HomeMy WebLinkAbout2004 LEPFA Minutes LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
JANUARY 27, 2004
MINUTES
At 8:00 a.m. Chairman James W. Butler III called the meeting to order in the Room 205 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, Jim Ruff(Ex-Officio), Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Sharon Peters.
OTHERS PRESENT:Heidi Brown, Marian Bryant, Linda Frederickson, William Grove, Peter Sullivan,
and Patrick Talty-Lansing Entertainment and Public Facilities Authority; and Margaret Vroman, City of
Lansing.
III. ESTABLISHMENT OF THE AGENDA:
There were no additional agenda items; therefore the agenda was maintained as established.
IV. PUBLIC COMMENT:
There was no public comment.
V. APPROVAL OF THE
The minutes of December 1�6,2003 w�eadopted pRsented 16, OMOTION: Co
SECOND: Commissioner Jeffries, motion carried. mrnissioner Haggart
VI. REPORTS: -
A. CHAIRMAN'S REPORT: n�
1. Finance Committee: Chairman Butler reported that the Finance Committee and the Board
members and staff have been working extremely hard on the budget and that there are things
that we must focus on and be aware of, and he noted that he has attended many meetings
dealing with the budget and he has heard Peter, Marian and Charlie discuss their feelings in
this regard as well. He indicated that there is no fat, no fluff and there is no foolishness in
reference to the agenda and that the budget is nothing but fact, and the fact is that there are
major factors that need to be considered and he noted further that he would appreciate it if
everyone would appreciate those facts. Chairman Butler noted that he and the Board members
believe that the increases are bare boned; and that the operating expenses look to increase by
only 2.8%. He outlined the major factors of consideration as follows:
• Fringes, Worker's Compensation, and Medical/Expenses: These have increased by
$210,0004250,000, which LEPFA has to deal with and address; where many other
departments don't have to deal with these issues.
• Building Maintenance: He noted the building is in need of maintenance and has many
repairs that need to be done, i.e. the carpet has been an issue, but will cost$100,000
to replace. The folding doors need to be replaced as well at an estimated cost of
$325,000.
• Budget Requests: Chairman Butler noted last year we requested $594,000 and we
actually received $530,000 which was a $64,000 shortfall. He noted it is becoming
increasingly impossible for us to continue to get a shortfall in terms of revenue while
we are constantly asked to do more with less.
LEPFA Board of Commissioners Meeting
Page 2
January 27, 2004
He noted we need more funding and this year we are asking for a modest increase and
we also need creativity and solutions,
be adopted byPheaCity. He noted we
have solutions and hope that one of them wills
Chairman Butler noted that we have the opportunity to meet with the City's Budget Committee
this Thursday, and he asked for all of the Board are
serious
about the budget and r
ion in being a part of the
meeting so that we can let them know that w very
potential solutions.
2. December Activities: Chairman Butler noted that on D s doneer 16 the LEPFA very well again.BChalSrn f n
holiday party took place and that he understood th Tim
Butler extended apologies, noting he was in absence.
New York area on that date. He thanked
Haggart for sitting in for him during h
is B, SECRETARY/TREASURER'S REPORT:
1. Monthly Financials - For the Period Ending December 31 2003: Committee Chairman
Sinadinos reported the following:
a. Lansing City Market: Building Rental for the current period is $3,392 compared to
$3,534 for the prior year and for year to date the total amount is $25,020 compared to
$27,293 for the prior year. Parking for year to date is $5,732 and Parking was not
received at the same time that it was received last year for the quarter and is
the
e difference
in the revenues. Total Operating Revenues for year to date are $31,
ds
$27,745 for the prior year. Under Operating Expenses - Utilities for year to date are
$20,601 which exceeds the prior year's amount of$19,408. Insurance/Bonding for year to
sea for
date is $2,162 compared to $1,868 for the previous year. Total Operating Expenses
for
year to date are $71,814 compared to $69,350 for last year, which is up by about$2, we
00
ion
City
for year to date. After Revenues over Expenses foriyeartto dateein the amount of$2,283 coibution and mpared to
have excess Revenu P
$1,590 for the prior year.
Total Cash for the current year is $6,457 which is down from the prior year's figure of
$69,403 which is due to the loan to the Lansing Center. The loan is also reflected 20
e
Accounts Receivable amount of$184,888 compared to the prior year's amo t of year's amount
Unreserved Equity for the current year is $174,827 compared to the prior
of$159,932.
Under Budget versus Actual, Building Rental for the current period is less than What
was budgeted by ($138.00) and for year to date Building Rental is less than what was
budgeted by ($303.00). Parking was less than what was budgeted for year to-date by
($1,351). Total Operating Revenues for year to date are less than what was bud d eee d
by ($1,744). Under Operating Expenses - Utilities are higher than what was d et
for year to date by $2,355. Insurance/Bonding for year to date was higher than budget
by $236.00. Total Operating Expenses for year to-date are $71,814 compared to the
budgeted amount of$78,201 which
we es usarebetterer than than budget by $4,642et by 86A After
After
netting Expenses against Revenues,factoring in the City Contribution and Interest, we are better than budget by $3,290.
LEPFA Board of Commissioners Meeting
Page 3
January 27, 2004
b. Oldsmobile Park: The Event Revenues for the current period are $12.61 which is
interest, and the final Event Expenses for Fright Night are $1,042 for an event loss of
($1,029) which was applied to the Event Development Fund. Under Operating
Expenses - Professional Services for the current period are $6,920 compared to the
prior year's $30.52. Committee Chair Sinadinos noted that Professional Services
include two audits in this fiscal year, (there were none for the prior year) and the
timing of the billing accounts for the differences. Year to date Professional Services
are $13,248 compared to $175 for the previous year. Utilities for year to date are
$29,669 compared to $28,475 for a $1,200 difference. Insurance/Bonding for year to
date is $32,898 compared to $30,415 for the prior year. Total Operating Expenses for
the current period are $35,255 compared to $27,964 for the prior year. Total
Operating Expenses for year to date are $136,891 which exceeds the prior year's
amount of$128,017. We have a bottom line loss for year to date of($16,338)
compared to last year's loss of($7,496).
Our Total Cash position for the current year is $111,598, which is down compared to
the prior year's amount of$205,145, which reflects the loan to the Lansing Center. We
have Net Event Development Fund of$54,337 compared to the prior year's $52,682.
Accounts Receivable reflects the loan to the Lansing Center and is $77,258 compared
to $6,791 for the prior year. Unreserved Equity for the current year is $84,066
compared to the prior year's $93,281.
Under Budget versus Actual - under Professional Services (due to the audit) we are
($6,837) over budget for the current period and the amount for year to date is ($8,106)
over budget. Total Operating Expenses for the current period were more than what was
budgeted by ($5,207) and for year to date they were better than budget by $7,365,
After taking into account the City Contribution and Interest, we are better than budget
for year to date by $6,370.
c. Lansing Center: Committee Chairman Sinadinos commented that this December was a
good month and last year's current period for December is a better reflection of a typical
December. This December had two large events - the Governor's "Cool Cities"
Conference and the Governor's MDOT event. Building Rentals for the current period are
$36,461 compared to$40,196 for the prior year. Total Building Rental for year to date is
$352,045 compared to $409,444 for the prior year. Food and Beverage for the current
period is $165,677 compared to $119,068 and year to date Food and Beverage is
$1,027,621 compared to $1,297,784. Equipment Rental was excellent for the current
period at $95,753 compared to $4,114 and for year to date the amount is $311,090
compared to$260,472 for the prior year. Labor Service for the current period is$16,001
compared to$2,169 for the current period last year and year to date Labor and Service is
$88,684 compared to $81,459. Total Operating Revenues for the current period are
$330,135 and the prior year's current period amount is$176,846; and the figures for year
to date are $1,884,741 compared to $2,148,752.
Under Operating Expenses- Salaries/Wages for year to date are $804,141 compared to
$765,560 for last year which is up by about $38,000. Utilities for year to date are
$262,423 compared to$284,304 for last year. Insurance/Bonding is$68,688 compared
to $70,001 for the prior year.
LEPFA Board of Commissioners Meeting
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January 27, 2004
Event Expenses for the current period are $40,406 compared to $469.74 for last year.
Food and Beverage expenses for the current period are $122,544 compared to $132,236
last year and are$711,718 for year to date compared to$807,978 for the prior year. Total
Operating Expenses for the current period are $449,963 compared to $422,409 for the
prior year and year to date the figure is$2,570,945 compared to$2,589,777. After netting
expenses against revenues, we had a loss for the current period of($119,828) and for the
year to date the loss is($686,204). After adding in the City Contribution and Interest, we
have a current period loss of($70,331) and a year to date loss of($369,946).
At 8:20 a.m. Jim Ruff entered the meeting.
The Cash and the Cash Equivalents for the current year are $221,340 compared to the
prior year's amount of $412,390. Accounts Payable for the current year are $419,417
(which reflects the Loans from Oldsmobile Park and the Lansing City Market), compared
to $245,796 for the prior year. Under Liabilities - Unearned Advanced Rent, which is an
indicator of future business, is$373,672 compared to $318,376 for last year. Unreserved
Equity for the current year is $56,566 compared to $382,255.
Under Budget versus Actual - Building Rental for the current period is better than what
was budgeted by$2,625 and for year to date the amount is less than what was budgeted by
($31,113). Food and Beverage for the current period is better than what was budgeted by
$36,676 and for year to date the figure is($118,385). Equipment Rental is better than what
was budgeted for year to date by $132,563. Labor Service is better than what was
budgeted for year to date by$27,170. Total Operating Revenues for the current period are
$330,135 compared to the budgeted amount of$180,945 and for year to date the figure is
better than budget by $18,318.
Under Operating Expenses — Salaries/Wages for year to date are better than what was
budgeted by $28,299. Fringes and Related costs were higher than what was budgeted by
($4,976) for year to date. Utilities are better than what was budgeted by $28,090 for year
to date. Insurance/Bonding exceeds budget by ($2,394). Events were higher than what
was budgeted by ($54,366) for year to date. Total Operating Expenses were better than
budget by$13,009. After netting Expenses against Revenues, we are better than budget by
$31,327. After taking into account the City Contribution and Interest, we are better than
budget for the Lansing Center by $24,101.
Finance Committee Chairman Sinadinos moved that the monthly financials for Oldsmobile
Park, the Lansing City Market, and the Lansing Center for the period ending December
31, 2003 be received as published, and further that the monthly expenses for each entity be
approved. SUPPORT: Commissioner McGuire, motion carried.
Finance Committee Chairman Charlie Sinadinos noted that there have been several
meetings regarding the budget, and it has been reviewed very thoroughly and the Finance
Committee would recommend adoption.
Prior to beginning the budget presentation, Peter asked Patrick and Linda to give brief
reports on the Union and the City Market.
LEPFA Board of Commissioners Meeting
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January 27, 2004
C. PRESIDENT AND CEO'S REPORT:
1. UnionReport: No report.
2. Lansing City Market: Linda Frederickson reported that for December Rent Revenue
was up as well as Occupancy and she noted that it was a good month for the Market and
attributed it to the mild weather and the entertainment. January-March winter hours have
been instituted and the Market is now open from10:00 a.m. until 5:00 p.m. spring
sprucing within the Market is slated to begin within the next month. Recruitment efforts
include a verbal agreement with Schlitz Deli which will include approximately 14 spaces in
the northwest wing of the Market with possession occurring on March 1 and he hope to
open in May. We also have a verbal commitment from Appleschram Market to return for
the summer, and everyone is eager for the spring season.
Commissioner Janssen asked if the entertainment has had an impact. Linda indicated she
is not certain if there is a correlation between sales and the entertainment, but she noted
that it does improve the atmosphere and flavor of the Market.
D. PROPOSED FYE 2004-2005 ANNUAL BUDGET:
1. Cover Memo: Peter reported that the memo explains that we have compiled budgets for
the Lansing Center, Oldsmobile Park and the Lansing City Market while the second
paragraph notes our projections of Revenues of$4,800,000 with Expenses of$5,800,000
which results in a projected City Contribution of $770,000 for an estimated $171,000
increase in funding. He noted that last year we received $600,000 in funding rather than
the $663,000 requested, and that had we received what we requested last year, this year's
request would have been an increase of$106,000. Revenue projections for the Lansing
Center are trending to remain flat (although we do project a revenue increase of about
$26,000). We are also projecting a decrease in Rental Income of about $39,000 which
ultimately drives Food and Beverage Revenues, Equipment Rental, and Labor Services,
which we also project to remain constant. In regard to total operating expenses, we are
projecting a modest increase of 2.8% despite property insurance increases of 7.5% from
2004 to 2005 (a 68% increase over the past 2-3 years), as well as a 15% increase in
medical insurance (which has increased 27% over the past several years) and guaranteed
Union contractual increases.
Oldsmobile Park expenses are anticipated at$226,000 as compared to $213,000 in 2004
due primarily to increases in property insurance. We project presenting 22 events
comprised of 34 event days, consisting of a variety of events. Lansing City Market
revenues are projected at $82,000 while incurring expenses of $157,000 resulting in a
projected City contribution of$72,000 or a minimal 3.4% increase which is primarily due
to property insurance and utilities. We have proposed a Salary Allocation of Management
Salaries/Fringes at Oldsmobile Park, but feel an increase is needed from 4% to minimally
6.5%. Our budget projections are estimates based on approximately 750 event days,
attracting approximately 500,000 attendees, with an estimated economic impact of
$13,000,000. Common Ground will be in its fifth year this year, and our holiday sales and
promotions are ahead of last year and we hope after having earned a profit last year that
we will do the same this year with luck, good weather and good mix of musical
entertainment.
LEPFA Board of Commissioners Meeting
Page 6
January 27, 2004
To-date, more than 254,000 have attended the festival over the past four years, with an
estimated economic impact of $14,000,000 based upon the CVB formula. We have
donated in excess of$75,000 to the various non-profits who have worked at the Festival.
We look forward to our continued partnership with the City, and support of our Board, in
regard to operating the facilities which we manage.
2. Salary Allocation: Peter noted that this started in 1999 when it was determined that 5% of
all full-time LEPFA salary and benefits would be charged to Oldsmobile Park. The
genesis of this was through our auditors who met with LEPFA staff and Bob Swanson, and
explained that many folks at the Lansing Center spend a considerable amount of time at
Oldsmobile Park, but there is no allocation. In 1998/99 a formula was developed and in
the "Chairman's Special Report on Finances," the Board recommended that 25% of the
salaries/wages of those individuals who work at Oldsmobile Park be allocated and
ultimately the percentage that was agreed upon was 4-5% ($42,000). Peter noted that in
the cover letter he indicated that he feels it is time to re-evaluate the allocation and he and
Marian have made a recommendation of at least 6.5% or $70,000.
3. Lansing City Market: Peter reported that total operating revenues were reported to be
about $82,500 which is consistent with the 2004 budget. Building Rental is projected to
increase slightly while parking revenues are projected to decrease slightly. Operating
Expenses are estimated to be $157,200. Income Loss is projected to be $72,000 versus
$69,000 for last year and the reasoning for the increase is insurance/bonding and utilities.
Otherwise the budget is commensurate with the 2003/2004 budgets.
4. Oldsmobile Park: Peter noted again that there is not a significant difference in comparing
the 2004 and 2005 budgets; however we are budgeting additional dollars for
insurance/bonding and utilities based upon the actuals for 2003. Peter noted that we are
asking the City to take a hard look at what they are allocating based on what we have
requested and what we have actually received over the past several years while taking into
consideration the changes with insurance/bonding and the proposed allocation changes.
5. Lansing Center: Total Operating Revenues are projected to be$4,700,000 which is similar
to the 2004 budget and essentially we are projecting revenues to be flat or about$26,000
more. Building Rental is estimated to be $1,015,000 which is the amount that we are
comfortable with at this time and is about $40,000 less than 2004. Peter noted Building
Rental is a driver and major component of other revenue sources (Food and Beverage,
Equipment Rental and Labor Service). We are also projecting Food and Beverage to be
flat in comparison to 2004. Equipment Rental is also projected to be flat at $504,000
versus $499,000 and Revenue is expected to increase slightly for Labor Service. Total
Operating Expenses as compared to 2004 indicate a modest 2.7% increase. The increase
for full time Management Staff is 2% and the remaining percentage increase is for Union
contractual obligations which are slightly above 3%. Fringes are projected at a modest 4%
increase and this area continues to grow and we as well as the City, continue to review this
area. Utilities are budgeted at $611,000 and are dependent upon the mix of events.
Marketing is down slightly, Repairs and Maintenance is flat and the same for Supplies and
Materials. Insurance and Bonding is budgeted up by $10,000 or 7.6%. Food and
Beverage expense is commensurate with the revenue at $2,750,000. Total Operating
Expenses are $5,645,000 versus $5,493,000 for the prior year.
LEPFA Board of Commissioners Meeting
Page 7
January 27, 2004
After backing out Interest and Depreciation and considering the allocation we are at
$698,000, which is $171,000 more than our request from last year, and is explained for
the following reasons:
• Revenue: Revenue is projected to be flat; however, in 2003 we had a record Total
Operating Revenue year because it was the first time we hit$5,000,000 despite the hit our
industry took in 2001. Peter noted he feels that continued spiking of our Revenue is behind
us due to the economy in general and groups tightening their budgets thus, projections for
2004 are less than 2003, which was a record revenue year. Rental Revenues will remain
steady at about$1,000,000 which may or may not drive the other Revenue areas. Peter
explained that the reasons for projecting that Rental will stay flat include competition, the
economy, client belt tightening, and space constraints. He explained further that we started
the expansion study four and a half years ago and we are at the point that we now need to
expand and we can no longer accommodate some of our larger tradeshows, such as
Michigan Nursery and Landscape (they will not be here in 2005-7 and are moving to
Grand Rapids). He also explained that there are areas that we have little to no control over
such as Property Insurance which has increased dramatically, as well as Workers Comp
and Fringes which equates to about $247,000 in increases over the last six years. Peter
noted he believes the issue is not expense reduction, but is revenue growth and he
referenced a handout which explains Rent, Food and Beverage, Equipment Rental and
Labor Services beginning with our first year of operation as an Authority, and noted the
exponential growth in our primary revenue areas while rental remained flat; this explains
that over the years we have done a good job with revenue growth, but we are at a point
that we will not see growth in primary revenue areas unless we expand, which is evident
by what we are projecting for 2005.
• Potential Solutions: Peter noted the Management Team has developed some potential
solutions and they include reviewing the stadium allocation. Peter noted we have only
allocated $42,000 for the past six (6) years to the Stadium Fund and this amount needs to
be revisited with the Administration. The second solution includes a meaningful discussion
with the Administration regarding parking. Peter noted that the Lansing Center generates
a good deal of Parking Revenue, but we as an operation get no credit for it; while we are
not trying to "pick anyone's pocket," we need to meet with Parking to discuss this concept
further. Peter noted he feels this is a reasonable discussion to have with the City and ask
for help.
• Capital: In regard to Capital, we have budgeted$50,000 for capital this year again, and
each year the City has given us$50,000 for Capital. Peter noted that over seven years that
would equate to$350,000, while we have spent close to$700,000. We were able to spend
$700,000 because when we "beat our budget projections," we invested the money back
into the building and we created some reserves which are down due to maintaining the
building. This year we are going to recommend that the $50,000 amount per year be
increased to$100,000. Peter noted in order for us to continue to sell the building we need
to replace the ballroom and meeting room carpet which, is 9-10 years old. Also, the
partition walls in the ballrooms need to be replaced as well. Peter explained that the
ballrooms are the show place for our building and are the main rooms used for weddings,
and we have had complaints about the carpet. Our recommendation will be to replace the
carpet and folding walls and the City appears receptive to our request. These
improvements would provide a dramatic change for the rooms and would have a life of at
least ten years.
LEPFA Board of Commissioners Meeting
Page 8
January 27, 2004
Peter noted that Commissioner Peters asked him to comment on her evaluation of the
Mayor's speech last evening and to express her support of LEPFA being designated and
being heavily involved in the creation of the "Entertainment District." Peter noted that he
explained to Sharon that he and the Mayor will have to talk in detail about the District and
that he would like to know how the rest of the Board feels about this topic. He noted that
it was positioned differently in earlier drafts and his understanding was that LEPFA is
considered to be a facilitator in creating a Task Force to determine what can be done in
terms of an "Entertainment District." The second initiative has to do with the expansion of
the Lansing Center and a hotel. Peter opened the floor for discussions.
Commissioner Janssen noted to the visitors present that Peter and the staff have reviewed
the budget information discussed today with the Board members a number of times and
they have had the opportunity to seriously discuss these issues and that the lack of
questions should not be construed as a lack of interest or that they're uninformed, but that
they have all been informed of the shortfall.
Jim Ruff noted that from his perspective and in working with Peter, and in helping to
expand the marketability of the downtown, he agrees that we do need to expand the
Lansing Center and we need to do it in such way that is not in isolation, and we need to
support it and the downtown in multiple ways. He indicated that discussions have been
ongoing with Mayor regarding the need to maintain a compact and vibrant downtown,
which needs people and he noted he will be working with Peter on the "Entertainment He
also referenced the maximum revenue potential for the Market and asked if this has been
calculated, i.e. if every space was full all year along. Linda noted that it would be more
complicated due to space being leased more than one time in a year, but noted that she
could provide the information. He noted this would allow us to keep track of
improvements in that area.
Peter displayed a sample of a folding wall, which would be an upgrade to the existing
walls. He noted the wall is carpeted, which is easier to clean and replace and would
remove a significant amount of wear and tear and expense as well as provide sound
absorption. Patrick noted it is the same walls used in Grand Rapids.
Finance Committee Chair Charlotte Sinadinos moved that the proposed Annual Budget for
2004/2005 for the Oldsmobile Park, Lansing City Market and the Lansing Center be
adopted as published. SUPPORT: Commissioner Janssen; motion carried.
D. PERSONNEL COMMITTEE: Committee Chairman Cyril McGuire noted that the
Personnel Committee has unfinished business, however he noted he is of the opinion that
the issue at hand is the budget and once we have successfully completed that process the
Committee will convene.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Charles Janssen noted
that he and Peter met with the Mayor and discussed the expansion of the Lansing Center
and noted that we will be going before City Council at some point to discuss our plan;
however they were waiting until after the State of the City address to determine the
Mayor's priority, which his address clearly indicated the expansion is a high priority.
LEPFA Board of Commissioners Meeting
Page 9
January 27, 2004
Chairman Janssen noted the issue is funding and now that Lee Hladki is in place at the
CVB, we will re-activate the plan and move ahead by bringing the partners up to speed.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Marian Bryant: Marian thanked the Commissioners for their support during the budget
process.
B. Commissioner Sinadinos: Commissioner Sinadinos noted that as business owner in
downtown Lansing, that hopefully the Mayor and everyone else will be supportive of
building this district and the expansion of the Lansing Center, and that a compact district
as Jim indicated will draw people downtown, (they are being drawn to the outside malls)
and this will help to keep good businesses in the downtown.
C. Commissioner Tim Haggart: Commissioner Haggart thanked Marian and Peter everyone
involved in working on the budget.
D. Denise Wootton: Commissioner Wootton noted that we have been through the budget
process year after year and we have proven that numbers are real, and it is something that
has to be addressed.
E. Commissioner Ellen Jeffries: Commissioner Jeffries thanked everyone for the party on
December 16 and noted that the food was great. Ellen noted in regard to the Mayor's
speech and the District, she felt that it would be good if the Board were kept informed of
the meetings/discussions and asked if it could be fit in the Board's committee structure for
discussion (i.e. Long Range Planning Committee).
At 9:15 a.m. Jim Ruff exited the meeting.
F. Margaret Vroman: Chairman Butler noted that Margaret is the Assistant City Attorney and
she will be attending the LEPFA meetings and he welcomed her. Margaret reported that
the lawsuit has been filed on behalf of LEPFA, but has not reached the servers yet.
Commissioner Janssen noted that it is a collection.
G. Commissioner Charles Janssen: Commissioner Janssen suggested that a letter be sent to
Jim Smiertka from LEPFA thanking him for his service (or a proclamation).
Commissioner Janssen noted that with Common Ground, our staff has picked up the work
associated with the event, which the City has supported with funding; however, in regard
to the Entertainment District, while he is very supportive of it, he questioned how much
our staff will be expected to pick up and noted that he would pass that along to the City
and note that this is a budget concern. He also noted that he has heard a lot of discussion
in regard to the PSD and that the South Washington Business owners are questioning what
they are getting other than snow removal. Commissioner Janssen asked how it all fits
together and what are they doing for their money and how is it being coordinated. He also
questioned from a political standpoint, should the Board raise the issue rather than Peter.
Marian Bryant commented that there is about$35,000 in our budget that is earmarked for
the PSD. Peter agreed that there is a$35,000 expense and we do our own snow removal.
Peter noted we are a team player right now, but this would be another avenue for the City
to review.
LEPFA Board of Commissioners Meeting
Page 10
January 27, 2004
H. Peter Sullivan: Peter reported that he would like to echo Ellen's comments in regard to
the Entertainment District and that in his mind there a lot of questions to be asked by the
Board to the Administration and that he echoed Ellen and Charley. He noted when this
concept was proposed to him recently, his comments were "time and money" and noted
that for every other undertaking the City has managed, there has been a consultant. He
noted he indicated we would be happy to be on Board and that he felt it was necessary for
LEPFA Board members to be on the Task Force, as well as other logical folks but that
money is imperative. Peter indicated that he felt it was a logical place for us to be, but we
need support and this has been a part of his discussions with the Administration.
I. Commissioner James Butler: Chairman Butler's first recommendation/question was
whether we could possibly get some business cards for the Commissioners, noting that as
of late he is getting cards from various Board members(i.e. the Board of Water and Light,
the Chamber, MSU, the State Police) and felt that they would be helpful so that they can
be ambassadors for the organizations that they represent and noted it may be something
that we need to think about. He also welcomed Margaret and thanked her for being a part
of LEPFA and indicated that if we can be of assistance or provide information not to
hesitate to ask. He also thanked Jim Ruff for attending as well, and for his willingness to
sit down and discuss various issues.
Peter noted that there is a meeting on Thursday at 10:30 a.m. with John McComb and Jill
Rhode from the City and Board attendance would be greatly appreciated since this is the
first meeting with the City.
Chairman Butler questioned the dates for the Anti-Harassment in-services as was discussed
at last month's meeting by Patrick. He also commended Peter for the type of visibility he
received last night in reference to the Mayor's comments, and noted that it was received
positively and there were people in the Chamber who felt positive and he congratulated
Peter on the Mayor's recognition of the leadership that he brings to the table in dealing
with the downtown Entertainment District and he is sure that there will be many good
things to come from that.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:25 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY,FEBRUARY 24,2004 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
FEBRUARY 24, 2004
MINUTES
At 8:00 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 ill, Tim Haggart, Ellen Jeffries, Sharon Peters,
Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Charles Janssen, Cyril McGuire, and Jim Ruff(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 - Lansing City
Council and Margaret Vroman, City of Lansing.
i
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda.
IV. PUBLIC COMMENT: '
There was no public comment. C'�
V. APPROVAL OF THE MINUTES OF JANUAY 27, 2004:
The minutes of January 27, 2004 were adopted as presented. MOTION: Commissioner Haggart
SECOND: Commissioner Sinadinos, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman James W. Butler III indicated that the commitment of
the Board in his opinion is unbelievable. He noted that their participation and their
willingness to roll up there sleeves and get involved at any time and do whatever it takes
for LEPFA to be successful, the Board will do it. He noted there was a meeting on
February 3 at 8:15 a.m. with John McComb and Jill Rhode, and it appeared to be a Board
meeting and there appeared to be a full house with LEPFA Board members and the total
participation was extremely heartwarming. He reported that there was a meeting again on
February 17 at 8:00 a.m. in the Mayor's Conference Room and there was a full house
again, total participation, and there was a very provocative discourse with the Mayor and
John McComb. Chairman Butler thanked the Board, noting that to have a Board like ours
is overwhelming and he noted that he truly appreciated the members, as well as the
LEPFA staff.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials - For the Period Ending January 31, 2004: Committee Chairman
Sinadinos reported the following:
a. Lansing City Market: Building Rental for the current period is $3,092 compared to
$3,066 for the prior year, and for year to date the total amount is $28,112 compared to
$30,359 for the prior year. Parking for year to date is $11,790 compared to $11,385 for
last year.
LEPFA Board of Commissioners Meeting
Page 2
February 24, 2004
Total Operating Revenues for year to date are $40,207 which is less than$42,232 for the
prior year. Under Operating Expenses - Utilities for the current period are $5,643
compared to$4,148 for the prior year and for year to date they are$26,244 which exceeds
the prior year's amount of $23,556. Maintenance of Facilities for the current period is
$4,244 (this included six months work on the grounds and painting, and was just billed)
and for the prior period they were $1,614. Year to date Maintenance of Facilities is
$5,870 compared to $4,561 for the prior year. Insurance/Bonding for year to date is
$2,489 which exceeds the prior year's amount of$2,121. Total Operating Expenses for the
current period are $16,052 compared to $12,003 for the prior year and year to date they
are $87,866 compared to $81,354 for last year for a loss of($838) compared to the prior
year's income of$7,841.
Total Cash for the current year is $4,542 which is down from the prior year's figure of
$54,131 which reflects the loan to the Lansing Center. Accounts Payable are $31,853
compared to the prior year's amount of$17,151 and includes the payment not made to the
PSD and the painting that was done. Unreserved Equity is $171,705 compared to
$166,183 for the prior year.
Under Budget versus Actual, Building Rental for the current period is better than
budget by ($172) and for year to date Building Rental is less than budget by ($131).
Parking for the current period is less than budget by ($4,077) and less than what was
budgeted for the year to date by ($5,428). Total Operating Revenues for year to date
are less than budget by ($5,674) due primarily to parking. Operating Expenses -
Utilities for the current period exceed budget by ($2,602) and for year to date Utilities
have exceeded budget by ($4,957). Maintenance of Facilities for the current period are
more than budget by ($3,449) and for year to date the variance is ($305).
Insurance/Bonding for year to date was more than budget by ($5.63) and for year to
date the amount was higher than budget by ($242.53). Total Operating Expenses for the
current period are higher than what was budgeted by ($3,046) and for year to-date we
are $3,340 better than what was budgeted. After factoring in the City Contribution and
Interest, we are higher than budget by ($3,919) and is the result of a timing issue on a
six month billing issue.
b. Oldsmobile Park: The Event Revenues for the current period are $12.07 which is
interest, and the Event Expenses are $5 (bank fees) which leaves $7.07 which was
added to the Event Development Fund. Under Operating Expenses - Utilities for the
current period are $9,037 compared to $5,443 for the prior year and Patrick is looking
into the difference.
At 8:13 a.m. Commissioner Sharon Peters entered the meeting.
Utilities for year to date are $38,707 compared to $33,919 for the prior year.
Maintenance of Facilities for the current period is $1,728, which was the repair of a
fence at Oldsmobile Park. The Miscellaneous expense of$5,597for the current period
is the LEPFA suite payment, which was moved to Oldsmobile Park from the Lansing
Center. Total Operating Expenses for year to date are ($164,368) compared to the prior
year's expenses of($145,338). We have a bottom line loss for year to date of
($23,746) compared to last year's loss of($5,421).
LEPFA Board of Commissioners Meeting
Page 3
February 24, 2004
The Net Event Development Fund is at$54,344 compared to the prior year's amount
of$52,698. Total Cash for the current year is $89,634 compared to $175,443 for the
prior year and the difference reflects a loan to the Lansing Center. Unreserved Equity
is $76,665 compared to $95,372 for the prior year.
