HomeMy WebLinkAbout2005 LEPFA Minutes LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
JANUARY 25, 2005
MINUTES
At 8:05 a.M.,Chairman Tith 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, Ellen Jeffries,
Glenn Kirk (Ex-officio), Sharon Peters, Jim Ruff(Ex-Officio), and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: Cyril McGuire, Kris Nicholoff, and Denise Wootton.
At 8:06 a.m. Glenn Kirk entered the meeting.
OTHERS PRESENT: Michael Barber, Heidi Brown,Marian Bryant,Linda Frederickson, Bill Grove, and
Dr. Dirk Spillemakers - 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: Commissioner James W. Butler, III commented that he attended the Dr.
M.L. King Jr. Luncheon on Monday, January 17 and that Dirk and the Lansing Center staff did an
excellent job. He noted that over 1,300 people attended the event, the food was good and the set
up and AV was excellent. He noted that Dirk did a good job with the audio.
V. APPROVAL OF THE MINUTES OF DECEMBER 14, 2004: The minutes of December 14,
2004 were adopted as presented. MOTION: Commissioner Sinadinos SECOND: Commissioner
Jeffries; the motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman Haggart combined the Transition Committee report with
his report and noted that he was very glad to announce that the search is over and the Board has
hired Eric Hart from Minneapolis. Eric was on site last week and signed a contract and will start
on February 25. He will be in Lansing periodically to work with Glenn and Mike on the
agreement with the Lugnuts and he met with the Mayor last Wednesday. Commissioner Butler
requested a copy of Eric's contract.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending December 31, 2004: Committee
Chairman Charlotte Sinadinos reviewed the financial statements as follows:
a. Lansing City Market- December 31, 2004:
Income Statement: Building Rental for the current period is $4,721, which exceeds the
prior year's amount of $3,392; year to date Building Rental is $29,922 compared to
$25,020 for the prior year. Total Operating Revenues for year to date are$35,669 which
exceeds the prior year's amount of$31,022. Operating Expenses- Utilities for year to
date are $22,263 which exceeds the prior year's amount of$20,601 by about$1,600.
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January 25, 2005
Insurance/Bonding is down for year to date at $1,234 compared to $2,162 for the prior
year. Total Operating Expenses for year to date are$72,681 compared to the prior year's
expenses of$71,814 for an Operating Loss year to date of($37,011), which is less than
the prior year's loss of $40,791. After taking into account the City Contribution and
Interest, we have income for year to date of$5,706 compared to the prior year's income of
$2,283.
Balance Sheet: Our total cash is $56,381 versus $6,457 for the prior year. Accounts
Receivable are down for the current period at $139,915 compared to $184,888 for the
prior year. Unreserved Equity for the current year is $171,993 which is less than last
year's amount of$174,827.
Budget vs. Actual: Total Operating Revenues for the current period are better than budget
by $1,060 and for year to date we are better than budget by $1,778. Building Rental for
year to date is better than budget by $3,475. Operating Expenses - Salaries/Wages are
better than budget by $2,735. Utilities were higher than budget for year to date by
($2,949). Insurance/Bonding is better than budget by$991. Total Operating Expenses are
better than budget by$7,895 for year to date. After taking into account City Contribution
and Interest, we are better than budget by $8,799.
b. Oldsmobile Park- December 31, 2004:
Income Statement: Event Revenues for the current period are $20.07 which is interest.
Event Expenses are $467 (the remaining expenses from Fright Night and the movies) for
an Event Loss of($447); which was applied to the Event Development Fund. Operating
Expenses-Salaries/Wages for the current period are higher than the previous year's due to
the allocation and is$5,719 compared to the prior year's$3,891. Utilities for year to date
are $35,638 which exceeds the prior year's amount of $29,669. Insurance/Bonding is
down significantly for year to date at$18,824 which is less than the prior year's$32,898.
Total Operating Expenses for year to date are$133,769, which is less than the prior year's
amount of$137,461. After adding in the City Contribution and Interest, we have a loss
year to date of($3,878) compared to the prior year's loss of($16,908).
Balance Sheet: Total Cash is $31,096 which is less than the prior year's $111,598. The
Net Event Development Fund is at$54,490 for the current year compared to$54,337 for
the prior year. Unreserved Equity for the current year is $65,749 which is less than the
prior year's amount of$83,496.
Budget versus Actual: Operating Expenses - Salaries/Wages are better than budget by
$2,504. Utilities are higher than budget by $6,226. Insurance/Bonding is better than
budget by$14,673.Total Operating Expenses for the current period are better than budget
by$26,085. After taking into account the City Contribution and Interest we are better than
budget by $6,492. Chairman Sinadinos noted there is also a new item listed, "Transition
Expense" in the amount of$11,358.
At 8:15 a.m. Harold Leeman entered the meeting.
c. Lansing Center - December 31, 2004:
Income Statement: Chairman Sinadinos noted that the Total Operating Revenues are down
overall compared to last December we had the MDOT and Cool Cities in house.
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January 25, 2005
Building Rentals for the current period are $31,768 which is less than the prior year's
amount of$36,461 and for year to date the amount is$340,167 which is less than the prior
year's amount of $352,045. Food and Beverage for the current period is $164,803
compared to $165,677 for the prior year and the year to date the figure is $1,291,000,
which exceeds the prior year's amount of$1,027,000. Total Operating Revenues for the
current period are$276,739 compared to$330,135 for the prior year; and the year to date
revenues are $2,074,000 compared to $1,884,772 for last year. Under Operating
Expenses- Salaries/Wages are similar for year to date at$797,206 compared to$796,507.
Fringes/Related Costs are down at $248,570 compared to $273,327 for year to date.
Utilities for year to date are$291,069 which exceeds the prior year's amount of$262,423.
Insurance/Bonding for year to date is $53,298 compared to $75,491. Total Operating
Expenses for year to date are $2,642,000 which exceeds the prior year's amount of
$2,570,000. After factoring expenses against revenues, we have a loss for year to date of
($567,714)which is less than the prior year's loss of($685,838). Transition Expenses have
also been added as a line item. After taking into account the City Contribution,Transition
Expenses and Interest, we have a loss of($148,834)for year to date compared to the prior
year's loss of($369,581).
Balance Sheet: After totaling together Cash and Restricted Assets for the current year we
have$433,000 compared to$372,000 for the prior year. Unearned Revenue- Advanced
Rent (an indicator of future business) for the current year is $376,718 compared to the
prior year's amount of $373,672. Unreserved Equity is $85,733 for the current year
compared to $57,240 for the prior year.
Budget versus Actual: Building Rental for year to-date is less than what was budgeted by
($12,927). Food and Beverage Revenues for year to date are better than budget by
$55,055. Equipment Rental is better than budget by$58,482. Total Operating Revenues
are better than budget by $90,271. Total Operating Revenues for year to date are better
than budget by $129,423. Under Operating Expenses- Salaries/Wages are better than
budget by $45,328. Fringes/Related costs are better than budget by $22,029.
Insurance/Bonding are better than budget by $17,999. Total Operating Expenses for the
current period are better than budget by $9,840 and for year to date they are better than
budget by$9,239. After netting Expenses against Revenues for year to date we are better
than budget by $138,662. After taking into account the City Contribution, Interest,
Transition Expenses and the City under funding we are higher than budget by $80,682.
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, 2004 are received as published, and further that the monthly expenses for each entity
be approved.
Commission Peters noted that she attended the Finance meeting and there are some major
areas where we are realizing some savings due to the good work by our finance area.
Utilities, which was a concern last year, and our Fringe Benefits, which is our human
investment and was of concern last year, have improved and is significant because of the
major role a Board has in their fiduciary responsibility. She noted that she appreciated the
work and the success of our efforts with regard to being strong stewards of the dollar.
SUPPORT: Commissioner Peters, the motion carried and the financials were approved as
submitted.
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January 25, 2005
2. PROPOSED FYE 2005-6 ANNUAL BUDGET: Chairman Sinadinos noted that the
Finance Committee has met twice to review the budget and Glenn Kirk and Dick Berends
provided support and feedback in terms of the City budget and we are expected to be very
diligent in presenting a bare bones budget, which essentially she feels we have done.
Chairman Sinadinos noted that we have already done a lot to reduce costs; through
Marian's efforts the liability costs have decreased significantly through her research and
continued attention. She also noted that vacancy factors are figured into the budget and
LEPFA continues to take on more responsibility instead of less with Common Ground and
if we expect to continue to operate at full pace we can't expect to cut people's salaries and
do the work that they are at Common Ground and expect it to continue to be as effective as
it has been. Eric will have the opportunity to review the budget when he arrives. Chairman
Sinadinos also noted the need to establish a Capital Fund to protect the integrity of the
building and keep up the maintenance, in order to compete with the competition. She also
noted that the Lansing Center also generates parking revenue which we won't receive but
should get credit for generating. She noted other like Centers receive parking funding or
bed tax funding. It was noted that this is a "Preliminary Budget" as indicated in the cover
letter. Glenn Kirk clarified that this should be taken as a request for support for funding
from the City, and he noted that whatever is approved today, there is a high probability
that it will change and that the probability that this budget will be adopted in that format as
the approved budget of the City is remote.
a. Cover Memo: Marian noted that the memo presents the highlights of the 2006
Preliminary Budget and indicates that we project $4,928,000 in Revenues for the
Lansing Center and the City Market versus Expenses of$5,830,000 for a projected
City Contribution of$700,036 which is a$12,000 decrease over 2005 FY and is due
to an increase in revenues of $76,000 at the Lansing Center which is lead by a
$50,000 increase in Equipment Rental at the Lansing Center. In regard to Oldsmobile
Park, we are projecting $214,000 compared to $226,000 for 2005 which is a 5.2%
reduction. At the City Market we are projecting revenues of$81,220 compared to
expenses of$156,000 which projects a City contribution of$73,809 which is a slight
increase of $1,800 over the prior fiscal year. Consistent with our past budget
allocation policy, we have incorporated into the budgets for the Lansing Center and
Oldsmobile Park an allocation of$70,000 which was agreed upon last year (prior
year's the allocation was $42,000). The memo also highlights Common Ground
noting that it was financially successful this past year, and to-date we have seen over
360,000 patrons, with an economic impact in excess of$17,000,000. The Festival has
given back $100,000 to community groups despite the fact that the Festival has only
been recently successful financially. Marian noted the memo expands on the allocation
discussion and provides a brief budget history.
b. Lansing City Market Budget: Building Rent is projected to increase slightly
over Fiscal Year 2005 at$56,000 compared to $54,800 and Parking is projected
to be slightly less than the current fiscal year, based on the past fiscal years. Total
Operating Revenues are projected at $81,220. Salary/Wages are exactly the same
as the current Fiscal Year and Fringes are expected to decrease based on
prescription drug changes. Utilities are expected to increase at$41,800 compared
to $39,000 for the current fiscal year. Total Operating Expense are $156,029
compared to the current amount of$157,424. After factoring in interest we have a
proposed City Contribution of$73,809.
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January 25, 2005
c. Oldsmobile Park: Operating Expenses includes the allocation which we have not
done in previous years. Salaries/Wages are very similar to the current fiscal year
at $25,455 versus $25,083; the allocation that relates to Salaries/Wages is $55,325.
The actual projected for Fringes is $6,513 with the allocation of$14,675. Marian
noted that the combined allocations total $70,000. Other Operating Expenses
include Utilities at$62,175 which is an increase over the current period fiscal
year's amount of$58,230 based on the analysis of previous fiscal years.
Insurance/Bonding is expected to decrease at$46,482 versus $67,000 for the
current fiscal year. Total Operating Expenses are $287,021 versus $229,000 (this
fiscal year didn't include the allocation). The City Contribution for Oldsmobile
Park is $214,521 for the Operating Expenses, $70,000 for the Allocation and
$15,000 for the Diamond Classic, which the City has consistently supported on an
annual basis.
d. Lansing Center: Building Rent is projected down about$10,000 for the upcoming
Fiscal Year ($980,000 compared to $990,000) and the actuals for Building Rent for
the current fiscal year are projected at$915,000-$920,000. Food and Beverage is
projected at$2,805,000 versus a current budget of$2,775,000 and we are
projecting we will come in at$2,785,000. Equipment Rental was projected for the
upcoming Fiscal Year at $549,000 compared to the current year's budget of
$504,500 which is a $45,000 increase. Total Operating Revenues are projected at
$4,847,000 compared to current year's budget of$4,771,000 which is a $76,000
increase overall in total Operating Revenues. Under Expenses— Salaries/Wages are
$1,588,000 (full-time) compared to the current fiscal year's amount of$1,557,000
which is a 2% increase over the current year's budget. Events (Salaries/Wages)
are at $299,000 compared to the current fiscal year's $292,000. Total
Salaries/Wages are $1,887,000 compare to $1,849,000 which is about a 2%
increase. Fringes/Related Costs are projected at $565,000 compared to the current
year's $564,000; the slight changes were attributed to the fact that this is the first
full fiscal year that we budgeted for the change in prescription drugs. Utilities are
projected at$601,000 compared to $595,000 for the current fiscal year, and is
based on an analysis of previous year's figures. Insurance is projected at$97,127
compared to the current fiscal year's amount$142,600. Food and Beverage
expense is $1,711,000 compared to $1,706,000 for the current fiscal year. Total
Operating Expenses are $5,674,000 compared to $5,645,000 which is a $34,000
increase. After factoring in interest on bank accounts we project an income loss of
($696,000) and after factoring in the allocation of$70,000 we reach a proposed
City Contribution of$626,000.
Commissioner Butler questioned why the Lansing Center's signage/promotion
figure was down. Marian explained that through the Marketing Department we
have agreements with various companies that pay us a fee for advertising and value
added services that we provide to them. The market place has changed, i.e. the
loss of a phone provider. Currently we are working on a bank agreement which we
just put out and requested the same level of service and all of the RFPs were
returned with no dollars for providing the service. After taking into consideration
the deals that are in place, the only one we can count on is Pepsi. Marian noted
that the Marketing Department will be working on continuing to try to secure
sponsorship deals but they may be in terms of reducing expenses as opposed to
adding revenue.
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January 25, 2005
Commissioner Butler asked what the allocations are. Marian explained that it is a
figure that was discussed with the auditors and the City and is an amount of staff
salaries and wages allocated to Oldsmobile Park; initially the auditors suggested
25% of management positions be allocated (its outlined in the Salary Allocation);
however, it was agreed that 4%/$42,000 in wages be allocated and reflected in the
Oldsmobile Park budget. Last year the number was revised to 6.5%/$70,000 and
was added to the Oldsmobile Park budget and subtracted from the Lansing Center
budget. Marian explained that the actual column includes the allocation are
reflected in the expense.
Vice Chairman Sharon Peters noted that the answer to James' question is in the
introductory memo, but could use further explanation. She noted that we will have
a very tough budget year, and the issues that the City is facing are huge, and our
issues are huge as well. She that there are many ways we could be discussing and
viewing the budget so it is important for all us and our partners in the City to
recognize that there are many ways that LEPFA is giving and that we are operating
at bare bones. She noted that it is important to look at details; and it is significant
as to how we show things; i.e. parking, we need a way to show and receive credit
in our budgeting so that the work and the contribution that LEPFA makes to the
overall City is accurately displayed because in many realistic ways we are not as
much of a "drain" on the City as sometimes as it shows and are in fact a
contributor. She noted that the questions are very good ones and we need to be
mindful of all of this as we move forward and we may need to restructure the
financial statements and pages so that we show our achievements. Commissioner
Butler noted that the format and the pages are extremely good and flow, and it
helps us to understand the process. Commissioner Butler recommended that a
summary page be included. Marian noted that in the Salaries/Wages there is a
$40,000 vacancy factor and in fringes there is a $50,000 vacancy factor and these
line items have already been reduced by $90,000.
Commissioner Janssen noted that the contribution income from Common Ground is
not a line item in this budget and Marian explained that it would be hard to predict
what that amount would be. Commissioner Janssen asked at what time it would be
appropriate to have a separate budget for Common Ground. Marian noted that we
separated Common Ground as a separate company, Center Park Productions, to
maintain the integrity and to protect LEPFA from Common Ground.
Commissioner Janssen also asked if we do a cost allocation to Common Ground.
Marian referred everyone to the Labor Service line item in the Lansing Center
budget and noted it is at $217,500 versus $186,000 for the current fiscal year and it
includes $30,000 in revenue from Common Ground. Commissioner Butler
clarified that the Board has oversight and responsibility for Common Ground.
Commissioner Janssen suggested moving forward that we have some type of
summary on Common Ground. Marian noted typically the Board receives a
summary sheet and the 2004 report will be distributed to the Board next month.
Glenn Kirk reviewed three charts with the Board that he had previously shared with
the City and Council. He indicated that state shared revenues were at a high point
in 2001 and ever since we have a precipitous drop, with 2005 continuing on a
downward curve based on revenue sharing and the current budget.
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January 25, 2005
Meanwhile General Services continues to move up, Fringe Benefits have gone up;
Public Safety, Police and Fire, and Parks and Rec have gone up. Last year there
was a projected 19% jump over what the Board asked the City to contribute to the
operation (over what has been traditionally allocated) and was used as the new
stable point and was viewed as a one time jump up. The new level will be more in
the $600,000 range and he suggested that we can immediately look at cutting
expenses and/or a 2% increase in revenue, or look at what LEFPA actually did in
2003-4 in terms in revenues. He noted there are many ways to tackle this issue and
noted that he is willing to assist in that process; however there needs to be a
concentrated effort and do what we did in 03/04 actuals. He felt he needed to share
what the reality is, and noted that they are willing to look at other options. Mr.
Kirk plans to meet with the Finance Committee every month and will make time to
meet with any Board members at any time.
Finance Committee Chair Sinadinos noted that the Finance Committee was hoping
to review the budget as is and noted that it is up to the Board as to how they wished
to proceed. Chairman Haggart suggested that we submit the budget as presented.
Committee Chairman Sinadinos moved that the Board approve the proposed
budget; Second: Commissioner Butler. Commissioner Butler recommended that
based upon Glenn's statements that we review the budget again, but present the
budget as it is. Marian noted that Eric will review the budget as well. Mike noted
we will also look at the consequences of any further cuts as well.
Commissioner Jeffries noted that some the charts that were displayed showed areas
that LEPFA has already dealt with such as the health benefits, and that our lines in
comparison to the City's graphs would be much flatter. She noted that there also
appears to be confusion regarding allocation and that it would be helpful if we were
to do another chart that would provide further explanation. Commissioner Janssen
asked if the historic subsidy for the City Market is bottom line. Marian noted that it
is. Chairman Haggart noted that is has been moved and properly supported to
move the proposed budget forward. The motion was unanimously carried.
At 9:02 a.m. Glenn Kirk exited the meeting.
C. INTERIM PRESIDENT & CEWS REPORT:
Mike noted that it has been a very active thirty day period with the new CEO announced and
discussions are underway with transition items.
1. Union Updated: Mike Barber noted that since the Board last met, two meetings have taken
place with the Audio Visual Union. Their proposal has been reviewed and agreed upon;
however, outstanding economic issues have yet to be resolved. Mike invited Dirk to
comment on the process. Dirk noted that this group of four people has not seen increases
in wages in 5-6 years and after hearing the budget constraints, he noted that other options
and looking outside of the box maybe considered, such as a share of the revenue to
LEPFA. He also noted that having had no wage increase for 5-7 years is a serious burden
for others. He noted that issues such as medical insurance have been pondered and they
continue to try to be as reasonable as possible, but necessities of life are still necessities
(heat, clothing, etc.).
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January 25, 2005
He noted that they are at a very "ticklish" point right now and he has made that clear to
Mr. Barber and Ms. Bryant during the last negotiations sessions, and things have become
polarized in his view. He noted that their main concern is that they visibly contribute, as
Mr. Butler alluded to, and that they improve the revenues at the Lansing Center so
markedly that they have become even more indispensable; and he would hope that
there would be some recognition by some remuneration of their value to the Lansing
Center. Mike noted that in conclusion/summary, we have met and are making good
progress.
Dirk reported that half of the Union has not had an increase for seven years; Marian
suggested that it has been five years. Mike Barber asked when the last set down meeting
took place. Dirk noted that he was absent from the Center for a year and a half and that he
did not know what happened during that time and that there has only been two meetings
in the past seven years to his knowledge. Mike Barber noted that while it has been a
while, it is timely and we need to resolve the issue, however it's a unique situation
because they have approached negotiations by combining first on calls(part-time)and full-
time staff. Mike noted that it would be a little cleaner if they were just discussing the full-
time staff; so there are some extenuating circumstances. Meetings are taking place.
Dirk indicated further that MERC was so astounded by the circumstances and found it so
unusual that they had no problem granting them separate status and allowed them to
separate from an "unproductive relationship" with another organization. He noted they
have lost an individual and that they aredealing with people with very unusual skills (i.e.
riggers, audiovisual) and can put on programs that a facility of this size otherwise could
not. He displayed a document of their job skills and questioned what it would take for the
facility/LEPFA to go out and contract those separate skills.
Commissioner Butler indicated that he did not want to micromanage and suggested that
Management is doing their best and asked Mike Barber to prepare a written update prior to
the next Board meeting.
2. Lansing Center: Linda Frederickson reported during December we held 45 events,which
equated to 53 event days, with over 13,500 in attendance and room nights totaling 379 for
an estimated economic impact of over $289,469 for December.
• Event Highlights: During January the Boat Show was held and this was the first
year that admission was charged ($5.00) and it was the first year that the event
expanded to all three halls. January 10-12 the Michigan Agri-Business Conference
and Tradeshow was in the building with 600 attendees on site and they plan to book
an additional day for 2006. The Bridal Show had 1,500 attendees on Saturday,
January 15 and attendance was up by 150. January 15-16 the Intergalactic Bead
Show took place in Exhibit Hall B and attendance was over 1,000. Monday,
January 17 the Dr. Martin Luther King Jr. luncheon was held; AAA Michigan was
in house as well as the Great Lakes Aviation Conference which moved to the
Lansing Center from the Kellogg Center.
• Upcoming Events: Upcoming events include the Motorcycle Swap Meet; the
Women's Expo; the Deer and Turkey Spectacular; the Buggy Builders and the
Golf Show with a number of conferences and tradeshows scheduled as well.
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January 25, 2005
• Sales Highlights: Weddings for 2004-5 equated to 29 definite bookings
compared to 21 for 2003-4; and for 2005-6 we have 13 definite bookings and 6
prospects to-date.
• Confirmed/Repeat Business: Contracts have been issued to: the Michigan
Council of Arts & Cultural Affairs - Cool Cities Conference; Shipshewana on
the Road for December 2005; Michigan Foundation of Education Leadership -
Governor's Education Summit in March, 2006; Capital Area Michigan Works -
Youth Expo for April; and the Michigan Interscholastic Press Association for
their Spring Conference.
• Potential New Business: Proposals have been submitted for a Stamping
Distributor meeting; the Michigan Conservation Districts for December; Mary
Kay has blocked space for their March 2007 and 2008 conventions; Michigan
State Police Office of Highway Safety and Planning for October/November 2005;
and a Business Expo (sponsored by the Greater Lansing Business Monthly- Chris
Holman) for January 2006.
At 9:28 a.m. Jim Ruff exited the meeting.
3. Oldsmobile Park: Mike reported that we received HNTB's report and met on January 19
(Eric attended that meeting as well as Tim Haggart and Glenn Kirk). Their needs list is
about $3.5 million with the high priority items at a cost of about $2,200,000. Issues
include the funding, which Glenn Kirk is researching, and HNTB was asked to add a "life
cycle" column to their report which can be incorporated in the capital plan for Oldsmobile
Park. They will also develop a spread sheet.
A second meeting was held on a proposed ten year extension on the TMO agreement. He
noted that the extension is a high priority for Tom Dickson and the City, and there is a
target date of April 1 for the completion of the agreement. In addition, staff has met with
the Lugnuts operationally for pre-season meetings to discuss parking, safety, staffing and
food and beverage. Staff is also meeting with MSU staff to begin pre-season planning.
Mike noted that Laurel does a great job in participating in all of the Oldsmobile Park
meetings and takes a lead on all of the non-baseball events.
4. Lansing City Market: Linda Frederickson reported that two years ago we did an analysis
of the City Market compared to various other Markets which will be updated and
distributed. Linda reported that Rent Revenue was up for December by 20%, and
occupancy was at 77% versus 68% for December, 2003. January through March "winter
hours" will be in effect as recommended by the Vendor's Association(10:00 a.m. - 5:00
p.m.), this is the second year for winter hours. Linda has contacted Mike Barber, David
Wiener and Paul Novak the City Attorney regarding the shutting down of the City Market
Caf6 due to a case of food poisoning in December. The vendor has been on a month to
month lease for 15 months, photos have been taken of the space, and all of the necessary
steps have been taken. The Health Department can't close him because he doesn't serve
enough customers, and it is their expectation that as the Landlord we will address the
matter since they do not recommend that anyone eat there. He will be told that he will not
be offered the opportunity to lease space at the City Market.
LEPFA Board of Commissioners Meeting
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January 25, 2005
Commissioner Butler questioned the status of the Market study that was presented, and to
be performed by UofM and MSU. Linda noted that they haven't been able to secure grant
funding ($80,000).
Commissioner Janssen asked who will be the Market spokesperson from the Board's
perspective, and he noted that until we have further direction from the City Council we
should have one person to direct all inquiries to. Linda is the spokesperson and
Commissioner Butler asked Linda to develop talking points for Board members.
Commissioner Janssen asked who has copies of the various City Market reports.
Commissioner Jeffries noted that the information may no longer be relevant and is out
dated.
5. Commissioner's Comments— Commissioner Sharon Peters: Commissioner Peters asked
to comment because she had to depart the meeting. She noted that the last several months
have been such an important time for LEPFA and that she has seen more Board
involvement, activity and teamwork in the past several months that in the entire time she
has been on the Board, although most of it is driven by necessity, with the change in
leadership. She commended the entire Board on the work that they have done; and that
the announcement of Eric Hart is very important, and that there is a good sense of
involvement in that selection. She specifically commended Chairman Tim Haggart,noting
that he has carried the Board through, kept up, and kept the Board informed with this
major undertaking. She commended Mike and the Board for their leadership.
Tim noted that Mike's contract is up the end of this month and he has asked him to stay on
for another month to work with Eric and Mike has agreed.
At 9:50 a.m. Sharon Peters and Margaret Vroman exited the meeting.
6. Common Ground Update: Mike noted that Eric did have an opportunity to attend a
Common Ground meeting and met Kevin Meyer. Linda Frederickson reported that we
have our first act booked for Saturday night, July 16. We have booked Gavin McGraw,
who is popular with the younger crowds and is an up and coming artist.The second group
booked for Saturday night is "Silver Tide" and they are a young rock group. Single day
tickets will go on sale next Saturday. Common Ground dates this year are July 11-17.
7. Finance Department Update: Marian noted that our ATM with National City Bank was
removed on December 20 and we have been reviewing our options and have decided to
purchase an ATM that we will operate out of the Finance office. It should be on board
sometime this week, and will be additional revenue for us. Marian noted there are not any
more security risks than there are with National City. Commissioner Jeffries asked if it
could be used for Common Ground, Marian noted that it is not portable and one has not
been purchased for Common Ground.
At 9:59 a.m. Commissioner Charles Janssen exited the meeting.
8. Food and Beverage Update: Bill Grove reported that the MLK banquet went well. He
noted that we used non-profit groups for this event, University Christian Outreach Group
through MSU and Lansing Catholic Central/AAU Girls Basketball team who included
Judge LaRusso as a server, and he noted that it is a win/win situation for everyone.
LEPFA Board of Commissioners Meeting
Page 11
January 25, 2005
Bill Grove reported that we are in our busy season, and he commented that Food and
Beverage was ahead in December in comparison to budget in terms of revenue and bottom
line.
D. PERSONNEL COMMITTEE: No report.
E. LONG RANGE PLANNING COMMITTEE: No report.
F. TRANSITION COMMITTEE: No further report.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Linda Frederickson: Linda reported that Jeff Pluff, the Creative Services Manager, has been
hospitalized since January 6 at Sparrow Hospital with Guillain-Barre Syndrome and is on a
medical leave of absence and will possibly be out of work for up to a year. Jeff will be in the
hospital for likely another month and they think he has peaked and is on the road to recovery.
She explained his symptoms and complications and something has been sent from the LEPFA
staff and Board. Staff has been visiting him and continues to keep things moving forward. Lisa
Wootton will be contacted to see if she would be interesting in assuming some of his graphic
duties.
B. Harold Leeman: Harold asked if there was any news on the renaming of Oldsmobile Park.
Mike Barber noted that Tom Dickson would like to have the ten year extension completed and
then have the re-naming ready to unveil and wrap it in a press conference prior to the start of
the season. Linda noted the ball is really in General Motors' court. The naming rights is a 15
year agreement.
In regard to the City Market, Mr. Leeman indicated the Sandy Allen was asked by a Lansing
State Journal about her goals as President of the City Council and at that time she brought up
the issue of the Market. He noted that the comments are Sandy's and they are not necessarily
the opinion of the entire Council. He did suggest that it might be in LEPFA's best interest to
develop a "Point of View" and a chronology of events to the present so that people understand
that LEPFA oversees the Market on a day to day to basis.
C. Commissioner James Butler: Commissioner Butler complimented Chair Haggart on a great
job; he noted that he keeps the Board informed of what is happening. He also thanked Mike
for his follow up on the Management information; Denise Peaks' issues; etc. He extended a
"great job" to Marian and Charlotte on the budget and that he appreciated the clarity and their
hard work. He complimented Mike on a stellar job. He recommended that the Board sit down
with Sandy Allen to discuss the City Market and he indicated that she is willing to meet with
the Board. He also indicated that he is glad to see we are moving along on Common Ground
and is glad to see that at this point in time we have already signed a performer.
D. Commissioner Ellen Jeffries: Commissioner Jeffries noted that she wished to reiterate what
James and Sharon said about the budget and noted that Charlotte and Marian did a great job
and she also commended Tim for his leadership during the search and Mike for the job he has
done as Interim.
LEPFA Board of Commissioners Meeting
Page 12
January 25, 2005
Linda reported that Jim Wootton did pass and the luncheon for him was held at the City
Market on January 16 with several hundred people attending.
E. Commissioner Tim Haggart: Chairman Haggart thanked everyone for their involvement in
helping him out in the Transition process and thanked Mike Barber as well.
VIII.OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 10:10 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY,FEBRUARY 22,2005 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 22, 2005
MINUTES
At 8:03 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, Ellen Jeffries,
Glenn Kirk(Ex-officio), Cyril McGuire, Jim Ruff(Ex-Officio), Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Kris Nicholoff and Sharon Peters.
OTHERS PRESENT: Michael Barber, Heidi Brown, Marian Bryant, Linda Frederickson,Bill Grove, and
Dr. Dirk Spillemakers-Lansing Entertainment and Public Facilities Authority; Margaret Vroman,City of
Lansing.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda.
IV. PUBLIC COMMENT: Mr. Spillemakers acknowledged a receipt of a memorandum from Mr.
Barber dated February 16 and that he wished to pass along to the Board that they had what he
considered "a sad situation" in that they have construed comments/communication to be "pre-
conditioning" bargaining. He noted that it is his history that when something like "pre-
conditioning" occurs that the administration gives rights to certain members; and he noted that his
organization, ANTA, bargains for itself, not the UAW or any other unions. He noted further that
it has been his experience that when they see Administration taking certain tasks, that it
follows that administration's next proposal, while they have to be careful about what the financial
implications are for any proposal that would make it to this body because of what it can do to the
other bodies because that is how it has been negotiated. He noted unfortunately they cannot work
on that basis and it is very important for them to be able to negotiate only, and solely for
themselves on their merits, or the merits that they don'thave. He commented further that he
hoped it will be wrapped up soon and that they do not have to suffer with the stigma of being
associated with another group and bargain effectively with another group or against another group
because of circumstance that may exist with another union. He noted that he realizes this is
difficult, but it is what they try to shoot for and that he bargains only for ANTA, not for the UAW
and the UAW doesn't bargain for them. Dirk extended his thanks.
