIONERS EXCUSED: Tim Haggart.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson,Peter Sullivan, and Patrick Talty
- Lansing Entertainment and Public Facilities Authority. James Smiertka, City of Lansing.
III. ESTABLISHMENT OF THE AGENDA:
The agenda was accepted as presented. MOTION: Commissioner Janssen Second: Commissioner
Sinadinos. Motion carried.
IV. PUBLIC COMMENT:
There was no public comment.
At 8:02 a.m. Commissioner James W. Butler III entered the meeting.
V. APPROVAL OF THE MINUTES OF MARCH 25, 2003:
The minutes of March 25, 2003 were adopted as presented. MOTION: Commissioner Butler
SECOND: Commissioner Wootton, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman McGuire noted the May meetings will move to due to the
holiday. The Finance Committee meeting will take place on Tuesday, May 27 at 4:00 p.m.
and the monthly Board of Commissioners meeting will take place on Wednesday, May 28 at
8:00 a.m. and he asked all present to note the change.
At 8:03 a.m. Jim Ruff and Commissioner Ellen Jeffries entered the meeting.
B. SECRETARY/TREASURER'S REPORT: Chair Sinadinos reviewed the following financial
statements as approved by the Finance Committee for the period ending March 31, 2003.
1. Monthly Financials - For the Period Ending March 31, 2003: Chairman Sinadinos
reviewed the monthly financials as follows:
a. Lansing City Market: Building Rental for the current period is $2,892 compared to
$3,405 for the prior year and for year to date the amount is $35,848 compared to
$38,635, which is down about$2,787. Parking Revenue for year to date is $17,207
and is down compared to the prior year's amount of $20,223. Total Operating
Revenue for year to date is$53,613 compared to$59,383 for the prior year, which is
down by approximately$5,700. Operating Expenses— Utilities for the current period
are $3,110 compared to $2,872 for last year and year to date the figure is $30,624
compared to $26,906.
LEPFA Board of Commissioners Meeting
Page 2
April 22, 2003
Insurance/Bonding for year to date is $2,627 compared to $1,724. Total Operating
Expenses for year to date are $100,887 compared to $99,350 for the prior year. The
Operating Loss for year to date is ($47,274) compared to the prior year's loss of
($39,967). After taking into account the City Contribution and Interest our Excess
Revenues over Expenses are$7,211 for year to date compared to$22,776 for the prior
year.
The cash position is up for the current year at$60,243 compared to the prior year's
amount of$34,677. The Accounts Receivables, including the amount to the Lansing
Center is at $85,874 compared to the prior year's amount of$72,966. Unreserved
Equity is $165,553 compared to the prior year's $152,181.
At 8:08 a.m. Doug Rubley entered the meeting.
Under Budget versus Actual, the Building Rental for year to date is$35,848 compared
to the budgeted amount of $33,649, which is better than budget by $2,199. Our
Parking Revenues are better than budget by$5,379. Total Operating Revenue for year
to date is$53,613 versus the budgeted amount of$45,792, which is better than budget
for year to date by $7,821.
Under Operating Expenses - for year to date Utilities are higher than budget by
($8,124). Marketing is better than budget and is attributed to a timing issue.
Insurance/Bonding is higher than budget by ($1,088). Total Operating Expenses are
better than budget by $12,085 for year to date and after netting Expenses against
Revenues we are better than budget by$19,906. After adding in the City Contribution
and Interest, we are better than budget by $16,443.
b. Oldsmobile Park: The Event Revenues are$17.66 (interest) and Event Expenses are
$106.52 (bank fees and hand stampers) for an income loss of ($88.86), which was
deducted from the Event Development Fund. Utilities for the year to date are$43,183,
which exceeds the prior year's amount of$41,320. The Maintenance of Facilities for
year to date is $13,627 compared to $7,143 for the prior year, which is due to
concrete and HVAC repairs. Insurance and Bonding for year to date is at $41,592
compared to $26,699 for the prior year. Total Operating Expenses for the current
period are $14,792 compared to $20,004 for last year and year to date the Operating
Expenses are $176,070, which is less than the prior year's amount of $180,601.
Taking into account the City Contribution and Interest, we have excess revenues of
$3,613 for year to date compared to $9,901 for the prior year.
Commissioner Butler questioned the difference in the Concessions/Catering year to
date figure for the prior year? Marian noted that the $10,000 was reimbursed by the
City for signboards and concessions equipment at Oldsmobile Park and was a one-time
reimbursement for enhancements at Oldsmobile Park.
Our Total Cash position for the current year is $72,905, which exceeds the prior
year's amount of $123,672. The Net Event Development Fund is $52,620, which
exceeds the prior year's amount of$49,984. Under Liabilities, Accounts Payable are
$10,321 compared to the prior year's amount of$67,130 (which is due to the suites).
Unreserved Equity for the current year is $104,329 compared to the prior year's
amount of$99,652.
LEPFA Board of Commissioners Meeting
Page 3
April 22, 2003
Under Budget versus Actual, year to date Utilities are better than budget by $1,651.
Insurance/Bonding is higher than budget by($16,509). Total Operating Expenses are
$176,070 compared to the budgeted amount of$197,834 which is better than budget
by$21,763. After taking into account the City Contribution and Interest, we are better
than budget by $19,197.
c. Lansing Center: Using the benchmark of $500,000, March was a good month.
Building Rental for the current period is $137,090,which is less than the prior year's
amount of$141,590 and year to date the amount is $789,384 compared to the prior
year's amount of$774,787. Food and Beverage for the current period is $338,060
compared to $367,668 for the prior year and year to date the figure is $2,179,255
compared to $2,020,849 for last year. Total Operating Revenues for the current
period are $656,956 compared to the prior year's current period $643,930 and the
figure for year to date is$3,816,842 versus$3,500,392. Under Operating Expenses-
Utilities for the current period are$57,833 compared to$49,234 for last year and for
year to date they are $446,822 which exceeds the prior year's amount of$420,645.
Insurance/Bonding for year to date is $96,674 compared to $60,847.
At 8:14 a.m. Commissioner Sharon Peters entered the meeting.
Food and Beverage expense for year to date is $1,312,467 compared to $1,253,391
for the prior year. Total Operating Expenses for the current period are $560,533
compared to$481,964 for last year. Year to date Operating Expenses are$4,138,486
compared to$3,821,168 for an Operating Loss very similar to last year of($321,644)
compared to last year's loss of($320,776). After adding in the City Contribution and
Interest we have a year to date income of $170,117 compared to the prior year's
amount of$30,185.
After combining Total Cash and Restricted Assets for the current year we have
$565,667 compared to the prior year's$301,716. Accounts Receivable for the current
year are$540,804 compared to the prior year's$534,735. Under Liabilities Accounts
Payable are$272,969 compared to last year's amount to$197,574. Unearned Revenue
Advanced Rent (an indicator of future business) is $292,519 compared to the prior
year's $291,684. Unreserved Equity is at $631,746 compared to $656,206 for the
prior year.
Under Budget versus Actual-our Building Rental for the current period was less than
what was budgeted by($13,093)but for year to date they were better than budget by
$21,926. Food and Beverage was better than budget by$33,161 and for year to date
was better than budget by$166,856. Total Operating Revenues for the current period
are$656,976 compared to the budgeted amount of$536,985 for a variance better than
budget of$119,991. For year to date our Revenues are $3,816,842 compared to the
budgeted amount of$3,395,083 for a variance better than budget of$421,759. Under
Operating Expenses - Salaries/Wages were higher than what was budgeted by
($33,763) which was attributed to part time labor; and for year to date, Salaries and
Wages were $1,242,604 compared to $1,200,639 which is ($41,965) higher than
budget and was attributed to stagehand and other labor service. Utilities for the current
period are higher than budget by $10,629 and for year to date they are higher than
what was budgeted by ($21,986). Insurance/Bonding is higher than budget by
LEPFA Board of Commissioners Meeting
Page 4
April 22, 2003
$33,233 for year to date. Total Operating Expenses for the current period are higher
than budget by ($99,939) and for year to date they are higher than budget by
($308,305). After netting expenses against revenues, we have a variance better than
budget for year to date of$113,453. After taking into account the City Contribution
and Interest, we are better than budget for year to date by $100,196.
Commissioner Butler asked for clarification regarding the Insurance/Bonding, and
whether it was more than anticipated? Peter clarified that when the budget was
compiled, it was not known at that time that we would receive a large increase. He
noted that we have been working with the City and through the efforts of Doug Rubley
we were actually able to reduce our premium by $10,000412,000 and this year we
believe we have budgeted closer to what the reality will be, and we hope to know in
late May or June.
Committee Chairman Sinadinos moved that the monthly Financials for Oldsmobile
Park, the Lansing City Market and the Lansing Center for the period ending March
31, 2003 be received as published, and further that the monthly expenses for each
entity be approved. SUPPORT: Commissioner Jeffries; the motion was unanimously
approved.
C. PRESIDENT AND CEO'S REPORT:
1. Union Report: Peter noted there were no issues to report.
2. Lansing City Market: Linda Frederickson noted March Rental Revenue was down slightly
compared to last year; however we are within 1-2 percentage points for 2001. April 1 the
Market returned to their regular hours of 8:00 a.in. until 6:00 p.m. for the four days. She
also noted that there are no compliance issues with the vendors. With the assistance of the
Operations Department, the walls in 18 of the vendor's space have been painted; floors
have been painted in 10-12 of the spaces, with 8 remaining. She also noted that
Operations is reviewing quotes on rebuilding/replacing the south courtyard fence and
gutters.
Linda noted in regard to recruitment, they have a new produce vendor, Wilber
Hochstetler, who began as a Saturday vendor and will be at the Market 2-3 days per week
with the exception of the planting season.
In regard to the Marketing Plan, the spring media buy has been placed ($8,000) and will
begin the first part of May, which will include billboard, radio, and television. The radio
buy will include Citadel stations as well as the Michigan Radio Group and our television
has been expanded to include WLNS and this year, for the first time, we have bought
space on Comcast Cable and have bought spots on HGTV.
In regard to entertainment, we had a nice follow up article regarding the talent in the
Lansing State Journal (Linda passed around the article). Linda noted Mark Ter Haar is
working on the entertainment schedule for the Saturday's in the summer and has varying
levels of entertainment through mid-August including Ron Embry.
Commissioner James Butler suggested that we invite the Mayor to the Market for one of
the events at the Market.
LEPFA Board of Commissioners Meeting
Page 5
April 22, 2003
3. Oldsmobile Park: Peter noted that maintenance projects continue at the stadium. Opening
Day(April 3)lasted for two batters before the game was cancelled. The game was the first
"Thirsty Thursday" scheduled which are games where the Lugnuts offer discounts on
beverages and certain food items. To-date the Lugnuts have had six home rainouts.
We have hosted a number of events at the stadium including MSU versus WMU last week,
as well as MSU versus the University of Michigan on Friday, April 18. Tomorrow we
will host MSU versus CMU and the March of Dimes Walk America on April 26.
4. Lansing Center: For the month of March, we hosted 55 events, equating to 78 event days,
attracting close to 50,000 people through our doors, for approximately 1,461 room nights
with an estimated economic impact of close to$743,000. March was also the conclusion
of the third quarter and in comparison to last year, we were up in event days; attendance
increased by 4,000 and the economic impact was up by $725,000. October and March
continue to be our strongest months.
• Sales Update: We have issued a contract to Longaberger Basket for a September
2003 event and this is a brand new event. We have received confirmation from
the Michigan Association of School Boards for their 2005 annual convention in
October 2005. We had a site tour with the General Regular Baptists who will
recommend that they host their annual convention here in 2006. We have met
with mid-Michigan Radio Group to discuss the possibility of an Octoberfest in at
the Lansing Center.
Confirmed/Repeat Business includes Michigan Ground Water Association for
March, 2005 and J. Mollema and Son for their October 2004 and 2005 shows.
We have rebooked the MSU Teacher's Fair for April 2004, 2005, and 2006. The
greater Lansing Catholic Education Foundation has rebooked their Lansing
Squares event for April, 2004.
• Other Business—Peter noted this past weekend(Easter weekend)we hosted a first
time event entitled the "Big Boy Big Toy Sale" which attracted about 3,000
attendees and was well advertised. The promoter was given"kudos" for filling all
three exhibit halls with a great deal of higher end fun items. He is considering a
return for next year.
• April Event Highlights: Autowares was in house for the third year attracting about
2,000 attendees for a one-day show. Mid-Michigan Antiquarian Book and Paper
Show was in house with 1,500 attendees. Michigan Works! Job Fair was in
house with over 2,000 attendees and 40 exhibitors. Michigan Respitory Care was
in house for the first time. The Michigan State University Teacher Fair returned
for a second year in Hall A. April 12 Skills USA — VICA statewide competition
for High School students (skills competition in masonry, carpentry, computer,
plumbing, and electrical) was in house with over 1,000 students attending. April
16 and 17 the Michigan Safety Conference was held over two days with over
5,600 attendees, and the group will return in 2003 and is our largest trade show.
Michigan Interscholastic Press Association was also in house, attracting 1,600
students.
LEPFA Board of Commissioners Meeting
Page 6
April 22, 2003
• _Upcoming Events: Upcoming events include ShowBiz Talent; Diocese of Lansing
Youth Jamboree; and the Wally Byum contract signing which will include a press
conference on April 29 and will include the Mayor.
5. Common Ground: Peter noted since the last Board meeting we have only announced one
act; David Lee Roth and he will be performing on Friday. We are waiting for
confirmation on a variety of other acts. Peter reminded the Board that last year we did not
announce any acts until May. Sales as of Friday are ahead of last year, and we continue
our efforts to acquire sponsorships; however, we are forecasting sponsorships to be down
due to the economy; nonetheless we continue to receive positive feedback and we continue
to meet with a number of the volunteer nonprofit groups.
6. Lansing Center Expansion Update: Peter noted that we completed a "Master Plan
Expansion Report" in late 1999 and 2000 and reported on it to the Board, the
administration and Council and had positive feedback. Since that time we have been
working with consultants on strategies on how to fund the expansion. Peter reminded the
Board that the report called for an immediate expansion and had that occurred; the
expansion would have been completed by now. We looked at expansion in order to
remain competitive with Grand Rapids in particular. Peter noted Grand Rapids'
expansion, which is underway will double their space and create a state of the art facility;
with portions of the building to be open in late 2003 and the entire building open in early
2004. Peter noted we need to consider something, and suggested at least a facelift,
because the Sales Team and the CVB are running into sensitivities in terms of business.
Peter noted sooner rather than later we need to sit down with the City to discuss funding,
i.e. Act 99 or the Capital Program to see what is available.
D. PERSONNEL COMMITTEE: Committee Chairman James Butler noted that there are three
recommendations he would like to make. He commented that it is time to begin reviewing
employee/executive's contracts to make sure we are ahead of the curve in terms of expiring
contracts in need of Personnel Committee review. He also noted a mini employee survey
might be a possibility to understand the employees and make sure all is well. He also noted we
need to keep our eyes on diversity, especially in terms of leadership and executive positions
Chairman Butler also indicated that if anyone has any other areas of concern, to let the
Committee members know.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Charles Janssen reported
that a meeting occurred on April 21 with Patrick Talty, Peter Sullivan, Tim Haggart, Charles
Janssen from LEPFA; Pat Cook from EDC; Tom Galyon and Pat Clark from the CVB and the
consultants. The consultants were asked to review all the possible financing options including
private funding, city and state contributions, and naming rights, "Sin Taxes," food and
beverage taxes, car rental, bed taxes, as well as the general revenue fund. The consultants
have been reviewing the funding sources versus the revenue and he also noted that we don't
have good regional support and that there is a sensitivity when it comes to taxes.
Commissioner Janssen noted they have received a preliminary report with a number of
alternatives and now we need to sit down with the various Board members to share the findings
and we need to keep to the City Council and the Mayor advised of the process.
LEPFA Board of Commissioners Meeting
Page 7
April 22, 2003
Chair Janssen noted once we have input from the EDC, the CVB, and the LEPFA Board, then
we will go to the Mayor's office and Council with a recommendation and/or seek additional
input. He also commended the consultants on a great job noting they researched state and local
laws on what we can/can't do, voting, etc. He also noted that he felt the committee is making
good progress, and its now a matter of looking at the options, bringing folks in on the process
and developing a plan.
Jim Smiertka questioned if the committee was considering a hotel component to the expansion?
Chair Janssen noted the core plan does not include that as an option. Smiertka then questioned
how the expansion would be viable without the additional hotel space? Peter noted that topic
was discussed at length and is an issue of financing also. Another option discussed was the
Radisson expanding and it was noted that the Radisson has a plan.
At 8:55 a.m. Doug Rubley and Jim Ruff exited the meeting.
Committee Chair Janssen noted that clearly this is an issue and the consultants indicated that a
vast majority of convention centers/hotels has been publicly financed. He noted that we also
believe that its preferable to have everything lined up in the beginning; however, we must
move ahead, and its not absolutely critical for the viability of the expansion but it is hoped that
things would "shake out" in terms of forcing the issue.
VII. COMMISSIONER AND STAFF COMMENTS:
1. Commissioner Butler: Commissioner Butler asked Marian if she had filled the finance position?
Marian noted she has and the candidates name is Richard Gonzales. Richard's first day is
Monday, April 28 and he comes to LEPFA from Cristo Rey and the State of Michigan.
Commissioner Butler questioned if we have any other staffing issues at this time? Peter noted
we are currently fully staffed and we have used a number of temps, including a higher level
CPA to assist the Finance Department. A long-term maintenance person left about a month
ago and has been replaced. He also asked what is ShowBiz Talent as listed on the summary
sheet? Patrick explained that it is a dance competition for children ages 3-12 and it brings
about 1,5000 people to the Lansing Center. Commissioner Butler noted he shared Peter's
concern regarding the upgrades, and maintenance to the Lansing Center. He clarified by
stating that there is a difference between being "out gunned" due to facility size, but when we
are not competitive due to issues such as carpet and equipment, we need to seriously focus on
these issues. He asked if the City has a "Capital Improvement Fund," where we could include
the Lansing Center and noted it is something we need to look at so we can get it done and be
competitive.
Jim Smiertka noted under the City's budget act, every three(3)years the City has to compile a
"Capital Improvement Plan" and it can be amended every budget year; also, Act 99 financing
is a permissible method that is limited to 2% of your assessment value overall and is basically a
bank loan limited by the law. Commissioner Butler questioned if it is possible to have the
Lansing Center under a Capital type improvement plan. Commissioner Butler clarified that he
would like to have some idea as to what can and cannot be done.
LEPFA Board of Commissioners Meeting
Page 8
April 22, 2003
Peter noted we have issues that need to be taken care of i.e. concrete, folding doors, carpet,
etc. and that we are going to use commercial carpet squares which is what most facilities of
this nature are using. Also, we are in the process of purchasing another very good carpet
extractor and he indicated that if we replaced the carpet it would not have to be replaced for
approximately ten years, especially if routine maintenance is maintained. Peter noted if we
have the opportunity to replace carpet we should do it.
2. Commissioner Charlotte Sinadinos: Commissioner Sinadinos questioned if and when LEPFA
shares the suites if it would be possible to have a Board member gathering in the suite.
3. James Smiertka: Mr. Smiertka noted that there is no litigation or claims.
4. Marian Bryant: Marian reminded everyone that it is Administrative Professionals Week and to
be mindful and supportive of those who support us.
5. Commissioner Denise Wootton: Denise noted it is good to be back.
6. Commissioner Sharon Peters: Commissioner Peters indicated that she wasn't on board last
month for the discussion of Common Ground and noted that she is excited about us being
ahead of the curve as well. She commented that given the community that we serve she is
hopeful that we are able to develop some acts that will attract African American and Hispanic
populations. Chair McGuire indicated that Commissioner Peters had mention this previously.
Commissioner Peters indicated that she wasn't here last month, but that the current roll out
brought those comments out and she noted further that she is certain the matter it is on the
plate.
7. Commissioner Ellen Jeffries: Commissioner Jeffries concurred with Commissioner Sinadinos'
comments.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:12 a.m. it was moved that the meeting be adjourned. Motion: Commissioner Sinadinos Second:
Commissioner Butler.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR WEDNESDAY, MAY 28, 2003 AT 8:00
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
MAY 28, 2003
MINUTES
At 8:02 a.m. Chairman Cyril McGuire 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, Tim Haggart, Ellen Jeffries, Cyril McGuire, Kate
McNenly, Doug Rubley (Ex-Officio), Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Charles Janssen, Sharon Peters, and Jim Ruff(Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Peter Sullivan, and Patrick Talty
- Lansing Entertainment and Public Facilities Authority; Sandy Allen and Harold Leeman, Lansing City
Council; and James Smiertka, City of Lansing.
III. ESTABLISHMENT OF THE AGENDA:
The agenda was accepted as presented. MOTION: Commissioner Sinadinos Second:
Commissioner McNenly. Motion carried.
IV. PUBLIC COMMENT:
There was no public comment.
V. APPROVAL OF THE MINUTES OF APRIL 22, 2003:
The minutes of April 22, 2003 were adopted as presented. MOTION: Commissioner Sinadinos
SECOND: Commissioner Haggart, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman McGuire noted calls will be placed during the month
from the Nominating Committee to find out were the interest lies in terms of officers for the
upcoming year and a report will be made in June.