Under Budget versus Actual - the Utilities were higher than what was budgeted by
($4,050) and for year to date the figure is higher than budget by ($5,014). Professional
Services are higher than budget by ($8,023) for year to date and the difference in the
figures is due to two (2) audits in the same fiscal year. Insurance/Bonding is higher
than budget by ($4,608) for year to date. We have an Operating variance from budget
for the current period of($6,238) and for year to date we are better than budget by
$1,127. After taking into account the City Contribution and Interest, we are higher
than budget for year to date by ($56.72).
c. Lansing Center: Committee Chairman Sinadinos noted that we reached our benchmark
of above$500,000 with a Total Operating Revenue of$553,980, which was an exceptional
January; however, this has to be weighed against the upcoming February which is coming
in at less than previous Februarys. Total Building Rental for the current period is$120,274
and was$105,192 for the prior year and year to date the amount is$472,319 which is less
than last year's amount of$514,636. Food and Beverage for the current period is up at
$299,138 compared to$213,737 for the prior year, and year to date Food and Beverage is
$1,326,760 compared to$1,511,522 for last year. Equipment Rental for the current period
is $83,157 compared to $64,234 which was up again this month, and for year to date the
amount is$394,248 which exceeds the prior year's year to date amount of$324,706. Total
Operating Revenues for the current period are $553,980 which exceeds the prior year's
amount of$457,420; and the figure for year to date is $2,438,721 which is less than the
prior year's amount of$2,606,172.
Under Operating Expenses- Salaries/Wages for the current period are down at$145,057
compared to $169,303 for the prior year and year to date Salaries and Wages are up at
$949,198 compared to $934,863 for last year. Fringes and Related Costs for year to date
are $318,806 compared to the prior year's figure of$294,832 which is primarily medical
insurance and workman's Comp. Insurance/Bonding is up slightly over the previous year
at $79,127 compared to $78,546.
Food and Beverage expenses for year to date are$887,878 compared to $966,559 for the
prior year. We have a bottom line loss for year to date of ($256,852) compared to the
prior year's loss of($63,592).
After totaling together Cash and the Restricted Assets, we have $187,272 for the current
year compared to the prior year's amount of $356,792. Under Liabilities - Unearned
Advanced Rent is$360,523 compared to$321,137 for last year. Unreserved Equity for the
current year is $169,616 compared to $387,465 for the prior year.
Under Budget versus Actual - Building Rental for the current period is better than budget
by $10,984 and for year to date the amount is less than budget by ($20,129). Food and
Beverage for the current period is better than budget by $99,138 and for year to date the
figure is less than what was budgeted by ($19,246).
LEPFA Board of Commissioners Meeting
Page 4
February 24, 2004
Equipment Rental is better than budget for the current period by $26,420 and for year to
date it is better than budget by$158,984. Total Operating Revenues for the current period
are better than budget by$145,811 and for year to date the figure is better than budget by
$164,129.
Under Operating Expenses — Salaries/Wages for year to date are better than budget by
$7,382. Fringes and Related costs were higher than budget by ($11,568). Utilities for the
current period are higher than budget by$4,075 and are better than budget for year to date
by$24,015. Insurance/Bonding for year to date was higher than budget by($1,784). The
Food and Beverage Expense for year to date is better than budget by $19,773. Total
Operating Expenses were higher than budget by ($76,105) and for year to date they were
higher than budget by ($63,095). After netting Expenses against Revenues, we are better
than budget by$101,034. After taking into account the City Contribution and Interest, we
are better than budget by $118,735; however due to a timing on the subsidy, the actual
amount should be $92,000.
Chairman Butler noted Equipment Rental was better than budget by $158,000 and asked
why it was up when Building Rental was down. Peter explained that the reasoning was
two fold, one explanation was that there was a greater request on the part of the clients for
rental equipment and secondly the Operations Staff's efforts to secure as much Equipment
Rental as possible by making our clients aware of our services. Marian noted there were
also additional events that were not budgeted.
Finance Committee Chairman Sinadinos moved that the monthly financials for Oldsmobile
Park, the Lansing City Market, and the Lansing Center for the period ending January 31,
2004 be received as published, and further that the monthly expenses for each entity be
approved. SUPPORT: Commissioner Peters, motion carried.
C. PRESIDENT AND CEO'S REPORT:
1. Union Report: No report.
2. Lansing City Market: Linda Frederickson reported that January was just about equal to last
January. Occupancy is at about 50% which is up about 1% over last year and the Manager
anticipates that as summer approaches it will increase by about 10% which is similar to
previous years. Valentines Day fell on a business day for the Market and there were three
or four vendors selling fresh flowers, and they were very busy. Market clean up and
beautification continues as we approach spring, and with Schnitz Deli moving forward we
have been taking down roofing, have painted and prepared electrical as we prepare for the
move. Vendors will be moved this week and next, and Schnitz will begin construction in
mid-March and the opening is scheduled for the first week of May with a ribbon cutting
celebration with the Mayor. Linda noted as we focus on the Market as a small business
incubator, meetings have occurred with the University of Michigan Business School in
terms of a Business Plan and a study, and we are in the initial stages with their
recommendations to be forthcoming.
LEPFA Board of Commissioners Meeting
Page 5
February 24, 2004
Additionally Linda noted she will also meet with the Chamber's Small Business Division
regarding the use of the Market as a small business incubator and we are working with
them to determine if the Market can be a tool for them in helping small businesses start up
and we are currently exploring what services and programs they offer and how the Market
can compliment them. Peter indicated that we are also working with the EDC on small
businesses loans for Market vendors. Linda noted she has also learned about LCC/Bo
Garcia's "Small Business Development Center" and she will follow up with him, and she
is also contacting the Department of Agriculture. Chairman Butler noted the Mayor will be
ecstatic to learn of all of the developments.
3. Oldsmobile Park: Peter reported that Patrick and Operational Staff have recently met with
the Lugnuts in regard to Opening Day. We are also trying to meet with the Administration
per General Motor's request to change the stadium's name. GM's contract with the City
for naming rights is fifteen years (at $100,000 per year).
4. Lansing Center: Peter reported that we continue to move forward on Wally Byum and we
have approximately 32 food functions booked with a number of sublease agreements
returned to us. We will meet with the CVB to continue our dialog and move forward in
our attempts to secure more food and beverage events.
Sales Report: We had 44 events equating to 68 event days, attracting close to 16,000
people, for about 43 room nights, with an estimated economic impact of approximately
$1,200,000.
Facility Highlights: Highlights for the month include Michigan Townships Association
which attracted approximately 1,600 patrons; this group will not return until 2008 due to
their rotation. Great Lakes Ice Cream and Fast Food (an annual show hosted here) did
very well in terms of their attendance. We also hosted AAA of Michigan for the first
time; Great Lakes Aviation returned for their third year; S. Abraham & Sons attracted
about 1,000 people for their dinner (this is a food distribution show) and they are also
moving to Grand Rapids for the next one to two years. Additional February events include
Michigan Trucking; Social Studies and Michigan Floral, which is another event that is
moving to Grand Rapids. March events include the Science Teachers, Michigan
Broadcasters and some of our large consumer shows such as the Sportfishing Show, the
Golf Show and the Michigan Deer and Turkey Spectacular.
5. Common Ground: In regard to Common Ground, Peter indicated that we continue to look
at the talent and the routing and that at this point it is going a little slower than last year at
this time in terms of commitments. We didn't announce talent until the third week in
March last year, and that will be the case for this year. Additional items under
consideration in terms of Common Ground include a potential carnival; a youth oriented
video component called "Game Riot" which is geared toward teenagers and has traveled
around the country with Lollapalooza and would be housed under a separate tent on the
festival grounds with a separate admission. The final component is the potential inclusion
of the symphony. Peter explained that in the past we have hosted the symphony on July
Forth at Oldsmobile Park.
LEPFA Board of Commissioners Meeting
Page 6
February 24, 2004
This year we are looking at presenting the Lansing Symphony Orchestra and the Lansing
Concert Band at the Common Ground Festival on July 4th. This year the Fourth is on a
Sunday, last year it was on a Friday and we were set up and ready to go last July 4 and the
Lansing Concert Band performed on the Common Ground stage. Peter noted the idea was
presented to Murdock Jemerson, and while he liked the idea, he was concerned that the
city-wide celebration has traditionally been free, with the Concert Band performing on the
showmobile. Our event(Symphony)has been on or around July 4 with an admission price
of$12 for adults and $5 for kids. Peter has met with both organizations to propose that
the two(the Symphony and the Concert Band)perform as one with a grand celebration on
July 4 and both were pleased with the idea. He has talked to a number of people including
the Mayor who recommended that he talk to Councilmembers Allen, Leeman and Bauer
who all were in favor of the concept in addition to Councilmember Wood. Peter noted it
was not a "done deal" at this point due to costs associated with the event. The concept
continues to be researched in terms of the presentation and financial concerns.
Commissioner Peters questioned the progress in securing Al Green. Peter noted we
continue working on securing acts and would have announcements around the third week
in March, which is commensurate with last year, but it all depends on when the acts
confirm. Peter explained that we are a small market with a small venue and typically acts
book the larger markets/venues first. We continue to monitor Chicago, Milwaukee and
Muskegon acts and continue the ongoing daily dialog. Councilmember Allen asked if the
economy will impact the festival negatively. Peter noted of greater concern is the weather
and the acts we are able to book(routing wise); however the holiday sales were far greater
this year than the first four years and we are optimistic and encouraged by the many
positive comments.
6. Budget: Peter thanked those that were able to attend the LEPFA Finance meetings as well
as the meetings with the administration. He believes the Administration understands our
situation and will continue to look at ways to help us and a budget hearing in front of
Council will be in April or May.
7. Expansion: A meeting will be held on Friday to discuss a draft of the financing strategies
for the expansion with our consultant. The consultant hopes to meet with the Mayor and
Council President Joan Bauer and LEFPA's Long Range Planning Committee. Peter also
indicated that we will set up a bus trip to Grand Rapids in the near future, which will
include the Board, the Administration and Council, and will include tours of DeVos Place
and the downtown.
D. PERSONNEL COMMITTEE: No report
E. LONG RANGE PLANNING COMMITTEE: No report.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Councilmember Sandy Allen: Councilmember Allen noted the Committees are now
meeting every other week, which makes for a long agenda. Many pilot issues are under
consideration including Richard Karp's building on Kalamazoo and Washington which will
house retail and office space. There is also a potential buyer for the City Club and they
are considering lofts and condos and maintaining dining as well with expansion.
LEPFA Board of Commissioners Meeting
Page 7
February 24, 2004
Chairman Butler questioned Kris Nicholoff's appointment to the LEPFA Board.
Councilmember Allen noted he was on the agenda, but she is not clear as to what
transpired. She noted that Brian Jeffries pulled the appointment.
Commissioner Ellen Jeffries noted that her understanding is that the Intergovernmental
Committee wanted to look at the composition of our Board in terms of how many people
were from the City so that there is a consistency in residency even thought it isn't a
requirement of our Board.
Councilmember Allen announced that Gary Caulkins was appointed to the Board of Water
and Light Board. Council approved a waiver on the requirement of five years of municipal
experience as it pertains to the appointment of Glenn Kirk as the City Director of Finance.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:04 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, MARCH 23, 2004 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 23, 2004
MINUTES
At 8:05 a.m. Chairman James W. Butler III called the meeting to order in Room 203 of the Lansing
Center; 333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James W. Butler III, Tim Haggart, Charles Janssen, Ellen Jeffries,
Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Sharon Peters, Cyril McGuire, and Jim Ruff(Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Peter Sullivan, and Patrick
Talty-Lansing Entertainment and Public Facilities Authority. Margaret Vroman, City of Lansing. Kevin
Meyer, Meridian Entertainment Group. Darris Lee, Cranbrook Student.
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda.
IV. PUBLIC COMMENT:
Chairman James W. Butler III introduced and welcomed Darris Lee, a senior Cranbrook Honor
Student and he reviewed his honors, activities and interests and explained that Darris is shadowing
him for the day.
V. APPROVAL OF THE MINUTES OF FEBRUARY 24, 2004:
The minutes of February 24,2004 were adopted as presented. MOTION: Commissioner Haggart
SECOND: Commissioner Jeffries, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman James W. Butler III indicated that the commitment of
the Board continues to amaze him and as time progresses the Board is involved in more
meetings and the participation of the Board has been quite significant. He noted through
the Boards' support, we were able to get most of the items we requested approved by
Council and that is amazing and it is great that all of the Board is involved.
Chairman Butler noted a meeting took place on February 27 with the Mayor, our City
Council President, and AG Edwards and Sons to discuss the Lansing Center expansion
financing. He noted in his opinion it was a good meeting and we are moving forward
because we have to maintain momentum and internally we need to make sure that we get
this project off. Chairman Butler stated that another meeting took place on March 4
with Commissioner Sharon Peters, Kevin Meyer and Peter to discuss Common Ground.
He noted that Peter and Kevin educated them about the scheduling and complexity of
presenting Common Ground. He noted that the process is not simple and there are many
factors that need to be considered, i.e. the different genre, the acts,while reflecting on the
community and taking into consideration the timing and costs as well as the arena. He
noted he left the meeting very impressed and very educated on what is needed and has
to be done to make sure Common Ground is successful. Chairman Butler noted he
applauded everyone for making the event as successful as it is, and that he, Sharon
Peters and Kevin are scheduled to meet (on Friday) with some of the radio owners later
this week to discuss the benefits of Common Ground.
LEPFA Board of Commiso-mers Meeting
Page 2
March 23, 2004
Chairman Butler extended his thanks and appreciation to all of the Board members for
doing an excellent job.
B. COMMON GROUND UPDATE: Peter indicated that he asked Kevin Meyer to update
the Board today on Common Ground.
Linda Frederickson shared with the Board that every year the AAF sponsors the national
advertising awards and they begin in the local/regional market with the Addy's and then
they move on to a district and a final. Common Ground had two entries this year and won
a silver for the commemorative poster and a silver award for the stationery package. Last
year our commemorative poster received a gold Addy. She also noted that the McNenly
Group took five of seven entries which included three golds (only 24 golds were
awarded for the entire event). Peter noted he, Kevin and Linda have attended the Regional
Economic Development awards, and the Common Ground Festival has been a runner up
two times for entertainment/cultural activities for our regional initiative. Peter noted we
have been invited to the event again this year on April 1. Peter also noted that our web
site has been revamped and is a huge improvement over our initial web site. Peter
indicated that we partnered with a group called Metasurge and they did a phenomenal
job.
Commissioner Janssen asked Linda if we inform City Council about our awards. Linda
noted we do not, but indicated that we can and that it was a good suggestion.
Kevin Meyer thanked the Board for having him attend the meeting and noted that Peter
asked him to present a quick synopsis of the 2004 Common Ground Festival as well as the
process of programming the festival. Kevin noted that Common Ground is a year around,
on-going process to determine who will potentially tour in the summer and the information
is continuously changing within the industry. He noted tomorrow we are announcing
several additional acts to our line up(the opening act on July 5 is ZZ Top). Tomorrow we
will announce that country act Montgomery Gentry, who will be performing on
Wednesday, July 7; REO Speedwagon who will perform on July 9; and on Sunday,
July 11 Alice Cooper will play.
Kevin explained that Common Ground is considered a"soft ticket event" which means that
we sell a seven-day pass which are $75 this year or approximately $10 per day, which is
much more affordable than the average ticket price for a concert. Single day tickets are
$22 in advance and$28 on the day of the concert. The model for Common Ground is to
continue to present world class entertainment at an affordable price. Within that model,
when trying to book talent, we are looking for talent that is affordable and within our
budget. Other variables include routing, because we are limited by a specific seven day
window for booking acts. We also have to deal with variables that we have no control over
such as acts that decide to tour Europe, acts that decide to go on vacation, acts that are
waiting to be packaged in an amphitheater tour, (which is where we are now)and we try
to pick acts off of other tours for Common Ground. Kevin noted another act that was
confirmed last night and will be announced for July 6 will be Crosby, Stills and Nash and
we will fill in the dates with other genres of music.
LEPFA Board of Commissioners Meeting
Page 3
March 23, 2004
He noted with Sharon and James' help they hope to have additional media partners and look to
potentially provide Urban, Hip Hop and/or CHR groups.
Kevin noted from a financial perspective, sale of the seven day pass called the "Common
Card" (which sold out last year)is up 300% over last year event with a 20%price increase and
the change is attributed to the fact that the cards are selling faster this year, as opposed to more
cards being sold, and is a great indication of the notoriety that the event has in the community
and is an indication that people have realized that they sold out in advance last year and are
willing to pay a little more, which means they have a greater value. Kevin also cautioned that
while we netted$32,000 last year, it is not even a 2% margin of our operating budget and that
this event has just begun to turn the corner, and this year is just as important, and we hope to
see a bigger profit and to continue to return capital to see the festival reinvest in itself.
Chairman Butler asked if there is a target? Kevin noted 10-15% would be great,but 7-10% is
reasonable. Chairman Butler also questioned the percentage increase in ticket price; Kevin
replied that it was about 15%. Kevin noted the capacity is limited, and so are the single day
tickets due to the capacity. He also indicated that now the real marketing machine begins to
roll, because we have pulled back since the holidays. Kevin noted the capacity of the park is
around 18,000 with 12,500 at the west stage and 7,500 on the east stage and capacity changes
are forthcoming at the East Stage. Commissioner Janssen questioned the logic of limiting the
passes? Kevin noted that by limiting the supply we increase the demand, and we have a
limited capacity venue as well which leads to a subsequent increase in price. Kevin also
commented that if we had a larger venue we could sell more passes. Peter also noted that it
provides a balance for those who don't want the week long pass and we need to accommodate
those who want single day passes. Kevin noted we have to also take into consideration
accommodating the sponsor passes. Commissioner Butler questioned what Kevin's biggest
nightmare would be, and he indicated security issues would be his biggest concern because it is
difficult to recover from. Chairman Butler thanked Kevin for attending and for his excellent
report. Kevin Meyer exited the meeting at 8:40 a.m.
C. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials - For the Period Ending February 29, 2004: Committee Chairman
Sinadinos reported the following:
a. Lansing City Market: Building Rental for the current period is $3,118 compared to
$2,597 for the prior year, and for year to date the total amount is $31,230 compared to
$32,956 for the prior year. Parking for year to date is $11,790 compared to $17,207 for
last year and the difference is attributed to receiving the second quarter parking revenue in
February of last year.
Total Operating Revenues for year to date are$43,360 which is less than$50,686 for the
prior year. Under Operating Expenses — Utilities for the current period are $4,111
compared to$3,957 for the prior year and for year to date they are$30,356 which exceeds
the prior year's amount of$27,514. Total Operating Expenses for the current period are
$11,354 compared to $9,751 for the prior year and year to date they are $99,221
compared to $91,105. Excess Revenues over Expenses equates to a loss of ($5,292)
compared to an income of$10,303 for last year.
Total Cash for the current year is $9,111 which is down from the prior year's figure of
LEPFA Board of Commissioners Meeting
Page 4
March 23, 2004
$67,666 which reflects the loan to the Lansing Center. Total Accounts Receivable are
$183,071 compared to $85,202. Unreserved Equity for the current year is $167,251
compared to the prior year's $168,646.
Under Budget versus Actual, Building Rental for year to date is better than budget by
$367.66. Parking is less than budget by ($5,428) due to the difference in the Parking
Revenue received last year. The variance for Total Operating Revenues for year to
date are ($5,200) which is less than what was budgeted. Operating Expenses -
Utilities for year to date exceeded budget by ($6,028). Insurance/Bonding for year to
date was more than budget by ($248.00). Total Operating Expenses are better than
budget by $4,142. After netting income against revenues we are higher than budget by
($1,057) and after factoring in the City Contribution and Interest, we are higher than
budget by ($2,875). _
b. Oldsmobile Park: The Event Revenues for the current period are $11.15 which is
interest, and the Event Expenses are $106.34 which is comprised of bank fees and
ticket stock. We had an event loss of($95.19) which was applied to the Event
Development Fund. Under Operating Expenses - Utilities for the current period are
$5,992 compared to $5,982 for the prior year and for year to date the Utilities are
$44,700 compared to $39,901.
Maintenance of Facilities for the current period is $4,093 which consisted of work on
the plaza, field sprinkler repair and replacement of a motor in the kitchen. Insurance
and Bonding for year to date is $42,819 and for the prior year the amount was
$37,866. Total Operating Expenses for the current period are $22,070 and were
$16,002 last year, and year to date they are ($186,438) compared to the prior year's
expenses of($163,341). We have a net loss for year to date of($25,754) compared to
last year's loss of($1,539).
Our cash is down for the year due to the loan to the Lansing Center; for the current
year the amount is $71,960 compared to $171,512 for the prior year. The Net Event
Development Fund is $54,249 which exceeds the prior year's amount of$52,709.
Unreserved Equity is $74,562 compared to $99,265 for the prior year.
Under Budget versus Actual - Utilities for year to date were higher than budget by
($6,020). Professional Services are higher than budget by ($7,940) due to two audits in
one fiscal year. Insurance/Bonding is higher than budget by ($4,819). Total Operating
Expenses were higher than budget by $9.33. After taking into account the City
Contribution and Interest, we are higher than budget for year to date by ($1,370).
c. Lansing Center: Committee Chairman Sinadinos noted that this February was less than
our previous Februarys. Building Rental for the current period is $119,666 which is less
than the prior year's amount of $137,657 and year to date the amount is $591,986
compared to last year's amount of$652,294. Food and Beverage revenues for the current
period are up at$261,554 compared to$329,672 for the prior year, and year to date Food
and Beverage is $1,588,315 compared to $1,841,194 for the prior year and is down by
about$253,000. Equipment Rental for year to date is$420,634, which exceeds the prior
year's amount of$354,642, and is up by about $66,000.
LEPFA Board of Commissioners Meeting
Page 5
March 23, 2004
Tradeshow Utilities for the current period are$40,001 compared to the prior year's amount
of$27,515 and year to date they are $120,501 compared to the prior year's amount of
$108,429.
Under Operating Expenses - Salaries/Wages are up about $13,000 for year to date at
$1,089,000 compared to the prior year's$1,076,000. Fringes and Related Costs for year
to date are $366,732 compared to the prior year's figure of$337,157 which is primarily
due to medical benefits. Utilities for year to date are$366,746 which is about$22,000 less
than the prior year's year to date amount of$388,988. Food and Beverage expenses for
year to date are$$1,044,711 compared to$1,137,108 for the prior year. Total Operating
Expenses for the current period are$484,133 compared to$487,571 for the prior year and
the year to date Total Operating Expenses are $3,552,130 which are down from the
previous year's amount of $3,577,952 for a loss of ($233,352) compared to the prior
year's income of$42,354.
After totaling together Cash and the Restricted Assets, we have $389,825 for the current
year compared to the prior year's amount of $550,265. Total Accounts Receivable is
$433,479 compared to$508,991. Under Liabilities-Unearned Advanced Rent, which is
an indicator of future business is $342,142 compared to $318,374 for last year.
Unreserved Equity for the current year is $193,160 compared to $493,412 for the prior
year.
Under Budget versus Actual-Building Rental for the current period is less than what was
budgeted by ($19,983) and for year to date the amount is less than budget by ($40,112).
Food and Beverage for year to date is less than budget by($82,693). Equipment Rental is
better than budget for year to date by $131,633. Tradeshow Utilities are better than
budget by$31,561. Total Operating Revenues for the current period are less than budget
by ($90,942) and for year to date the figure is better than budget by $73,187.
Under Operating Expenses- Utilities for the current period were higher than budget by
($3,409) and are better than budget for year to date by$20,605. Maintenance of Facilities
for the current period was higher than budget by($7,143)and for year to date the figure is
better than budget by$4,064. Insurance/Bonding is higher than budget by($1,233). The
Food and Beverage Expense is better than budget for year to date by $24,902. Total
Operating Expenses were higher than budget for the current period by ($19,199) and for
year to date they were higher than budget by ($82,294). After netting Expenses against
Revenues, we have a loss compared to budget of($9,107). Taking into Account the City
Contribution and Interest, we are better than budget by$15,399; however after taking out
the variance on the City Contribution, the actual figure should be less than budget by
$18,736.
Finance Committee Chairman Sinadinos moved that the monthly financials for Oldsmobile
Park, the Lansing City Market, and the Lansing Center for the period ending February 29,
2004 be received as published, and further that the monthly expenses for each entity be
approved. SUPPORT: Commissioner Haggart, the motion carried.
D. PRESIDENT AND CEO'S REPORT:
LEPFA Board of CommisNxoners Meeting
Page 6
March 23, 2004
1. Union Report: No report.
2. Lansing City Market: Linda Frederickson reported that February rental revenue was up
slightly over the same period last year. Occupancy was about 50% which is up 4% over
last year and the Market Manager Mark Ter Haar anticipates that as spring/summer
approaches occupancy will increase by about 10% which is similar to previous years.
Market renovations include the completion of the move of two vendors for Schnitz Deli
which will begin construction in ten days, with a projected opening date of Tuesday, May
4. The walls and floor are being painted as we prepare for spring. There are three
potential new vendors, 2 will sell produce and one will sell bedding plants and they will
occupy the east side of the Market. Special events include the annual "Adopt a River
Program" and the Market will be working again with the "Neighborhoods in Bloom"
project and planning is underway for the Saturday, June 5 "Be a Tourist in Your Own
Town" event.
3. LEPFA Budget: Peter thanked the Board for their help and continued participation over
the past several weeks. He noted that he has spent a lot of time over the past week with
the Administration and some members of Council in regard to our issues and the
Administration has shared a number of facts and figures. The Mayor gave his budget
presentation to City Council last night, with the review process to begin today through
May 17. Peter reviewed the Mayor's highlights noting that the expansion is a priority as
stated in the budget presentation, and also included was Act 99 Financing for the ballroom
partition walls and carpet. The Mayor also addressed a number of our funding concerns
and offered a number of solutions and recommendations. Dialog with the Administration
and Council will continue and as such, he noted he will contact board members regarding
meetings with Council prior to our budget review in late April or May.
4. Oldsmobile Park: Peter reported that a meeting recently took place with the Lugnuts, the
City and General Motors to discuss the stadium name change. Discussion ensued on how
to keep the name "Oldsmobile" associated with stadium. Peter noted that there has been no
solidification on the name change for Oldsmobile Park and General Motors will come back
to us, the City and the Lugnuts with a time line.
Maintenance continues at the stadium in anticipation of the start of the season, with
Opening Day scheduled for Friday, April 16 versus South Bend. MSU will play Wayne
State on April 13 with another game scheduled for April 28 - MSU versus Eastern
Michigan.
5. Lansing Center: During the month of February we had 42 events equating to 68 event
days, attracting close to 13,500 people, for about 2,200 room nights, with an estimated
economic impact of approximately$760,000. In comparison to last year,event revenue is
down slightly, attendance is down, room nights are up, and economic impact is down.
Sales Update: To-date we have booked 34 Wally Byum food and beverage functions, in
addition to their large event being held here at the Lansing Center. A number of sub-
leases have been signed and returned, and we continue to monitor the city-wide event with
the City and the CVB.
LEPFA Board of Commissioners Meeting
Page 7
March 23, 2004
Peter also indicated we have 19-20 weddings booked for this fiscal year and in 2005 we
anticipated hosting 10-15% more(20-25)with 17 definates and 10 prospects. The increase
is attributed to changes made in our wedding package which made it more competitive and
we have been promoting the new wedding package at several bridal shows. Confirmations
for the month include the Michigan Numismatic Society for April 2005; and American
Waterworks has been issued contracts through 2008. Also a number of proposals have
been submitted for a variety of tradeshow events including: Michigan Fire Services, the
Episcopal Diocese of Michigan, Family Consumer Science Educators, and Michigan
Public Health Institute.
Facility Highlights: Highlights for the month include Michigan Council for Social Studies;
Michigan Floral; Delphi Matchmaker; Science Teachers; Michigan Association of
Broadcasters; Sportfishing Boat and Travel; the Ground Water Association; the MSU
Education forum which addressed Proposal A and included dignitaries; the Golf Show was
held this past weekend; we also hosted the "Youth Race Diversity Conference" which was
a first time event attracting 575 students from the tri-county area. We also hosted a
number of social receptions. Upcoming March Events include the Michigan Municipal
League, the Deer and Turkey Show and the Michigan Supreme Courts. April events
include the Book and Paper Show, Keepin It Real, Skills USA/VICA, and the Safety
Conference. Peter reminded the Board that January, February, March and April are our
busiest time periods.
6. LRCC Annual Dinner: Peter noted he attended the Chamber dinner and congratulated
Chairman James Butler and the Michigan Broadband Authority on their "Community
Service" award.
E. PERSONNEL COMMITTEE: No report.
F. LONG RANGE PLANNING COMMITTEE: Committee Chairman Charles Janssen
reported that a meeting took place with Joan Bauer, the Mayor, Pat Cook from the EDC,
and the CVB to discuss the planning process. The meeting went well, and it was resolved
that we would take a trip to Grand Rapids to view the DeVos Place and it was scheduled
for Friday, April 16. A meeting with Council was also discussed to update them, and the
meeting did take place and went well. We let them know we are moving ahead as we
continue to look at various funding sources. He noted that he is hopeful that as a result of
the upcoming trip and by working with the Mayor's Office that we will be able to set a
time line to propose to the group. Peter noted that the language in the Mayor's budget
presentation acknowledged that there are any number of design options and referenced that
it would be in place and that presentation could be made by the end of the 2005 fiscal year,
which gives us time to consider financing strategies with the state contacts.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Marian Bryant: Marian reminded those present that it is not too early to begin considering
volunteer opportunities for Common Ground.
B. Commissioner Charlotte Sinadinos: Commissioner Sinadinos asked if the Board can attend
a Lugnuts game together in the suite.
LEPFA Board of Commissioners Meeting
Page 8
March 23, 2004
C. Chairman James Butler: Chairman Butler noted that he had a concept for Linda called
"Meet Me at the City Market" and explained this would be an opportunity for all the
Board members to have the opportunity to go to the City Market, which he feels is a part
of the Board members responsibility as ambassadors. He asked Linda to invite Board
members to attend and rotate so that all of the Board members have the opportunity to
meet and to see what is happening as he does on a routine basis.
D. Commissioner Charles Janssen: Commissioner Janssen welcomed Darris to the Board
meeting and congratulated him on his wonderful achievements and encouraged him to keep
going and to plow ahead as a leader within his community. He congratulated him on a
great job.
E. Commissioner Ellen Jeffries: Commissioner Jeffries noted that she wished to echo
Commissioner Janssen's comments and welcomed Darris and she congratulated Chairman
Butler on his award. She asked if we could have one of our Board meetings at the Market
this summer.
F. Denise Wootton: Denise noted that she felt all of the ideas discussed were very interesting
ones and that any extra efforts to get people to the Market are welcome. Chairman Butler
noted he would also like to include the Mayor and Councilmembers to visit the Market as
well. Peter suggested conducting the Market gathering around the opening of the new deli.
G. Chairman James Butler: Chairman Butler noted that he did receive a call from Sharon
Peters last evening indicating that she would be unable to attend today's meeting. He
asked if there has been any update on Kris' Nicholoff's appointment to the LEPFA Board,
it was noted that the Committee has not met and there was no update at this time.
Chairman Butler noted that he also wished to congratulate the LEPFA staff on all of the
creative things that they have done and their outstanding achievement, and noted they
should be referenced in a presentation to City Council. He also congratulated staff on the
web site re-design to accommodate the visually impaired and noted that he would be
interested in seeing how it works. Linda noted the accolades truly go to Metasurge and
their staff for developing the site. Peter explained that there are various levels that are
accessible for meeting the needs of the visually handicapped and we did meet those
requirements;however, we felt we needed to do more than what is required by law and we
have received great feedback and have turned at least one critic into a supporter.
Commissioner Butler also thanked Darris for shadowing with him today and he noted that
it was a learning experience for both of them; he noted he would learn from Darris based
on his new and fresh ideas and noted that Darris would learn from him based on some of
his old and stale ideas. He noted that he was honored, and that Darris will be a part of the
leaders of tomorrow.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
LEPFA Board of Commissioners Meeting
Page 9
March 23, 2004
At 9:22 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, APRIL 27, 2004 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
APRIL 27, 2004
MINUTES
At 8:04 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,
Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Tim Haggart, Sharon Peters, and Jim Ruff(Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson,William Grove, Peter Sullivan,
and Patrick Talty - Lansing Entertainment and Public Facilities Authority. Margaret Vroman, City of
Lansing and Sandy Allen, Lansing City Council.