At 8:03 a.m. Jim Ruff entered the meeting.
V. APPROVAL OF THE MINUTES OF JANUARY 25, 2005: The minutes of January 25, 2005
were adopted as presented. MOTION: Commissioner Butler SECOND: Commissioner Janssen;
the motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
1. Lugnuts Agreement: Chairman Haggart commented that Mike Barber, Eric
Hart, and Scott Keith have been working with Tom Dickson on finalizing
!- -- - extension of the agreement with the Lugnuts. He noted that it is going fairly well,
L - other than financing concerns with the City and that he hoped we would have it
L;• worked out this week.
_J
LEPFA Board of Commissioners Meeting
Page 2
February 22, 2005
2. Chef of the Year Award: Chairman Haggart reported that Chef Hadley had been
awarded the "Chef of the Year" award at the recent Chef's Professional Awards
banquet which was held at the Lansing Center. Bill explained the Association and
noted that the Lansing Center also received a plaque for our contribution to the
association over the years. Commissioner Butler suggested that a letter/resolution
be submitted recognizing Chef and the notoriety he brings to the Lansing Center.
3. Flint City Market Trip: Chairman Haggart reported that he has asked Linda
Frederickson to coordinate a trip to the Flint Market and he asked that City
Council and Board members be invited to attend.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending January 31, 2005: Committee
Chairman Charlotte Sinadinos reviewed the financial statements as follows:
a. Lansing City Market- January 31, 2005:
Income Statement: Building Rental for the current period is $4,028, which exceeds the
prior year's amount of $3,092; year to date Building Rental is $33,950 compared to
$28,112 for the prior year. Total Operating Revenues for the current period are $9,185
and for year to date they are$44,854 which exceeds the prior year's amount of$40,207.
Operating Expenses- Salaries/Wages for year to date are$26,759 compared to$26,282.
Utilities for year to date are $27,874 which exceeds the prior year's amount of$26,244.
Insurance/Bonding is down for year to date at$1,495 compared to the prior year's amount
of $2,489. Total Operating Expenses for the current period are $12,000 compared to
$16,052 and for year to date they are $84,681 which is less than the previous year's
amount of$87,866. We have an Operating Loss for year to date of($39,827), which is
less than the prior year's loss of ($47,659). After taking into account the City
Contribution, Transition Expenses and Interest, we have income for year to date of$6,821
compared to the prior year's loss for year to-date of($838).
Balance Sheet: Our total cash is $59,751 versus $4,542 for the prior year. Accounts
Receivable are down for the current period at $138,490 compared to $190,159 for the
prior year. Unreserved Equity for the current year is $173,108 which is less than last
year's amount of$171,705.
Budget vs. Actual: Building Rental for year to date is better than budget by $4,453.
Parking is less than budget by ($2,387). Total Operating Revenues for year to date are
better than budget by $1,955. Operating Expenses - Salaries/Wages are better than
budget by $3,145. Utilities were higher than budget by ($5,117). Insurance/Bonding is
better than budget by$1,101. Total Operating Expenses are better than budget by $8,336
for year to date. After factoring expenses against revenues, we are better than budget by
$10,291 and after adding in the City Contribution and Transition Expense we are better
than budget by $9,215.
b. Oldsmobile Park- January 31, 2005:
LEPFA Board of Commissioners Meeting
Page 3
February 22, 2005
Income Statement: Event Revenues for the current period are $21.01 which is interest.
Event Expenses are$5.00 for a net of$16.01 which was applied to the Event Development
Fund. Operating Expenses- Salaries/Wages for year to date are $42,964 compared to the
prior year's amount of$29,592 which is due to the allocation increase implemented this
year. Utilities for year to date are $44,938 which exceeds the prior year's amount of
$38,707. Insurance/Bonding is down for year to date at$22,779 compared to$37,858 for
the prior year. Total Operating Expenses for the current period are $24,149 compared to
$26,906 and for year to date they are$157,918, which is less than the prior year's amount
of$164,368. After adding in the City Contribution, Allocation, Interest, and Transition
Expenses we have a loss year to date of ($8,285) compared to the prior year's loss of
($23,746).
At 8:17 a.m. Glenn Kirk entered the meeting.
Balance Sheet: Total Cash for the current year is $20,510 which is less than the prior
year's$89,634 and is down significantly because we haven't received the allocation. The
Net Event Development Fund is$54,506 for the current year compared to$54,344 for the
prior year. Unreserved Equity for the current year is $61,359 which is less than the prior
year's amount of$76,665.
Budget versus Actual: Operating Expenses - Salaries/Wages are better than budget by
$3,411. Utilities are higher than budget by $10,420. Insurance/Bonding is better than
budget by $16,301. Operating Income is better than budget for year to date by $25,720.
After taking into account the City Contribution, City under Funding,Transition Expenses,
and Interest we are better than budget by $955.52 for year to date.
c. Lansing Center — January 31, 2005:
Income Statement: Building Rental for the current period is$97,195 which is less than the
prior year's amount of$120,274 and for year to date the amount is$437,362 which is less
than the prior year's amount of$472,319. Food and Beverage for the current period is
$218,405 compared to $299,138 for the prior year and the year to date the figure is
$1,509,000, which exceeds the prior year's amount of $1,326,000. Total Operating
Revenues for the current period are $438,107 compared to $553,980 for the prior year;
and the year to date the revenues are $2,512,000 compared to $2,438,000 for last year.
Under Operating Expenses— Salaries/Wages for year to date at $925,989 which is less
than the prior year's amount of$942,135. Fringes/Related Costs are down at$289,906
compared to$321,075 for year to date, which is down due to the allocation to Oldsmobile
Park and vacancies. Utilities for year to date are$345,274 which exceeds the prior year's
amount of$314,917. Maintenance of Facilities is $53,496 for year to date compared to
$24,961 for the prior year, and the difference is attributed to repairs on the ceiling and
removal of partitions.
Total Operating Expenses for the current period $432,053 compared to the prior year's
current period amount of$497,049 for a year to date loss of($561,660)which is less than
the prior year's loss of ($628,908). After taking into account the City Contribution,
Transition Expenses and Interest, we have a loss of($120,226) for year to date compared
to the prior year's loss of($256,484).
LEPFA Board of Commissioners Meeting
Page 4
February 22, 2005
Balance Sheet: After totaling together Cash and Restricted Assets for the current year we
have$429,000 compared to$372,000 for the prior year. Unearned Revenue- Advanced
Rent (an indicator of future business) for the current year is $420,913 compared to the
prior year's amount of $360,523. Unreserved Equity is $114,342 for the current year
compared to $170,336 for the prior year.
Budget versus Actual: Building Rental for year to-date is less than what was budgeted by
($13,643). Food and Beverage Revenues for year to date are better than budget by
$56,333. Total Operating Revenues for year to date are $2,512,000 and are better than
budget by$140,714. Under Operating Expenses-Salaries/Wages are better than budget by
$55,054. Utilities are better than budget for year to date by$2,338. Insurance/Bonding is
better than budget by$20,211. Total Operating Expenses for the current period are better
than budget by$6,984 and for year to date they are better than budget by $16,223. After
taking into account the City Contribution, Interest, Transition Expenses and the City under
Funding we are higher than budget by $82,373.79.
Glenn Kirk questioned the Lansing Center's shortfall in building rent, and the overall
budget figures for food and beverage, and equipment rental and asked if they are driving
down the total building rental. Marian noted that is true to some extent due to the wedding
package structure (no rental income, it all goes to food and beverage). Mr. Kirk
questioned the competitive nature of our food and beverage and equipment rental and he
asked if we have done comparisons. Mr. Kirk addressed his concerns about food and
beverage pricing. Marian responded that we would continue to review and maintain our
competitive pricing. Bill Grove noted food and beverage has surveyed similar service
providers in the area and in every case our price structure is basically lower than others
especially in regard to the wedding packages. Bill also noted the figures also are a result
of the mix of events, e.g. banquets versus conventions which is why the amounts vary.
Mr. Kirk also addressed his concerns relating to building rental, food and beverage, and
equipment rental in relationship to our price structure and clients. Mike Barber noted that
packages are used to attract clients and they may include reducing rent which we pick up
through equipment rental and food and beverage. It was also suggested that equipment
rental rates are increased because we are taking on more rental in house rather than
through a third party provider. Glenn noted we need to know what is driving the changes.
Mike also noted that advanced rent (future business) is at a record level currently.
Commissioner Butler suggested compiling a summary statement to address the pros and
cons. Mike noted that the information is reviewed while building the budget through the
Finance Committee. Glenn Kirk stated that he heard speculative answers, rather than"this
is what we are looking at" and that he would feel more confident if he knew what it is that
is driving the numbers and noted that if we don't know what's driving the numbers, we are
doing it by chance and he would like to know the impact of our packaging, the mix and the
strategies e.g. weddings, and its impact.
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,
2005 be received as published, and further that the monthly expenses for each entity be
approved.
SUPPORT: Commissioner Jeffries, the motion carried and the financials were approved
as submitted.
LEPFA Board of Commissioners Meeting
Page 5
February 22, 2005
Dirk Spillemakers commented that his unit, since it is involved in equipment rental, at the
present time sees six weeks of work evaporated because of the current negotiations that are
taking place in Grand Rapids. He stated that effectively what they have done in Grand
Rapids is given away the building and that he sees this trend not as speculative,but we see
it as result of what is taking place at other facilities.
Committee Chairman Sinadinos noted that Angela Bennett and Tom Korkoski attended the
Finance Committee meeting and provided feedback regarding our budget plan and
expressed the need for us to look at cutting $100,000 from the budget. Commissioner
Janssen noted that it appears that the most significant portions of our budget that increase
are things that we have to provide, i.e. insurance, utilities and without these items our
budget would be flat. Chairman Sinadinos noted that they tried to bring those issues as
well as parking to their attention. They also suggested that we look at combining services
with the City e.g. personnel. It was pointed out that our benefits have been kept in line
better than the City's at this point. Chairman Sinadinos noted we also mentioned the
parking issue and bed tax funding as revenue sources. Mike Barber noted we have
inquired about the parking rental revenue and they are tracking down that information.
Glenn Kirk noted that LEPFA has never received that revenue as a stand alone and has
nothing to do with the trail line. He noted that he recommended at the last Board meeting
that LEPFA review the revenue line and work so that it is budgeted similar to the last
completed budgeted year. Marian noted the projections are based on the books and it may
be that we can't see the revenue in the books. Chairman Haggart noted that it would be
good to see the parking figures and Glenn commented that it won't help with the budget.
At 8:40 a.m. Glenn Kirk exited the meeting.
Jim Ruff noted that the parking numbers are on a system wide operation and is not a lot by
lot operation. He also noted that LEPFA has lost monthly parkers which impacts the
budget and that the City has lost over 1,000 parkers as well. He indicated that he will
gather individual numbers for events and suggested that we have to be more cautious in
our event planning and sited the Women's Show and noted we need to be more judicious
in our planning. Mike noted that the parking staff does attend our weekly operations
meeting.
Commissioner Butler recommended that we ask Mr. Kirk to attend Finance Committee
meetings, rather than sending representatives. Mike Barber indicated that each time we
have a new person attend we spend a large amount of time reviewing the basics and it
would be nice to have the continuity.
Finance Committee Chairman Sinadinos also noted that we consider this budget to be a
"bare bones budget" and that there isn't a meeting of the minds as to what our purpose is,
why we are subsidized and the entire philosophy. She noted we have already done due
diligence, by budgeting very carefully and cutting is not that easy and is not in line with
the philosophy of trying to be competitive and keeping the Center looking well/updated
and maintained.
At 8:45 a.m. Glenn Kirk returned.
LEPFA Board of Commissioners Meeting
Page 6
February 22, 2005
Commissioner Butler stated, as he had previously indicated, that it is important that Glenn
be at the monthly meetings so that he thoroughly understands what is going on and he also
suggested a side bar for clarity purposes. He noted when representatives attend we take a
step back and continuity is difficult to maintain. Glenn Kirk noted a budget will be
presented to City Council by the Mayor on March 28.
d. Common Ground: Marian Bryant distributed, reviewed and collected a financial
summary sheet on Common Ground.
C. INTERIM PRESIDENT & CEO'S REPORT:
Mike noted that it has been a very busy time and that he and Eric have been immediately
involved in the process and they are in contact daily and Eric is also in contact with Chairman
Haggart and staff which is allowing for a smooth transition. This Friday he will pass the baton
to the new permanent CEO.
1. Union Update: No further report.
2. Lansing Center: Linda Frederickson reported that during January we held 38 events,
which equated to 61 event days, with over 15,000 in attendance and room nights totaling
2,000 for an estimated economic impact of over$715,000. Linda reported the following:
• Contracts/Bookings: Contracts have been issued for Michigan Association of
Broadcasters through 2010 and we are also holding space for MSAE through 2010.
We have re-booked the Delphi Corporation for April, 2006 and we have re-booked
and issued contracts for the State Employees Credit Union for November 2005. A
contract has been issued for "Shipshewana on the Road" through the JDL
Corporation; a contract has been issued for Michigan Foundation of Educational
Leadership— Governor's Summit for March. A contract has been issued for Capital
Area Michigan Works for their spring job fair and their youth expo for 2006. A
contract has been issued for the National Work at Home Mothers for April 2005 and
we have rebooked but not issued a contract for Michigan Council of Arts and
Cultural Affairs in November 2005.
• Potential New Business: A proposal has been submitted for the return of Spartan
Chassis/Motors in August 2006 after being in Battle Creek for two years. A
proposal has also been sent for MASAB for November 2005; and a proposal has
been submitted for a SIMS Consultants for a state-wide Teachers Early State-wide
Development conference in July. We are holding space for an AAA winter
meeting.
• Event Highlights: During the month of January we hosted the Michigan Lumber
and Building Materials Association Conference and Tradeshow; the Michigan
Veterinarian's Conference and the Motorcycle Swap meet. In February we
hosted MSAE's legislative meeting; the Great Lakes Fast Food and Ice Cream
Show; the Women's Show which was very successful with attendance about 40%
higher than the previous year. Michigan Farm Bureau was in house on February
5; February 7-9 American Waterworks was in house; February 9-13 Michigan
Deer and Turkey Spectacular took place with over 11,000 attendees for the three
day event which was a 12% increase over last year.
LEPFA Board of Commissioners Meeting
Page 7
February 22, 2005
We also hosted the Daddy/Daughter and Mother/Son dance on February 13 for
the City of Lansing Parks and Rec Department. February 14-18 Mid-West Reps
was in house for their wholesalers show. February 14-16 Michigan Association
of Drug Court Professionals was in house for their fourth year. We had a
number of receptions and dinners.
• Upcoming Events: Upcoming events include the Michigan Buggy Builders;
Michigan Trucking Association; Michigan Pork Expo; the Golf Show; and
February 28-March 3 Delphi is in house. Michigan Floral is in house for their
last event before moving to Grand Rapids; Michigan Association of Broadcaster
is in house on March 7-9 and the Sportfishing, Boat and Travel Show is in house
on March 10-13. Mary Kay will be on site March 17-19 and the Mayor's Youth
Diversity conference is in house on March 23.
3. Oldsmobile Park: Mike Barber reported that Eric Hart flew in to meet with Glenn Kirk,
Tom Dickson and his staff on the ten year extension of the TMO agreement. He noted
they have requested $200,000 for paint, carpet, protective dugout fencing, etc. Mike
stated that we have about five weeks to accomplish the face lift and that Glenn is finding us
the account number. Commissioner Butler questioned the status of the funding. Glenn
Kirk noted that they are committed to moving forward and finding the money. Mike noted
the issue is time constraints and our target is still April 1. He asked if there is any word as
to when we can begin and Mr. Kirk noted that he hoped it was this week. Chairman
Haggart commented that the Lugnuts are ready to move forward on their own, at their
expense, which isn't going to make us look very good. Mr. Kirk stated that he is
committed to getting the money and he has met with staff and Tom Dickson and that Tom
hasn't moved forward with this agreement for the last ten years and when the deal was
struck there was no money set aside to maintain the stadium and now in very difficult and
hard budget times they are trying to find roughly $250,000 out of the City budget. Mike
noted that is the point in that Glenn has committed to the funding and now it is a logistical
point to figure out how to get that done by April 1. Glenn noted he has contacted the City
Maintenance staff for assistance and it still comes down to finding an additional$105,000.
Mike noted there is still an issue with the carpeting and painting contractors to have it done
by April land each day that passes puts us as a greater disadvantage and requested a target
date. Glenn noted that we targeted last Friday and the week before, and have been
unsuccessful at finding funding.
4. Lansing City Market: Linda Frederickson reported that Rent Revenue was up for January
and occupancy increased 11% over last year and as summer approaches the Manager
expects occupancy to be up by 10-12% over last year. Several vendors were open on
Valentines Day (Monday) and there was a lot of traffic in the market for a "non-market"
day. Market Beautification and cleanup is under way with painting and landscaping. Linda
distributed a Market informational sheet. Linda and Margo met on February 10 with
Kabier, his wife and his lawyer and agreed to a 30 day period, and he should be vacated
by March 11 from the premises. Linda indicated that everything was done as it should be
to remove him. Margo also noted that hopefully he and his equipment will be out and that
we gave him a 30 day extension rent free because of the equipment and we are trying to be
accommodating.
LEPFA Board of Commissioners Meeting
Page 8
February 22, 2005
Commissioner Butler questioned the meeting that was to have taken place regarding the
Market. Linda clarified that Mark Ter Haar attended the Northside Neighborhood meeting
and the topic was how to establish another farmer's market in Old Town. Linda noted that
we did report that we offer one day leases and Mark is sitting on the task force. Denise
Wootton commented that if there is further development that she hoped that the
City would see in its wisdom, and that it would not be very wise to try to under mind the
Farmers Market that they already support before putting public funds toward another
Market. Commissioner Wootton indicated that she felt there was not enough traffic at the
City Market and she commented that the people who want that market haven't looked at
the buying patterns of the City residents as a whole and that there aren't enough customers
to make both Markets vital and it makes sense to support the Market that is already here
and get the others on board. Linda indicated she would keep the Board informed of any
future developments.
At 9:10 a.m. Glenn Kirk, Mike Barber and Commissioner Janssen exited the meeting.
5. Common Ground Update: Linda noted that there is no additional news since last month
and Gavin DeGraw is the only band that has been officially contracted. Another talent
announcement should occur around March 21. Commissioner Butler recommended that
Common Ground be added to the Events Sheet. Linda noted that $85,000 has been
collected in advance sponsorship revenue for the festival and that this amount is ahead of
last year in terms of collections due to early invoicing and payment. Linda will bring
additional sponsorship information to the March meeting. Commissioner Sinadinos
questioned who would be responsible for the VIP tent; Linda responded that the first Team
Leaders meeting is scheduled for March 3 and the new/vacant slots will be filled then.
At 9:15 a.m. Mike Barber and Commissioner Janssen returned to the meeting.
6. Food and Beverage Update: Bill Grove reported that we have been very busy and are in
the middle of the show season and many of the public shows have been very good for us as
indicated in the financials.
7. Administration: Marian Bryant reported the ATM machine is in and operating and this
past weekend went through over$5,000 in cash and we expect this weekend it will be very
busy with the Golf Show.
8. Mike Barber: Mike stated in regard to the budget, which will be presented on March 28,
and with the history the Board has had under the leadership of staff, LEPFA runs a frugal
operation. He noted we do utilize City Personnel services when we can, for example the
City Legal Department and Margo and Marty Riel with Operations; but at this juncture
when we are in transition and have a new CEO coming on board with the budget
presentation in March, he doesn't feel that now is the time to ask LEFPA for a $100,000
decrease and one can only imagine how $100,000 would impact LEPFA's budget. He
recommended that the budget be supported as presented and that the Board should let Eric
Hart, Glenn Kirk, Marian Bryant and the Finance Committee work methodically during
the next year to do the analysis, as we continue to educate the new players as how to this
business functions. We also need to look at the return recaps as well, such as the parking,
which is a simple request.
LEPFA Board of Commissioners Meeting
Page 9
February 22, 2005
Mike noted he sensed that LEPFA is being viewed as a City Department and that Glenn's
own graphs last month showed that the 85% of the City's budget is salaries and wages and
our organization is substantially less than that as a percentage; which show how we are
effectively staffed and how we operate and for economies of scale LEPFA has taken over
not only the convention center, but Oldsmobile Park, the City Market and Common
Ground, which in many markets festivals have their own executive director and staff. He
noted he has sat in meetings and witnessed the City's enthusiasm to have the stadium
facelift completed by April 1.His concern is that as each day passes, it reflects on us
because it appears that we didn't get the job done; and while it takes time to mobilize, get
the crews in place and get the tasks accomplished, and we were hopeful to have 8-10
weeks and we are down to 5 week and we still don't have a commitment to an account
number. Commissioner Butler suggested a meeting with the Mayor if necessary, because
time is moving on and Mike agreed with his suggestion.
D. PERSONNEL COMMITTEE: Committee Chairman McGuire noted that a number of issues
have been called to his attention and a meeting is scheduled for tomorrow at 10:00 a.m.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Janssen noted that
nothing has been done due to Eric's transition and they will wait until he is acclimated before
they meet.
F. TRANSITION COMMITTEE: Chairman Tim Haggart noted that we will be passing the
baton on to Eric on Friday. He thanked Mike for his support and wisdom over the past several
months.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Commissioner Charlotte Sinadinos: Commissioner Sinadinos noted that several of the Mid
West Reps vendors, after a three year absence, mentioned that they were happy to be back in
Lansing. She also thanked Mike Barber and noted that she felt he had done a phenomenal job
as the Interim CEO and she thanked him for his advice and knowledge and thanked him for
helping to make the transition go very smoothly.
B. Linda Frederickson: Linda reminded the Board that the LRCC dinner is this Wednesday night
and LEPFA has a table if any Board members are interested in attending.
C. Commissioner Denise Wootton: Commissioner Wootton also extended her thanks to Mike and
noted that it was good meeting him and she wished him well.
D. Commissioner Ellen Jeffries: Commissioner Jeffries thanked Mike as well and noted that he
has been a pleasure to deal with, and was so helpful to LEPFA Board and staff. She also
suggested that the Board meet privately with Glenn.
E. Commissioner James Butler: Commissioner Butler noted that he won't be at the March
meeting due to knee surgery. He thanked Mike Barber for his updates on ANTA and he asked
that we ask Eric to make this matter a priority. Commissioner Butler recommended that a
meeting take place with Sandy Allen (which she has expressed that she is willing to do)
regarding the City Market.
LEPFA Board of Commissioners Meeting
Page 10
February 22, 2005
He also suggested a meeting with Glenn Kirk, so that we can answer his questions rather
than discussing items that require lengthy conversations at monthly Board meetings. He
also questioned the meeting with Denise Peaks, and Mike noted we are meeting with her
tomorrow at 2:30 p.m. He also commented to Mike that he has done a stellar and great
job and he thanked him for all that he has done.
F. Commissioner Cyril McGuire: Commissioner McGuire extended his good byes to Mike.
G. Commissioner Charles Janssen: Commissioner Janssen indicated that he would like to second
everything that has been said on Mike's behalf and noted that from the moment he called him
and he agreed to come back here, he has been wonderful and his expertise has been helpful.
He also noted to all the staff that the Commissioners are 100% behind the staff on the budget
issues and they shouldn't be concerned about the financial undertakings of the organization and
as in the past, the Board will be there for the organization. He concurred with Commissioner
Butler that a meeting should take place with Glenn and he asked that Mike compile a talking
points/summary of major issues so that we have history to present the Mayor as well as the
bigger picture that we may share with Glenn and Eric.
H. Mike Barber: Mike noted that he appreciated Commissioner Janssen's call and that he likes
Lansing, the Center and really enjoys working with the staff.
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, MARCH 22, 2005 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 22, 2005 =
MINUTES p
�0 1 !I c.-
At 8:03 a.m. Chairman Tim Haggart called the meeting to order in Room 203 of the Lansing Center; 333 �!-
E. Michigan Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: Tim Haggart, Charles Janssen, Ellen Jeffries, Glenn Kirk(Ex-officio),
Cyril McGuire, Kris Nickoloff, Sharon Peters, Jim Ruff (Ex-Officio), Charlotte Sinadinos and Denise
Wootton.
COMMISSIONERS EXCUSED: James W. Butler III.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Eric Hart, and Dr. Dirk
Spillemakers - 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 was no public comment.
V. APPROVAL OF THE MINUTES OF FEBRUARY 22, 2005: The minutes of February 22,
2005 were adopted as presented. MOTION: Commissioner Peters SECOND: Commissioner
Janssen; the motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: No report.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending February 28, 2005: Committee
Chairman Charlotte Sinadinos reviewed the financial statements as follows:
a. Lansing City Market:
Income Statement: Building Rental for the current period is$3,066, which is less than the
prior year's amount of $3,118; year to date Building Rental is $37,016 compared to
$31,230 for the prior year, which is up by about $5,700. Parking for year to date is
$10,595 compared to $11,790 for the prior year. Total Operating Revenues for year to
date are$47,955 which exceeds the prior year's amount of$43,360. Operating Expenses-
Salaries/Wages for year to date are $30,150 compared to $30,361 for the prior year.
Utilities for year to date are $32,904 which exceeds the prior year's amount of$30,356.
Insurance/Bonding is down for year to date at$1,755 compared to the prior year's amount
of $2,816. Total Operating Expenses for the current period are $11,351 compared to
$11,354 and for year to date they are $96,032 which is less than the previous year's
amount of$99,221. We have an Operating Loss for year to date of($48,077), which is
less than the prior year's loss of($55,860). After taking into account the City Contribution
and Interest, we have income for year to date of$2,299 compared to the prior year's loss
for year to-date of($5,292).
LEPFA Board of Commissioners Meeting
Page 2
March 22, 2005
Balance Sheet: Our total cash for the current year is $47,592 versus $9,111 for the prior
year. Unreserved Equity for the current year is$168,586 which exceeds the prior year's
amount of$167,251.
Budget vs. Actual: Building Rental for year to date is better than budget by $4,784.
Parking is less than budget by ($2,387). Total Operating Revenues for year to date are
better than budget by$2,261. Operating Expenses- Salaries/Wages for the current period
are better than budget by $595 and for year to date they are also better than budget by
$3,741. Utilities are higher than budget by ($1,779) for the current period and for year to
date they are also higher than budget by ($6,896). Insurance/Bonding for year to date is
better than budget by $1,212. Total Operating Expenses for year to date are better than
budget by$9,249. After taking into account the City Contribution, Interest and Transition
Expenses we are better than budget by $10,029.
b. Oldsmobile Park:
Income Statement: Evemt Revenues (interest) are $16.16 (there were no events in
February). Event Expenses are $13.34 (bank charges) for a net income of$3.26 which
was applied to the Event Development Fund. Operating Expenses-Salaries/Wages for year
to date are $49,041 compared to the prior year's amount of$34,359, which is due to the
allocation increase implemented this year. Utilities for the current period are up at$7,334
compared to $5,992 for the prior year and for year to date Utilities are $52,272, which
exceeds the prior year's amount of$44,700. Insurance/Bonding is down for year to date at
$26,733 compared to$42,819 for the prior year(a difference of$16,000). Miscellaneous
for the current period is $8,250 for the suite. We have a year to-date loss of($191,322)
compared to the prior year's loss of($186,438). After adding in the City Contribution,
Allocation, Interest, and Transition Expenses we have a loss year to date of ($26,864)
compared to the prior year's loss of($25,754).
Balance Sheet: Total Cash for the current year is $22,422 which is less than the prior
year's amount of $71,960 and is down significantly because we haven't received the
allocation and the loan to the Lansing Center. Accounts Receivable are $159,407
compared to the prior year's amount of $77,243. The Net Event Development Fund is
$54,509 compared to $54,249 for year to date for the prior year. Accounts Payable are
$186,166 compared to$33,907, which is attributed to City funds. Unreserved Equity for
the current year is $42,783 which is less than the prior year's amount of$74,562.
Budget versus Actual: Operating Expenses - Salaries/Wages are better than budget by
$3,758. Utilities are higher than budget by ($12,648). Insurance/Bonding is better than
budget by$17,930. Total Operating Expenses for the current period are higher than budget
by ($9,913); however we are better than budget by$15,807 for year to date. After taking
into account the City Contribution, the Allocation, Under Funding, Transition Expenses,
and Interest we are better than budget by $19,046 for year to date.
At 8:15 a.m. Councilmember Harold Leeman entered the meeting.
LEPFA Board of Commissioners Meeting
Page 3
March 22, 2005
c. Lansing Center:
At 8:16 a.m. Commissioner Kris Nicholoff entered the meeting.
Income Statement: Building Rental for the current period is$121,005 which exceeds the
prior year's amount of$119,666 and for year to date the amount is$558,367 which is less
than the prior year's amount of$591,986. Food and Beverage for the current period is
$258,804 which is less than the prior year's current period amount of$261,554 and the
year to date figure is up at$1,768,617, exceeding the prior year's amount of$1,588,000
by $180,000. Total Operating Revenues for the current period are$456,319 compared to
$469,588 for the prior year; and the year to date Total Operating Revenues are$2,968,000
which exceeds the prior year's amount of $2,908,000. Under Operating Expenses-
Salaries/Wages for year to date are$1,055,000 compared to$1,082,000 which reflects the
increased allocation to Oldsmobile Park. Utilities for year to date are $398,357 which
exceeds the prior year's amount of $366,746 by about $41,000. Insurance/Bonding is
down at$73,465 compared to$98,076 for the prior year. Food and Beverage Expense is
$1,069,000 compared to the prior year's amount of$1,041,000.
Total Operating Expenses for the current period are$444,634 compared to the prior year's
amount of $484,957 and for year to date the expenses are $3,518,000 compared to
$3,552,000 for the prior year. Netting expenses against revenues, we have a loss of
($549,975) compared to the prior year's loss of($644,276). After taking into account the
City Contribution, Transition Expenses and Common Ground we have a loss of($98,192)
for year to date compared to the prior year's loss of($233,308).
Balance Sheet: After totaling together Cash and Cash Equivalents for the current year we
have $413,773 compared to the prior year's total of$389,825. Accounts Receivable for
year to date for the current year are $333,805 compared to $433,479 for last year.
Unearned Revenue- Advanced Rent(an indicator of future business)for the current year
is $389,491 compared to $342,142 for the prior year. Chairman Sinadinos noted under
"Long Term Debt" the Act 99 Liability amount of$511,197 compared to $155,030; the
current figure includes the operable wall. Unreserved Equity is$136,376 for the current
year compared to $193,012 for the prior year.
Budget versus Actual: Building Rental for the current period is less than budget by
($2,507) and for year to date is less than budget by ($16,150). Food and Beverage
Revenues for the current period is less than budget by ($74,256) and for year to date the
figure is less than budget by ($17,922). Total Operating Revenues for the current period
are less than budget by ($102,031) and for year to date they are better than budget by
$38,603. Operating Expenses- Salaries/Wages, which reflects vacancies in the CEO
position and the Vice President of Operations, are better than budget by $69,327 for year
to date. Fringes and Related Costs are better than budget by$29,502. Utilities are higher
than budget by ($1,085) for year to date. Insurance/Bonding is better than budget by
$21,598 for year to date. Total Operating Expenses for the current period are better than
budget by $37,694 and for year to date they are better than budget by $53,918. After
netting Expenses against Revenues we are better than budget for year to date by$92,601.