B. SECRETARY/TREASURER'S REPORT: Chair Sinadinos reviewed the following financial
statements as approved by the Finance Committee:
1. Monthly Financials - For the Period Ending April 30, 2003: Chairman Sinadinos
reviewed the monthly financials as follows:
a. Lansing City Market: Building Rental for the current period is $3,081 compared to
�= $4,981 for the prior year and for year to date the amount is $38,929 compared to
w
-� $43,616, which is down about $4,600. Parking Revenue for the current period is
UJ v
$5,310 compared to$12,019 for the current period last year, which was a high amount
t N and this year is more in line with our budget. Parking for year to date is$22,517 and
C-DL, cv is down compared to the prior year s amount of$32,242. Total Operating Revenue for
l ' � ;f; the current period is $8,426 compared to $17,035 for the prior year and for year to
c date the amount is $62,039 compared to $76,418, which is down about $14,000
CD � compared to last year. Operating Expenses - Utilities for year to date are $33,285
compared to $29,312 last year. Insurance and Bonding for year to date is $2,880
compared to $1,916 for last year. For a loss for the current period of ($612.39)
compared to the prior year's gain of $7,932 and the year to date loss is ($47,886)
compared to ($32,035).
LEPFA Board of Commissioners Meeting
Page 2
May 28, 2003
After netting revenue against expenses and after taking into account the City
Contribution, we have a gain of $11,701 compared to the prior year's gain of
$36,539.
Sandy Allen questioned the difference in Operating Revenue. It was noted that
parking was down $10,000 due to the addition of displaced State parkers to City
Market lot last year, the early retirement has also played a part and last year was
atypical. This year the amount will be similar to every year prior to last year.
The cash position is up for the current year at $59,415, which is up about $20,000
over last year's amount of $39,431. Unreserved Equity for the current year is
$170,044 compared to the prior year's $165,943.
Under Budget versus Actual, the Building Rental for the current period is less than
what was budgeted by($1,026)and the year to date actual is$38,929 compared to the
budgeted amount of$37,756, which is better than budget by$1,173. Parking Revenue
for the current period is down by ($1,427) and for year to date it is better than budget
by $3,952. Total Operating Revenue for year to date is $62,039 versus the budgeted
amount of$56,671, which is better than budget by $5,368.
Under Operating Expenses - for year to date Utilities are higher than budget by
($8,285). Insurance/Bonding is higher than budget by ($1,170). Total Operating
Expenses are $109,925 compared to the budget amount of$125,105. We are better
than budget by$15,179 and after netting Expenses against Revenues we are better than
budget by $16,694.
At 8:12 a.m. Commissioner James Butler entered the meeting.
b. Oldsmobile Park: The Event Revenues are $7,412, which consisted of three MSU
Baseball Games and a March of Dimes event. Event Expenses are$7,794, and Chair
Sinadinos noted at this time, more of the expenses have been turned in,which accounts
for the loss of($381.93) which was applied to the Event Development Fund. Under
Operating Expenses— Utilities for the year to date are $48,199 compared to $45,915
for the previous year. Insurance and Bonding for year to date is at$45,317 which is
up $15,600 compared to the prior year's $29,666. Total Operating Expenses for year
to date are $200,940 compared to $205,359 and after adding in the City
Contribution and Interest; we have net loss of($1,318) compared to the prior year's
revenue of$5,060.
Our Total Cash position for the current year is$90,636, which is down from the prior
year's amount of$101,161. The Net Event Development Fund is$52,238, compared
to the prior year's amount of $54,231. Unreserved Equity for the current year is
$99,315 compared to the prior year's amount of$99,059.
Under Budget versus Actual, year to date Utilities are better than budget by $1,164.
Insurance/Bonding is higher than budget by ($17,447). Bottom line revenues over
expenses and adding in the City Contribution and Interest, we are better than budget by
$13,240.
LEPFA Board of Commissioners Meeting
Page 3
May 28, 2003
c. Lansing Center: Chair Sinadinos noted we had a very respectable month. Building
Rental for the current period is$103,010,which is greater than the prior year's amount
of $102,728 and year to date the amount is $897,297 compared to the prior year's
amount of$877,515. Food and Beverage for the current period is down at$243,589
compared to $292,781 for the prior year and year to date the figure is up at
$2,422,844 compared to $2,313,630 for last year. Total Operating Revenues for the
current period are $449,145 compared to the prior year's current period amount of
$540,991 and the figure for year to date is $4,268,419 versus $4,041,384. Under
Operating Expenses — Salaries/Wages for year to date are $1,380,217 compared to
$1,320,219, which is due to an increased use in stagehands. Utilities for year to date
are$507,353, which exceeds the prior year's amount of$476,141. Insurance/Bonding
for year to date is $105,219 compared to $67,617, which is an increase of$37,600.
At 8:15 a.m. Harold Leeman entered the meeting.
Food and Beverage expense for the current period is$148,762 compared to$139,156
for the prior year; and for year to date the amount is $1,461,230 compared to
$1,392,548 for the prior year. Total Operating Expenses for the current period are
$482,339 compared to $463,456 for last year. Year to date Operating Expenses are
$4,622,826 compared to$4,284,625 for the prior year, which equates to an Operating
Loss of($354,407) compared to last year's loss of($243,240). After adding in the
City Contribution and Interest we have a year to date income of$188,491 compared to
the prior year's amount of$143,790
Sandy Allen questioned under Oldsmobile Park on page three, under Supplies and
Materials, why the variance? Peter noted that the difference was timing in terms of
how the budget was spread and was attributed to uniforms, janitorial and technical
supplies, but year to date is similar to last year. Peter noted the timing coordinates
with the opening of the stadium.
After combining Total Cash and Restricted Assets for the current year we have
$372,605 compared to the prior year's$409,347. Accounts Receivable for the current
year are $719,719 compared to the prior year's $564,522. Under Liabilities -
Unearned Revenue Advanced Rent(an indicator of future business) is up$40,000 over
last year with $336,736 compared to the prior year's $296,888. Unreserved Equity
for the current year is $650,121 compared to $769,811 for the prior year.
At 8:17 a.m. Doug Rubley entered the meeting.
Under Budget versus Actual - our Building Rental variance for the current period is
$10,956 and for year to date it was better than what was budgeted by $37,785. Food
and Beverage for the current period had a variance of$6,087 and for year to date the
figure was also better than budget by $172,943. Equipment Rental was better than
budget by$9,407 and for year to date the figure was$83,010. Tradeshow Utilities for
year to date were better than budget by$55,535. Labor/Services was also better than
budget for year to date by $81,967. Total Operating Revenues for year to date are
$4,268,419 compared to the budgeted amount of$3,811,635 for a variance better than
budget of$456,783.
LEPFA Board of Commissioners Meeting
Page 4
May 28, 2003
Under Operating Expenses-Salaries/Wages were higher than what was budgeted for
year to date ($36,889) and is tied into the Labor Service surplus. Utilities for year to
date are higher than what was budgeted by ($35,313). Insurance/Bonding is higher
than budget by ($34,729) for year to date. Total Operating Expenses for year to date
are$4,622,826 compared to the budgeted amount of$4,284,698, which is($338,128)
higher than budget. After netting expenses against revenues, we have a variance
better than budget for year to date of$118,655. After taking into account the City
Contribution and Interest, we are better than budget for year to date by $103,933.
Committee Chairman Sinadinos moved that the monthly Financials for Oldsmobile
Park, the Lansing City Market and the Lansing Center for the period ending April 30,
2003 be received as published, and further that the monthly expenses for each entity
be approved. SUPPORT: Commissioner Haggart; the motion was unanimously
approved.
C. PRESIDENT AND CEO'S REPORT:
1. Union Report: Patrick Talty reported that last month IATSE (the old Union) notified us
that they were interested in beginning the food and beverage employees' negotiation,
which expires on June 30, 2003. We met and received proposals from them and while
preparing a response, we received a memo from a majority of the employees stating that
they no longer wished to be represented by IATSE and were searching for a new Union.
The memo was shared with IATSE and it was noted that if the unit files for de-certification
within 90 days of the contract expiring, we will have to cease negotiations with IATSE
until June 30 and then there will be an employee election to determine what Union
representation or no Union representation. Sandy Allen asked if there is dissatisfaction
with the current Union, and it is unknown.
At 8:25 a.m. Jim Smiertka entered the meeting.
Peter explained that this process has taken place with the three other LEPFA bargaining
units over the past twelve months. The three units selected their own Union and have
three-year contracts in place. Commissioner Butler questioned the time line for
negotiations to take place. Patrick noted the issue is that we do not know if the employees
have contacted MERC and filed for de-certification, and if they have, it will put everything
on hold until at least June 30 which is the earliest they could officially have an election,
which means that we probably won't meet until September 1 if they do choose to de-
certify. Peter reminded the Board that this change is employee driven.
2. Lansing City Market: Linda noted the April rental revenue numbers are soft due in part to
the weather. She reported that she attended the Vendor's Association meeting and many of
the Vendor's reported that May has been a very strong month for the Market. On Mother's
Day weekend many of the vendors had their best sales ever, and traffic has increased over
the past three months. Linda also reported that another produce vendor has been added,
D&L Farms and Boetma's returned in April. We are in the process of installing a new
fence and gate in the south courtyard. The entertainment schedule continues, and Mark
has added two to three additional musical vendors and he has talent booked throughout the
season and the comments from the vendors and customers has been very positive. Mark
has also sent a personal note and the entertainment schedule to Mayor Benavides inviting
him to visit the Market.
LEPFA Board of Commissioners Meeting
Page 5
May 28, 2003
Commissioner Butler asked if there was any correlation between the entertainment and the
increased participation? Linda noted she asked Mark the same question and he noted that
it adds atmosphere, people do enjoy it when they come and it may help with return traffic
and creates a community sense and hope that people who do enjoy it will bring back new
customers with them. Commissioner Butler also asked if there is a flier? Linda noted the
schedule is posted on the bulletin board, but there isn't a particular flier, and the
information has been released to the media. Commissioner Butler asked for a copy of the
schedule. The entertainment is on hand from 10:00 a.m. until 2:00 p.m. Linda also
noted that the Market will participate in "Be a Tourist in Your Own Town" and will
distribute free hot dogs. Peter also noted "Neighborhoods In Bloom" takes place today.
3. Oldsmobile Park: Peter reported that a number of events have been hosted since last
month's Board meeting including March of Dimes—Walk America; MSU Baseball versus
Penn State; Hanover Horton versus Vandercook Lake—which was the largest high school
baseball crowd we have had at the stadium; and the Diamond Classic quarter finals took
place last week. Upcoming events include the Michigan Mile, the Diamond Classic semi-
finals/finals; and the annual July 3 Symphony Celebration which will feature Sandi Patty.
The fountain will be operating within the next week or two due to the weather, and Peter
also commented on the tulip bulbs planted this year.
4. Lansing Center: For the month of April, we hosted 51 events, equating to 78 event days,
attracting close to 23,000 people through our doors, for approximately 2,300 room nights
for an estimated economic impact of close to $750,000. In comparison to last April, we
were up in event days; attendance decreased slightly, we were down a little in room nights
and the economic impact was down by $200,000 which illustrates the mix of events.
October and March continue to be our strongest months.
• Sales Update: We have issued a contract for the return of the Golf Show for
2004; Peter explained that 2004 has become very difficult for a variety of reasons
including the fact that it is a leap year and many consumer show folks like their
specific weekends (i.e. the second week in February).
• Confirmed/Repeat Business includes the Women's Show for April 2004 and 2005;
the Detroit Area Commercial Board of Realtors—Synergy Conference will return
in April 2004, 2005, and 2006; and the Hispanic Legislative Caucus has booked
for September 2003.
• Potential New Business: Peter noted we re-submitted a proposal to the LRCC to
host their annual dinner in February 2004. Peter noted we have talked about this
previously, and have made numerous attempts to move them to the Lansing Center
from the Holiday Inn South. Peter noted we were unsuccessful last year and while
they took a very hard look at the building, there was scheduling conflict with Rich
Little. This year they are reviewing our proposal and are hopeful we will get it this
year.
LEPFA Board of Commissioners Meeting
Page 6
May 28, 2003
• Other Business — Peter noted our Sales Manager and Operations Manager are
attending the Wally Byum caravan in Burlington Vermont and they were delighted
that we will be attending. He also noted that we have hosted the Festival of Trees
at the Lansing Center for the past ten or so years. While they have recently had a
number of staff changes, we have been trying to contact them because we have no
information for this year's event and the rumor mill has them moving to the
Summit and dramatically changing their event. Commissioner Butler asked what
the Board could do to assist Peter and he noted that it would be nice if they would
call us and let us know what they have decided regarding the Summit. Peter noted
they have wanted to create a "Winter Wonderland" theme, which the ice made
cost prohibitive at the Lansing Center, and the Summit has ice. Peter noted our
biggest issue is that we are within a six-month time frame and we are holding
dates, and we would like the opportunity to attempt to book something else in its
place. A contract has been issued, and they are holding the contract at this time.
Commissioner Butler indicated that he would follow up with a call today.
• April/May Event Highlights: We hosted the ShowBiz Talent competition attracting
600 attendees. The Diocese of Lansing hosted their Youth Jamboree in late April
with over 1,000 teens attending workshops. Michigan Association of Homes and
Services for the Aging hosted over 500 people. April 29 and 30 the Michigan
Teamsters were in house with over 300 people attending a three day conference
with guest speakers such as the Mayor, Attorney General Mike Cox, and
Secretary of State Terri Lynn Land. The Michigan Education Association held
their spring representative assembly and the Michigan Assisted Living Association
hosted over 900 attendees; Michigan Association of CPA's were in house; INCH
(Information Network for Christian Homes)returned for their sixth year with over
2,000 attendees; Michigan Non-Profit — Grant Makers/Grant seekers were in
house with guest speakers Jennifer Granholm and Mike Ferrell. Life Changers
were in house as well as 5 proms (East Lansing, Grand Ledge, Everett, Eastern
and Okemos High Schools
• Upcoming Events: Michigan Works! Technology Conference; Be A Tourist in
Your Own Town; MSHDA; and the Chili Cookoff. .
5. Common Ground: Peter noted we continue to seek sponsorship dollars and are cautiously
optimistic in this regard. He noted we have worked with Parks and Recreation Department
to begin building the set on July 2 (due to the Forth of July holiday), which will provide
the Lansing Concert Band with a stage. New acts that have been announced since the last
meeting include War on Sunday; The Temptations Review featuring Dennis Edwards on
Thursday on the West Main Stage and on the East Main Stage—Darryl Worley; Jan James
will be opening for Jonny Lang on July 11; Larry McCray will open for Boston on
Monday; The Contours will open for the Temptations on Thursday; the Automatic Blues
Band will open for David Lee Roth; Chac Mul Rock, Mas Ambicion and Megan will be
opposite Hootie and the Blowfish on Saturday; and KoKo Taylor will be on the West Main
Stage opening for Hootie and the Blowfish. The Lansing Center will host a Gospel
Concert on Friday night featuring Fred Hammond and there will also be a big band event
"Dancing in Lansing" in the ballrooms. Peter noted ticket sales are up this year over last
year, however we started announcements/sales earlier. The billboards are up around the
city, and the media barrage is beginning.
LEPFA Board of Commissioners Meeting
Page 7
May 28, 2003
Linda Frederickson noted we have had additional press coverage in the Jackson, Saginaw
and Grand Rapids papers as well.
The Sand Bar will feature local musical talent from 5:30 p.m. to 7:30 p.m. The Skybox
has been added as well as the Uncommon Club and an additional day. Sandy Allen
questioned if an entrance could be placed at Shiawassee and Grand Avenues. Peter noted
it has been considered; however, due to the Fire and Police routing and in consideration of
public safety (they use Shiawassee and block off Grand Avenue), it was determined that it
would not be feasible.
Commissioner Butler requested Common Ground pamphlets. Commissioner Butler
questioned if the Skybox and Uncommon Club are meeting expectations? Peter noted the
Skybox is rented except for Friday night; and fully expect both areas to sell out.
6. Lansing Center Budget Hearings: Peter thanked the Board members who were able to
attend the budget hearing.
D. PERSONNEL COMMITTEE: Committee Chairman James Butler noted that there are no
issues and no committee report.
E. LONG RANGE PLANNING COMMITTEE: Peter noted there was nothing new with the
consultants, and at this time we are trying to pull the different Boards together for the
consultants to make their presentations.
VII. COMMISSIONER AND STAFF COMMENTS:
1. Commissioner McNenly: Commissioner McNenly commented that she is anxious to see how
Common Ground shakes out; and is looking forward to volunteering again under the masterful
guidance of Marian Bryant.
2. Commissioner James W. Butler III: Commissioner Butler commended Peter and the staff for
their continued creativity in reference to Common Ground and the other endeavors that they
are dealing with, and because of the productivity we continue to be successful in the budget
area and in adding to the quality of life within the city. He noted that when he thinks of the
Skybox and the Uncommon Club, and how each year the festival expands, it is all about
increasing the creativity and drawing the crowds.
He noted that it is very good to know that we are drawing regional coverage and he is
appreciative of everyone's efforts and is pleased to be a part of Common Ground.
3. Jim Smiertka: He noted that there are no litigation and claims for the eighty-eight consecutive
meeting. He noted the agreement has been consummated with the Lansing Building Authority
in regard to the marquees and he explained that the plaza area at Oldsmobile Park is a part of
the Lansing Building Authority Structure and as such is financed separately. The Lansing
Building Authority is able to finance the marquee.
4. Commissioner Charlotte Sinadinos: Commissioner Sinadinos noted that she has turned in her
Volunteer application for the VIP tent.
LEPFA Board of Commissioners Meeting
Page 8
May 28, 2003
5. Doug Rubley: He reported that the City did pass the subsidy to support the Lansing Center.
He noted the CAP is being reviewed as it pertains to the amount set per the Operating
Agreement. Longer range plans have been discussed with Peter to try to make a forecast to
see if the reserves have sufficient funds or if increased support from the City should be
considered in light of an aging building and future replacements. He noted having the needs
more visible would help with funding and in determining the long term needs and the current
amount. He also noted the Mayor had proposed in his budget (and it was removed) funding
which directly affects the Market. A contract with the EDC was considered that would help
support the Market by offering support indirectly to businesses that want to utilize the Market
($25,000); however Council removed the funding. The need was recognized and it was
determined that if funds could be found they would move forward with the recommendation
and he noted it is in the works. Peter indicated that a meeting is scheduled for this Thursday
with Leanne Stites, Pat Cook, Jim Ruff, and David Wiener regarding the Market and funding
through not only the EDC, but also other State programs.
Mr. Rubley noted that Peter has been invited to a future Ways and Means Committee meeting
to review the Capital Project from prior years and to look at the costs. Peter noted in
reviewing information over the past seven years, we have spent close to $700,000 on capital
items. He noted as Doug referenced, our Management Agreement with the City states that they
will give us$50,000 per year and that amount is no longer adequate. Everyone is aware of the
concerns and is on the same page.
Chairman McGuire thanked Mr. Rubley for his remarks.
6. Linda Frederick son: Linda reported that we have submitted an application for a grant for the
Symphony for$10,000 to the Michigan Council of the Arts and Cultural Affairs and it requires
that the Board be notified that we have submitted a grant application. Linda also noted that
June 12 is the Partners' Preview Party for Common Ground at 5:30 p.m. and invitations will
be sent to the Board members.
7. Commissioner Tim Haggart: Commissioner Haggart noted next week the five semi finalists
for the Board of Water and Light General Manager's position will be in town and there is a
public meet and greet on Thursday from 5:30 p.m. -7:30 p.m. at the Lansing Center and they
will then attend the Chili Cookoff.
8. Commissioner Ellen Jeffries: Commissioner Jeffries noted she too is volunteering for Common
Ground under the guidance of Heidi Brown at the Information Booth. She also commented
that it appeared that the female members of the Board are the only members volunteering and
submitted a challenge to the male Board members.
Commissioner Butler commented to Doug Rubley that Bob Swanson had been a friend to
LEPFA for many a year. He noted that with Doug having taken over Bob's duties, he was
able to get us through the budget process successfully based upon the support he has given.
He thanked Doug for being a friend of LEPFA, noting further that it means that he is a friend
of the people, and that is a part of our mission. He noted that he has shared these comments
with Bob Swanson as well, and that it is important to him and that he takes it very seriously.
LEPFA Board of Commissioners Meeting
Page 9
May 28, 2003
Commissioner Butler also asked Councilmember Leeman if he feels that we are doing all that
we need to do in regard to Common Ground? Councilmember Leeman noted that he feels
very comfortable and noted that Peter always goes to the Riverfront Apartments in June with
him and that the residents always enjoy hearing what Peter has to say.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:17 a.m. it was moved that the meeting be adjourned. Motion: Commissioner Jeffries Second:
Commissioner Butler.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR WEDNESDAY, JUNE 24, 2003 AT 8:00
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
JUKE 24, 2003
MINUTES
At 8:03 a.m. Chairman Cyril McGuire 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, Doug
Rubley (Ex-Officio), Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: James W. Butler III, Tim Haggart, Sharon Peters, and Jim Ruff(Ex-
Officio).
OTHERS PRESENT: Heidi Brown,Marian Bryant,Linda Frederickson,Peter Sullivan,rand Patrick Talty
-Lansing Entertainment and Public Facilities Authority; Harold Leeman, Lansing City Council; and Kevin
Meyer, Meridian Entertainment Group.
III. ESTABLISHMENT OF THE AGENDA:
The agenda was accepted as presented.
IV. PUBLIC COMMENT: ct�
There was no public comment. C°
V. APPROVAL OF THE MINUTES OF MAY 28, 2003:
The minutes of May 28, 2003 were adopted as presented. MOTION: Commissioner Sinadinos
SECOND: Commissioner Jeffries, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
1. Nominating Committee Report: Committee members included Chairman, Kate McNenly,
Ellen Jeffries and Cyril McGuire. The committee submitted the following candidates/
officers for 2003/4:
James W. Butler III — Chairman
Charlotte Sinadinos — Secretary/Treasurer
Tim Haggart— Vice Chairman
The slate of officers was approved as submitted.