III. ESTABLISHMENT OF THE AGENDA: -
There were no changes to the agenda.
IV. PUBLIC COMMENT:
There were no comments.
V. APPROVAL OF THE MINUTES OF MARCH 23, 2004:
The minutes of March 23, 2004 were adopted as presented. MOTION: Commissioner Janssen
SECOND: Commissioner McGuire, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman James W. Butler III reported the following:
1. Grand Rapids Trip: Chairman Butler noted that the Board went to Grand Rapids on
the afternoon of April 16 to visit the DeVos Place with the Mayor, the City Council
President and Council members, and various LEPFA Board members. He commented that
the convention center is big, beautiful building with a lot of space. Chairman Butler
distributed a copy of the information sheet that was distributed on the trip(it compared the
DeVos Place and the Lansing Center), noting it is evident that we are out-gunned in terms
of exhibit, meeting and ballrooms space as well as the 12 loading docks that are inside the
building. He noted that the two individuals that lead the tour of the convention center did
an excellent job. They shared information on their funding sources, noting private
donations of$30,000,000.
2. Media Meeting: Chairman Butler reported that recently he and Commissioner Sharon
Peters met with the owner of 96.5 on March 26 regarding Common Ground. He noted
that they had a great meeting and they made a lot of progress and another meeting is
scheduled for May 6 to bring 96.5 on board, which will mean that we have all of the radio
stations on board for Common Ground 2004 and that is extremely important.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials - For the Period Ending March 31 2004: Committee Chairman
Sinadinos reported the following:
LEPFA Board of Commissioners Meeting
Page 2
April 27, 2004
a. Lansing City Market: Building Rental for the current period is $3,207compared to
$2,892 for the prior year and for year to date the total amount is $34,437 compared to
$35,848 for the prior year. Parking for year to date is $11,790 (for two quarters)
compared to $17,207 for last year.
Total Operating Revenues for year to date are$46,602, which is less than$53,613 for the
prior year. Under Operating Expenses- Salaries and Wages(there were three pay periods
during the month of March, which also impacts fringes) for the current period are $5,933
compared to $3,568 for the prior year and for year to date the amount is $36,294
compared to $32,325. Utilities for the current period are $3,529 compared to $3,110 for
the prior year and for year to date they are $33,885, which exceeds the prior year's
amount of $30,624. Maintenance of Facilities for year to date is $7,891 compared to
$5,157 for last year. Total Operating Expenses for the current period are $15,204
compared to $9,781 for the prior year and year to date they are $114,425 compared to
$100,887 for a net loss year to date of ($67,822) compared to the prior year's loss of
($47,274). After taking into consideration the City Contribution and Interest, we have a
year to date loss of($13,507) compared to the prior year's income of$7,211.
Total Cash for the current year is $5,871, which is down from the prior year's figure of
$60,243, and reflects the loan to the Lansing Center, which also affects Accounts
Receivable and Accounts Payable. Unreserved Equity for the current year is $159,035
compared to the prior year's amount of$165,553.
Under Budget versus Actual, Building Rental for the current period was better than
budget by $36 and for year to date it was better than budget by $403.00. Parking is less
than budget by ($5,428) due to the difference in the Parking Revenue which we are
slated to receive in April. Total Operating Revenues for year to date are $46,602,
which is less than what was budgeted by ($5,189); however, after taking into account
the Parking Revenue due us, we would be slightly ahead of budget in Revenue. Under
Operating Expenses - Salaries/Wages are better than budget by $4,148 for year to
date. Utilities are higher than budget by ($6,516). Insurance/Bonding for year to date
was more than budget by ($253.79). Total Operating Expenses for the current period
are $15,204 compared to the budgeted amount of$13,843, which are higher than
budget by ($1,361) and our year to date variance is better than budget by $2,781.
After taking into consideration the City Contribution and Interest, we are higher than
budget by ($4,458). Chairman Sinadinos indicated that if we had the Parking funds, we
would be ahead of budget by $880.
b. Oldsmobile Park: The Event Revenues for the current period are $13.33 (interest),
and the Event Expenses are $5, for an income of$8.33, which was applied to the Event
Development Fund. Under Operating Expenses - Salaries/Wages we had three pay
periods which are also reflected in Fringes and Related Costs.
Utilities for the current period are $3,707 compared to $3,282 for the prior year and
for year to date they are $48,407 compared to $43,183, which is up about $5,200.
Miscellaneous for the current period is $2,750 compared to the prior year's $100 and is
attributed to the loss of a suite partner. The Total Operating Loss for the current period
is ($20,841) compared to the prior year's current loss of($17,739) and the year to date
loss is ($207,280) compared to the prior year's loss of($179,080).
LEPFA Board of Commissioners Meeting
Page 3
April 27, 2004
After taking into account the City Contribution and Interest, we have a year to date loss
of($26,538) compared to the prior year's income of$603. Total Cash for the current
year is $64,520, which is down from the prior year's amount of$72,905. The Net
Event Development Fund is up $54,257 compared to the prior year's amount of
$52,620. Accounts Receivable are $114,739 compared to $55,544 for the prior year
(the amount reflects the loan to the Lansing Center).Unreserved Equity for the current
year is $73,787 compared to $101,319 for the prior year.
Under Budget versus Actual - Salaries and Wages for year to date are better than
budget by $3,433. Utilities for year to date were higher than budget by ($4,740).
Insurance/Bonding is higher than budget by ($5,030). Total Operating Expenses for
the current period are better than'budget by $792 and for year to date we are better
than budget by $801.72. After taking into account the City Contribution and Interest,
we are higher than budget for year to date by ($778.).
c. Lansing Center: Total Operating Revenues are$643,609 compared to$659,407 for the
prior year. Building Rental for the current period is $150,130, which exceeds the prior
year's current period amount of$141,993 and our year to date Building Rental is$742,116
compared to last year's amount of$794,287. Food and Beverage revenues for the current
period are up at$359,273 compared to$338,060 for the prior year, and year to date Food
and Beverage is $1,947,000 compared to $2,179,255 for last year. Equipment Rental for
the current period is $67,271 compared to $64,735 last year and for year to date the
amount is $487,905, which exceeds the prior year's amount of$419,377. Labor Service
for year to date is $136,800 compared to $187,319 for last year. Total Operating
Revenues for year to date are $3,551,919 compared to $3,819,274 for last year.
Under Operating Expenses - Salaries/Wages are up (there were three pay periods) for
year to date at$1,271,275 compared to$1,242,604. Fringes and Related Costs for year
to date are $423,369 compared to the prior year's figure of$382,103. Utilities for the
current period are $52,274, which is less than the prior year's amount of$57,833. Year
to date Utilities are$419,021compared to the prior year's amount of$446,882. Food and
Beverage expenses for the current period are$189,077 compared to$175,358 for the prior
year and year to date Food and Beverage expense is$1,233,788 compared to$1,312,467.
Total Operating Expenses for the current period are $565,236 compared to $562,533 for
the prior year and the year to date Total Operating Expenses are$4,117,367 compared to
the previous year's amount of$4,140,000 for a loss of($565,447) compared to the prior
year's loss of ($321,212). After taking into consideration the City Contribution and
Interest we have a year to date loss of($126,998) compared to the prior year's income of
$170,548.
After totaling together Cash and the Restricted Assets, we have $406,491 for the current
year compared to the prior year's amount of $566,167. Under Liabilities - Unearned
Advanced Rent, which is an indicator of future business, is up at $355,990 compared to
the prior year's $292,519. Unreserved Equity for the current year is $299,513 compared
to $621,606 for the prior year.
Under Budget versus Actual - Building Rental for the current period is better than budget
by $3,227; for year to date the amount is less than budget by ($36,885).
LEPFA Board of Commissioners Meeting
Page 4
April 27, 2004
Food and Beverage for the current period is better than budget by$24,271 and for year to
date it is less than budget by($58,422). Equipment Rental is better than budget for year to
date by $145,167. Tradeshow Utilities are better than budget by $44,825 and Labor
Service is better than budget by$21,272 and these are all a reflection of the mix of events.
Total Operating Revenues for the current period are better than budget by$65,826 and for
year to date the figure is better than budget by $139,013.
Under Operating Expenses- Salaries/Wages are better than budget by$43.99 for year to
date. Fringes/Related Costs exceed the budget by ($24,337), which is due primarily to
medical insurance costs. Utilities for the current period are higher than budget by
($3,855), but we are better than budget for year to date by $16,749. Food and Beverage
expense for year to date is better than budget by $18,167. Total Operating Expenses for
the current period are $565,236 compared to the budgeted amount of$522,668, which is
higher than the budget by$42,568, and year to date the amount is$4,117,367 compared to
the budgeted amount of($3,992,504) which is higher than budget by ($124,863). After
netting revenues against expenses, we are better than budget by$14,150. After taking into
account the City Contribution and Interest, we have a variance better than budget of
$35,399. Due to the property insurance change and under funding by the City, the amount
should be $71,518 higher than budget.
Chairman Butler questioned the difference between last year and this year for Lansing
Center Unreserved Equity amount on page two. Marian explained that on page one the
Net Income for last year was $170,718, which added to our Unreserved Equity this year
equates to a loss of($126,998), which is subtracted from the Unreserved Equity. He also
questioned the Professional Fees and Marian explained the difference is due to computer
fees and we are now spending less than we did for the same time last year. Peter noted the
spending is associated with upgrades to the network, in order to get us to where we should
be so that we were able to update. Last year we also used temporary services due to staff
vacancies. Patrick explained the network upgrades (i.e. trainings, computer upgrades,
etc.). Councilmember Sandy Allen asked if the upgrades were software or hardware.
Patrick explained that it was a mix of both computer and software upgrades to coincide
with our updated booking system. Councilmember Allen asked what was done with the
computers when updated, and Peter indicated that they were recycled amongst the staff and
retired computers(6 or 7 computers) are going to the City's Recycling Center on May 15.
Commissioner Janssen questioned the Operating Transfer on page one. Marian explained
that it was monies from the City to help offset the additional capital costs that we had
incurred over the years. Chairman Butler asked about the Events amount of $66,000.
Marian noted that it had to do with the expenses that we incurred for "Cool Cities" and the
Governor's Conference; however the revenues offset them (Equipment Rental, Labor
Services and Tradeshow Utilities).
Finance 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,
2004 be received as published, and further that the monthly expenses for each entity be
approved. SUPPORT: Commissioner Janssen, the motion carried.
C. PRESIDENT AND CEO'S REPORT:
LEPFA Board of Commissioners Meeting
Page 5
April 27, 2004
1. Union Report: Patrick Talty noted that the Facility Worker, Maintenance Workers, and
Forepeople removed themselves from IATSE and formed their own Union. They have now
joined the UAW, as well as the Food and Beverage Workers and will be represented by
UAW Local 2256. Patrick noted we have yet to begin contract negotiations with the Food
and Beverage workers. The Facility Workers, Maintenance Workers, and Forepeople are
working under a contract that is in effect until June 30, 2005.
2. Lansing City Market: Linda Frederickson reported March Rent Revenue was up for the
month and is slightly behind for year to date. Occupancy was up for March and the
summer season forecast looks good for revenue and occupancy. Mark Ter Haar is
currently talking to four potential new vendors for the east side of the market, two are
produce vendors, one is a bedding plant vendor and the fourth will provide cut flowers.
Schnitz Deli opens on Tuesday, May 4, and Linda distributed invitations to those present,
and noted that the ribbon cutting is at 10:30 a.m. with the Open House from 1:00 p.m.
until 5:00 p.m. Linda also noted that Larry Molnar, the Director of Economic
Development Administration from the University of Michigan's Business School in the
Business and Industrial Assistance Division, approached Peter and Linda with a proposal
for a Market Feasibility Analysis for the City Market and a Business and Operating Plan.
We will host a meeting this Thursday at 8:00 a.m. at the Lansing Center for potential
stake holders who may be involved in the project including the USDA, Michigan Farm
Bureau, Michigan State University and the University of Michigan to present the proposal
for the feasibility study and the action plan. Peter noted we were referred to this group
by the Mayor's Office and they are the same folks that helped the previous administration
to secure funding for river bank improvements, and we have been meeting with them for
about six months. They will be seeking funding for the project and the project will
ultimately become a project of the Business School. Councilmember Allen asked how
much it will cost us, and Peter noted they will seek funding and there is no expense to us.
Chairman Butler asked if the Mayor was invited and if he will attend because he has been
a strong advocate of the Market and it was noted that Dave Wiener will attend on the
Mayor's behalf. Commissioner Janssen asked if the analysis will be of the Market as it
exists currently or will they look at it out of the box in terms of what is best for an urban
City Market. Linda noted the proposal that they have submitted looks at the Market as it
currently operates at its current location. She noted further that their premise is to
reconnect Michigan growers and the agricultural farmers in the region with the urban city
markets and will consider various funding sources/organizations in order to bring the city
markets into the 2151 Century. They will conduct a feasibility study first and then develop
an operating plan. Commissioner Janssen asked if the study considered how much of the
success of the Market is based on natural foot traffic and destination traffic while
considering the central business district and the state office buildings and downtown
workers who would be willing to walk; i.e. is the location one of the Markets biggest
factors for its success.
Commissioner Butler noted that he hoped the study would consider Commissioner
Janssen's questions as well as the impact of marketing efforts and the sentimental value and
political ramifications as well. Copies of Chairman Butler's letter/invitation to the
informational meeting were distributed.
LEPFA Board of Commissioners Meeting
Page 6
April 27, 2004
3. "Keepin It Real:" Peter noted that the facts as we know them are that we had "Keepin It
Real" here on the evening of the shooting; the event is comprised of two events, the first
is a talent show (similar to "Taste of Blackness"), including a fashion show, and a step
show, and this year a youth talent show component. The second part of the event is a
dance that took place from 11:00 p.m. until 2:00 a.m. and there were no issues or
incidents inside the building. We were told that it was one of the smoothest running
events that we have ever had and that exiting was very quick and smooth. The event
ended at 2:00 a.m. and people were out of the building by about 2:15 a.m. and at about
2:35 a.m. shots rang out in Lot 15 and one person was killed (shot close range in the
heart)and three other people were injured. The police don't know if there was more than
one shooter, and they don't know who the shooter was, but there is speculation that he
did not attend the event; the people that were shot did attend the event. Peter noted that it
was a very tragic and unfortunate incident and that the media covered it fairly sensibly.
He noted that in our opinion the two events were mutually exclusive and that we had no
incidents. Chairman Butler commended Peter for his handling of the situation, noting he
had a call first thing the next morning, and he was in a defensible position should
questions be asked, which was the case, and he was able to state that the incident did not
take place at the Lansing Center property, that there were no incidents within the Lansing
Center and where the shooting went down was not in relation to the Lansing Center and it
happened to go down in the area and was not necessarily related to the Lansing Center.
Chairman Butler noted he was asked if there was a fight that extended from the Lansing
Center and if the argument carried over to the parking lot. Commissioner McGuire noted
that had that been the case, he is able to think of many places in Lansing that people have
been shot and he was unclear as to how that reflects on the Center. Chairman Butler
clarified that the question asked was if the shooting was due to the activity that was held;
or Commissioner McGuire stated, "Or was it due to the title of the event, `A Taste of
Blackness' which immediately opens the question when they say, `Taste of Blackness'
then there is a problem and it is assumed then that we should not be `Tasting Blackness' if
that happened at the Lansing Center." Commissioner Butler noted that in the comments
made to the media, that the Mayor was very supportive and that there has been ongoing
dialog. Peter commented that the event is alcohol free and always has been; everyone is
searched for contraband, which is required by the promoter; and there is a security plan
that is reviewed, and we meet with the Lansing Police Department as well. Peter also
noted that there were 30 officers on the streets that evening including Lot 15 and that the
media tried to form an association in order to get people to draw conclusions.
Commissioner Kris Nicholoff drew the analogy of the people outside Tiger Stadium
storming the gates after the final out of game 7 of the World Series, which lead to the 1984
riots. He noted that this event reminds him of the World Series in that something is a
magnet, and the question is why is it a magnet and what is it drawing, and that this is the
perception problem. He noted regardless of the location, the fact is that we have a
perception problem based on the media and that the event is a magnet, because there are
people who are coming here who may have not been in the event, but there were also
people who were in the event involved. He further asked what are people doing here at
that time that are not in the event noting that he feels there is something that is drawing
them, and his point is that regardless of what we say, there is something that is drawing
them here. Commissioner Nicholoff noted that the people that are attending and are
loitering are a LPD concern because they have the responsibility to protect the streets.
LEPFA Board of Commissioners Meeting
Page 7
April 27, 2004
There were 30 officers here, and it sounds like we had the security addressed and the
promoter brought his own security who were absolutely frightening and intimidating,
which is good. He suggested that maybe the two security groups need to meet and the
promoter and the police need to extend their security further. Commissioner Nicholoff
noted that he sensed there is a "they did it, it happened over there" going on and he was
unclear as what this would solve perceptionally. He reiterated his point that there is some
magnet, and it needs to be dealt with (the security groups working together or not), and
while it can happen anywhere, the bottom line is that we have a perception problem and
that is what alarms him. He noted because we fight so hard to get people here by telling
them that it is a safe and fun place and we all know that it is; however, he noted that what
he heard about that evening(he was out of town) is that there isn't anyone in the room that
would have wanted to be outside the Lansing Center on that evening and that's what needs
to be addressed whether it means mounted police, bright lights, or special ticketing, he
doesn't know that this is going to work any longer and we need to step-up and say that
there is a magnet here, and how do we deal with it? He noted that he didn't feel we should
take any blame because the promoter had good security, there was no alcohol, but there is
a perception problem. Commissioner McGuire noted that part of the perception problem
could be the 30 police officers. Chairman Butler thanked Commissioner Nicholoff for his
comments.
Chairman Butler noted that he believed the Mayor, Willard Walker and Peter are
scheduled to meet to discuss the event, and to come up with a plan and make
recommendations. Commissioner Nicholoff noted that is his main goal in being able to
indicate that the issue is being addressed and while they realize that this could have
occurred at any type of event, they are working on a solution, and this is the reason for his
comments.
Peter indicated that he wouldn't describe the promoter's security as "frightening," and
noted that they're efficient and the Police Department is ecstatic that they were here
because they do work the Detroit area clubs and take quite a burden off the local Police
Department. He noted that meetings took place with the Security Company, the Police and
the Building with the Promoter to "tweak the plan." Peter also noted that if there is a
perception problem, and he understands what Commissioner Nicholoff is saying, it is
unfortunate from his point of view and undoubtedly there must be folks that are frightened
to stand on the street, but he and the staff are not one of those folks. He suggested that
when 2,500 youth exit the building at 2:10 a.m.; maybe it makes people nervous, and
suggested that perhaps 70,000 people exiting Spartan Stadium would frighten some older
folks as well. He commented further that he gets "antsy" when people use the word
"perception" and when everyone dances around the issue. He stated that he and the
Lansing Center staff work very hard to bring different cultural and ethnic based events to
the building, so when people use the word "perception" he gets "uppity" too. He
explained that the fact of the matter is that the media tried to tie it as a black/white issue.
Peter noted he was on the phone early in the morning with James, the Mayor, Joan Bauer
and the Chief of Police and everyone was supportive because they know of the homework
that we have done to make sure there is a lot of communication, and we go to great lengths
to call and make certain the businesses in the immediate area know when we have late
events. Commissioner Nicholoff explained that he used the word "frightening" in a
complimentary manner and will repeat it.
LEPFA Board of Commissioners Meeting
Page 8
April 27, 2004
As far as it being a race issue, he noted that he believed everyone in the room knows of his
work with every walk of life within the community and it always be that way, and he noted
that he doesn't need to defend his past and his present and he noted that he won't. He also
commented that yes we have a perception problem, whatever that perception is i.e. danger,
crowds out of control, whatever it maybe, we have it, like it, don't and his only point is
that if we can start broadcasting and make sure that people know that security was here,
that things were under control, that there was no alcohol served, and that the promoter did
a good job; we need to get the information out because the perception is that none of those
things were the case, the perception is that we had some out of control party and we didn't
give a darn. Commissioner McGuire suggested that we ought to forget it. Commissioner
Nicholoff noted that is one way to address it, but it will come back. Peter commented that
there is a positive letter on this issue in the paper today from an individual who worked
production on the event. Councilmember Sandy Allen noted she also asked the Police
Chief to write a "Point of View" column defending the Police Department and the Lansing
Center. Commissioner Nicholoff noted that was what he was asking for.
4. Oldsmobile Park: Peter reported that Opening Day was April 16, and the Lugnuts won in a
thrilling ninth inning victory. They had a huge walk up of 4000 and should have had
more than two windows open; some folks weren't able to get into the game until the fourth
inning. The Mayor threw out the first pitch and he was thrilled. Chairman Butler asked
how the Lugnuts have addressed the lines on Opening Day, and Peter noted that they have
indicated that the presales were not that good, so they thought they were appropriately
staffed. The fountain will be up and running on Memorial Day. MSU plays Eastern
Michigan tomorrow. Since our last staff meeting we had a press conference for our latest
initiative, "Home Run for Hope," which is a wonderful new High School baseball
tournament that we have created and have also enlisted the support of the Hope
Scholarship Fund/Mark Alley? Proceeds will benefit the Lansing High Schools
(Eastern, Everett and Sexton) and Detroit Southwestern. We have been trying to put this
together for years, and when we realized that the Lansing High Schools have never played
in Oldsmobile Park, we thought it was a travesty and the concept was a brainstorm of
Patrick. Linda developed the name "Homerun for Hope" and we contacted the Chief, the
Mayor and Dr. Banks and have had a lot of positive press for all of the entities and best of
all the kids will now compete annually in Oldsmobile Park. Commissioner Nicholoff noted
that he saw the press coverage and noted that it was very positive. Peter reported that there
is no risk for the schools, and there is a "Spirit Award" that we created where the schools
get 50% of the money and the other 50% goes to the Hope Scholarship and the winner
receives the "Mayor's Cup." Also, we have a number of sponsors including HNTB,
Arialink and Smith Barney. The sponsorship amounts vary and the people want to be
involved, and it is a big deal for the kids. Commissioner Nicholoff asked for sponsorship
information.
At 9:15 a.m. Sandy Allen and Margaret Vroman exited the meeting.
5. Lansing Center: During the month of February we had 42 events equating to 68 event
days, attracting close to 13,500 people, for about 2,200 room nights, with an estimated
economic impact of approximately$760,000. In comparison to last year, event revenue is
down slightly, attendance is down, room nights are up, and economic impact is up, all
which illustrates the mix of events.
LEPFA Board of Commissioners Meeting
Page 9
April 27, 2004
Sales Update: To-date we have booked 32 Wally Byum food and beverage functions. We
have 21 weddings booked for 2004 and are confident that we will exceed that amount due
to changes in the wedding package. The Great Lakes Feis Event (Irish Dancing) has
solidified space for 2005 and has requested contracts for three years. We are working on
the Great Lakes Pet Expo called "Barkapalooza" for September 2004. The ACLU of
Michigan has accepted our proposal for April 2005; contracts have been issued for the
Michigan Association of School Boards Symposium for March 2005 and for the Michigan
Association of School Boards Legislative Conference.
Facility Highlights: The summary was distributed for review. Peter noted March, as was
evidenced by the monthly financials, was a very busy and a very good month, and was the
second highest grossing month in our history.
6. Common Ground: Peter reviewed the talent that has been announced to-date as follows:
ZZ Top, REO, Crosby Stills and Nash, Montgomery Gentry, and Alice Cooper. Over the
next two to three weeks we are hoping to have a majority of the talent solidified because
the process is slower this year due to the lack of talent touring. Operationally, we are
beginning to gear up, and we have had a number of meetings with security companies, the
City Departments, and the Fire Department. We recently met with General Motors
regarding ticketing and we believe sponsorship dollars should be up. He noted everyone
should have received a copy of the newsletter we started this year and that we are
always looking for volunteers and we would love to have anyone that is interested in
working a 4 hour shift, currently we have 175 to 200 volunteers which is ahead of last
year. The momentum continues to build.
7. Wireless Press Conference: We held a press conference announcing that the Lansing
Center is now a totally wireless facility. We are now a hot facility and an WiFi facility,
which means you can walk into our building with your laptop and get internet service.
We call it the "Arialzone" and have received a lot of positive media coverage on this
announcement and it was even covered in Detroit. Cobo currently only has a few meeting
rooms that are wireless, not the entire facility, and Grand Rapids is not wireless. We are
only one of a handful of facilities in the nation that are wireless. The initiative took place
with Arialink and is a nice marriage.
8. Noise Article: Peter indicated that there may be an article in the next week or two
regarding the Lansing Center, which started as an entertainment article and morphed into
expansion. Matt Miller, who also interviewed the Mayor, asked for financial information
to tie into pre and post 9/11 as well.
9. Budget Hearing: The LEPFA budget hearing is scheduled for May 6 at 5:00 p.m. and
Peter asked Board members to attend if they can because it is a tight budget year, and the
Board's support shows a unified front, and has been very impressive in the past, and
illustrates to theCouncil that we have an informed Board and that they care.
10. Commissioner Charlie Janssen: Peter congratulated Commissioner Charles Janssen on his
appointment to the Executive Committee of Foster Swift.
11. Commissioner Cyril and Mary Jane McGuire's Anniversary: Peter asked everyone to join
him in commending Cyril and Mary Jane McGuire on their 50`h Wedding Anniversary.
LEPFA Board of Commissioners Meeting
Page 10
April 27, 2004
12. USA Today Article: Peter distributed copies of"Letters to the Editor" from the Monday,
April 5 edition of"USA Today" entitled, Mass Marketed Teeny Bopper Acts Pale Beside
Old Bands. He noted the letters illustrates the difficulty that he and Kevin have when
booking acts for Common Ground and he felt good when he read this because it illustrates
the difficulty in determining what will sell.
At 9:30 a.m. Commissioner Ellen Jeffries exited the meeting.
D. PERSONNEL COMMITTEE: Committee Chairman McGuire noted that he has missed the
past two Board meetings, but will try to put something together soon and apologized for
missing the meetings.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Charles Janssen noted that
we will hold an expansion follow up meeting soon. He thanked Peter and noted that he felt the
trip to Grand Rapids was extremely helpful and that he has just returned from a weekend in
Grand Rapids. While he was there he noted that he observed that "Economic Impact" is their
mantra, and you hear it repeatedly and everything is connected by walkway. He also
commented that we need to decide what our vision is and coordinate not only the Lansing
Center expansion, but the Board of Water and Light building, etc. so that it is planned out and
well coordinated. He also commented on their moving the Police Station from a riverfront
location to an undesirable area to free up prime space and that he was also intrigued by the fact
that the Performing Arts Center was attached to the Convention Center and that it is all tied
together. He thanked Peter for setting the trip up and everyone for attending.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Marian Bryant: Marian reminded everyone that we can never have enough volunteers,
particularly in the script area, and that she would be happy to talk to any one about
volunteer opportunities.
B. Commissioner Charlotte Sinadinos: Commissioner Sinadinos noted as a volunteer that it is
a really good experience and is a lot of fun. She welcomed Kris to the Board.
C. Commissioner Cyril McGuire: Commissioner McGuire welcomed Kris to the Board. He
noted in his discussions (on the return trip from Grand Rapids) with the Mayor that they
were amazed at how easy it was for the folks in Grand Rapids to get funding and that we
are not used to that type of a process and we have our work cut out for us. He noted GM
is the source we go to and it as our job to motivate the others. Chairman Butler noted that
he agreed with Commissioner McGuire and it is his feeling that many people within the
community do not step-up. He noted that in Grand Rapids they were able to secure money
from the DeVos', the Van Andels, etc., and it is a part of their culture to give back to their
community and we have had people that take from our community's progress and never
give back in the same magnitude. We don't have the Kellogg's or the Van Andels or
anyone to give large of sums of money to promote culture in Lansing, even though we
have people that can.
LEPFA Board of Commissioners Meeting
Page 11
April 27, 2004
D. Commissioner Denise Wootton: Commissioner Wootton noted that it was a very eye
opening trip, and the facility is huge, but she was not impressed with the atmosphere. She
also noted that the issue of the money will be the biggest thing we have to tackle. The
other issue discussed was fundraising and she noted that you almost have to have someone
in that role full-time in order to get people on board to make them feel as though they are a
part of the solution to the problem. She noted that it's a big issue and will take a lot of
time. Also, Chairman Butler asked her to report that she has joined an advertising
specialty/awards company called Jamie Rogers Enterprises as their Office Manager.
E. Commissioner Kris Nicholoff: Commissioner Nicholoff thanked those who encouraged
Councilmembers to support the Mayor's appointment of him to the Board. He noted that
he is a Commissioner that will speak his peace here, and not outside of the room. He
noted he hears things outside, and tells folks that he will ask questions at Board meetings
so that he has an answer. In regard to the shooting, he noted that he will inform
individual(s) that the Board answered his questions to his comfort level, and that they will
deal with whatever took place and whatever takes place in the future on a per case basis in
a professional manner; which is why he does things as he does them and is how he works
as a Board member. Chairman Butler welcomed Commissioner Nicholoff noting that he is
a pleasant addition to our Board and noted that we appreciate his feedback and that he
states his mind. Chairman Butler asked that he continue to be vocal because that is the way
we grow and garner additional ideas, and discussion puts us in a defensible position and as
Board members we are ambassadors, so in turn there are times when we have to take it
beyond the Board to sound off the real facts and to defend our honor in reference to
whatever is said as long as we have additional information.
F. Peter Sullivan: Peter welcomed Commissioner Kris Nicholoff.
G. Chairman James Butler: Chairman Butler reminded everyone of the Lansing City Market
Proposed Project Plan meeting on April 29 at 8:00 a.m. He also thanked the Board for
making Darris Lee (the Cranbrook student) feel comfortable and he noted that Darris
commented on the positive comments he received and that he was pleased to have had the
exposure. He reminded Linda of the "Meet Me at the Market" program. He also noted
that he is happy to announce that the Personnel Committee will be meeting between now
and the next Board meeting and that he is also happy to note that the Long Range
Committee will be meeting before the next Board meeting as well. He encouraged people
to attend the Project Hope Baseball game. Chairman Butler commended staff for sending
announcements on items such as the press conference for the Hope Scholarship game and
the announcement for the technology press conference, which is very important because
when dealing with technology, everyone is doing it, and the Lansing,Center is a now a hot
spot, which says that they can bring their technology here and it is a revenue producing
venture as well. He also recommended that the Lansing Center Highlights information
sheet that is distributed at meetings included a Common Ground artist update at the
bottom. Chairman Butler welcomed Commissioner Nicholoff.
VIII. OLD BUSINESS:
No report.
LEPFA Board of Commissioners Meeting
Page 12
April 27, 2004
IX. NEW BUSINESS:
No report.
At 9:50 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, MAY 25,2004 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 25, 2004
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, and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: Kris Nicholoff, Glenn Kirk,Jim Ruff(Ex-Officio)and Denise Wootton.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Peter Sullivan, and Patrick Talty
- Lansing Entertainment and Public Facilities Authority. Harold Leeman and Margaret Vroman, City of
Lansing.
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda.
IV. PUBLIC COMMENT:
There were no comments.
V. APPROVAL OF THE MINUTES OF APRIL 27, 2004:
The minutes of April 27, 2004 were adopted as presented. MOTION: Commissioner.Janssen
SECOND: Commissioner Sinadinos, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman James W. Butler III reported the following:
1. Lansing City Market Project Plan: Chairman Butler noted that he attended the meeting
on April 29 which described a process to bring the Market into new opportunity and
growth. Over twenty people attended and he noted that the conversation was extremely
lively and that the individuals that attended the meeting appeared to be very committed to
looking at any ways to help the City Market grow and have opportunity. He noted there
were two presenters, the first was Jim Bingham from MSU and Larry Molnar from UM
and both are experts in their own arena and are committed to helping us come up with a
plan. Chairman Butler noted that he felt it was a very progressive meeting and he met
some very interesting people as relates to the City Market. Linda noted that we
continue to meet and move forward with the University of Michigan as we look at the next
steps for bringing the study to fruition.