After taking into account the City Contribution, Interest, Transition Expenses and the City
under Funding we are higher than budget by $10,751 for year to date.
LEPFA Board of Commissioners Meeting
Page 4
March 22, 2005
Vice Chairman Peters commented that the financials show a good deal of restraint in terms
of where we were last year; however she expressed concerns regarding the overall budget.
Commissioner Peters moved that the February financials be approved.
SUPPORT: Commissioner Janssen, the motion carried and the financials were approved as
submitted.
Discussion ensued regarding the budget. Vice Chairman Peters expressed that we have
had an extraordinary year, we have operated with a great deal of restraint and our efforts
to maintain a facility that can attract business and help the City, and our economy may face
some threat given the budget presented, and the Board needs to be aware and she asked for
further discussion. Eric Hart noted that this year will be significantly challenging in terms
of a $200,000 budget cut, which will place us in a cash short position and that Common
Ground, Fright Night, etc. potentially could be in jeopardy. He noted that Glenn has
indicated that the City will support Common Ground expenses for another year, but our
issue is the cash flow. Marian explained the impact of the cash position between the
facilities for fronting cash for Common Ground (in particular the Lansing Center and the
City Market) and how a cut of$200,000 will affect the cash flow further.
Commissioner Janssen asked(on behalf of those who are shocked to learn of the$200,000
cuts based on all that the Authority had done over the past ten years) Mr. Kirk to explain
the process and the time frame; and noted that if the budget is going to be cut we need to
begin discussions with the Mayor and City Council on what items will be cut within other
City departments.
Mr. Kirk explained the process, noting that the Department Heads were asked for their
thoughts and requests; and then they reviewed revenues(estimated at$103,000,000); and
then they proceeded with the Department Heads and were still $7 million short. They all
convened and determined priorities and they went through an exercise and review the
services and their critical nature, and considered those items that will impact the City and
the citizens and they developed list based on what the Cabinet felt will be the citizen's
priorities. He noted they will ask Council to go through the same prioritization exercise as
well. He noted the priorities and the process can be argued, but what can't be argued is
that they don't have the money and they had to start making some very hard choices. He
reviewed the five steps/strategies developed as follows: Leading from the Top;
Eliminating Redundancies; Improving Systems &Processes (technology); Cut Programs
and Modify Services; and Look to Labor for Help. He noted on Monday, March 28 the
Mayor will present the budget to the Council and by the third Monday in May the Council
has to pass a balanced budget and in between there will be hearings.
Vice Chairman Peters noted that there has been a tradition that before the budget is
presented to Council by the Mayor, there has been a chance for discussion with the Mayor
and Finance Director. She noted that she understood that this year it is not a part of the
process and asked what the thinking is in terms of input from us in the process.
LEPFA Board of Commissioners Meeting
Page 5
March 22, 2005
Mr. Kirk noted that he is meeting with Marian and Eric this afternoon to discuss the
budget. Commissioner Peters asked if there would be an opportunity for input between the
Board and the Mayor. Mr. Kirk noted that there is a possibility. Mr. Kirk noted that
rather than all of the Departments meeting individually, they spent 4-5 days together with
the Department Heads and the Mayor. Commissioner Peters noted we weren't included in
the meetings. Mr. Kirk noted that he has discussed at least a$100,000 reduction and as it
turns out it will be $200,000 and the upside is that he and Eric are looking at the
possibility of financing of upgrades for the Lansing Center. He discussed the time line of
the expansion and noted that in the interim he is receiving letters and calls from people
regarding the current state of the facility and the need to upgrade the facility.
He noted that he feels,based on our financial reports month after month, that our revenues
in the budget are "soft" and that they are not impressive enough and do not reflect where
LEFPA has been and are at least$100,000 off. He noted that it makes good reports for
the Board(the budget figures), but doesn't make for good Management of pushing to make
sure that we have a more aggressive reach and putting the pressure on for that number
from a budget standpoint and he noted further that he felt there was room for at least
$100,000. He reviewed the$88,000 Maintenance/Repair figure for the Lansing Center for
next year; however, with the refinancing the amount would be covered and would mean
that the net impact would be more like $12,000. Eric noted that there is one flaw with
that theory, and that is the lost business which we can't predict and that the $100,000 is
also based on pickup business and we need to be cautious on the $100,000 assumption.
Commissioner Jeffries noted that the citizens are proud of the Lansing Center, the City
Market, Oldsmobile Park, and Common Ground all of which have made a huge economic
impact on the region and noted that ten years ago, we were asking for the same subsidy
that we are now; and that LEPFA receives no other revenue (e.g. bed tax, parking, etc.)
which is a-typical for a convention center in a city of this size and is why we struggle. She
noted it is a "risk-taking business" and that the $100,000 amount makes her extremely
nervous and she noted further that LEPFA is not like other City departments. Glenn noted
that although LEPFA is not like another City Department, the City still only has $103
million to work with, and he noted in the sharing of the pain, LEPFA is like all the other
departments. He commented that this is not a story he relishes telling, but that they have
taken steps to mitigate the impact by recognizing that they have to help with getting money
for upgrades to make the thing more marketable; and he commented further that if you
don't do that, don't vote to expand it, because we will lose what we have and will have to
start over. He noted we need to get the facility to where it is more marketable and he
noted there is a feel when you walk into the facility and that there is a different sense/feel
that it is a much older, much less attractive facility.
Commissioner Janssen expressed his surprise at Mr. Kirk's painting the facility in poor
shape which comes to as a surprise to the Board; and he noted if there are complaints that
the building is inferior, he would like to see them because he wasn't aware of them. He
noted there is however a dramatic change in the competition(Grand Rapids, Novi, etc.).
He requested an opportunity for the Board to sit down with Glenn and the Mayor to walk
them through the items that we can control. He noted that we have tried to maintain
control of the budget and have done well for a number of years.
LEPFA Board of Commissioners Meeting
Page 6
March 22, 2005
Commissioner Janssen also indicated that he would like to know how the$100,000 figure
was determined, because based on the consultant's recommendation we have reached
capacity, so if there is room to increase revenue, he'd like to know where that is because
the consultants indicated we are at the top. Mr. Kirk noted that the analysis is based on
looking at what we have been doing and asking why LEPFA wouldn't budget at the level
that we have been operating.
Mr. Ruff noted the "Capital Improvement Plan" developed by Peter helped the City
develop a road map for taking on the upgrade to the facility to keep it on top and helps the
City budgetarily. Eric noted while the Act 99 debt is a help, it is not the answer and the
estimated total cost to fix the problems is$4 million, and we have been very specific. He
noted there are Act 99 funds that we are using for engineering/structural repairs. The
cosmetic items need to be upgraded in addition to internal items such as the lights and
HVAC. Eric further noted there have been no requests for additional funds which was for
the benefit of the City. He noted further that LEPFA's benefits and labor have been
maintained at half the rate of the City's and that the Board and past administration did a
great job. However the wall fabric and carpet doesn't solve the long term issue of having
a ten year old building and we are getting into life cycles and we want to try to get out
from under Act 99 debt. Mr. Kirk noted that they are attempting to structure a debt
service approach that would state what we really need to make it (the Lansing Center)
competitive and putting bright lights on it and bring it out. He indicated that in the budget
message they are also considering re-financing and getting money to do the much needed
repair and upgrades to the Lansing Center as well as Oldsmobile Park. He recommended
that the cosmetic items need to be priority because that is what people see.
At 9:00 a.m. Jim Ruff exited the meeting.
Councilmember Leeman noted that he didn't want to undermined Glenn, however the
marketing folks know what the issues are and if clients are not coming here because of the
looks,he would like to see that information. Mr. Leeman noted that we are dealing with a
lot of different issues. Mr. Kirk clarified that he has received two verbal comments and a
letter that Eric also received. Eric explained that the letter was from Triton Industries and
they commented on the annual decrease on the maintenance of the facility and the look.
Eric noted that there are other competitive issues that are coming into play in relationship
to regulations, tax sources, etc. that we are uniquely facing in this county that our
competitors are not. Glenn discussed the "items we walk by everyday" at the Lansing
Center and the message that is delivered (e.g. the pedway condition, the condition of the
chairs, the condition of the walls, etc.). He noted that he is looking at the infusion of
dollars that will help to make the $200,000 subsidy cut more palatable. Vice Chairman
Peters expressed her appreciation of the time Mr. Kirk has been spending with the Finance
Committee and at the Board meetings. She noted that she looked forward to the discussion
that he will have with Marian and Eric in terms of more detail. She noted that going from
$100,000 to $200,000 is a big step and a sense of the detail would be helpful for the
Board. She noted she will look forward to the response from staff once they have talked to
Glenn and Commissioner Janssen extended his appreciation to Mr. Kirk as well.
Eric Hart asked if the financing doesn't go through, will the$200,000 cut still happen and
Mr. Kirk indicated that it would and that we would have the opportunity to talk to Council
to impact that figure; but it will be weighed against everything else.
LEPFA Board of Commissioners Meeting
Page 7
March 22, 2005
Eric also asked if the City is in a position to provide short-term loans to cover the full
extent of the advances for Common Ground. Mr. Kirk noted that in the past the City has
given a cash advance to LEFPA and he will help insure that will happen. Eric noted his
concern is for next year if$200,000 is the final sum and he also noted that outstanding
money owed us by the City also needs to be discussed.
C. PRESIDENT & CEO'S REPORT:
1. Vice President of Operations Position: Eric reported that we have received a
significant number of responses to the VP of Operations position, which was
advertised last week and he noted that it is imperative that we fill the position and
there will be on-going discussions with the Personnel Committee.
2. Event Services Manager Position: This position is also vacant due to the resignation
of Katy Stanke. Eric noted we will post this position this weekend.
3. Lansing City Market: Eric reported that Kabier is not vacating his space and his
equipment remains on site; Margo Vroman is involved in the process. Linda reported
that now we will begin taking the legal steps and he has been given proper notice;
however, his second attorney is not returning phone calls which will lengthen the
process. Eric commented that we will experience additional expenses associated with
the removal/storage of his equipment as well as clean up.
4. Lansing City Market: Linda Frederickson reported that Rent Revenue is down
slightly but is up for year to date. Beautification of the Market is underway which
includes painting, and the Market has also returned to standard hours (8:00 a.m. -
6:00 p.m.) effective April 1. Linda noted there is also a new produce vendor, the
Jalenski Family from Owosso; a new herb and herbal product vendor, Kathleen
Parker; and three new potential vendors include a coffee vendor, a produce vendor
and a bedding plants and hanging baskets vendor. Special Events involving the
Market include: Adopt a River, Neighborhoods in Bloom, and Be a Tourist in Your
own Town. Mark has been invited by MSU to a "Farmer's Market Roundtable" (five
are scheduled around Michigan) and the topic will be vendor survey results from a
study Michigan State University conducted with Farmer's Markets throughout the
state. Also, a study session will be held with members of Council and our Board to
discuss issues pertaining to the Market.
5. Lansing Center: Last month we hosted 51 events which equated to 78 event days,
with 31,000 attendees, and 1,500 room nights.
• Contracts/Bookings: Contracts have been issued for Hearts at Home for this fall;
the Lansing State Journal for their 150`h Anniversary celebration; Neighborhood
Council - Bea Christy awards; and the Michigan Public Health Institute - Cancer
Consortium.
• Potential New Business: A proposal has been submitted to the Michigan
Trucking Association for 2006 through 2008; we are holding space in 2008 for
Michigan Lumber Building Materials; we are holding space for Triton Industries
for 2006 - 2010; we are holding space for the Foundation Games for 5 events.
LEPFA Board of Commissioners Meeting
Page 8
March 22, 2005
We are holding space for the Governor's Interfaith Symposium for March 2006;
and we have submitted a proposal to Flagstar Bank for the annual reception for
February 2006.
• Event Highlights: During the month of March we hosted Michigan Floral for
the last year on March 4-7 (they are going to Grand Rapids); Les Meres-
Debutantes were in house on March 5; Michigan Broadcasters were on site on
March 7-9 and we presented them with five years of contracts; the Sportfishing
Travel Show was here for the tenth year in all three halls; Mary Kay returned on
March 17-19; and the Mayor's Youth Race and Diversity Conference was held on
March 21.
• Upcoming Events: Upcoming events include the Michigan Municipal League;
the Home Show is April 1-3 as well as the Foundation Games; the Chavez
Dinner is on April 13; Lansing Squares is scheduled for April 15; Fake the
Funk After Party is April 17; and the Michigan Safety Conference is-scheduled
for April 17-20.
6. Common Ground Update: Linda noted that John Legend will be announced for
Thursday, July 14, which is a neutral show because he is being played on three
stations. Commissioner Peters commented on Buddy Guy, and noted that we need
to make a big deal about him due to this being his induction year for the Rock
and Roll Hall of Fame.
7. Oldsmobile Park: Eric reported that we are in negotiations with the Lugnuts and
are in a holding pattern right now because we are waiting for the re-finance plan.
We hope to be back on track once we have a picture of finances and we should
have a response for them by April 20.
D. PERSONNEL COMMITTEE: No report.
E. LONG RANGE PLANNING COMMITTEE: No report.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Linda Frederickson: Linda reported that Shelby Bailer is back to 100% after radiation and
surgery. Jeff Pluff, the Creative Services Coordinator, has been told that he will remain at
Sparrow until at least May 1 and is on a long road to recovery and in the interim Lisa Wootton
Booth has been assisting the Department. Jeff is not likely to return to work until September,
but he is in good spirits.
B. Commissioner Cyril McGuire: Commissioner McGuire questioned James' surgery status and
it was noted that a get well gift was sent on behalf of the Board and staff.
C. Commissioner Ellen Jeffries: Commissioner Jeffries thanked Heidi for informing the Board
about James; and she thanked Eric for the weekly update and asked that he endeavor to
continue the updates. Eric noted his goal is to continue the weekly updates on Monday's as
time permits.
LEPFA Board of Commissioners Meeting
Page 9
March 22, 2005
D. Councilmember Harold Leeman: Councilmember Leeman asked for an update on the re-
naming of Oldsmobile Park. Mr. Kirk reported that the last he heard there will be no re-
naming of the ballpark. He also a portion of the Oldsmobile Park sign is out and LEPFA staff
will address the matter. Councilmember Leeman encouraged those present to watch the
Mayor's presentation to Council next Monday at 7:00 p.m. and he commented that this is a
proposed budget and that they will take everything into account and do what is best and that
everything is not set in stone. He noted that the subsidy issues have been around for a long
time and he noted that the LEPFA staff and Board have always made a case in meeting with
Councilmembers and that he is sure that the opportunity will be there, and they will listen and
take everything into consideration.
E. Commissioner Charles Janssen: Commissioner Janssen thanked Glenn for coming to the
meeting. He also officially welcomed Eric to his first Board meeting. He also commented on
his visit to see James at Sparrow Hospital.
F. Commissioner Kris Nicholoff: Commissioner Nicholoff introduced himself; he welcomed
Eric; and thanked him for accepting the position. He noted the Lugnuts' Opening Day on April
1 and the Chavez Dinner is on April 13. He also noted that Michigan Dental is still scheduled
to host their sesquicentennial(150`h)anniversary celebration at the Lansing Center in 2006 and
that they are excited about the event and that this is a new plan for them because in the past
they have rotated every two years between Detroit and Grand Rapids and three years ago they
were here for the first time and liked it so well that they are returning. He noted they have one
of the largest annual associations in the state that uses local hotels, and shuttle services. In
regard to Youth Baseball- he noted that they are contributing again this year and extended his
thanks for the opportunity to be a sponsor once again. Commissioner Nicholoff reported that
he will be in Washington for the next Board meeting and he noted that his job has changed and
he has taken over the National Governmental Affairs Division for the American Dental
Association and is in Washington often, which often means he is out of town on Tuesday's but
he will do his best to attend meetings and he thanked everyone for the opportunity to serve.
G. Commissioner Sharon Peters: Vice Chairman Peters noted that she serves on the Mayor's
Diversity Initiative Committee and she was able to see the exuberance of the youth from the
region that were at the Lansing Center, which is one of the important contributions that the
Lansing Center makes to the community. Commissioner Peters noted that she missed last
month's meeting, but would like to be on record as having thanked Mike Barber(she thanked
him privately), noting that he served us very well in the transition. She also welcomed Eric
Hart.
H. Eric Hart: Eric thanked everyone; and noted that he is trying to meet with all of the Board
members individually, as well as Council and that he is willing to meet with any of the Board
members at any time,just let him know.
VIII.OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
LEPFA Board of Commissioners Meeting
Page 10
March 22, 2005
At 9:47 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY,APRIL 26,2005 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 26, 2005
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, Ellen Jeffries, Cyril McGuire, Sharon Peters, Jim Ruff
(Ex-Officio), Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: James W. Butler III, Charles Janssen, Glenn Kirk(Ex-officio), Cyril
McGuire and Kris Nicholoff.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric Hart, and Scott
Keith - Lansing Entertainment and Public Facilities Authority.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda.
IV. PUBLIC COMMENT: There was no public comment.
V. APPROVAL OF THE MINUTES OF MARCH 22, 2005: The minutes of March 22, 2005 were
adopted as presented. MOTION: Commissioner Sharon Peters SECOND: Commissioner
Charlotte Sinadinos; the motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: No report.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending March 31, 2005: Committee
Chairman Charlotte Sinadinos reviewed the financial statements as follows:
a. Lansing City Market:
Income Statement: Building Rental for the current period is $3,581, which exceeds the
prior year's amount of $3,207; year to date Building Rental is $40,597 compared to
$34,437 for the prior year, which is up by about$6,100. Parking for the current period is
$5,283 and for year to date Total Operating Revenues are$56,854 which exceeds the prior
year's amount of $46,602 and the difference is comprised of parking. Operating
Expenses— Salaries/Wages for year to date are$35,000 compared to$36,294 for the prior
year. Utilities for year to date are up at$37,513, which exceeds the prior year's amount
of$33,885. Total Operating Expenses for the current period are $12,311 which is less
than the prior year's expenses of$15,204 and for year to date they are $108,271 which is
less than the previous year's amount of $114,425. After taking into account the City
Contribution, Interest, and Transition Expenses we have revenues of$2,900 compared to a
loss of($13,507) for year to date.
LEPFA Board of Commissioi�crs Meeting
Page 2
April 26, 2005
At 8:12 a.m. Commissioner Sharon Peters entered the meeting.
Balance Sheet: Our total cash for the current year is $79,593 versus $5,871 for the prior
year which is due to the collection of Receivables. Accounts Payable are $14,712
compared to the prior year's$34,212. Unreserved Equity for the current year is$169,186
which exceeds the prior year's amount of$159,035.
Budget vs. Actual: Building Rental for the current period is better than budget by $269.
For year to date Building Rental is better than budget by $5,053. Total Operating
Revenues for the current period are better than budget by$5,527 and for year to date they
are better than budget by $7,788 and again this is due to the timing of the Parking
received. Operating Expenses— Salaries/Wages are better than budget by$4,264 for year
to date. Utilities are higher than budget by ($8,254) for year to date. Insurance/Bonding
for year to date is better than budget by $1,323. Total Operating Expenses for the current
period are better than budget by$1,541.90 and for year to date they are better than budget
by $10,863. After taking into account the City Contribution, Interest and a portion of the
Transition Expenses we are better than budget by $16,978.05.
b. Oldsmobile Park:
Income Statement: There are no Event Revenues, and Event Expenses are $18.01 which
was applied to the Event Development Fund. Operating Expenses-Salaries/Wages for year
to date are $55,851 compared to the prior year's amount of$39,556, which is due to the
allocation increase implemented this year. Utilities for year to date are $57,336, which
exceeds the prior year's amount of $48,407. Maintenance of Facilities for the current
period are $150,627, which was also offset under "Operating Transfer" in the amount of
$154,704 a portion of this has been received and $94,000 remains outstanding from the
City. Insurance/Bonding for year to date is$30,688, which down from the previous year's
amount of $47,780. Total Operating Expenses for the current period are $171,020
compared to$20,841 for last year and for year to-date the figure is$362,343 compared to
$207,280 for the prior year. After taking into account the City Contribution, Operating
Transfer, Allocation, and Transition Expenses for year to-date we have a loss of($44,474)
compared to the prior year's loss of($26,538).
Balance Sheet: Total Cash for the current year is $52,772 which is less than the prior
year's amount of $64,520. The Net Event Development Fund is $54,491 compared to
$54,257 for year to date for the prior year. Accounts Payable and Accounts Receivable
both reflect the Oldsmobile Park Project. Unreserved Equity for the current year is
$25,155, compared to the prior year's amount of$73,787.
Budget versus Actual: Operating Expenses-Salaries/Wages for year to date are better than
budget by$4,469. Utilities are higher than budget by($12,606). Maintenance of Facilities
are higher than budget due to the Oldsmobile Park Project at ($153,755).
Insurance/Bonding is better than budget by $19,558. Total Operating Expenses year to
date are higher than budget by ($131,085). The Operating Transfer of$154,704 has been
billed to the City. After taking into account the City Contribution, the Operating Transfer,
and the Transition Expenses, we are higher than budget by ($39,435).
LEPFA Board of Commissioners Meeting
Page 3
April 26, 2005
Marian explained the City Contribution allocation adjustment that has been made; noting
that typically we have received $42,000 for the allocation and in the current budget we
requested that the amount be increased to $70,000, which was approved through the
budget process last year; however, through a clerical error it was not a part of the actual
budget and we only received $28,000 of the allocation. Thus the subsidy has been
reduced to $197,500 (from $211,500) and added to the allocation, and we took money
from the Diamond Classic which gives us an allocation of$52,000 and we have $5,000
allocated to the Diamond Classic. She noted we were down about $1,500 compared to
what we received overall for last year; although we were supposed to get$28,000 more.
Vice Chairman Peters noted that this was discussed at the Finance Committee meeting and
when Marian noted the$42,000 clerical error she was asked to pursue it with the City and
we are still trying to resolve the issue.
Jim Ruff clarified that the amount was put in at$28,000, not$70,000 and LEPFA is still
missing $42,000. He noted that the building on Washington/Michigan building with 200
additional employees this fall should assist in bringing more parking revenue.
Eric Hart noted that last night there was transfer/agreement to put $200,000 into
Oldsmobile Park as was previously approved. After submitting bills we were told that
there was no funding; however, last night at Ways and Means a $200,000 transfer was
approved from the CIP account. Eric noted that only$110,000 was approved and we have
received a deposit of $59,000 and have expended $154,000 through March 31. The
remaining funds have been spent and the items ordered. An additional issue is the turf
And Eric noted that he does not know where the $12,000 initial payment is in the process
or the funding. Eric noted a meeting is scheduled with MSU this week and Glenn is
working to address the short-term funding and considering bonding for the revenue source.
The total cost is estimated at $124,000. A decision is needed by May 1 or the process
will be scraped because MSU will not proceed without payment.
c. Lansing Center:
Income Statement: Building Rental for the current period is $121,680 which is down
compared to the prior year's amount of $150,130 and for year to date the amount is
$680,047 which is less than the prior year's amount of$742,116.She noted that using the
benchmark of$500,000 as a "good month" we generated $552,941 for the month and the
prior year's March was an exceptional month. Food and Beverage for the current period
is$310,486, which is less than the prior year's current period amount of$359,273 and the
year to date figure is $2,079,000, which exceeds the prior year's amount of$1,947,000.
Equipment Rental for year to date is $392,481 compared to $487,905 for the prior year
which is down by approximately $95,000. Total Operating Revenues for the current
period are$552,941 which is less than the prior year's amount of$643,609 and for year to
date they are $3,522,000 which exceeds the prior year's amount of$3,551,000. Under
Operating Expenses- Salaries/Wages for year to date are $1,231,000 compared to
$1,264,000, which reflects the increased allocation to Oldsmobile Park. Utilities for year
to date are $453,656, which exceeds the prior year's amount of $419,021 by about
$34,000. Total Operating Expenses for year to date are $4,058,000 compared to
$4,118,000 for the prior year. After taking into account the City Contribution, Transition
Expenses and Interest we have a loss of($56,288) for year to date compared to the prior
year's loss of($128,162).
LEPFA Board of Commissioners Meeting
Page 4
April 26, 2005
Balance Sheet: After totaling together Cash and Cash Equivalents for the current year we
have $214,000 compared to the prior year's total of $406,000. Unearned Revenue -
Advanced Rent(an indicator of future business)for the current year is$410,416 compared
to $355,990. Unreserved Equity is $177,499 for the current year compared to $298,689
for the prior year.
Budget versus Actual: Building Rental for year to date is less than budget by ($11,966).
Food and Beverage Revenues for year to date is less than budget by($48,522). Equipment
Rental is better than budget by$48,705. Total Operating Revenues for the current period
are less than budget by ($7,782) and for year to date they are better than budget by
$31,265. Operating Expenses- Utilities were higher than budget by ($6,695) for year to
date. Insurance/Bonding is better than budget by $23,809. Total Operating Expenses for
the current period are better than budget by $10,109 and for year to-date they are better
than budget by $64,443. After netting Expenses against Revenues we are better than
budget for year to date by $95,709. After taking into account the City Contribution,
Transition Expenses and the City Under Funding we are under budget by ($18,265) for
year to date.
Jim Ruff questioned the Transition Expenses; it was explained that they are the expenses in
between CEO's and is allocated across the facilities. The total at this point is $114,500
and we still have expenses for Eric's move and temporary housing.
Finance Committee Chair Charlotte Sinadinos moved that the monthly financials for
Oldsmobile Park, the Lansing City Market and the Lansing Center for the period ending
March 31, 2005 be received as published and that the monthly expenses for each entity be
approved. SUPPORT: Commissioner Peters; motion carried.
2. Bad Debt Allowances: Committee Chairman Sinadinos noted that the following allowances
for bad debt were reviewed and approved and passed by the Finance Committee.
The first was set up last year and expensed last year and will be written off at this
point. The CamTre collection/settlement has been reached at $30,000 and we need to
expense the balance of the bill at $29,926. It was moved, supported and passed by the
F+in An!`P ('nrn1nitteP and is presented today for the Board's information_ Marian
explained the variance that will appear on the financials next month.
3. Act 99 Financing: Marian noted that previously the Board approved securing
$642,000 in Act 99 funding to cover the operable wall, carpet, HVAC improvements
and foundation work. Marian noted that the HVAC needs additional work/funding to
fix the project at an additional cost of$40,000. Eric noted that the present system has
a design flaw that should have been caught when it was initially installed and it has to
do with the compressors (we have gone through 12 compressors in 10 years) and a
suction issue which is causing the compressors to implode. He noted the redesign
includes a secondary loop in the system and isolating the refrigeration from the chilled
water (currently we have one system). Eric noted we received a $63,000 estimate to
include new piping and a new pump. He noted that there is a plan for a different chiller
system at a cost of$2.2 million with an annual savings of$300,000 and we are
working with the City's Finance Department to make it happen.
LEPFA Board of Commissioners Meeting
Page 5
April 26, 2005
Eric noted that we are running on 5 compressors on a 12 compressor system and are
running on two chillers out of three and one is at 40%. He noted we need to address
the issue and get the funding through Council soon and we will work with Council to
get the $60,000 that has been cut back into our budget. Commissioner Peters noted that
the renovations to bring us energy savings are smart and that the $2.2 million
investment to run more efficiently is a smart use of the public dollar and she is hopeful
that the City will see the savings as well. She noted this is another tough
situation; however, we are taking steps to be pro-active with long-term solutions.
A motion was made to approve the resolution regarding the installment, financing and
purchase of the HVAC equipment by Vice Chairman Peters; second by Commissioner
Jeffries; the motion was unanimously approved.
C. PRESIDENT & CEO'S REPORT: Eric Hart reported the following:
1. Vice President of Operations Position: Eric announced that Scott Keith has been
announced as the Vice President of Operations, effective yesterday.
2. Carpet: Scott Keith reported that we have received bids and he and Eric are
reviewing them and considering colors and patterns and a decision should be made by
the end of the week. It is hoped that the Governor's Room and the ballrooms will be
completed by Memorial Weekend.
3. Event Services Manager Position: Scott noted that next week the interviews will
begin with six candidates (4 are local and 2 are from out of state).
4. Union: Contract negotiations with AMTA have begun and we are trying to make
progress on wages and benefits. Negotiations have been opened with 1ATSE and they
are progressing better than the AMTA negotiations at this point. He also noted that
the three other agreements will be up for negotiations as well.
5. Operations Manager: Scott noted that the position was posted internally yesterday
and the job opening will be announced locally and regionally this week. Eric noted
we are working to get the department up to full strength and will look at structuring.
6. Proposed Budget Cuts: Eric noted that he sent a spread sheet to Board members
identifying what the cuts are and that the recent total is $318,000 not $188,000 as
reported at the last Board meeting. Eric indicated that $188,000 was cut from our
budget, as well as the$70,000 Oldsmobile Park allocation, $15,000 for the Diamond
Classic and the $60,000 debt service was also eliminated. They did over fund
Oldsmobile Park by$11,000 so the total proposed cut to LEPFA is about$318,000.
Eric noted that he is awaiting the final budget before reviewing it with Marian and
also noted that they did not have the opportunity to sit down with the budget office to
review the budget line by line. He noted we are holding off on making any decisions
and the bulk of the cut has been at the Lansing Center and the cuts are significant and
huge and if they approve it at this level, major cuts will be coming in staffing,
deferred maintenance, etc. and he wanted to make the Board aware of what the
$318,000 means to the Authority.
LEPFA Board of Commissioners Meeting
Page 6
April 26, 2005
7. Oldsmobile Park: Eric noted that we will be getting the$200,000 for the suites. The
City has indicated that they will pay the $125,000 for the turf.
8. Events Updates: Eric noted that the Nutcracker and Symphony will not return next
year and we are looking at another Christmas event and will bring it forward at a later
date.
9. Lansing City Market: Linda Frederickson reviewed the City Market report as
follows: March rent revenue is up and occupancy was up by about 10% over last
month. Linda reported that as the spring and summer seasons approach we have been
painting the vendors stalls (25) and the goal is to have everything completed by the
end of the month for Mother's Day. Linda explained the Market marketing scheduled
and noted that we buy the media on a calendar and not a fiscal year and the number
reflected in the financials will begin to change.
Linda noted that Margo Vroman has been advising us on the next steps as we move
forward with removing Kabier. Kabier refused to sign for a certified letter and we
have been given the go ahead to move his space. To-date Pepsi has picked up their
equipment; and Bill Grove has assisted with a walk through. The goal is to have the
space cleaned by Mother's Day weekend for show to potential lessees.
10. Lansing Center: For the month of March we hosted 53 events which equated to 78
event days, with 26,000 attendees, and 1,653 room nights for an estimated monthly
impact of$785,000.
• Event Highlights: Linda noted Oldsmobile Park and Common Ground have now
been included on the back of the form. During the month of March we hosted
Michigan Municipal League on March 22 and 23; Capital Area Michigan Works
was on site through March 29; the Home Show also took place and staff met with
Ben Escamilla the promoter to see how we can help his public show. The
Foundation Gaming Convention was in house, which is a new three-day gaming
event that had 900 attendees; they were pleased with the turnout and this event
looks to be a twice a year event for us. Autowares was in hniige with their expo'
the Michigan Antiquarian Book and Paper Show was in house; the Cesar Chavez
Dinner took place and the Lansing Squares returned as well. The Fake the Funk
After Party took place on Saturday and there were no issues. Michigan Safety
Conference was in house April 17-20. USA Skills VICA was also in the building
as well as the Michigan Education Association Spring Assembly this week.