Chairman McGuire noted that he enjoyed his term; he is glad that it's over and thanked
everyone for their assistance.
B. COMMON GROUND UPDATE: Peter reported that Kevin Meyer is present today to join
him in discussing Common Ground and to answer any questions the Board may have regarding
Common Ground. Peter noted pamphlets and an outline/listing of this year's musical
presentations were included in the packets and if Board members need additional pamphlets,
they should contact Heidi. Peter noted we are in the execution phase of this year's event and
continue to meet with City Departments to solidify operational detail, having most recently met
with the Parking Department.
LEPFA Board of Commissioners Meeting
Page 2
June 24, 2003
At 8:10 a.m. Jim Smiertka entered the meeting
One of the operational changes this year was that set up will begin on July 1 and the City will
host their annual July 4 celebration at Adado Riverfront Park using the West Main Stage,
which will be in place for Common Ground. He also noted that we have two and a half new
components for generating revenue this year and they are the private skybox, which is sold for
five of the seven nights. The second new component is the "Uncommon Club" which was
developed in response to the Sponsor Oasis and is a seven-day pass with amenities such as a
private restroom, parking, etc. The final upgrade for the festival includes the addition of
music to the Sandbar area, and the area will include food and live music. In general we
continue to receive positive feedback from our sponsors and the community at large especially
regarding the line up. Peter yielded the floor to Kevin Meyer regarding the 2003 Common
Ground line up. Kevin noted ticket sales are ahead of last year at this point, and they remain
cautiously optimistic with the end result deperident upon the weather. Kevin noted that the
increase in sales is attributed to the addition of the seventh day, the variety of talent and the
increased spending on the talent. He noted we should see an increase in this year's box office,
which should make up the difference for the additional artist fees and hopefully we will break
even or better. He also indicated that this year the music includes the 60's, 70's, 80's, 90's
and current music with some Tejano and Gospel added, which is a true music festival and
broadens our clientele. Peter noted on Friday we have David Lee Roth and Jonny Lange on
the other stage, "Dancing in Lansing" and the Gospel event featuring Fred Hammond at the
Lansing Center. Peter noted last year 1,700 common cards were purchased by GM
employees, this year they sold 3,333. The almost 100% increase was attributed to their
marketing and the GM employees taking advantage of their discount. He also noted we hosted
a Sponsor Party last week which was attended by various Board members and was different
and unique. A professional MC was contracted to host the show, which included a red-carpet
entrance. The final volunteer get together will be held tomorrow at 6:00 p.m. and will
include training and food and beverage and he invited all folks interested in volunteering to
attend.
Peter noted he and Kevin meet with the Lansing State Journal on Wednesday at 10:00 a.m.
with Mike Hughes and they are looking forward to the meeting. He noted the festival will be
long, but everyone is looking to have fun. Peter opened the discussion for questions.
Commissioner Janssen asked if we would be selling tickets at the Fourth of July event at
Riverfront Park? Kevin noted we are not selling tickets at that time. Commissioner Janssen
also questioned the midway at the Muskegon Summer Celebration. Kevin noted it has always
been a part of the event, but it is outside of the concert venue, but is part of the park. He
noted the event has also evolved to encompass other areas of the downtown, i.e. and art fair,
and a 5K and IOK run sponsored by the paper. Peter noted it has been considered for
Common Ground, however there are some unique challenges logistically, i.e. space, and they
have had issues with fights and gang activity and negative press, which is of a concern.
Commissioner Janssen noted that Kevin and Peter are doing a great job.
Commissioner Sinadinos asked if Uncommon Club card carriers have access to the VIP area.
It was noted they have their own area, their own gate and portalets at a cost of$250. We have
sold the maximum of 50 tickets and will add another area stage left.
LEPFA Board of Commissioners Meeting
Page 3
June 24, 2003
Peter credited Commissioner Janssen for suggesting such an area. Next year the option will go
to members who bought the Uncommon Pass this year first for renewal, much like a season
ticket.
Peter thanked Kevin and he exited the meeting at 8:30 a.m.
C. SECRETARY/TREASURER'S REPORT: Chair Sinadinos reviewed the following financial
statements as approved by the Finance Committee:
1. Monthly Financials - For the Period Ending May 31, 2003: Chairman Sinadinos
reviewed the monthly financials as follows:
a. Lansing City Market: Building Rental for the current period is $4,746 compared to
$5,954 for the prior year, which is down about$1,200 and for year to date the amount
is $43,675 compared to $49,571. Parking Revenue for year to date is $22,517
compared to$32,242 for the prior year... Which was an unusual year. Total Operating
Revenues for year to date are $66,820 compared to $82,408, which is down by
approximately $15,500. Under Operating Expenses - Utilities for year to date are
$35,621 compared to $31,880, which is up by about$3,700. Insurance and Bonding
for year to date is$3,132 compared to$2,108 for last year. Total Operating expenses
year to date are $122,075 compared to $122,687 for last year for revenues over
expenses for year to date of$9,436 compared to $34,132 last year.
The cash position is up for the current year at $69,648, which is up about $18,000
over the prior year's amount of$51,505. Unreserved Equity for the current year is
$167,779 compared to the prior year's amount of$163,537.
Under Budget versus Actual, the year to date Building Rental is$43,675 compared to
the budgeted amount of$42,815, which is better than budget by$860. Total Operating
Revenue for year to date is$66,820 versus the budgeted amount of$61,765, which is
better than budget by $5,055.
Under Operating Expenses-for year to date Salaries and Wages are better than budget
by $11,142.Year to date Utilities are higher than budget by ($8,121).
Insurance/Bonding is higher than budget by ($1,251). Total Operating Expenses are
$122,075 compared to the budget amount of$138,550. We are better than budget by
$16,474 and after netting Expenses against Revenues we are better than budget by
$21,529. Taking into account the City Contribution and Interest we are better than
budget for year to date by $17,288.
b. Oldsmobile Park: The Event Revenues for the current period are $13,368, which
is comprised of MSU Baseball games, one of the Diamond Classic games and the
Michigan Mile. Event Expenses are $6,343 for an event income of$7,025, which
was applied to the Event Development Fund. Under Operating Expenses - Utilities
for the year to date are $52,642 compared to $50,453 for the previous year, which
is up by about$2,200. Insurance and Bonding for year to date is at $49,043 which
is up $16,410 compared to the prior year's $32,633. Total Operating Expenses for
the current period are $18,518, which exceeds the prior year's amount of$16,384
and for year to date the amount is $219,458 compared to $221,744.
LEPFA Board of Commissioners Meeting
Page 4
June 24, 2003
Bottom line Net Revenues for year to date are $31.77 compared to the prior year's
amount of$8,552.
Our Total Cash position for the current year is$90,692, which is down from the prior
year's amount of$92,982. The Net Event Development Fund is$59,263,compared to
the prior year's amount of$59,400. Accounts Receivable are $44,556 compared to
$16,313, which is attributed to the suites. Accounts Payable is higher as well and is
also attributed to the suites and is $47,944 compared to the prior year's amount of
$17,420. Unreserved Equity for the current year is $107,391 compared to the prior
year's amount of$107,720.
Under Budget versus Actual, Utilities are better than budget by$86.62 for the current
period and for year to date $1,250. Insurance/Bonding is higher than budget by
($18,386) for year to date. Total Operating Expenses are better than budget by
$17,061 and after taking into account the City Contribution and Interest we are better
than budget by $13,801.
c. Lansing Center: Building Rental was down for the current period at $92,960
compared to the prior year's amount of $102,285 and is up for year to date at
$990,257 compared to $979,801. Food and Beverage for the current period was
excellent at $239,330 compared to the prior year's $181,659 and year to date it
exceeds last year's figure at $2,662,175 compared to $2,495,290. Total Operating
Revenues for the current period are $411,663 compared to the prior year's current
period amount of $368,854 and the figure for year to date is $4,680,083 versus
$4,410,238. Under Operating Expenses — Salaries/Wages for year to date are
$1,555,337 compared to$1,481,956, which is due to an increased use in Stagehands.
Utilities for the current period are $53,091 which is less than the prior year's amount
of $59,527 and for year to date we are exceeding last year's amount at $560,444
compared to$535,669. Insurance/Bonding for year to date is$113,763 compared to
$74,389, which is an increase of$39,000. Food and Beverage expense for year to date
is $1,613,470 compared to $1,531,533 for the prior year. After netting Revenues
against Expenses and adding in the City Contribution and Interest we have $148,775
compared to $90,301 for last year.
Totaling Cash and Restricted Assets we have a total of$438,849 compared to the prior
year's total of$400,626. Under Liabilities - Unearned Revenue Advanced Rent for
the current year is $336,428 compared to the prior year's $279,344. Unreserved
Equity for the current year is $610,404 compared to $716,322 for the prior year.
Under Budget versus Actual - our Building Rental variance for year to date is better
than budget by $27,822. Food and Beverage is also better than budget by $162,779.
Equipment Rental was better than budget by$91,777. Labor/Service is also better than
budget for year to date by $79,947. Total Operating Revenues for year to date are
$4,680,000 compared to the budgeted amount of$4,248,000 for a variance better than
budget of$431,289.
LEPFA Board of Commissioners Meeting
Page 5
June 24, 2003
Under Operating Expenses- Salaries/Wages were higher than what was budgeted for
year to date ($33,480) and is due to the Stagehands and is balanced by the Operating
Revenues under Labor Service. Utilities for year to date are higher than what was
budgeted by ($41,200). Insurance/Bonding is higher than budget by ($36,224) for
year to date. Total Operating Expenses for year to date are $5,125,000 compared to
the budgeted amount of$4,794,000 which is ($330,286) higher than budget. After
netting expenses against revenues, we have a variance better than budget for year to
date of$101,103. After taking into account the City Contribution and Interest, we are
better than budget for year to date by$84,835 and last year at this time we were under
budget by $50,000.
Committee Chairman Sinadinos moved that the monthly Financials for Oldsmobile
Park, the Lansing City Market and the Lansing Center for the period ending May 31,
2003 be received as published, and further that the monthly expenses for each entity
be approved. SUPPORT: Commissioner Sinadinos; the motion was unanimously
approved.
D. PRESIDENT AND CEO'S REPORT:
1. Union Report: Patrick Talty indicated there was no report at this time.
2. Lansing City Market: Linda noted that the May rental revenue is down compared to last
year, but is even or within 4 percentage points of 2001 and this trend is expected to
continue throughout the remainder of the season. Another new produce vendor, Vista
Farms joined the Market and they are from the Zeeland/Hudsonville area. The weekly
entertainment schedule continues on Saturday's, with five to six individual groups that
have been booked throughout the season(August). Linda also noted that there has been a
great deal of positive feedback from both the vendors and the clients regarding the
entertainment. The new gated fence in the courtyard has been completed.
Peter noted we continue to work with the Mayor's Office and EDC in regarding new
Market vendors. He is meeting with a Common Ground vendor who is interested in
bringing a food operation to the City Market and he noted we continue to keep the City
abreast of that development.
3. Oldsmobile Park: Peter reported that a number of events have been hosted since last
month's Board meeting including the Michigan Mile and the Diamond Classic. He noted
that the Diamond Classic attracted approximately 4,000 people, which is better than past
years. Upcoming events include Symphony in the Park in July featuring Sandi Patty and
we have suite tickets available for Board members through Heidi. On July 17 the
Mongolian Barbeque softball game will take place.
4. Lansing Center: For the month of May, we hosted 46 events, equating to 61 event days,
attracting close to 12,000 people through our doors, for approximately 2,000 room nights
for an estimated economic impact of close to $677,000. In comparison to May 2002, we
were down slightly in event days; and similarly in attendance, room nights and the
economic impact.
LEPFA Board of Commissioners Meeting
Page 6
June 24, 2003
• Sales Update: Peter followed up on previous comments regarding Festival of Trees
indicating that they are moving to the Summit and they are also drastically
changing the format. Peter noted that he, Cyril and James hope to meet with the
Foundation staff this week. He received a voice mail from Ed Dore indicating that
they are not returning to the Lansing Center and will move to the Summit for a
one-day event involving ice. He also noted that this change would greatly impact
our November budget.
Peter also reported that we have been trying to solidify dates with Michigan Floral
for 2006-10 and their primary issue at this time is the consistency with the dates.
Two to three weeks ago we gave them a rental rate that would have changed less
than 10% over a ten-year period. It will be interesting to see if Grand Rapids
matches the price. Peter noted events such as this again underscore the need for
the Lansing Center to expand and/or upgrade. And with certain annual expenses
increasing (over which we have no control) such as insurance and medical
coverage, which makes it harder for us to meet budget, our ability to make up for
shortfalls without expanding revenue will be harder with the increased competitive
threat from Grand Rapids. He noted similarly the Michigan Broadcasters
Association is also considering Grand Rapids. Peter noted he referenced the Floral
Association and the Broadcasters Association because they are two long-standing
clients that we have spent a lot of time with over the past year. He also noted that
we have increased competition from the Summit and the Ag Pavilion at MSU, and
that while he is a believer in competition, we need to "take the bull by the horns"
and make changes. He also realizes there are issues on the state level involved in
the expansion.
• Confirmed/Repeat Business Peter reported contracts have been issued for the
Michigan Council for Arts and Cultural Affairs for a December meeting; and
MDOT for a December meeting
• May/June Event Highlights: The later part of May we were a host to "Be A
Tourist In Your Own Town." In June we hosted the Michigan Conference on
Affordable Housing with over 800 attendees from around the state for the second
year. June 6 we hosted the sixth annual Board of Water and Light Chili Cookoff,
which was extremely successful with over 5,500 people attending. We have
already discussed expanding the event and at some point may move to Adado
Riverfront Park. Diamond Quest was in house following the cookoff; the Lansing
Regional Chamber of Commerce held its Economic Club Luncheon with over 350
people attending. June 20-21 Michigan Catholic Home Educators were in the
building; June 20-22 Barcleigh Productions were in house (this was a dog
grooming seminar). During the month we also hosted five weddings and five
social events including the Everett High School Prom; the Bethel Family Worship
Center dinner; the Common Ground Sponsor Party; the YWCA Red Hat Society
luncheon and the Lopez graduation.
• Upcoming Events: The focus remains on Common Ground.
LEPFA Board of Commissioners Meeting
Page 7
June 24, 2003
5. Thank You to Cyril McGuire: Peter extended his thanks to Cyril McGuire for his time
and effort and for his guidance on any number of issues over the past year and it appears
that we are going to have another decent year during hard economic times. Again he
thanked Cyril and noted that gifts would be forthcoming in August.
E. PERSONNEL COMMITTEE: No report.
F. LONG RANGE PLANNING COMMITTEE: Chairman Janssen noted that the Long Range
Plan is the short range plan to get through Common Ground and then return to the Long Range
Committee
VII. COMMISSIONER AND STAFF COMMENTS:
1. Doug Rubley: Doug noted that last month there was discussion of Peter coming before the
City Council Ways and Means Committee regarding the long term plans for the current
$50,000 reserve. He noted that he suspects th,t the meeting will not take place anytime soon
because Ways and Means has not been meeting actively/recently. He also noted that he has
worked with Peter on insurance, and the City has also noted substantial rate increases, and
currently the worse case scenario is that the increases will be greater than last year, and best
case scenario is that the increases will be single digit increases. The two considerations for the
Lansing Center rate increase is that it is an area that has potential for an attack because of the
large crowds and insurers are forced to offer the insurance for this type of facility. We are
currently shopping for insurance. Peter noted last year we saw approximately a 57% increase
in our insurance ($110,000 premium) and the initial quotes have the policy increasing
anywhere from$158,000 to the lowest quote of$130,000. Peter asked if there is anything we
can do through the State of Michigan? Doug noted he had not considered this before, but
would follow up with Peter. Jim Smiertka noted there are purchasing contracts that can be
piggybacked, but he has never heard of insurance.
At 9:07 a.m. Denise Wootton exited the meeting.
2. Linda Frederickson: Linda noted the a grant application for the Symphony is due tomorrow
and she will go before the Michigan Council for Arts and Cultural Affairs review panel, where
the grant application will be reviewed. The LEPFA Board must be notified that we are
submitting the application before it will be considered, thus Linda formally notified the Board
of the application.
3. Commissioner Charles Janssen: Commissioner Janssen thanked the staff for their hard work
during this time of the year. He also pointed out to Doug and Harold, having just reviewed the
numbers for the Lansing Center, that they wouldn't be as good had we not decided to take food
and beverage in house. He also commented and thanked the staff for their leadership,because
the numbers are great, as we struggle to keep the subsidy in line and review items that we have
no control over such as insurance. He commended Peter, Patrick and the Senior Staff for a
great job for trying to squeeze what we can out of the budget.
4. Commissioner Kate McNenly: Commissioner McNenly thanked Chairman McGuire for doing
a fine job.
LEPFA Board of Commissioners Meeting
Page 8
June 24, 2003
5. Commissioner Ellen Jeffries: Commissioner Jeffries commented that she would like to echo
Kate's comments regarding Cyril and will have more to say in August. She also reiterated her
challenge to the male members of the Board in regard to volunteering for Common Ground.
Ellen commended the staff as well for their hard work this time of year and included Heidi and
Marian for their help in the trenches as well.
6. Harold Leeman: Harold noted that he and Peter would be meeting with the Riverfront
Apartments on June 30 at 4:00 p.m. He also noted that WQHH is posting fliers on telephone
poles and asked if it could be conveyed to users of the Lansing Center that it is not in
everyone's best interest to put things on telephone poles, because it is not environmentally
friendly, and they aren't taken down. He asked if a policy could be developed and noted that
it is in our interest to deal with it as much as we can, because someone has to be responsible
for removal. He noted the various intersections that have been posted with fliers.
7. Jim Smiertka: Mr. Smiertka noted that he had no report.
8. Commissioner Sharon Peters via Peter Sullivan: Peter noted that Commissioner Sharon Peters
could not be here (she is out of state at a conference); however he had an email to share with
the Board. He noted the message indicated that she would see everyone at Common Ground
and that she attended the Sponsor Preview Party and she thought it was quiet innovative and
folks seemed to have a lot of fun. Peter noted he was sharing Sharon's comments at her
request.
Peter also noted that he failed to mention that this year we would also be hosting our first
annual Soccer Tournament at the Hope Soccer Complex on Saturday, July 12 with 35-37 teams
participating, which is very good for a first year tournament. This first year tournament is in
conjunction with the City and the County. He also noted that the Skate Board event will also
take place at the Skate Park on Saturday and Sunday and will feature MAS. There will be no
fees charged for the event.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:15 a.m. it was moved that the meeting be adjourned. Motion: Commissioner McNenly Second:
Commissioner Jeffries.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, AUGUST 26, 2003 AT 8:00
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
AUGUST 26, 2003
cr) MINUTES
At 8702 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, Charles Janssen, Ellen Jeffries, Cyril McGuire,
Sharon Peters, Jim Ruff(Ex-Officio), Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Tim Haggart, and Doug Rubley (Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Peter Sullivan, and Patrick Talty
-Lansing Entertainment and Public Facilities Authority; Harold Leeman, Lansing City Council; and Margo
Vroman - City of Lansing.
III. ESTABLISHMENT'OF THE AGENDA:
The agenda was accepted as presented.
IV. PUBLIC COMMENT:
There was no public comment.
V. APPROVAL OF THE MINUTES OF JUKE 24, 2003:
The minutes of June 24, 2003 were adopted as presented. MOTION: Commissioner Janssen
SECOND: Commissioner Sinadinos, motion carried.
VI. REPORTS:
At 8:05 a.m. Commissioner Ellen Jeffries entered the meeting.
A. CHAIRMAN'S REPORT: Chairman Butler reported the following:
1. Power Outage: He noted on August 14 we had a power outage, and that he received
documentation and comments regarding the outstanding job that the Lansing Center staff
did in reference to the National Heritage Academies dinner. Chairman Butler commended
Peter and all the staff for seeing to it that "the show must go on."
2. Michigan Lobbyist Article. Chair Butler referenced an article entitled Lady Lobbyist,
which featured one of our Board members, Sharon Peters. He noted it was a good article.
3. Finance Committee Meeting: He noted the Finance Committee met on the 25`h and that
Chairperson Sinadinos will be Chairperson for life!
4. Thank You - Chairman Butler thanked last year's Chairman Cyril McGuire for his
outstanding leadership and for a super job.
5. Commissioner Kate McNenly's Resignation: Chairman Butler noted that Kate McNenly
has resigned from the LEPFA Board of Commissioners effective August 1. Mr. Butler
noted that she sent a letter to the Mayor and sited conflicting board responsibilities as the
reason for her resignation. Chairman Butler read the letter as forwarded to the Mayor and
asked that the minutes reflect that he misses her dearly as they both have been a part of the
board since the beginning and he commented further that she has served the Board well.
He recommended to Peter that we present her with a plaque and asked that a letter be
drafted to Kate from him reflecting the leadership that has been brought to the table and a
level of appreciation. He also noted that he would like to give Kate a special dinner.
LEPFA Board of Commissioners Meeting
Page 2
August 26, 2003
At 8:10 a.m. Jim Ruff entered the meeting.
6. Ingham Medical Foundation Meeting: Chairman Butler noted that he and Peter met with
the Ingham staff(he thought that the meeting went extremely well) to discuss some of the
issues and concerns that we have regarding the Festival of Trees. Chairman Butler felt
that they established a good rapport and based on the initial comments that he received that
they are indeed willing to sit down and talk to us. We hope to bring the event back to the
Lansing Center.