2. Schnitz Deli Ribbon Cutting: Chairman Butler reported that on May 4 there was a ribbon
cutting for the deli and it was attended by the Mayor and other city officials. Chair Butler
noted that the deli is owned by Dominic Carbone and that he has brought 25 of his staff
members from Broadband to the Deli and everything(they phoned in the order)was ready
to go when they arrived.
3. Budget Hearing: Chairman Butler noted that on May 6 the LEPFA Budget hearing took
place with City Council and that he appreciated the attendance of all of the Board members
that were able to attend.
LEPFA Board of Commissioners Meeting
Page 2
May 25, 2004
He also commented that the staff did a great job and that they were extremely well-
prepared and that all of the questions that were asked were answered succinctly and
that he had a good feeling when they left that it was a quality job. The budget was
approved as presented and the Council seemed to be very intune as was noted by their
comments. He noted that he was proud of everyone for doing a great job.
4. Meeting with Helena DuBois: Chairman Butler reported that Peter, Kevin, and Chairman
Butler (Sharon Peters was scheduled to be there but she had a conflict) met with Helena
DuBois of 96.5 radio station. He indicated that it was a good meeting, progress was
made, and both sides came to the table with a posture of accommodation and he was
pleased with the outcome. Peter and Kevin were scheduled to meet with her again and
Peter noted there has been a fair amount of dialog since then.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials - For the Period Ending April 30, 2004: Committee Chairman
Sinadinos reported the following:
a. Lansing City Market: Building Rental for year to date is$37,131 compared to$38,929
for the prior year and the current period is $2,694 compared to $3,081. Parking for the
quarter was received in the amount of $5,339 and the total parking for year to date is
$17,129 compared to the prior year's$22,517. After researching the parking revenue, it
was noted that for the first quarter last year we received $11,000 in parking and is the
difference in the year to date amount.
Total Operating Revenues for the current period are $8,068 compared to $8,426 and for
year to date the amount is $54,670 compared to $62,039 for last year, which is down
about$7,300. Under Operating Expenses — Salaries and Wages for the current year to
date are$40,164 compared to$35,875 for the prior. Utilities for year to date are$36,693,
which exceeds the prior year's amount of$33,285. Supplies and Materials for year to date
are $2,970 compared to $2,145 for the prior year. Professional Services for the current
period are $1,677 which was comprised of labor to get the food vendor in operation and
legal fees. Total Operating Expenses for the current period are $10,775 compared to
$9,038 for the prior year and year to date they are$125,200 compared to$109,925. After
taking into consideration the City Contribution and Interest, we have a year to date loss of
($11,131) compared to the prior year's income of$11,701.
Total Cash for the current year is $9,576, which is down from the prior year's figure of
$59,415, and reflects the loan to the Lansing Center. Unreserved Equity for the current
year is $161,412 compared to the prior year's amount of$170,044.
At 8:12 a.m. Commissioner Sharon Peters and Harold Leeman entered the meeting.
Under Budget versus Actual, Building Rental for the current period is less than budget
by ($1,544). Parking is less than budget for the current period by ($2,178) and for year
to date it was less than budget by ($7,606). Total Operating Revenues for year to date
are $54,670 compared to the budgeted amount of$63,607 which is less than budget by
($8,936) which is due to parking.
LEPFA Board of Commissioners Meeting
Page 3
May 25, 2004
Under Operating Expenses - Salaries/Wages are better than budget by $4,503 for year
to date. Utilities are higher than budget by ($6,283). Total Operating Expenses for the
current period are better than budget by $1,750 and for year to date they are better than
budget by $4,532. Netting expenses against revenues for year to date, we are higher
than budget by ($4,404). After taking into consideration the City Contribution and
Interest, we are higher than budget by ($6,688).
b. Oldsmobile Park: The Event Revenues for the current period are $4,043, and the
Event Expenses are $5,056 for a net loss of$1,012 which was applied to the Event
Development Fund. Under Operating Expenses - Salaries/Wages for year to date are
$45,223 which is similar to the prior year's year to date of$44,940.
Utilities for year to date are $52,562 and for the prior year they are $48,199 which is
up by about$4,300. Insurance and Bonding for year to date is $52,740 which exceeds
the prior year's amount of$44,564. Total Operating Expenses for the current period
are $23,479 compared to $21,106 for the prior year and for year to date the amount is
$230,759 compared to $200,187. After adding in the City Contribution and Interest we
have a loss of($29,958) for year to date, compared to the prior year's loss of($565).
Total Cash for the current year is $71,834 which is down from the prior year's amount
of$90,636. The Net Event Development Fund is $53,244 compared to the prior year's
amount of$52,238. Unreserved Equity for the current year is $69,354 compared to
$99,769 for the prior year.
Under Budget versus Actual - Salaries and Wages for year to date are better than
budget by $2,269. Utilities for year to date were higher than budget by ($4,516).
Insurance/Bonding is higher than budget by ($5,240). Total Operating Expenses for
the current period were ($23,479) compared to the budgeted amount of($20,134) and
for year to date the figure is $230,759 compared to the budgeted amount of$228,216.
After taking into account the City Contribution and Interest, we are higher than budget
for year to date by ($4,322.).
c. Lansing Center: Total Operating Revenues for the current period are $549,381 which
exceeds the prior year's amount of$449,145. Building Rental for the current period is
$107, 453 which exceeds the prior year's current period amount of$103,010 and the year
to date Building Rental is $849,569 compared to last year's amount of$897,297. Food
and Beverage for the current period is $297,459 compared to $243,589 and the year to
date amount is $2,245,048, which is less than the prior year's amount of $2,422,844.
Equipment Rental for year to date is up at$563,309 compared to the prior year's amount
of $476,016. Tradeshow Utilities are up for year to date at $171,538 compared to
$153,759 for the prior year. Labor Service is down for year to date at$153,676 compared
to$200,985 for the prior year. Total Operating Revenues for year to date are$4,101,300
compared to $4,268,419 for last year.
Under Operating Expenses- Salaries/Wages for year to date are$1,413,194 compared to
$1,380,217. Fringes and Related Costs for year to date are $467,528. Utilities for the
year to date are$475,677 compared to the prior year's amount of$507,353. Maintenance
of Facilities for the current period is $7,451 which was attributed to a repair to the dock
doors and year to date the figure is $48,979 which exceeds the prior year's amount of
LEPFA Board of Commissioners Meeting
Page 4
May 25, 2004
$46,066. Event expenses which were attributed to "Keeping It Real" are $30,858
compared to $18,217 or last year and the year to date figures are $140,101 compared to
$94,828 for the prior year. Food and Beverage expense for year to date are $1,385,832
compared to $1,461,000. After netting revenues against expenses for the current period
we have an income of$46,993 compared to last year's loss of($34,061); the loss for
year to date is ($518,453) compared to ($355,274) for last year. After adding in the City
Contribution and Interest we have a year to date loss of($48,550) compared to the prior
year's income of$187,624.
After totaling together Cash and the Restricted Assets, we have $198,825 for the current
year compared to the prior year's amount of $372,605. Under Liabilities - Unearned
Advanced Rent, which is an indicator of future business, for the current year is $329,990
compared to the prior year's $336,736. Unreserved Equity for the current year is
$377,961 compared to $638,682 for the prior year.
Under Budget versus Actual-Building Rental for the current period was better than budget
by $2,910; for year to date the amount is less than budget by ($33,975). Food and
Beverage for the current period is better than budget by$42,457 and for year to date it is
less than budget by($15,964). Equipment Rental is better than budget for year to date by
$152,834. Tradeshow Utilities are better than budget by $52,222 and Labor Service is
better than budget by $20,810 and these are all a reflection of the mix of events. Total
Operating Revenues for the current period are better than budget for the current period by
$69,387 and for year to date the figure is better than budget by $208,400.
Under Operating Expenses- Salaries/Wages are better than budget by$4,246 for year to
date. Fringes/Related Costs exceed the budget by ($24,561), which is due primarily to
medical insurance costs. Utilities for year to date are better than budget by $8,512.
Professional Services are higher than budget for year to date ($57,199) due to temporary
staffing for two vacant positions and for computer upgrading. Food and Beverage expense
for the current period is higher than budget($9,687) and for year to date it is better than
budget by$8,480. Total Operating Expenses for the current period are higher than budget
by($40,237)and for year to date they are higher than budget by($165,100). After netting
revenues against expenses, we are better than budget by $43,300. After taking into
account the variance on the City Contribution and Interest, and backing out the
depreciation, we are better than budget by$19,442, and after taking into account the under
funding by the City of$64,000; the bottom line figure would be higher than budget by
$44,558.
Finance 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,
2004 be received as published, and further that the monthly expenses for each entity be
approved. SUPPORT: Commissioner Peters, the motion carried.
C. PRESIDENT AND CEO'S REPORT:
1. Union Report: Patrick Talty noted that the first negotiation session with the Food and
Beverage workers is scheduled for June 1. Due to the MERC ruling that the Stagehands
cannot combine with another unit, negotiations will begin within the next couple of
months.
LEPFA Board of Commissioners Meeting
Page 5
May 25, 2004
2. Lansing City Market: Linda Frederickson reported April Rental Revenue was down for
the month compared to last year and compared to budget. Occupancy was up by about 5%
compared to April last year and we expect occupancy to be about 5-10% ahead of last year
throughout the summer months. The beds around the Market have been planted with fresh
annual flowers and ground cover. In regard to recruitment efforts, Linda noted that we do
have a new produce vendor, Giving Tree Farms. She noted they would be at the Market
on Saturdays starting in June and will be selling flowers and hanging baskets and there will
be two vendors from the Flint area. Linda noted work continues with the UM and MSU
folks on the proposed Market Study. Advertising for the summer campaign begins in June
for the radio and television campaign. Schnitz Deli is open and they are continuing their
marketing efforts and are adding to their customer base and,will consider adding breakfast
for the summer months. They will be vending during the Common Ground Festival and
have secured a spot in the Chili Cook off. Market Special Events include participating in
"Be A Tourist in Your Own Town" on June 5 and the Market will give out free hot dogs.
Peter noted there was a small but very positive comment about the Market in Saturday's
editorial portion of the paper. Commissioner Janssen noted there was good coverage on
the back page of the business section as well about how full the Market is.
3. Oldsmobile Park: Peter reported that we hosted MSU versus Easter Michigan baseball
which took place on April 28 as well as the "Home Run for Hope" High School Baseball
Tournament which included Everett, Eastern, Sexton and a high school from Detroit,
(which is the school that won the tournament). Peter noted that it was a great local event
and the kids were thrilled. The tournament included a homerun contest, there was a 50150
raffle and$3,300 was contributed to the Hope Scholarship fund and the schools benefited
as well. Peter noted all in all it was a great event and there was great sponsorship
provided by HNTB,Smith Barney, Mid Michigan Retailers, Lansing Youth and Recreation
Fund, Dean Trailways, Shaheen, Arialink, and Hungry Howies. Everett won the
"Spirit Award" having sold all of their tickets. Chairman Butler noted that Chief Alley was
excited about the event and that Peter received a lot of credit for the event. Peter noted
that Patrick and Linda played a significant role, Patrick developed the idea, and Linda
came up with the name "Homerun for Hope." Upcoming Oldsmobile Park events include
the Diamond Classic on June 7-11, which as originally scheduled at Municipal Field but
was moved due to the rain. He noted the field is fine at Oldsmobile Park and the Lugnuts
have not been rained out to-date despite all of the rain. We will host the Michigan Mile
on June 5.
4. Lansing Center: During the month of April we hosted 51 events equating to 70 event
days, attracting close to 26,000 people, for about 2,500 room nights, with an estimated
economic impact of approximately $800,000. In comparison to last year, event days are
down, attendance is up, room nights are up and economic impact is up as well which is
attributed to the mix of events.
Sales Update: Wally Byum will be arriving around June 14 and will be here for about
three weeks, and we have booked a number of food and beverage functions. Contracts
have been issued for the sixth annual Drug Court Professionals for February 2005; for the
Michigan Department of Agriculture and Farm Bureau for January, 2005; and we have re-
booked Grand Ledges Prom for May, 2005. Michigan Association of CPA's have booked
annual Conferences including events in May, 2005 and two events in October, 2005.
LEPFA Board of Commissioners Meeting
Page 6
May 25, 2004
Facility Highlights: Peter noted that April/May were busy and the highlights include
the Sister City Dinner commemorating the 50ffi Anniversary of Brown versus the Board
of Education; American Cancer Society, Showbiz Talent, Michigan Assisted Living,
INCH, Michigan Conference for Affordable Housing was here for its seventh year with
2,000 attendees; we hosted four proms, East Lansing, Perry, Okemos, Grand Ledge.
Upcoming events include Life Changers Women's Success Conference on May 26-29;
June 5 "Be a Tourist in Your Own Town" as well as the "Down by the River Chili
Cookoff' on Friday June 11. June 14-July 5 the 471`' Annual Wally Byam Caravan will
be at the Lansing Center.
5. Common Ground: Peter noted that new talent was confirmed last week and included
Mario Winans, a R&B/hip hop performer for Sunday night; Blues Traveler, and a new
activity called "Game Riot" which is the largest touring gaming interactive event on the
market today. It has traveled with Lollapalooza and is 50-60 active gaming stations to be
housed on the east side of the river near the tennis courts. He noted if you are a gamer,
this is the greatest thing ever, and Councilmember Williams took serious note as
referenced by Chairman Butler. Peter noted that we pursued this attraction because it is
very different and very "now" and "contemporary" and the feedback has been positive.
Linda Frederickson noted we have partnerships with radio stations, and Q106 as well as
New Oasis and Spike TV who will promote it with our regional cable carriers and it is
powered by X-Box. Peter noted access will be by a pass and there will be hour long
sessions and all stations will have 42 inch plasma TV's. Access will be permitted for non-
festival goers by entering through a different gate. A pass is also available for$15 during
the week and$20 on the weekend. Peter noted this is a very different activity, which will
appeal to a different and varied audience. The hours are Monday through Friday from
6:00 p.m. until 11:00 p.m. with hour long sessions or daily passes. In regard to other
talent, Peter noted we continue to wait for another 8-10 acts to confirm. General Motors
continues to sell the Common Card and they should sell between 2,000-3,000 cards. In
terms of meetings with the City, staff has met with most of the departments and related
operational partners. Chairman Butler asked if the City purchases Common Cards. Peter
noted the employees do through a discount program and we are trying to set up a payroll
deduction system with the City. Peter reminded those present that we are always in need of
volunteers and applications are available on line(commongroundfest.com) and at the City
Market.
6. Budget Hearings: Peter thanked all the Board members that participated in the budget
process and noted that he felt it sent a very good message to council and that they looked
very engaged and very informed and were able to collectively answer all of Council's
questions.
Chairman Butler asked Commissioner Ellen Jeffries if we could payroll deduct the
Common Card for State employees as we do for the GM and the City? Commissioner
Jeffries indicated that it would be a Department of Treasury-Executive Branch function and
that she would look into the matter further. He also thanked Peter for the written Common
Ground update.
LEPFA Board of Commissioners Meeting
Page 7
May 25, 2004
D. PERSONNEL COMMITTEE: Committee Chairman McGuire noted that he indicated earlier
that the Committee would wait until the budget process was over before they began work on
Peter's contract and he was hoping to meet next week or the week after and noted further that
he would like to talk to Peter as well. Chairman Butler welcomed Mr. McGuire back.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Charles Janssen noted that
they don't have a formal report and it is hoped that they will meet before the next regular
monthly meeting. The committee has a few questions for the consultants and hopes to develop
a written plan. Linda will forward a copy of the City Market plan to Commissioner Janssen.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Marian Bryant: Marian noted that she was happy to hear we were ahead of previous years
in terms of volunteers and she reminded everyone that we can never have enough
volunteers, particularly in the finance area, especially because they are losing veteran
volunteers. She noted that she would be happy to talk to any one about volunteer
opportunities, and more specifically to those with a finance background.
B. Commissioner Charlotte Sinadinos: Commissioner Sinadinos asked if Wally Byam is
opened to the public. It was noted that it is an association type annual convention for their
folks.
C. Councilmember Harold Leeman: Councilmember Leeman reported that he and Peter will
get together with the apartment folks in late June and early July as they have for the
previous four years. He noted that they always enjoy going there and they are the biggest
supporters of the festival. Chairman Butler asked if Councilmember Leeman had anything
to report from the Council meeting last evening and there was no further report.
D. Linda Frederickson: The "Sculptures in the Streets Gala" is slated for Thursday, June 3 at
5:30 p.m. at the Atrium and tickets can be purchased for $50 from the Mole Hole or the
PSD office. The sculptures will be on display beginning June 4 and the merchants will be
staying open from 5-10:00 p.m. on that day and they will have live entertainment. The
Common Ground Sponsor Preview party will be held on Wednesday,June 9 and the Board
and City Council will be invited. Wednesday, June 23 we will host the Common Ground
Volunteer Training session.
E. Commissioner Cyril McGuire: Commissioner McGuire noted that he is awaiting the
Common Ground groups that we are awaiting signing up because he hopes that we get
some variances that will satisfy the majority of those who are going to attend. He noted
that he doesn't want to listen to the static that we usually hear. He also noted that he
would discuss with Marian volunteer opportunities.
LEPFA Board of Commissioners Meeting
Page 8
May 25, 2004
F. Commissioner Sharon Peters: Commissioner Peters noted that she missed the last
meeting and after reviewing the minutes she noted that there was a great deal of
commentary about the trip to Grand Rapids; however, she wanted to reinforce and thank
the staff for setting up the trip and the City Council for their support and coming along and
recognizing the differences between the Lansing community and Grand Rapids, and also
the political and financial differences, which are factors in a different path for us.
Commissioners Peters noted that she felt it was an excellent path for people involved in
this work to get involved in the state of the art, cutting edge work in this area and it sets us
on a path of what we want to do. She noted that she appreciates the effort in regard to
Common Ground, in broadening the effort in terms of the groups that are brought in. She
also noted that she appreciates the effort with Chairman Butler, Peter and the staff to reach
out to Helena DuBois, and that Helena appreciated it as well, and she noted further that the
response she received was that Helena felt it was a good and positive meeting from the
conversations that they have had. She noted that she is hopeful and that she felt it is
important that all radio stations be involved and appreciated the forum to bring the
community together and that she sees the forward movement with the acts that are being
brought in. Commissioner Peters noted that she knows staff is working hard, and she
appreciates the work that's gone on and for this year we are already seeing some results
and hopefully next year and years later we can look at even more.
G. Peter Sullivan: Peter wished everyone a Happy Memorial Day. He noted that
Commissioner Nicholoff asked that it be explain that he couldn't be here today due to a
vote this morning at the capitol.
H. Commissioner James Butler: Commissioner Butler thanked Commissioner McGuire for
dealing with the Personnel Committee meeting that will be next week or the week after.
He also thanked Charlie for the upcoming meeting on Long Range Planning and the City
Market. He also noted that he would like Commissioner Janssen to head up the
Nominating Committee, and to come back with a slate of officers at the next meeting. He
thanked Peter for the Common Ground update as was requested and he thanked all of the
Commissioners for the commitment they bring to the table
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:10 a.m. it was moved by Commissioner Peters and seconded by Commissioner Haggart that the
meeting be adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY,JUNE 22, 2004 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
JUNE 22, 2004
MINUTES
At 8:00 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, Kris
Nicholoff, Jim Ruff(Ex-Officio), Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Glenn Kirk (Ex-Officio), Cyril McGuire, and Sharon Peters.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Peter Sullivan, and
Patrick Talty - Lansing Entertainment and Public Facilities Authority. Sandy Allen - Lansing City
Council. Margaret Vroman - City of Lansing.
III. ESTABLISHMENT OF THE AGENDA:
There were no changes to the agenda.
IV. PUBLIC COMMENT:
There were no comments.
V. APPROVAL OF THE MINUTES OF MAY 25, 2004:
The minutes of May 25, 2004 were adopted as presented. MOTION: Commissioner Janssen
SECOND: Commissioner Haggart, motion carried. .
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman James W. Butler III reported the following:
1. Common Ground Partner Preview Party - June 9: Chairman Butler noted that the "Partner
Preview Party" took place on June 9' and that the meeting was extremely well attended.
General Motors, the Mayor and Councilmembers all were present as well as various sponsors
and he noted that Peter and the staff did a super job.
2. Meeting with Helena Dubose: Chairman Butler reported that Peter and Kevin have worked out
an agreement with Helena Dubose of 96.5 that appears to be carrying us into the future with a
posture of accommodation with Helena Dubose, Chairman Butler applauded Peter and the rest
of the group because he felt it was a major accomplishment.
3. Farewell: Chairman Butler noted that this is his last day as Chairman of this great Board. He
noted that it has been an honor and a delight to serve and that he could have not asked for a
greater group of Board members to work with. He noted that their commitment and dedication
in his opinion are second to none. He noted that he has made history by being Chairman
twice, and that history will continue to be made because of the forward thinking and creative
thrust of LEPFA within itself. He noted we are indeed in great hands because Tim has been a
loyal board member from the beginning, and will continue to be so as our new Chairman. He
gave thanks for the privilege to serve.
B. SECRETARY/TREASURER'S REPORT:
LEPFA Board of Commissioners Meeting
Page 2
June 22, 2004
1. Monthly Financials - For the Period Ending May 31, 2004: Committee Chairman
Sinadinos reported the following:
a. Lansing City Market: Building Rental for the current period is $5,054 compared to the
prior year's$4,746 and for year to date the amount is$42,185 which is less than the prior
year's amount of$43,675. Parking for year to date is $17,129 compared to $22,517 for
last year. Total Operating Revenues for year to date are$59,759 compared to$66,820 for
last year, which is down about$7,000 and is due primarily to parking. Under Operating
Expenses- Salaries and Wages for year to date are$44,001 compared to$40,922 for the
prior year. Utilities for the current period are $2,641 which exceeds the prior year's
amount of$2,335 and for year to date Utilities are $ $39,334, which exceeds the prior
year's amount of$35,621. Insurance and Bonding for year to date is$3,796 which is more
than the prior year's amount of$2,257. Supplies and Materials for year to date are$3,052
compared to$2,277 for the prior year. Total Operating Expenses for the current period are
$8,374 which is less than the prior year's amount of $12,149 and for year to date
Operating Expenses are$133,575 compared to$122,075 for the prior year; for a loss year
to date of ($9,332) compared to the prior year's income of $9,436 (the difference is
attributed to the parking figure of$7,000).
Total Cash for the current year is $29,764, which is down from the prior year's figure of
$69,648 and reflects the loan to the Lansing Center, which is also reflected in Accounts
Receivable and Accounts Payable. Unreserved Equity for the current year is $163,211
compared to the prior year's amount of$167,779.
Under Budget versus Actual, Building Rental for the current period is $5,054 compared
to the budgeted amount of$5,289 for a variance of($235) and for year to date the
figure is $42,185 compared to the budgeted amount of$43,561 for a variance of
($1,375) less than budget. Parking for year to date is $17,129 compared to the
budgeted amount of$24,735 for a difference less than budget of($7,606). Total
Operating Revenues for the current period are $5,089 compared to the budgeted
amount of$5,349 for a variance less than budget of($260) and for year to date we are
less than budget by ($9,196).
Under Operating Expenses - Utilities for the current period are less than budget by
$399 and for year to date they are higher than budget by ($5,883). Total Operating
Expenses for the current period are better than budget by $3,830 and for year to date
they are $133,575 compared to the budgeted amount of$141,938 which is less than
budget by $8,362. Netting expenses against revenues for year to date, we are less than
budget by ($834). After taking into consideration the City Contribution and Interest, we
are higher than budget by ($3,351) and after adding in depreciation we are higher than
budget by ($918).
b. Oldsmobile Park: The Event Revenues for the current period are $9,931 which
consists of Home Run for Hope, and food and beverage for MSU Baseball. Expenses
for Home Run for Hope were $7,151 for an event income of$2,780 which was applied
to the Event Development Fund; more expenses for Home Run for Hope are
anticipated for June. Under Operating Expenses - Salaries/Wages for year to date are
$49,453 which is similar to the prior year's amount of$50,468.
LEPFA Board of Commissioners Meeting
Page 3
June 22, 2004
Utilities for the current period are $4,027 compared to $4,442 for the prior year and
for year to date utilities are $56,589 which exceeds the prior year's year to date amount
of$52,642. Total Operating Expenses for the current period are $17,294 compared to
$17,764 for the prior year and for year to date the amount is $248, 054 which exceeds
the prior year's amount of$217,951. After adding in the City Contribution and
Interest we have a loss of($27,193) for year to date, compared to the prior year's
income of$1,538.
Total Cash for the current year is $79,534 which is down from the prior year's amount
of$90,692. The Net Event Development Fund is $56,024 compared to the prior year's
amount of$59,263. Chairman Sinadinos noted that Accounts Payable and Accounts
Receivable reflect late billing for the suites. Unreserved Equity for the current year is
$74,899 compared to $108,897.
At 8:12 a.m. Commissioner Kris Nicholoff entered the meeting.
Under Budget versus Actual - Salaries and Wages for the current period are better
than budget by $273 and for year to date they are better than budget by $2,542.
Utilities for year to date were higher than budget by ($4,164). Insurance/Bonding is
higher than budget by ($5,451). Total Operating Expenses for the current period are
better than budget by $2,588 and for year to date the figure is better than budget by
$44.60. After taking into account the City Contribution and Interest, we are higher
than budget for year to date by ($1,932). After figuring in depreciation we are higher
than budget by ($10,389).
c. Lansing Center: Chairman Sinadinos reminded everyone that last year we had MSHDA
in June and this year it was held in May. Building Rental for the current period is $116,
530, which exceeds the prior year's amount of $92,960 and the year to date Building
Rental is $966,100 compared to last year's amount of$990,257. Food and Beverage for
the current period is $298,794 compared to $239,330 for the prior year and the year to
date amount is $2,543,843, which is less than the prior year's amount of $2,662,175.
Equipment Rental for the current period is $93,257 compared to $55,998 and Labor
Service for the current period is$19,259 compared to $12,162 for last year. The year to
date figure for Equipment Rental is$656,567 compared to$532,014 for the prior year and
Labor Service for year to date is $172,936 compared to $213,147 for last year. Total
Operating Revenues for the current period are$548,981 compared to$411,663 last year.
Total Operating Revenue for year to date is $4,650,282 compared to $4,680,083.
Under Operating Expenses- Salaries/Wages for the current period are$141,774 and for
the prior year the figure was $175,119 which is attributed to three pay periods for last
year's current period; for year to date the figure is $1,554,969 compared to $1,555,337.
Fringes and Related Costs for year to date are $513,677 which exceeds the prior year's
amount of$468,894 which is due to the increase in medical insurance. Utilities for year to
date are $530,466 compared to the prior year's amount of$560,444. Food and Beverage
expense for year to date is$1,533,904 compared to$1,613,470, which is attributed to the
three pay periods last year. Our Operating Loss for year to date is$440,166 which is very
close to the prior year's loss of$446,916. After netting revenues against expenses for the
current period we have an income of$59,457 compared to last year's amount of$147,039.
LEPFA Board of Commissioners Meeting
Page 4
June 22, 2004
After totaling Cash and Cash Equivalents we have$397,000 for the current year compared
to the prior year's amount of$438,000. Under Liabilities - Unearned Advanced Rent,
which is an indicator of future business, for the current year is$277,453 compared to the
prior year's $336,428. Unreserved Equity for the current year is $485,969 compared to
$598,097 for the prior year.
Under Budget versus Actual -Building Rental for the current period is better than budget
by $6,943; for year to date the amount is $966,100 compared to the budgeted amount of
$993,132 which is less than budget by ($27,031). Food and Beverage for the current
period is better than budget by $8,794 and for year to date it is less than budget by
($7,169). Equipment Rental is better than budget for year to date by $191,363.
Tradeshow Utilities are better than budget by $45,662 and Labor Service is better than
budget by $22,736. Total Operating Revenues for the current period are $548,981
compared to the budgeted amount of$496, 787 which is better than budget for the current
period by$52,194 and for year to date the figure is$4,650,282 compared to the budgeted
amount of$4,389,687which is better than budget by $260,595.
Under Operating Expenses - Salaries/Wages are better than budget by $3,374.
Fringes/Related Costs exceed budget by ($27,175), which is due primarily to medical
insurance costs. Professional Services are higher than budget by ($56,307).
Insurance/Bonding is higher than budget by($10,142). Food and Beverage Cost is higher
than budget by $24,139. Total Operating Expenses for the current period are $458,623
compared to the budgeted amount of$468,760 for a variance of$10,136 for the current
period and for year to date the Operating Expenses are $5,090,449 compared to the
budgeted amount of$4,923,414 which is higher than budget by($167,035). After netting
revenues against expenses, we are better than budget by $93,560. After taking into
account the City Contribution and Interest, we are better than budget by $90,465 and
after backing out the City Contribution variance for this year, and taking into account the
under funding by the City of$64,000 and the depreciation, we are better than budget by
$2,842. Finance 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, 2004 be received as published, and further that the monthly expenses for each
entity be approved. SUPPORT: Commissioner Haggart, the motion carried.
2. Allowance for Bad Debt: Chairman Sinadinos noted that the "Allowance for Bad Debt"
was discussed in the Finance Committee meeting on May 24 and it was moved and passed
that they be written off for this year in the amount of$1,041 for bad debt. It was also
moved and passed that the following amount be set-up as "Allowance for Bad Debt" for
this year in the amount$2,932.
C. PRESIDENT AND CEO'S REPORT:
1. Union Report: Patrick Talty noted that last week a meeting took place with the UAW
regarding our first negotiation session with the Food and Beverage employees and that
their proposals have been received and we will be responding. Overall the first
meeting went well, and there are issues that need to be worked out, and he is confident that
they will be resolved (the issues include wages and benefits).The Technical Services
contract is also outstanding and we have sent a letter indicating that we are ready to
negotiate and we have had no reply to-date.
LEPFA Board of Commissioners Meeting
Page 5
June 22, 2004
2. Lansing City Market: Linda Frederickson reported that May Rent Revenue was down
for the month compared to last year(Schnitz Deli rent revenue will be reflected in the June
Financials and the occupancy numbers will increase in June as well). The courtyard and
exterior grounds have been planted by John Decker and look beautiful. Linda noted a new
program has been started regarding the rental of outside space at the Market on Saturdays;
there was interest initially, but the rainy weather has hampered the program. Linda
reported that the painting is just about finished and we have the bathrooms to spruce up
for this year. Entertainment on Saturdays started in May. The Market also participated in
"Neighborhoods in Bloom," the Market was a flower pick up location for neighborhoods.
The Market also participated in "Be a Tourist in Your Own Town" by giving out
approximately 2,000 hotdogs from 11:00 a.m. until 3:00 p.m. Chairman Butler asked for
a list of the Entertainers at the Market. Linda indicated that Mark sets list monthly and she
will make it available to the Board.
Chairman Butler questioned the movies at Oldsmobile Park, and it was noted that it is too
early to know the movies because they are pending release. Chairman Butler asked that
the movies be included on the list that Linda will forward to him. Commissioner Wootton
noted that the vendors, particularly the food vendors have benefited from Wally Byam; and
they have been at the Market every day. Chairman Butler asked how Dominic is doing at
the Market and Linda noted that he is slightly behind his projections, but is not
disappointed and is working on creative marketing to increase his client base. He has also
participated in the Chili Cookoff and Common Ground, and he is not discouraged. Linda
noted we are doing all that we can to help him, and in fact a meeting is scheduled with the
City next Tuesday. Sandy Allen asked if the eatery has had a negative impact on the deli
and asked how long their lease is. Linda noted that the cafe is on a month to month lease
and has been for a year and that it has not impacted the other food vendors. However the
cafe has been impacted the most, and we have tried to assist them and it is on the list for a
stronger operator. Peter noted the cafe could do a better job on their food selection and
noted that Jon Ezzo did a much better job with his breakfast menu in particular and worked
to cultivate his clientele. Chairman Butler noted that he took the Broadband Group(20-30
people)to Schnitz Deli and they did a super job. He also noted that you can phone in your
orders in advance.