At Oldsmobile Park we are gearing up for MSU baseball and we are working
with MSU and the City to advertise the games. May 21 is the Home Run for
Hope scholarship games and they will have three Lansing teams and this year the
team to be invited will be Haslett High School. The proceeds go to the Hope
Scholarship Fund.
LEPFA Board of Commissioners Meeting
Page 7
April 26, 2005
• Future Business: Contracts were issued for Great Lakes Aviation for February
of 2006 and 2007. A contract has been issued for the Cat Show in December.
Michigan Nurses Association is looking to come to Lansing in April 2006 and the
Michigan Teamsters have re-booked for April 2006. February 2006 Michigan
Petroleum Association and the Michigan Association of Convenience Stores will
be in house. In November 2005 the Michigan Department of Education has
booked their fall conference; the MSU Teachers Fair has re-booked for 2006 and
Michigan Association of Drug Court Professionals has re-booked for February
2006.
• Potential New Business: Michigan State Bar has asked us to hold space for a re-
booking for this fall; Michigan Public Accounting and Attendants Association
has requested a proposal for September 2006; the Michigan Plumbing and
Mechanical Contractors are considering 2007 dates; and we are holding space for
a three day International Ministries Regional Mission Conference in 2007. We
have submitted a proposal for the Michigan Food Service Association in April
2008; Ingham Regional Medical Center Volunteers Award Banquet is looking for
space in October 2005; the American Shetland Sheep Dog Association is a
potential for June 2009 and a proposal has been submitted for the Michigan
Association of Health PE Recreation and Dance for November 2008.
11. Common Ground Update: Linda noted that she had indicated on the Event
Highlights the bands that have been booked to-date and that there is still quite a bit
of the line up to be completed and as acts are confirmed we will update the Board.
12. Scott Keith: Scott noted that the electrical, lighting and hardware upgrades are
on-going at Oldsmobile Park. MSU baseball versus UM will be broadcasted on
Comcast which is a first for this event.
13. Bill Grove: Bill noted February and March is the height of our gated show season
and while the March budget was down by $48,000 for Food and Beverage, with
a strong April we should be up by $70-75,000, which will put us on the positive
side of the budget; and we still have May and June to look forward to.
D. PERSONNEL COMMITTEE: Chairman Haggart noted that Chairman McGuire is out of
town; however, the committee will meet within the next month.
E. LONG RANGE PLANNING COMMITTEE: The Committee will also meet within the next
year.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Vice Chairman Peters: Vice Chairman Peters noted that she appreciates that it has been a very
busy month and the speed at which Eric has things moving. She noted that she feels bad that
we are in a difficult financial time, but it appears that we are digging in and are figuring out
situations that have been going on for awhile and are dealing with them. She noted it is a
difficult time all the way around and in that regard she appreciates what we are doing; she
noted that she is hopeful and pleased with the way things are coming together here at LEPFA
and with Eric's ability to hit the ground running, and with her colleagues on the Board as well
because everyone has been working very hard.
LEPFA Board of Commissioners Meeting
Page 8
April 26, 2005
B. Commissioner Charlotte Sinadinos: Commissioner Sinadinos commented that having met with
several of the City Councilmembers, Eric has brought up a lot; and we should all think of
LEPFA in terms of being a regional authority and we need to discuss it with Council in terms
of funding and operations and we need to expand our focus to that of a regional authority and
should keep that in mind as we talk to council and the administration.
C. Linda Frederickson: Linda extended congratulations to Commissioner Janssen on being
selected by his peers as the "Best Lawyers in America" recognition. She noted that she
scheduled a brainstorming retreat with the Sales Manager (Tarena Smith) and LEPFA's
Sponsorship Manager (Shelby Bailer) to look at ideas, sources, generation etc. in regard to
revenue. She noted that the report will go to Eric with their recommendations and timelines
and she will keep the Board updated. She also noted that sponsorship revenue continues to be
strong for Common Ground this year and the goal is $340,000 for this year. Linda also
reported that Jeff Pluff is still at Sparrow and she provided an update; it is hoped that he will
be released in 2-3 weeks after a home assessment this week and he continues to make progress.
D. Commissioner Ellen Jeffries: Commissioner Jeffries noted that Eric is doing a good job on
selling LEFPA and presenting our case to City Council and others in terms of the budget.
Commissioner Jeffries noted that Shelia Wheeler attended the Finance Committee meeting last
night and she was asked to check into the "clerical error" and the stadium funding.
Commissioner Jeffries also noted that the City Market Committee will meet on May 4 at 5:30
p.m. and it will be an organizational meeting.
E. Jim Ruff: Mr. Ruff noted that he appreciated the Authority considering capital improvements
in terms of the ballrooms and the use of a CIP as he had previously suggested to Peter Sullivan
and the Board. He commented that maintenance of the infrastructure is important even though
it appears to be difficult financially, we are trying to make up ground and it's very difficult
when you have lost years for capital improvement. He encouraged everyone to "stay the
course" and noted that the key with the plans for the Oldsmobile Park and Lansing Center is
for the Authority/Management to integrate the plan for annual funding and expenditures in a
non-emergency manner. He indicated that while there will always be emergencies; right now
there may be items that had they been spread out, and it makes funding difficult during a
difficult budget time. He noted that the facilities are community resources and we need to
maintain them as the jewels that they are and it his job to continue to help build Lansing. Mr.
Ruff note that perspective is important and we need to keep building up the things that we have
and that we have a lot of good things here. He expressed his appreciation of the Authority's
looking at regionalism which is important in budgetary terms and that a regional approach is
better.
F. Marian Brant: Marian noted it is "Administrative Professionals Week" and reminded
everyone to express their appreciation of their administrative professionals.
G. Eric Hart: Eric discussed the Grand River Project which is slated for August 2005 and will
involve lowering the river and will be conducted on an experimental basis. Eric noted that we
will make clients aware of the potential odor and Scott Keith is serving on the Committee.
LEPFA Board of Commissioners Meeting
Page 9
April 26, 2005
Jim Ruff reported that the State of Michigan is considering being an anchor tenant at the Ottawa
Power Station and a mix of tenants are being considered as well. Federal grant monies are being
requested in terms of the river front developed.
Eric referenced the Ernest&Young article enclosed in the Board packets and its emphasis on how
a building like the power station can help build a downtown and draw people to the downtown
which will only serve to make us better.
VIII.OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:28 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, MAY 24, 2005 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 24, 2005 n
MINUTES - ' 2 {
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: James W. Butler 111, T im Haggart, Charles Janssen,Ellen Jeffries, Kris
Nicholoff, and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: Glenn Kirk(Ex-officio), Cyril McGuire, Sharon Peters, Jun Ruff(Ex-
Officio), and Denise Wootton.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric Hart, Scott
Keith and Dirk Spillemaekers - Lansing Entertainment and Public Facilities Authority; Harold Leeman,
Tom Korkoske and Margaret Vroman - City of Lansing
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda.
IV. PUBLIC COMMENT: There was no public comment.
V. APPROVAL OF THE MINUTES OF APRIL 26, 2005: The minutes of April 26, 2005 were
adopted as presented. MOTION: Commissioner Charlotte Sinadinos SECOND: Commissioner
Ellen Jeffries; the motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: No report.
1. Common Ground: Chairman Haggart reported that he will meet with Shelby Bailer and a
UAW representative to discuss the UAW's potential sponsorship of Common Ground on
Wednesday.
2. Nominating Committee: Chairman Haggart asked Commissioner Janssen to serve as the
Chairman of the Committee and also asked Commissioners Butler and Jeffries to serve on
the committee as well.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending April 30 2005: Committee
Chairman Charlotte Sinadinos reviewed the financial statements as follows:
a. Lansing City Market:
Income Statement: Building Rental for the current period is $3,786, which exceeds the
prior year's amount of$2,694 which is up by about$1,000; year to date Building Rental
is $44,383 compared to $37,131for last year. Total Operating Revenues for year to date
are $60,675 which is up by about $6,000 over the prior year's amount of $54,670.
Operating Expenses- Salaries/Wages are at$38,887 which is down from the prior year's
amount of$40,164. Utilities for year to date are $40,730, which exceeds the prior year's
amount of$36,693. Insurance/Bonding is down for year to date at$2,275 compared to
$3,469 last year.
LEPFA Board of Commissioners Meeting
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May 24, 2005
Total Operating Expenses for the current period are $9,672, which is less than the prior
year's current period amount of$10,775 and for year to date they are $117,943 which is
less than the previous year's amount of$125,200. Netting expenses against revenues, we
have a loss year to date of$57,267 compared to $70,530 for last year. After taking into
account the City Contribution, Interest, and Transition Expenses we have revenues of
$2,485 compared to a loss of($11,131) for the previous year.
Balance Sheet: Our total cash for the current year is $71,916 versus $9,576 for the prior
year, which is up by about$62,000. Accounts Receivable are down at$96,569 compared
to the prior year's amount of $161,492. Unreserved Equity for the current year is
$168,772 which exceeds the prior year's amount of$161,412.
Budget vs. Actual: Building Rental for the current period is better than budget by$438 and
for year to date it is better than budget by $5,491. Total Operating Revenues for year to
date are$60,675 compared to the budgeted amount of$59,157 which is better than budget
by$1,518 for year to date. Operating Expenses— Salaries/Wages are better than budget
by $4,523 for year to date. Utilities are higher than budget by ($8,220).
Insurance/Bonding is better than budget by $1,434. Total Operating Expenses for the
current period are better than budget by $2,914 and for year to date they are better than
budget by $13,778. After taking into account the City Contribution, Interest and the
Transition Expenses allotted to the City Market we are better than budget by $13,385.
b. Oldsmobile Park:
Income Statement: Event Revenues are$4,148 (from MSU Baseball) and Event Expenses
are $1,744 for a net of $3,855 which was applied to the Event Development Fund;
however Chairman Sinadinos noted a $2,500 ad campaign for MSU Baseball is still
outstanding and will be reflected in the May financials. Under Operating Expenses-
Salaries/Wages for year to date are $63,172 compared to the prior year's amount of
$45,233 which is due to the allocation, which we are not receiving and will not receive.
Utilities for year to date are $61,678, which exceeds the prior year's amount of$52,562.
Maintenance of Facilities for year to date are $179,137 compared to the prior year's
$15,942 due to the Oldsmobile Park Project, which was offset under "Operating Transfer"
in the amount of$174,730 and has been received from the City. Insurance/Bonding for
year to date is at $34,642, which is down from the previous year's amount of$52,740.
After taking into account the City Contribution and Interest, we have a loss of($49,529)
compared to the prior year's loss of ($29,958) which is due to the allocation not being
fully funded.
Balance Sheet: The Net Event Development Fund is $56,895 compared to $53,244 for
year to date for the prior year. Cash for the current year is $74,177 which exceeds the
prior year's amount of $71,834. Unreserved Equity for the current year is $22,504,
compared to the prior year's amount of$69,354.
Budget versus Actual: Operating Expenses-Salaries/Wages for year to date are better than
budget by $3,572. Utilities are higher than budget by ($12,454) for year to date.
Maintenance of Facilities are higher than budget due to the Oldsmobile Park project at
($162,477),Insurance/Bonding is better than budget by $21,187.
LEPFA Board of Commissioners Meeting
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May 24, 2005
Total Operating Expenses for year to date are$403,693 compared to the budgeted amount
of$253,937 which leaves us higher than budget by($149,756) due to the Oldsmobile Park
Project. After taking into account the City Contribution,the Operating Transfer, Transition
Expenses, and the City Underfunding, we have a loss of($46,058).
Commissioner James Butler recommended in reference to Event Revenues that it
would be helpful if the events were indicated for clarity and this is a recommendation only.
Commissioner Butler questioned what Special Event took place last year and not this year
and it was noted that the events were Holywahooza and the Symphony.
C. Lansing Center:
Income Statement: Chairman Sinadinos noted, considering the benchmark of$500,000,
April was a good month. Total Operating Revenues for the current period are $561,272
which is greater than the prior year's amount of$549,381. Building Rental for the current
period is$110,988 which exceeds the prior year's amount of$107,453 and for year to date
the amount is$791,036 compared to$849,569. Food and Beverage for the current period
is$323,103 compared to$297,459 and the year to date figure is $2,402,571 compared to
$2,245,048 for last year. Equipment Rental for year to date is down by about $90,000.
Labor Service is at $128,316 compared to $153,676 for the prior year. Total Operating
Revenues for year to date are $4,083,511 compared to $4,101,300 for the prior year.
At 8:20 a.m. Commissioner Kris Nicholoff and Councilmember Harold Leeman entered the
meeting.
Operating Expenses- Salaries/Wages for year to date are $1,364,000 compared to
$1,406,000, which reflects vacancies and the increased allocation to Oldsmobile Park.
Utilities for year to date are $502,834 compared to last year's amount of $475,677.
Insurance/Bonding is $92,808 which is less than the prior year's amount of$120,761 for
year to date. Bad Debt is $32,511 which was approved last month. Total Operating
Expenses for the current period are $490,669 compared to the prior year's amount of
$503,063 and for year to date they are $4,549,000 compared to $4,621,000 for the prior
year. Chairman Sinadinos noted that the operating transfer is now appearing as the Act 99
debt. After taking into account the City Contribution and the Operating Transfer, we have
income of$112,595 compared to the prior year's loss of($50,390).
Chairman Sinadinos noted the total Transition Expenses are$129,941 at this time and are
distributed between all three entities.
Balance Sheet: After totaling together Cash and Cash Equivalents for the current year we
have $445,000 compared to the prior year's total of$375,000. Account Receivables are
$341,907 compared to the prior year's amount of $458,728 Unearned Revenue -
Advanced Rent(an indicator of future business) for the current year is $368,855 which is
up over the prior year's amount of$329,028. Unreserved Equity for the current year is
$346,382 which is less than the prior year's amount of$376,462.
LEPFA Board of Commissioners Meeting
Page 4
May 24, 2005
Budget versus Actual: Building Rental for year to date is $791,036 compared to the
budgeted amount of$817,800 which is less than budget by($26,763). Food and Beverage
Revenues for year to date are better than budget by $24,365. Equipment Rental is better
than budget by$54,731. Labor Service is less than budget by($32,374). Total Operating
Revenues for the current period are better than budget by ($51,090) and for year to date
they are better than budget by$82,356. Operating Expenses - Salaries/Wages are better
than budget by$88,403 and Fringes/Related Costs are also better than budget by$28,669
and both are better than budget due to vacancies. Utilities are higher than budget by
($6,244). Total Operating Expenses for the current period are higher than budget by
$7,245 and for year to date they are better than budget by $57,197. After taking into
account the City Contribution, Interest, the City Under Funding and Transition Expenses,
we are better than budget by $11,016.
Finance Committee Chair Charlotte Sinadinos moved that the monthly financials for
Oldsmobile Park, the Lansing City Market and the Lansing Center for the period ending
April 30, 2005 be received as published and further that the monthly expenses for each
entity be approved. SUPPORT: Commissioner Butler; motion carried.
2. Act 99 Financing: Chairman Sinadinos noted that Act 99 Financing was discussed at
the Finance Committee Meeting last evening and is currently in the City's hands and
we are waiting for the results. There is a sense of urgency due to the repairs to the air
conditioning and the arrival of summer. Eric noted the Act 99 Financing in the amount
of$40,000 was approved at the last Board meeting to address the long-standing design
flaw in the HVAC system. The bids have been received and we need the funding. The
request has been received by the City, referred to Council and appears to be lost in the
system. Eric noted that he has been working with David Wiener to try to figure out
where it is in the process. He noted Council approved $4 million in bonding for the
Lansing Center and $3 million for Oldsmobile Park for renovations and upgrades and
our budget was cut by $208,000 based on our request. Eric noted that the under
funding will require that he, Marian and the Finance Committee modify our budget and
re-submit it for approval to the Board. Eric noted that Council requested a five year
capital plan from LEPFA. Eric commented that he hoped the Finance Department was
moving diligently to get the bonding because some of the bonding will be used for
operation this year.
At 8:28 a.m. Tom Korkoske entered the meeting and presented Eric with payment for the
carpeting. Eric introduced Tom.
Eric asked Tom for assistance in locating the approved additional funding (which was
sent to Council) to repair the HVAC system. Eric also requested Tom's
assistance in the feasibility of the $300,000 early payment in our subsidy. Tom will
follow up with the City Attorney's office.
Eric noted we do not plan to lay anyone off but we are looking for minimal cuts this
year; and he noted that he personally has taken a cut himself and meetings will be on-
going with the bargaining units.
LEPFA Board of Commissioners Meeting
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May 24, 2005
C. PRESIDENT & CEO'S REPORT: Eric Hart reported the following:
1. Union: Eric noted that we are working with AMTA, IATSE and the UAW in the
negotiation process with the hope of wrapping all three up prior to start of the new fiscal
year (July 1, 2005).
2. City Market Ad Hoc Committee: Eric reported that the Committee has been meeting and
he has prepared a report as requested by Larry Meyer regarding the costs "mothballing of
the City Market" and it will be sent to the Ad HocCommittee and the Board prior to
sending it to Council for review. The request for moth balling was to determine what the
costs would be on a one-time basis and an annual basis and was made by Council Member
Meyer at a Committee of the Whole meeting. Eric also announced that Schnitz Deli will
be closing after "Be a Tourist . . ." due to financial issues. Linda noted the owner has
contacted a business broker and is looking to sell the operation.
3. Food and Beverage-Bill Grove: Bill noted that Food and Beverage had a good month last
month and this month looks good, only to hopefully be capped off by a good June; and he
noted that he expects to end up in good shape, as far as Food and Beverage is concerned.
4. Operations - Scott Keith: Scott reported that the Event Services Manager interviews -
second round have been completed and he hopes to move forward with a job offer soon
and he is in the process of the first round of interviews for the Operations Manager
position. Scott is waiting for the carpeting to arrive to be installed and the ballrooms and
the Governors rooms will receive the carpeting initially. Also we are waiting for the pump
and compressors to arrive in order to move forward with the HVAC project just in time
for the cooling season. Commissioner Jeffries questioned if the operable walls are in;
Scott noted they had been installed.
5. Lansing City Market: Linda Frederickson reported that for the month of April rent revenue
was up by $438. The occupancy is ahead of last April and there was a great deal of
fluctuation with the weather. The advertising campaign kicked off in May and will be
reflected in the May financials. Ads will also be broadcasted on Citadel radio stations
including WJIM- FM and a TV commercial will be shown on WLNS and Comcast.
Regarding recruitment, Kabier Mohammad has vacated his space and we are still working
on collecting his keys and are focusing on the food category tenant to replace Kabier and
Dominic's operation. Linda noted that she did receive a letter from Dominic and he has
decided to execute the option on his five year lease due to hardship. She noted the Market
will participate in the June 4 "Be a Tourist in Your Own Town" city-wide event by
distributing hotdogs. They will also be involved in the Chili Cook-off on June 24.
Eric noted that Council President Allen and other Council Representatives will attend the
meeting with our Board to discuss the issues concerning the City Market. Linda also noted
that Dominic has not made a statement that he is closing and at this point she is not sure
which vendors are aware of the closing; there is some discussion outside of the Market
because he has contacted a broker to sell his business. Commissioner Butler asked if the
Mayor has been invited to "Be a Tourist ..." Eric noted he is aware of the event.
LEPFA Board of Commissioners Meeting
Page 6
May 24, 2005
6. Lansing Center: Linda noted during the month of April we hosted 56 events which
equated to 75 event days, with 22,000 attendees equating to 1,163 room nights for an
estimated economic impact of$700,000.
• Event Highlights: Linda noted l e Lansing State Journal celebrated its 1501h
birthday with a day long open house with on-going entertainment and
complimentary ice cream in April. In April we also hosted the Michigan
Education Association Spring Assembly; Michigan Assisted Living; the Show Biz
Talent/Competition on May 5-8; and the 15"'Annual INCH Conference took
place at the Lansing Center (the eight year at the Lansing Center) and they had
over 2,300 attendees. The Michigan Conference on Affordable Housing was held
on May 13-18 and May 21-22 we had the Bead Show in house (which held its
first event here in January and they do plan to return in November).
At Oldsmobile Park MSU Baseball games were held on April 27, 29 and May 5
and 11. Homerun for Hope took place on May 21 and involved the three Lansing
High School baseball teams and Haslett High School was the guest and they won
the tournament. Mayor Benavides and Chief Alley handed out the winning
trophies and overall the tournament raised about $3,000 for the Hope Scholarship
Fund. Sponsorships also increased this year from $7,000 to $8,250.
• Upcoming Events: Upcoming Events include "Be a Tourist in Your Own Town"
on June 4; the Chili Cook-off; the Diamond Classic and the Michigan Mile.
• Common Ground: Linda reviewed the acts for Common Ground.
• Future Business: Contracts were issued to St. Gerard's Church which came to
us for alternative space for a fundraiser and they are returning here in lieu of their
parish hall. Great Lakes Aviation has booked for February 2006. A contract has
been re- issued for Michigan Assisted Living Association; and we have re-booked
Show Biz' Annual convention. We re-booked the Diocese of Lansing Youth
Jamboree for this November and we have re-booked the Michigan Antiquarian
Book and Paper Show; as well as the Commercial Board of Realtors Annual
Convention in April, 2006; and we have issued a contract to Flagstar Bancorp for
their annual employee meeting.
• Potential New Business: A proposal has been sent to the Commission on
Accreditation of Law Enforcement Agencies, July 2008; and we have met with
and are holding space for the Red Hat Society for September, 2006 and Joyce
Kirk is the chair for that event. A proposal has been sent for the Michigan
Congress of Parents, Teachers and Students Association for April, 2006 and a
proposal has been sent for the Michigan Works state-wide annual convention for
September 2006-2008; a proposal has also been sent to the Family Consumers
and Science Educators for their annual conference in October 2007.
LEPFA Board of Commissioners Meeting
Page 7
May 24, 2005
7. Convention/Visitors Bureau: Linda noted we continue to meet with the CVB and they
have recently hired a New Director of Sales, Jeff Magnuson and Tarena Smith, our
Sales Manager has visited Grand Rapids with Jeff and they are working to coordinate a
meeting planning incentive program. We continue to meet with them monthly in
conjunction with the Radisson and the focus of the meeting is to look at new business
opportunities and how we can be more competitive. Linda also encouraged the Board
to visit the Sheraton Hotel to view their re-model and upgrade first hand. Linda noted
they are raising the bar for the facilities and as a part of their open house they unveiled
their themed meeting packages to include holidays, baby showers, including food
stations. Linda noted they invited meeting planners as well. Eric noted that we were
planning a similar package unveiling in the fall in time for the holidays. Eric Hart
continues to meet with Lee bi-weekly as well and they are looking at re-focusing our
efforts as well and are re-considering the trolley and are considering "by-back
programs" with some of our associations to help supplement the cost of transportation,
which is one of the key factors that hurts us when comparing us with Grand Rapids and
we will start incentivecizing clients. Eric noted they will also be meeting with the
County Commissioners on June 7 to consider cooperatively funding from the county
for the Lansing Center.
8. Marian Bryant: Marian Bryant distributed a parking revenue summary sheet for
LEPFA. The summary sheet was attributed to the efforts of Councilmember Jeffries
during the budget process. The summary showed that$340,000 has been collected, but
it does not show the debt structure, which has also been requested by Councilmember
Jeffries. Eric noted that he and Marian reviewed the information and the analysis
performed several years ago is similar to the City's estimate. Commissioner Butler
asked if we have received any revenue and it was noted that we have not because it is
tied into the debt service numbers, which are not known at this point and once we have
that information it will be easier to review.
Marian noted that we are in the process of replacing the ATM machine at Oldsmobile
Park. State Employees Credit Union has informed us that they will discontinue the
ATM service, so we are in the process of replacing the machine and it should be in
sometime next month. Commissioner Jeffries asked if the machines would be available
for Common Ground. Marian noted the purchase of Common Ground ATM's has been
discussed, but it was not feasible at this time due to the amount of traffic and we will
have two machines on site via our partner 5/3 Bank. Marian noted the issues with
down time last year were related to phone lines and/or electrical circuits, not the
machines. Marian explained the revenue process for the ATMs.
Commissioner Nicholoff noted we are taking a budget cut, fuel prices are up, and
heating and air is going to increase significantly. He noted not only are we going to
take a cut, but our expenses are going to go up, such as insurance. Eric Hart noted
that yes insurance went up, but we negotiated a better deal and the long term of it will
be that if our insurance plays out as we think, it will benefit LEPFA and the
employees.
LEPFA Board of Commissioners Meeting
Page 8
May 24, 2005
We went to a commercial carrier and received a rate increase, but we saw a rate
reduction on our prescription plan. Our percentages have changed and employees are
making a 10% contribution to the premium this year, and while we asked employees to
contribute more, the deductible went down to $250.00 and we implement a health care
savings/flexible spending account plan (pre-tax dollars). The overall package for
LEPFA and for the employees is less expensive for better coverage. He noted that the
plan was very creative and innovative on the part of our broker; our dental coverage
decreased as well through Humana.
Commissioner Nicholoff questioned the insurance for the building. Marian noted
overall we had an $8,000 savings over last year and we do not expect to realize that
savings in the upcoming year. Eric noted that the issue is the potential energy savings
by having the glass taken off the Michigan Avenue side of the building as well as new
light fixtures and a new HVAC system which equates to about $2.4 million capital
funding, which was presented to Council last year. It is anticipated that we would have
a savings of$300,000 in our fuel bills and we in turn would use that savings, with a
guarantee from the contractor that if we didn't meet the $300,000 they would write a
check back to us so that we do not have any out of pocket expenses. Eric noted we are
trying to schedule meetings with the Finance Department and City Services Department
to discuss this because they will have the same issues. He noted long-term, the Board
of Water and Light would not give us any projections on our rate increases, other than
over the next 3-5 years our steam will be at least 50% higher. Eric explained low e
glass and how the HVAC system is extremely inefficient because they are beyond their
life cycle.
Eric noted we are also considering new sources of revenue, e.g. the internet, a business
center etc. Marian noted another area we are recognizing a savings is a copier
agreement (including maintenance) through the Marketing Department through a
partnership with a vendor. Commissioner Butler asked which line item was impacted
the most by the decrease in the City funding. Eric noted that figure has not been
determined to-date because we did not know what the final figure would be, but now
that we have the amount, we will go back and look at the figures. He also explained
that part of the issue is that the Finance Department feels that we have been under-
stating our revenues by about $100,000 but they did not realize the correlation with our
expenses and they want us to finance all of our repairs and maintenance through the
bonded account in this year, which why it is essential that we get the funding.
Commissioner Butler asked what Eric did to have the amount changed from $300,000
to $208,000? Eric noted that the cuts were explained to the Administrative staff and
the City Council and he explained the stadium fund was never transferred last year,
although it was approved in the stadium budget, and although it was approved/allocated
in the Lansing Center budget the $42,000 is gone, but we have been allocated only the
$28,000, which was discovered about six weeks ago and can't be made up. They are
proposing that next year they don't show the allocation and they just need to give us
$50,000 toward the salaries at Oldsmobile Park, and they will give us back the $60,000
that was approved by City Council last year, but was cut. Eric noted that it will be
tight, and in the City's mind we have to come up with $108,000 in cuts, and our goal is
not to lay anyone off.
At 9:20 a.m. Commissioner Kris Nicholoff exited the meeting.
LEPFA Board of Commissioners Meeting
Page 9
May 24, 2005
D. PERSONNEL COMMITTEE: No report.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Janssen noted that he,
Eric Hart and Tim Haggart met and discussed a number of issues which he summarized. He
discussed the spirit of cooperation between the Lansing Center and CVB's staff on various
projects. Capital improvements and how that would be achieved and LEPFA's relationship
with the City, County and other users was also discussed. The Lansing Center expansion and
sources of funding was discussed in terms of revenue that may require legislative action such
as rental car taxes, hotel/restaurant taxes, etc. and potential dependable streams of budget
revenue were discussed as well. The Lansing Center expansion was discussed as previously
recommended prior to the downturn in the economy and discussion ensued regarding the
feasibility of expansion when there are unknowns such as the City Market space, the Ferguson
Project and the Ottawa Power Center and how it all fits into the LEPFA theory. He noted that
how the geographic area is developed will also have a long range impact on how successful the
Center will be in the future. The Market re-development was discussed as well as the
appropriate relationship between the City and the County regarding the Lansing Center as well
as the potential "political football," which was an issue that the Committee did not feel they
could resolve on their own. The cooperative spirit between Eric and Lee and their willingness
to work together was also noted. Committee Chairman Janssen reported that while there were
no specific plans, they will continue discussion regarding those issues and will continue to meet
and develop a specific strategy.
At 9:25 Margaret Vroman exited the meeting.
VH. COMMISSIONER AND STAFF COMMENTS:
A. Commissioner Charlotte Sinadinos: Commissioner Sinadinos welcomed Commissioner Butler
back. Commissioner Butler noted that it was good to be back, and that he was out with a total
knee replacement and he also commented that his wife was an outstanding caregiver 24/7.
B. Councilmember Harold Leeman: Councilmember Leeman thanked everyone for participating
in the budget process and he encouraged those present to continue talking and bringing up
issues. He noted that the budget is the focus for Council, however they would like to be more
engaged in the process throughout the year and he asked that we continue to let Council know
what the issues are for LEPFA. Councilmember Leeman indicated that he does plan to attend
the City Market meeting.
C. Linda Frederickson: Linda reported that she visited Jeff Pluff last night at Sparrow Hospital
and he is taking steps with crutches. Jeff will be evaluated and may be released from the
hospital by the end of this week. She noted Jeff has made huge progress over the past month,
and it appears that he will be released from the hospital soon although he is not expected to
return to work until September/October; however he is making progress and is in good spirits.
D. Commissioner Ellen Jeffries: Commissioner Jeffries noted that the City Market Ad Hoc
meeting did take place on May 4 and it will convene again on June 17 at the 8:00 a.m. She
noted Linda Frederickson and Mark Ter Haar put together a package on the City Market
services and history which was very helpful for the May 4 meeting.
E. Commissioner James Butler: Commissioner Butler noted that it is good to be back.
LEPFA Board of Commissioners Meeting
Page 10
May 24, 2005
F. Commissioner Charles Janssen: Commissioner Janssen thanked Councilmember Harold
Leeman and the City Council for their support with the budget process. He thanked
Councilmember Leeman specifically for attending and participating in the LEPFA Board
meetings. Commissioner Janssen also thanked Eric for doing such a good job with his
"baptism by fire" and he thanked the senior staff for being positive in light of the tough budget
cuts, and he also indicated that the Board will support the staff as well as Eric and that we will
work through the budget issues. He thanked staff for all of their hard work.
G. Tom Korkoske: Mr. Korkoske noted that he is here to support LEFPA and will try to run
down the outstanding funds. He noted that he is also available as a contact person.
H. Bill Grove: Bill questioned the sale of the naming rights of the Lansing Center in light of the
budget concerns as a potential revenue source. Eric noted it is on the agenda as a potential
revenue source, however potential sources are limited and the issue would require political
research and will be addressed by the LEPFA Long Range Planning Committee.
I. Eric Hart: Eric thanked the Board, Council and staff for helping him through the past several
weeks with budget. He also noted that there was a request by Councilmember Jeffries and
Councilmember Wood to meet quarterly with the Council to keep them updated.
Councilmember Leeman suggested waiting until September.
VIU. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:35 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY,JUNE 28,2005 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 28, 2005
MINUTES
At 8:03 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, Ellen Jeffries,
Cyril McGuire, Sharon Peters, Kris Nicholoff, Charlotte Sinadinos and Denise Wootton.
COMMISSIONERS EXCUSED: Glenn Kirk (Ex-officio) and Jim Ruff(Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric Hart, Scott
Keith and Dirk Spillemaekers - Lansing Entertainment and Public Facilities Authority.