Peter noted as previously discussed at prior Board meetings, the Festival is under new
leadership and they felt the festival needed dramatic changes, which they ultimately
implemented by making the festival a one day event(from six to seven days), and moving
it to the Summit so they could include ice. Peter noted that we were surprised by the move
because we were not involved in the decision making process. As a result, Peter indicated
that he asked our Board members (Cyril and James) to join him in a meeting with the
Ingham staff. Overall Peter felt it was an open and candid meeting, which established a
new working relationship, and we are hopeful that the event will return, and the meeting
ended on a positive note.
B. SECRETARY/TREASURER'S REPORT:
1. Draft Monthly Financials - For the Period Ending June 30 2003: Chairman Sinadinos
reminded those present that the financials were in draft form in conjunction with the
audit/auditors report. Chairman Sinadinos reviewed the monthly financials as follows:
a. Lansing City Market: Building Rental for the current period is $8,772 compared
to $10,462 for the prior year, and the year to date amount is $52,447 compared to
$60,033 which is down about$7,500 for year to date. Parking Revenue for year to
date is $27,162 compared to $39,321 for the prior year. Chairman Sinadinos
reminded everyone that parking for the prior year to date was higher than normal
and that last year was unusual. Total Operating Revenues for year to date are
$80,370 compared to $99,984. Under Operating Expenses — Utilities for year to
date are$38,063 compared to $34,802, which is up by about $3,200 over the prior
year. Insurance and Bonding for year to date is $3,736 compared to $2,300 for last
year. Total Operating expenses year to date are $138,904 compared to $139,172,
for a year to date loss of($58,533) compared to a loss of($39,187) for the prior
year, which is due to revenues, and not operating expenses. After adding the city
contribution and interest, we have excess revenues over expenses for year to date
of$14,200 compared to the prior year's amount of$28,938.
Total cash is$62,798, which is up over the prior year's amount of$44,685. Accounts
Receivable are$124,287 compared to$96,865 for the prior year. Unreserved Equity
for the current year is $172,543 compared to the prior year's amount of$158,342.
At 8:15 a.m. Harold Leeman entered the meeting
Under Budget versus Actual, Total Operating Revenue for year to date is $80,370
versus the budgeted amount of$76920 which is better than budget by $3,450.
LEPFA Board of Commissioners Meeting
Page 3
August 26, 2003
Under Operating Expenses-for year to date Salaries and Wages are better than budget
by $10,483.Year to date Utilities are higher than budget by ($8,063).
Insurance/Bonding is higher than budget by ($1,688). Total Operating Expenses are
$138,904 compared to the budget amount of$152,795, which leaves us better than
budget by $13,890 and after netting Expenses against Revenues we are better than
budget by $17,341. Taking into account the City Contribution and Interest we are
better than budget for year to date by $12,712.
b. Oldsmobile Park: The Event Revenues for the current period are $16,214, which
is comprised of the Diamond Classic and concessions revenues. Expenses are
$3,201 for net revenues of$13,012, which was applied to the Event Development
Fund. Under Operating Expenses — year to date Salaries/Wages are $56,380, _
which is less than$59,060 for the prior year. Utilities for the year to date are
$56,809 compared to $55,173 for the previous year. Insurance and Bonding for
year to date is at$50,508 compared to the prior year's $35,600 which is an
increase of approximately $15,000. Total Operating Expenses for the current
period are $23,418, which exceeds the prior year's amount of$20,292 and for year
to date the amount is $241,370 compared to $242,037.
Taking into account the City Contribution and Interest, we have a net loss of
($2,028) for year to date compared to the prior year's income of$8,132.
Our Total Cash position for the current year is $91,506, which exceeds the prior
year's amount of$39,291. The Net Event Development Fund is down for the current
year at $72,276 compared to $76,972 for a difference of $4,500. Accounts
Receivable are $103,774 compared to $25,750. Accounts Payable are $130,170
compared to the prior year's amount of $24,830, and the difference is that the
Lugnut's June payment was late. Unreserved Equity for the current year is$118,344
compared to the prior year's amount of$124,872.
Under Budget versus Actual - Operating Expenses, Salaries/Wages are better than
budget by $5,914. Utilities are better than budget by $1,645. Insurance/Bonding is
higher than budget by($17,065). Total Operating Expenses are$241,370 compared to
the budgeted amount of$256,385 leaving us overall better than budget by $15,014.
After adding in the City Contribution and Interest we are better than budget by
$11,356.
Board Chairman James Butler asked for further information regarding the
Insurance/Bonding 50% increase. He suggested that if we did not have such an
increase in Insurance/Bonding we would have made the budget. Peter noted that the
insurance matter is something that we have discussed previously and it is not something
that we can control and the only way we have to offset the increase is via rate and/or
rental increases, which is not prudent when considering the downturn in the economy,
and more specifically the tourism industry. Peter noted we are looking at assistance
from the City in terms of making up the $40,000 - $50,000 increase. Chair Butler
asked if Peter was aware that the increase would be 50% and Peter indicated that he
was not and that the increase was approximately 50% with LEPFA's piggybacking with
the City.
LEPFA Board of Commissioners Meeting
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August 26, 2003
Jim Ruff asked if the insurance estimate could be timed in relation to the budget?
Marian Bryant noted we made the premium year coincide with our fiscal year and we
would need the quotes by December for the budget cycle. Chair Butler asked if we
could ask for an approximation? Marian noted we could ask, but insurance companies
will not commit to a number. Peter noted we start the process in the spring and
struggle to get a number confirmed prior to the policy ending and we are considering
various umbrellas and working with the City.
c. Lansing Center: Building Rental was down for the current period at$67,819 compared
to the prior year's amount of$68,130 and for year to date the amount is $1,058,077
compared to $1,047,932. Food and Beverage for the current period is $205,684
compared to the prior year's $290,001(which is attributed to the mix of events) and
year to date it exceeds last year's figure at $2,867,860 compared to $2,785,291.
Tradeshow Utilities for year to date are $163,574 compared to $150,451. Total
Operating Revenues are$386,166 compared to the prior year's current period amount
of$476,131 (the difference is attributed to MSHDA which was held in June of 2002)
and the figure for year to date is$5,066,000 versus$4,886,000, which is a difference
of $179,880. Under Operating Expenses — Salaries/Wages for year to date are
$1,811,000 compared to$1,752,000, which is comprised of Stagehand labor. Utilities
for year to date are $611,706 compared to $592,677 for the prior year.
Insurance/Bonding for year to date is $125,206 compared the prior year's $81,158,
which is an increase of $44,000. Food and Beverage expense for year to date is
$1,791,902 compared to $1,719,421 for the prior year for a difference of about
$72,000. Total Operating Expenses are$643,373 compared to$646,090 for the prior
year, and year to date the expenses are $5,770,373 compared to $5,389,126. The
year to date loss is ($704,123) compared to ($502,757) for the prior year. After
taking into account the City Contribution and Interest we have a year to date loss of
($24,236) compared to last year's loss of($174,962).
Total Cash and Restricted Assets for the current year are $483,212 compared to the
prior year's total of$399,625. Accounts Receivable for the current year are$555,615
compared to$594,707. Under Liabilities-Unearned Revenue Advanced Rent for the
current year is$290,050 compared to the prior year's$294,797. Unreserved Equity
for the current year is $437,393 compared to $451,058 for the prior year.
Under Budget versus Actual - our Building Rental for year to date is $1,058,077
compared to the budgeted amount of $1,010,500, which is better than budget by
$47,577. Food and Beverage was better than budget by $167,860 and Equipment
Rental was better than budget by $120,208. Tradeshow Utilities were better than
budget by $48,574 and Labor/Service is also better than budget for year to date by
$84,144. Total Operating Revenues for year to date are $5,066,000 compared to the
budgeted amount of$4,578,000 for a variance better than budget of$488,249 for year
to date.
Under Operating Expenses-Salaries/Wages were higher than what was budgeted for
year to date by ($91,114) and is due to part-time labor. Fringes/Related costs were
higher than budget by ($19,624). Utilities for year to date are higher than budget by
($45,260).
LEPFA Board of Commissioners Meeting
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August 26, 2003
Professional Services were also higher than budget by($106,377)which was attributed
to the temporaries in the Finance Department as well as computer support which
included network and software upgrades. Insurance/Bonding is higher than budget by
($40,606) for year to date.
Food and Beverage expense was higher than budget by ($107,606). Total Operating
Expenses for year to date were higher than what was budgeted by ($459,561). After
netting expenses against revenues, we have a variance better than budget for year to
date of$28,688. After taking into account the City Contribution and Interest, we are
better than budget for year to date by $10,924.
Chairman James Butler noted that based upon the amount of money in reference to the
Insurance/Bonding, for us to still come under budget is remarkable and the staff is to
be commended.
Committee Chairman Sinadinos moved that the monthly Financials for Oldsmobile
Park, the Lansing City Market and the Lansing Center for the period ending June 30,
2003 be received as published, and further that the monthly expenses for each entity
be approved. SUPPORT: Commissioner Cyril McGuire; the motion was
unanimously approved.
C. PRESIDENT AND CEO'S REPORT:
1. Common Ground: Peter thanked the Board for their help and support of our efforts and
for their latitude as a result of their trust. He also thanked the Board members who
volunteered at the festival for their personal efforts as well as the Board members whose
organizations participated as sponsors, specifically Foster, Swift, Collins and Smith, P.C.
and the Plumbers and Pipefitters through Tim Haggart's efforts (they assisted with the
maze and the soccer tournament). He specifically thanked Charley Janssen and Foster
Swift who have been affiliated with Common Ground since the beginning. Peter thanked
the City in general and the specific departments including Parking, Operational Services,
Police, Fire, Parks and Rec, Public Service, Finance and Purchasing who provided
invaluable help. He also thanked Kevin Meyer and our partners at Meridian Entertainment
Group, who actually book the talent, and are lead by the efforts of Kevin Meyer. Peter
noted Kevin couldn't be here today because he was taking his son to college; however,
Peter noted that Kevin sent his thanks and gratitude as well. Peter thanked the staff lead
by the various department VP's, Linda, Bill, Patrick and Marian and he noted without
their help, aid, support and assistance throughout the year, the festival wouldn't have
achieved the results it did.
Challenges: Peter indicated that one of the challenges this year was getting everyone
through the gates due to sellouts on Monday and Tuesday night, which was resolved by
pre wrist banding the patrons before the gates opened, which began on Wednesday night.
Monday night(Boston) was the first sell out in the festival's history and Tuesday was the
second sellout on two stages for Three Doors Down and The Allman Brothers. A third
sellout was Sunday night for Joe Cocker and there were no lines.
LEPFA Board of Commissioners Meeting
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August 26, 2003
Another challenge was the ferris wheel, which did not arrive until Wednesday because it
was stuck in another city in mud, because it is free there weren't many complaints about its
late arrival. The rain was also an issue, but we had rain insurance, and the rain was
avoided, especially on Sunday night when the weather was threatening, but it didn't rain
for the third sell out.
Attendance: The positives included attendance (the figures were outlined on a handout
distributed at the meeting) was up, however there were seven days as opposed to six for
the prior three years. If one uses six days as the benchmark, attendance was up 22%, if
you use six days versus seven attendance was up 44%. In 2000 the attendance was 48,000
and this year the number was 86,788.
Financial: Peter noted we continue to work on finalizing the numbers(there are in excess
of 500 line items). Currently Kevin and Peter plan to meet with the paper later next week.
At 8:45 a.m. Commissioner Janssen excited the meeting.
Peter noted further that while the numbers are not finalized, we do expect a net profit this
year, which is exciting and is substantial, compared to prior years and we hope that the
funds will be reinvested in the festival for next year. This year we spent an additional
$100,000 on talent, which resulted in a great line up. Financially we are very happy, but
cautioned that rain can wreak havoc on festivals financially.
New Initiatives: The Uncommon Club which was a pay one price membership was located
in two areas in the west main stage sold out, and there is a waiting list for next year. He
noted we were very happy about its success. On the west stage side in the rear there was a
new addition called the VIP Skybox, which was rented out on a nightly basis and six of the
seven nights were sold and it will be back next year due to the positive feedback. The
Sandbar, which was in the old amphitheater area, was a tremendous hit and offered music
and happy hour prices and did extremely well financially compared to last year. The first
annual Common Ground Soccer Tournament took place on Saturday at the Hope Soccer
complex. Approximately 40 teams participated in the 4 on 4 tournament and we had rave
reviews about the fields, it was a beautiful day and the kids had a good time. Next year
we hope to contact 60-70 teams and the benchmark is the DeWitt Ox Roast, which is in its
eighth year and hosts approximately 100 teams. We received a lot of positive feedback.
Friday night we also hosted a Swing Dance at the Lansing Center as well as a gospel night
featuring Fred Hammond. Peter noted Friday night was the busiest night with David Lee
Roth on the west stage, the east stage had Jonny Lang, the Swing Dance was in the
ballrooms, Fred Hammond in the exhibit halls and there were no parking issues.
At 8:50 a.m. Commissioner Sharon Peters entered the meeting.
Estimated Economic Impact: Due to the significant increase in attendance, the estimated
economic impact will be close to $5 million this year, which is $1-$1.5 million over last
year. Our Community Share provided approximately $25,000 to groups this year that
assisted in the staffing with food and beverage primarily. We have contributed over
$80,000 in cash over the four years to various service groups.
LEPFA Board of Commissioners Meeting
Page 7
August 26, 2003
Common Ground 2004: The dates are not set, but we are looking at the first or second
week in July. Due to it being a leap year with July 4 on a Sunday, we may open the
festival that week. It most likely will be seven days, and will be the first or second week
in July.
Peter noted overall it was a great year, and they appreciate the assistance of all the people
in the room. Peter opened the floor to address any questions.
Chairman Butler recommended a round of applause for the staff.
2. Union Report: Patrick Talty indicated a hearing was held yesterday and the process
continues and we are currently at a standstill in the negotiation process. We are ready to
negotiate whenever the Union is ready.
3. Lansing City Market: Linda Frederickson reported that rent revenue remains down but is
consistent with 2001. In regard to occupancy the east side remains strong with
vegetables, fruits, flowers and plants and there has been a good mix and a good season.
Focus continues to be on the food and beverage side and is the softness in the overall
occupancy on the west side. Entertainment continues at the market through September.
The market is also participating in the Harvest Hope Fall Festival, which is a citywide
event, and will take place on October 18 this year.
4. Oldsmobile Park: Peter reported that a number of events have been hosted since last
month's Board meeting including the Symphony at the Park and the fireworks on July 3,
which featured Sandi Patty, who is a national recording artist and she did a fantastic job
with the symphony accompanying her. Attendance was estimated at 3-4000 and was
average compare to previous years. We also hosted several charity softball games
including Mongolian Barbeque and St. Vincent's charity softball games. August Park
After Dark movies included Anger Management on August 1 and attendance was low due
to threatening weather;Daddy Daycare on August 2 with over 1,000 attendees and Agent
Cody Banks was cancelled on August 3. On August 16 about 600 people arrived to see
The Hulk, and on August 17 about 700 people viewed Too Fast Too Furious. He noted
overall it is a nice community event and a good use of the ballpark.
Since our last meeting we have also hosted Holywahooza, which is our contemporary
Christian concert, which featured Michael W. Smith. This year we partnered with Trinity
Church who lent promotional support through their congregation and we had 4,000-5,000
attendees.
We continue to work with the Lugnuts; their last game is Labor Day. They have made the
playoffs, and we will find out if they have a home or away playoff series. Their General
Manager, Greg Rauch is moving to Montgomery Alabama and Jeff Calhoun is the new
General Manager, and we wish them both well.
4. Lansing Center: For the month of June, we hosted 47 events, equating to 61 event days,
attracting close to 13,000 people through our doors,for approximately 800 room nights for
an estimated economic impact of close to$420,000. In comparison to June 2002, we were
down in event days; and similarly in attendance, room nights and the economic impact and
LEPFA Board of Commissioners Meeting
Page 8
August 26, 2003
MSHDA played a role in the variance of the numbers. For the year 2002/3 we were up in
event days at 823, building rental was$7,000 higher, extra charges were$140,000 higher;
and banquet income was up about$90,000. We were down in attendance, down slightly in
room nights and down slightly in economic impact, but revenue was up and this points to
the mix of events.
• Sales Update: Peter noted we sent staff to visit the Wally Byum rally in Vermont
in an effort to secure food functions and have booked 25 food functions to-date, (it
is scheduled for June/July in 2004 in Lansing for two and half weeks), and it is
anticipated that we will book more food functions. We also sent operational staff.
Michigan Floral is moving to Grand Rapids for 2006-2010 and the Townships
Association is moving to Grand Rapids in 2007 and 2008 due to preferred dates,
which points to the need for expansion and additional space. In addition, a
number of LEPFA Staff members attended a trip to Grand Rapids, which was
sponsored by the CVB, and was hosted by the Grand Rapids CVB. A hardhat tour
of the new building was provided and Peter noted the building is 165,000 square
feet of exhibit space divisible into three halls with approximately 60-65,000 square
feet per hall and adjacent to it is a 40,000 square foot ballroom, at a cost of$200
million. Peter noted that it is very important that we figure out funding, which we
have been working on with the consultant. The building is called "DeVos Place"
and they will have more flexibility than we do currently at 72,000 square feet of
exhibit space, and they have 1,100 rooms within two blocks and we have 288.
Peter commented that while they are a larger market and they should be larger; if
we were to determine a way to expand the building and hotel rooms we could be
competitive by expanding to 100,000 square feet of exhibit space, adding another
ballroom of 30,000 square feet,we can be competitive. Our central geographical
location is our one advantage. We have been discussing the issue since 1999, and
while the economy and 9/11 did not help, Grand Rapids received their$65 million
from the Engler administration before 9/11 and we need to figure out how to move
forward.
• New/Confirmed/Repeat Business: Peter reported we lost Mary Kay for a year or
two, but they are returning in 2005. In 2006 we have confirmed the General
Association of Regular Baptist Churches, which is new business for June 2006.
For the first time, we hosted this month the International Graphing Equipment
Tradeshow. The Midwest Reps Association is also returning in the spring and
possibly the fall of 2005 through 2008 after moving to Soaring Eagle. Spartan
Stores, which moved to Grand Rapids, is returning. Peter shared the issues the
Sales Department is encountering in terms of the limits of our size and our
inability to accommodate multiple shows at once.
Peter also noted that the Sales Department will participate in the Chamber Show
here, at the Lansing Center, in September.
LEPFA Board of Commissioners Meeting
Page 9
August 26, 2003
• July/August Event Highlights: During the past two months we have hosted
numerous weddings, church groups, and a new event, the Great Lakes Feis
Competition, which had over 1,200 dancers competing at various levels with over
2,000 people attending, and they are scheduled to return in 2004. Peter noted we
hosted three first time groups this month. The last group was Triton Industries,
which is a local company that manufactures and sells pontoon boats, they had
boats in the Grand River with their show in Hall B and people were able to test the
boats on the Grand River.
Chairman Butler commented that while Peter's report was long, it was great, because there are
many things happening at the Lansing Center and that's what it is all about. In reference to the
City Market, Chairman Butler reminded those present of the Mayor's focus on the City
Market. In reference to the movies, he noted that it impacts the community's quality of life
and allows people to come out and see a movie at a low cost for families. In regard to event
days being up for the Lansing Center, he noted that it is good as well as the revenue being up.
Chair Butler noted in reference to the disparity in Grand Rapids' 165,000 square feet to our
72,000 square feet and also the room nights with their 1,100 compared to our 288 indicates
that the urgency of the minute is now and we have to develop strategy in the course of the year
to get the type of funding that is necessary for us to be competitive.
D. LONG RANGE PLANNING COMMITTEE: Chairman Janssen left a report with Chairman
Butler indicating that he had a critical meeting that he had to attend, and noted that the Long
Range Committee did not have a report at this time, but that they would be meeting soon.
Chairman Butler noted that we do have friends at the State that may be willing to sit down and
discuss strategy and that they would be interested in our development and growth.
E. PERSONNEL COMMITTEE: Chairman Butler reported that the committee has not met, but
will be looking at the contracts, incentives and evaluations within the next month.
Chairman Butler questioned the comments reflected in the minutes that Commissioner Janssen
had recommended the Uncommon Area. Peter noted that he has pushed for something like the
Uncommon Club for some time, and it was replicated from a club that was seen at the Sun
Fest. Peter noted we are looking at options for the club, but the biggest challenge next year
will be space, and we are already meeting with the City on this issue.
VII. COMMISSIONER AND STAFF COMMENTS:
1. Marian Bryant: Marian thanked those commissioners that volunteered in her area, and noted
that it was appreciated and helped us achieve the success that we have had.
2. Commissioner Charlotte Sinadinos: Commissioner Sinadinos commented that she thought
Common Ground was awesome this year, that it seems to get smoother each year and that she
was happy to have volunteered.
3. Councilmember Harold Leeman: Councilmember Leeman noted that Common Ground was a
great event and that he appreciated all that LEPFA does. Chair Butler asked if there was
anything to report from last evening's council meeting, and Councilmember Leeman noted that
there was no report.
LEPFA Board of Commissioners Meeting
Page 10
August 26, 2003
4. Commissioner Sharon Peters: Commissioner Peters noted that is was a great meeting to come
to, although late, because there is so much good news. She also noted that she really enjoyed
Common Ground this year and is so glad to see us bring in a profit.
At 9:25 a.m. Jim Ruff exited the meeting.
5. Commissioner Ellen Jeffries: Commissioner Jeffries welcomed Commissioner Cyril McGuire
back to the back row, and complimented him on a great job as Chairman. She also indicated
that she wanted to add her praise of Common Ground and that each year it gets better, and the
organization gets better. Commissioner Jeffries noted that she works with Heidi and she is
extremely organized and that the entire staff is really dedicated, they all put in so much extra
time and that it is hard to hire people as good as they are. Chairman Butler indicated that he
was willing to work with Ellen, since they are a part of the state, to look at strategies, etc.
regarding expansion funding.