3. Oldsmobile Park: Peter reported that we hosted the Michigan Mile on June 5. We also
hosted the Diamond Classic which was held at Oldsmobile Park due to rain outs. We
hosted three games and had over 3,800 people. The Lugnuts have qualified for the
playoffs based on their first half play.
4. Lansing Center: Peter noted May was a good month based on the benchmark of
$500,000 we generated $600,000 (MSHDA was in May and not in June as was the case
last year).During the month of May we hosted 42 events equating to 63 event days,
attracting close to 13,000 people, for about 1,800 room nights, with an estimated
economic impact of approximately $800,000.
Sales Update: Wally Byam is moving in and as the week progresses we will see more and
more air streams surfacing at the armory, the airport and Lot 15. They have been in the
building since last week and their first official event is Sunday(a church service), and they
have contracted most of the facility for the next 2-3 weeks. It is one of the largest events
over a long period of time, so the economic impact will be interesting to note.
LEPFA Board of Commissioners Meeting
Page 6
June 22, 2004
They have had a good showing at the Market, the Nuthouse, and the Knight Cap.
In regard to weddings, it appears that we hosted 21 during this fiscal year, and we have
23 definites with 3 prospects for the next fiscal year. We hosted 13 holiday parties in
2003 and we have 8 confirmed and 4 pending for the remainder of this year. Sparrow
Health Systems has re-booked and confirmed their annual Holiday Gala in December.
Delphi has confirmed their return in 2005 and they have significant equipment rental.
Capital Area Michigan Works has rebooked their Job Fair for September and Capital
Consultants has rebooked their Holiday Corporate Party.
Facility Highlights: Peter noted that in late May we hosted the "Life Changers
Christian Center Women's Success Conference" for approximately 1,100 women and
teens. We had the Chili Cookoff in the building due to the rain; and they (and we)
were quite happy with the turnout which was 500-1,000 less than last year;
operationally the event went smoothly. There were 38 participants and a mechanical
bull and it was a great event. We hosted the introduction of Independence Air for the
Lansing Regional Airport. Peter indicated that it was a nice luncheon and sales pitch
for about 250 people. We hosted President Fox of Mexico and were involved with
Secret Service for a week. Approximately 2,000 people were here for the event. We
also hosted Michigan Catholic Home Educators and Wally Byam as well as 5
weddings.
Upcoming Events: Upcoming events in July/August include the Great Lakes Feis
Dance Competition, Midwest Reps, and the Lansing School District Employee meeting.
5. Common Ground: Peter indicated that we will start building the festival next Monday
with fencing on both sides of the river. Friday, July 2 at 6:00 p.m. we take possession of
the Park and the roadway(Shiawassee and Grand Avenues will close). All tents will go up
on July 3 as well as the staging and electrical. The Lansing Concert Band will perform on
the West Main Stage on July 4. Monday, July 5 the Food and Beverage vendors move in
as well as the Skybox, the Video Screen at the West Main Stage and Game Riot will be
installed. Gates open at 5:30 p.m. for ZZ Top. Ticket sales are up compared to this
time last year and we anticipate selling out Monday night. At this time there are only 350
common cards left and we anticipate they will sell out by the end of the week as well.
Peter reviewed and gave descriptions of the talent line up which was also included in the
Board packets. He noted that the musical line up this year is more diverse than ever in a
variety of ways and it will be interesting to note ticket sales. We are also continuing the
Sand Bar, the Uncommon Club and the Skybox, all of which are sold out. New activities
this year include Game Riot and a preferred parking program off of Museum Drive.
Parking tickets can be purchased at the Festival Office at the City Market and are$10 per
day or $70 per week. Peter noted we continue to receive positive feedback from our
sponsors and the public in general, which has been manifested in ticket sales.
Promotionally we continue to push the radio, television and newspaper and cable outlets to
advertise the festival. We also have a number of bar promotions in and around Lansing.
The Volunteer Training/Party is this Wednesday at 5:30 p.m. in Halls A and B and he
thanked those who are volunteering. Rain Insurance has also been purchased. Peter noted
that he can hardly believe it is the fifth year, and encouraged those present who will
participate and/or will attend to have some fun. Peter indicated that this year has been
harder in terms of finalizing the talent because many groups that play Europe on a rotation.
LEPFA Board of Commissioners Meeting
Page 7
June 22, 2004
are going to Europe this year which has complicated matters for us and it will be
interesting to see the reaction this year through ticket sales. Commissioner Tim Haggart
asked if we are receiving the revenues from the "Preferred Parking," Peter noted it is
included in the same program we have now with the City.
Councilmember Sandy Allen asked if any consideration has been given to a VIP entrance.
She noted it is very discouraging to wait in long, long, long lines; and while she realizes
she is no different from the other patrons, she wondered if the matter has been give any
consideration. Peter noted it can be arranged but we do need to be careful. Linda
Frederickson noted that the only special gate is for the "Uncommon Club Members" who
pay over $250.00 for admission
Chairman Butler noted that he supports Sandy's comments and his reasoning is that
Michigan State, Sparrow Hospital, etc., consider their Board members because they run
the organization throughout the year as a labor of love. He noted further that he can't
recall any groups that don't look out for their Board members; especially at Michigan
State.
Commissioner Ellen Jeffries verified that the Uncommon Club has sold out. Peter noted
that it has been sold out all year and the Skybox Suite is sold as well. Ellen asked if there
will be a list for people for next year. Peter noted before the festival ends, the Uncommon
Club will be sold out for next year because the option to renew is given to the current club
members. Peter indicated that it has been expanded this year and the tickets were snapped
up.
D. PERSONNEL COMMITTEE: Chairman Butler noted a meeting is scheduled for Friday,June
25 at 11:00 a.m.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Charles Janssen noted that
the Committee has not met due to Common Ground and summer schedules.
F. NOMINATING COMMITTEE: Commissioner Janssen noted that the committee will meet on
Friday as well and will present their recommendations at the August meeting.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Marian Bryant: Marian reminded those present of the need for volunteers.
B. Commissioner Charlotte Sinadinos: Commissioner Sinadinos noted that she is looking forward
to Common Ground as a volunteer, and noted to Councilmember Allen that if you volunteer
you get a great entrance!
C. Linda Frederickson: Linda reported that a new Sales Coordinator is on board and her name is
Kelly Duch and she brings a wealth of experience from the Savannah CVB and yesterday was
her first day. Tarena Smith has also been named Sales Manager and so now the Sales
Department is fully staffed. She also noted that we have a first time partnership with Jay Price
from the Michigan Minority Press and Common Ground will be featured in over 20 minority
publications state-wide in June.
LEPFA Board of Commissioners Meeting
Page 8
June 22, 2004
D. Commissioner Tim Haggart: Commissioner Haggart noted that he drove from Cincinnati
yesterday and the amount of airstreams on the road was amazing and he also drove through the
airport. Chairman Butler noted they were visible when flying in at the airport as well.
Commissioner Haggart noted that there was also an article in US Today on the Lugnuts. Bill
Grove indicated that it was an article summarizing the merchandising of minor league teams
and the Lugnuts were the headliners.
E. Jim Ruff: Jim Ruff noted that the people who are running the game booth at Common
Ground have also contacted Pat Cook from EDC regarding the Mayor's IT Initiative and will
also include it in part of their game room in the form of promotional material, which will be a
nice addition. Chairman Butler asked about the parking ramps that are being built. Mr. Ruff
noted that today some of the pre-cast concrete panels will go up for the parking ramp on
Townsend Street. It will be a 1,230 space City parking facility that is 90% pre-leased and will
have 8 floors above ground. It is a$23,000,000 project that should be occupied by the end of
the year. He noted there will be a photo-op at 2:30 p.m. today and that eventually Washtenaw
will be closed between Townsend and Capitol. Chairman Butler also asked Mr. Ruff if he
would remind Mr. Kirk that he is listed as a member of the LEPFA Board and is invited to
attend the meetings.
F. Commissioner Denise Wootton: Commissioner Wootton reminded everyone to come to the
Market as often as possible. She also noted that they are seeing more traffic. Chairman Butler
asked her what she felt the reason for the increase in traffic was and Denise suggested that it
many little things.
Jim Ruff noted that during the recent trip to Grand Rapids he and Charley Janssen discussed
the pre-emptive traffic light at Washington and Kalamazoo and as such the time has been
shortened which should improve the timing.
Denise noted that if hadn't been for the weather they would have had a record spring; and
with the weather being as bad as it was they were able to hold their own.
G. Commissioner Charles Janssen: Commissioner Janssen noted he attended the "Preview Party"
and while there he was reminded by Kevin Meyer of how difficult it is to coordinate all the
talent for Common Ground, and if you are not involved in the business you are not aware that
you can't just put people in Lansing, Michigan at whatever time you would like. He noted that
the conversation was very interesting and that he appreciated Kevin and Peter's efforts.
Commissioner Janssen also thanked Chairman Butler for another great year as our Chairperson
and noted that he does an outstanding job despite having so many irons in the fire and thanked
him for continuing to give his time and talent to the Board with a great attitude, and a
personality that is welcoming and positive. He noted that all of his qualities are appreciated and
thanked him for giving another year of his time as Chairman. Chairman Butler extended his
thanks and also commended Commissioner Janssen for his efforts to keep Foster, Swift
involved as a major sponsor of Common Ground year after year.
H. Commissioner Ellen Jeffries: Commissioner Jeffries commended Chairman Butler as well, and
noted that he attends many meetings and puts in a lot of time and effort. Commissioner
Jeffries noted that she is volunteering(at Common Ground)and again it seems that the women
are out numbering the men as volunteers from the Board, so she offered a challenge to the
male board members.
LEPFA Board of Commissioners Meeting
Page 9
June 22, 2004
She noted she is on Heidi's team this year as she has been for the past several years. Chairman
Butler thanked Commissioner Jeffries for her kind remarks.
I. Commissioner Kris Nicholoff: Commissioner Nicholoff thanked Linda for her help with the
High School baseball program; he noted they were one of the sponsors(the Lansing Rec Fund)
and that he was able to see part of the game. He noted that the follow up was great and was
really nice. Commissioner Nicholoff also noted that 2006 is the 150'year of Michigan Dental
Association's existence and they will be having a meeting here and noted that it is one of the
largest conferences in the state and they are excited to be back in Lansing. He noted he is
planting the seed now, and will be in touch in terms of promotion.
Chairman Butler asked Commissioner Nicholoff about the "First Tee"program
Commissioner Nicholoff noted it is coming along and explained that it is a national and a
state program that is working with the City to build a youth golf facility at Sycamore Golf
Course. He noted through this program, in cooperation with the City and under the DEQ,
they maybe able to have the course. He noted they are meeting with Greg Eaton and will
know more; they have also received funding from National Piping. He noted they hope to
be breaking ground any day and also commented that the City and Murdock have been
great during a tough time to raise money.
Commissioner Nicholoff also noted, similar to Commissioner Haggart, on his return from
Minneapolis he saw many air streams as well.
He also noted that he is a member of the Arts Council and indicated that it would be nice if
there could be a joint meeting of the Arts Center, Boarshead, Riverwalk, etc. so that the
entities could work together to incorporate all the groups when considering an expansion.
J. Councilmember Sandy Allen: Councilmember Sandy Allen encouraged those present to visit
the Market, in particular Denise's jewelry counter. She also asked Heidi to forward her
information regarding volunteering. Councilmember Allen also noted that the Council passed
an ordinance that will help procure diversity/minority contracts. She asked if in our
entertainment line up there are many minorities. Peter noted there are minorities included in
the list he just reviewed. She also asked if there is any local talent included in Common
Ground. Peter noted there was.
K. Heidi Brown: Heidi thanked Ellen and Brian Jeffries for volunteering at the Information Booth
during Common Ground
L. Patrick Talty: Patrick noted he will be at Riverfront Park on a golf cart for the next week.
M. Peter Sullivan: Peter reminded those present that there are no July meetings. He also noted
that everyone's efforts in regard to Common Ground are appreciated. Peter thanked James for
his time served and noted that he is the first member to serve on the Board as Chair twice and
has spent a great deal of time with Peter not only as Chair, but in a variety of other business
interests relative to LEPFA. He thanked him for his commitment and time.
LEPFA Board of Commissioners Meeting
Page 10
June 22, 2004
N. Chairman James Butler: Chairman Butler told Heidi that she takes great minutes and noted
that he is appreciative because they are complete and comprehensive. He reminded everyone
about the article concerning the Lugnuts in today's edition of US Today. He thanked Sandy for
the Council update. Chairman Butler reminded those present that a Personnel Committee
meeting is scheduled for June 25 at 11:00 a.m. and Chairman Butler noted that he is certain
Tim will do a great job and that he appreciated the opportunity to serve.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:25 a.m. it was moved by Commissioner Jeffries and seconded by Commissioner Haggart that the
meeting be adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, AUGUST 24, 2004 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 28, 2004
MINUTES
At 8:15 a.m. 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: James W. Butler III, Tim Haggart, Charles Janssen, Kris Nicholoff,
Jim Ruff(Ex-Officio), Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Ellen Jeffries, Glenn Kirk(Ex-Officio), Cyril McGuire, and Sharon
Peters.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, and Patrick Talty-
Lansing Entertainment and Public Facilities Authority. Sandy Allen and Harold Leeman, City of Lansing.
III. ESTABLISHMENT OF THE AGENDA: No changes were noted.
IV. PUBLIC COMMENT: There were no comments.
V. APPROVAL OF THE MINUTES OF AUGUST 24, 2004:
The minutes of August 24, 2004 were adopted as presented. MOTION: Commissioner Janssen
SECOND: Commissioner Sinadinos, motion carried.
At 8:15 a.m. Commissioner Kris Nicholoff entered the meeting.
VI. REPORTS:
A. CHAIRMAN'S REPORT: No report.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements For the Period Ending July 31, 2004: Committee Chairman
Sinadinos reviewed the financial statements as follows:
a. Lansing City Market: Building Rental for the current period is$5,655 which is up over
the previous year's amount of$5,119. Total Operating Revenues for the current period
are $5,690 compared to $5,334. Under Operating Expenses — Salaries and Wages for
year to date are $2,483 compared to$2,938 for the prior year. Utilities are up slightly at
$3,078, which exceeds the prior year's amount of $3,003. Marketing is at $1,908
compared to the prior year's amount of$250 which is a timing issue. Insurance/Bonding
is down at$205 compared to $377 for the current period. The Market has an Operating
Loss for the current year of ($3,615) compared to ($3,426). The City Contribution is
$7,920 compared to $10,091 for last year and the difference is attributed to a different
schedule. Year to date expenses over revenues are $4,307 compared to the prior year's
income of$6,664.
Our Total Cash position is$38,752 compared to the prior year's amount of$76,778, which
is due to loans to the Lansing Center and Common Ground. Prepaid Expenses are$4,239
compared to $699 for the prior year, because the insurance was paid for the entire year.
Unreserved Equity is $170,593 compared to $179,208 for the prior year.
LEPFA Board of Commissioners Meeting
Page 2
September 28, 2004
Under Budget versus Actual, Building Rental for the current period has a variance
better than budget of$431.66. Total Operating Revenues are $5,690 compared
to the budgeted amount of$5,284, which leaves a variance better than budget of$406
in revenues.
Under Operating Expenses - Insurance/Bonding was better than budget by $165. Our
Total Operating Expenses were $9,305 compared to the budgeted amount of$11,331
for a variance better than budget of$2,025 and after netting revenues against expenses
we have income of$2,431 better than budget and after adding in the City Contribution
and Interest we are better than budget by $2,351.
b. Oldsmobile Park: The Event Revenues are composed of interest of$15.77 because
there were no events in July. Expenses were $38.10 for a loss of($22.33) which was
applied to the Event Development Fund. Chairman Sinadinos noted under Operating
Expenses - Salaries/Wages there was an increase in the allocation, which is the reason
for Salaries/Wages being higher at $5,547 for year to date compared to $3,890 for last
year. Utilities are higher at$5,061 compared to the prior year's amount of$4,531.
Insurance/Bonding for year to date is $3,127 compared to $5,744 for the prior year,
which is down by $2,600. Total Operating Expenses for year to date are $19,495
compared to expenses of$18,989 for the prior year. We have a bottom line year to
date excess Revenues of Expenses of$3,984 compared to the prior year's $1,079.
Chairman Sinadinos noted we are dealing with the City on the collection of the
allocation and that for the Lansing Center we receive it on a quarterly basis and for
Oldsmobile Park we have always had the monies upfront for operations and at this
point we are owed $70,000.
Total Cash for the current year is $105,591 which is down from the prior year's
$168,906 and is attributed to the fact that we have not received the allocation yet. The
Net Event Development Fund for the current year is $70,132, which exceeds the prior
year's amount of$56,631. Accounts Receivable are $47,142 compared to the prior
year's amount of$20,834 and is attributed to a timing issue on the suites. Unreserved
Equity for the current year is $66,687 compared to the prior year's $83,458.
Under Budget versus Actual - Utilities for year to date are higher than budget by
($567). Insurance/Bonding is better than budget by ($2,455). Total Operating
Expenses for year to date are $19,495 compared to the budgeted amount of$22,743;
for a variance better than budget of$3,247. Chair Sinadinos noted there is a new line
item "Under Funding - City of Lansing." After adding in the City Contribution,
Interest, and the Under Funding, we are better than budget by $1,813.
At 8:20 a.m. Harold Leeman entered the meeting.
c. Lansing Center: Chairman Sinadinos noted this July we had a very reasonable month
compared to July last year, due to a different mix of events. Chairman Sinadinos noted
Building Rental for the current period is similar to last year at $13,660 compare to
$12,405 for last year's current period. Food and Beverage for the current period is
$95,070 compared to $49,791 for the prior year. Equipment Rental for year to date is
$21,904 compared to $2,011.
LEPFA Board of Commissioners Meeting
Page 3
September 28, 2004
Trade Show Utilities are$2,520 compare to the prior year's amount of$1,300 which was
attributed to Vice President Cheney's visit. Total Operating Revenues are $140,688
compared to$72,225 for last year. Under Operating Expenses, Salaries/Wages are down
this month at $84,134 compared to $95,058 due to a vacancy in the Operations
Department. Fringes and Related costs are $33,644 which is less than $38,707 for the
prior year and is attributed to a change in the medical insurance for this fiscal year.
Professional Services are$12,693 compared to the prior years$25,215, which is due to a
reduction in office temps and computer consulting. Supplies and Materials are down
$2,361 compared to the prior years$7,222. Insurance/Bonding is at$8,818 which is less
than the prior year's $13,241 for a$4,443 variance. Food and Beverage Cost is$77,412
compared to the prior year's$75,182. Total Operating Expenses are$310,406 compared
to the prior year's expenses of$339, 052 for an Operating Loss for the current period of
($169,717)compared to the prior year's loss of($266,826). Taking into account the City
Contribution and Interest, we have a loss of($105,083) compared to the prior year's loss
of($210,836).
After totaling Cash and Cash Equivalents we have$114,113 compared to the prior year's
amount of$214,294. Under Liabilities - Unearned Advanced Rent, which is an indicator
of future business, for the current year is$294,654 compared to the prior year's amount of
$334,416. Unreserved Equity for the current year is$128,703 which is less than the prior
year's $215,984.
At 8:28 a.m. Commissioner James Butler entered the meeting.
Under Budget versus Actual- Building Rental variance for the current period is less than
budget by ($38). Food and Beverage was right on target with our budget$95,070 for a
variance better than budget of $68.91. Equipment Rental is better than budget by
$18,629. Total Operating Revenues are $140,688 compared to the budgeted amount of
$119, 683 for a variance better than budget of$21,005.
Under Operating Expenses, Salaries/Wages are higher than budget by($9,959), which is
due to part time labor. Professional Services are better than budget by $2,330.
Insurance/Bonding is better than budget by $3,064. Total Operating Expenses are
$310,406 compared to the budgeted amount of$308,118, which was $2,288 higher than
budget. The Operating Variance is$18,717; and after adding in the City Contribution and
Interest, we are better than budget by$15,643. Chairman Sinadinos pointed out the line
item of "Under Funding by the City" of$2,527.
Finance Committee Chairman Sinadinos moved that the monthly financials for Oldsmobile
Park, the Lansing City Market, and the Lansing Center for the period ending July 31,
2004 be received as published, and further that the monthly expenses for each entity be
approved. SUPPORT: Commissioner Janssen, the motion carried.
2. FYE 2003-4 Annual Audit Draft: Chairman Sinadinos noted that a draft of the audit was
reviewed at the Finance Committee meeting and there were two items that were brought up
by Mark Kettner. Otherwise everything was fine, and a good job was done by the staff.
Chair Sinadinos noted the two items that were discussed and are now being taken care of
will not cause any change in the numbers on the audit.
LEPFA Board of Commissioners Meeting
Page 4
September 28, 2004
The first item was a question on the books for the pension fund. It was suggested
that they be set up similar to the way the financial statements are set up and this change is
being implemented. The second item concerns the Accounts Receivable under the
"Allowance for Bad Debt" the Cam-Tre amount of $59,000 which is being collected
through the City, has not been written off and Kettner asked if it was truly collectable and
questioned how it should appear. Chairman Sinadinos explained that it is being pursued
and hopefully settled. Committee Chairman Sinadinos asked Marian Bryant to report
further on the audit results. Marian noted that Mark Kettner reported at the Finance
Committee that the audit was a clean unqualified opinion as it always is and that the
numbers are not any different than the numbers that have been reported in the June
financial statements. She noted that the two items addressed by Chairman Sinadinos were
addressed at length with the auditors and we are in the process of addressing the issues. A
final report of the audit should be available next month and any further questions can be
discussed at that time.
D. INTERIM PRESIDENT AND CEO'S REPORT: Patrick Talty reported the following:
1. Common Ground: Patrick noted that we undertook a lot of statistical data this year to
quantify Common Ground via patron information. We did some testing, sampling and
focus groups and worked with Capital Research Group to provide the information. Linda
Frederickson reviewed the information as presented. She reported that several sources
were used this year and we worked with Capital Research Services on a 1,000 exit
surveys and we have a data base from Star Tickets Plus which is the Common Ground
ticketing system (the base was 3,300 accounts which was up significantly and presents
10,000 of the 80,000 tickets purchased). We also used some of our web site information
and have started to data base common card holders, as well as a zip code analysis which
indicated that outside of Ingham and Eaton County we are drawing about 30% of our
traffic. Other facts of interest were:
• Tickets were purchased from 21 states.
• Within the state of Michigan tickets were purchased from 44 different counties.
• Tickets were purchased in 56 different Meijer locations and 19% were outside Ingham
and Eaton counties.
• 72% of Common Card purchases took place at the three Lansing/Okemos Meijer
locations.
Linda indicated that she has demographic information available and detailed survey results
if folks were interested. She noted that the Intercept Survey results were based on 1,000
with 250 surveys completed by four different genres of music and 250 were also done on
the hip hop night which revealed that this group had the highest number of first time
visitors, they were the highest percentage of one night visits to the festival and overall
reinforced what we already understood about our customer base. Linda noted we will
continue to analyze the data and will use it to strategize for the upcoming year. This was
our first year with Capital Research and it has been encouraging to have additional
resources to reinforce our findings. Linda noted a focus group was also held with Capital
Research Services and various local small businesses. It was determined by those present
that Common Ground does have a positive effect on the community and they also
noted that if they were approached they would contribute to the festival monetarily. We
are currently developing a small partnership i.e. "Friends of the Festival" for next year.
LEPFA Board of Commissioners Meeting
Page 5
September 28, 2004
Patrick commented that the data also indicated that 30% of the tickets were purchased at
the City Market. It was also interesting to note that all the respondents remembered that
GM was the title sponsor. Total attendance was about 90,000. Marian reported that the
annual one sheet summary information page will be forthcoming. Linda noted from the
information she reviewed she will now be completing the Ingham County and CVB grant
reports so that we can receive final payment. We are beginning our Common Card
("Common Grounders") renewals as well as the Common Club renewals and our
sponsorships which will utilize the data in their recaps. Patrick noted we are compiling
the final numbers and he also indicated that Kevin Meyer has been in China which has
impeded our progress and Marian has fewer staff members to assist with the report.
Commissioner Butler suggested that we might want to, if we possibly can, set up a time
line for next year for the final report.
3. Union Report: Patrick was happy to report that we have reached a tentative agreement
with the UAW and the Food and Beverage Workers which needs to be ratified by the
Union. All indications are positive that they will accept the three year agreement.
4. Lansing City Market: Linda Frederickson reported that July Rent Revenue was up and
we are heading into the fall harvest season. Paul Turpstra, is a new Saturday vendor that
sells jerky. Entertainment will continue through the first of October. On September 11
the Market hosted the fall "Adopt a River" event, and on September 25 the City's compost
bin sale took place at the Market. Upcoming events include the "Harvesting Hope Fall
Festival" on October 23 and they hope they will have a busy Saturday with the Breast
Cancer Walk on Saturday. Commissioner Butler questioned how Dominic Carbone
is doing at the Market? Linda noted that he seems to be doing fine and she will be meeting
with him soon. Linda reported that he has been implementing a number of
independent marketing strategies which include building his catering business and he has
set up a delivery and order system and continues to be open for six days(Monday through
Saturday). Linda noted that his manager has been off due to a broken ankle and she should
be back in October which should help the operation. Commissioner Kris Nicholoff
reported that his office has been using Schnitz often for lunch meetings and the staff
likes the proximity, it was good, and that they do a great job.
Sandy Allen noted that we need to begin discussions about the City Market. She noted that
it has been a "sacred cow" for many, many years and the City's contribution has been
close to $80,000 per year and that as the paper indicates this morning the "worse case
scenario" is $4-5 million in the hole for the City and they have got to look at ways to cut
expenses. She recalled 30-40 years ago when the Market was so crowded that visitors
couldn't move, but that is no longer the case. She noted she visits the Market 2-3 times
per week and talks to the vendors and they try to remain positive, but the fact is that they
are barely hanging on and she thinks it is time for the Council and the Commissioners to
give some serious thought to the future of the City Market.
Commissioner Nicholoff noted while the discussion is not new, it is appropriate and more
politically acceptable when there is a bottom line that is suffering. And it is good to make
a controversial change when you are hurting financially(in his experience). He noted that
he didn't feel it was anything good or bad, buy that it is a timing issue.
LEPFA Board of Commissioners Meeting
Page 6
September 28, 2004
Councilmember Allen noted that the land it is on is valuable economically and suggested
that some vendors would be more profitable in stalls downtown and that they would
provide a powerful ambience to the city. She noted that these are all things that havebeen
talked about before, but now is the time for serious discussions. Commissioner
Nicholoff noted that a key point is that when talks begin, that it doesn't mean that anyone
is discussing getting rid of the Market concept, but could mean a new building or a
new location. Patrick thanked Councilmember Allen for her comments and noted that he
is here to talk and hear what the City and Council has to say as well as the Board's
comments as we examine the future of the Market.
5. Oldsmobile Park: Patrick reported that we hosted three movie nights comprised of
"Harry Potter 3," "Shrek and Shrek 2," and "Garfield." He noted this series was the
second most successful series we have had since the inception of "Park After Dark"and
we have received positive feedback from patrons. Yesterday we began building Fright
Night and once again the carpenter's local is providing 14 journeymen to build Fright
Night for us as a sponsorship which should be done by the end of this week. This year's
theme is "The Psycho Path- Where Will It Lead You?" and will open on Friday, October
15 and he invited everyone to attend.
Patrick noted we are working with the City and the Lugnuts on extending the TMO
Agreement and we have had some very positive dialog and are moving forward with the
team and the City and are doing an operational audit with the architects who developed the
ballpark. They will look at every system and structural item and will develop a report that
will let us plan for the future and be able to address capital items with the team
collectively. The team is also putting in a new scoreboard which will be a $450,000
investment and they are paying for it completely, and it should be up by December. The
City will also be putting in a new playing surface which will be grown by Michigan State
and installed at the end of the 2005 season and will be ready for the 2006 season.
Commissioner Butler questioned the cost of the field, Patrick noted it will be about
$100,000 and will include fees and equipment. He explained that it is less costly to have
MSU grow the field and that we have one of the top experts in the nation in Trey Rogers.
Also include in the cost is reworking parts of the sprinkler and drainage systems. Patrick
noted that the extension to the TMO is hoped to be worked out by this spring.
Commissioner Nicholoff asked if the screens are capable of projecting like big screen TV's
similar to the systems at the Ryder Cup? Patrick noted that the new screens will be at that
level and they are using some of the same technology that is used in the Common Ground
boards and you will be able to view it in the daylight. The screens should be in by
December. Discussion ensued regarding the$450,000 cost and the life of the scoreboard.
At 9:05 a.m. Sandy Allen exited the meeting.
Councilmember Leeman noted members of the Old Timers Association have mentioned
amenities that are no longer at the stadium such as the lack of ushers, cleaning off the
seats, security that the Lugnuts provided initially. He suggested that it would be in the
interest of the various organizations to get feedback from groups in order to determine the
various issues that need to be addressed. He also noticed that some of the suites are
lacking the "no beverages on the ledges" signs in the suites.
LEPFA Board of Commissioners Meeting
Page 7
September 28, 2004
6. Lansing Center: Patrick reported that for the month of July we were up in attendance by
5,200; up in room nights by 143 and up in economic impact by $85,000 compared to
July 2003.
• Sales Update: Patrick reported that for the 2004-5 FY we have 25 definite weddings
and 8 prospects. We have issued contracts for "The Michigan Council of Teachers of
English" for 1,000 people for their conference on October 8, 2005. He also noted
that Marian Bryant had a social event last weekend here at the Lansing Center. A
proposal has been submitted for Spartan Motor Chassis for August 4, 2006 which is
a group that left the Lansing Center and is returning. We have submitted a proposal
for the Michigan Association of Pupil Transportation for October 2006 through 2009
(we are working with the CVB on this proposal and it is looking positive). We have
submitted a proposal for Michigan Lands Use Summit. CVB leads include the Boy
Scouts of America for July 25-28, 2006; and a proposal has been submitted for the
International Brotherhood of Magicians for July 1-6, 2008, which will have room
rental of over $18,000 and a lot of food and beverage.
• Facility Highlights: Patrick noted that in August/September we hosted the Boat
Show. September 11 we held the "MSU Ice Breaker," which was an after party
with Josh; attendance was down slightly at 2,800; overall it was a positive night
with no issues. For the first time we hosted the "Michigan Gift Basket
Association" and they held several workshops and a tradeshow and are looking to
return next year. September 18-21 we hosted the Michigan Association of
Realtors and it was the first time the event was at the Lansing Center and they
had 1,200 attendees over three days and the group had positive things to say
about the city. September 22 Toys R Us held a district expo in Hall B and they
donated all the toys to St. Vincent's Home for Children.
• Upcoming Events: Upcoming events include on October 5-7 Michigan
Optometric; J. Mollema Trade show will be in House October 10-13; and
October 24-28 we have the return of Spartan Stores after having been in Grand
Rapids. October 31 the Giant Motorcycle Swap Meet is scheduled, this is a new
event that has been added in addition to their winter event.
E. TRANSITION COMMITTEE: Chairman Haggart noted that we have received proposals
from the search firms for the President and CEO position. Patrick distributed copies and
Chairman Haggart asked the Board members take a few days to review the proposals and then
the Transition Committee will meet. Chairman Haggart asked that any comments be
forwarded to Heidi and she will forward them to the committee.