HI. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda.
IV. PUBLIC COMMENT: There was no public comment.
V. APPROVAL OF THE MINUTES OF MAY 24, 2005: The minutes of May 24, 2005 were
adopted as presented. MOTION: Commissioner James Butler SECOND: Commissioner Cyril
McGuire; the motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
1. Carpeting: Chairman Haggart noted that the new carpet looks good, which in turn
emphasizes the need for wall repairs.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending May31,2005: Committee,Chaia m
Charlotte Sinadinos reviewed the financial statements as follows:
a. Lansing City Market:
Income Statement: Building Rental for the current period is $5,832 which exceeds the
prior year's amount of $5,054 and the year to date building rental is $50,215 which
exceeds the amount of$42,185 for the prior year. Total Operating Revenues for year to
date are $66,542 compared to the prior year's amount of$59,759. Operating Expenses-
Salaries/Wages are down for year to date at$42,676 compared to the prior year's amount
of$44,001. Utilities for year to date are$43,155, which exceeds the prior year's amount
of$39,334. Marketing for the current period is$4,788. Maintenance of Facilities for the
current period is $9,987 which is for the repair of the roof at the City Market.
Insurance/Bonding is down for year to date at$2,275 compared to $3,469 last year.
Total Operating Expenses for the current period are$23,049, compared to the prior year's
amount of$8,374 and year to date Operating Expenses are $140,993 which exceeds the
prior year's year to date amount of$133,575; which also reflects the transition expense
allotted to the City Market in the amount of$1,213, for a year to date loss of($9,105)
compared to the prior year's loss of($9,332).
LEPFA Board of Commissioners Meeting
Page 2
June 28, 2005
Balance Sheet: Our cash position for the current year is $92,290 versus $29,764 for the
prior year. Under Liabilities- Accounts Payable (for the roof and advertising) for the
current year are $27,192. Unreserved Equity for the current year is $157,181 which
exceeds the prior year's amount of$163,211.
Budget vs. Actual: Building Rental for the current period is better than budget by$358 and
for year to date it is better than budget by $5,849. Total Operating Revenues for the
current period are better than budget by $333 and for year to date they are better than
budget by$1,851. Under Operating Expenses- Salaries/Wages are better than budget by
$4,721 for year to date. Utilities are higher than budget by ($7,394). Maintenance of
Facilities is higher than budget by($7,617)due to the roof. Total Operating Expenses for
the current period are higher than budget by($10,596) and for year to date they are better
than budget by$3,181. After taking into account the City Contribution, Interest and the
Transition Expenses we are better than budget for year to date by $3,038.
At 8:07 a.m. Commissioner Kris Nicholoff entered the meeting.
b. Oldsmobile Park:
Income Statement: Event Revenues are$25,070(Diamond Classic, Homerun for Hope and
MSU Baseball) and Event Expenses are $12,528 for a net income of$12,541 which was
added to the Event Development Fund. Under Operating Expenses- Salaries/Wages for
year to date are $71,929 (due to the allocation) compared to the prior year's amount of
$49,453. Utilities for year to date are$66,078, which exceeds the prior year's amount of
$56,589. Maintenance of Facilities for year to date are$180,551, which was offset under
"Operating Transfer." Insurance/Bonding for year to date is down at$38,597 versus the
prior year's amount of $57,701. After taking into account the City Contribution and
Interest, we have a loss of($50,758) compared to the prior year's loss of($27,193).
At 8:09 Vice Chairman Sharon Peters entered the meeting.
Balance Sheet: Total Cash for the current year is $111,486 compared to the prior year's
amount of$79,534. The Net Event Development Fund is$69,436 compared to$56,024.
Unreserved Equity for the current year is$33,816, compared to the prior year's amount of
$74,899.
Budget versus Actual: Operating Expenses -Salaries/Wages for year to date are better than
budget by $1,239. Utilities are higher than budget by ($12,316) for year to date.
Maintenance of Facilities is higher than budget due to the Oldsmobile Park project at
($162,225)which is offset by the City's Operating Transfer of$176,322. After taking into
account the City Contribution, the Operating Transfer, Transition Expenses allocated to
Oldsmobile Park, and the City under funding, we are less than budget by ($49,028).
Eric noted that a contract was signed by Patrick in November with Trey Rogers from MSU
for turf consulting that is not in the budget in the amount of$1,500 during the baseball
months and$500 in the non-baseball months for 5 years. Marian noted that it was a part
of the new turf deal to be certain that it would be maintained appropriately. Commissioner
Butler asked if the expenditure came before the Board.
LEPFA Board of Commissioners Meeting
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June 28, 2005
Marian noted that typically the Board would be notified of the contract but it doesn't
require a vote. Marian suggested that it may have been explained in the overall process,
but not that it was a five year contract. Eric noted we have the funds for next year, which
will absorb any savings. Commissioner Butler asked if it was possible to renegotiate the
contract. Eric noted we maybe able to renegotiate an hourly rate.
c. Lansing Center:
Income Statement: Building Rental for the current period is $100,546 compared to the
prior year's amount of$116,530 and for year to date the amount is$891,582 compared to
$966,100 for the prior year. Food and Beverage for the current period is $239,129
compared to $298,794 and the year to date figure is $2,641,700 compared to$2,543,843
for last year. Total Operating Revenues for the current period are $441,238 compared to
$548,981 for the prior year and for year to date they are $4,524,749 compared to
$4,650,282 for the prior year. Committee Chairman Sinadinos noted the difference in
figures for this year's May compared to last year is because MEA was held in May last
year and this year it was held in April.
Operating Expenses- Salaries/Wages for the current period are $131,414 which is less
than the prior year's amount of $141,774 (the difference is due to the allocation and
vacancies)and year to date they are$1,495,000 compared to$1,547,000. Utilities for year
to date are $542,411 compared to last year's amount of$530,466. Insurance/Bonding is
down for year to date at$102,553 which is less than the prior year's amount of$131,681
for year to date. Total Operating Expenses for the current period are $421,842 compared
to the prior year's amount of$460,550 and for year to date they are $4,971,000 which is
less than$5,082,000 for the prior year. The Operating Loss for year to date is($446,587)
compared to last year's loss of ($431,862). After taking into account the City
Contribution, the Act 99 Debt Service, Transition Expenses and the Operating Transfer,
we have revenues over expenses for year to date in the amount of$181,891 compared to
revenues for the prior year in the amount of$67,761.
Balance Sheet: After totaling together Cash and Restricted Assets for the current year we
are at $457,870 compared to the prior year's total of$397,136. Unearned Revenue -
Advanced Rent for the current year is$320,397 which exceeds the prior year's amount of
$277,453. Also noted is the Act 99 Equipment Liability line item amount of$619,932 for
the current year compared to $162,296 for the prior year. Unreserved Equity for the
current year is $415,678 which is less than the prior year's amount of$494,613.
Budget versus Actual: Building Rental for year to date is less than what was budgeted for
year to date at ($32,549). Food and Beverage Revenues for year to date are better than
budget by $11,701. Labor Service is less than budget by ($34,629). Total Operating
Revenues for the current period are less than budget by($22,822)and for year to date they
are better than budget by$59,533. Operating Expenses- Salaries/Wages for year to date
are better than budget by $100,230. Utilities are better than budget by $3,837.
Insurance/Bonding is better than budget by$28,159. The Bad Debt is less than budget by
($32,511). Total Operating Expenses for the current period are better than budget by
$49,385 and for year to date they are better than budget by $106,583. After netting
Expenses against Revenues we are better than budget by $166,117.
LEPFA Board of Commissioners Meeting
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June 28, 2005
After taking into account the City Contribution, Operating Transfer, City Under funding
and Transition Expenses allotted to the Lansing Center we are better than budget.by
$34,635.
Eric reported that we have been notified in regard to the bad debt for $32,511 that Cam
Tre has not paid on their settlement for two months which means we will now be entitled
to the entire amount owed us per the settlement, but it is likely that they will go bankrupt
and we will be writing off the amount owed. Eric also noted that additionally, Trillium,
which is the new group that represents Delphi, is in arrears to us by $9,500 and they are
disputing their bill and we have contacted Delphi. Eric noted we did receive a form letter
from Trillium regarding their economic status.
Commissioner Peters asked in regard to CamTre how do we now show the bad debt?
Marian Bryant clarified that we wrote off part of the bad debt ($30,000) and there was
always the possibility that we would have to write off more based on the agreement
because they had the option to notify us by July 1 that they were going to make a lump
sum payment of$20,000 to settle the debt, and they still have the option. At this point
they still have not paid the last two months and a lump sum payment is not likely. Thus the
amount will be added to the bad debt amount.
Finance Committee Chair Charlotte Sinadinos moved that the monthly financials for
Oldsmobile Park, the Lansing City Market and the Lansing Center for the period ending
May 31, 2005 be received as published and further that the monthly expenses for each
entity be approved. SUPPORT: Commissioner Peters; motion carried.
2. Employee Flex Reimbursement Plan: Marian Bryant explained that she and Eric have
worked with our benefits provider to provide our employees with a "Flex
Reimbursement Plan" as a part of our medical program. It's a revision to our current
cafeteria plan that allows employees to designate a pre-tax amount to be deducted from
their payroll up to $500 for the period ending December 31, 2005 and beginning with
the new calendar year they will be allotted a deduction of$1,000 annually to pay
qualified, pre-tax medical expenses (office visits, prescriptions, over the counter
medication, etc.). Marian noted that the liability for the employee is that it is a "use it
or lose it" plan; the benefit is that there is a grace period of 2.5 months beyond the
traditional 12 months to use it. The employer will put the funds in each account as of
July 1 and the employee will be eligible to use funding up to their designated amount
and will pay the employer back. Commissioner Kris Nicholoff asked if the premiums
are paid in full, or is there a co-pay for the employees. Marian noted that there is a
co-pay, but it's included as a part of the cafeteria plan, which has been approved in
previous amendments. There is also a dependent care plan as well, but we have to
have the money in to take it out. Finance Committee Chairman Sinadinos moved that
the Board approve for adoption the Flex Reimbursement Plan as presented.
SECOND: Commissioner Butler, motion unanimously carried.
3. Health Reimbursement: Marian noted that this is a program that we currently have and
we are requesting approval of the revisions in the co-pays and deductibles in our
medical plan that began June 1. Office visits have been revised from $30 to $20 and
the $10 payment by LEFPA will no longer be required for provide employee
reimbursement and we will no longer reimburse prescription drugs because that co-pay
has decreased as well.
LEPFA Board of Commissioners Meeting
Page 5
June 28, 2005
The deductible was $500/$1000 and is now $250/$750 and the plan needs to reflect the
change in the reimbursable amount to $250. Eric explained that the deductible has
been lowered as well as the overall expense to the employee who can save up to an
additional $300 this year in pre tax dollars. Motion was made to approve the health
reimbursement amendment as presented. MOTION: Commissioner Sinadinos;
SECOND: Commissioner Peters; the motion carried.
Commissioner Janssen asked if we will make budget this fiscal year. Marian noted it
will be close and is dependent on June, which is typically not a strong month. She
noted we will not make budget at Oldsmobile Park and it will be close at the Lansing
Center. Eric also indicated that we are reworking the budget for all facilities and will
make cuts for all facilities including the City Market.
C. PRESIDENT & CEO'S REPORT: Eric Hart reported the following:
1. Carpet Update: Eric noted that the carpet has been installed in the Governor's Room; the
meeting rooms will be completed in the next several weeks. The woodwork has been
repaired and on the lower level, the wall fabric has had some repairs, and the restrooms
have been cleaned as well and we are trying a new approach on how we are cleaning the
restrooms. Commissioner Butler commented on the restroom advertising. Eric noted that
we are beginning to address some of the overall concerns with the building and we hope to
possess the $4 million so that we can address the rest of the carpet and HVAC. The walls
will also be addressed by removing the paper and painting.
2. IAAM Senior Executive Symposium: Eric noted he was at Cornell this week and did
receive his diploma and finalized year three of a three year program and he thanked the
Board for their support.
3. Union: Eric noted that we have settled our contract with AMTA. The IATSE process has
taken a step back; we thought we were close to an agreement but we are not as close as we
originally thought we were and we will meet with them this week. A meeting has been set
with the UAW for late July and the goal this year is to get everyone to understand the
budget issues and we are going to work to maintain lower increases on our salaries, etc. so
we can hopefully avoid laying people off, which is our goal.
4. Common Ground: Eric indicated that the tickets will be distributed soon. He noted that
sales are off and that the GM situation has not helped the festival on the front end(we lost
$200,000, but have made up almost$90,000); however, we have seen a significant spike
in the last several weeks. Eric noted that he and Kevin are encouraged by the sales and
that they hope we will meet our goal. Linda noted that this will be the first time the single
day ticket prices will increase as of July 1 from $25 to $29. Eric indicated that we are
ahead on the single day tickets, but are behind on the Common Cards. Commissioner
Peters commended Eric on being prudent. Eric noted the challenge next year will be that
we may lose GM as the title sponsor; however, Shelby is entertaining potential sponsors in
the skybox this year for next year and this year overall sponsorships are up by about 10%.
Commissioner Butler noted that Sparrow Hospital is our seconded largest employer and
he asked if we can work further with them on sponsorship.
LEPFA Board of Commissioners Meeting
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June 28, 2005
Linda indicated that they are the Common Card sponsor this year;however they offered no
payroll deduction, they didn't allow solicitation, etc. which did not allow us access to their
employees; and it is our hope to address these issues for next year(we were not allowed to
sell to employees at Sparrow). Commissioner Butler noted that he would be willing to
help facilitate a meeting with the new CEO who is likely to be willing to meet to discuss
the issues.
5. City Market: Eric reported that the Ad Hoc Committee met with Council as well with
Linda, Mark and Eric to discuss the City Market's future, and that he felt it was beneficial
for the Administration and the Council. He noted a meeting will be scheduled in August
with the vendors for strategic planning. Committee Chairman Ellen Jeffries noted that the
City is going to follow up on the signage ordinance and the potential for Park mileage
funding. The Allen Market was also discussed. Commissioner Janssen questioned the
status of the research study by the University of Michigan and Michigan State University.
Linda noted she is in touch with Larry Moelnar, and Veronica but the issue remains the
$80,000 in funding for the study. Linda Frederickson reported that May rent revenue was
up compared to last year; however, Schnitz Deli did officially close as of June 4 and
Dominic exercised his "out clause" and is in the process of trying to sell the business to
an independent business operation. A new produce vendor started vending as of June 25
and they will sell Asian specialty foods and produce. Over 2,000 hotdogs were served at
the "Be a Tourist" event on June 4. Advertising and entertainment continues at the Market
through June.
6. Lansing Center: Linda noted during May we held 46 events which equated to 64 event
days, with 13,500 attendees equating to 1,171 room nights for an estimated economic
impact of over $700,000.
• Event Highlights: Since our last meeting Lifechangers Church - Women's
Success Conference was in house on May 25-28. The Kellogg Foundation
celebrated their 75`h Anniversary of the foundation on June 7-10. June 11 the
"Team" event took place and on June 16-17 and the Supreme Court held an event
which was attended by judges at every level including the Supreme Court. Last
week the K-16 Coalition for Michigan's Future hosted a pre-rally in all three halls
with over 11,000 attendees. This Friday we hosted the Board of Water and
Lights "Chili Cookoff" which was expanded this year to the City Market and the
weather was great. About$25,000 was donated to the two charities for the one
day event.
At Oldsmobile Park the quarter, semi and finals for Diamond Classic baseball
tournament took place. Linda noted that we continue to work with the organizers
in regard to sponsorship funding for the Classic. June 4 the Michigan Mile took
place with over 2500 participants.
• Upcoming Events: Upcoming Events include the "Bead Mercantile Show," the
Pet Quest Expo, and Great Lakes Feis. Upcoming events at Oldsmobile Park
include the Michigan State Police Tactical Training and July 29-31 the first series
of "Park After Dark" movies (which will be announced once we have them) are
scheduled.
LEPFA Board of Commissioners Meeting
Page 7
June 28, 2005
• Common Ground: Linda reviewed the Common Ground schedule as distributed
and noted the last head liner has been not released yet, but is the Black Crowes on
Thursday, July 14 and that completes the line up.
• Future Business: Contracts were issued to the Central Michigan Home Show in
2006; we have re-booked the Michigan Catholic Home Educators Annual
Conference in 2006; and the EC Michigan Conference will be held in February
and a contract was issued.
• Potential New Business: A proposal has been submitted to the North Central
Association in 2007 for 1,500 people; a proposal has been submitted to the
Michigan Elementary and Middle School Principals Association for their 83rd
State Conference in October, 2010. We are holding space for the Michigan
Science Teachers for 2012 for 11,500 people. We have submitted a proposal and
are holding space for Citizen's Insurance Company of America to do an employee
tailgate in July for 10,000 people.
7. Finance Department: Marian Bryant reported that the ATM is in and installed at
Oldsmobile Park and has been for two weekends and is doing quite well and
hopefully it will continue.
8. Food and Beverage: Bill Grove noted it was a very busy weekend and while we
expanded the beverage stands during the Chili Cookoff, he was disappointed with the
outcome which he attributed to the heat. However, he felt it was our best Chili Cookoff
and noted that we also served two weddings simultaneously. Commissioner Nicholoff
questioned the date of the Cookoff, since chili is typically a cool weather food. It was
noted that the Board of Water and Light selects the dates as the sponsor and they have
to coordinate dates with the Lugnuts.
9. Operations Department: Scott Keith reported that we had a cooperative effort on trash
with Steve Widder from the City of Lansing — Parks Department and as such there
were no trash issues at the Chili Cookoff this year. He also noted that Tristyn Wright
has been promoted to Operations Manager. Melody Stevens has been hired as the
Event Services Manager effective this Friday, July 1 and she comes from
Columbus Ohio and used to work at the Lansing Civic Center. The carpet is completed
in the ballrooms, the Governor's Room, the meeting rooms, and the board rooms
are tentatively scheduled for a July 20 installation. The Administrative Offices will be
scheduled after Common Ground and the audit. Currently the City Market parking lot
pot holes are being repaired and they will be moving the handicapper spots from the
north end of the building to the south end. At the Lansing Center the HVAC
compressor has been installed and the pump has been returned but will be installed
once received. The Fish Ladder project has been halted due to a land owners concerns
and the DNR. Eric noted that Grand Pointe Marina and Triton Industries will be a
Common Ground sponsor and will provide free boat rides and we look to have them
return next year.
10. Staff Vacancies: We have three vacant positions and we will not fill the positions at
this time and we are trying to hold off as long as we can with the goal to fill our
working line level position first. The positions open are a Maintenance Worker,
Operations Coordinator and a Foreperson position.
LEPFA Board of Commissioners Meeting
Page 8
June 28, 2005
D. PERSONNEL COMMITTEE: Chairman Cyril McGuire noted that there has not been a
meeting, but a meeting is scheduled following today's Board meeting.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Janssen noted that they
met with the core group from the CVB and discussed coordinating efforts with the CVB and a
regional approach on a number of items and how we can coordinate financial support from the
county at some point in time and how that relates to the CVB. Committee Chair Janssen noted
that he felt it was a good meeting and that Eric and Lee set a tone of cooperation. A meeting
has been set for September to discuss our financial needs and budget process and how it affects
them as well. He also noted that the CVB is aware of how we impact them and overall it was
a good, educational, informative and cooperative meeting. Commissioner Butler agreed with
Chairman Janssen's comments regarding the degree of cooperation and the collaboration. He
felt that the CVB came across as sincere in their willingness to work with us and they asked to
be brought into any of our issues(i.e. budget)so that they could support us in our efforts. The
next meeting is scheduled for September 29 at 7:30 a.m. at the Lansing Center. He noted that
he felt it was an extremely good meeting and that Eric answered all of their questions which
focused on the Lansing Center. Commissioner Peters noted that it appears that the relationship
building that Eric is committed to appears to be assisting us. Chairman Haggart commented
that this meeting, compared to the first meeting, was more productive and that Eric has done a
good job of moving the meetings forward. Eric indicated that we will have challenges because
our missions are different and we have to see the difference in interests, but we need to
cooperatively work together to address each other's needs. He noted that the Lansing Center
is 40% of their business and we contribute to their financial means and to be adversarial isn't
in our best interest, but we can't hemorrhage while they are successful. Eric noted he is
working with a group of leaders to address issues and they have already taken steps on several
issues such as a study with CATA to have a trolley running between Lansing and East Lansing;
and they are working with an electronics company and the CVB on touch screen kiosks. He
noted overall it is going well and we need to keep working together.
F. NOMINATING COMMITTEE REPORT: Committee Chairman Janssen noted that he,
James Butler and Ellen Jeffries spoke and came to the conclusion to recommend the following
slate of officers: Chairman - Sharon Peters; Vice Chairman - Ellen Jeffries; and
Secretary/Treasurer- Charlotte Sinadinos. He also noted in going through the process it was
apparent that we have a small board and a number of members have served in various
capacities and we also have a number of members up for renewal annually; however, Ellen
has agreed to serve Vice Chair, but it cannot be assumed that Vice Chairs will automatically
serve as Chair, because we are a small group. It was moved by Committee Chairman Janssen
that the slate of officers be approved as follows: Chairman- Sharon Peters;Vice Chairman-
Ellen Jeffries; and Secretary/Treasurer - Charlotte Sinadinos. SUPPORT: Commissioner
Butler, motion unanimously carried.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Commissioner Charlotte Sinadinos: Commissioner Sinadinos noted that she is hearing positive
and good feedback on Common Ground.
LEPFA Board of Commissioners Meeting
Page 9
June 28, 2005
B. Linda Frederickson: Linda reported that tomorrow is the Common Ground Volunteer Training
and Kickoff.
C. Commissioner Ellen Jeffries: Commissioner Jeffries noted that she and her husband are
volunteering during Common Ground and that Heidi is their team leader and is an inspiring
leader at the Information Booth.
D. Commissioner James Butler: Commissioner Butler questioned the status of the meeting with
the UAW regarding Common Ground. Commissioner Haggart noted that he and Shelby met
with Bruce McAtee, who will contact Bob Roth and set up a meeting with Tim and Shelby.
Eric noted that the UAW was one of the groups that will utilize the skybox. Commissioner
Butler requested an updated LEFPA Organizational Chart. He also congratulated Eric on his
accomplishments through IAAM at Cornell.
E. Commissioner Charles Janssen: Commissioner Janssen requested a listing of the sponsors to
see where the Board can be of help. He also commented on the convenience of selling
Common Ground tickets during the lunch hour as a service for the various sponsors.
Commissioner Butler suggested hosting a luncheon with the long-standing sponsors and
potential sponsors so that the long-term sponsors can address/sell why they sponsor Common
Ground and he also suggested going out and selling tickets to various organizations on lunch
hour, i.e. the state government. Eric noted we cannot forget "Park After Dark" and "Fright
Night" sponsorship opportunities as well so that we can market them equally as well as
Common Ground, because they are community events and bring people downtown as well.
F. Commissioner Sharon Peters: Commissioner Peters thanked her colleagues for their
confidence in electing her for their consideration over the past several months. She noted that
she lost her mother last month and has had personal/professional issues which caused her to
miss LEPFA related meeting and the catching up has been heartening because many of the
issues appear to be going in the right direction. She noted that she appreciated the condolences
from the Board and she also thanked Tim for his extraordinary effort as Chair, as well as the
whole Board, for their engagement/involvement which has been unique and required a lot of
hard work. Vice Chair Peters also noted that Tim has steered the Board in his quiet way and
performed a lot of behind the scenes work and she noted that she appreciates how he has
handled the Board and she will be consulting with him. Also, the addition of Eric has been a
good thing for LEPFA and she looks forward to the next year, the stronger community
approach, and to working with the Board, and that she appreciates the support the Board has
given her over the past several months.
G. Eric Hart: Eric present Chairman Tim Haggart with parting thank you gifts and extended his
thanks to Tim for his help. Tim noted that he appreciated everyone's help and that it was a
group effort and was a rewarding experience which started at Common Ground last year.
Commissioner Butler commented that Tim has done a tremendous job especially in the CEO
process and in contacting everyone; and he noted that we all appreciated his tremendous job
and thanked him for his efforts.
VIII.OLD BUSINESS:
No report.
LEPFA Board of Commissioners Meeting
Page 10
June 28, 2005
IX. NEW BUSINESS:
No report.
At 9:47 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, AUGUST 23, 2005 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 27, 2005
MINUTES
At 8:05 a.m. 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, John Decker, Tim Haggart, Ellen Jeffries, Glenn
Kirk (Ex-officio), Cyril McGuire, Kris Nicholoff, Sharon Peters, Jim Ruff (Ex-Officio) and Charlotte
Sinadinos.
COMMISSIONERS EXCUSED: Charles Janssen.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric Hart; Scott
Keith and Dirk Spillemaekers-Lansing Entertainment and Public Facilities Authority. HaroldLeeman and
Margaret Vroman - City of Lansing.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. MOTION:
Commissioner Butler; SECOND: Commissioner Haggart; motion carried.
IV. PUBLIC COMMENT: There was no public comment.
V. APPROVAL OF THE MINUTES OF AUGUST 23, 2005: The minutes of August 23, 2005
were adopted as presented. MOTION: Commissioner Sinadinos SECOND: Commissioner
Butler; motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman Sharon Peters reported the following:
1.Finance Committee: Chairman Peters reported that she was pleased to attend a portion
of a very robust discussion at the Finance Committee meeting. She noted two of the
Commissioners currently not present attended the Finance Committee Meeting which
means the Board is active; the Finance Committee will have a great deal to discuss today.
2. Personnel Issues: Chairman Peters noted there was one item that needed to be revisited
from last month, and it a Personnel issue having to do with the CEO's contract. She noted
a public vote was lacking and while the Board deliberated and did their due diligence, a
public roll call vote is needed.
At 8:10 a.m. Commissioner Jeffries entered the meeting.
Chairman Peters requested a motion for the recommendation that was brought forth in
Executive Committee last month. Personnel Committee Chairman Haggart moved that the
Board extend the CEO's contract for one(1)year as discussed. SECOND: Commissioner
Butler. Roll Call Vote: Butler-yes, Decker- yes, Haggart-yes, Jeffries-yes,McGuire
- yes, Peters - yes, Sinadinos - yes. Motion carried.
Commissioner Haggart also moved that the Board accept the modification to the Thrift Plan
as distributed to all members last month. SECOND: Commissioner Butler
Roll Call Vote: Butler - yes, Decker - yes, Haggart- yes, Jeffries - yes,
McGuire- yes, Peters - yes, Sinadinos - yes. Motion carried.
Chairman Peters welcomed Commissioner Decker as the City Market Representative.
LEFPA Board of Commissioners Meeting Minutes
Page 2
September 27, 2005
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending July 31 2005: Committee
Chairman Charlotte Sinadinos reviewed the financial statements as follows:
a. Lansing City Market: Income Statement: Operating Revenue -Building Rental for
the current period is $4,551 which exceeds the prior year's amount of$5,655 which is
down about$1,100 due to the loss of Schnitz' Deli. Under Operating Expenses— Utilities
for year to date are up at $3,716 which exceeds the prior year's amount of $3,088.
Maintenance of Facilities for year to date is $992.68 compared to $248.10 which is
attributed to a major repair to the roof. Total Operating Expenses for the current period
are $8,722 compared to the prior year's amount of$9,305 for an operating loss for the
current period of ($4,136), which exceeds the prior year's amount of ($3,615). After
taking into account the City Contribution and Interest, we have excess revenues over
expenses of$907 compared to $4,307 for the prior year.
Balance Sheet: Our total cash for the current year is$71,729 versus $38,752 for the prior
year. Unreserved Equity for the current year is $160,421 which is less than the prior
year's amount of$170,593.
Budget vs. Actual: Building Rental for the current period is less than budget by $368 as
well as for year to date. Under Operating Expenses — Salaries/Wages are higher than
budget by ($219). Total Operating Expenses for the current period and year to date are
$8,722 compared to the budgeted amount of$8,881 for an amount better than budget of
$158. After netting the expenses against revenues, we are more than budget by ($210).
Bottom line, we are higher than budget by ($223) for year to date.
b. Oldsmobile Park:
Income Statement: Event Revenues for the current period, which consists of movies, Park
After Dark, etc. are$5,147. Event Expenses are$5,997 for an event loss of($849)which
was applied to the Event Development Fund. Under Operating Expenses- Professional
Services, the turf repair is reflected in the $1,500 amount. Utilities for year to date are
$5,226, which exceeds the prior year's amount of$5,061. Insurance/Bonding is down at
$2,451 compared to $3,127. Salaries and Wages are less because the allocation is no
longer a budget item and they are$1,536 compared to$5,547 for the prior year. Year to
date revenues over expenses are $5,528 compared to the prior years $3,984.
Balance Sheet: The total cash position is down at $83,638 compared to the prior year's
$105,591. The Net Event Development Fund is $66,779 compared to $70,132 for the
prior year. Unreserved Equity for the current year is $36,203 compared to $90,149 for
the previous year.
Budget versus Actual: Utilities for the current period and for year to date are $5,326
compared to the budgeted amount of$5,216. Total Operating Expenses for year to date are
$13,770 compared to $15,907, which leaves us better than budget by $2,136 for year to
date. After taking into account the City Contribution and Interest we are better than budget
by $2,094.
LEFPA Board of Commissioners Meeting Minutes
Page 3
September 27, 2005
c. Lansing Center:
Income Statement: Committee Chairman Sinadinos noted that the numbers are down
significantly and she attributed it to the mix of events. Building Rental for the current
period is$14,845 compared to the prior year's amount of$13,660. Food and Beverage is
down significantly at$62,036 compared to the prior year's$95,070. Equipment Rental is
down significantly from the prior year as well as Trade Show Utilities. Total Operating
Revenues for the current period are$83,104 compared to$140,688. Operating Expenses-
Utilities are down at$42,263 compared to$48,238 for the prior year and is down because
our business is less. Maintenance of Facilities is $9,776 compared to $6,767 for last year
which is comprised of equipment failure repair. Insurance/Bonding is down at $7,039
compared to $8,818. Total Operating Expenses for the current period are $263,797
compared to the prior year's amount of $310,406. After taking into account the City
Contribution, Interest, etc. we are down ($116,250) compared to ($99,249).
Balance Sheet: Cash and Cash Equivalents for the current year are$118,000 compared to
$114,000 for the prior year. Unearned Revenue - Advance Rent for the current year is
$354,060 compared to $294,654 which is an indicator of future business. Unreserved
Equity is ($8,141) compared to the prior year's amount of$134,537.
Budget versus Actual: Operating Revenues are $83,104 compared to $87,297 which is
less than budget by $4,192. Operating Expenses are $263,797 compared to $300,424
which is the budgeted amount and leaves us $36,626 ahead of budget. Netting our
expenses against revenues, we are better than budget by$32,433. After taking into account
the City Contribution and Interest we are under budget by $33,025.
Eric noted we are now running a negative equity position which means we are now out of
money and no longer have a fund balance, and it will increase over the next month because
the revenue flow will not pick up until September. He noted it is critical because we are
becoming "cash poor." Eric noted he wants to make sure everyone understands what is
happening as depreciation continues to increase, the debt will continue to increase and the
equity will not get much better. We are doing all we can in terms of cash flow and this
will cause us to look at all events in terms of cash flow. He also noted next month we will
have the audit presentation, and there is the potential that they will require we have a plan
in relationship to the City and Oldsmobile Park in terms of the negative equity and the law.
Eric noted he wanted to make everyone aware and that we are working with the City
Finance Department to address the issues.