6. Commissioner Denise Wootton: Commissioner Wootton noted that she thought Common
Ground was wonderful, that she was happy to be a part of it and that all of the comments at the
Sand Bar, even on Monday night when the lines were long and people were willing to put up
with the inconvenience, were wonderful and more than positive.
7. Heidi Brown: Heidi thanked Brian and Ellen Jeffries for volunteering at the information
booth, and noted that they did a wonderful job and it was nice to have them.
8. Patrick Talty: Patrick asked those present to read number eight on the Lansing Center Event
Highlights report, which gives details as to what our staff did in terms of the blackout. He
noted that our staff pulled a miracle and that it was very impressive and he is very proud of our
team. He also thanked Peter for his leadership during Common Ground and for knowing when
to get out the way and let the Operational staff do their job. Chairman Butler noted that
Patrick has become very involved in the East Lansing community in that he sits on a number of
boards and shows a level of commitment to his community and the quality of life.
9. Peter Sullivan: Peter noted in regard to the blackout, after the fact, and when we were through
with the sensitive time, we joked that the lights went out on Broadway, but they did not go out
at the Lansing Center, which was true. The Heritage Academies were extremely pleased and
grateful and will send a letter in regard to the staff's performance. Even though overall we
were lucky in terms of the generator, the event still had to be coordinated and serving 1,600
people in the dark, and producing a full stage performance with lights and video and not
having any power (which was done through generator power), and sending the people safely
on their way was a true indication of hard work, team work and dedication. Peter noted he
sent a memo to staff regarding their hard work.
10. Commissioner Janssen via Chairman Butler: Commissioner Janssen noted that he felt it was
amazing that we appear to have made budget on a very down year and he commended staff
and leadership. He also noted that Grand Rapids is on-line and we will have to brace for this
competition and the City Council and Mayor need to be aware of this and we need to do
everything that we can to make sure that we are competitive because the urgency of the
moment is now. He also asked if we are rewarding our staff for the additional work involved
with Common Ground?
LEPFA Board of Commissioners Meeting
Page 11
August 26, 2003
11. Chairman James W. Butler III: Chairman Butler commented that he is extremely proud of
Common Ground, from where it has started to this point in time and while we have recognized
a growth in terms of the activity and the leadership, it seems like every year we do something
different. He noted that the staff and the overall leadership has been fantastic, and we could
have not asked for anything better.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
Peter presented past Chairman McGuire with a plaque, a crystal baseball, and a gift basket in appreciation
and thanks for his leadership. Commissioner McGuire indicated that he enjoyed his tenure and that he
appreciated all of the attention.
At 9:32 a.m. it was moved that the meeting be adjourned. Motion: Commissioner McNenly Second:
Commissioner Jeffries.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, SEPTEMBER 23, 2003 AT
8:00 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING - -- -
SEPTEMBER 23, 2003
MINUTES
At 8:02 a.m. Chairman James W. Butler III, called the meeting to order in the Governor's Ro6lof the
Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James W. Butler III,Tim Haggart, Charles Janssen, Ellen Jeffries, Cyril
McGuire, Sharon Peters and Denise Wootton.
COMMISSIONERS EXCUSED: Jim Ruff (Ex-Officio), Doug Rubley (Ex-Officio) and Charlotte
Sinadinos.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson,William Grove, Peter Sullivan,
and Patrick Talty -Lansing Entertainment and Public Facilities Authority; and Sandy Allen, Lansing City
Council.
III. ESTABLISHMENT OF THE AGENDA:
The agenda was accepted as presented.
IV. PUBLIC COMMENT:
There was no public comment.
Chairman Butler asked Councilmember Allen if she would like to report on last evening's City
Council meeting. Councilmember Allen noted that the meeting was long and there were many
comments regarding the Mayoral candidates. She also apologized for her absence from the Board
meetings, and explained that she had a death in her family.
V. APPROVAL OF THE MINUTES OF AUGUST 26, 2003:
The minutes of August 26, 2003 were adopted as presented. MOTION: Commissioner McGuire
SECOND: Commissioner Janssen, motion carried.
VI. REPORTS:
At 8:05 a.m. Marian Bryant entered the meeting.
A. CHAIRMAN'S REPORT: Chairman Butler reported the following:
1. Finance Committee Report: Chairman Butler thanked Marian Bryant for doing an
outstanding job at the Finance Committee meeting in Committee Chair Sinadinos'absence.
2. Michigan Heritage Academies Letter: Chairman Butler commented on the very strong
letter sent from the National Heritage Academies, noting Ginger Young used words such
as "professionalism," and "stellar customer service." She further commented that she
"loved the Lansing Center" and that the Lansing Center went way beyond their
expectations and indicated that the staff was "phenomenal." Chair Butler noted that the
evaluation was also off the chart and he commended the staff on an outstanding job.
LEPFA Board of Commissioners Meeting
Page 2
September 23, 2003
3. Lansing Regional Chamber of Commerce Letter: Chairman Butler noted that he also had
an opportunity to read a letter sent from Barb Lezotte and Bill Sepic from the Lansing
Regional Chamber of Commerce regarding the outstanding success of Common Ground
2003. They thanked everyone for their leadership and vision.
4. 2003 Common Ground Recap Report: - Chairman Butler noted after further reviewing
the report, he felt the financial analysis was right on the money and that the format was
good and the content was excellent in its simplicity. He noted he also heard comments
from the Lansing State Journal and they were comfortable with the format as well.
5. Ford Field/Detroit Lions Game-Founding Suite Holders: Chairman Butler reported that
he had the opportunity on Sunday to join the Oldsmobile Park Founding Suiteholders and
LEPFA staff on the annual outing, which was a Detroit Lions game this year. He noted
that it was tremendous trip and the feedback was wonderful and he thanked the staff for
thinking outside of the box and including him.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials - For the Period Ending July 31 2003: In Chairman Sinadinos'
absence, Marian Bryant reported the following:
a. Lansing City Market: Building Rental for the current period is $5,119 compared to
$5,789 for the prior year. Total Operating Revenues are $5,334 compared to $5,824.
Under Operating Expenses - Utilities are $3,003 compared to $3,352. Insurance and
Bonding is $377 compared to $311 for last year. Total Operating Expenses are $8,761
compared to $8,184. After adding the City Contribution and Interest, we have excess
revenues over expenses for a net income of$6,664 compare to last year's income of
$7,749.
Cash is up at$76,778 compared to$61,917 for the prior year. Accounts Receivable is up
at$118,887 compared to$85,202 for the prior year, which reflects a Lansing Center Loan
and money that is owed the Market by Common Ground. Unreserved Equity for the
current year is $179,208 compared to the prior year's amount of$166,092.
Under Budget versus Actual, Building Rent was down compared to last year, but is within
budget at$5,119 compared to the budgeted amount of$5,019. Overall Total Operating
Revenue is $5,334 compared to the budgeted amount of $5,079. Under Operating
Expenses - Utilities are right on budget at $3,003 compared to the budgeted amount of
$3,041. Marketing is$250 compared to the budgeted amount of$1,859, which is a timing
issue. Total Operating Expenses are$8,761 compared to the budgeted amount of$10,962
which is better than budget by $2,164 and after netting Expenses against Revenues we
have an Operating Loss of($3,426) compared to the budgeted amount of($5,847). After
adding in the City Contribution and Interest we are better than budget by$6,664 compared
to the budgeted amount of$4,468. Overall we are better than budget by $2,196.
At 8:14 a.m. Commissioner Sharon Peters entered the meeting.
LEPFA Board of Commissioners Meeting
Page 3
September 23, 2003
b. Oldsmobile Park: The Event Revenues are $63,463, which is comprised of the
Symphony and the Mongolian Barbecue baseball game. Event Expenses are
$79,378 which equates to a net loss of($15,915) compared to last year's loss of
($11,653). The loss has been netted against the Net Development Fund and there
will be additional expenses. Commissioner Butler asked what caused the increase
in Event Expenses and Marian indicated that there were additional costs associated
with having a soloist this year for the Symphony.
Under Operating Expenses — Salaries/Wages are $3,890, compared to last year's
amount of$4,054. Utilities are $412 less than last year at$4,531 compared to
$4,943. Insurance and Bonding is at$5,744 compared to the prior year's $6,916
and the variance is due to how the insurance was spread last year in that it was
higher in the first 6 months; overall it will be higher than last year at all facilities
with a 22% increase. Peter noted our insurance costs, which we do not control,
have increased 80-85%. The Operating Loss is ($18,989) compared to last year's
loss of($21,440). After factoring in the City Contribution and Interest, we have a
net income of$1,079 compared to a net loss last year of($1,599).
Our Total Cash position for the current year is $168,906 which exceeds the prior
year's amount of$57,504, which attributed to Accounts Payable. The Net Event
Development Fund is $56,631 compared to $65,123 for last year. Unreserved
Equity is at$83,458 compared to $91,786 for last year.
Under Budget versus Actual -Operating Expenses, Salaries/Wages are $181 better
than budget. Utilities are $4,531 compared to the budgeted amount of$4,379,
which is $152 higher than budget. Total Operating Expenses are $18,989
compared to the budgeted amount of$19,365, which is $375 better than budget.
After adding in the City Contribution and Interest we have a net income amount of
$1,079 compared to a budgeted amount of$893, which equates to $186 better than
budget.
c. Lansing Center: Building Rental is down by $12,000 compared to last year. This
year we are at $12,405 compared to the prior year's amount of$24,046. Food and
Beverage is at$49,760 compared to$70,442 for last year. Total Operating Revenues
are $72,194 compared to last year's $124,436 which is down about$52,000. Under
Operating Expenses — Salaries/Wages for year to date are at$102,121 compared to
$94,913 last year, and the difference is attributed to having three pay periods this July.
Utilities are $47,253, which is down about$3,600 compared to last year's amount of
$50,927. Food and Beverage Expense for year to date is $78,350 compared to
$78,620 for the prior year, which was also impacted by the three pay periods in July.
Overall Operating Expenses are $347,995 compared to last year's $324,024. After
factoring in the City Contribution and Interest we have a loss of($219,810)compared
to last year's loss of($134,270). Peter commented that last July,Michigan Works was
a part of the budget and this year they are in September. He noted we also had
Diamond Quest in July as well last year, which explains the difference. Marian noted
that we are within budget, but higher than last year's figures.
LEPFA Board of Commissioners Meeting
Page 4
September 23, 2003
Total Cash and Restricted Assets is at $257,221, compared to last year's $408,979;
however if you factor in Accounts Receivables and Accounts Payable, we would be
closer to last year's figures. Unearned Rent is higher than last year at $334,416
compared to $322,428, which is a positive indicator of future business. Unreserved
Equity is $206,701 compared to $316,787 last year. Peter noted the "Furniture,
Fixtures & Equipment" amount of $986,676 is the value of FFE and the
"Accumulated Depreciation" figure is($799,176)indicates that we are close to the end
of the depreciation of our physical assets. He noted further that in conjunction with
the City, we need to find some capital dollars for physical improvements to the
building in anticipation of the expansion, in order to remain competitive in a highly
competitive market place. Peter noted that we need to look at the potential of LEPFA
participating in the City's annual CIP program in mid-late October, which has been
discussed with Doug Rubley. In addition, as a part of our budget process with the
City, as was established eight (8) years ago, we are to include $50,000 worth of
capital in our budget submission and in light of the age of the building, the figure
should be raised. He noted we need to have the City focus with us on capital
requirements(i.e. the compressors are going out) because we will not be able to bear
the brunt of capital repairs as we have in the past seven years in our operating
budget/reserves. Peter commented further that no City department has to deal with an
80% increase in their insurance and a 60% increase in their medical benefits.
Councilmember Sandy Allen asked what figure we were looking at for Capital
Improvement and Peter noted$200,000 -$250,000. Peter reported that we continue
to work on being creative in our repair strategies, i.e. we have approached the
Carpenters Union to assist us with repairing our doors, however, the folding doors in
the exhibit halls and the ballrooms have lower portions that are marred and need to be
addressed and the City is aware of our issues. Sandy Allen asked if there are any
structural problems. Peter indicated there may be structural issues below the building
with the pillars and a capital repair has been made to dock A. The analysis indicated
that there is at least one load bearing column that needs to be tested. Peter noted over
the past seven years we have spent close to $700,000 on capital expenditures and
$350,000 has been paid out of our operating account. Chairman Butler suggested
developing a communication strategy to address our needs, as well as to have an
advocate to support us and develop a form to address questions. Sandy Allen noted
that it is also very helpful that Peter meets with Council individually at budget time as
well. Chairman Butler also suggested putting together a document to outline our
requirements.
Under Budget versus Actual - our Building Rent is $12,405 compared to a budget of
$16,400, which is less than the budgeted amount by$4,000. Food and Beverage was
at $49,760 ($3,200 less than budget) compared to the budgeted amount of$53,001.
Total Operating Revenues are $72,194 compared to the budgeted amount of$79,951
which is $7,700 less than the budgeted amount.
LEPFA Board of Commissioners Meeting
Page 5
September 23, 2003
Under Operating Expenses- Salaries/Wages are $102,121 compared to the budgeted
amount of$111,047, which is $8,900 better than budget. Utilities for the period are
$47,253 compared to the budged amount of$48,419 for a difference of$1,100 better
than budget. Insurance/Bonding is at $11,952 compared to the budgeted amount of
$11,049 which was about $1,000 higher than budget. Food and Beverage was at
$78,350 compared to the budgeted amount of $72,949, which $5,400 higher than
budget. Total Operating Expenses were$347,995 compared to a budgeted amount of
$343,061, which is $4,900 higher than budget. After netting expenses against
revenues, we are ($12,691) higher than budget and after factoring in the City
Contribution and Interest, we are($13,857)over budget. Marian noted the budget line
item "Excess Revenues Over Expenses" ($160,736) should equal. Depreciation and
Food and Beverage Depreciation line items at$97,000, and the difference is what we
asked the City for in our budget process compared to what we were funded. Peter
clarified that the budget indicates we are ($13,000) but actually the amount is about
($80,000)when you consider our under funding. Commissioner Peters asked if there
is any way to adjust when we are under funded and what are we doing to compensate
for the under funding? Peter noted we are considering layoffs for the first of the year,
and we have been very aggressive in terms of sales creation and events throughout the
year. Marian noted we are also controlling expenses.
At this time it was noted that Commissioner Janssen had to exit the meeting, and as such
he gave his report. Commissioner Janssen noted that they have discussed the capital
improvements and agrees that is needed to keep the Lansing Center in good repair.
Committee Chair Janssen and the Long Range Planning Committee have discussed moving
funds in the budget to capital improvement but it cannot be done. This topic has been
discussed at Long Range Planning committee meetings and if we were expanding, we
wouldn't be looking at improving the existing facility. The committee continues to look at
the expansion, and a meeting has been set for October 7 with all the vested parties (the
CVB, EDC and our consultant)and it is hoped that we will have a strategy to move ahead.
Commissioner Janssen noted based on our economy and the competition, even if we move
ahead with the expansion plan, we will still need capital replacement funding as it will be
two to three years out. He noted after the meeting we should have a better sense of the
long term planning and the expansion plan.
Commissioner Peters noted that as good stewards of our budget and our operations, we
need to reflect all of our recognitions, and while we are doing our best to curtail expenses,
there are things short of layoffs that we can do; when revenues come in shorter than
budgets, we need to make many adjustments.
Sandy Allen noted the nature of convention centers makes it very difficult to make the
adjustments and the old saying, "it takes money to make money" is true in the convention
business and while we are confronted with a difficult time, we have to weather through.
Furthermore she noted that it is recognized that the Lansing Center is an important part of
Lansing's economy. Councilmember Allen noted she has questions that she would like to
address with Peter.
LEPFA Board of Commissioners Meeting
Page 6
September 23, 2003
Commissioner Ellen Jeffries noted that this is only the first month of the fiscal year, and
each month the Finance Committee looks at getting more business and at keeping expenses
in check. She commented that if this current trend was to continue and the deficit
increased, we would have to take measures. Commissioner Jeffries noted further that the
reason for Peter's comments is to emphasize that had we received the money that we
requested, we would be right on budget.
Peter commented that two years ago we were behind budget by $120,0004125,000 the
entire year until May, which was discussed with the City and they made adjustments that
helped the budget. Layoffs are only one piece of a comprehensive strategy, and a last
resort, however, may at some point need to be seriously considered. Sandy Allen asked if
emphasis is put on the Lansing Center during Common Ground. Peter noted that in the
convention center business the months of June, July and August tend to be slower in most
centers. Peter noted the CVB is the marketing arm for the Lansing Center, the City and
the region for public relations and tourism. He noted he would encourage Council to ask
the CVB about the process to replace their CEO.
Marian noted that the draft copy of the audit will be reviewed with the Finance Committee
next month.
Commissioner Peters moved to accept the Finance Report as presented by Marian Bryant.
SUPPORT: Commissioner Cyril McGuire; the motion was unanimously approved.
C. PRESIDENT AND CEO'S REPORT:
1. Union Report: No report.
2. Lansing City Market: Linda Frederickson reported that rent revenue is down compared to
last year but is comparable to budget. August occupancy was at 71%. There is a new
vendor, Jane Bush came on board in September and will be selling tomatoes, apples and
cider through the fall season. Linda noted entertainment continues at the Market and this
past weekend the Market hosted the fall "Adopt a River"program. In October the Market
will host the fourth annual "Orchid Sale" and the City will host the "Harvesting Hope Fall
Festival" on October 18. Chairman Butler requested a copy of the Market entertainment
schedule and noted that he would like to invite the Mayor and Council to the Market as
well. Peter reported that we are working with a potential permanent food vendor for the
west side of the Market and if and when a final contract is issued, we will have a press
conference and we are encouraged by the process.
3. Oldsmobile Park: Peter reported that while we have not hosted any events, the Lugnuts
did make the playoffs, and swept the Mid-West championship and is the first team to
sweep through the playoffs. Overall the Lugnuts had a good year, despite ten rain out
days, which is the most that they have ever had which equates to a total of 364,000 in
attendance(which is the first time attendance has been below 400,000)which is an average
of 5,800 a game. They also introduced "Thirsty Thursdays" this year which will continue
next year. They are looking at new programs for next year also.
LEPFA Board of Commissioners Meeting
Page 7
September 23, 2003
As was mentioned by Chairman Butler, the Founders trip this year was to the Lion's game
and a good time was had by all, despite the Lion's loss.
Fright Night is being built at Oldsmobile Park, and Peter thanked Tim Haggart for his help
in connecting us with the Carpenters union, and we are working with the painters union as
well.
Peter also noted that we had a Management versus hourly softball game in August, and no
one was hurt, the game was a tie and was a great event for staff.
Lansing Center:
• Sales Update: Peter indicated that we have booked 30 food and beverage events
associated with the Wally Byum event for next June/July, which could be a great
source of revenue.
• New/Confirmed/Repeat Business: We have issued contracts for 2006-8 to the
Michigan Veterinarian Medical Association and we have issued 10 contracts to
Mid West Reps Association for five trade shows from August 2004-2008, which is
an example of our attempt to lock our existing clients into three to five year deals,
which was started a year ago in anticipation of Grand Rapids opening up.
Michigan Vets, Mid Western Reps, and Michigan Science Teachers have signed
multi year contracts and we have approached the State Bar of Michigan for 2005-
10. National Heritage Academies have confirmed their return for their Gala for
August 2004, they looked at Grand Rapids and they were $27,000 more to host
the event.
• August Event Highlights: Peter noted that in early September we hosted the
"State Wide Ice Breaker" which was comprised of 3,300 youth who attended the
state-wide college party which was promoted by Joshua Gillespie (he also
promotes Taste of Blackness) and was a great event with no issues. Michigan
Public Health Institute, the City of Lansing Retirement Seminar; and the State Bar
of Michigan returned in September for their annual meeting with over 400
attendees. New events for the month include the Longaberger Company which
had over 1,200 attendees. Other September events include the IRS, the Capital
Area Michigan Works! Job Fair had over 1,000 attendees; the Department of
Natural Resources; Michigan's Children; Michigan Department of Treasury and
today the Lansing Chamber of Commerce will be hosting their annual trade fair
with a luncheon and a speaker/seminar entitled "The Disney Way" in banquet
rooms 1-4. Other events hosted at the Lansing Center included three weddings,
one quincenera, and the Lion's Den Church and the House of Power and Prayer
continue to meet every Sunday.
Peter noted on Tuesday, October 7 at 2:00 p.m. our consultant will be making a final
presentation to a composite group of LEPFA, EDC and CVB Board members to
finalize the draft of financing strategies for the Lansing Center.
D. LONG RANGE PLANNING COMMITTEE: No further report.
LEPFA Board of Commissioners Meeting
Page 8
September 23, 2003
E. PERSONNEL COMMITTEE: Chairman Butler noted that he will be making new assignments
in reference to the Personnel Committee and he noted that the Committee will be looking at
incentives in regard to Common Ground. It's also time to look at contract renewals and
restructuring and updating accordingly. They will also look at raises and the structuring of that
as well.
VII. COMMISSIONER AND STAFF COMMENTS:
I. Commissioner Sharon Peters: Commissioner Peters noted that Michigan's Children held a
small meeting at the Lansing Center and it went very well and she commended staff,
Tarena in particular for her attentiveness. She also noted that she appreciated today's
discussion which focused heavily on the budget, and that it is important for us to discuss
budgets not just as they are being put together, but as they are being implemented.