F. PERSONNEL COMMITTEE: No report.
G. LONG RANGE PLANNING COMMITTEE: No committee report. Patrick asked that a
Committee member meet with him, Tim Offtermatt and Glenn Kirk; Commissioner Janssen
indicated he would attend. Discussion ensued regarding the Eagle Eye Golf Course and its
potential competition in terms of wedding and social business. Commissioner Butler noted that
if we know they are focusing on weddings and social activities, it would be a part of our social
responsibility to come up with a marketing strategy to indicate that we do have a niche market
and compare our services to theirs.
LEPFA Board of Commissioners Meeting
Page 8
September 28, 2004
Patrick noted that we did do that with our wedding package. He explained that one year ago we
had 16 weddings booked and at that time we reviewed our wedding package and analyzed the data
and made changes. He noted it is not only Eagle Eye, he just received a mailing that Western
Michigan University - Lansing campus is also renting their classroom space and so we have to
keep coming upwith new marketing. Linda noted with all of the competition, it is more apparent
that we have to keep freshening up our building, i.e. new carpet, etc. to stay competitive. Eagle
Eye is also building a hotel and Patrick noted he will follow up on when that is slated for
construction/completion.
At 9:19 Jim Ruff exited the meeting.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Marian Bryant: Marian noted that she did have a social event here and the food was wonderful
and the service was great and it was a great event.
B. Linda Frederickson: Linda noted that she has comp tickets for the "Book and Paper Show"
this weekend if anyone is interested.
C. Commissioner Denise Wootton: Commissioner Wootton noted that there have been Market
rumblings which are unfortunate because it makes the vendors nervous and every time it
happens it is hard to plan for the future when you have that ax over your head. Commissioner
Wootton note that it is time to either do it, or shut up because it just hurts the Market in the
long run and makes it tough to do business for the vendors when you are wondering from one
day to the next whether you will have a business and it doesn't help the city. She noted soon
there will be no one left because the long time vendors are having health issues and in the eight
years she has been there "the rumor" has circulated about once a year. She also noted why
should the vendors put money into their future when they don't know what is going to happen
and it makes it harder to attract business. So how do you make it pay if you keep cutting the
legs out from underneath them?
D. Councilmember Harold Leeman: Councilmember noted that the Market is in his ward and he
supports the Market and the Lansing Center, and noted that there is an entire chronology of
events that would have to happen and the voters would have to have a say in that property.
Commissioner Wootton noted that is the exact talk that undermines the Market. Commissioner
Butler clarified that the vendors that are there want to stay there although Councilmember
Allen stated that the vendors were hardly making it; Denise noted that is an accurate statement
with the exception of a few vendors, it is hard to make it; which was the purpose of her
comment that when you are barely making it and there is all of the discussion under minding
the Market it doesn't help. Councilmember Leeman stated that he is aware that we are all
doing what we can to make it a viable operation. Commissioner Nicholoff noted that he did
not feel that anything that Sandy said was negative, but that it is business and if we can help
people in the Market do better business, that's what his goal would be and is what he believed
Sandy's goal would be. He noted that it needs to be looked at as business and that government
is not charity and during these tough economic times it needs to be viewed as business and not
personal. He noted if it was booming no one would talk about it and because it is not booming
due to the underlying comments over the years, which are inherent to a government owned
facility. Commissioner Nicholoff noted further that government is transitional and these things
are discussed with new ideas, again which is inherent to a facility owned by government, and
LEPFA Board of Commissioners Meeting
Page 9
September 28, 2004
it won't go away. He noted that he is viewing it as business decision; however, let's help
the people there make money and give the people in and around the city a reason to go
there. He noted that he did not feel that Councilmember Allen said anything negative, but
the Market had been viewed as a "sacred cow" which was inherit to government again,
and there isn't a better time to explore "sacred cows" than during tough economic times
because then people do understand.
Commissioner Janssen noted for the Board it is difficult to know what our role is because when
we were given the City Market as our responsibility we felt we had to do the best job as long
as it is under our Authority within our budget. So when Council and/or the City suggests that
they and LEPFA ought to explore what to do with the City Market, ultimately the final
decision is up to the Council and the Mayor to determine what they want to do with the Market
and the budget and we will work within that decision. Commissioner Janssen noted he is
100% sympathetic to Denise's situation and the other vendors from a personal standpoint. He
noted from a Board standpoint if they want our opinion on how to spend the subsidy he would
be willing to share an opinion, but at this point the City Council and the Mayor's office have to
say what they want to do and until they do, we will keep doing the best job that we can.
Patrick noted we are going to do the best we can while we have the Market and is why we go
after new vendors and do what we can to help the Market.
Commissioner Butler noted that he agreed with Commissioner Janssen in that our job is to
manage and not necessarily to set government policy, which is the Mayor and the elected
officials' responsibility.
E. Commissioner James Butler: Commissioner Butler noted that he also wanted to say to Bill
Grove in reference to the event held on September 25 that not only was his group very cordial,
the food was very good and they did a super job. Commissioner Butler inquired about Jim
Wootton's status. Denise noted he will undergo chemotherapy through December.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:40 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, OCTOBER 26,2004 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 26, 2004
MINUTES
At 8:10.m. Vice Chairman Sharon Peters 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, Glenn Kirk (Ex-
officio), Sharon Peters, Jim Ruff(Ex-Officio), Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Tim Haggart, Cyril McGuire, and Kris Nicholoff.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, and Patrick Talty-
Lansing Entertainment and Public Facilities Authority. Jim Carra, SearchWide .
Vice Chairman Peters indicated that she was filling in for Chairman Tim Haggart today and she also noted
that Commissioner McGuire is in the hospital, and that we wish him well and that we have sent flowers on
behalf of the staff and the Board. Commissioner Kris Nicholoff is absent today as well.
III. ESTABLISHMENT OF THE AGENDA: Vice Chairman Peters requested that the Transition
Committee report be moved up before the Finance Committee report.
IV. PUBLIC COMMENT: There were no comments.
V. APPROVAL OF THE MINUTES OF SEPTEMBER 28, 2004:
The minutes of September 28, 2004 were adopted as presented. MOTION: Commissioner Butler
SECOND: Commissioner Sinadinos
Commissioner Janssen indicated that upon reviewing the minutes, his understanding was that the
Board had authorized the Transition Committee to meet and to select a consultant within a
reasonable cost frame to actually begin the search and authorized them to expend those funds and
which was not reflected in the minutes. Vice Chairman Peters indicated that was her impression as
well. Marian noted that it was her recollection that the committee was authorized to secure a
contract and engage the consultant; however, when the Board spends in excess of $15,000 it
requires a vote of the Board. Patrick clarified that the approval was reflected in the August
minutes. The minutes were approved as submitted.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Vice Chairman Peters noted that we are in very special times at
LEPFA and are in a different time than when we met last because we are without our former
CEO, Peter Sullivan, and we now are losing our Interim. Patrick has notified the Board that
he will be joining Peter in Phoenix, which brought a new urgency to the Transition Committee
and our Chairman has moved to the fore by spending more time with staff and has been in
contact with all of the Commissioners as well as the Transition Committee. The Committee
met and reviewed the Search firms' specs, took bids, narrowed down the bids, met with the
potential firms, and come before the Board today with a recommendation to utilize
SearchWide.
At 8:20 a.m. Glenn Kirk entered the meeting.
LEPFA Board of Commissioners Meeting
Page 2
October 26, 2004
B. TRANSITION COMMITTEE REPORT: Commissioner Charles Janssen explained that the
list had been narrowed down to the top four contenders and they were George Astengo who
helped bring Tom Galyon and Peter Sullivan on Board; SearchWide who is located in Traverse
City and two other organizations and the unanimous overwhelming choice was SearchWide.
Commissioner Janssen noted not only was the committee impressed with the materials
presented, but with their experience with convention centers and CVBs, etc., their size, and
the cost was similar across the board (approximately $25,000), with a placement guaranteed
for two years. Commissioner Janssen noted that it was a good interview process and we were
able to ask questions. He noted that the committee strongly recommended SearchWide for the
executive search. Marian indicated that the company will also receive 25% of the final
compensation as well. Commissioner Butler agreed with Commissioner Janssen's comments
and he noted that SearchWide was very responsive, the documentation was very clear and they
were very professional and had an extensive list of placements. He also addressed the issue of
diversity and travel expenses, and he knew his area and was very confident and clear.
Commissioner Butler noted that the decision was unanimous. Vice Chair Peters noted Mr.
Carra is located in the state, and was able to join us today to address the various community
stake-holders as well as our partners. Commissioner Janssen moved that the board retain
SearchWide for the executive search; Commissioner Butler second the motion; the motion was
unanimously carried. Vice Chairman Peters noted that the Transition Committee was also able
to address the need for an interim to replace Patrick.
At 8:28 a.m. Jim Carra entered the meeting.
Vice Chairman Peters welcomed Jim and SearchWide as our search firm. Jim introduced
himself and SearchWide explaining that he is located in Traverse City. Jim reviewed the
company's most recent placements. Appointments have been set with Mr. Carra and the
Board, and he offered to meet via the phone as needed. He explained that the information
gathered from interviews will help to develop a profile and position overview will be developed
for the candidates. Jim Carra will personally interview the candidates and will check
references, with 5-7 candidates to be recommended to the Committee for review and then
personal interviews will be conducted. He is aware of LEPFA's immediate need due to
Patrick's departure and will include as many candidates from diverse backgrounds Board.
Introductions were made and the floor was opened to questions. Vice Chairman Peters
clarified that a full search committee would be interviewing the candidates, and would include
the Board and other entities from within the community. Mr. Carra noted that they will put
together a "marketing campaign" for this position,but it will mostly consist of active recruiting
and it will be posted on the various industry web sites. Jim Ruff asked if it is typical of CEO's
to bring other people with them, given the vacancy of Patrick's position. He noted his
concern was for existing staff and other organizations, and asked what might typically happen.
Jim noted that would be an individual conversation between the Board and the candidate.
Vice Chair Peters noted in terms of the timeline, it looks realistic to be placing someone by
the beginning of February. She also noted that it is possible to move the time line ahead due
to the heavy load that staff has which was clear after meeting with them. Mr. Carra explained
that it is often used an opportunity for the new leader to come on board and to be able to have
an influence on some of the key hires.
LEPFA Board of Commissioners Meeting
Page 3
October 26, 2004
Jim Ruff asked if any of the individuals would be associated with management firms (i.e. Grand
Rapids). He asked if Mr. Carra would consider firms as well as individuals. Mr. Carra noted that
would be a policy decision of the Board; however he would be in search of a person for the
President& CEO position. Sharon Peters clarified that the firm would search as we direct them
and that the committee has been operating in concert with the agreements that are in place with the
Authority and the City as to how downtown facilities should operate. She noted that copies of the
Operating Agreement are available. Glenn Kirk requested a copy of the agreement, noting that he
had similar concerns about the search as well; he stated that as we begin our search for an
individual, is it time to look at doing something like Grand Rapids? He noted he did not know the
answer. At 8:53 a.m. Jim Carra was excused from the meeting.
Vice Chairman Peters, noted in regard to the interim situation, Patrick's departure was not
anticipated when the Board last met, and she noted that his last date is November 14. The
Transition Team looked at how to handle that piece and they had a discussion as well as meeting
with the top available staff. She noted that the Transition Committee wants the Commissioners to
be comfortable with the idea that the Transition Team had on how to handle the interim. At 8:55
a.m. the LEPFA staff members were asked to exit the meeting.
The Transition Committee members present (Sharon Peters, James Butler and Charles Janssen)
reviewed the steps that had been taken and the options that had been reviewed regarding interim
management of LEPFA from the time of Patrick's departure until the new President & CEO is
appointed. The Transition Committee had solicited input from a number of sources including Peter
Sullivan, Patrick Talty, and the four executive search firm representatives.
Commissioner Peters, Butler and Janssen all summarized their involvement and discussed a
meeting held with a number of the senior LEPFA staff members to obtain their input about the
strengths, weaknesses and needs of the current staff. The Transition Committee stressed the value
of the senior staff's input to evaluate the options. They noted that the senior staff was doing a great
job and they are all busy, and although capable of taking on additional challenges, their workloads
just do not allow for any additional time to be devoted to additional duties. Janssen, Peters, and
Butler indicated that one option being considered was hiring Mike Barber of Venue Management
Solutions, LLC, who had previously managed LEPFA for an interim period before Peter Sullivan
was hired. A lengthy discussion occurred regarding Mr. Barber's background and qualifications
and the experiences Board members and staff have had with Mr. Barber. Commissioners Butler
and Sinadinos had positive working relationships and impressions of Mr. Barber from the prior
transition. After lengthy discussion, it was unanimously agreed that Mike Barber would be
appropriate for the Interim President and CEO position.
Discussion ensued regarding budgeted salaries for Peter and Patrick compared to the amount
needed to retain Mike Barber for three(3)months. It is the Board's desire to retain Mr. Barber at
the most reasonable rate possible, but they believe that the cost would definitely be less than the
amount budgeted for Peter and Patrick's salaries and benefits. Commissioner Janssen moved that
the Transition Committee is authorized to retain Mike Barber and his company, Venue
Management, LLC as an independent contractor for a 12 week period at a rate not to exceed
$3,500 per week. The contract with Mr. Barber will also include LEPFA's payment of up to four
(4) round trip flights to Florida, long term extended stay housing during his time in Lansing, and
miscellaneous additional benefits such as the use of a vehicle. The motion was second by
Commissioner Butler and unanimously approved.
LEPFA Board of Commissioners Meeting
Page 4
October 26, 2004
At 9:25 a.m. the LEPFA staff members were asked to return to the meeting.
Vice Chairman Peters reported that the Commissioners have affirmed the offer to Michael Barber
to serve as interim LEPFA Director for a period of three months. She noted that the sentiment also
of how valuable and assuring it is to the Commissioners that the staff in place is of the high caliber
that they are and are able to keep us functioning, and that the Board and the partners of the City
have offered to be available to provide extra time to focus on LEPFA. A meeting with the full
Board and staff will be scheduled for Tuesday November 2, with a confirmation to be forthcoming.
C. SECRETARY/TREASURER'S REPORT:
1. FYE 2004/5 Audit: Committee Chairman Sinadinos noted that the Board members should
have received a copy of the final audit, noting that some of the wording has changed, but
not the numbers. She opened the floor to questions and moved that the audit be accepted as
presented. Support: Commissioner Jeffries, the motion was unanimously approved.
At 9:40 a.m. Jim Ruff and Charles Janssen exited the meeting.
2. Act 99 Resolution: Marian noted that after our last meeting, Glenn Kirk expressed some
reservations about allowing us to have a million dollars under the City's Act 99 and he
asked us to reconsider the amount we needed for Act 99 currently to move forward and we
have come up with$642,000 of equipment and items that we need including the carpet and
the wall, which is $381,000, and HVAC upgrades, engineering services for a fix in the
foundation($28,000) and a riding vacuum at$10,800 which totals to$642,046. Mr. Kirk
felt that this was a workable amount. Marian asked that the prior resolution be amended
to reflect the change in the equipment requested,and the amount requested to$642,046.45.
A motion to accept the resolution was made by Commissioner Sinadinos; second
Commissioner Jeffries, and it unanimously passed. Commissioner Wootton asked how
we will proceed with the other items, and it was noted that they will be requested in a
future resolution. Mr. Kirk explained that originally he thought LEPFA had their own Act
99 fund that they could borrow from. Once he understood that Act 99 is all of the City's
obligation he then had to consider how LEPFA's request prioritizes with the other items
and asked LEPFA to re-consider their immediate needs and then come back and make
another request which he will support. The motion carried.
3.Monthly Financial Statements for the Periods Ending August 30, 2004 and September 30,
2004: Committee Chairman Sinadinos reviewed the financial statements as follows:
a. Lansing City Market - August 30, 2004: Building Rental for the current period is
$5,368 which is up over the previous year's amount of $4,299. Year to date Building
Rental is $11,023 which exceeds the prior year's amount of$9,418. Total Revenues for
year to date are $11,093 compared to $9,668 for the prior year. Under Operating
Expenses - Salaries and Wages for year to date are $7,728 compared to $6,666 for the
prior year. Utilities for year to date are$5,916 compared to$5,986. Insurance/Bonding
is down at$411 compared to the prior year's$754. Total Operating Expenses are$21,195
compared to $20,391for the prior year. The Operating Loss for year to date is($10,101)
compared to ($10,722) for the prior year.
LEPFA Board of Commissioners Meeting
Page 5
October 26, 2004
After taking into account the City Contribution and Interest, we have income of$5,749
compared to last year's amount of$9,463.
The cash position is down at$41,535 for the current year and compared to the prior year's
amount of$94,662, and reflects loans to the Lansing Center and to Common Ground.
Under Budget versus Actual, Building Rental for year to-date is better than what was
budgeted by $1,118. Total Operating Revenues are better than budget $1,068.
Under Operating Expenses - Salaries/Wages are better than budget by $1,018.
Utilities are better than budget by $585. Total Operating Expenses for the current
period were better than budget by $2,063 and for year to-date they were better than
budget by $4,088. After taking into consideration the City Contribution and Interest
we are better than budget for year to date by $5,001 and after adding in depreciation,
we are better than budget by $5,300.
b. Oldsmobile Park- August 31, 2004: The Event Revenues are $11,237 and are
comprised of"Park After Dark" movies and a charity baseball game. Expenses for the
events are $9,723 for an Event Income of$1,514 which was applied to the Event
Development Fund. Under Expenses, Utilities for year to date are $9,793 compared to
$9,419 for last year. Insurance/Bonding for year to date is $6,255 which exceeds the
prior year's amount of$11,488, which is down by $5,200. Maintenance of Facilities
for the current period is $7,239, which consisted of work on the HVAC system and the
grounds. Excess Revenues over Expenses for year to date are $3,251 compared to the
prior year's income of$2,828.
At 9:50 a.m. James Butler and Glenn Kirk exited the meeting.
Total Cash is down at $223,084 for the current year compared to $344,532 for the
prior year. The difference is because we have not received the allocation. The Event
Development Fund is $71,646 which is up compared to the prior year's amount of
$66,255.
Under Budget versus Actual - Salaries/Wages were better than budget by $898.
Utilities for year to date are higher than budget by ($805). Insurance/Bonding is better
than budget by ($4,910). Total Operating Expenses are better than budget by $6,114.
After taking into consideration the City Contribution and the allocation in interest, we
are better than budget by $3,327.
c. Lansing Center- August 31, 2004: Building Rental for the current period is$36,070,
which is less than the prior year's amount at $40,000; year to date Building Rental is
$49,730 compared to the previous year's amount of$53,245. Food and Beverage for the
current period is $144,543 compared to $111,863 for the prior year and the year to date
figure is$239,614 compared to$161,655 for last year. Equipment Rental for year to date
exceeds the prior year to date at$46,601 compared to$29,768. Total Operating Revenues
exceed the prior year's year to date at$355,566 compared to$280,945. Under Operating
Expenses, Salaries/Wages for year to date are $240,517 compared to $230,380.
Professional Services are at $28,493 compared to the prior year's amount of$40,015.
Utilities are up slightly at $96,458 compared to $94,314.
LEPFA Board of Commissiuners Meeting
Page 6
October 26, 2004
Total Operating Expenses for year to date are $755,032 compared to the prior year's
expenses of$741,772 for an Operating Loss for year to date of($399,465) compared to
the prior year's loss of($460,826). Taking into account the City Contribution and Interest,
we have a loss of($258,568) compared to the prior year's loss of($348,887).
After totaling Cash and Cash Equivalents we have$136,852 compared to the prior year's
amount of$112,832. Under Liabilities-Unearned Advanced Rent, for the current year is
$385,270 exceeding the prior year's amount of$316,123.
Under Budget versus Actual — Building Rental variance for year to date is better than
budget by $2,976. Food and Beverage was better than budget by $4,612. Equipment
Rental is better than budget by$35,956. Total Operating Revenues for the current period
are better than budget by $20,666 and for year to date they are better than budget by
$41,671. Under Operating Expenses Salaries/Wages are better than budget for year to
date by$5,246. Utilities were better than budget by $2,859. Insurance and Bonding was
better than budget by $5,889. Food and Beverage expense is higher than budget by
($10,598). After netting revenues against expenses, we are better than budget by$53,554
for year to-date. After taking into account the City Contribution and Interest, we are
better than budget by $47,368.
At 9:55 a.m. Ellen Jeffries exited the meeting.
d. Lansing City Market— September 30, 2004: Building Rental for the current period
was$5,090 which is more than the prior year's current period of$4,562; year to date it is
at$16,113 compared to$13,980 for the prior year. Total Operating Revenues for year to
date are$16,218 which exceeds the prior year's amount of$14,265. Operating Expenses
— Salaries/Wages are similar for year to date at $11,255 compared to $11,908 for the
prior year. Utilities are less for year to date at $8,916 compared to $9,091.
Insurance/Bonding is less at$617 compared to$1,132. Total Operating Expenses for year
to date are$30,286 compared to$33,292 for an Operational Loss year to date of($14,067)
compared to last year's loss of($19,026). After taking into account the City Contribution
and Interest, we have excess revenues over expenses of$9,712 compared to last year's
amount of$11,259.
Cash is down at$45,653 versus $92,090 which is a reflection of the loan to the Lansing
Center and a loan to Common Ground.
Operating Revenues are better than budget by $1,702 for year to date. Total Operating
Expenses are better than budget by$7,305. After netting expenses against revenues we are
better than budget by$9,008 and after adding in the City Contribution and Interest, we are
better than budget by $8,777.
e. Oldsmobile Park-September 30, 2004: Event Revenues are$11,409 and are comprised
of Park After Dark. Event Expenses are $7,523 netting us $3,885, which applied to the
Event Development Fund. Utilities are up slightly at $14,879 compared to $13,253.
Insurance/Bonding is down for year to date at$9,383 compared to $17,232 for the prior
year. Total Operating Expenses for year to date are$61,000 compared to$65,560 for last
year. After adding in the City Contribution and-Interest, we have excess revenues over
expenses of$9,605 compared to a loss last year of($5,293).
LEPFA Board of Commissioners Meeting
Page 7
October 26, 2004
Cash is down due to not having received the allocation and we had less events compared to
the prior year. Total Cash is $158,898 compared to $315,430 for the prior year. The
Development Fund is up at$75,532 compared to $59,931 for the prior year.
The Operating Expenses are better than budget for the current period by$13,730 and year
to date we are better than budget by $19,845. After taking into account, the City
Contribution, Interest and the under funding by the City of Lansing we are better than
budget by $15,709.
f. Lansing Center - September 30, 2004: Building Rental for the current period is
$50,147 compared to the prior year's amount of$70,712 which is due to a different mix of
events. Total Operating Revenues for the current period are $418,419 compared to
$350,516 for the prior year; for year to date the figure is$773,986 compared to$631,462.
Under Operating Expenses - Salaries/Wages for year to date are $390,072 compared to
$390,002. Utilities exceeded last year at$151,454 compared to$137,756. Total Operating
Expenses for the current period are $455,010 compared to $459,654 for the prior year;
year to date expenses are$1,210,043 versus$1,201,426 for the prior year. We have a net
loss of($224,729) compared to ($402,078).
Cash and Cash Equivalents are at $90,480 compared to the prior year's amount of
$159,789. Unearned Revenue - Advanced Rent is at $379,732 compared to the prior
year's amount of$353,939. Unreserved Equity is $9,057 compared to the prior year's
amount of$24,742.
Our Building Rental is less than budget by ($8,208) for year to date. Food and Beverage
is better than budget by $42,730. Equipment Rental was better than budget for year to
date by $27,898. Total Operating Revenues are better than budget for the current period
by $20,191 and the variance for year to date is better than budget by $61,863. Total
Operating Expenses for the current period are better than budget by$4,493 and for year to
date they are better than budget by$16,375. After netting expenses against revenues, we
are better than budget by $78,238. After taking into account the City Contribution, City
under funding, and Interest we are better than budget by $68,943.
Finance Committee Chairman Sinadinos moved that the monthly financials for Oldsmobile
Park, the Lansing City Market, and the Lansing Center for the periods ending August 31,
2004 and September 30, 2004 be received as published, and further that the monthly
expenses for each entity be approved. SUPPORT: Commissioner Wootton, the financials
were approved as submitted.
D. TRANSITION COMMITTEE: No further report.
E. PERSONNEL COMMITTEE: No report.
F. LONG RANGE PLANNING COMMITTEE: No report.
LEPFA Board of Commissioners Meeting
Page 8
October 26, 2004
VII. COMMISSIONER AND STAFF COMMENTS:
A. Denise Wootton: No report.
B. Charlotte Sinadinos: Commissioner Sinadinos noted that she is confident that things are
moving along smoothly, and that the Transition Committee is doing a wonderful job;
however, she hoped to be included in some of the meetings and that there will be further
communication with all Board members. Vice Chairman Peters noted that it is the Transition
Committee's plan when it comes time for candidate interviews that the meetings will be open to
the full Commission and other stake holders in the City. Vice Chairman Peters noted that
Linda does have copies of the job description and the org chart available and that they will be
included in the computation of the CEO profile. She asked Patrick to email the information to
the Commissioners that are absent as well.
VIII. INTERIM PRESIDENT AND CEO'S REPORT: Patrick Talty reported the following:
A. Common Ground: Patrick noted that we are working very hard on the numbers and they
appeared to be very positive compared to last year and that we will have netted more money
than last year and plan to reinvest it in the event. Linda Frederickson reported renewal notices
have been distributed for the "Uncommon Club" memberships. This Wednesday Common
Grounders will get the first opportunity to purchase Common Cards before they go on sale to
the general public and(their notice will go out tomorrow)they will have until November 22 to
make their purchases. Common Cards and gift cards will go on sale December 2 until the
festival. Festival dates are July 11-17 which has been confirmed with GM. Common Cards
will be $79 this year and there will be no service charge through TicketsPlus. Sharon Peters
noted it is good news that we will be ahead this year and asked if Common Ground
reinvestment is reflected anywhere in the financials. Patrick indicated that the Lansing Center
had capital investments in Common Ground for the first three years and that will be
replenished through Common Ground back to the Lansing Center and over time it is hoped that
the investments will be replenished.
B. Union Report: Patrick reported that the agreement with the UAW and the Food and Beverage
Workers has been ratified by the Union (it is a three year agreement). The only outstanding
contracts are with IATSE and the Technical Services division, and the Stagehands. The
Technical Services branch has filed with MERC to be de-certified from the Union and legally
we can't negotiate with them. To-date IATSE has not responded to our negotiation request.
C. Lansing City Market: Linda Frederickson reported that August and September Rent Revenue
was up as well as occupancy. Weekend entertainment continues and is scheduled through
November. This past weekend the City Market participated in the "Harvesting Hope Fall
Festival" on October 23. Upcoming events include "Silver Bells" on November 19 and the
Market will serve cider and will have Santas on hand as well as entertainment.
D. Oldsmobile Park: Patrick reported that Fright Night is taking place and we are on pace with
last year, but will beat last year's figures because we have one more night this year. Patrick
encouraged folks to stop by. He noted we have been working with the City and the Lugnuts
on three different issues.
LEPFA Board of Commissioners Meeting
Page 9
October 26, 2004
An audit is underway by HNTB and the cost($46,000) will be split between the Lugnuts and
the City, it begins on November 8 and the results are due the second week of December. He
noted the audit will be the planning tool to assist the City in negotiating a new lease deal with
the Lugnuts. Secondly the score board is almost finished, which was a$450,000 investment by
the Lugnuts. And last, the City is purchasing and installing a new field which is being grown
by MSU and the City will pay about$100,000(not including equipment). It should be installed
next fall and the new groundskeeper that the Lugnuts are hiring should be in place by then as
well.
E. Lansing Center: Patrick reported that for September Building Rental was down, attendance
was down, room nights and economic impact was up.
• Sales Update: Patrick reported he would send an email/memo out regarding the
Sales Update.
• Facility Highlights: Facility Highlights were distributed and will be emailed to
those who were not present
• Upcoming Events: Patrick noted we are hosting a new event with Kevin Meyer
and the Lansing Ballet Company in December in conjunction with the Lansing
Symphony Pops Show on December 11. We will host the Lansing Ballet
Company with the Symphony on December 12.
Patrick thanked the staff for their help and assistance and friendship over the past 3.5 years.
He also extended his thanks to the Board for the great opportunity, and he thanked Michael
Meyers and Peter for bringing him here. Patrick thanked the Board for their help and time and
all that they do for this organization. He noted he can't express his appreciation enough
for what they have done for him. Patrick stated that he will miss many aspects of Lansing, the
Board and the Staff, but not the weather.
Vice Chairman Peters thanked Patrick. She noted that we have to look forward, and the
Transition Committee has been working hard, but that does not detract from the sense that
organization has in sending Patrick off. She noted there will be a luncheon for Patrick as well
on November 12 at 12:30 p.m. and because many of the Board members were unable to be
here for this portion of the report, and noting the comments that they would have ordinarily
made, it is appropriate to have a separate good bye for Patrick. Vice Chairman Peters
expressed thanks on behalf of her colleagues and noted that whole Board will have more to say;
she thanked Patrick and wished him well and expressed appreciation for his work.
Vice Chairman Peters noted that the news about Common Ground is very exciting. She noted
in lieu of the thoughts of other regarding the transition, it appears to her that we will come out
of the transition very strong and while it is hard, it is an opportunity for something new. Vice
Chair Peter expressed appreciation on behalf of the Board for all that our good, strong staff
does, and for keeping things in such good shape right now.
LEPFA Board of Commissioners Meeting
Page 10
October 26, 2004
IX. OLD BUSINESS:
No report.
X. NEW BUSINESS:
No report.
At 10:25 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, NOVEMBER 23, 2004 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 24, 2004
MINUTES
At 8:01 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,
Glenn Kirk (Ex-Officio), Cyril McGuire, Sharon Peters, Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Jim Ruff(Ex-Officio) and Kris Nicholoff.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, and Patrick Talty-
Lansing Entertainment and Public Facilities Authority.
III. ESTABLISHMENT OF THE AGENDA:
Commissioner Sharon Peters indicated that she would have to exit the meeting prior to her 9:00
a.m. meeting with the Governor, and she asked that if there are any areas of discussion that may
required her involvement, that they be moved up.
IV. PUBLIC COMMENT:
There were no comments.
V. APPROVAL OF THE MINUTES OF JUNE 22, 2004:
The minutes of June 22, 2004 were adopted as presented. MOTION: Commissioner McGuire
SECOND: Commissioner Jeffries, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman James W. Butler III reported the following:
1. July 30 Press Release/Peter Sullivan's Departure: Chairman Butler noted that a press release
was distributed regarding Peter Sullivan's departure for the Cardinals' stadium as the GM in
Glendale, Arizona. Chairman Butler noted that in his opinion Peter did a super, super,job,
and that he moved LEPFA to another level, and he noted that he will miss him dearly.
Chairman Butler noted we held many recognition events for him which were extremely well
deserved.
2. Transition Committee Meetings: Chairman Butler indicated that Transition Meetings have
taken place. The first meeting took place on August 4 to discuss strategy and the process that
would be used, and Peter was a part of that meeting. Another Transition Meeting was held on
August 16 to map out the strategy and the Committee(with Commissioner Peters attending via
a conference call) with primary objective to move forward. Chairman Butler noted General
Motors, the Mayor and Councilmembers were all were present at Peter's farewell as well as
the various sponsors and he noted that Peter and the staff did a super job.
3. Lugnuts Game: Chairman Butler noted that on August 13 the Board members were invited to
attend a Lugnuts game and it was fun for all.
4. Operational Meetings: Chairman Butler noted that he has met with Patrick to discuss
operational and conversational issues which indicates that we are constantly moving forward.
LEPFA Board of Commissioners Meeting
Page 2
August 24, 2004
B. NOMINATING COMMITTEE REPORT: Committee Chairman Charles Janssen noted that
Tim Haggart has agreed to serve as Chairman; Sharon Peters as the Vice Chairman and
Charlotte Sinadinos as the Secretary/Treasurer. Committee Chairman Janssen asked for any
further nominations; there were no further nominations, therefore Chairman Janssen moved
that the Nominating Committee's slate of officers be accepted as presented. Second:
Commissioner Peters. The motion was unanimously carried.