Chairman Peters asked Eric to address the maintenance issues and their impact. Eric noted
we have had complaints and actually lost clients due to the condition of the building and
the building failures. Items lost includes the pneumatic system, compressors, etc. which
adds debt, which increases depreciation, and is not recognized by the City. He noted a
plan has been submitted to the Administration for about $500,000 in emergency repairs
over the next twelve months (includes roofing, structural, carpeting, lighting and sound
systems, all which are reaching the end of their useable life).
At 8:30 a.m. Commissioner Kris Nicholoff entered the meeting.
LEFPA Board of Commissioners Meeting Minutes
Page 4
September 27, 2005
Glenn Kirk noted that they have been working with the Bond Council on proposed
resolutions for Oldsmobile Park and Lansing Center items. Resolutions have been drafted
for presentation to Council this or next week requesting$3,000,000 for the stadium and a
bond resolution for the Lansing Center in the sum of $4,000,000. He noted there is
recognition of the types of maintenance and upgrades needed. He noted the actual
documents will be shared with Eric.
Chairman Peters noted the maintenance issues, such as temperature, are the issues that
keep the clients coming back and she wanted to bring it to the attention of the Board and
our City partners.
Glenn Kirk noted that what they are finding at the stadium and the Lansing Center is that
the "big bang" approach to maintenance and renovation is very, very, costly. He sited the
ballpark study performed with the owner showed $4,000,000 needed in repairs, and we
have found that there wasn't adequate funding set aside for ongoing maintenance repairs/
upkeep of the operation and we wait and then have to spend. He noted we are finding that
that the "big bang" approach costs about$3 for every$1 dollar that would have been spent
if repairs were done on an ongoing basis. He noted they are finding the same thing at the
Lansing Center and Council recognizes that we need to fund that on an ongoing basis and
be able to put assets in place. He noted he and Eric are recipients of the process and they
both recognize that it doesn't serve us well. He noted this first time we need to get the
funding that is needed to get us back to ground zero and moving forward the strategy
needs to be changed and it will take a lot of discussion.
Chairman Peters noted that the budget is not decided by the Board by themselves and they
are very much in communication with the City and the maintenance planning for the
building, in order to maintain our quality standards to serve the purpose of the building,
are the issues that were discussed at the Finance Committee meeting. She asked
Councilmember Leeman for any future ideas that he may have in working with the Council
on planning. She noted she was glad that Glenn and Eric are engaged in the issue. Glenn
noted that it doesn't mean that the approach is agreed upon, and that once the dollars are
invested in the upgrades that we are able to generate more revenues and are able to
maintain the growth and revenue by setting aside dollars. Chairman Peters clarified that
the$4,000,000 in funding is in process, which will address some of the issues. Eric noted
the discussion item is the funding of the depreciation as an expense which is currently
unfunded. The question is where we go from here; he noted we have not filled positions
and we are also considering events that require cash flow such as Common Ground, Fright
Night, as well as our employees. He noted we need creative solutions for the issues.
Chairman Peters stated that she felt this is singly the most important issue; and fiscal
management is an issue that is taken seriously by this Board and we all need to be aware
and address such issues as depreciation.
Commissioner James Butler questioned why the Total Operating Revenue is significantly
less this year compared to last year, specifically Food and Beverage. Marian clarified that
the decrease is due to the mix of events and events such as the Bush/Cheney event did not
take place this year. Also the events we had did not require the same amount of equipment
and associations are cutting back which directly correlates to our bottom line.
LEFPA Board of Commissioners Meeting Minutes
Page 5
September 27, 2005
We had more event days last year, but less revenue. Commissioner Butler requested a
copy of the list of groups that have left the Lansing Center due to maintenance of the
facility. Eric noted he will forward the list shared at the budget presentation to the entire
Board. Chairman Peters asked that the list specify the groups that left due to quality
issues.
Eric noted we are also tracking our client evaluations and have noted positive comments
that are a direct result of the new carpeting.
Commissioner Nicholoff discussed the condition and perception of the pedway and noted
that it is the subliminal things that matter and while the visitors don't know who owns the
pedway, it has an effect on us. Eric commented that many of the things noted, caused
hesitation by the Red Hat Society that were legitimate concerns, and are some of the things
that we are facing in regard to our upgraded competition in Novi and Grand Rapids. Eric
asked Dirk to elaborate on comments he has heard on the floor; Dirk noted we need to be
more cutting edge in terms of our equipment and he mentioned the HVAC, computers, and
lighting issues which are weekly cascading issues.
Glenn Kirk suggested periodic tours of this facility by the Board, including the pedway, to
put us in the eyes of people who are first time visitors. Chairman Peters noted that it is a
good idea. Commissioner Butler noted that it is a good idea and one that has been
discussed before, and he suggested that the individuals that would be most impacted would
be those that make the decisions to get these things done because the Board can only
request. He suggested that the tour be made with the stake holders and partners that can
make an impact. Chairman Peters noted that she thought it was a good idea and asked
Councilmember Leeman and Mr. Kirk to convey that the Board would like to reach out to
our partners in the City because there is a lot at stake for the City within this building.
Mr. Kirk also noted that we have before Council a proposal for a$4 million bond issue to
do the kinds of things that they will look at and time is of the essence and a tour within the
next couple of weeks would help. Councilmember Leeman noted that he will coordinate a
tour with Eric and suggested a Thursday tour before/after Committee of the Whole.
At 8:58 a.m. Jim Ruff exited the meeting.
Finance Committee Chair Charlotte Sinadinos moved that the monthly financials for
Oldsmobile Park, the Lansing City Market and the Lansing Center for the period ending
July 31, 2005 be received as published and further that the monthly expenses for each
entity be approved. SUPPORT: Commissioner Jeffries; motion carried.
2. Audit Report: Finance Committee Chairman Sinadinos noted that this item will be
discussed once we have the final audit report which hopefully will be next month.
C. PRESIDENT & CEO'S REPORT: Eric Hart reported the following:
1. Mission Statement: Eric reviewed the mission statement draft as was included in the
packets. Eric noted the statement was developed by the Vice Presidents, Management
Staff(and Eric) and asked the Board for their recommendations.
LEFPA Board of Commissioners Meeting Minutes
Page 6
September 27, 2005
Chairman Peters commended Eric on behalf of the Board for taking the initiative in
bringing the Mission Statement before the Board; she asked the Board for their pleasure.
Discussion ensued regarding the omission of Common Ground which was clarified as an
activity. Commissioner Jeffries suggested "and" be added between local and regional.
After discussion, the Mission Statement was approved as submitted with the inclusion of
the word "and." Motion for approval of the Mission Statement as amended with the
addition of the word "and" was made by Commissioner Nicholoff; SECOND:
Commissioner Jeffries. After lengthy discussion regarding the order of the statement the
motion carried.
At 9:10 a.m. Mr. Glenn Kirk exited.
2. Finance Department: No report.
3. Operations Department: Scott Keith reported that an Operations Supervisor was hired
at the City Market; his name is Nick Hughes, he is a Ferris State graduate and
originally is from Escanaba.
4. Lansing Center: Linda noted the following:
• Event Highlights (July and August): Linda distributed the event highlight
information for the Board's review, which also included the upcoming events
such as Fright Night in October at Oldsmobile Park.
• Repeat Business: Spartan Chassis is returning after a three year hiatus, in 2006.
Michigan Veterinary Medical Association has re-booked for January 2009 and
2010.
• New Business: A proposal has been submitted for the Michigan Brewers Guild
for February 2006; a proposal was also submitted for the Greater Lansing
Business Monthly for a Holiday Party for December, 2005. A proposal was also
submitted for Spartan Chassis for 2007-10 as well as a proposal for Spartan
Stores to return in September, 2006.
5. Food and Beverage: Bill Grove noted we are coming out of our wedding season, and it
was a good season. We are now heading into the convention season and are looking
forward to a busy October.
D. PERSONNEL COMMITTEE: Chairman Tim Haggart reviewed the following items:
1. Drug/Alcohol Policy: Committee Chairman Haggart noted that the Committee met in July
and tentatively approved the draft drug/alcohol policy. Eric was asked by the Committee
to take the policy to the bargaining union representatives for their input. Eric reported a
meet and confer was held with the bargaining units and one group came back with
recommended changes, which were worked through with Steve Schultz. Chair Haggart
noted that the Personnel Committee is in agreement with the policy and moved that it be
implemented on November 1. SUPPORT: Commissioners McGuire, motion carried.
LEFPA Board of Commissioners Meeting Minutes
Page 7
September 27, 2005
At 9:15 a.m. Councilmember Leeman exited the meeting.
2. Salary Range Adjustments: The new salary range adjustments were distributed by
Marian Bryant. Committee Chairman Haggart noted that the new ranges were approved at
last month's meeting, but lacked a.public vote. Commissioner Haggart moved that the
salary range adjustments be adopted as presented. SECOND: Commissioner Butler,
motion carried. The salary ranges were returned to Marian.
E. LONG RANGE PLANNING COMMITTEE: Eric Hart noted that a meeting is scheduled for
9:00 a.m. on Thursday with the City Market Ad Hoc Committee.
F. CITY MARKET AD HOC COMMITTEE: No report.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Commissioner Charlotte Sinadinos: Commissioner Sinadinos noted we are in a "crisis
situation" and she noted that she is hoping that we can move forward and that she would like a
better time line on receiving the financing because everything today is affecting rentals two
years out. She noted she wished to reiterate the sense of urgency.
B. Commissioner Ellen Jeffries: Commissioner Jeffries shared 'Commissioner Sinadinos'
comments regarding the funding time frame. Per Chairman Peters' request, Eric will draft a
letter to Mr. Kirk on behalf of the Finance Committee requesting a time line.
C. Commissioner James Butler: Commissioner Butler noted that he agreed with Commissioner
Sinadinos regarding the sense of urgency and he also noted that we need to be pro-active in
regard to the Council members and we need to continue to address the issue with the
individuals within the City that can make things happen; he offered his to assist at any time.
Commissioner Butler also complimented Eric on an "outstanding job" which he is extremely
pleased with and he noted that he is hearing positive comments on the radio (today by Chris
Holman) and he also extended his appreciation of the updates Eric sends to the Board on a
weekly basis, which he noted he appreciates because it puts him in a defensible position.
D. Commissioner Sharon Peters: Commissioner Peters expressed her appreciation of the Board's
full engagement at today's meeting.
E. Eric Hart: Eric noted we do have good news with the return of Spartan Motor Chassis and the
booking of the Red Hat Society. He also reported that we have re-negotiated with MSU
Baseball and they will be coming back to the City; we were able to negotiate a higher revenue
position along with them picking up costs and a contract will be sent to the City for signing.
We are also coming to an agreement with the Diamond Classic on a rental agreement along
with sponsorships. The "Give Benefit" will be held next Saturday and they are looking for
volunteers. There will be 18 acts on two (2) stages and everything is donated with any
proceeds to be donated to the Hurricane Katrina Relief Fund.
VIII.OLD BUSINESS:
No report.
LEFPA Board of Commissioners Meeting Minutes
Page 8
September 27, 2005
IX. NEW BUSINESS:
No report.
At 9:28 a.m. a motion was made by Commissioner Haggart with a second by Commissioner Butler to
adjourn the meeting.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, OCTOBER 25,2005 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 FACILi PIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
AUGUST 23, 2005
MINUTES
At 8:08 a.m. 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, Tim Haggart, Charles Janssen, Ellen Jeffries,
Cyril McGuire, Sharon Peters, and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: Glenn Kirk (Ex-officio), Kris Nicholoff, Jim Ruff(Ex-Officio) and
Denise Wootton.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric.-Hart, Scott
Keith and Dirk Spillemaekers-Lansing Entertainment and Public Facilities Authority. Margaret Vroman,
— City of Lansing. -
C-;
c w `
At 8:08 a.m. Chairman Peters called the meeting to order.
-7y
III. A. CHAIRMAN'S REPORT:
1. LEPFA Board Reappointments: Chairman Peters noted that Kris Nicholo'ff aiud t'im
Haggart have been reappointed to the Board and she noted the Board's appred1thion of
their commitment to serve for another term.
2. Common Ground: Chairman Peters thanked the Board and Staff for their stellar work at
Common Ground and noted that it will be discussed later in the agenda.
3. Executive Session: Chairman Peters noted that the Board has been asked by the President
& CEO to enter into Executive Session to address a personnel matter. She noted that the
open meetings and public statues identify that personnel matters need to be identified in a
closed session. Chairman Peters requested roll call:
PRESENT : James W. Butler III, Tim Haggart, Charles Janssen, Ellen Jeffries, Cyril
McGuire, Sharon Peters, and Charlotte Sinadinos.
At 8:10 a.m. a call for a motion for adjournment of the regular meeting and then move into
special session was made. Chairman Peters noted to all non-voting members, public and
guests that they will handle the special session expeditiously and all non-voting members will
be excluded and the Board adjourned to Board Room 2.
At 8:32 a.m. Margaret Vroman exited.
At 8:55 a.m. Commissioner Haggart moved that the Board move out of Executive Session and
return to regular session. Second: Commissioner Sinadinos. Motion carried.
4. Personnel Committee Report: Committee Chairman Tim Haggart noted the purpose of
Executive Session was to discuss Eric's employment agreement, after lengthy discussion
the Board decided to extend his contract for one (1) year as presented and also make an
amendment to the thrift plan. Chair Haggart moved for the acceptance of those
recommendations. Second: Commissioner Butler, Motion carried.
IV. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda.
V. PUBLIC COMMENT: There was no public comment.
LEFPA Board of Commissioners Meeting Minutes
Page 2
August 23, 2005
VI. APPROVAL OF THE MINUTES OF JUNE 28, 2005: The minutes of June 28, 2005 were
adopted as presented. MOTION: Commissioner Tim Haggart SECOND: Commissioner
Charlotte Sinadinos. The motion carried.
V. REPORTS:
A. CHAIRMAN'S REPORT - REVISITED:
1. Committee Assignments: Chairman Peters reported the following assignments after
having discussed the appointments with the Board:
Finance Committee: Chair - Charlotte Sinadinos, Ellen Jeffries, and Kris
Nicholoff
Personnel Committee: Chair - Tim Haggart, Cyril McGuire, James Butler
Long Range Planning Committee: Chair - Charles Janssen, Tim Haggart and
Ellen Jeffries.
City Market Ad Hoc Committee: Members will be announced pending the
election of the City Market representative which will be officially noted next
week.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Period Ending June 30, 2005: Committee
Chairman Charlotte Sinadinos reviewed the financial statements, noting changes to the
financials are possible pending the results of the audit:
a. Lansing City Market: Income Statement: Building Rental for the current period is
$9,666 which exceeds the prior year's amount of$9,214 and the year to date building
rental is$59,882 which exceeds the amount of$51,400 for the prior year. Total Operating
Revenues for year to date are $81,208 compared to the prior year's amount of$73,458.
Operating Expenses- Salaries/Wages as well as Fringes/Related Costs are down compared
to the prior year. Utilities for year to date are $46,196, which exceeds the prior year's
amount of$42,458. Maintenance of Facilities for year to date is $17,308 compared to
$11,915 which is attributed to a major repair to the roof.
At 9:05 a.m. Commissioner Cyril McGuire exited the meeting.
Total Operating Expenses for the current period are$17,924 compared to the prior year's
amount of$15,709 and year to date Operating Expenses are $158,917 which exceeds the
prior year's year to date amount of $149,285. After taking into account the City
Contribution and Interest, we have a year to date loss of($6,772) compared to the prior
year's loss of($6,257).
Balance Sheet: Our total cash for the current year is$72,267 versus$31,131 for the prior
year. Unreserved Equity for the current year is $159,514 which is less than the prior
year's amount of$166,286.
LEFPA Board of Conunissioners Meeting Minutes
Page 3
August 23, 2005
Budget vs. Actual: Building Rental for year to date is better than budget by$5,082. Total
Operating Revenues for year to date are $81,208 compared to the budgeted amount of
$82,520 for a difference of($1,312). Under Operating Expenses - Salaries/Wages are
better than budget, and Utilities are higher than budget by ($7,181) for year to date.
Maintenance of Facilities is higher than budget due to the roof repair by ($7,758).
Total Operating Expenses for the current period are higher than budget by ($4,858) and
for year to date they are better than budget by $1,676. After taking into account the City
Contribution, Interest and the Transition Expenses we are higher than budget for year to
date by ($5,070).
b. Oldsmobile Park:
Income Statement: Event Revenues are$1,212(Diamond Classic which was not funded by
the City this year, and Michigan Mile). Event Expenses are $3,020 for an event loss of
($1,807)which was applied to the Event Development Fund. Under Operating Expenses-
Utilities for year to date are $70,692, which exceeds the prior year's amount of$61,173.
Maintenance of Facilities for year to date are $186,575, compared to the prior year's
amount of$18,945 due to the project at Oldsmobile Park and Concession/Catering are
$6,567. We also had a transfer from the City to compensate for the Oldsmobile Park
project in the amount of$182,233. We have a bottom line loss of($49,575) compared to
the prior year's loss of($30,034).
At 9:07 a.m. Commissioner Charles Janssen exited the meeting.
Balance Sheet: Total Cash for the current year is $31,795 exceeding the prior year's
amount of$16,012. The Net Event Development Fund is$67,629 compared to$70,154.
Unreserved Equity for the current year, which Chairman Sinadinos explained reflects the
cutting of our City Funding, is$31,525, compared to the prior year's amount of$86,187.
Budget versus Actual: Utilities are higher than budget by ($12,461) for year to date.
Maintenance of Facilities is higher than budget ($166,575) which is offset by the City's
Operating Transfer. Total Operating Expenses were higher than budget by($156,511)for
year to date. After taking into account the City Contribution, the Operating Transfer, and
the City Under Funding, we are higher than budget by ($53,575).
c. Lansing Center:
Income Statement: Building Rental for the current period is$35,272 compared to the prior
year's amount of $54,759 and for year to date the amount is $926,854 compared to
$1,020,000 for the prior year. Food and Beverage for year to date is$2,794,700 compared
to $2,666,000 for last year. Equipment Rental for year to date is $572,872 compared to
$717,944 for last year (which was a record year). Total Operating Revenues for the
current period are$221,996 compared to$308,728 for the prior year and for year to date
they are $4,746,749 compared to $4,959,010 for the prior year. Operating Expenses-
Salaries/Wages and Fringes/Related Costs are less than the prior year,due to the allocation
of funds to Oldsmobile Park.
LEFPA Board of Commissioners Meeting Minutes
Page 4
August 23, 2005
Utilities are up for year to date at$594,453 compared to last year's amount of$583,728.
Insurance/Bonding is down for year to date at$114,126 which is less than the prior year's
amount of$142,920. Total Operating Expenses for year to date are $5,546,989 which is
less than$5,683,539 for the prior year. After taking into account the City Contribution,
Interest, and Transition Expenses we have a year to date loss of($125,678) compared to
($193,065) for the prior year.
Balance Sheet: After totaling together Cash and Restricted Assets for the current year we
are at $418,000 compared to the prior year's total of $349,000. Unearned Revenue-
Advanced Rent for the current year is$332,716, which exceeds the prior year's amount of
$282,041. Also noted is the Act 99 Equipment Liability for the current year at$608,812
compared to $162,296 for the prior year. Chairman Sinadinos reminded the Board of the
importance of the Unreserved Equity, and for the current year the amount is $108,109
which is less than the prior year's amount of$233,787 due to the lowering of our funding
from the City.
Budget versus Actual: Building Rental is less than what was budgeted for year to date at
($63,145). Food and Beverage Revenues for year to date are better than budget by
$19,011 and Equipment Rental was better than budget by $68,372. Total Operating
Revenues for year to date are less than budget by ($24,254). Operating Expenses -
Salaries/Wages for year to date are better than budget due to the allocation. Total
Operating Expenses for year to date are better than budget by$28,514 and after taking into
account the City Contribution, Interest, City Under funding we have a loss compared to
budget of($58,988).
Finance Committee Chair Charlotte Sinadinos moved that the monthly financials for
Oldsmobile Park, the Lansing City Market and the Lansing Center for the period ending
June 30, 2005 be received as published and further that the monthly expenses for each
entity be approved. SUPPORT: Commissioner Haggart; motion carried.
2. Bad Debt: Finance Committee Chairman Sinadinos noted that we already have allotted
bad debt for CamTre and we need to add to the amount. The account was $59,926 and
the client was to pay $30,000 in installments of$2,500 per month with the balance of
the account written off with Board approval in the amount of$29,926. Three $2,500
payments were made and they are now in arrears for three months (May, June and
July) and it was recommended that the balance of the account$22,410 be referred to
the allowance for bad debt. Chairman Sinadinos noted this item was discussed with
Eric Hart, and approved by the Finance Committee; furthermore she requested that the
Board recognize this allowance for bad debt. Motion: Commissioner Sinadinos
Second: Commissioner Jeffries, motion carried.
3. Budget Revision: Eric highlighted in the Financial Report that we are out of money and
currently have $100,000. He explained that everyone needs to understand our status
and he also noted that the City's Finance Department did not have a representative at
the LEPFA Finance Committee meeting yesterday and/or at today's meeting. He
encouraged all present to begin making phone calls to the administration to inform them
of the severity of our status and that a $125,000 loss means we are broke. Eric stated
that he wanted to make certain the Board is aware of the issue.
LEFPA Board of Commissioners Meeting Minutes
Page 5
August 23, 2005
Chairman Peters noted that the issue is that by moving into our fund balance, which is
not totally flat broke now, but would be if we were to experience another year like this
past year. She noted that our CEO is making it very clear that we need to watch this
and that there has been a lot of discovery and change in our operation and within the
City and the upshot is that our fund balance is not what we want for a healthy
operation. She expressed her appreciation of Eric's reinforcing the issue.
Commissioner Butler asked Eric to elaborate on what he would like the Board to
discuss with the Mayor and Council. Eric clarified that he would like the essence to go
to the Mayor and Councilmembers that he feels that they do not understand the picture
we have painted in that they still feel we continue to underestimate our revenues. In
2004 we lost$193,000 at the Lansing Center, in 2005 we lost$125,000 at the Lansing
Center, and Oldsmobile Park also lost funding which has impacted the fund balances as
established by the previous administration through the subsidies which allowed for a
cash flow. He noted we are now out of money. The budget has been revised and we
have recognized all the savings we can and it also requires that we do not fill a few
positions in order to avoid layoffs. He also noted that in the past the under funding was
reflected and we can no longer do that, along with the fact that we don't get credit for
depreciation and if they come back next year with the same approach to the budget, we
will have to cut essential services such as Fright Night (which lost $17,000 last year)
and events at Oldsmobile Park despite the politicians warning that we need to keep all
of our events intact.
Finance Committee Chairman Sinadinos noted in light of the City's cut in funding we
revisited the budget and Marian Bryant reviewed the changes for the Board's
consideration and approval as follows:
• City Market: The previously approved budget was for $73,809 and it was
reduced to $45,857. The reduction was attributed to the vacancy and
restructuring of the City Market Managers position which allowed for a
reduction in Salaries/Wages and Fringe/Related costs. A slight reduction in
building rent was also noted due to the vacancy of Schnitz Deli. Commissioner
Butler clarified that the reduction is $30,000; Marian noted the funds from the
City for the Market and the Lansing Center totaled $515,000. Chairman Peters
noted the Finance Committee reviewed all of the supporting documents in detail
as prepared by Eric and Marian in support of the numbers and they have been
very thorough in their careful consideration of the budget.
• Oldsmobile Park: This year the City determined that they no longer wanted the
allocation that we have had in place since 1998/99 where we allocated a portion
of management salaries for the management of the Oldsmobile Park events.
They added $50,000 to the Lansing Center and it is reflected in that budget. A
portion of a Maintenance position is reflected in the proposed Salaries/Wages
line item for Oldsmobile Park. Utilities were also increased; the Professional
Services included a contract for Maintenance of the Turf; and Insurance/Bonding
decreased at all of the facilities. Total Operating Expenses are $230,000 and
Revenues are projected at$230,300 (including the revenues from the ATM
machines).
LEFPA Board of Commissioners Meeting Minutes
Page 6
August 23, 2005
• Lansing Center: Marian noted there is little change in revenue (a $2,500
increase). Staff changes were incorporated to include vacancies, and there is a
reduction in Fringes which is associated with the staff vacancies. Utilities were
increased. Insurance and Bonding is reduced; the Food and Beverage line item
decreased due to vacancies. Total expenses are $5,558,000 compared to the
original amount of$5,673,000. Funding for the Lansing Center is $469,000 and
$50,000 for the allocation and $60,000 is the money afforded us by the City for
Act 99. The total is $579,000 compared to the expected loss of$579,121.
Marian clarified that the numbers at the bottom of the page are what the City has
agreed to give us.
Chairman Peters asked for a motion to approve the submitted changes to the
budget; Motion: Commissioner Sinadinos Second: Commissioner Jeffries,
motion unanimously approved. Chairman Peters noted it was a sobering
recognition, and she also commended the staff for being proactive in taking
affirmative steps to put us together in terms of the financial position. She also
re-enforced Eric's request of the Board to not wait for another budget to begin
our dialog with our partners at the City post haste. She also noted that it is of
importance to note that we did not have their participation at today's meeting or
at the Finance Committee meeting. Chairman Peters thanked Finance
Committee Chair Charlotte Sinadinos, Finance Committee members and
members of the full board, as well as Marian and Eric.
C. PRESIDENT & CEO'S REPORT: Eric Hart reported the following:
1. Carpet Update: Eric noted that the carpet has been installed in the office and we moved
the front office around for a more professional look.
2. City Market: Eric noted restructuring is beginning at the Market and he has sent
correspondence to the Board regarding the restructuring, planning, savings and other
issues. September 14 a meeting is scheduled with the LEPFA Committee, Vendors, the
Administration, and City Council to begin strategic planning for the Market and to discuss
the on-going issues. We are looking at various issues with the departure of the City
Market Manager e.g. Saturday business, new vendors, and there is an interested party in
the food court space.
3. Lu nug_is Agreement: Eric noted he has shared a term sheet and a discussion of the
negations. He noted the City Finance Director felt he could meet everything within the
agreement and they are meeting with the Committee of the Whole on Thursday; Eric
invited Board members to attend. He noted he would be happy to discuss the item further
as needed.
4. Common Ground: It appears that we will be in the black this year and we had significant
savings this year in terms of the insurance and additional cuts were made in a few areas
which allowed significant savings. He noted next year there will be additional cuts which
will be shared with the Board (the Oasis and the Uncommon Club formats will change)
prior to being made. The entire program including the use of Common Cents will be
reviewed.
LEFPA Board of Commissioners Meeting Minutes
Page 7
August 23, 2005
Chairman Peters noted that the fact that we are in the black is very good, and given the
challenges we have had over the past year, we have asked for a lot of giving from the
staff this year. She also noted that the Board recognizes and gives commendation to our
staff for going above and beyond to ensure the success of Common Ground that we have
experienced thus far.
5. Food and Beverage: Bill Grove noted that we have been keeping busy on the weekends
with lots of weddings (averaging two weddings per Saturday). He noted that they have
been operating without a Banquet Manager since May due to major surgery and today is
her first day back.
6. Lansing City Market: Linda noted a City Market Vendors meeting was held on August 10
with the vendors to discuss the transition. Last Saturday was the first day for "Bruce's
Fish Market," which is a new vendor and he is located on the east side.
7. Lansing Center: Linda noted the following fiscal year end information: we held 725
events, with 200,000 attendees, equating to 15,000 room nights for an estimated economic
impact of over $6,500,000.
• Event Highlights (July and August): Linda distributed the event highlight
information for the Board's review, which also included the upcoming events
such as Fright Night at October at Oldsmobile Park.
• Potential New Business: A proposal has been submitted to the Greater Lansing
Association of Realtors for October 2007; as well as North Central Association in
October 2007; a proposal has been submitted to CMT Health and Fitness Expo in
2006; a bid has been submitted to the Million More Movement Family Health
Rally in the fall; and Michigan Quilt Network for 2009 through 2011.
• Future Business: We continue to work confirm repeat business and Sales
continues to good job in maintaining our clients. Linda noted letters were sent to
our clients regarding the Capital Loop Beautification process independently and in
conjunction with the Radisson. The letter informs them of the project and the
web site; we provided the clients with six moths notice.
7. Operations Department: The carpet has been replaced and we are near completion of
the HVAC project. Scott noted he has received a report from HNTB regarding the
building and the good news is that the building is not moving (he has copies of the
report for those who would like one); we do have some small repairs to make, but
there are no major structural issues. September 15 the new turf replacement process
will begin at Oldsmobile Park.
8. Finance Department: Marian reported that the ATMs are doing well.
At 9:50 a.m. Eric Hart exited the meeting.
LEFPA Board of Commissioners Meeting Minutes
Page 8
August 23, 2005
D. PERSONNEL COMMITTEE: Chairman Tim Haggart noted that committee met on July 28
and discussed new salary ranges (they hadn't been updated since 2000) to bring them in line
with the industry. A Drug/Alcohol policy was discussed and Eric continues to work on it with
our attorney and the Union Reps. Job descriptions are being updated as well. Personnel issues
were discussed as well as Employee Incentive Programs to include the LEPFA Bucks Program
where employees can use LEPFA bucks to purchase items; he is also developing an Employee
of the Month Program and a Suggestion Box program and they will be implemented as they are
developed. Chairman Peters noted our employees have been very giving in terms of their time
and in their pocketbooks as well, and she indicated that any way we can address, support and
recognize our employees in this difficult budget time is very important.
E. LONG RANGE PLANNING COMMITTEE: No report.
F. CITY MARKET AD HOC COMMITTEE: Chairman Ellen Jeffries noted that a memo was
sent regarding a September 14 at 1:00 p.m. meeting of the Committee regarding a planning
session and she noted all Board members were welcome to attend. Linda Frederickson clarified
that the meeting was for Council members, LEPFA Board members and vendors and it will be
a roundtable and working session to develop recommendations on moving forward with the
Market. She noted they will be considering all aspects of the Market including operations.
Chairman Peters asked if the public has been invited to attend and in particular the Lansing
State Journal. Linda noted not for this session; she did note that she did attend a Vendors'
meeting and they are trying to resurrect the "Friends of the City Market" and they had a
meeting last Wednesday that Linda, Scott and Eric attended. The meeting took place with the
Vendors and Pete Bocheff and they decided to make a stronger Vendors' Association before
building on the "Friends of the Market." Chairman Peters noted that she understood why it
would not be feasible to invite the public at this time and why we have opted to keep the core
as it is and not invite the media. Linda noted that Eric also suggested inviting Jim Bingham
from Michigan State University. Chairman Peters will discuss with Eric ways of moving
forward so that we are proactive rather than reactive with the media in regard to the Market;
she noted that the strategy is truly a proactive approach. Chairman Butler questioned who and
how those from the City Council were invited. Linda clarified that City Councilmembers who
attended the last Ad Committee meeting were invited (Geneva Smith, Carol Wood, Sandy
Allen, Harold Leeman and David Wiener). Commissioner Butler noted that nobody appears to
know what's happening, and the date selected is a bad day for LEPFA's Ad Hoc Chair.
Chairman Peters noted discussion is needed because we will not have appropriate Board
membership present and we need to make sure that Council are involved as well.
Commissioner Butler clarified the reason for his question is that we need friends that support
LEPFA plus the City Market. He also asked if any of the financial individual such as Glenn
Kirk will attend because they make the financial decisions. Chairman Peters noted that
Commissioner Butler is expressing some good concerns regarding the September 14 meeting in
making sure that the right people are there and she asked Linda to let Eric know that the Chair
of the Ad Hoc Committee is unable to attend and Sharon Peters will not be able to attend; and
we need to be able to insure LEPFA Board participation in order to accomplish what the
session is meant to accomplish. She thanked Commissioner Butler for his comments and asked
that Linda revisit this discussion with the Eric so that we can assure City Council members
participation as well.
LEFPA Board of Commissioners Meeting Minutes
Page 9
August 23, 2005
She noted if the process only involves the vendors, we still need to assure that there is a
meeting in place with the Council and the Board and that input needs to be taken up with the
Council calendars.
VI. COMMISSIONER AND STAFF COMMENTS:
A. Linda Frederickson: Linda noted LEFPA employee Jeff Pluff has returned to work part-time
and will be on board full-time next week.
B. Commissioner Ellen Jeffries: Commissioner Jeffries shared a copy of a positive Lansing State
Journal article on Common Ground thanking the volunteers and staff. Commissioner Jeffries
noted that she wanted to thank Heidi again and Marian and everyone from the staff and Board
that was at Common Ground. She noted that some of the volunteers work so hard it's
unbelievable and they put in many shifts. Chairman Peters thanked Commissioner Jeffries for
the copy of the article.
At 10:05 a.m. Commissioner Ellen Jeffries exited the meeting.
C. Commissioner Tim Haggart: Commissioner Haggart noted that he wished to commend
everyone on Common Ground especially Eric for his first year which he hit the ground
running and Scott as well. He thanked everyone for their hard work.
D. Heidi Brown: Heidi expressed her thanks to Commissioner Ellen Jeffries for volunteering at
the Information Desk.
E. Commissioner Sharon Peters: Commissioner Peters thanked everyone for their support and the
Board's participation in talking up the event, and Eric for his baptism by fire. She also
thanked the Board, staff and visitors for their patience today because the meeting went longer
due to the Executive Session.
VIII.OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 10:06 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, SEPTEMBER 27, 2005 AT
5:00 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 25, 2005
MINUTES
At 8:05 a.m. 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), Cyril McGuire, Sharon Peters, Jim Ruff(Ex-Officio) and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: John Decker, Tim Haggart, and Kris Nicholoff.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric Hart, Scott
Keith and John McPherson - Lansing Entertainment and Public Facilities Authority.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. Motion was
made to approve the agenda MOTION: Commissioner Butler; SECOND: Commissioner
Janssen; motion carried.
IV. PUBLIC COMMENT: There was no public comment.
V. APPROVAL OF THE MINUTES OF SEPTEMBER 27, 2005: The minutes of September 27,
2005 were adopted as presented. MOTION: Commissioner Butler SECOND: Commissioner
McGuire; motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: No report.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Periods Ending August 31, 2005 and September
30, 2005: Committee Chairman Charlotte Sinadinos reviewed the financial statements
as follows:
a. Lansing City Market August 31, 2005: Income Statement: Operating Revenue -
Building Rental for the current period is $4,250 compared to $5,368 for last year and for
year to date the figure is$8,801 compared to$11,093 for the prior year. Under Operating
Expenses— Salaries/Wages for year to date are $7,785 compared to the prior year's
$7,728. Utilities are higher for year to date at$7,061 compared to the prior year's amount
of$5,916. Total Operating Expenses for the current period are $10,448 compared to the
prior year's amount of $11,889 and year to date Operating Expenses are $19,171
compared to $21,195 for an operating loss for year to date of($10,299) compared to the
prior years loss of($10,101). After taking into account the City Contribution and Interest,
we have a loss of($212.64) compared to $5,749 for the prior year.
Balance Sheet: Our total cash for the current year is$23,368 versus$41,535 for the prior
year. Unreserved Equity for the current year is $158,691 which is less than the prior
year's amount of$172,035.
Budget vs. Actual: Total Operating Revenues for year to date are$8,871 compared to the
budgeted amount of$9,500 for a difference of($628.34). Under Operating Expenses—
Salaries/Wages are higher than budget by ($1,284).
LEPFA Board of Commissioners Meeting
Page 2
October 25, 2005
Utilities are higher than budget by($559). Total Operating Expenses for the current period
are higher than budget by ($70.64) and for year to date are better than budget by $177.
After netting the expenses against revenues, we are higher than budget by ($450). After
taking into account the City Contribution and Interest we are higher than budget by($476).
b. Oldsmobile Park August 31,2005: Income Statement: Event Revenues for the current
period are$3,266, which consists of Park after Dark, etc. Event Expenses for the current
period are $11,099 for an event loss of ($733) which was deducted from the Event
Development Fund. Under Operating Expenses- Salaries/Wages and Fringes and Related
Costs are down due to the change in the allocation. Utilities for year to date are $10,446
which exceeds the prior year's amount of$9,793. Operating Expenses for the current year
are$14,130 compared to$24,294 for the prior year and year to date the figure is$27,357
compared to$43,789. The bottom line year to date is$11,936 compared to$3,251 for the
prior year.
Balance Sheet: The total cash for the current year is$262,494 compared to $223,084 for
the prior year. The Net Event Development Fund for the current year is $58,946
compared to$71,646 for the prior year. Unreserved Equity for the current year is$19,342
compared to $90,930 for last year.
At 9:20 a.m. Glenn Kirk entered the meeting.
Budget versus Actual: Salaries/Wages were better than budget for year to date by$1,037.
Utilities are higher than budget for year to date by ($14.57). Insurance/Bonding is better
than budget at $238. Total Operating Expenses for the current period were better than
budget by$5,294 and for year to date they are better than budget by$8,310. After taking
into account the City Contribution and Interest we are better than budget for year to date
by $8,671.
c. Lansing Center August 31,2005: Income Statement: Building Rental is down for the
current period at$30,447 compared to the prior year's amount of$36,070 and for year to
date building rental is at$45,292 compared to $49,730. Food and Beverage is down for
the current period at$117,428 compared to $144,543 and for year to date the amount is
$179,465 compared to $239,614. Total Operating Revenues for the current period are
$180,630 compared to $214,878 and for year to date the figure is $263,734 compared to
$355,566. Operating Expenses- Salaries/Wages for year to date are $187,560 versus
$240,517 for the prior year. Utilities are down for year to date at $85,952 compared to
$96,458. Food and Beverage expense for year to date is$172,015 compared to $198,279
for the prior year. Total Operating Expenses are $344,954 compared to the prior year's
amount of$444,625 and the year to date expenses are$608,751 compared to$755,032 for
the prior year. We have a loss of($164,323) compared to last year's loss of($229,747)
and for year to date the loss is ($345,017) compared to last year's amount of($399,465).
After taking into account the City Contribution and Interest we have a loss year to date
of($229,608) compared to ($258,568) for the previous year.
Balance Sheet: Cash and Cash Equivalents for the current year are$256,000 compared to
$136,162 for the prior year. Unearned Revenue - Advance Rent for the current year is
$379,240 compared to $385,270 which is an indicator of future business. Unreserved
Equity is ($156,195) compared to the prior year's amount of($24,780).
LEPFA Board of Commissioners Meeting
Page 3
October 25, 2005
Eric noted Unreserved Equity will further deteriorate in September because we have no
cash reserves. The reason for the decrease in September is due to the mix of events (little
food and beverage) and ancillary revenues are off and two major events moved(State Bar
to Grand Rapids and the other event has moved to a different month).
Budget versus Actual: Building Rental for year to date is better than budget by$4,752 and
Chair Sinadinos noted that most of the other ancillary items are less than budget. Bottom
line, Total Operating Revenues are better than budget by $532. Under Operating
Expenses, Utilities are better than budget by $16,397, due to lost business. Total
Operating Expenses are $608,751 compared to the budgeted amount of$751,223, which
leaves us better than budget by$142,471. After taking into account the City Contribution
and Interest we are under budget by $143,908.
d. Lansing City Market September 30,2005: Income Statement: Total Building Rental
for the current period is $4,025 versus $5,090 for the prior year; the year to date amount
is $12,931 compared to $16,218 for the prior year's year to date, and is attributed to the
loss of Schnitz Deli. Operating Expenses- Salaries/Wages are down at$8,959 compared
to $11,255 for the prior year. Utilities for year to date are up at $9,990 compared to
$8,916 for the prior year. Total Operating Expenses for year to date are $25,323
compared to the prior year's expenses of $30,286 for an operating loss year to date of
($12,391) compared to last year's loss of($14,067). After taking into account the City
----- Contribution-and Interest,, we-have-an income-of-$2,-739-compared to-the-prior year's -
income of$9,712.
Balance Sheet: The cash position for the current year is $20,837 which is down from the
prior year's amount of$45, 653. Accounts Receivable are $158,566 which exceeds the
prior year's amount of $145,893. Unreserved Equity for the current year is $161,643
compared to $175,999.
Budget vs. Actual: Building Rental for the current period is down compared to budget at
($269) and for year to date the amount is less than budget by ($897). Salaries/Wages are
better than budget by$530 and utilities are higher than budget by ($237). Total Operating
Expenses are better than budget by$3,252 and for year to date they are better than budget
by$3,429. After taking into account the City Contribution and Interest we are better than
budget by $2,493 for year to date.
e. Oldsmobile Park September 30, 2005: Income Statement: There was no Event
Revenue during September and last year there were several movies that took place in
September thus the revenue was$11,409 last year. Utilities were higher for year to date at
$15,088 compared to $14,879 for last year. Operating Expenses for year to date are
$43,553 compared to $61,000 for the prior year. Bottom line year to date is $16,289
compared to the prior year's amount of$9,605.
Balance Sheet: Cash is up at$260,604 compared to the prior year's amount of$158,898.
The Net Event Development Fund is down for the current year at $58,603 compared to
$75,532 for the prior year. Unreserved Equity for the current year is $23,352 compared
to the prior year's amount of$101,171.
LEPFA Board of Commissioners Meeting
Page 4
October 25, 2005
Budget vs. Actual: Operating Expenses- Salaries/Wages are better than budget by$641
for year to date. Utilities are better than budget by $1,607 for year to date. Total
Operating Expenses for the current period are better than budget by$9,683 and for year to
date they are better than budget by $17,993. After taking into account the City
Contribution and Interest we are better than budget for year to date by $19,311.
f. Lansing Center September 30, 2005: Income Statement: Building Rental for the
current period is$29,250 compared to the prior year's current period of$50,147; and for
year to date the figure is $74,542 compared to $99,877. Food and Beverage for the
current period is down at $127,664 compared to $273,070 for last year and for year to
date the figures are $307,130 compared to $512,684. Total Operating Revenues for the
current period are $197,936 compared to $418,419 for last year and for year to date
revenues are $461,671 compared to $773,986 for the prior year. Operating Expenses-
Salaries/Wages/Fringe Benefits are down for year to date; Utilities are less than the prior
year at$131,715 compared to $151,454. Insurance/Bonding is down at$21,156 for year
to date compared to$26,722 for the prior year. Total Operating Expenses for year to date
are $1,032,000 compared to $1,210,000 for the prior year for a loss year to date of
($570,801)compared to the prior year's loss of($436,057). After taking into account the
City Contribution and Interest we have a year to date loss of($398,216) compared to the
prior year's loss of($224,729).
- -Balance-Sheet--Cash-and-Cash Equivalents-total-for-the-current-year-are-$223-,-515
compared to the prior year's amount of$90,479. Unreserved Equity for the current year
is ($324,803) compared to $9,057 for the prior year.
Budget vs. Actual: Building Rental for year to date is less than budget by($17,937). Food
and Beverage is less than budget by ($156,872) and most of the Ancillary Revenues are
quite a bit less than budget. Total Operating Revenues are $461,671 for year to date
compared to the budgeted amount of$732,688 for Operating Revenues less than budget in
the amount of($271,016). Operating Expenses- Salaries/Wages are better than budget;
Utilities are better than budget; and Operating Expenses for year to date are better than
budget by $188,455. After netting revenues against expenses, we have a loss for year to
date compared to budget of($82,560) and after taking into account the City Contribution
and Interest we have a loss of($81,732) less than budget for year to date.
Commissioner Butler questioned the change in Accounts Receivable. It was explained that
it was a journal entry change. Glenn Kirk questioned Food and Beverage product costs for
this year and questioned the differential. Marian noted it is not just product costs, it also
includes labor, and when the revenue is down, the relationship is not as expected for
typical revenues/expenses for a month where there is more activity. Bill Grove noted it
also includes payroll and the actual September food costs were in the 20% range,but when
it comes to product it is not a ltol ratio and the reuse factor is not as great. He also noted
most of September is revenue and this year September was based on wedding revenues
which is more costly to produce. Marian explained that the Food and Beverage line item
also includes many costs such as labor, insurance, replacement costs, depreciation,
laundry, etc. and not just product costs. Eric emphasized that wedding packages are at
low margins and the issue is that we can't charge rent and most of our clientele are in the
$20 range and our returns are under 10% and in August and September weddings were our
base.
LEPFA Board of Commissioners Meeting
Page 5
October 25, 2005
Glenn Kirk asked for a breakdown for Food and Beverage in the future; Eric noted this
line item is currently displayed this way due to the prior use of a separate company.
Commissioner Janssen asked if the revenue lost is comparable to the greater Lansing area
as confirmed by the CVB, or are we losing events to other facilities and have we analyzed
the loss, e.g. is it the economy or shift in facilities. Eric noted the big loss is the State Bar
of Michigan to Grand Rapids and the Governors' Educational Summit move to March.
Chairman Peters asked if we have brought in any events to counterbalance the change;
Eric noted our patterns this year are much more limited than 2007 and we have picked up
four major events. Linda Frederickson noted that she attends the monthly "Team Lansing"
meetings hosted by the CVB, with the hoteliers and the Kellogg Center has noted that this
September was their worst September on record, and the other partners also indicated that
they did not have a good September and the Radisson has reflected the same. Eric also
noted that it doesn't help that the CVB is in transition and this weekend there were three
Grand Rapids advertisements in the Lansing State Journal targeting local associations.
Commissioner Jeffries noted the issue of lost events also was discussed in the Finance
Committee meeting and they asked how hard it would be to track where the events have
moved. Commissioner Janssen noted the State Bar has also moved to teleconferencing,
which Eric noted is the industry trend and is one area that our building is lagging in, and
that we don't have the same infrastructure for teleconferencing that a John Henry Center
or a Kellogg Center offers. Eric is currently in discussions with the City regarding long
,turn advancem�r�t p-otentials in this area fo�he-Lansing-the and he clarified-that to
attract new business it is difficult with our technology and the economy is not helping.
Commissioner Butler asked if we have followed up with State Bar on their departure;
Linda noted we have followed up with them and it was a Board decision. Eric also
explained that our fixed costs are so high because we hold all LEPFA staff at the Lansing
Center high despite the staff working on events such as Fright Night, Common Ground,
etc.
2. Audit Report: Finance Committee Chairman Sinadinos noted that this item will be
discussed once we have received the adjusted audit report next month.
Eric thanked Glenn Kirk and his staff for their assistance with the depreciation.
Finance Committee Chair Charlotte Sinadinos moved that the monthly financials for
Oldsmobile Park, the Lansing City Market and the Lansing Center for the periods ending
August 31, 2005 and September 30, 2005 be received as published and further that the
monthly expenses for each entity be approved. SUPPORT: Commissioner Jeffries;
motion carried.
C. PRESIDENT & CEO'S REPORT: Eric Hart reported the following:
1. Ancillary Event Production: Eric noted that the movies are cyclical and the cost of renting
is increasing and we continue to dwindle down the Event Development Fund and in
addition to the losses at the Lansing Center we need to determine where we can cut costs
soon unless the economy turns around.
LEPFA Board of Commissioners Meeting
Page 6
October 25, 2005
The reality is that our present economic condition is considerably below zero which
means we are operating in a negative equity position which at some point the State will
require that the City step in and draft a bail out plan. He noted we have been discussing
these concerns with the City. Eric noted LEPFA Sales staff is developing future business
reports and hopefully the CVB will have someone on board for their Associations group to
help start plugging holes (they recently lost their staff member to the Detroit Marriott
property, which is a concern). Eric will continue to discuss events such as Fright Night
(attendance was down for Fright Night)pending their financial outcomes, noting we may
be able to salvage some events, and sponsorships will be a consideration as they pertain to
events such as Diamond Classic.
Discussions and an agreement are underway with MSU and the Lugnuts.
2. Finance Department: Eric noted we had a departure of staff in the Finance Department
and in lieu of filling that position; we are reorganizing that department and are taking
responsibilities and spreading them out between department members. We are doing
the same in the Operations Department.
Eric also thanked everyone for their understanding of his absences in the last week.
Marian noted immediately following the Board meeting today we will be hosting our
- - —first-Employee-ofthe-JVl-onth-presentation,—which-is-a-new-incentive-program-that-Eric
brought on board and she welcomed the Board to attend at 10:00 a.m. today in room
101. Marian noted she will be on leave for about four weeks beginning October 31.
Finance Committee Chair Sinadinos noted in light of Marian's absence and the new
staff member on board, financials may be postponed next month. Chairman Peters
indicated that it is good for the Board to know and asked for their understanding.
3. Operations Department: Scott Keith reported that they are restructuring. Also HNTB
will make a presentation regarding the structural issues under the building today.
4. Food and Beverage: Bill Grove noted October will be a strong month, it maybe short
of budget, but will be one of the stronger months we have had as has been the case in
the past, due to the mix of events such as Mollema, School Boards, etc.
5. Lansing Center: Linda Frederickson reported that in the month of September we hosted
49 events, which equated to 55 event days, with attendance of 12,000 and 400 hotel
rooms. In comparison to September 2004 we were up in event days (52), but we lost
revenue, attendance and hotel rooms, which illustrates the impact of the mix of events.
• Event Highlights (July and August): Linda distributed the event highlight
information for the Board's review, which also included upcoming events such as
Silver Bells and Fright Night at Oldsmobile Park.
• Repeat Business: A contract has been issued to Spartan Stores for their return in
2005. We rebooked the Great Lakes Ice Cream Show for 2007 as well as Hearts
at Home; J. Mollema is returning in 2007 and we will issue a contract for them
for 2008.
LEPFA Board of Commissioners Meeting
Page 7
October 25, 2005
Government Technology - Michigan Digital Government Summit has been
booked for 2006; and the City of Lansing Mayor's Youth Diversity Conference
has rebooked for March.
• New Business: A proposal has been submitted for the Michigan Association of
Community Mental Health Boards for a September conference; a proposal has
been submitted for the Michigan Quilt Network conference in September 2008. A
proposal has been submitted for the Michigan Small Business Technology for
2007. A three year proposal was also submitted to the Michigan Association of
Drug Court Professionals (2007-9); Society of Canary and Finch Breeders in
conjunction with the Radisson received a proposal and a proposal was submitted
to the Republican Party for an event in August, 2006.
• Lansing City Market: Linda noted an agreement has been finalized with "One
Chef Cafe" who has signed his lease as of last week and will take possession on
Tuesday, November 1 and he hopes to be up and operating the week of Silver
Bells. Jonathon Hughes is the owner, and he has a breakfast and lunch menu and
will have a daily special and his operation is similar to the old caf6 style. Interest
has also been received from "Le Chef Creole" for the caf6 space. Linda noted
the City Market strategic planning session is scheduled for tomorrow.
- - - - - - - - -- -- e-LEFPA Well Sits:-Linda note-d a r-equiE�-st for proposal is-going out-to ten web-
site developers including the City of Lansing and the proposals are due back
November 18. We are also re-working the LEFPA web site.
• Common Ground: We will be renewing Common Card holders every 7 days in
October and November and we are also working in renewing Uncommon Club
members (their rate will increase).
• Give Event: Linda noted it took place at Adado Riverfront Park on October 8
and we will make a donation.
Commissioner Butler asked what is it that we do in terms of Silver Bells. Linda
responded that we offer complimentary space at the Lansing Center and hand out
cider and cookies along with live entertainment. Santa is at the City Market
following the parade and they have live reindeer, music and complimentary
doughnuts and cider which are provided by Silver Bells. Commissioner Butler
noted that Sue Mills is retiring.
At 9:17 a.m. Jim Ruff exited the meeting.
Discussion ensued regarding the submission of proposals for business and the final
determination. Linda noted generally we present in conjunction with the CVB and
the Radisson. Commissioner Butler expressed his concerns about the CVB as a
Lansing Center "marketing arm." Eric noted we continue to meet with the CVB
on various levels and communication needs to continue with the Boards and staff
until the CVB is up and running again at full speed. Linda noted that all three
staffs meet monthly and also attend the monthly hospitality meeting which is
sponsored by the CVB as well.
LEPFA Board of Commissioners Meeting
Page 8
October 25, 2005
Linda noted that the CVB has implemented a new software system and communication
continues with them on an on-going basis. Chairman Peters noted that it would be
beneficial if Board members such as James Butler discussed our concerns with the
CVB.
Glenn Kirk noted that he has often wondered why we don't have a member of the
CVB at this meeting, even as an ex-officio member, because we are married to
their efforts and they are married to our efforts, and it appeared to him that we
should be cross-pollinating boards somehow. Chairman Peters explained that about
a year ago there was a tremendous strain between the two groups; but with the new
leadership between LEFPA and the CVB, as well as through the efforts of both
Boards, there has been a movement toward a much stronger way of operating and
our joint Board officers have been meeting quarterly and we have been establishing
relationships and have seen a tremendous turnaround in Eric's relationship with
Lee. Eric noted they will look at this issue as an option as an ex-officio member in
conjunction with the Hotel/Motel tax discussions with the county; however in lieu
of the airport issues, it will take political support. Eric noted he has had on-going
discussions with the county leadership; however we are capped at the amount we
can capture from the hotel/motel funding. Commissioner Butler also noted that it
should also be vice versa in that we have a representative on the CVB's Board.
- -- - - --- - -- --- -
--Eric note he will discuss this matter wit11 Lee;however,-changing our Board- - -
composition would include a change in our articles/bylaws and appointees are
recommended by the Mayor.
6. Food and Beverage: Bill Grove noted we are coming out of our wedding season, and it
was a good season. We are now heading into the convention season and are looking
forward to a busy October.
D. PERSONNEL COMMITTEE:
1. Drug/Alcohol Policy: Eric Hart noted the Drug Policy needed to be modified to say "all
full-time employees" instead of"all employees" in regard to drug testing. The policy was
distributed for information purposes, with the change noted and will be acted on at next
month's meeting when the Committee Chairman is present.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Janssen noted at the last
meeting there was discussion about the Entertainment District and it was determined that the
Committee would not meet until after year end.
F. CITY MARKET AD HOC COMMITTEE: Committee Chairman Ellen Jeffries reported that
a meeting is scheduled for tomorrow and Kris Nicholoff will attend the meeting as Chairman
Jeffries will be unable to attend. Eric Hart noted that tomorrow's session is about getting all
parties with a vested interested together and discussing a strategy for moving forward together
positively. Eric indicated that the plan is to shut down the east half of the Market beginning
December 26 due to the high utility costs and limited occupancy. All vendors have indicated
that they will be willing to move over except for one; the eastside doorway will remain open
with barriers. Eric also noted that he has been approached by a developer and they plan to
develop a presentation to the City.
LEPFA Board of Commissioners Meeting
Page 9
October 25, 2005
VII. COMMISSIONER AND STAFF COMMENTS:
A. Commissioner James Butler: Commissioner Butler asked about the City Council tour. Eric
reported that many of the Councilmembers were unaware of the deterioration(ceilings, floor
boxes, etc.), but they now understand our needs and our present financial dilemma leads
credence to the repairs in that if we continue to lose business because of the facilities, our
financial picture will continue in a bad light. Eric noted five councilmembers were on hand and
LEFPA Board members Nicholoff and Haggart attended as well. Glenn Kirk noted that they
have prepared a refinancing plan for a bond issue which saves money in refinancing; it will be
a $4 million bond for refinancing and the resolutions are ready and the conversations will
begin this Thursday at the Committee of the Whole meeting. Board members were encouraged
to attend. Eric noted LEFPA has already presented Council with $6 million in repairs
including heating and lighting. The $4 million repairs have already been presented in the five
year capital plan as required by Council in conjunction with the budget process.
B. Commissioner Charles Janssen: Commissioner Janssen noted that some Board members are
unable to attend the EOM meeting today and he asked that their desire to attend be expressed
to the staff. Chairman Peters noted she will attend the EOM meeting today. Commissioner
Janssen extended his best wishes to Marian and he noted that the Vice Presidents are doing a
great job, as mentioned by Eric and a number of the Board members, especially during these
difficult/tough budget times. He also noted the times are tough and there are difficult
---- - - - - - -- - - -cir-cumstances-that-do not reflectonithe-staff-because-the Board has seen the staff function -
when we are doing well with budget. He encouraged all of the staff to hang in there and
indicated the Board's support.
VIII. OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:50 a.m. a motion was made by Commissioner McGuire with a second by Commissioner Butler to
adjourn the meeting.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, NOVEMBER 22, 2005 AT
8:00 A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
NOVEMBER 22, 2005
MINUTES
At 8:10 a.m. 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: John Decker, Tim Haggart, Charles Janssen, Ellen Jeffries, Kris
Nicholoff, Sharon Peters, Jim.Ruff(Ex-Officio) and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: James W. Butler III, Glenn Kirk (Ex-officio), and Cyril McGuire.
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric Hart, Scott
Keith and Dirk Spillemaekers - Lansing Entertainment and Public Facilities Authority.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. Motion was
made to approve the agenda MOTION: Commissioner Sinadinos; SECOND: Commissioner
Jeffries motion carried.
IV. PUBLIC COMMENT: There was no public comment.
V. APPROVAL OF THE MINUTES OF OCTOBER 25, 2005: The minutes of October 25,
2005 were adopted as presented. MOTION: Commissioner Janssen SECOND: Commissioner
Jeffries, motion carried.
VI. REPORTS:
r
A. CHAIRMAN'S REPORT: No report.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Periods Ending October 31, 2005: Committee
Chairman Charlotte Sinadinos reviewed the financial statements as follows:
a. Lansing City Market October 31, 2005: Income Statement: Total Building Rental
for the current period is $3,985 versus $3,652 for the prior year; the year to date amount
is $16,811 compared to $19,765 for the prior year. Chairman Sinadinos noted that the
Parking funds have not been received yet which is the difference in the amount of the Total
Operating Revenue which is $16,951 compared to$25,378 for year to date. Operating
Expenses— Utilities for year to date are$12,801 compared to$11,759 for the prior year.
Total Operating Expenses for the current period are $6,056 compared to $10,082 and
year to date they are $31,379 compared to the prior year's expenses of$40,369, After
taking into account the City Contribution and Interest, we have Net Revenues for year to
date in the amount of$4,805 compared to $15,247 for last year; which had we received
the parking funds, the figure would be $12,500.
Balance Sheet: The cash position is down compared to last year due to loans to the Lansing
Center; for the current year the amount is $10,868 compared to $43,976 for the prior
year. Unreserved Equity is $163,710 compared to $181,533 for the prior year.
LEPFA Board of Commissioners Meeting
Page 2
November 22, 2005
Budget vs. Actual: Building Rental for the current period is better than budget by $189
and for year to date the amount is less than budget by ($708). Total Operating Revenues
for year to date are less than budget by ($7,139); however, if we had the parking funds,
we would have been better than budget. Operating Expenses - Utilities are better than
budget by$202 and Total Operating Expenses for the current period are better than budget
by $3,564 and year to date they are better than budget by $6,994. After taking into
account the City Contribution and Interest we have a variance of less than budget of
($197.02). Eric noted that we expect utilities to jump next month due to a warm October
and the start of the heating season.
b. Oldsmobile Park October 31, 2005: Income Statement: Event Revenues consisting
of Fright Night were $32,850 compared to $25,621 in expense, however we will still be
expecting additional expenses in November. The amount applied to the Event
Development Fund is $7,228. Year to date Revenues are $22,742 compared to the prior
year's amount of$13,562.
Balance Sheet: Cash is up at$234,339 compared to the prior year's amount of$105,971.
The Net Event Development Fund is up for the current year at $65,812 compared to
$61,893 for the prior year. Unreserved Equity for the current year is $37,034 compared
to the prior year's amount of$91,488.
Budget vs. Actual: Operating Expenses - Utilities are better than budget by $2,687 for
year to date; and Insurance/Bonding is better than budget by $477. Total Operating
Expenses are better than budget by $4,878 for the current period and for year to date the
figure is $22,872. After taking into account the City Contribution and Interest we are
better than budget for year to date by $24,756.
Eric noted next month Fright Night will be plus or minus $500 which will impact the
Event Development Fund; and the break even doesn't include the 970+ hours that
management donated and includes some other volunteers which equates to$20,000 in full
time labor from the Lansing Center at Fright Night.
c. Lansing Center September 30, 2005: Income Statement: Building Rental for the
current period is$107,267 compared to$136,401 for the prior year. Food and Beverage
for the current period is $334,668 compared to$387,388 and for year to date the figure is
$641,798 compared to $900,073. Building Rental for year to date is $181,819 compared
to $236,279 for the prior year. It was also noted that the ancillary revenues are down
significantly due to clients cutting expenses as well. Total Operating Revenues for year to
date are $988,572 compared to the prior year's amount of $1,416,594. Operating
Expenses - Salaries/Wages/Fringe Benefits are down for year to date due to vacancies
and the change in allocation. Utilities for year to date are $181,958 compared to
$202,248. Total Operating Expenses for the current period are $412,834 compared to
$504,941 and for year to date they are$1,445,307 compared to$1,714,984. Depreciation
is $22,427 compared to $28,688 for the prior year's year to date. We have an Operating
Loss for year to date of ($456,735) compared to the prior year's loss of ($298,389).
After taking into account the City Contribution and Interest we have a year to date loss of
($237,414) compared to the prior year's revenue of$40,028.
LEPFA Board of Commissioners Meeting
Page 3
November 29, 2005
Balance Sheet: Cash and Cash Equivalents total for the current year are $199,000
compared to the prior year's amount of$110,000. Accounts Receivable is down for the
current year at $410,884 compared to the prior year's $453,286. Unearned Revenue -
Advanced Rent for the current year - which is a sign of future business is at $406,342
compared to the prior year's $355,079. Unreserved Equity for the current year is
($164,000) compared to $273,815 for the prior year.
Budget vs. Actual: Operating Revenues are less than budget for the current period at
($75,717)and the year to date variance is($346,733). Chairman Sinadinos noted expenses
are being watched very closely and are being reduced significantly. Total Operating
Expenses for the current period are better than budget$81,915 and for year to date they
are better than budget by $270,371. After netting revenues against expenses, we are less
than budget by ($76,362) for year to date and after taking into account the City
Contribution and Interest we have a loss of($75,400) less than budget for year to date.
Finance Committee Chair Charlotte Sinadinos moved that the monthly financials for
Oldsmobile Park, the Lansing City Market and the Lansing Center for the period ending
October 31, 2005 be received as published and further that the monthly expenses for each
entity be approved. SUPPORT: Commissioner Nicholoff; motion carried.
Eric noted we have discussed depreciation and debt with the City and they are going to
reduce our subsidy by$77,000 and we are losing$77,000 in expense- depreciation, so it
will be a wash. They have also agreed to waive a$29,000 payable and the City owed us
almost$7,000 for the Vincente Fox event that had not been paid and we settled with them
at 50% and will be a part of our debt restructuring.
2. Audit Review: Marian Bryant reviewed the audit as follows. Page one is the Independent
Auditors report which stated that our review was a clean report. Marian read paragraph
three, which states that the financials that LEPFA has presented represents fairly the
financial picture of LEPFA as of June 30, 2005. Page two, the last paragraph with the
MDA analysis was reviewed and as previously recommended some years ago, we are not
providing the information which is indicated in the paragraph. Page three, the balance
sheet for the three entities with adjustments made in comparison to the June 30 financials
which included taking the assets off that the City put on to their financial statements; and
removing the debt service that the City assumed on our behalf. The net assets give us the
equity picture as it stands now as of June 30 based on the changes made. She noted the
($2,665) equity may require a plan for getting rid of the figure with the City and it
shouldn't be a huge issue. The City Market has equity of$159,513. On page
four the Income Statements for all three facilities are published and also reflect the debt
service, interest, and expenses related to the debt service. Marian noted the "notes" are
standard and in their standard letter they discussed internal coverage control
and she discussed the staff size, which prohibits complete segregation in duties in the
Finance Department, and discussed the issues with the Finance Committee and they are
comfortable with where we are at with that issue. The letter inserted in the report reviews
standard items such as the internal controls as previously discussed; and they asked Marian
to sign off on the trial balance which is done monthly.
LEPFA Board of Commissioners Meeting
Page 4
November 29, 2005
Chairman Peters noted that the Finance Committee has thoroughly reviewed the report
several times. Commissioner Nicholoff noted that he is very impressed with Marian and
Committee Chair Sinadinos and he noted that he likes the way we do our accounting and
reporting and as a Board member it makes him very comfortable and he expressed his
thanks. Chairman Peters noted that she would support Commissioner Nicholoff's
comments and noted that his sentiments are widely held by the Board. Marian clarified the
need for her signature on the trial balance, noting that it is a formality.
Motion was made by Finance Committee Chairman Sinadinos to approve the audit as
presented; SECOND: Commissioner Nicholoff; motion carried. Chairman Peters
extended her thanks to Marian and Committee Chairman Sinadinos.
C. PRESIDENT & CEO'S REPORT: Eric Hart reported the following:
Board Chairman Sharon Peters thanked Eric for the work he has been doing in terms of the
finances as well and that the Committee has taken note of his keeping track of financial matters
in a positive manner.
1. Thank you: Eric thanked Commissioner Tim Haggart for his efforts to save the LEPFA
Christmas Tree this year. Eric indicated that our operating lift was broken and Tim
assisted us with obtaining a lift and he save Christmas this year(and save LEFPA several
thousand dollars).
2. Union: Eric indicated that we still have one contract that is out and Scott has been
working with them on this contract. He noted this is the same Unit that the City is having
issues with also and we will continue to work through the process.
3. Budget: Eric noted that we continue to work on the financial issues and the loss of
ancillary revenue is hurting us. We will beat revenue expectations, but will not beat it
in Food and Beverage and this is one of the areas that everyone is cutting. Eric noted
that we will continue to look at these areas and are considering cuts in those areas
to continue to try to meet the bottom line and we will know more as we roll through the
holidays; we are also looking at projections for the spring and will continue to review
these matters.
4. Capital Report: Eric commented that we have been approved for the $4 million in
capital repairs to the Lansing Center. Scott will review the Capital Plan and Board
approval on the concept with the understanding that he may come back to the
Board with modifications is needed.
Scott reviewed the copy of the draft of the five year Capital Plan as distributed at the
meeting. He noted that first two years of the plan include the large items and the final
three years include the small items. He gave a detailed review of the first two years as
outlined in the plan to include the roof, concrete/limestone, glass, electrical,
plumbing, fire/electrical boxes (dock doors), fire door, walls, HVAC, concourse
carpet, wall fabric, lighting controls, restrooms, dishwasher, scissor lift, security
system, signage and table/chairs.
LEPFA Board of Commissioners Meeting
Page 5
November 29, 2005
Chairman Peters questioned signage. Eric noted that we will put up a single sided sign
on Cedar Street and one on the side of the building (southeast corner), which will
require approval from City; Eric noted the sign is a part of the 2007 items.
Commissioner Janssen questioned how the plan was prioritized; he asked for the
overall life of these changes and how it fits into the overall long range plan and
expansion, and what is the focus in terms of the existing building. Scott explained that
the items are to the existing building and are upgrades and will need future upgrading
that will be detailed in a long range plan.
At 8:46 a.m. Commissioner Kris Nicholoff exited the meeting.
Eric noted years one and two contain $4 million as recommended by City Council
this year, and additionally we are stating that we may need $317,000-$360,000
annually to maintain the building and is this is a part of the future capital plan. The
bonding of an additional $1 million was discussed; however it did not make sense to
incur that additional debt and pay interest on funds that would not be used immediately.
We clearly identified that there are more than $4 million in repairs that are needed on
the building and the plan will have expansion capabilities built into it as has been the
discussions with our contractors such as the heating/cooling. The only potential issue
in regard to expansion would be the carpeting.
At 8:55 a.m. Jim Ruff exited the meeting.
Eric noted as we grow the Capital Plan needs to grow with the expansion.
Chairman Peters noted the condition of the building has been a discussion item and this
plan goes beyond talk and moves us to action on these issues. She thanked
Commissioner Janssen for his comments. Eric also indicated that the plan will be
brought back to the Long Range Planning Committee in the future and any future
requests will be brought back to Long Range Planning Committee for approval.
Motion for approval of the plan as submitted with the contingencies as discussed was
made by Commissioner Haggart and supported by Commissioner Jeffries; the motion
was unanimously passed.
Eric noted when we close the building we are cutting down on lighting and heating and
are shutting the building down for cost savings (emergency and security lighting
remains on).
5. Operations Department: Scott Keith reported that we are still in union negotiations and
are moving forward. The process is beginning in order to fill some vacancies by the
end of the year and include a Forepersons position and Event Coordinator position.
Scott reported that he brought back carpet and wall fabric samples for the Board's
perusal. Scott wished everyone a happy holiday.
6. Food and Beverage: Bill Grove noted we had a pretty good October, although it
didn't meet budget; however last year's October was the best to date. In regard to the
dish machine, Bill noted it has been here since day one, and it is operating but has been
running 10-12 hours a day 6-7 days a week and he fears that if it goes down it is the
LEPFA Board of Commissioners Meeting
Page 6
November 29, 2005
only one we have. We need to address the present equipment and have a second
machine that will help with the overall operation.
7. Lansing Center: Linda Frederickson reported that in the month of October at the Lansing
Center we hosted 54 events, which equated to 74 event days, with attendance of 18,000
and 1,600 hotel rooms for an economic impact of just over $750,000.
• Event Highlights: Linda distributed the event highlight information for the
Board's review, and noted that the CVB Appreciation lunch is scheduled for
December 6, the Board Party is December 7 and we are scheduled to host several
holiday parties.
• Booking Report: We are holding dates for Spartan Stores return for September
2007 and 2008; we have rebooked Hearts at Home for 2008-10. We have
booked an in-service for Sate Employees Credit Union for November 2006.
• New Business: A proposal has been submitted for the Lutheran Women's
Missionary League for July 2006; a proposal has been submitted for the Michigan
Association of Community Mental Health Boards for a winter conference in
2008; and Michigan Realtors is leaving the market, but we are working on them
for 2008.
• Lansing City Market: Linda noted that Van Houten's is returning to the Market
as "Van Houten's Girls" as was announced in the paper. Linda noted "One Chef
Cafe"is delayed problems with securing his financing for the purchase of his
equipment, but he still intends to move forward. Linda noted we have started our
e-data basing and will begin our newsletter blast and other marketing next month.
Linda reported that she applied for the PPS grant for the City Market ($18,000)
which is a state-wide leasing incentive program for the Market and we should
know the results by December 6.
• LEFPA Web Site Update: We went through the RFP process for the
development of all of the LEPFA web sites and are reviewing the proposals and
have sat through presentations. Linda noted she and Jeff will review them and
will then make a recommendation to Eric.
• Pepsi: Linda noted she has met with Pepsi and they wish to continue our
partnership as the exclusive provider of beverage products. Their contract had
expired and they agreed to work with us by signing a multi-year deal that they
will back date one year. We should receive payments from Pepsi in the amount
of$22,000 and she will finalize that agreement within the next two weeks.
• City Market Grant: Eric noted we have applied for a grant for the City Market
through Jim Ruff's department for signage and a new sound system.
• Silver Bells: Linda noted Silver Bells was last Friday and it was very successful.
LEPFA Board of Commissioners Meeting
Page 7
November 29, 2005
D. PERSONNEL COMMITTEE:
1. Drug/Alcohol Polices Committee Chairman Tim Haggart noted that recommended change
is outlined in italics on the distributed policy and states that the policy will apply to all full-
time positions. This word change was recommended/brought to our attention by the
Union, and they noted only full-time employees will be required to pass the drug test.
Commissioner Jeffries asked if this change has been reviewed and approved by our
Attorney and she asked if the language is standard. It was noted that the policy is effective
as of November 1 and the modification is all that needs approval and it basically states that
all full-time employees, prior to being hired, will have to pass a drug test. Commissioner
Tim Haggart moved the acceptance of the revision; SUPPORT: Commissioner Charlotte
Sinadinos; the motion carried.
E. LONG RANGE PLANNING COMMITTEE: Committee Chairman Janssen noted that the
Committee would not meet until after year end and/or when the Mayor-elect is on board and
we know what his plans are in terms of the Riverfront and the Entertainment District. It was
noted that various Board members are serving on various committees for the Mayor-elects
transition team. Chairman Peters noted she is serving as Chair of a committee and noted it
would be important for Eric to participate in a work group. Eric has submitted his name to
Don LaDuc, but has not been contacted. Eric is also meeting with Gerald Ambrose to discuss
LEPFA issues of immediate concern due to the tight turn around. Chair Peters indicated she
appreciated Commissioner Janssen's concerns about the Long Range Plans and asked Eric to
be certain to include them in his discussions with the administration.
F. CITY MARKET AD HOC COMMITTEE: Committee Chairman Ellen Jeffries reported that
a Strategic Planning meeting took place on Thursday, October 26 and Linda Frederickson
reported that the meeting took place and there was very good exchange of information. From
that meeting a smaller meeting was scheduled with a representative from all of the groups
present and was set for December 7 at 3:30 p.m. and at that time the strategic planning process
will begin. Kris Nicholoff will represent the LEPFA Board; Harold Leeman will be the City
Council's representative as well as Pete Bocheff and a representative from the EDC, PSD,
LEPFA Staff and a City Market Vendor representative.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Chairman Peters: Commissioner Peters noted she was glad to have Marian in attendance at
today's meeting despite being on a leave of absence.
B. Commissioner Charlotte Sinadinos: Commissioner Sinadinos thanked Marian for coming in
during her leave of absence.
C. Linda Frederickson: Linda noted that December 2 Common Cards go on sale to the public.
The Uncommon Club members were offered to sign up for the club during November.
D. Commissioner Ellen Jeffries: Commissioner Jeffries echoed everyone's comments about
Marian and how much we appreciate her work on Finance and for going beyond the call of
duty by coming back in order to get the financials out as well as the audit.
E. Commissioner Tim Haggart: Extended holiday wishes to all.
LEPFA Board of Commissioners Meeting
Page 8
November 29, 2005
F. Commissioner Charles Janssen: Commissioner Janssen extended holiday wishes.
G. Commissioner John Decker: Commissioner Decked thanked Eric and the staff for their extra
effort on Silver Bells and noted that this was the sharpest the building has been in ten years.
H. Councilmember Harold Leeman: Councilmember Leeman questioned who was responsible for
the parking lights below the building(lights are out). He was referred to the City. He asked if
LEPFA has been meeting regarding the construction for next year. Eric noted we are
preparing and we will have a meeting with Chad Gamble on November 30. Discussion ensued
regarding cars in the building and Fire Marshall requirements. He questioned the difference
between the Lansing Center and the Airport Fire Marshall requirements in terms of the display
of cars.
I. Heidi Brown: Heidi extended holiday wishes.
J. Eric Hart: Eric noted we are working on a big pr related event for the end of February and we
are very excited about the event; he promised to keep the Board informed. Eric noted the
Business Monthly is looking to sponsor a Holiday Gayla on December 9 and we are working
with them as a partner; he encouraged those present to purchase tickets.
Chairman Peters thanked everyone for attending and extended her holiday wishes.
VIII.OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:28 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY,DECEMBER 13,2005 AT 8:00
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
DECEMBER 13, 2005 -
MINUTES
At 8:11 a.m. 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, John Decker, Tim Haggart, Ellen Jeffries, Sharon
Peters, and Charlotte Sinadinos.
COMMISSIONERS EXCUSED: Charles Janssen, Glenn Kirk (Ex-officio), Cyril McGuire, Kris
Nicholoff, and Jim Ruff(Ex-Officio).
OTHERS PRESENT: Heidi Brown, Marian Bryant, Linda Frederickson, Bill Grove, Eric Hart, Scott
Keith and Dirk Spillemaekers - Lansing Entertainment and Public Facilities Authority.
III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. Motion was
made to approve the agenda by Commissioner Sinadinos; SECOND: Commissioner Butler;
motion carried.
IV. PUBLIC COMMENT: Dirk Spillemaekers noted to Eric Hart that the employees have been lead
to believe that an Employee Handbook is coming down the pike and he asked for a date of
arrival. Eric noted that he could not give an exact date since there has not been a handbook for ten
years; however, it is being worked on and the expectation is that there will be one in about eight
months considering what he is currently addressing, sooner is unrealistic. Eric noted that he has put
together several items in addition to changing Heidi's job description and has moved around her job
responsibilities to include the handbook. Currently we are working on compiling all of our job
descriptions which are being re-written and assembled in a similar format based on the Board's
approval of the classification system. Eric noted he hoped to have a draft of the manual available
for presentation to the Union within the next six months. Dirk asked if in order to expedite the
process to any degree if he is permitted to have contact with Heidi. Eric indicated that he doesn't
want to insert any ideas until it is in a format and noted that if Dirk had any ideas to insert he
would be happy to consider them, but as is typical for the meet and confer process he will take the
manual to meet and confer. Eric clarified for Commissioner Butler that the goal is to have a draft in
six months.
At 8:15 a.m. Scott Keith entered the meeting.
Chairman Peters noted that she appreciated the question because she was not aware that LEPFA has
been operating without an updated handbook.
Dirk also noted that some of employees have asked him informally if they could have a
formal invoice and he therefore was inquiring whether or not, if at some point in time when it is
convenient with the Board, if they might have the opportunity to meet with Mr. Hart and selected
members of the Board in order to just become acquainted if nothing else, and if the possibilities of
such a meeting exists. Chairman Peters questioned what employees and she urged Dirk to speak
with his colleagues and let them know that they are very welcome to Board meetings. Dirk asked
if there are no longer "such prohibitions." Eric indicated that there are no prohibitions; however,
employees cannot attend meetings on paid work time, but they are allowed to attend LEPFA Board
meetings, which are open public meetings, on their own time. Commissioner Butler requested
clarification on the term prohibition and asked if in the past the employees felt they couldn't attend
the meetings. Dirk noted that was correct.
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December 13, 2005
Chairman Peters noted that is not the Board's feeling currently and she noted in response to Dirk's
question that he specifically convey that they are welcome to attend on their own time. It was
noted that various Board members have attended various staff meetings and would welcome staff
in the name of team work which is what the Board is asking him to do. Commissioner Butler
extended his apologies to the staff as a Board member, if for some reason the employees felt they
couldn't attend meetings, because they can come speak at the Board meetings because they are
open. Dirk noted this issue pertained to the prior administration and he is not addressing this
administration. Chairman Butler noted that he did not condone that action. Dirk noted that his
questions were answered and he would share the Board's sentiment with all the employees.
Chairman Peters thanked Dirk for his questions.
At 8:17 a.m. John Decker entered the meeting.
V. APPROVAL OF THE MINUTES OF NOVEMBER 22, 2005: The minutes of November 22,
2005 were adopted as presented. MOTION: Commissioner Sinadinos SECOND: Commissioner
Haggart, motion carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT:
1.Board Transition Team: Chairman Sharon Clayor Peters noted that we are at a
propitious moment in Lansing in that we are in the midst of change and the Authority
has also undergone a change in our leadership, a change in our focus and operation.
Chairman Peters noted she is concerned with some of the changes and issues with
finances and our role in downtown development. Chair Peters referenced the recent
article regarding a downtown arena and the many ideas that are being discussed which
lead to her appointment of an Ad Hoc Committee to work over the next few months
with the Administration during this transition period. Members include Charlotte
Sinadinos, James Butler, Tim Haggart and Chairperson Peters. She noted the
Committee will work with the President and CEO on time frames.
B. SECRETARY/TREASURER'S REPORT:
1. Monthly Financial Statements for the Periods Ending November 30 2005: Committee
Chairman Charlotte Sinadinos reviewed the financial statements as follows:
a. Lansing City Market: Income Statement: Total Building Rental for the current
period is $3,487 versus $5,436 for the prior year; the year to date amount is $20,298
compared to$25,201 for the prior year. Chairman Sinadinos noted that the Parking funds
have been received in the amount of$7,741. Total Operating Revenues for year to date are
$28,214 compared to $30,849. Operating Expenses— Salaries/Wages are down for year
to date due to the transition. Utilities for year to date are $17,736 compared to $16,063
for last year. Depreciation for year to date is$441 compared to$1,486 for the prior year.
Total Operating Expenses for year to date are$40,818 compared to$53,846 for last year.
After taking into account the City Contribution and Interest, we have Net Income of
$10,733 compared to $13,370 for last year.
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December 13, 2005
Balance Sheet: The total cash position is down compared to last year for the current year at
$30,448 compared to$66,592 for the prior year. Unreserved Equity is$169,637 compared
to $179,657 for the prior year.
Budget vs. Actual: Total Operating Revenues for year to date are less than budget by
($68.34). Operating Expenses- Salaries/Wages are better than budget. Utilities exceed
the budgeted amount by ($1,481) for year to date. Total Operating Expenses for the
current period are better than budget by$123 and year to date they are better than budget
by$7,117. After taking into account the City Contribution and Interest we are better than
budget by $6,984 for year to date. Eric noted that the $1,700 overage on utilities was
attributed to utilities for October because the gas bill went up 58%. He noted that he
anticipates that any surplus we have will be absorbed by the increase in gas rates.
Commission Butler questioned the parking in terms of last year; it was noted that it was
reflected in the previous month's financials for last year, and they are late this year.
b. Oldsmobile Park October 31, 2005: Income Statement: Event Revenues from Fright
Night were $13 compared to $5,583 in expenses for a loss of($5,570) as was discussed
last month and there will be additional expenses. Utilities for the current period are$7,117
compared to$6,041 for last year, which is up by$1,100; year to date utilities are$27,390
compared to$27,035 for last year. The miscellaneous amount of$8,250 is our portion of
the suite. Total Operating Expenses for year to date are $81,759 versus the prior year's
amount of$99,553. After taking into account the City Contribution and Interest, we have
income for year to date of$16,441 compared to the prior year's income of$9,851.
Balance Sheet: The total cash position is up at$321,305 which is up compared to the prior
year's amount of$150,192. The Net Event Development Fund is up for the current year at
$60,262 which exceeds the prior year's amount of$54,043. Unreserved Equity for the
current year is $25,163 compared to the prior year's amount of$79,927.
Budget vs. Actual: Operating Expenses- Salaries/Wages are better than budget for year
to date by $557; Utilities are higher than budget by $853 and for year to date they are
better than budget by $1,833. Total Operating Expenses are higher than budget for the
current period by $6,944 and for year to date the figure is better than budget by$15,928
for a bottom line better than budget of $17,770 for year to date. Committee Chairman
Sinadinos noted the break down on the last page of the events.
C. Lansing Center September 30, 2005: Income Statement: Building Rental for the
current period is $67,041 which is down compared to $72,120 for the prior year.
Building Rental for year to date is at$248,85land is down compared to $308,399 for the
prior year. Food and Beverage for the current period is $198,425 compared to $226,530
for the prior year; and for year to date the figure is$840,224 which is down compared to
the previous year's amount of $1,126,603. Chair Sinadinos noted all of the ancillary
revenues are also down. Total Operating Revenues for the current period are $337,093
compared to $381,169 and for year to date they are $1,325,666 compared to the prior
year's amount of $1,797,764 which is down about $472,000. Operating Expenses -
Salaries/Wages/Fringe Benefits are down for year to date due to vacancies and the change
in allocation. Utilities for year to date are $225,618 compared to $248,246. Food and
Beverage expense is down in proportion to the revenues for year to date at $564,611
compared to $651,000 for the previous year.
LEPFA Board of Commissioners Meediig
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December 13, 2005
Total Operating Expenses for the current period are$400,274 compared to$463,857 and
for year to date they are $1,845,582 compared to $2,178,000. After taking into account
the City Contribution and Interest we have a year to date loss of($252,991) compared to
the prior year's loss of($4,634).
Balance Sheet: Cash and Cash Equivalents for the current year are$283,000 compared to
the prior year's amount of$390,000. Unearned Revenue— Advanced Rent for the current
year — which is a sign of future business - is at $384,220 compared to the prior year's
$375,665. Unreserved Equity for the current year is($179,578)compared to$229,152 for
the prior year.
Budget vs. Actual: Building Rental for the current year is less than budget by($2,816)and
for year to date Building Rental is less than budget by ($19,391). Food and Beverage is
less than budget by ($31,574) for the current period and for year to date it is less than
budget by($238,780). Equipment Rental is less than budget by($51,680)for year to date.
Total Operating Revenues are less than budget for the current period at($73,442) and the
year to date variance is($420,175). Operating Expenses— Salaries/Wages are better than
budget by $63,275 for year to date and Fringes are better than budget by $37,080.
Utilities for year to date are better than budget by $30,256. Depreciation for the current
period is $3,846 and for year to date the amount is $19,878. Food and Beverage expense
is better than budget by$87,086 for year to date. Total Operating expenses for the current
period are better than budget by $50,453 and for year to date the figure is $320,824.
Chairman Sinadinos indicated that the expenses are being held in line and we are cutting as
much as we were directed to do and are in line with the Operating Revenue, which is of
deep concern. Currently we have a variance from budget of ($22,988) for the current
period and the year to date variance is($99,351). After netting revenues against expenses,
we have a current period variance from budget of($22,521) and year to date we are less
than budget by ($97,921). Commissioner Butler noted that the difference this year is
attributed the loss of several major events. Eric noted we have been losing big events for
about four years as detailed in a recent memo, due to the condition of the building, as
indicated in our client surveys. He noted in our survey's we lost 2/10 of a point this year
which is huge on a five point scale. He noted another example of why groups are leaving,
such as Hearts at Home, which is leaving in 2007 due to hotel space; they will be going to
Grand Rapids. Eric noted we are currently re-aligning our staff to align our labor to meet
the demands. On a positive note, the Chamber of Commerce has moved their annual
dinner to the Lansing Center this year(February 21), which will be our opportunity to sell
this building. Eric noted we also have events that are returning such as Spartan Motor
Coach in 2007 and 2008 is questionable and we are continuing to address the issues. He
noted we have cut everywhere we can for right now as evidenced in the expense figures,
but the revenues aren't there because everyone is cutting ancillary spending. Chairman
Peters noted this is a big piece of information that we need to engage in with our new city
leadership. Commissioner Butler noted that at a recent transition meeting on Economic
Development, one of the comments made was that we need to expand the Lansing Center
and they also understood that we need another hotel, which was the opinion of the citizens,
and came across loud and clear. Chairman Peters noted that she is pleased that the citizens
discussed the Lansing Center in economic terms.
LEPFA Board of Commissioners Meeting
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December 13, 2005
Commissioner Butler noted that he feels that it is important for Board members to be
Ambassadors for the Authority with events such as the Chamber's annual event which
Commissioner Butler noted he has been discussing with Mr. Sepic the return of the event
back down town and he also noted Commissioner Nicholoff works with the Michigan
Dental. He noted another example is working with the various state departments such as
DLEG to bring their events downtown. Eric noted our sales efforts have changed as well
and we are actively participating in joint events such as a summit with the CVB, now that
they are fully staff, to layout new strategies which may result in immediate cosmetic
changes in the building.
Marian noted on page three (the Operating section on the right side) that she has made
changes in the annual budget which reflects the reduced subsidy. She also noted that the
upcoming budget process will also need to include our reduction in expenses by the
amount that the subsidy was reduced ($50,000 net).
Finance Committee Chair Charlotte Sinadinos moved that the monthly financials for all
three entities be received as published(Oldsmobile Park, the Lansing City Market and the
Lansing Center) and further that the monthly expenses for each entity be approved.
SUPPORT: Commissioner Haggart; motion carried.
C. PRESIDENT & CEO'S REPORT: Eric Hart reported the following:
1. Bus Tour-Transition Work Group: Eric indicated that he participated in a bus tour last
evening and it was interesting to note the vacancies throughout the city and the land owned
by the state. He noted the topic was on the paper's front page today because of the bus
tour last evening. He noted a significant amount of development and that he feels the
downtown is about to pop and he sees great things coming the downtown, especially with
the new administration and some of their economic development ideas. Some of the
developments discussed were the Arbaugh Building,Printers Row and the long-term future
of the addition of items such as a grocery store, an expanded City Market, and many other
ideas were discussed. He noted that a restaurant is scheduled to go in across from the
Arbaugh Building, all of which are good signs and with the inclusion of the Gillespie
project there should be a lot of folks in the downtown area very soon. Eric noted he sees
some very positive things and Common Ground was discussed as well, and his attempt to
make sure the Administration is sold on Common Ground because the Authority can no
longer fund it; the indication is that they are supportive and they want us to move forward
with this year's festival. He noted the Lansing Center, Oldsmobile Park and the City
Market were all topics of discussion as well as Adado Riverfront Park additions. Eric
noted everyone on the bus was very positive about what they see coming from us and
while they may not know what we are facing as an Authority, they are seeing our efforts to
make this a number one place. Eric noted he was also approached about the expansion.
2. Employee of the Month: Eric announced our second employee of the month, and her
name is Tracy Hodges, a clerical person in Operations. Eric indicated that we hope to see
eligible candidates from our lower ranks/line staff. Commissioner Butler asked that the
Board be notified of the meetings/announcements for the Employee of the Month. Eric
explained that their name is posted on a plaque in the main office; they receive a$25 gas
car, a mug, and a designated parking spot.
T T.`TT.` Tl
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December 13, 2005
The potential of a picture of the EOM was suggested. Eric reported that we hope to roll
out the LEPFA Bucks program in January, with the hopes of not spending a significant
amount of money by capitalizing on some of the assets we have already. It will go to the
VPs for review and we will collect buck gifts. Commissioner Butler noted that he would be
willing to forward information to Eric regarding discounted Meijers gift cards.
3. Buffet: Eric noted that he has the concerns about the finances, and hopes that the
Board notes the steps that we are taking and we will continue to work on the budget.
He noted that it will be a lean year, but we will do everything we can to make budget
and it is a high priority for all staff(e.g. turning off the lights, turning down the heat
at all three entities, etc.). Chairman Peters noted that the holiday party last week was
enjoyable and was done in a manner that was classy but very cost effective with
minimal costs. Commissioner Butler noted the need for lights for the food for next
year.
4. Finance Department: Marian noted she has been back for a week and she commended
the Finance Staff who were able to provide the financials through hard work and with a
new staff person that was overseeing the department. Commissioner Butler
commended Marian for stepping up and noted Mr. Bryant's comments regarding the
same.
5. Operations Department: Scott noted a negotiations session is scheduled for Friday
afternoon.
6. Lansing Center: Linda Frederickson distributed the December Highlights report. Linda
noted that two holiday parties purposely booked in January. During the month of
November we hosted 56 events,which included 50,000 visitors,utilizing 690 hotel rooms.
• Booking Report: February 21 we will host the Chamber's Annual dinner. She
also noted that the Cooley Law School winter graduation will be here in January.
• New Business: We won the bid for Org Pro in July, 2008. A proposal was
submitted for a Log and Timber Expo Home show in July, 2008 and a proposal
has been submitted for the Log and Timber Home Show in April.
7. Food and Beverage: Bill Grove noted that after utilizing the Kellogg Center, Flag Star
Bank has brought an 800 person lunch to the Lansing Center in February and he asked
Board members that have contact with their officials/staff, to please welcome and thank
them. He also referenced the recent article in the paper regarding holiday parties and
noted that many people who attend Rotary also host their own company parties, but
may not consider the Lansing Center because of their limited perception based on
Rotary meals and noted that anything Board members can do to influence use of the
Lansing Center is appreciated (e.g. Mr. Shaheen). Bill also echoed the previous
comments regarding our client cutback trends which have also impacted food and
beverage.
LEPFA Board of Commissioners Meeting
Page 7
December 13, 2005
8. Staff Party: Eric noted the Staff Party is tomorrow at 1:00 p.m.-3:00 p.m. and he
extended the invitation to Board members in light of Dirk's comments. He noted this
year's party was planned by a Committee which is doing a great job.
D. PERSONNEL COMMITTEE: No report.
E. LONG RANGE PLANNING COMMITTEE: No report.
F. CITY MARKET AD HOC COMMITTEE: It was noted that a Strategic Planning
Committee is now in place; therefore it was recommended that this committee be removed
from further agendas. Commissioner Jeffries moved that the recommendation be approved and
Commissioner Haggart seconded the motion. Commissioner Kris Nicholoff will continue to
serve on the Market Strategic Planning Committee along with Commissioner Decker. Initial
recommendations will be forwarded to the LEPFA Long Range Planning Committee. Eric
referenced an email he has already sent to the Board regarding funding and the hiring of a City
Market consultant as recommended by the Committee. There are grant monies for the
consultants and the committee has begun work on the scope of work they will ask them to
review. It will go to the Long Range Planning Committee and then to the administration along
with the consultants. Jerry Ambrose will serve on the committee. The motion carried.
VII. COMMISSIONER AND STAFF COMMENTS:
A. Chairman Peters: Commissioner Peters commended the holiday celebration and extended very
happy holidays to the LEPFA Family.
B. Marian Bryant: Marian wished everyone happy holidays.
C. Commissioner Charlotte Sinadinos: Commissioner Sinadinos noted she loved having the
holiday party in the bar area and noted that it was very nice. She also noted that her brother's
company, Summit Contractors were very happy as well (she attended their party). She also
noted that she would like to see Board members at the Chamber of Commerce event.
D. Commissioner Ellen Jeffries: Commissioner Jeffries echoed everyone's comments about the
holiday party and she noted that it was a very nice setting and it still went off on a low budget.
She also commented on the bathrooms and noted that they are better than they have been in a
long time and she has noted several people's comments and their appreciation of the cleanliness
of the restrooms. She also commented on the stall billboards.
E. Commissioner Tim Haggart: Extended holiday wishes to all.
F. Commissioner James Butler: Commissioner Butler requested a few pastries for the board
meetings. He also extended his appreciation to Eric Hart for his leadership and the outstanding
job he has done since he arrived here; he also noted his creativity and vision beyond the
normal scope and referenced his collaborative and cooperative behavior which is fostering
relationships that we have not had previously and many people have expressed their pleasure in
working with Eric. Commissioner Butler concurred with Chair Peters that this is a propitious
and exciting time and a time for change with the new administration and the high energy based
on the town meeting formats.
LEPFA Board of Commissioners Meeting
Page 8
December 13, 2005
He wished everyone a Happy and Merry Christmas and noted he will invite the Board to the
Knight Cap for a dinner following the holidays. Rotary was. discussed and he noted he
appreciated the "heads up." Eric noted we are working with Virg's staff on his inauguration
and they are hosting the inauguration through donations and in conjunction with donations
from local restaurants.
At 9:30 a.m. Chairman Peters exited the meeting.
Commissioner Butler questioned the status of Chris Holman's activity for next year; Eric noted
he is meeting with him and he is slated to sign a contract early next year. Commissioner
Butler noted he will meet with him tomorrow morning and will mention the contract to him.
G. Commissioner John Decker: Commissioner Decked wished everyone a Merry Christmas.
VIII.OLD BUSINESS:
No report.
IX. NEW BUSINESS:
No report.
At 9:31 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, JANUARY 24, 2006 AT 8:00
A.M. AT THE LANSING CENTER IN THE GOVERNOR'S ROOM.
Respectfully submitted,
Heidi K. Brown, Recording Secretary