Commissioner Peters noted that the points that she hoped to bring up, came up very well,
which is that there is a big picture and that we look at all the areas recognizing what we
have and how we work, but the points of the need to develop our downtown, which is in
today's paper. She noted that the residential/downtown is one of the competitive issues
that people look at when they are considering where to host their conventions, and it is
helpful when there are places for the conventioneers to enjoy other activities and we need
that competitive advantage as well. Commissioner Peters indicated that it is important for
this Board to recognize that we do operate in a community and the need to work with the
Convention Bureau, the City and all the entities that can, to create a more vibrant Lansing
in order to be successful. She noted that she appreciated the discussion and knows that the
discussion will be ongoing and that she thinks our staff is doing a fantastic job.
2. Linda Frederickson: Linda noted the Lansing Center has a double booth at the Chamber
Expo today (one for the Lansing Center and one for Common Ground), and will host the
complimentary hors d'oeuvres portion (as we do annually) in support of our partnership
with the Chamber. She noted she has complimentary passes if anyone is interested.
3. Commissioner Ellen Jeffries: Commissioner Jeffries noted that she would like to echo
Commissioner Peters' comments and to follow up with what Peter said in regard to the
Director of the Convention/Visitor's Bureau, in that it is an important position to be filled
and she noted that she would like to know what the process is, and how they go about
filling it.
4. Councilmember Sand: Councilmember Allen indicated she also echoed the
sentiments regarding the Convention/Visitor's Bureau and she will be meeting with Lee
Hladki regarding what they are doing and when. She also noted that we have an asset in
the Riverwalk Theater and asked if the Lansing Center promotes it, noting that it would be
an attraction for convention goers and suggested that we promote them as a part of our
entertainment venue. Linda noted the CVB does promote them in their packets, and we
have brochures as well.
5. Commissioner Cyril McGuire: Commissioner McGuire again thanked everyone for the
gift basket, in particular the chocolate Band-Aids. He expressed his appreciation.
6. Chairman James W. Butler III: Chairman Butler noted he will be making committee
assignments soon and new rosters will be distributed as well.
LEPFA Board of Commissioners Meeting
Page 9
September 23, 2003
As was discussed earlier in reference to the Lansing Center maintenance and
communication strategy, he will work along with Charley and the other board members to
make sure that they discuss and focus on it in terms of real time.
Chairman Butler also asked Peter to assist him in planning an appreciation event for Kate.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:23 a.m. it was moved that the meeting be adjourned. Motion: Commissioner McNenly Second:
Commissioner Jeffries.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, OCTOBER 28,2003 AT 8:00
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
OCTOBER 28, 2003
MINUTES
At 8:02 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, Charles Janssen, Ellen Jeffries, Cyril McGuire,
Sharon Peters, Jim Ruff(Ex-Officio), Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Tim Haggart, and Doug Rubley (Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, William Grove, Peter Sullivan,
and Patrick Talty - Lansing Entertainment and Public Facilities Authority. James Smiertka, City of
Lansing.
III. ESTABLISHMENT OF THE AGENDA:
The agenda was accepted as presented.
IV. PUBLIC COMMENT:
There was no public comment.
V. APPROVAL OF THE MINUTES OF SEPTEMBER 23, 2003:
The minutes of September 23, 2003 were adopted as presented. MOTION: Commissioner Janssen
SECOND: Commissioner Peters, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman Butler reported the following:
1. Kate McNenly Luncheon: Chairman Butler noted that a luncheon was held for Kate
C;, McNenly at the Country Club of Lansing, and she was ecstatic, and a number of Board
members and Peter attended as well. Commissioner Sinadinos read a thank you note sent
L; to Chairman Butler from Kate McNenly.
J
2. Finance Committee: Chairman Butler reported that the Finance Committee met yesterday
and the meeting included the auditor. He reported that we passed the audit with flying
colors, and the auditor had nothing but complimentary things to say about LEPFA, and he
stated that Marian and management had done a super job. Chair Butler extended his kudos
-.. -- to management and Marian. He also noted that the Finance Committee does a super job as
well and are always focused, and they review the budget with a fine tooth comb and asked
a lot of questions.
At 8:04 Cyril McGuire entered the meeting.
He also noted that LEPFA beat many of the budget items per se in many areas, and had
the City not under funded us by$60,000, we would have made all areas in reference to the
budget.
At 8:05 a.m. Ellen Jeffries entered the meeting.
LEPFA Board of Con-Wassioners Meeting
Page 2
October 28, 2003
At 8:06 a.m. Jim Smiertka and Jim Ruff entered the meeting
3. Commissioner Roster: Chairman Butler noted the updated roster has been included in the
packets, and he also requested a break out of phone numbers for Marian, Patrick, Linda
and Peter.
4. Committee Assignments: - Chairman Butler noted assignments will be out after the first
of the month.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials - For the Period Ending August 31, 2003: Committee Chairman
Sinadinos reported the following:
a. Lansing City Market: Building Rental for the current period is $4,299 compared to
$4,268 for the prior year and for the current period the amount is $9,418 compared to
$10,057 for last year. Total Operating Revenues for year to date are $9,668 compared to
$10,133 for the prior year. Under Operating Expenses- Utilities for the year to date are
$5,986 compared to $6,217 for the prior year. Insurance and Bonding for year to date is
$754.82 compared to $622.68 for last year. Total Operating Expenses for the current
period are $11,628 compared to $9,901 for the prior year; Total Operating Expenses for
year to date are$20,391 compared to the prior year's amount of$18,086. After adding the
City Contribution and Interest, we have excess revenues over expenses for a net income of
$9,463 compare to last year's income of$12,273.
Cash is $94,662 compared to $65,131 for the prior year. Unreserved Equity for the
current year is $182,006 compared to the prior year's amount of$170,616.
Under Budget versus Actual, Building Rental for year to date is $9,418 which is down
compared to the budgeted amount of$9,468 which is ($49.34) less than budget. Total
Operating Revenues are $9,668 compared to the budgeted amount of$9,588, which is
better than budget by $80.66. Under Operating Expenses - Utilities are better than
budget by $95.31. Insurance and Bonding was more than budget by ($112.00) for year
to date. Total Operating Expenses for the current period are better than budget by
$1,117 and for year to date we are better than budget by $2,917 when factoring in the
City Contribution and interest.
b. Oldsmobile Park: The Net Event Revenues are $110,717, which is comprised of
Holywahooza, the Park After Dark movies, and a charity softball game. Event
Expenses are $100,823 which equates to an income of$9,894, which was applied to
the Event Development Fund. Under Operating Expenses, Utilities for the current
period are $4,887 which is up over the prior year's amount of$4,265; and year to date
Utilities are $9,419 compared to $9,209. The Operating Loss for year to date is
($37,313) compared to last year's loss of($44,356). Excess Revenues over Expenses
are $2,828 for year to date compared to the prior year's loss of($4,444).
Our Total Cash position for the current year is $344,532 which exceeds the prior year's
amount of$312,012. The Net Event Development Fund is $66,255 compared to
$46,840 for last year. Unreserved Equity is at $115,151 compared to $90,491 for last
year.
LEPFA Board of Commissioners Meeting
Page 3
October 28, 2003
Under Budget versus Actual - Utilities were higher than what was budgeted by $508.86
for the current period, and for year to date they are higher than what was budgeted by
$661. Insurance/Bonding was higher than what was budgeted by $994.50 and for year
to date it is higher than budget by $1,988. Total Operating Expenses for the current
period are better than what was budgeted by $5,471 and for year to date our Operating
Expenses are better than what was budgeted by $6,337. After adding in the City
Contribution and Interest adjustments, we are better than budget for year to date by
$5,963.
c. Lansing Center: Building Rental for this month was$40,840 which is down from last
year's$66,222 and the difference is due to events such as the Democratic Convention, and
Spartan Motors, which met last August. Food and Beverage is $111,863 compared to
$261,312 for last year. Total Operating Revenues for the current period are $208,720
compared to last year's $395,666 and the year to date revenue is $280,914 compared to
$520,102. Under Operating Expenses - Salaries/Wages for year to date are up at
$237,444 compared to $216,996. Utilities for year to date are $94,314, which are down
from the prior year's amount of$107,557. Insurance and Bonding is very close at$23,905
for year to date compared to $23,792 for the prior year. Food and Beverage Expense for
year to date is $182,559 compared to $238,375 for the prior year. Total Operating
Expenses for the current period are$401,431 compared to$446,177 for the prior year and
for year to date the figures are $749,426 compared to $770,201for last year. We have a
year to date loss of($356,573) compared to last year's loss of($119,518).
Cash and Cash Equivalents equal $112,831 for this year compared to $223,235 for last
year. Under Liabilities - Unearned Advanced Rent, which is an indicator of future
business, is up at $316,123 compared to $306,223 for last year. Unreserved Equity is
$69,939 compared to $331,539.
Under Budget versus Actual - our Building Rental for year to date actual is $53,245
compared to a budgeted amount of $58,335. Food and Beverage was at $161,624
compared to the budgeted amount of$196,002. Total Operating Revenues are$280,914
compared to the budgeted amount of$286,450 which is less than budget by ($5,535) for
year to date.
Under Operating Expenses - Utilities are better than budget for year to date by $2,523.
Insurance/Bonding exceeds budget by ($1,807); Food and Beverage expenses are better
than budget by$10,211. After taking into account the City Contribution and Interest, we
are ($5,032) over budget.
2. Monthly Financials - For the Period Ending September 30, 2003: Committee Chairman
Sinadinos reported the following:
a. Lansing City Market: Building Rental for the current period is $4,562 compared to
$5,484 for the prior year and the year to date the amount is$13,980 compared to$15,541
for the prior year. Total Operating Revenues for year to date are $14,265 compared to
$15,668 for the prior year.
LEPFA Board of Commissioners Meeting
Page 4
October 28, 2003
Under Operating Expenses- (we had three payrolls in September)payroll for the current
period is $5,242 compared to$3,453 for the previous year and for year to date the figure
is $11,908 compared to the prior year's amount of$9,597. Utilities for year to date are
$9,091 compared to$8,850. Total Operating Expenses for the current period are$12,901
compared to the prior year's amount of$10,944 and for year to date the figure is$33,292
compared to$29,030. Excess Revenues over Expenses are $11,259 for year to date and
$16,982 for the prior year. Under the Balance Sheet, our Cash position for the current
year is$92,090 compared to the prior year's amount of$84,167. Unreserved Equity is at
$183,803 compared to $175,325. In regard to Budget versus Actual, the Building Rental
for the current period is better than budget by$332.00 and for year to date it is better than
budget by$282.00. The year to date Total Operating Revenues are better than budget by
$387. Under Operating Expenses - Salaries and Wages for year to date are better than
budget by$1,821; Utilities are better than budget b$31.53 and Total Operating Expenses
are better than budget by$4,271. After netting Expenses against Revenues and adding in
the City Contribution and Interest adjustment we are better than budget by $3,998.
b. Oldsmobile Park: Event Revenues are ($970.78) for the current period due to an
adjustment on Holywahooza for an event loss of($6,323) which was applied to the Event
Development Fund. Under Operating Expenses - Utilities for the current period are
$3,834 which is less than the prior year's current period of$4,396. Year to date Utilities
are $13,253 compared to the prior year's amount of$13,605. Maintenance of Facilities
for the current period is $2,248 and was attributed to the sprinkler system. Total
Operating Expenses for the current period are $28,247 compared to$19,917 for last year
and for year to date the figure is $65,560 compared to$64,273 in 2002. We have a year
to date loss of($5,293)compared to the prior year's loss of($4,297). Under the Balance
Sheet, our Total Cash position for the current year is$315,430 compared to$415,041 for
the prior year. The Net Event Development Fund is up at$59,931 compared to the prior
year's $46,755. Unreserved Equity is $100,706 compared to $90,553 for the prior year.
Under Budget versus Actual - Utilities for year to date were better than budget by
$491.48.Insurance and Bonding is higher than budget by ($2,982). Total Operating
Expenses are better than budget for year to date by $7,260 and after taking into account
the City Contribution and Interest, we are better than budget for September by $6,753.
c. Lansing Center: Building Rental for the current period is $70,712 and for the prior
year the amount was$63,237 and the year to date figure is$123,957 which is less than the
prior year's amount of$153,506. Food and Beverage for the current period is $198,736
which is close to the prior year's amount of $201,564 and year to date the figure is
$360,361 compared to $533,319 for last year. Total Operating Revenues for the current
period are $631,431 compared to $852,785. It was noted under Operating Expenses that
we had three pay periods in September as such, Salaries/Wages for year to date were
$397,065 and last year they were $339,499. Utilities for year to date are $137,756
compared to $161,638. Insurance/Bonding for year to date is $35,858 compared to
$35,585 for last year. Food and Beverage expense for year to date is$309,224 compared
to$353,273 for the prior year. We have a loss year to date of($408,475)compared to the
prior year's loss of($148,119). Totaling together cash and cash equivalents, our total for
the current year is$159,790 compared to the prior year's amount of$309,108. Unearned
Revenue- Advanced Rent for the current year is$353,939 which up over the prior year's
amount of$297,676. Unreserved Equity is $18,037 compared to $302,938.
LEPFA Board of Commissioners Meeting
Page 5
October 28, 2003
Under Budget versus Actual, Building Rental for year to date actual is $123,957 and the
budgeted amount is $128,645. Food and Beverage is less than budget by ($38,641) for
year to date. Total Operating Revenues for year to date are $631,431 compared to the
budgeted amount of $655,973 for an amount of ($24,541) less than budget. Under
Operating Expenses- Salaries/Wages are better than budget for year to date by$19,253.
Utilities are better than budget by $7,500 for year to date. Insurance/Bonding is higher
than the amount budgeted ($2,711) for year to date. After netting Revenues against
Expenses we are better than budget for year to date by $4,141 and after taking into
account the City Contribution and Interest we are better than budget by$555.66 for year to
date.
Commissioner Sharon Peters asked what the line item "Professional Services" was
comprised of and Committee Chairman Sinadinos explained that the item consisted of
computer upgrades, temporary help in Finance and attorney fees.
Committee Chairman Sinadinos moved that the monthly financial statements for
Oldsmobile Park, Lansing City Market and the Lansing Center for the periods ending
August 31, 2003 and September 20, 2003 be received as published and further that the
monthly expenses for each entity be approved. Support: Commissioner Sharon Peters.
Motion carried.
3. Annual Audit for FY 2002-3: Finance Committee Chairman Sinadinos noted that Mark
Kettner was very complimentary of Marian, Peter and staff, and he noted that the audit was
very routine, which was a positive in light of the economy, and he noted that it was a very well
run operation. Marian Bryant reviewed the audit as follows.
• Auditor's Opinion: She noted pages one and two are the auditors independent opinion
and indicated that it was a clean audit and that the financial statements fairly reflect in
all material the respective financial positions of the entities managed by LEPFA as of
June 30, 2003. Marian clarified that when nothing is pointed out or highlighted, it is
an indication that we had a clean audit. It was determined that the "Management
Discussion/Analysis," while required, was not necessary. This decision was made in
consultation with the auditors. Ultimately, it was determined that this information
would have been redundant.
• Financial Statements: Marian noted the statements have already been reviewed by the
Board.
• Pension Funds: The analysis on pages six and seven indicates that we achieved a gain
of 7-10% on the pension funds as of June 30, 2003, which we feel is a fairly good
return in light of the market.
Chairman Butler indicated that he asked the auditor why they do not put their comments
regarding the staff and the organization in their report, and it was noted that it is not a
standard procedure.
Commissioner Peters indicated to Marian and Peter that they did a super job.
LEPFA Board of Commissioners Meeting
Page 6
October 28, 2003
Finance Committee Chairman Charlotte Sinadinos moved that the audit be accepted. Second:
Commissioner McGuire; the motion was unanimously approved.
C. PRESIDENT AND CEO'S REPORT:
1. Jim Ruff Report: Chairman Butler asked Mr. Ruff for an update in terms of downtown
economic development. Mr. Ruff noted there are a number of activities, and there may be
an upcoming press release on a new downtown development soon. He noted that the
success of the Brownfield Redevelopment Authority has been good for the re-development
of the City and continues to move forward. He noted that Council established hearings for
three additional Brownfield Plans as was approved by the Authority, and as such anticipate
a favorable response. The most significant plan is for a Builders Plumbing expansion on
Hosmer Street, they decided to remain within the City and expand.
Mr. Ruff also commented that at his last regular meeting with Peter they discussed the
workings of the Lansing Center and Oldsmobile Park during the power outage, and how
well the staff worked, which is a positive influence for the City and he extended his kudos
to the staff for pulling off an event and he commended staff.
Chairman Butler commended Mr. Ruff, the Chief of Police and the Fire Captain on their
responsiveness and for stepping up to the plate as well.
2. Union Report: Patrick Talty noted we have filed our post hearing briefs with the judge and
are awaiting her response. We have received notice from MERC that there are two new
unions vying for representation of our Food and Beverage workers and they are IUOE
Local 547 and the UAW. There will be an election on November 14 with ballots read on
December 5. The employees will have four choices, IUOE, UAW, IATSE or no union.
The highest vote getter will be the representation group and negotiations will begin(their
contract expired as of June, 2003). Peter noted they will keep the Board abreast of any
developments.
At 8:38 a.m. Commissioner Sharon Peters exited the meeting.
3. Lansing City Market: Linda Frederickson reported that September rent revenue is down
compared to last year but is better than budget by $300; occupancy was at 73%. Linda
reported that the Market participated in the first annual "Harvesting Hope Fall Festival" on
October 18, with four organizations working on the event(Old Town, First Presbyterian
Church, the City Market and the Ronald McDonald House). While attendance was not as
great as expected, it was the first annual event. In November the City Market will
participate in Silver Bells and the weekend entertainment continues through November 15
on Saturdays. Peter noted that this year Krispy Kreme will provide doughnuts for Silver
Bells.
4. Oldsmobile Park: Peter reported that October 17 Fright Night began, and we have hosted
six nights thus far, attracting a little over 4,000 people. He noted this year we partnered
with the Carpenters Union, which has increased our production value and he also
encouraged those present to see Fright Night. Fright Night will open this Wednesday
through Friday and we hope to attract 9,000 - 10,000 attendees. Work continues on
winterizing the stadium and the audit process will begin soon with our auditor and the
Lugnuts.
LEPFA Board of Commissioners Meeting
Page 7
October 28, 2003
5. Lansing Center: Peter reported for the month of September we had 47 events equating to
15 event days attracting over 14,000 patrons through our doors, with 453 room nights, and
in excess of$400,000 in economic impact. Compared to last September we are down 20
event days, and are down in room nights and attendance, but are ahead in economic
impact, which illustrates the impact of the mix of events.
In August we hosted 33 events for 51 event days attracting 12,000 in attendance, with
2,000 room nights and$500,000 in economic impact. In comparison to August, 2002 we
were down in event days, down slightly in attendance, and down in economic impact.
At 8:50 a.m. Jim Ruff exited the meeting.
• New/Confirmed/Repeat Business: We have received a contract from the Michigan
Department of Transportation for their annual conference; this is their first annual
conference with us. We recently had a site visit with the Michigan Association of
Realtors and they will be coming to Lansing in September, 2004. We have issued
a contract for the "Kids/Baby Expo" on June 4-5, 2004 and "Big Toys for Big
Boys" is returning over Easter weekend in 2004. Michigan Dental has signed a
contract to return in May, 2006 and they are interested in 2005, 2007, and 2009.
• September Event Highlights: In late September we hosted the Governor's
Educational Summit. In October we hosted the Annual Optometric Association
meeting; the Michigan Council of Teachers; J. Mollema and Son; Interscholastic
Press; North Central Association; Farm Bureau; Michigan Council of Teachers of
Math; and Hearts at Home took place this past weekend which is an event for stay
at home Moms and this is the third year that the event has been here. We also
hosted one wedding and one quinceneara and a number of social events that
included churches and fraternities. Upcoming events include Michigan Library
Association; Michigan Greenhouse Growers; Fake the Funk After Party on
November 8; Spartan Stores; State Employees Credit Union; and Michigan
Pharmacists.
• Capital Requests: Peter noted that we continue to work with the City on capital
needs and received forms from the City's Finance Department to put forth some of
our ideas, thoughts and needs to try to garner funding.
• Commissioner Term Renewal: Peter noted he has discussed the LEFPA Board
reappointments for Charlie Sinadinos, Charley Janssen and Cyril McGuire with
the Mayor and he is in full support of the recommendations. Peter indicated that
he has been notified by Linda Sanchez that the names should be up before Council
by Thursday.
D. PERSONNEL COMMITTEE: Chairman Butler reported that the Committee met on October
22 to discuss incentives, Peter's contract, and general housekeeping issues. Another meeting
has been scheduled for this week to further discuss Personnel topics. There are no personnel
issues in reference to morale and there is no litigation in reference to LEPFA.
LEPFA Board v, Commissioners Meeting
Page 8
October 28, 2003
E. LONG RANGE PLANNING COMMITTEE: Committee Chair Janssen reported that the
Committee met with our partners, the EDC and CVB, on October land looked at a number of
models for possibly financing a Lansing Center expansion. The options included grant money
from the State and/or the City; bonding, which may require voter approval or certain initiatives
or legislative initiatives for taxes on items such as rental cars, food and beverage, etc. The
consultants are working on the final numbers and are looking at other communities our size, as
well as political and financial issues. The committee is waiting until after the city elections to
select a package. Peter noted that once the election is over, the next step is for the consultant
to meet with the Board and the Mayor and City Council.
Jim Smiertka noted there is a three day CUED conference each January that addresses
expansion issues and noted that Peter generally attends and it may be timely and helpful in
addressing funding.