At 8:10 a.m. Chairman Butler asked Commissioner Haggart to assume the Chairman's duties
and preside over the meeting. At this time outgoing Chairman Butler was presented with a gift
basket and plaque and thanks were extended to him by Patrick Talty for his second term as
LEPFA Board Chairman. Chairman Butler expressed his appreciation and noted that it was a
pleasure and honor to serve as the Chair for a second time, and he noted that the LEFPA
Board is one of the best boards that he has served on.
C. SECRETARY/TREASURER'S REPORT:
1. Monthly Financials (Draft) For the Period Ending June 30, 2004: Committee Chairman
Sinadinos reported that the financial are to be considered "draft" until the audit is
completed.
a. Lansing City Market: Building Rental for the current period is$9,214, which exceeds
the prior year's amount of$8,772 and for year to date the amount is$51,400, which is less
than the prior year's amount of$52,447. Parking Revenues for the current period are
$4,449 compared to $4,645, and for year to date the amount is $21,578 compared to
$27,162 for the prior year. Total Operating Revenues for the current period are $13,698
compared to $13,550 for the prior year, and year to date they are $73,458 compared to
$80,370 for last year, which is down about$6,900 and is due primarily to parking. Under
Operating Expenses - Salaries and Wages for year to date are $50,163 compared to
$47,923 for the prior year. Utilities for year to date are $42,458, which exceeds the prior
year's amount of $38,063, which is up by about $4,400 for year to date. Insurance/
Bonding for year to date is$4,122 which is more than the prior year's amount of$3,736.
Maintenance of Facilities for year to date is $11,915 compared to $6,591, which are
primarily the expenses for the new vendor. Total Operating Expenses for the current
period are $15,709, which is less than the prior year's amount of$16,828 and for year to
date Operating Expenses are$149,285 compared to$138,904 for the prior year; for a loss
year to date of($75,827) compared to the prior year's loss of($58,533). After adding in
the City Contribution and Interest we have a year to date loss of($6,257)compared to the
prior year's income of$14,200.
Our cash position for the year is $31,131 compared to the prior year's amount of
$62,798. Accounts Receivable are $145,547 compared to last year's amount of$124,287,
which is related to the loans to the Lansing Center and Common Ground. Unreserved
Equity is $166,286 compared to $172,543 for the prior year.
Under Budget versus Actual, Building Rental for the current period has a variance of
$275, and for year to date the figure is ($1,100) less than budget. Parking for the
current period is less than budget by ($816) and for year to date the variance is
($8,422). Total Operating Revenues for year to date are $73,458 compared to the
budgeted amount of$83,220 which was less than budget by ($9,762).
LEPFA Board of Commissioners Meeting
Page 3
August 24, 2004
Under Operating Expenses - Salaries/Wages were better than budget for year to date
by $4,755. Utilities were higher than budget by ($5,958). Maintenance of Facilities
was higher than budget by ($2,365). Insurance/Bonding was higher than budget by
$272. Our Total Operating Expenses were higher than budget for the current period by
$1,341 and for year to date they are better than budget by $7,020. Netting expenses
against revenues we have a variance higher than budget by ($2,741). After taking into
consideration the City Contribution and Interest, we are higher than budget by
($5,494). After factoring in depreciation we are higher than budget by ($2,822).
b. Oldsmobile Park: The Event Revenues for the current period, which consisted of
three Diamond Classic events and the Michigan Mile are $21,873 less than last year;
minus the Event Expenses of$7,743 we have an Event Income of$14,130, which was
applied to the Event Development Fund. Operating Expenses - Salaries/Wages for
year to date are $54,881 which is less than the prior year's year to date amount of
$56,380. Professional Services for year to date are $16,123 compared to $331.00,
which was attributed to the two audits that took place during the fiscal year. Insurance/
Bonding for year to date is $62,661 compared to $50,508 for the prior year. Total
Operating Expenses for year to date are $271,011 compared to expenses of$241,370
for the prior year. After taking into account the City Contribution and Interest, we have
a loss year to date of($30,034) compared to the prior year's loss of($2,028).
Total Cash for the current year is $16,012 compared to the prior year's amount of
$91,506. The Net Event Development Fund for the current year is at$70,154
compared to the prior year's amount of$72,276. Unreserved Equity for the current
year is $86,187 compared to $118,344.
Under Budget versus Actual - Salaries/Wages for year to date are $54,881 compared
to the budgeted amount of$57,273, which is better than budget by $2,391. Professional
Services for year to date are higher than budget by ($10,373) due to the audits. Utilities
for year to date are higher than budget by ($4,348). Insurance/Bonding is higher than
budget by ($5,661). Total Operating Expenses for year to date are $271,011 compared
to the budgeted amount of$269,069; which leaves us higher than budget by $1,942.
After adding in the City Contribution and Interest, we are higher than budget for year
to date by ($4,065). After figuring in depreciation we are higher than budget by
($13,259) and after taking into account the under funding by the City we are higher
than budget by ($28,188).
c. Lansing Center: Chairman Sinadinos reminded everyone that this year we had MSHDA
in June and the prior year it was held in May. She also noted Wally Byum didn't generate
income for the Lansing Center despite occupying all of the space; however, it was a good
community and public relations event. Building Rental for the current period is$54,759,
which is less than the prior year's amount of$67,819 and the year to date Building Rental
is$1,020,000 compared to last year's amount of$1,058,000. Food and Beverage for the
current period is $122,863 compared to $205,684 for the prior year and the year to date
amount is $2,666,000, which is less than the prior year's amount of $2,867,000.
Equipment Rental for year to date is $717,944 compared to $580,208. Trade Show
Utilities $188,487 exceeds the prior year's amount of$163,574. Labor Service for the
current year is $200,616 compared to $221,344 for last year. Total Operating Revenues
for the current period are $308,728 compared to $386,166 last year.
LEPFA Board of Commissioners Meeting
Page 4
August 24, 2004
Total Operating Revenue for year to date is $4,959,041 compared to $5,066,249.
Chairman Sinadinos noted that we are very close to the$5,000,000 mark and that it was a
very good year.
At 8:20 a.m. Glenn Kirk entered the meeting.
Under Operating Expenses - Salaries/Wages for year to date are $1,777,000 compared
to$1,811,000. Professional Services are $191,144 for year to date compared to the prior
year's amount of$238,277. Utilities for year to date are $583,728 which is less than the
prior year's Utilities of$611,706. Insurance/Bonding is$142,920 compared to$125,206.
Food and Beverage expense for year to date is$1,693,359 compared to$1,791,902. Total
Operating Expenses for the current period are $601,395 compared to $643,373 for the
prior year and for year to date the figure is $5,683,539 compared to $5,770,373. Our
Operating Loss for year to date is ($724,497) compared to the prior year's loss of
($704,123). After taking into account the City Contribution and Interest, we have a loss
year to date of($193,034) for this year compared to last year's amount of($24,236).
After totaling Cash and Cash Equivalents we have$349,250 for the current year compared
to the prior year's amount of$463,211. Under Liabilities - Unearned Advanced Rent,
which is an indicator of future business, for the current year is$282,481 compared to the
prior year's amount of $290,050. Unreserved Equity for the current year is $233,787
which is less than the prior year's amount of$426,821.
Under Budget versus Actual-Building Rental for the current period is less than budget by
$6,608; for year to date the amount is less than budget by ($33,640). For the current
period Food and Beverage was less than budget by($77,123) and for year to date it is less
than budget by ($84,262). Equipment Rental is better than budget for year to date by
$224,944. Security is better than budget by$27,155. Tradeshow Utilities are better than
budget by$48,987. Labor Service is better than budget by$46,416 for year to date. Total
Operating Revenues for the current period are$308,728 compared to the budgeted amount
of$349, 813 which is less than budget for the current period by($41,084)and for year to
date the figure is $4,959,041 compared to the budgeted amount of$4,739,500, which is
better than budget by $219,541.
Under Operating Expenses, Salaries/Wages for year to date are higher than budget by
($16,123); which is comprised of part time labor related to events. Fringes and Related
Costs are higher than budget by ($26,908) and is attributed to medical expenses.
Professional Services are higher than budget by($55,944). Utilities are higher than budget
for year to-date by ($2,708). Insurance/Bonding is higher than budget by ($10,320).
Total Operating Expenses for the current period were higher than budget by($75,096)and
year to date they were more than budget by ($233,826). After netting expenses against
revenues we are higher than budget by ($14,284.89). After taking into account the City
Contribution and Interest, we are higher than budget by ($28,298). After factoring in
depreciation we are higher than budget by ($13,402) and after figuring in the under
funding by the City, we are higher than budget by ($77,000).
LEPFA Board of Commissioners Meeting
Page 5
August 24, 2004
Finance 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,
2004 be received as published, and further that the monthly expenses for each entity be
approved. SUPPORT: Commissioner Butler, the motion carried.
2. Act 99 Financing: Chairman Sinadinos noted that everyone should have received and
reviewed the resolution to authorize "Act 99" purchasing. The Finance Committee has
reviewed the resolution and is recommending its adoption to the Board of Commissioners
and it will then be forwarded to the City Council for authorization.
Marian noted the outline for the review process and the attachment details the equipment
and infrastructure items that we propose to purchase under Act 99. Marian asked that the
Board authorize the purchase of up to $1,000,000 in equipment, which is outlined in
Exhibit A and will be purchased as outlined in the plan that was developed with Glenn
Kirk and details items that will be needed over the next few years. Marian noted that our
current plan calls for us to purchase the moveable wall for the ballroom, the carpet for the
ballrooms and meeting rooms, and the riding carpet extractor. She explained that having
advanced approval for future items would expedite the process and as such is asking for
approval to purchase all of the items; however only the items that have been outlined will
be purchased, and the City has approved as a part of the budget process$60,000 annually
to pay for the carpet and moveable wall. Patrick noted that the remainder of the purchases
may not occur for as far out as ten years, but we know that we will need the other items
with the expansion and it would make for a smoother process if the approval was already
in place and the Board will be notified as the purchases are made. Commissioner Butler
noted that upon review of the list, there are very large ticket items such as the moveable
wall, which is almost$400,000 and the carpet is $130,000 and both are needed for us to
be competitive and it is imperative that we do this on a real time basis, and he further
indicated his support of the resolution.
Glenn Kirk reviewed the list with Peter and Patrick and noted further that although there
are some large ticket items, he did not find anything that was extravagant for this type of
building/operation. He noted that we know we have to plan for both expansion and
replacement in order to stay competitive in the market and in order for us to one day hope
to be competitive and profitable we have to be seen as a class place to be and have to put a
good foot forward. Mr. Kirk noted that he would recommend that although we are
moving forward with the approval of all the items at one time, he felt it would be
appropriate that the Board would ask that approval be given by the Board before spending
funds on the additional items. He noted other than that, he fully supported the resolution
and felt it was the right thing to do. Chairman Haggart asked for a motion to accept the
resolution as presented, it was moved by Commissioner Janssen; supported by
Commissioner Peters. Commissioner Jeffries asked that the full Board approve additional
purchases moving forward. The motion carried.
3. Carpet Purchase: Chairman Sinadinos indicated that in July, 2001 carpet was purchased
for the exhibit halls, and it is revenue generating carpet that is used by parties that use our
facility. Chairman Sinadinos noted that in July, 2001 the cost of the carpet was$43,481
and during the three year period the carpet generated revenues of$559,600 and it needs to
be replaced and its time to reinvest in new carpeting.
LEPFA Board of Commissioners Meeting
Page 6
August 24, 2004
The Finance Committee approved the request to purchase carpeting for a price up to
$50,000.
D. INTERIM PRESIDENT AND CEO'S REPORT: Patrick Talty reported the following:
Patrick thanked Commissioner Butler for his past year of leadership and dedication.
1. Common Ground: Patrick reported that Kevin Meyer will join him at the September
meeting to present a report on Common Ground and we should have financial information
at that time as well. He noted that it looks very positive and he would be shocked if we
were not in the same positive status that we were at this time last year. He thanked the
Board for their support of the festival and he thanked the Board members that
volunteered (Charlotte Sinadinos, and Ellen Jeffries,) and the Board members who were
sponsors. Patrick thanked the City Departments as well as the City for sponsorship of the
festival, Kevin Meyer, and the LEPFA Vice Presidents who worked tirelessly to
make the event successful. Patrick thanked GM for their commitment, noting that without
them the festival would not be possible and he noted that it is a cast of many that make the
festival possible. Patrick indicated that we attracted nearly 90,000 people over the five
days and we had to use our evacuation plan for the first time on Tuesday night. The plan
has been in place for all five years and worked flawlessly. He noted we went to the
Gannon Building and the Parking Lot at LCC during Crosby Stills and Nash's
intermission. Patrick noted that the planning does work when we all work as a team and
the paper covered it positively.
2. Executive Session: At 8:40 a.m. Chairman Haggart asked that the Regular Monthly
Meeting be delayed to accommodate an Executive Session to discuss Personnel issues at
this time to accommodate Commissioner Peter's departure. Motion was made to
enter Executive Session by Commissioner Butler and supported by Commissioner
Wootton. Roll call was as follows: Yes: Commission Butler, Commissioner Haggart,
Commissioner Janssen, Commissioner Jeffries, Commissioner McGuire, Commissioner
Peters, and Commissioner Wootton.
At 8:55 a.m. the Executive Session and was adjourned and the monthly meeting was called
back to order. The roll call was as follows: Yes: Commission Butler, Commissioner
Haggart, Commissioner Janssen, Commissioner Jeffries, Commissioner McGuire,
Commissioner Peters, and Commissioner Wootton. At this time Commissioner Peters
departed from the meeting.
Patrick resumed the Common Ground report. He noted that in September we will
have more on Common Ground. He indicated that the Skybox sold out this year and
two corporate parties were held this year (Holt High School Class Reunion and Enterprise
Rent A Car). The Volunteer Wrap Up Party was held last week and he shared the
following: over 10,000 hot dogs were sold; over 270 rolls of toilet paper were used;
2,500 trash bags were used and the estimated economic impact after this year will reach
about $20,000,000 total for all five years. He also noted we had a couple attend Alice
Cooper from Australia.
LEPFA Board of Commissioners Meeting
Page 7
August 24, 2004
3. Union Report: Staff continues to meet with the UAW regarding the Food and Beverage
workers contract. Meetings have been held and we continue to move in a positive
direction.
4. Lansing City Market: Linda Frederickson reported that June and July Rent Revenue was
up for compared to last year and the occupancy was up as well. She noted the Market i
is preparing for the fall season. Special Events include the weekend Market Entertainment,
which continues through this weekend and has been ongoing on since May 1. The Market
participated in Common Ground and the Chili Cook off and will participate in the
"Harvest of Hope" fall festival in October.
5. Oldsmobile Park: Patrick reported that since the last meeting we have hosted the
"Hubbell Realty Hitting Homerun for Kids" event which is the second annual celebrity
softball game and they are looking to return next year. We also hosted our first set of
movies, which included "Mean Girls," "Scooby Doo 2," and "13 Going on 30" (it was
one of our biggest attendance weekends). Over Labor Day we will host"Park After Dark"
again and the movies will be "Harry Potter 3," "Shrek and Shrek 2," and "Garfield." In
mid September we begin set up for Fright Night and the theme is "Psycho Path." The
Lugnuts reached the playoffs which will begin on September 9.
Patrick noted positive meetings continue with the City, LEPFA and the Lugnuts regarding
issues such as capital expenditures and the future of the team. Commissioner Butler
asked where contract negotiations stand with the team. Patrick noted HNTB will perform
an operational audit of the ballpark and the cost will be split. Trey Rogers from MSU has
looked at the field and the playing surface is one of the issues. Patrick noted he and
Tom will be developing a list that they want the engineering firm to review and once that is
started the parameters of the lease (new or extension) will be discussed. Commissioner
Butler asked for the time line; Patrick noted we are trying to move quickly but at a
pace that is not negative for either party, nor are we rushing into anything so that all of the
ramifications are understood. They are moving at an aggressively cautious pace. Glenn
Kirk clarified that Tom gave a time line of the first quarter of next year.
6. Lansing Center: Patrick noted in the month of June last year we were down in
attendance by 4,000; down in room nights and down in economic impact. To-date, we
were down in attendance, but up in room nights by over 4,200 and up in economic
impact by about $380,000 which is impacted by the mix of events (i.e. Wally Byam
impacted room nights).
Sales Update: Patrick reported that since late July we have re-booked or issued 30
different groups contracts. For 2004-5 we had 23 weddings and for 2005-6 we have 5
definates and 7 prospects already. We have issued contracts to the Deer and Turkey
Spectacular; a contract has been issued for a new event which is a Landscaping
Contractors Student career day; Autowares has re-booked and we have booked three
different groups for monthly meetings. Farm Bureau has re-booked for their Business
Redevelopment Conference in October 2005 and space is being held for OrgPro Summer
Conference, they will be in Detroit in 2006 and we are being considered for 2007. We
are also holding space for the Addy Gala and the Lansing Ad Clubs monthly meetings.
LEPFA Board of Commissioners Meeting
Page 8
August 24, 2004
We are also bidding for the 2007-8 state meeting for the Kiwanis as well as the Non Profit
Association's Volunteer Super Conference's return. We are also holding space for the
return of the City of Lansing Diversity Conference in April.
Facility Highlights: Patrick noted in the month of June we hosted the Wally Byam
International Caravan Club and they had over 1,500 rigs and 3,000 attendees. They
had a great deal of positive press indicating that they donated blood, donated Teddy
Bears, collected cans and built homes for Habitat for Humanity. We had a Bead
Mercantile Show in July which will return in 2005. August 15 we hosted the Great
Lakes Feis Competition with 2,000 dancers and 1,200 spectators and they have booked
for the next two (2) years and the Mayor presented them with a proclamation making
August 15 the Great Lakes Feis Day in Lansing. We also hosted the Council of
Round/Square Dance Club in the exhibit halls. Mid-West Reps Association was a
group that we lost to Soaring Eagle and they have returned and we have rebooked them
for the next two years.
Upcoming Events: Upcoming events include on August 26 the Lansing School District
and August 27-31Triton Industries will be in house (the Pontoon Boat Show).
September 11 we will host the MSU Ice Breaker After Party; and September 19-21
Michigan Association of Realtors will be in house for their annual
convention/conference.
7. Operable Wall Update: Patrick noted we have chosen a vendor for the operable wall,
following the distribution of the RFP. Advance Equipment Wall Company was selected
and we are moving forward with them on the design and selection. We hope to have the
wall installed by the first of the year.
Patrick extended his thanks to Board for their support during this transition period and he
expressed thanks for all of the kind words and for the Board members' support.
E. TRANSITION COMMITTEE: Chairman Haggart noted that the Committee has met and has
decided to engage the services of a search firm to fill the President& CEO position. A draft
of the RFP has been distributed, and he asked that any changes be forwarded to Linda or Heidi
by tomorrow. Commissioner Janssen extended his thanks to Patrick for serving during this
transition period and noted that he is doing a fine job. He also noted that a motion is needed to
authorize the Transition Committee to retain the services of a search firm, which was moved
by Commissioner Janssen and seconded by Commissioner Jeffries. Commissioner Janssen also
noted that anyone interested in attending the Transition meetings or in being involved in the
process would be very welcomed. Commissioner Ellen Jeffries asked what the process is and
Linda Frederickson indicated that the scope is explained in the RFP.
F. PERSONNEL COMMITTEE: No report.
G. LONG RANGE PLANNING COMMITTEE: No report.
LEPFA Board of Commissioners Meeting
Page 9
August 24, 2004
VII. COMMISSIONER AND STAFF COMMENTS:
A. Commissioner Charlotte Sinadinos: Commissioner Sinadinos extended her congratulations and
thanks to Patrick for taking on the duties of Interim President&CEO. She also noted that she
would like the Board to recognize the importance of Marian Bryant and her role for taking on
extra duties and noted that her knowledge and leadership is crucial to the functioning of this
Center and that she is an unspoken hero.
B. Linda Frederickson: Linda reported that one of the things implemented this year during
Common Ground was a research strategy through a partnership with Capital Research
Services. Over 1,000 onsite surveys were completed and next Tuesday, August 31, a focus
group will be held with area businesses to get a handle on the festival's economic impact on
regional businesses and will be included in next month's report. Linda noted that she will
attend a CVB branding meeting and has been asked to meet with them on their business plan
and their marketing strategy, and she will update the Board on the results.
C. Glenn Kirk: Glenn expressed his excitement about being a resource/party to the Board and
expressed his commitment to all the entities. He noted well-before working with the City he
had been involved in Common Ground and that he is probably more aware of LEFPA
happenings and brings a different perspective. He noted speed is of essence to him and that
you want to be first and moving at the speed of business, which means that we have to do a
better job at being out there and being first with our citizens, our customers, our investors and
people who want to make Lansing a top notch place to live and do business. He noted they are
committed to working with Patrick and LEFPA and the team and that he will also talk to
Patrick on performance based metrics and how we do the things that we do and the economic
impact ,which will raise the awareness on how important the things that we do are here in
Lansing.
D. Commissioner Ellen Jeffries: Ellen noted that the LEPFA staff and all the volunteers did a
fantastic job on Common Ground, in particular her team leader, Heidi. Ellen noted that the
staff puts in many long hours and are so enthusiastic and that all of the LEPFA staff is working
at Common Ground. She also noted that everything appears to be running more smoothly
based on the Information Booth and that people seem to know what to do and it seems to go
more smoothly every year. Commissioner Jeffries noted that she always volunteers for
opening night, and this was the best one ever. In regard to the Act 99 Financing she noted
Glenn Kirk's input is appreciated. Commissioner Jeffries also thanked James for his service as
well as Tim, and for their leadership role in conducting the executive search. She also
expressed the Board's support of the staff as we move through this transition period.
E. Commissioner Cyril McGuire: Commissioner McGuire congratulated Tim on his voyage and
expressed his appreciation of James' year and noted that this is the greatest staff anywhere.
F. Commissioner Charles Janssen: Commissioner Janssen agreed with the comments made and
asked those who would have not signed the caricature of Peter that they do so. He also
commented to Commissioner Denise Wootton that his prayers are with her and Jim.
G. Heidi Brown: Heidi extended her thanks to Brian and Ellen Jeffries for volunteering on the
busiest night (opening night) and the second night of Common Ground and noted that their
time is appreciated. Councilmember Sandy Allen was thanked as well.
LEPFA Board of Commissioners Meeting
Page 9
June 22, 2004
H. Patrick Talty: Patrick thanked Commissioner Butler and Commissioner Haggart for their
leadership and for the time they have given them.
I. Commissioner James W. Butler: Commissioner Butler noted that the movies in the Park have
become a great hit and that he has heard about them constantly. He noted that he would also
agree that Marian does a good job and that is why she is constantly recognized for the
outstanding and professional job that she does, and that the Board really does appreciate it. He
also noted that as a staff and board we are extremely lucky to have a strong leadership team
and staff. He noted during this transition we have not missed a beat and everything is coming
along fine and smooth and the leadership team and staff are pulling together to make sure that
we continue the momentum, mission and vision that is ahead. Commissioner Butler expressed
to Glenn that he is extremely happy that he is a part of our team and thanked him for being a
friend of the City and Common Ground. He also noted that Common Ground has moved to
another level and has become a world class event, which is represented by the regional
attendance.
Commissioner Butler suggested that the Board make a significant contribution to Jim Wootton
and his family, in reference to his medical fees. Commissioner Butler made a contribution and
asked that Board members match or exceed his contribution in some form or fashion. He
noted that today we are all able bodied, but there is no guarantee. Commissioner Sinadinos
noted that the Knight Cap is having a charity bike ride and Jim will be one of the recipients.
Denise indicated that an account has been established at Citizen's Bank in Jim's name.
J. Chairman Haggart: Chairman Haggart noted that he will be contacting Board members on
Committee assignments and asked that members keep in mind committees that they wish to
serve. Chairman Haggart also expressed his support of staff.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:33 a.m. it was moved by Commissioner Janssen and seconded by Commissioner Butler that the
meeting be adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, SEPTEMBER 28, 2004 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 FAULITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
NOVEMBER 23, 2004
MINUTES
At 8:07 a.m. 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, Charles Janssen, Ellen Jeffries, Sharon Peters, Charlotte
Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: James W. Butler III, Glenn Kirk (Ex-officio), Cyril McGuire, Kris
Nicholoff, and Jim Ruff(Ex-Officio).
OTHERS PRESENT: Michael Barber,Heidi Brown, Marian Bryant,Linda Frederickson, Bill Grove, and
Dr. Dirk Spillemakers - Lansing Entertainment and Public Facilities Authority. Don Kulhanek - City
Attorney's Office - City of Lansing.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda.
At 8:10 a.m. Vice Chairman Sharon Peters entered the meeting.
IV. PUBLIC COMMENT: Dr. Dirk Spillemakers, LEPFA Employee and Union Representative for
AMTA(Technicians Association)thanked the Board for the opportunity to address them,and then
he stated his history with LEPFA and read the following comments. Mr. Spillemakers noted that
the labor agreement for this group has been expired for about seven years, which means that there
have been no increases for the employees and during these years they feel that they have been able
to provide reliable income generating for the Lansing Center and have been competent in their
duties to the Center, i.e. providing power to the Lansing Center when the entire eastern seaboard
was blacked out and the City of Lansing was dark. He noted that to-date they have the impression
that they have been forgotten over the years and that the Union and Management, after a hiatus of
seven years, change the circumstances and give priority to their situation. He noted nine years
ago, it took almost 1.5 years to conclude agreements with Mr. Sullivan and Mr. Meyers and
considering that they are already seven years static, they feel they cannot let things proceed in that
direction any further. He noted that they have already lost an excellent member of the team(there
are only 4 individuals in this group)because the person stated that they "cannot see any movement
here at all." He noted that their concern is that during this quick transition they have tried to keep
themselves in the forefront since their establishment about a month ago. He commented that they
hoped that they can really impress upon the Board that they enjoy their employment,and they wish
to continue their employment, but they need to catch up to the times. As the result of the static
situation, (he noted the problems were with the Union as well as with anyone else), they want to
make sure that as individuals and board members those present understand that they want at this
point to move ahead as quickly as possible. Dirk noted that everything that they have submitted in
their proposal to Mr. Talty, immediately before he left, has been approved either in other
agreements that LEPFA has with Labor Organizations, or was discussed and given to them by Mr.
Talty in terms of the direction he wanted to go. He noted that he would supply copies of the
agreement to Heidi if anyone wanted to look at them, and he noted further that this is not an
attempt by him to by-pass management, it is simply is an attempt to further communications. He
sited the example of their concerns the fact that the employees do not contribute to Social Security,
but rather to a retirement fund, which is impacted by the lack of increases for the past seven years,
which ultimately decreases the sum a person has to draw from upon retirement and this troubles a
number of employees. He invited questions to "elucidate on what is obviously a very reflective
presentation" and he "implored" those present to get the situation resolved.
LEPFA Board of Commissioners Meeting
Page 2
November 23, 2004
V. APPROVAL OF THE MINUTES OF OCTOBER 26, 2004:
The minutes of October 26, 2004 were adopted as presented. MOTION: Commissioner Peters
SECOND: Commissioner Jeffries
VI. REPORTS:
A. CHAIRMAN'S REPORT: No report.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending October 31, 2004: Committee
Chairman Sinadinos reviewed the financial statements as follows:
a. Lansing City Market - October 31, 2004:
Income Statement: Building Rental for the current period was $3,652 compared to the
prior year's amount of$3,989; year to date it is $19,765 compared to $17,969 for the
prior year. Total Operating Revenues for year to date are $25,378, which exceeds the
prior year's amount of $23,901. Operating Expenses- Utilities for year to date are
$11,428 compared to $11,700. Insurance/Bonding has dropped significantly and for the
year to date is $823 compared to$1,509 last year. Total Operating Expenses for year to
date are $9,751 compared to $8,406 and for year to date the Operating expenses are
$40,037 compared to $41,699 last year. After taking into account the City Contribution
and Interest, we have excess revenues over expenses of$15,578 compared to last year's
amount of$16,757.
Balance Sheet: Cash is at $43,976 versus $26,565; Unreserved Equity is $181,864
compared to $189,301 for last year.
Budget vs. Actual: Building Rentals were less than budget by ($1,004); and for year to
date Building Rental was better than budget by $773. Parking Revenues were less than
what was budgeted by($1,611). Total Operating Revenues had a variance for the current
period that was less than budget by($2,640)and for year to date it was less than budget by
($937). Operating Expenses- Salaries/Wages are better than budget for year to date by
$961. Insurance and Bonding is better than budget by $660 for year to-date. Total
Operating Expenses for the current period were better than budget by$2,541 and for year
to date they were better than budget by$9,847. After adding in the City Contribution and
Interest, we are better than budget by$8,608; after taking out depreciation, we are better
than budget by $9,235.
b. Oldsmobile Park- October 31, 2004:
Income Statement: Event Revenues for the current period are$35,682 and are comprised
of Fright Night. Event Expenses are $49,321 (and we will be receiving more expenses)
for an Event Loss of $13,639, which was applied to the Event Development Fund.
Operating Expenses-Utilities for the current period were $6,113 compared to $4,507 for
the current period last year, and the difference is attributed to steam issues which are being
addressed and for year to date the figure is $20,993 compared to $17,761 for last year.
Insurance/Bonding is down significantly for year to date at$12,568 compared to$22,976
for a difference of$10,500 saved. Total Operating Expenses for year to date are$80,603
compared to$85,962 for last year. After adding in the City Contribution and Interest, we
have excess revenues over expenses of$13,562 compared to a loss last year of($5,582).
LEPFA Board of Commissioners Meeting
Page 3
November 23, 2004
Balance Sheet: Cash is $105,971 which is down from the prior year's amount of
$182,020, which is due to fewer events and not having received the allocation. The Net
Event Development Fund is $61,893 for the current year compared to $61,453 for the
prior year.
Budget versus Actual: Salaries/Wages are better than budget for year to date by$1,600.85.
Insurance/Bonding is better than budget by $9,763 for year to date. Total Operating
Expenses for the current period are better than budget by$3,458 and for year to date they
are better than budget by $23,304. After taking into account, the City Contribution,
Interest and the under funding by the City of Lansing we are better than budget by$17,813
and after adding in depreciation we are better than budget by $18,555.
c. Lansing Center- October 31, 2004:
Income Statement: The Lansing Center had a very good month using the benchmark of
$500,000. Total Operating Revenues were $642,608 for the current period. Building
Rental for the current period is $136,401 compared to the prior year's amount of
$110,512. Food and Beverage is at $387,388 compared to the prior year's amount of
$312,515 and for year to date the figure is $900,073 compared to $672,908. Tradeshow
Utilities for year to date are $43,197 compared to the prior year's amount of$36,238.
Total Operating Revenues for the current period are$642,608 compared to$521,589 for
the prior year; and for year to date the revenues are$1,416,594 compared to$1,153,051
for last year. Under Operating Expenses- Salaries/Wages for year to date are$523,798
compared to $528,183 which is due to vacancies in the Operations Department. Fringes
and Related Costs for year to date are$163,974 compared to$178,252 for the prior year.
Utilities for year to date are $202,248, which exceeds the prior year's amount of
$187,619. Maintenance of Facilities for year to date is$29,361 compared to$17,479 for
the prior year, and the difference is attributed to irrigation system repairs. Events for the
current period are$33,896 compared to$8,979, and is attributed to carpet that was rented
from ArtCraft. Food and Beverage costs for year to date are $504,900 compared to
$463,386 for the prior year. Total Operating Expenses for the current period are
$504,941, which exceeds the prior year's amount of$478,873; year to date expenses are
$1,714,984 which exceeds the prior year's amount of$1,680,299 for an Operating Loss
year to date of ($298,389) compared to the prior year's amount of ($527,247). After
taking into account the City Contribution and Interest,we have income of$40,028 for year
to-date compared to the prior year's loss of($309,930).