Chairman Janssen noted there is no drop dead time line; however a proposal will have to be
developed before discussions begin with the Mayor and/or City Council. Peter noted the
process is complicated by the Mayoral election and the City Council election. Committee
Chairman Janssen noted another uncertainty is the fact that the CVB has an Interim Director.
Jim Smiertka noted the Radisson/Churchill Investments have taxes issues that will have to be
addressed as well as a part of the whole package.
VII. COMMISSIONER AND STAFF COMMENTS:
1. Commissioner Ellen Jeffries: Commissioner Jeffries noted that she wished to echo what
the auditors said about Peter and Marian because our good financial status is due to their
management. She noted that she also wished to commend Charlie Sinadinos for doing a
good job in absorbing all the financials statements and the audit this month. She also
reminded those presents that the City subsidy was$62,000 less this year, which is why the
budget numbers are negative in comparison to budget and it will remain that way as we
proceed through the budget.
2. Jim Smiertka: Mr. Smiertka noted that there is no litigation to report. He did note that
there is a new ordinance for Drunk Driving as of October 1, the limit has gone down to
.08 and he noted the cases are starting to come through now. Also the Wolverine Pipeline
arguments go before the Michigan Supreme Court on November 12. The Lansing
Chamber of Commerce law suite on the Living Wage will be argued before Judge Collette.
3. Patrick Talty: Chairman Butler noted that Patrick sits on the East Lansing Downtown
Development Authority and is very vocal and is a very strong participant. He commended
Patrick for his participation.
4. James Butler: Chairman Butler thanked Peter and the staff as well as the Board of
Commissioners for their outstanding attendance and commitment.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
LEPFA Board of Commissioners Meeting
Page 9
October 28, 2003
At 9:07 a.m. it was moved that the meeting be adjourned. Motion: Commissioner Butler Second:
Commissioner Janssen
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, NOVEMBER 25, 2003 AT
8:00 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
NOVEMBER 25, 2003
MINUTES
At 8:02 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,Tim Haggart, Charles Janssen, Ellen Jeffries, Cyril
McGuire, Sharon Peters, Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Jim Ruff(Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant,Linda Frederickson,Peter Sullivan, and Patrick Talty
- Lansing Entertainment and Public Facilities Authority.
III. ESTABLISHMENT OF THE AGENDA:
There were no additional agenda items; therefore the agenda was accepted as presented.
IV. PUBLIC COMMENT:
There was no public comment.
V. APPROVAL OF THE MINUTES OF OCTOBER 28, 2003:
The minutes of October 28, 2003 were adopted as presented. MOTION: Commissioner McGuire
SECOND: Commissioner Sinadinos, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman Butler reported the following:
1. Personnel Committee Meeting: Chairman Butler noted the Personnel Committee has been
working extremely hard and has met several times to review incentives and the CEO's
evaluation. Chairman Butler commended them for their hard work.
2. Finance Committee: Chairman Butler also noted that the Finance Committee met yesterday
and as Marian and Charlie reviewed everything/the budget with a fine tooth comb. He
noted they also addressed cash flow issues which have been discussed with the City and we
should be moving forward.
3. Committee Assignments/Commissioner Roster: Chairman Butler thanked Heidi for
sending out the Committee assignments and updating the roster.
4. Budget: Chairman Butler noted that the "Unearned Revenue Advanced Rent" appears to
_ be strong, which he feels should position us for a good quarter, based upon the amount of
advanced rent.
r� B. SECRETARY/TREASURER'S REPORT:
4 1. Monthly Financials - For the Period Ending October 31, 2003: Committee Chairman
J _ Sinadinos reported the following:
t J -_j
LEPFA Board of Commissioners Meeting
Page 2
November 25, 2003
a. Lansing City Market: Building Rental for the current period is $3,989 compared to
$4,670 for the prior year and for year to date the amount is$17,969 compared to$20,211
which is down about $2,200. Parking for the current period is $5,612 (last year the
parking revenue was not received until January). Total Operating Revenues for year to
date are$23,901 compared to$20,568 for the prior year, and the difference is attributed to
the Parking revenue. Under Operating Expenses- Salaries/Wages are similar for year to
date at $15,253 compared to $14,980 for the prior year. Utilities for year to date are
$11,700 compared to $11,562 for the prior year. Insurance/Bonding for year to date is
$1,509 which exceeds the prior year's amount of$1,245. Total Operating Expenses for the
current period are $8,406 which is less than $10,720 for the prior year; and year to date
the figure is $41,699 which is greater than last year's figure of $39,751. Taking into
account the City Contribution and Interest, our year to date excess revenues over expenses
is $16,757 compared to $15,443 for the prior year.
Total Cash is$26,565 which is down from the prior year's figure of$77,534. Unreserved
Equity for the current year is$189,301 compared to the prior year's amount of$173,785.
At 8:10 a.m. Commissioner Sharon Peters entered the meeting.
Under Budget versus Actual, Building Rental for the current period is less than what
was budgeted by ($468) and the year to date Building Rental was less than what was
budgeted by ($185). Total Operating Revenues for year to date are $23,901 compared
to the budgeted amount of$25,478, which is less than budget by ($1,576). Under
Operating Expenses - Salaries/Wages for year to date were better than budget by
$2,701. Utilities are better than budget by $463. Insurance/Bonding was higher than
budget by ($225). Total Operating Income netted against Expenses for the current
period are better than budget by $6,479 and factoring in the City Contribution and
Interest we are better than budget by $5,593.
Chairman Butler asked for an explanation of the City Market checking account.
Committee Chairman Sinadinos explained that this time of year there are cash flow
issues and similar to last year we have proceeded in taking loans from Oldsmobile Park
and the Lansing City Market, which is something we have done to aid with cash flow.
She noted that we did the same thing about two years ago.
b. Oldsmobile Park: The Event Revenues for the current period are $30,634 which is
generated from Fright Night and expenses from Fright Night are $29,112, which
resulted in an income of$1,522 and was applied to the Event Development Fund.
Chairman Sinadinos noted that there will be more Fright Night expenses reflected in
the November financials. Under Operating Expenses, Salaries/Wages for year to date
are $17,305 which is similar to last year's amount of$17,646. Utilities are up slightly
for year to date at$17,761 compared to the prior year's amount of$17,009.
Insurance/Bonding for year to date is $22,976 compared to $21,201 for the prior year.
Excess Revenues over Expenses are at a year to date loss of($5,011) compared to the
prior year's income of$556.
Our Total Cash position for the current year is $182,020, which is down compared to
the prior year's amount of$247,723, which reflects the loan to the Lansing Center.
The Net Event Development Fund is $61,453 compared to $53,211 for last year.
Unreserved Equity is $102,510 compared to the prior year's amount of$101,863.
LEPFA Board of Commissioners Meeting
Page 3
November 25, 2003
Under Budget versus Actual - under Operating Expenses - Salaries/Wages for year
to date are better than budget by $1,518. Utilities are better than budget by $970.68.
Insurance/Bonding was higher than what was budgeted by $3,976. Total Operating
Expenses are ($85,391) compared to the budget of($93,342) which is better than
budget by $7,950. After taking into account the City Contribution and Interest, we are
better than budget for year to date by $7,298.
c. Lansing Center: Building Rental for the current period is $110,512 which is similar to
the prior year's current period at$111,285 and the figures for year to date are $234,470
compared to $264,791 for the prior year. Food and Beverage is down for the month at
$312,515 compared to $402,848 for last year and year to date the figure is $672,877
compared to $936,167. Total Operating Revenues for the current period are $521,589,
which using the benchmark of$500,000 equates to a very decent month, and we had an
excellent month last year with a figure of $651,514. Chair Sinadinos noted two events
moved to November this year and they are MEA and Hospital Purchasing, which is
reflected in the figures; there were also less meetings and banquets, which impacts food
and beverage as well. She also noted we won't reflect Festival of Trees in November of
this year and it will impact the November statements accordingly. Under Operating
Expenses - Salaries/Wages for the current period are down at $138,752 compared to
$173,124 for last year and this is evidence that Management is keeping expenses down for
part time labor and are not filling positions. She also commended their diligent efforts
regarding insurance rates. Insurance/Bonding for year to date is$47,811 compared to the
prior year's amount of $47,395. Food and Beverage Expense is down in relation to
revenues at $157,330 compared to $200,356 for the prior year and for year to date the
figure is $466,554 compared to $553,629. We have a year to date Operating Loss of
($530,657)compared to last year's loss of($236,250). After taking into account the City
Contribution and Interest, we have a loss of ($313,340) compared to the prior year's
income of$26,926.
The Cash and the Cash Equivalents total $82,786 compared to the prior year's amount of
$166,708. Under Liabilities - Unearned Advanced Rent, which is an indicator of future
business, is at $355,704 compared to $292,862 for last year. Unreserved Equity for the
current year is $113,172 compared to $477,984.
Under Budget versus Actual - our Building Rental for the current period is less than what
was budgeted by ($14,890) and for year to date the amount is ($19,577). Food and
Beverage income is less than what was budgeted at ($62,486) for the current period and
for year to date the figure is($101,127) less than budget. Equipment Rental is better than
budget by$9,862 for the current period and is$31,155 better than budget for year to date.
Total Operating Revenues are less than what was budgeted by ($74,427) and the year to
date figure is less than what was budgeted by ($98,969).
Under Operating Expenses - Salaries/Wages are better than what was budgeted by
$20,853. Utilities are better than budget for year to date by $6,056. Insurance/Bonding
exceeds budget by($3,615); Supplies/Materials are higher than budget by($7,409), Food
and Beverage Expense is better than budget by$44,877. Total Operating Expenses for the
current period are better than what was budgeted by $8,226 and for year to date the
amount is $36,909. Netting Expenses against Revenues, we have a net loss compared to
budget of($62,059).
LEPFA Board of Commissioners Meeting
Page 4
November 25, 2003
After taking into account the City Contribution and Interest, we are ($66,884) less than
budget.
Finance Committee Chairman Sinadinos moved that the monthly financials for Oldsmobile
Park, the Lansing City Market, and the Lansing Center for the period ending October 31,
2003 be received as published, and further that the monthly expenses for each entity be
approved. SUPPORT: Commissioner Haggart, motion carried.
Chairman Sinadinos noted that the November financials will be handed out at the meeting
rather than prior to the meeting due to the early meeting date in December, which is the
norm for December due to the holidays.
C. PRESIDENT AND CEO'S REPORT:
1. Insurance Update: Peter reminded everyone that over the past two years our property
insurance has skyrocketed and it is one item that we have not been able to control. He
noted that this past year we worked with the City's carrier in an effort to control our
soaring insurance costs and our coverage with the City's carrier increased to$279,000 this
year compared to$232,000 last year; we have changed our coverage to a local carrier, the
Federau Companies and our coverage will cost us approximately$224,000, which is less
than last year. However the cost of property insurance continues to be a sensitive issue for
LEPFA and Peter noted that he and Marian will continue to look at ways to reduce the
cost. Chairman Butler asked if there is any reason why the City is not contracting with
this group. Peter noted he has shared the information with Doug Rubley.
2. Union Report: Patrick Talty reminded those present that the four choices for union
representation for the Food and Beverage employees are IUOE, UAW, IATSE or no union
and since the last meeting the IUOE has decided to withdraw their petition and will no
longer be a part of the election and now the choices are UAW, IATSE or no union. The
ballots are due on Thursday and will be read on Friday, at which time we will know the
representing agent.
Patrick referenced the Capital Improvement Plan binders, noting that we are submitting ten
items that need to be worked on, and we have submitted the requests to the City for capital
funding. The number one priority is carpet, and then compressors and the third request is
to have the water loop redesigned, which would greatly help in maintain the building.
Peter noted this is born out of capital dialog that we have had with the City, which
previously we were not able to take advantage of and he elaborated further on the items
needed such as a dish washer, fagade repairs, etc. He noted the purpose is to get the items
in the City pipeline. He also noted that John McComb has officially been named the
Budget Manager by the Mayor and Jill Rhode is the Treasurer and Interim Director of
Finance. He noted he is making the Board and City aware of the items needed in
preparation for budget and the items are listed in priority order. Chairman Butler asked
Peter if there is any action he would like the Board to take at this time. Peter noted at this
time no, however when we delve into the budget process with the City, assistance from the
LEPFA Board and Finance Committee will be needed then.
LEPFA Board of Commissioners Meeting
Page 5
November 25, 2003
Peter also noted that at this point we are at approximately 90% depreciation on most
equipment and the City needs to provide funding.
Commissioner Sharon Peters noted that the most common feedback that she has received
while attending events in the Lansing Center is that it is too cold, and it was a big
discussion at the Governor's Educational Summit. She noted she has heard the comment
and experienced it herself(noting it is chilly right now). She noted she was asked to pass
the information along and asked if there is something that we can do. Peter explained that
due to the facility design/zoning of the HVAC, when you adjust one area, it adversely
affects another area and there are two different systems as well. Patrick explained that in
the exhibit halls it takes time to adjust the temperature. Commissioner Peters clarified that
it would take massive rezoning to correct the temperature control and Peter indicated that
is the case. Patrick noted the loss of compressors also impacts the ability to cool and you
can't run the compressors at night because they won't run when it's too cool and last year
we had to continuously run the air conditioners, which increased the Utility Expense.
3. Lansing City Market: Linda Frederickson reported that October Rent Revenue is down by
about$400 compared to last year but it is on target compared to budget; occupancy was at
70%. Regarding special events, she noted the Market is involved with Silver Bells, they
passed out Krispy Kreme Doughnuts and cider, and they had musical entertainment and the
Market was decorated to kick off the holiday season. A holiday multi-media advertising
campaign is underway which includes billboards, television ads, and a radio campaign.
The Vendors Association met and approved winter hours for January through March and
they have been posted on the doors of the Market and will be 10:00 a.m. to 4:00 p.m.
Chairman Butler asked how the Mayor feels about the Market since it was one of his major
items, and he asked if the Mayor has visited. Mark, the Market Manager,has indicated to
Linda that if the Mayor has been there, he has not made his presence known. Linda noted
that the Market continues with its entertainment scheduled and asked Commissioner
Wootton if she has seen the Mayor, and she noted that she has not seen him there recently.
Linda noted that food leasing has been a priority for the Market and that she and Peter
have met with Pat Cook from EDC/TIFA and Dave Wiener to discuss a new initiative for
a loan proposal through the EDC to provide dollars to help with the economic development
of the Market. Linda noted a memo was sent to the LEPFA Long Range Planning
Committee last week regarding this partnership with EDC, where in essence LEPFA
would loan monies for development at the Market through EDC and we in turn would loan
the funds to prospective tenants at the Market. We have a tenant who is interested, who
has been a Common Ground partner and owns three franchises locally. Linda noted he is
interested in opening a Schitz Deli in the Market which will consume 750 square feet in
space (equivalent of fourteen spaces) and he is interested in working with us through the
EDC's "Business Financing Assistance Program" which is a program through the Mayor's
initiative, and now includes the Market. Linda noted that we would like to set up the
program so that LEPFA can access the dollars and loan the funds.
LEPFA Board of Commissioners Meeting
Page 6
November 25, 2003
Chairman Butler noted that he feels the concept is good and he likes the idea, but his
concern is why doesn't Dominic go before the EDC to secure his own loan, rather than
getting the loan through LEPFA? Linda noted there is more money available, but we want
to begin with the$50,000 and we did speak to him about going directly to EDC and it was
EDC's recommendation that it would be a much simpler process and would "cut
bureaucratic tape." It was noted that any tenant would have to provide the necessary
collateral and sign loan agreement forms which would go through the proper legal
channels to make certain everything was correct and the Board would be involved in the
process. The additional initiatives include adding a grille operation and one or two new
tenants.
Commissioner McGuire noted that he is not comfortable with the business of us financing
that amount of money. He noted the company ought to be using their own capital and he
asked how does someone else go about getting the same funding, and who gets the
preference. He indicated that others may not indicate an interest because they do not feel
that they have a chance.
Peter noted the program doesn't start and end with the City Market and that when the
Mayor started this initiative last January, to-date the money is still sitting there and no one
has applied for the money. Chairman McGuire asked who knows about the funding. Peter
noted that vendor's costs would be$125,000 to$150,000 which he will fund. Peter noted
that we will not loan him one penny unless we are comfortable with the collateral he will
put up to back the loan. We want to get the program in place with the EDC at their next
Board meeting, and that doesn't mean we will be borrowing the money, we are setting it
up so that when we have a vendor we are able to proceed, and that the vendor in question
is the only one who has expressed interest to-date. Peter noted that if the Board is aware
of someone else, we would be more than happy to talk to them.
Chairman Butler noted he liked the concept, but was not comfortable in investing the entire
$50,000 in one person, and although the vendor has stepped forward, the question will be
has the City Market advertised the possibility of the funding, and he also feels that the
vendor is capable of going before the EDC to get his money, so it won't be on our books.
Chairman Butler noted he is on the EDC Board and is aware that the program has been
expanded; however, ultimately the EDC Board also makes the final decision.
Commissioner Jeffries asked why it would be any less bureaucratic for him to go to the
EDC directly and she also expressed concern about the liability for LEPFA in loaning out
the money. She asked why we are not using the tool(EDC) and referring vendors directly.
Peter explained that the thought was, as we understood it, that if folks go through the EDC
that the process would be lengthier and timelier as opposed to if they came through us.
They still have the EDC as an option; however, it has been suggested that the paper work
would be significantly more. We have a document that has been drafted by the EDC and
nothing has been officially discussed because we wanted to bring it before our Board.
Commissioner Peters indicated that in the matter of public scrutiny, this Board has the
responsibility to act on the behalf of the public and it sounds as if there is a question as to
whether we are opening up to the competition, and whether it is seen as circumventing a
process, rather than streamlining, by the public.
LEPFA Board of Commissioners Meeting
Page 7
November 25, 2003
Commissioner McGuire commented that he wants to see the Market be successful;
however, his concern is when he sees a new business open, who knew about it. He also
noted that he is not against the program, but wants to be certain that there isn't an
organization out there that would have been interested had they known, and advertising
doesn't get it. He noted people have to be comfortable with the process and need to be
encouraged and he indicated further that he is not certain that the ability to finance it is not
equal either because they can't get the financing. Commissioner McGuire noted that he
hopes the operation is successful, but he wants to feel good about it.
Chairman Butler suggested that this topic be discussed further by the Finance Committee
and that he feels this type of item can not come to a solution at this time based on the
concerns/comments levied today.
Commissioner Janssen indicated that while the memo was sent to the Long Range Planning
Committee, he feels it really falls under the Finance Committee; however the Long Range
Committee has been involved in discussions regarding City Market development.
Commissioner Janssen noted one of his questions is if the EDC has these funds available
and when they go through the process do they go through any notice or posting provisions.
He noted the Long Range Planning Committee would be happy to address the concerns.
Chairman Butler suggested that a combination of the Long Range and Finance Committee
members and anyone else interested meet and discuss the matter. He noted he will give it
to the Long Range Committee to facilitate the discussion.
Commissioner Janssen noted that in his discussions with Linda and Peter that the
opportunity/window for going into the City Market is limited and he questioned the
proposed time frame, and how quickly this was to have occurred so that we can address
the issues and not lose perspective. Linda noted the vendor would like to ideally be open
by the spring and he was looking at 60-90 days of construction and wanted to begin in the
"off' season so that he could be operating by April 1. Peter commented that he couldn't
agree with Cyril's comments more, and similar to what Commissioner Janssen said, his
understanding regarding the advertising of the program, is that there is not a significant
effort to advertise the program; however, these types of initiatives should be as broad and
far reaching as possible. Peter noted the reason for referencing the vendor in question is
that we have done business with him for three years and believe he is capable, and that the
chance of his success seemed greater than other potential vendors who have not stepped
forward.
Peter commented further that while his means are substantially better than others,he is the
only one that has moved forward, much more so than others who have done nothing.
Chairman Butler asked that this topic be taken to the committees and discussed. He
commented further that he does not want to rush to judgment because it is the first time we
have done anything on our books as far as a liability and it is the first loan we would have
given to a vendor, and the EDC is not the City Market in terms of bringing in vendors and
economic growth and as such there are many things to discuss to make sure we are on the
same page.
LEPFA Board of Commissioners Meeting
Page 8
November 25, 2003
4. Oldsmobile Park: Peter reported that Fright Night was successful in attracting in excess of
6,300 people over nine days, which equates to a daily average of 700 plus per night and
we were quite happy with the attendance and we have received many positive comments
on production value which is attributed to the hard work of the staff and our marriage with
the carpenters who have expressed an interest in being involved again next year. The
annual audit is underway at the stadium for last season.
5. Lansing Center: Peter reported for the month of October we had 47 events equating to 68
event days attracting over 18,000 attendees, with 6,200 room nights, and for an estimated
$1,400,000 in economic impact.
• October Event Highlights: Highlights for the month include the Michigan Library
Association, which attracted close to 1,100 patrons; the Diocese of Lansing Youth
Jamboree attracted over 1,000 youth; Michigan Greenhouse Growers; MEA
attracted close to 1,000; on November 8 we hosted the Fake the Funk Afterparty
which attracted close to 5,000 students; Spartan Stores returned as well; on
November 11 we hosted State Employees Credit Union(and they have rebooked);
on November 12 we hosted the YMCA; November 13 we hosted the Greek
Excellence Awards dinner; November 15 we hosted 1,300 people for Diamond
Quest; November 19 Hospital Purchasing was in house; and November 21
Silver Bells was in house. We hosted one wedding during the month as well as a
number of receptions and parties. Patrick noted on December 3-4 we will be
hosting MDOT's — Visions and Values Conference which will be broadcasted
over the web and will be our first web cast with three simultaneous sessions which
may be watched over the internet. The Governor is expected to attend as well as
Gloria Jeffs, and several federal officials. The event has ballooned into a big
event for MDOT and for LEPFA and is cutting edge technically. Patrick noted
the event has grown due in part to the success of the inauguration speech we
hosted for the Governor and it was the production manager of that event that
helped develop this event.
Peter noted that he, Linda and Patrick have made two power point presentations;
one to a group of Koreans through MSU who were interested in our industry; and
last week the same presentation was made to a group of Russians through the
Center for Citizens' Initiative, through a group called the Productivity
Enhancement Program.
The presentation was made to a group of about ten Russians who are involved in
the hotel/hospitality industry in Russia. The presentation was translated as
presented and he noted the program was extremely rewarding. Peter noted he was
approached by Joan Bauer's husband following the presentation who asked if the
presentation was ever given to City Council. Overall Peter noted we put our best
foot forward.
Chairman Butler indicated that the comment made by Joan Bauer's husband was
interesting to him in that the presentation may be something that the Board would
like to see and that it may be educational for our Board as well.
LEPFA Board of Commissioners Meeting
Page 9
November 25, 2003
Peter noted on December 17 the Mayor is hosting a retreat for City Department
Heads and he has been invited and the facilitator is Colleen Cooper.
D. PERSONNEL COMMITTEE: Committee Chairman Cyril McGuire thanked all of the
Commissioners for returning the evaluations by the deadline and he noted the committee has
been meeting diligently on the evaluations. Commissioner Haggart moved that the Board move
into closed session to evaluate the President and CEO's performance appraisals and his salary
administration. Yes: Commissioner James Butler, Commissioner Tim Haggart, Commissioner
Charles Janssen, Commissioner Ellen Jeffries, Commissioner Cyril McGuire, Commissioner
Sharon Peters, Commissioner Charlotte Sinadinos, Commissioner Denise Wootton. No:
At 9:20 a.m. the Board of Commissioners moved into closed session and Heidi Brown, Marian
Bryant, Linda Frederickson, Peter Sullivan and Patrick Talty were excused from the meeting.
At 9:46 a.m. the regular monthly meeting was called to order. Yes: Commissioner James
Butler, Commissioner Tim Haggart, Commissioner Charles Janssen, Commissioner Ellen
Jeffries, Commissioner Cyril McGuire, Commissioner Sharon Peters, Commissioner Charlotte
Sinadinos, Commissioner Denise Wootton. No:
Commissioner Peters moved that the Personnel Committee report be accepted as presented.
Second: Commissioner Janssen carried.
Chairman Butler thanked the Personnel Committee for an excellent job and commended all the
Board members for their provocative discussion.
E. LONG RANGE PLANNING COMMITTEE: Chairman Janssen noted that there is no further
report.
VII. COMMISSIONER AND STAFF COMMENTS:
1. Commissioner Sinadinos: Commissioner Sinadinos noted that she attended Fright Night
with her daughter and commented on a job well done. She also questioned when the
Board Holiday Party will take place, and it was noted that it is currently scheduled for
December 16 and invitations will be forthcoming.
2. Commissioner Janssen: Commissioner Janssen commented that the discussion our Board
had regarding the City Market loan reflects what a great Board we have and he suggested
that the Authority has a Board member that may be able to assist with the broadband
aspects of the Governor's Visions and Values Conference. Commissioner Janssen noted
he was intrigued in regard to the presentations made to the Koreans and Russians and
thought that it might be helpful to give the presentation to the City Council in conjunction
with a walking tour.
3. Commissioner Cyril McGuire: Commissioner McGuire extended a Happy Thanksgiving
to everyone present.
4. Commissioner Denise Wootton: Commissioner Wootton announced that the Market will
host a Holiday Open House on Saturday, December 6 from 8:00 a.m. to 6:00 p.m. and she
invited all present to attend.
LEPFA Board of Commissioners Meeting
Page 10
November 25, 2003
5. Commissioner Sharon Peters: Commissioner Peters noted she had recommendations for
performers to pursue in regard to Common Ground and they are Al Green and George
Clinton. And she also commented on the lack of open cafeareas in downtown Lansing and
noticed there was an article that suggested our riverfront area be considered.
Commissioner Peters suggested this topic for further discussion to be included on ways to
make Lansing a "cool city." Commissioner Peters also extended "Happy Thanksgiving"
wishes.
6. Peter Sullivan: Peter wished everyone a "Happy Thanksgiving."
7. James Butler: Chairman Butler extended his thanks for the outstanding participation, noting
that we had some very good and candid discussions and he commented further that he
appreciates the energy and passion that the Board brings to the table. Chairman Butler
extended his wishes for a Happy Thanksgiving.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:55 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY,DECEMBER 16,2003 AT 8:00
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
- BOARD OF COMMISSIONERS MEETING
DECEMBER 16, 2003
MINUTES
At 8:02 a.m. Vice Chairman Tim Haggart called the meeting to order in the Governor's Room of the
Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: Tim Haggart, Ellen Jeffries, Cyril McGuire, Sharon Peters, Jim Ruff
(Ex-Officio), and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: James W. Butler III, Charles Janssen, and Denise Wootton.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, William Grove, Peter Sullivan,
and Patrick Talty - Lansing Entertainment and Public Facilities Authority; and James Smiertka, City of
Lansing.
III. ESTABLISHMENT OF THE AGENDA:
There were no additional agenda items; therefore the agenda was accepted as presented.
IV. PUBLIC COMMENT:
There was no public comment.
V. APPROVAL OF THE MINUTES OF NOVEMBER 25, 2003:
The minutes of November 25, 2003 were adopted as presented. MOTION: Commissioner Haggart
SECOND: Commissioner Jeffries, motion carried.
VI. REPORTS:
1. CHAIRMAN'S REPORT: No report.
A. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials - For the Period Ending November 30, 2003: Committee Chairman
Sinadinos reported the following:
a. Lansing City Market: Building Rental for the current period is $3,659 compared to
$3,548 for the prior year and for year to date the amount is$21,628 compared to$23,759
for the prior year. Total Operating Revenues for year to date are $27,595 compared to
$24,151 for the prior year, and the difference is attributed to receiving the Parking
revenue in October as opposed to January for last year. Under Operating Expenses:-
Salaries/Wages are similar for year to date at$18,853 compared to $18,637 for the prior
year. Utilities for the current period are$3,780 compared to$3,594 for the prior year; for
the year to date the utilities are $15,481 compared to $15,156. Insurance/Bonding for
year to date is $1,836 compared to the prior year's $1,556.
Total Cash is$13,169 which is down from the prior year's figure of$73,741 which is due
to the loan to the Lansing Center. Unreserved Equity for the current year is $187,130
compared to the prior year's amount of$171,061.
LEPFA Board of Commissioners Meeting
Page 2
December 16, 2003
Under Budget versus Actual, Building Rental for the current period is better than
budget by $20 and the year to date Building Rental was $21,628 compared to the
budgeted amount of$21,794 which is slightly less than what was budgeted by
($165.34). Total Operating Revenues for year to date are $27,595 and the budgeted
amount is $29,177, which is less than budget by ($1,581). Under Operating Expenses
- Utilities for the Current Period are $739.42 higher than budget and for year to date
utilities were ($276) higher than budget. Insurance/Bonding was higher than budget by
($5.63) and for year to date they are higher by ($231.27). Total Operating Expenses
are better than budget by $10,088. After netting expenses against revenues, we are
better than budget by $8,507 and factoring in the City Contribution and Interest we are
better than budget by $7,388.
b. Oldsmobile Park: The Event Revenues for the current period are $5.89 which is
interest. Expenses are $6,092 and we anticipate about $600 more in expenses in
December. Currently we have an Event Loss of($6,086) which was applied to the
Event Development Fund. Under Operating Expenses, Utilities were down for the
current period at$4,915 compared to $5,624 and for year to date Utilities were
$22,676 compared to $22,633 for the prior year. Insurance/Bonding for year to date is
$27,937 compared to $25,962 for the prior year.
Our Total Cash position for the current year is $137,508, which is down compared to
the prior year's amount of$227,514, which reflects the loan to the Lansing Center.
Accounts Receivable reflects the loan, and for the current year it is $77,256 compared
to $14,867 for the prior year. Unreserved Equity is $100,274 compared to the prior
year's $101,546.
At 8:10 a.m. Jim Smiertka entered the meeting.
Under Budget versus Actual - under Operating Expenses, Utilities are better than
budget for year to date by $1,042. Insurance/Bonding was higher than what was
budgeted by $4,187. Total Operating Expenses are better than budget by $12,572.
After taking into account the City Contribution and Interest, we are better than budget
for year to date by $11,758.
c. Lansing Center: Committee Chairman Sinadinos commented that the loss of the Festival
of Trees impacted the month's revenue by$100,000 and otherwise it was not a bad month.
Building Rental for the current period was down at$81,113 compared to$104,457 for the
prior year, and the difference is attributed to the loss of the Festival of Trees rent. Under
Food and Beverage we had revenue of $189,067 compared to last year's amount of
$242,548 for the current period which is again due to the loss of the Festival of Trees.
Equipment Rental is better than last year at$66,113 compared to$56,742. Labor Service
is $40,220 for the current period compared to the prior year's amount of$35,108. Total
Operating Revenues for the current period are $401,584 and the prior year's current
period amount is $467,605; and the figures for year to date are $1,554,605 compared to
$1,971,905 for the prior year for a difference of$417,000 less than last year.
Under Operating Expenses- Salaries/Wages for the current period are down at$138,281
compared to$126,295 for last year; and for year to date the figure is$674,099 compared
to $638,919 for last year.
LEPFA Board of Commissioners Meeting
Page 3
December 16, 2003
Chair Sinadinos noted that fringes and related costs for the year to date are $220,036
compared to $203,486, which is attributed to vacancies in the prior year. Utilities for the
current period are $41,397 which is less than the prior year's current period amount of
$46,708 and the year to date utilities are $229,016 which is down compared to$244,368
for last year. Insurance/Bonding is down for the current period at$10,438 compared to
$11,823 and for year to date the figure is $58,249 compared to $59,218 for last year.
Food and Beverage Expense is$122,618 for the current period and was$122,112 for the
prior year, and year to date expenses are $589,173 for the current period compared to
$675,741 for the prior year. Total Operating Expenses for the current period are
$437,302 compared to $426,817 for the prior year and year to date the figure is
$2,120,981 compared to $2,167,367. After adding in the City Contribution and Interest,
we have a net loss year to date of $299,615 compared to the prior year's income of
$135,030.
At 8:16 a.m. Sharon Peters entered the meeting.
The Cash and the Cash Equivalents total$151,384 compared to the prior year's amount of
$249,564. Accounts Receivable for the current year are $603,902 which is down
compared to $814,560 for the prior year and reflects a slower first quarter for this year.
Under Liabilities - Unearned Advanced Rent, which is an indicator of future business, is
up at $335,865 compared to $296,756 for last year. Unreserved Equity for the current
year is $126,897 compared to $586,088.
Under Budget versus Actual - our Building Rental for the current period is less than what
was budgeted by($14,161) and for year to date the amount is less than what was budgeted
by ($33,739). Food and Beverage for the current period is less than what was budgeted by
($53,933) for the current period and for year to date the figure is ($155,061). Total
Operating Revenues were less than what was budgeted by ($31,903) for the current period
and for year to date the figure is less than what was budgeted by ($130,872).
Under Operating Expenses— Salaries/Wages are better than what was budgeted by$25.27
and for year to date the amount was better than what was budgeted by $20,879. Fringes
and Related costs were better than what was budgeted for year to date by $902.58.
Utilities are less than what was budgeted for year to date by $13,078. Insurance/Bonding
exceeds budget by ($3,004) and that number will diminish due to the new insurance
numbers. Food and Beverage costs are better than what was budget by $72,672. Total
Operating Expenses for the current period are better than budget by$12,838 and for year
to date the amount is $49,747. Netting Expenses against Revenues, we have a net loss
compared to budget of ($81,124). After taking into account the City Contribution and
Interest, we are ($87,177) higher than budget.
Finance Committee Chairman Sinadinos moved that the monthly financials for Oldsmobile
Park, the Lansing City Market, and the Lansing Center for the period ending November
30, 2003 be received as published, and further that the monthly expenses for each entity be
approved. SUPPORT: Commissioner McGuire, motion carried.
LEPFA Board of Commissioners Meeting
Page 4
December 16, 2003
B. PRESIDENT AND CEO'S REPORT:
1. Lansing City Market: Linda reported that for the first time this year the City Market
Rental Revenue was up compared to last November by about 5%. Special Events for the
Market during the month included the Holiday Open House on December 6, and Linda
reported that it was very nicely done by all of the vendors who contributed a big gift
basket for a giveaway. The Market had entertainment, Santa came, they had music on both
sides of the Market and it was the first time the vendors came together and hosted such an
event. She also noted that it was well received by the vendors and the patrons. The
weekend musical entertainment will continue through the holiday season. The winter
hours will be from 10:00 a.m. to 5:00 p.m. beginning January 1.
2. Union Report: Patrick Talty noted that the election did take place for the Food and
Beverage unit, and the ballots were read last Friday and they voted to be represented by
the UAW. They will contact us and we will begin negotiations after the holidays.
3. Oldsmobile Park: Peter reported that meetings have been taking place with the Lansing
Police and Fire Departments, and the Lugnuts staff regarding special events. A meeting is
set with the Lugnuts for the second week in January to discuss operational issues. He also
noted that their VP of Sales and Marketing, was promoted to GM.
4. Lansing Center: Peter reported for the month of November we had 56 events equating to
69 event days attracting over 14,600 attendees, for an estimated economic impact of
$400,000. Compared to November 2002 we are down by about 36 event days, attendance
is down, room nights are up and economic impact is down slightly, due to the mix of
events.
• Sales Report Information: We continue working on Wally Byum with the CVB
and starting in January we will be meeting more frequently to make sure all is
copasetic. This event will take most of the building and will be at the airport as
well. We will host approximately 30 food and beverage functions and Peter noted
we will keep the Board abreast of any developments. In December we will host
approximately 16 holiday parties including the LCC Holiday Luncheon on
December 16 and the City of Lansing Finance Department on December 17.
Peter noted we are awaiting a decision from the Michigan Department of
Transportation regarding their Transit Conference in October and the same for the
Michigan Association of Public School Academies in November, as well as the
Residence Halls Association Conference in May, 2005.
• Repeat/Confirmed Business: We will be hosting the Mayor's Inauguration on
January 1, which we hosted two years ago. A contract has been issued to Sysco
Food Service (our food and beverage provider) and we will host their quarterly
Sales meeting in June. A contract has also been issued for the Michigan CPA's
June event.
LEPFA Board of Commissioners Meeting
Page 5
December 16, 2003
• November Event Highlights: Highlights for November include the CVB's annual
luncheon which was very successful with in excess of 200 people attending, which
was a increase over last year's attendance and they were very pleased with the
event. We also hosted MDOT's first ever transportation summit; Governor
Granholm was the speaker and the event was attended by over 400 people.
Additionally, this week we hosted the Michigan Council for Arts and Cultural
Affairs which was attended by Governor Granholm and Director Hollister and
their attendance increased from 600 to 1,400 and the event sold out and had to be
moved to the exhibit halls from the ballrooms. He noted that Food and Beverage
did a great job feeding (in buffet style) 1,400 people very quickly, logistically it
was a challenge and we received positive feedback. The presenter was Richard
Florida who coined the phrase, "Cool Cities." We are hosting a number of parties
and continue to host the Lion's Den Church and the House of Power and Prayer.
• Upcoming Events: Peter noted we have an extremely busy January beginning
with the Mayor's Inauguration on January 1. Additional events include: Michigan
Nursery and Landscaping, the Boat Show, Michigan Agri-Business, the Martin
Luther King Luncheon, the Michigan Veterinarian Conference, and the Michigan
Townships Association.
5. Common Ground: Peter noted the holiday promotion is underway on television
and radio and began the day after Thanksgiving through December 31. Through
Sunday we have generated about$33,000 in "Common Card" sales, and last year
our total was $25,000, so with two weeks left in the promotion, we have already
exceeded last year's holiday promotion sales. This is in addition to sales for the
"Uncommon Club" which was a new initiative last year, and it has sold out this
year (we raised the capacity from 80 to 120 seats). Similar to the past, we have
formed alliances with radio and television, and are happy and enthusiastic with the
results to-date.
6. Budget Process: Peter noted the budget process is under way and will culminate at
the January Board meeting. We will meet with the Finance Committee,as in past,
prior to the Board meeting in light of the sensitivities with the State and the City.
He also commented on the article that was forwarded to the Board members
regarding the Grand Center and the business. Peter noted one of his goals is to
have members of our Board, Council and the Administration travel to Grand
Rapids. He noted he hoped the trip would give everyone insight as to what we
can aspire to be and hopefully will spur additional expansion talks.
C. PERSONNEL COMMITTEE: Committee Chairman Cyril McGuire noted that everyone
should have received a copy of a memo from our Vice President of Operations regarding
the "Anti Harassment" policy. He asked Patrick to review the memo/policy. Patrick noted
that the memo and the revised policy were enclosed in the Board packets and that the
policy would replace our current policy, which is a "Sexual Harassment" policy, which is
one of the changes under the labor law, and has affected this policy change. The policy is
now entitled "Anti Harassment" and includes such things as race, color, religion, gender,
pregnancy, national origin, disability, height, weight, marital status, (all of the protective
classes) and the revision has been developed with our attorneys.
LEPFA Board of Commissioners Meeting
Page 6
December 16, 2003
There are no changes in how a complaint is reported or how we investigate allegations,
etc., it is basically a change in what is considered harassment and the presentation of the
policy itself. Jim Smiertka suggested that we need to include training too. Patrick noted
after approval by the Board of Commissioners, we have two training sessions scheduled
for all supervisors and managers who will be required to attend. The policy will be
distributed at the training and will be presented by out attorneys. Committee Chairman
McGuire moved that the revised Anti Harassment policy be accepted, and that it become a
part of LEPFA's policies. The motion was supported by Commissioner Sharon Peters,
and the motion carried.
D. LONG RANGE PLANNING COMMITTEE: No report.
VII. COMMISSIONER AND STAFF COMMENTS:
1. Marian Bryant: Marian wished everyone "Happy Holidays."
2. Commissioner Sinadinos: Commissioner Sinadinos wished everyone "Happy Holidays" as
well and noted that her brother hosted a Christmas Party at the Lansing Center as well
(Summit Contractors) and he said that again this year it was wonderful.
3. Linda Frederickson: Linda reminded everyone that the Board party is this evening and she
hoped to see everyone there.
4. Jim Ruff: Jim Ruff noted that his office really appreciates being an active part of our body
and he appreciates being here. He noted that he meets regularly with Peter to discuss
issues, and is looking forward to the challenges that are ahead, as well as the ideas for
Lansing and the great public facilities that we have.
5. Commissioner Ellen Jeffries: Commissioner Jeffries wished everyone "Happy Holidays"
and noted that she hoped to be at the party this evening; however she is not sure due to the
Senate meetings. Commissioner Jeffries also questioned the cost of Common Card? Peter
noted it is currently $65 until January 1.
6. Commissioner Cyril McGuire: Commissioner McGuire noted he hoped to see everyone
tonight that can make it (he noted he talked to our Chairman yesterday while he was in
New York). Commissioner McGuire wished everyone a very Merry Christmas and
healthy holidays.
7. Commissioner Sharon Peters: Commissioner Peters noted she echoed everyone's
comments regarding the holidays, and that she hoped to attend this evening's event for a
short time. She asked if there was any sense as to how the entertainment was lining up for
Common Ground. Peter noted there was nothing yet, but our partner, Kevin Meyer
recently returned from a Las Vegas annual meeting of talent agencies, show promoters,
etc. and he was very encouraged and is working on the avails. Talent will be as diverse as
it has been in the past and there are many people on the table right now. Commissioner
Peters reminded those present in terms of diversity, and as the name Common Ground
suggests, that she hoped we will representing diversity within our population in our
musical offerings. She also noted that she is aware that it hard to get it all lined up and
wished Peter well.
LEPFA Board of Commissioners Meeting
Page 7
December 16, 2003
8. Jim Smiertka: Jim Smiertka noted that there is no litigation. He also commented that in a
conversation with Tom Dickson they noted that we are in year nine of the fifteen year
agreement with the Lugnuts and soon a new lease will have to be negotiated. He also
noted that there was a dinner with the Lansing City Council and the Convention and
Visitor's Bureau and the topic of the expansion of the Lansing Center, hotels, etc. was
discussed. Mr. Smiertka noted that there is no negative impression, and it is more positive
and how do we finance it, rather than whether or not it should be done.
9. Bill Grove: Bill wished everyone "Happy Holidays."
10. Heidi Brown: Heidi wished everyone "Happy Holidays."
11. Patrick Talty: Patrick extended his holiday wishes.
12. Peter Sullivan: Peter commented that he hoped to see everyone this evening, and he
indicated that Food and Beverage typically does an "outstanding"job, and he noted that
the Mayor plans to attend as well. Peter wished everyone "Happy Holidays."
13. Vice Chairman Tim Haggart: Vice Chairman Haggart extended his wishes for a safe and
"Happy Holiday Season." He also questioned Ron Wilson's departure from the LEPFA
roster. It was noted that he no longer attends the meetings, and Councilmembers now
attend (Sandy Allen and Harold Leeman).
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 8:46 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY,JANUARY 27, 2004 AT 8:00
A.M. AT THE LANSING CENTER IN ROOM 205.
Respectfully submitted,
Heidi K. Brown, Recording Secretary