Balance Sheet: Cash and Cash Equivalents for the current year are at$111,645 compared
to the prior year's amount of$82,786. Unearned Revenue- Advanced Rent(an indicator
of future business)for the current year is$355,079 compared to the prior year's amount of
$355,704. Unreserved Equity is $273,815 compared to $116,891 for the prior year.
Budget versus Actual: Building Rental for the current period is better than budget by
($22,100) and for year to date it is better than budget by $13,892. Food and Beverage is
less than budget by $2,611, but exceeds the budget for year to date by $40,119. Total
Operating Revenues are better than budget for the current period by$36,724 and the year
to date revenues are $1,416,000 compared to the budgeted amount of$1,318,000 which
makes us better than budget by$98,587. Operating Expenses-Salaries/Wages for year to
date are better than budget by$3,005. Fringes and Related costs are better than budget by
$12,408. Utilities are less than budget for year to date by ($3,612).
LEPFA Board of Commissioners Meeting
Page 4
November 23, 2004
Insurance and Bonding is better than budget by$11,269. Events are higher than budget by
($32,223). Total Operating Expenses for the current period are less than budget by
($10,431) and for year to date they are better than budget by $5,944. After netting
Expenses against Revenues, we are better than budget by$104,532 and after taking into
account the City Contribution, the city under funding, and Interest we are better than
budget by$86,915 and after adding in depreciation we are better than budget by$77,144.
Finance Committee Chairman Sinadinos moved that the monthly financials for Oldsmobile
ark, the Lansing City Market, and the Lansing Center for the period ending October 31,
2004 be received as published, and further that the monthly expenses for each entity be
approved. SUPPORT: Commissioner Jeffries, the financials were approved as submitted.
2. Union Health Reimbursement Plan: Committee Chairman Sinadinos noted that the
committee was presented with information regarding the Union Health Reimbursement Plan.
Copies were distributed, and it was explained that this affects the Food and Beverage part-time
employees. Marian explained that it was agreed to that we would institute a health
reimbursement plan for the Food and Beverage on-call employees. The benefit is extended to
anyone who works 1,500 hours in the prior calendar year or an average of 1,500 over the
prior two calendar years. Those who qualify get 60 cents per hour worked contributed to the
plan on their behalf, and they then can present qualifying medical receipts to be reimbursed up
to the level that is in their account. Monies can be carried over to the next plan year and it runs
from July 1 through June 30 and is for employees only. Unused funds are forfeited upon
termination. Committee Chairman Sinadinos moved that we adopt the resolution as presented.
SECOND: Commissioner Jeffries, motion carried.
C. INTERIM PRESIDENT & CEO'S REPORT: Mike noted that it is good to be back in
Lansing and to have the opportunity to help in some way as the Interim. He reported that he
has spent the last two weeks getting reacquainted with the venues and the staff, and he noted it
was good to see so many long tenured, quality and capable staff, and noted that is good not
only for the Board and the City, but for the clients as well. He is now trying to tackle some of
the issues, particularly some of the issues that are urgent and important. He indicated that the
Board should be comfortable in that the current business is being handled by Operations Staff
with planning and post event meetings; and through Linda's capable Sales and Marketing Staff
new business is continually being booked. He noted October has been a great month and
indicated that the ballroom renovations(the partitions and carpet)which fall under Act 99 is in
the budget and has been approved by the Board and City Council. Marian drafted a resolution
for Council approval. We have also learned how to streamline in getting such information
before Council, given the personnel changes within City Hall. The resolution, with
Councilmember Leeman's assistance went before the Ways and Means Committee last evening
and will go to Committee of the Whole on Monday, and will be on the agenda for Monday's
City Council meeting. We continue to move forward with the supplier and are on track in
terms of the building schedule as well, and the commitments we made to clients will be upheld.
1. Lansin Center: Linda Frederickson reported during the month of October we held 54
events, which equated to 80 event days, with over 18,000 in attendance and room nights
totaling 1,665 for an estimated economic impact of over $800,000 for October.
LEPFA Board of Commissioners Meeting
Page 5
November 23, 2004
• Event Highlights: On November 7 we hosted the Diocese of Lansing Youth
Jamboree with over 1,000 youth attending the event from the region. November 11-
13 we hosted Hearts at Home for a fifth year and over 2,000 women attending, and
over 2,000 boxed lunches were served as well. November 17-20 we hosted the
National Caged Bird Show, which was a first time public sale and awards show.
Silver Bells took place at the Lansing Center and the City Market on November 19
and we opened Hall C this year, and the Lansing Center was happy to serve cider
and cookies and be a part of the 19' annual event.
• Upcoming Events: Linda reported that we have booked the Deer and Turkey
Spectacular through 2015 as well as the Michigan Safety Conference for 2009-
2012. New this year is the Intergalactic Beach Shows which have booked five
different dates. We have issued contracts for the Foundation Games which is a
public show. Potential new business includes the 2007 Michigan Quilt Network
annual conference. We have also submitted a proposal for a Car Show for the
week between Christmas and New Years. We have also submitted a proposal to
the W.K. Kellogg Foundation for their 75'Anniversary conference in June,
2005.
2. Oldsmobile Park: Mike reported that HNTB Study/Operational Audit for the physical
plant and systems that operate the park has been concluded and we should expect a report
in mid-December. He also has met with Tom Dickson and Glenn Kirk on how we
approach the findings of the study, and the business points and operational points of the
agreement, and the ten year extension. Mike reported that the Mayor expressed an interest
in meeting with Mr. Dickson and he will facilitate that meeting.
Linda reported that over 7,000 patrons attended Fright Night this year and it was our best
year to-date in terms of attendance. Next year will be our 10`f' anniversary and we are
considering raising the admission fee. A post con was held with the Carpenters Union and
we were very excited to have their commitment for next year as well. From a marketing
aspect we are already of thinking of a theme that is a little "above," due to our ten year
anniversary.
Also, a suite 15 remodel is underway and we have met with the Bureau to discuss the
$6,000 cost that will be split between both entities.The new setting will be more conducive
to entertaining clients. LEPFA staff will paint and clean the carpets and the install is
scheduled for March.
3. Lansing City Market: Linda Frederickson reported that rent revenue was down for the
month but was up for year to date at $775. Occupancy was up at 86% for October.
Weekend entertainment continues and will take place through the holidays. The Market
was decorated for the holidays for Silver Bells, and Santa was on hand as well as the live
reindeer. Krispy Kreme doughnuts were served as well as cider and the event was very
well attended. As we have done in the past two years, the vendors will implement winter
hours from 10:00 a.m. — 5:00 p.m. from January through March.
LEPFA Board of Commissioners Meeting
Page 6
November 23, 2004
4. Common Ground: Mike reported that a meeting took place with Kevin Meyer and his
staff, and that there was good conversation about the wrap up of the last event and the kick
off for the start of the new event. Linda reported a notice was sent to the Uncommon Club
members regarding membership renewal. Common Card buyers were also solicited for
pre-sale common cards and the deadline was yesterday. Next Thursday, December 2 the
Common Cards will go on sale for $79 (there are no TicketsPlus ticketing fees) at all
locations and there will be no additional fees for the single day tickets as well(other than
postage). New this year we are purchasing some logo fleece that will be for sale at the
Common Ground office to coordinate with their purchases. Commissioner Peters asked
how the advanced ticket sales did; Linda noted that she did not have the information from
Laurel, but she would be happy to share it once it is received.
5. Food and Beverage Update: Bill Grove distributed new menus to those present noting that
there weren't any major changes, some items were deleted and added items, prices were
upgraded and he explained that because we book in advance, we won't see the effect until
March or April. Bill noted that Jeff in marketing did a great job and that our prices are in
line with everyone else and will be a great selling point. He noted October has
traditionally been a good month as was evidenced by the financials. Bill reported that we
have been without a Bar/Concession manager for the past three months and have recently
filled the position with Matt Birch who previously served as a part-time bar tender and has
returned to us as the Bar/Concessions Manager. Bill noted that the Caged Bird group was
very happy with the Lansing Center and hopefully that is a good indicator that they will
return.
6. Finance Department Update: Marian noted that Don Kulhanek from the City Attorney's
Office who is handling the Cam-Tre issue is present and currently is working on a hearing
set for December 2. They have offered a settlement of$1,000 a month until it's paid off
(about 5 years) and his direction is to try to shorten the time line and reach a settlement
number that is less than owed, but would keep us from trying to collect over 5 years.
When a settlement is reached, the Board will be asked to approve a "bad debt" allowance.
7. Union: Mike expressed his appreciation to Dirk and his Union members, and he indicated
that we know how important they are to the building. He noted that Dirk has been heard,
and unfortunately we can't always work on the timetable that we would like. He also
noted that he does have Dirk's letter.
Mike also complimented Heidi Brown. He noted that as a tenured staff member we are
very fortunate to have her on Board and that she was able to provide a months briefing in
two days and he noted that she is outstanding at that, from the simple to the complex
things, and she does whatever it takes to get what is needed, and that has been true in all
other transition scenarios and he expressed his thanks.
D. PERSONNEL COMMITTEE: No report.
E. LONG RANGE PLANNING COMMITTEE: No report.
F. TRANSITION COMMITTEE: Chairman Tim Haggart noted that they continue to move
forward with the search; Jim Carra will be on board following today's meeting for a
conference call with James Butler and he welcomed all Commissioners interested to attend.
LEPFA Board of Commissioners Meeting
Page 7
November 23, 2004
VII. COMMISSIONER AND STAFF COMMENTS:
A. Sharon Peters: Vice Chairman Peters echoed Mike Barber's comments; she noted that during
this interim period, and as she has worked as a Commissioner, that she has been very
impressed with the quality of the staff, and she noted that all staff has stepped up to the plate.
She noted that there are vacancies and areas that are still open, and require extra effort on the
part of staff, and that the staff has come to the fore and handled things well. She noted the
October financials are a testament to the kind of work that is put out by the LEPFA staff, and
she wanted to echo her appreciation as a Commissioner for the kind of job she is seeing. Mike
thanked Sharon and indicated that her words will be passed on to staff.
B. Linda Frederickson: Linda noted that we are partnering with the Greater Lansing Symphony
on December 11 at 7:00 p.m. to present the "Jingle Bell Pops." Tickets are currently on sale
and we expect it to sell out with a capacity of 2,200. On December 12 at 3:00 p.m. we are
partnering with the Lansing Ballet on a "Nutcracker" show.
The Employee Christmas Party will be held on Thursday, December 16; lunch will be
provided and we will bowl at Holiday Lanes. The Board Party is Monday, December 20 in
the Governor's Room and invitations will be forthcoming.
C. Denise Wootton: Commissioner Wootton asked how Cyril is doing. It was noted that flowers
were sent and Heidi has talked to him, and he is at home.
D. Ellen Jeffries: Commissioner Jeffries thanked Dirk for attending today's board meeting. Ellen
also noted that she would like to commend the individual responsible for getting the
TicketsPlus fee eliminated because she heard comments regarding the fee. She also echoed
Sharon and Mike's comments about the staff; and she noted that during the transition staff has
had to work doubly hard with Peter and Patrick gone, and the financials show it.
E. Councilmember Harold Leeman: Councilmember Leeman expressed his appreciation for all
that everyone is doing during the transition.
F. Charles Janssen: He echoed the previous comments and noted that it is a pleasure to have
Mike on board as well. Commissioner Janssen stated that he has had the pleasure of
negotiating with Mike on the phone and that he was a pleasure to deal with and his familiarity
with the facilities and staff provided a comfort level that he would slip right back in, and he
has done that.
G. Bill Grove: Bill noted that the Union has finalized the agreement and retro pay has been
distributed and everyone is happy.
H. Tim Haggart: Chairman Haggart noted that he wished to echo everyone's thanks to Mike for
coming into town and for hitting the ground running. He noted that words cannot express our
appreciation. Mike indicated that it was like a homecoming for him and extended his thanks
and commented that it's the staff that makes it work.
LEPFA Board of Commissioners Meeting
Page 8
November 23, 2004
VIII.OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
Commissioner Janssen questioned the condo development on Michigan Avenue in the parking lot across the
street from Oldsmobile Park and asked if LEFPA is being heard in regards to that issue and if it will impact
our business. Mike noted that he spoke with Tom Dickson regarding in Glenn Kirk's presence, and Glenn
is very high on the issue and Tom is very supportive; however, Tom has concerns about the parking. Mr.
Kirk has assured Tom that any parking that is displaced will be replaced in the immediate area. Mike noted
everyone has been positive and the City is very sensitive to retaining the 205 spaces and it will be
incorporated in the plan. Sharon noted the potential is also for a local theater, which could be a great
positive for our facilities. Councilmember Leeman noted that there will be a hearing in a couple of weeks
regarding that piece of property; and Jim Ruff is the person to contact regarding any issues we may have.
Commissioner Janssen noted in regard to Oldsmobile Park, it appears that "private enterprise" takes over
and provides parking in the smaller lots; his concern is the impact on our large tradeshows.
Councilmember Leeman noted that the Council is waiting for the public hearing process and for the
Administration to come before the full Council.
At 9:02 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY,DECEMBER 14,2004 AT 8:00
A.M. AT THE LANSING CENTER IN +FrO�= tJM2 3;.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
DECEMBER 14, 2004
MINUTES
At 8:10 a.m. Chairman Tim Haggart called the meeting to order in the Room 203 of the Lansing Center;
333 E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: James W. Butler III, Tim Haggart, Ellen Jeffries, Glenn Kirk (Ex-
officio), Cyril McGuire, Sharon Peters, and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: Charles Janssen, Kris Nicholoff, Jim Ruff (Ex-Officio), and Denise
Wootton.
OTHERS PRESENT: Michael Barber, Heidi Brown, Marian Bryant, Linda Frederickson,Bill Grove, and
Dr. Dirk Spillemakers - Lansing Entertainment and Public Facilities Authority.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda.
IV. PUBLIC COMMENT: Dr. Dirk Spillemakers, LEPFA Employee and Union Representative for
AMTA(Technicians Association) reported that he wished he could come with better news, but up
to now they have had no communications as to when management will initiate negotiations for a
contract that has been expired for several years, which "does not make for a very good
Christmas." He noted perception is reality and the perception here is "that there is very little
concern about us" and that he felt the reality is that the contract still isn't moving along. Dirk
again asked/implored that the Board urge those that are of concern to move ahead with this. He
noted he has been contacted twice by the state(the State will usually appoint to new associations a
negotiator/mediator)that Mr. Corbin has been appointed and Dirk will move forward with him and
he will tell them to move forward with the Authority. Dirk noted that he would like to see things
be concluded quickly because this matter only concerns three people who have again within the
past two weeks proved their value "by transforming this facility from an aircraft hanger to a
theater" and helped to make a very real presentation of the Nutcracker a success, which he
understood it was.
V. APPROVAL OF THE MINUTES OF NOVEMBER 23, 2004: The minutes of November 23,
2004 were adopted as presented. MOTION: Commissioner Peters SECOND: Commissioner
McGuire.
VI. REPORTS:
A. CHAIRMAN'S REPORT: No report.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending November 30, 2004: Committee
Chairman Sinadinos reviewed the financial statements as follows:
a. Lansing City Market- November 30, 2004:
Income Statement: Building Rental for the current period is $5,436, which exceeds the
prior year's amount of$3,659; year to date is$25,201 compared to$21,628 for the prior
year. Total Operating Revenues for year to date are $30,849, which exceeds the prior
year's amount of $27,595. Operating Expenses- Salaries/Wages for year to date are
$19,575 which exceeds $18,853 for the prior year.
LEPFA Board of Commissioners Meeting
Page 2
December 14, 2004
Utilities for year to date are $16,063 compared to $15,481 for the prior year.
Insurance/Bonding is down for year to date at $1,029 compared to $1,836 for last year.
Total Operating Expenses for year to date are $53,846 compared to $51,823 which is up
by about $2,000. After taking into account the City Contribution and Interest, we have
excess revenues over expenses of $13,702 compared to the prior year's amount of
$14,587.
Balance Sheet: Our cash position is $66,592 versus $13,169; Unreserved Equity for the
current year is $179,988 which is less than last year's amount of$187,130.
Budget vs. Actual: Building Rental for the current period is better than budget by $1,681,
and the year to date Building Rental was better than budget by$2,454. Parking Revenues
for year to date are less than budget by ($1,611). Total Operating Revenues for year to
date are better than budget by $718. Operating Expenses - Utilities were higher than
budget for the current period by($1,052)and for year to date we are better than budget by
$191.79. Insurance/Bonding for year to date is better than budget by $826. Total
Operating Expenses for the current period were higher than budget by ($1,213) and for
year to date they were better than budget by $8,302. After netting revenues against
expenses we are better than budget by $9,021 and after taking into account City
Contribution and Interest, we are better than budget by $8,654. After taking out
depreciation, we are better than budget by $9,431.
b. Oldsmobile Park- November 30, 2004:
Income Statement: Event Revenues for the current period are $100.63 which is interest.
Event Expenses are$7,951 (the remaining expenses from Fright Night and the movies)for
an Event Loss of($7,850); which was applied to the Event Development Fund. Operating
Expenses-Salaries/Wages for year to date are$31,167 and exceed the prior year's year to
date of $22,073 due to a higher allocation for this year. Utilities for year to date are
$27,035 which exceeds the prior year's amount of$22,676. Insurance/Bonding is down
significantly for year to date at$15,696 which is less than the prior year's$27,937. Total
Operating Expenses for year to date are$99,553 which is less than the prior year's amount
of$102,206. After adding in the City Contribution and Interest, we have excess revenues
over expenses of$18,146 compared to a loss last year of($1,730).
Balance Sheet: Cash for the current year is $150,192 which exceeds the prior year's
amount of$137,508. The Net Event Development Fund is $54,043 for the current year
compared to $55,367 for the prior year. Unreserved Equity for the current year is
$88,222 compared to $99,704.
Budget versus Actual: Salaries/Wages are better than budget for year to date by $2,161.
Utilities are higher for year to date by $2,729. Insurance/Bonding is better than budget
by $12,218. Total Operating Expenses for the current period are better than budget by
$4,433 and for year to date they are better than budget by $27,737. After taking into
account the City Contribution, Interest and the under funding by the City of Lansing we
are better than budget by$20,867. After adding in depreciation we are better than budget
by $21,886.
LEPFA Board of Commissioners Meeting
Page 3
December 14, 2004
c. Lansing Center- November 30, 2004:
Income Statement: Building Rental for the current period is$72,120 which is less than the
prior year's amount of$81,113 and for year to date the amount is $308,399 which is less
than the prior year's amount of$315,583. Food and Beverage for the current period is
$226,530 compared to $189,067 for the prior year and the year to date the figure is
$1,126,000, which exceeds the prior year's amount of$861,975 which is attributed to the
mix of events. Total Operating Revenues for the current period are$381,169 compared to
$401,584 for the prior year; and the year to date the revenues are$1,797,764 compared to
$1,554,636 for last year. Under Operating Expenses- Utilities for the current period are
$45,997 which exceeds the prior year's current period amount of$41,397. Year to date
Utilities are $248,246, which exceeds the prior year's amount of $229,016.
Insurance/Bonding is down for year to date at$44,451 compared to$64,228 for the prior
year. Food and Beverage expense for year to date is$651,070 compared to$586,005 for
the prior year. Total Operating Expenses for the current period are $463,857, which
exceeds the prior year's amount of$438,126;year to date expenses are$2,178,000 which
exceeds the prior year's amount of $2,118,000. After taking into account the City
Contribution and Interest, we have a loss of($4,634) for year to date compared to the
prior year's loss of($297029).
Balance Sheet: After totaling together Cash and Cash Equivalents for the current year we
have $391,418 for the current year compared to the prior year's amount of$151,384.
Unearned Revenue- Advanced Rent(an indicator of future business) for the current year
is $375,655 compared to the prior year's amount of $335,865. Unreserved Equity is
$229,152 for the current year compared to $129,792 for the prior year.
Budget versus Actual: Building Rental for the current period is less than budget by
($21,436) and for year to date it is better than budget by $7,543. Food and Beverage
Revenues are less than budget by$19, 408 for the current period; but they are better than
budget for year to date by$20,710. Total Operating Revenues are$381,169 which is less
than the budgeted amount of$440,606 by ($59,436); and the year to date revenues are
better than budget by$39,151. Operating Expenses- Salaries/Wages for year to date are
better than budget by $2,419. Utilities are better than budget by $48.13. Insurance/
Bonding is better than budget by $14,963. Food and Beverage Expense is better than
budget by$11,954. Total Operating Expenses for the current period are less than budget
by ($6,545). After netting Expenses against Revenues for year to date we are better than
budget by$38,550. After taking into account the City Contribution, Interest, and the City
under funding we are higher than budget by ($1,454).
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, 2004 are received as published, and further that the monthly expenses for each entity
be approved. SUPPORT: Commissioner Peters, the motion carried and the financials
were approved as submitted.
2. CamTre Update: Marian Bryant reported that a settlement has been reached with CamTre
via our attorneys; they will pay$2,500 a month beginning in February until they have paid
half of the original amount over the next 12 months ($30,000). They also have the option
to notify us by July of their intent to pay us a lump sum payment of$20,000 in lieu of the
remaining monthly payments.
LEPFA Board of C,ummissioners Meeting
Page 4
December 14, 2004
If they miss a payment they will have a judgment against them for the full amount owed.
C. INTERIM PRESIDENT & CEO'S REPORT:
1. Symphony/Ballet: Mike Barber noted that this weekend for the first time, we turned the
Exhibition Hall into a Theater and hosted Friday, Saturday and Sunday performances of
the Nutcracker/Symphony; which brought a number of people who have never been to
the Lansing Center downtown for the performance. He noted it was an enjoyable test for
the building and for the staff in terms of ticketing/box office; seating; sound 'and
lighting, etc.
At 8:30 a.m. Commissioner James Butler entered the meeting.
2. Act 99/Capital Funding Request: The$642,000 capital request was approved and we are
now able to go into programming renovation of the ballroom. Mike noted through Marian
and Glenn Kirk's diligence, and the City Council's support, we were approved for
$642,000. Yesterday the trucks arrived on schedule and we have begun dismantling the
current acoustical doors in the ballroom and will work to have the conversion finished
because we have business booked. New carpet will be laid in the meeting rooms and we
will continue to seek funding for the common area carpet. We were able to purchase a
floor extractor, which will help improve the appearance of the common area and training
has been held for the extractor.
3. HNTB Study - Oldsmobile Park: HNTB is reviewing the physical plant at Oldsmobile
Park (e.g. chillers, HVAC, user space, food and beverage operations, etc.). Mike noted
that there will be a meeting on the study this Friday at 9:00 a.m. and he invited anyone
that is interested to attend the meeting. Glenn Kirk and Marty Riel will attend the meeting
as well.
Commissioner Sharon Peters asked how the acoustics were for the Symphony/Nutcracker
performances. Mike noted that he did not hear any complaints and he was circulating
throughout the event. Linda noted she sat in the back and the sound quality was fine and
the ballet had theater seating, while the symphony was cabaret style seating. Mike noted he
was impressed with the "enjoyable factor." Linda reported that Barb Smith was "very
pleasantly surprised" and inquired about additional spring shows. Glenn Kirk noted that
this event has opened up the theater atmosphere to a whole new sector, e.g. those who
cannot normally afford to take their entire family to the Wharton Center; and he has heard
nothing but positive feedback. Mike indicated that is why we saw many families, because
typically you don't see a family at the Symphony. Linda reviewed the pricing. Mike
complimented Linda and her staff for their attendance and noted that we had our staff on
site throughout the event which demonstrated our interest in the event. We now have to
evaluate the event because it is very labor and cost intensive for a weekend event.
Commissioner Butler asked if this is a new revenue type event or was this an investment
to see how labor/cost intensive such an event would be? Mike noted it was an investment
to see how it would go and this first year we probably won't make money because it was a
partnership and we will have to evaluate the total costs for the event.
LEPFA Board of Commissioners Meeting
Page 5
December 14, 2004
4. Lansing Center: Linda Frederickson reported during November we held 34 events, which
equated to 47 event days, with over 11,000 in attendance and room nights totaling 764 for an
estimated economic impact of over $475,594 for November.
• Event Highlights: December 1 the Greater Lansing Convention&Visitor's Bureau
held their client appreciation event. December 1 and 2 the Michigan State Police
held their graduation and there was a lot of publicity. Public Shows (in addition to
the Symphony and the Ballet)included Shipshewana on the Road and December 3-5;
the "Just Catin Around" Cat Show was held on December 11-12.
• Upcoming Events: Upcoming events include the Boat Show on January 5-9;
Bridal World is in house on January 14-15; the Dr. M.L. King luncheon will be
held on January 17 and the Motorcycle Swap Meet is scheduled for January 30.
• Sales Highlights: Weddings for 2004-5 equated to 22 definite bookings and 12
prospects; and for 2005-6 we have 8 definite bookings and 25 prospects which
are attributed to the changes made in our wedding packages over a year ago.
• Confirmed/Repeat Business: Contracts have been issued for the Governor's
Interfaith Education and Information Symposium; and the W.K. Kellogg
Foundation in June, 2005 (new client). Repeat business includes contracts sent to
the CPA's for 5 events in 2005; Government Technology for the Michigan
Digital Government Summit in October; and Michigan Medical Group
Management Association for November 2005;
• Potential New Business: The Michigan Democratic Party is holding space for
the 2006 state-wide convention. AAA of Michigan is considering January 2005
dates. We have submitted a proposal to Cooley Law School for their 2005
graduation reception on May 21.
Commissioner Sharon Peters questioned the changes to the wedding packages. Linda
explained that developed an all inclusive package. Bill Grove noted we broke the
package down, which gave them more flexibility and allowed them to absorb the
costs more easily. Commissioner Butler asked if Letts Bridal Show is returning;
Linda noted they moved to the Holiday Inn South, and she will gather the specific
details on their move. Glenn Kirk asked Linda to review the process for gathering
room night information and how our partners (the CVB and Radisson) feel about the
information. Linda noted that Kelly Duch, our Sales Coordinator, actually gathers
the information from the Radisson and the CVB, and the information is shared with
all properties at the joint monthly meeting. Mr. Kirk asked for further information on
the conferences and Linda explained that the information is in the handout.
5. Oldsmobile Park: No additional report.
6. Lansing City Market: Linda Frederickson reported that rent revenue was up for
November compared to last year. Occupancy was up at 82% for November and this was
one of the highest Novembers that we have had. On December 4 we hosted our first
Holiday Open House at the market.
LEPFA Board of Commissioners Meeting
Page 6
December 14, 2004
Commissioner Peters asked how Schnitz Deli is doing. Linda reported that Dominic has
been very aggressive in his marketing and while sales have been less than he
anticipated(his Manager has been out for four months due to a Common Ground injury);
his manager, has returned and sales appear to be picking up and he continues to build the
catering portion of the business while his commitment remains strong. Commissioner
Butler asked if there was anything we could do to help stimulate his business through
Lansing Center tradeshows, etc. Linda noted we do advertise Schnitz' on the events
calendar at no charge and Dominic has developed a brochure.
December 11 and 18 Santa will visit the Market and musical entertainment continues.
Linda noted that Denise Wootton was pleased with the Nutcracker coming to the Lansing
Center because the Ballet Company ordered all of their flowers for the performers and for
the show from the Woottons.
7. Administration: Marian noted that we are in the process of reviewing and updating the
Personnel Handbook with legal council, and will bring a draft copy to the Board for
approval. Marian noted that there are some issues that have been reviewed and updated
such as the "Anti-Harassment."
8. Food and Beverage Update: Bill Grove reported that everything is going smoothly. Bill
also noted that his wife has a co-worker with children, one of which has Downs Syndrome;
they attended the show and thoroughly enjoyed it and they had no problems with their
viewing the show. Saturday Bill indicated that we had several events in house and in
addition to the Cat Show and Ballet we were hosting 4 holiday parties, a wedding reception
and the Symphony Reception. We used an employment agency and non-profit groups
which are paid in the name of the group, e.g. Lansing Catholic Central, and overall it went
well.
D. PERSONNEL COMMITTEE: No report.
E. LONG RANGE PLANNING COMMITTEE: No report.
F. TRANSITION COMMITTEE: Chairman Tim Haggart noted that Mike has received
resumes, which will be reviewed and interviews will be set up by the end of the month. He
invited anyone interested to review the resumes with them. Commissioner Butler noted that he
would like to recommend that Glenn be a part of the process.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Commissioner Charlotte Sinadinos: Commissioner Sinadinos noted that she attended the
Summit Contractors party (her brother) on Saturday and the food was good and there were
many positive comments.
B. Linda Frederickson: Linda reminded those present that next Monday, December 20 is the
Board Holiday Party. Linda shared the most recent Common Ground Sales Report as of
December 12; we have 210 orders with 636 common cards sold and our cash is up by
$11,000 or 21%. Glenn Kirk suggested we pursue Common Ground payroll deduction
purchases for LEFPA and City Employees, which makes buying the tickets easier, and
suggested that we pick a unique time to offer tickets to those two groups.
LEPFA Board of Commissioners Meeting
Page 7
December 14, 2004
He noted in addition to presenting a sponsorship check to Common Ground from GM, they
also presented a large check for payroll deducted ticket sales. Marian and Glenn Kirk will
work out the details and process. He noted that it is to the advantage of the Board and the
City's employees.
C. Commissioner James Butler: Commissioner Butler commented that it is great to see
Commissioner Cyril McGuire back at the table. He noted that he liked the fact that Mike was
allowing the various Department Heads to report at the Board meetings. Commissioner Butler
asked Mike to follow up on a negative report he heard at another Board meeting from Denise
Peeks/Micro Enterprise, which was very disenchanting. Commissioner Butler also noted that
he and other LEPFA Board members recently attended a productive meeting with the CVB
Officers last week. Overall he felt the meeting was productive and progress was made and that
there were issues that both sides came to understand better. He also made a general statement
about the need for back up procedures for all of things that we do and noted that it is
something to think about, so that we have the necessary back up procedures to make sure that
we have things that are pipelined. Commissioner Butler asked Mike for the documentation on
the pros and cons on facility management for reference.
D. Commissioner Sharon Peters: Commissioner Peters noted due to our transition she has been
more active than usual and she echoed James' comments regarding how the executive report is
flowing and she appreciated the sharing of the information with the team and department
leaders in terms of discussion. She also appreciated the more robust discussions in terms of the
Board meetings and that it helps the Board members to become more informed and better
engaged in the work that they are doing. She also expressed her pleasure in LEPFA exploring
new avenues in terms of the Symphony and the Nutcracker performance and our facilities; and
the discussions regarding the differences in the audiences that we are trying to reach. Vice
Chair Peters noted that this information is very useful as discussions continue regarding the
Performing Arts Center for the downtown and our role. In regard to the CVB, Vice Chairman
Peters noted that she felt it is important that we move forward to maximize the ability for the
community to market itself, for us to market this facility, and for us to work with our
community partners. She also welcomed back Commissioner McGuire and noted that she
would be glad to do some briefing with Cyril regarding the transition.
E. Commissioner Cyril McGuire: Commissioner McGuire noted that he would be available for
the CEO interview process anytime before March 2 and that he would not be available for two
weeks after that date. Commissioner McGuire noted that he was glad to be back and
complimented food and beverage on today's breakfast. He noted that he hoped to see
everyone at the Christmas party.
Commissioner Ellen Jeffries: Commissioner Jeffries welcomed Cyril back and thanked food
and beverage for the breakfast today. She also extended thanks to Glenn Kirk for his
assistance with the Act 99 process and for the discussion concerning Common Ground and
payroll deductions. Commissioner Jeffries volunteered to follow up with the state on payroll
deductions for Common Ground sales as well and she congratulated staff on the busy month
and wished everyone "Happy Holidays" and noted that she looked forward to seeing everyone
on Monday at the party.
VIII.OLD BUSINESS:
No report.
LEPFA Board of Commissioners Meeting
Page 8
December 14, 2004
IX. NEW BUSINESS:
No report.
At 9:20 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY,JANUARY 25,2004 AT 8:00
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary