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HomeMy WebLinkAbout2017 LEPFA Minutes cu 17 1'iY1 SII1fiGITUERTAINMENT&PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING g_ll<S1 'i CITY i� JANUARY24, 2017 MINUTES At 8:07 a.m., Chairman Tim Kaltenbach called the meeting to order in the Executive Conference Room of the Greater Lansing Convention&Visitors Bureau,located at 50o E. Michigan Ave., Lansing, MI 48912. Scott Keith, President &CEO introduced Eric Brewer, City of Lansing Internal Auditor. Eric is an Ex-Officio for the LEPFA Board. COMMISSIONERS PRESENT: Tim Barron,Angela Bennett (Ex-Officio), Cindy Bowen, Eric Brewer (Ex-Officio), James W. Butler III,Tim Kaltenbach, and Charles Mickens. COMMISSIONERS EXCUSED: Robert Johnson (Ex-Officio), Linda Sims-Wright and Charles Janssen. OTHERS PRESENT: Scott Keith,Jennifer McFatridge, Heidi Brown, Paul Ntoko,Tristyn Wright, Shelly Busse, Audrey Tipper — Lansing Entertainment&Public Facilities Authority, and Jack Alexander. II. ESTABLISHMENT OF THE AGENDA: Chairman Kaltenbach stated until a quorum is reached, the agenda will be adjusted so that non-voting items may be reviewed and/or discussed III. PUBLIC COMMENT: Jack Alexander asked Scott if the agreement for the digital readerboards for the ball park has been finalized yet,what the cost of the board(s)will be and will two be purchased. Scott stated the estimate has not been finalized; it may be a couple more weeks before it is finalized.Will review with team and city once it is received. Jack also reported there is a sink hole in the corner of the Cedar St. parking lot and noted this has been reported twice to the City. Tristan Wright,Vice-President of Operations stated the sink hole has also been reported to Lansing Board of Water&Light as well as Victor Rose (City of Lansing-Public Service department). Jack asked Scott when will the digital boards be installed. Scott stated as soon as the request for funds is made and approved(which could be close to the end of the season depending on approvals and funding). IV. REPORTS: A. CHAIRMAN'S REPORT: No report. LEPFA Board of Commissioners Meeting Page 2 January 24: 2017 B. PRESIDENT&CEO REPORT: Scott Keith reported the following: 1. LRCC Annual Dinner: LEPFA has a table to this year's annual event. If anyone is interested in tickets to this event, please contact Scott or Shelly.The dinner will be held at the Kellogg Center on February 16, 2017. 2. Photo: Scott stated he would like to have an annual LEPFA Board group photo taken and feels it best to take the photo before or after one of the monthly Board meetings. Scott asked everyone to check their schedules and let Shelly know which meetings may be a challenge to attend and Shelly will schedule the photo session based upon everyone's availability. In addition, if anyone needs an updated LEPFA photo ID badge,this photo session would be a great time to do that. 3.Thank Yous: Scott shared notes of thanks from Julie Ankney(LEPFA Receptionist) with regard to flowers sent on behalf of ELPFA and the Board for her Mother's passing.A note of thanks was also received from the Lansing Food Bank with regard to LEPFA's donation from the "turkey feather" sales. 4. New Signage: The lower level parking lobby will soon have a makeover.The GLCVB will provide welcome murals for two of the walls in that area.Art Craft will install these murals by the end of this week. 5.Annual Report: Scott distributed a DRAFT copy of the LEPFA Annual Report and noted when it is finished it will be in glossy format. Scott reviewed the highlights and key notes of the report. Hotel room nights were the highest since recording these numbers began,there was a small decline in attendance at the ball park this past year(poor weather conditions played a factor in this decline). *Commissioner Barron entered the meeting at 8:18 a.m. 6. FY 2017— 2018 Budget: Scott distributed a DRAFT copy of FY'17— '18 budget and noted it is in DRAFT form until complete. Scott stated this will be discussed during the Finance Committee report. 7.Administrative Report: Scott reviewed past events and noted the speaker for the MLK Luncheon was one of the best ever.Attendance for this event was also very high. Scott reviewed events that were at Lansing Center within the last two weeks and also discussed several upcoming events. 8. Misc. Items: Scott stated his hope is to have and update on media/press annual website analytics by next month's meeting. Scott reported the annual OSHA report indicates improvements with accidents on the job; cases were cut in half missed days of work was down by 8o%. 9.Tickets for Upcoming Events: Tickets are available for the boxing event on 1/28/17, Motorcycle Swap Meet on 1/29/17, Mid-Michigan Women's Expo 2/3/17 through 2/5/17 and Deer&Turkey 2/17— 2/19. If anyone is interested in tickets please contact Shelly. LEPFA Board of Commissioners Meeting Page 3 January 24, 2017 Chairman Kaltenbach asked Scott to explain the decrease from this year's event days to last year's event days. Scott stated the decline stems from the timing or dates of the events. Chairman Kaltenbach state the meeting now has a quorum and asked for a motion to approve the meeting minutes from the November 29, 2o16 meeting. V.APPROVAL OF THE MINUTES FOR NOV-EMBER 29, 2016: MOTION: Commissioner Barron SECOND: Commissioner Butler Motion unanimously approved. IV. REPORTS (cont'd): C. FINANCE COMMITTEE: Secretary/Treasurer Cindy Bowen reported the Finance Committee had a"robust" meeting yesterday and the reports for that meeting will be reviewed after an auditor presentation by Mark Kettner of Rehman Robson. 1. FY'15 - 'is Audit: Mark Kettner reported on audit results for the FYE 2015 — 2o16 accounting period. Mr. Kettner reviewed pages 1 and 2 noting there were no material misstatements in the financial reports (this means there is a high level of assurance that the report is an unmodified opinion). Mr. Kettner discussed the audit process and considerations made while performing the audit. Mr. Kettner stated there were no issues or deficiencies for this audit.The results on page 9 of the audit with regard to income statement for all three properties the change in net position is favorable and there was an operating loss of 1.3 million dollars. It was also noted there are no new standards applicable to the Authority. Commissioner Barron stated that everything would appear to be in order; how do you address if there are problems? Mr. Kettner stated if any issues or problems are found the findings would be reported to the Authority. Commissioner Butler asked if there are any concerns or recommendations at all. Mr. Kettner stated if there were any concerns, they would be put in writing. *Commissioner Mickens exited the meeting at 8:41 a.m. 2. December 2o16 Financial Report: Jennifer McFatridge,Vice-President of Finance reported the following information: LEPFA Board of Commissioners Meeting Page 4 January 24, 2017 a. Lansing City Market: The chart in the upper left-hand corner shows a 3 year comparison of actual revenue compared to budget for December, as well as a 3 year view of YTD actuals compared to YTD budget. Operating Revenue has increased by 6% compared to last year. The chart in the upper right-hand corner shows a 3 year comparison of actual expense compared to budget for December, as well as a 3 year view of YTD actuals compared to YTD budget. YTD Operating Expense has decreased by nearly 1% compared to last year. A contributing factor for December's expense being so close to budget was due to an IT expense for fiber backbone and switches that required replacement. The chart in the lower left-hand corner is a view of where the City Market is through December when compared to the fiscal year budget. The market has contained its expenses to 44% of the expense budget with 6 months remaining in the year. Switching to revenue, the market has captured 46% of the revenue budget with 6 months remaining in the year. At the end of 6 months, excess revenue over expense is ahead of budget by nearly $7,000. This chart shows a 3 year comparison of Unreserved Equity. Through the first 6 months, unreserved equity is climbing but has work to do to reach the numbers reflected in FY15. b. Coolev Law School Stadium: The chart in the upper right-hand corner shows a 3 year comparison of actual expense compared to budget for December, as well as a 3 year view of YTD actuals compared to YTD budget. YTD Operating Expense has increased by nearly 6% compared to last year. The largest contributing factor for increase in expense is attributed to Utilities. Comparing December 2015 to this year, Electric is up 66% and Gas is up 16%. The chart in the lower left-hand corner is a view of where the stadium is through December when compared to the fiscal year budget. The stadium has contained its expenses to 50% of the expense budget with 6 months remaining in the year. At the end of 6 months, excess revenue over expense is ahead of budget by $500. This chart shows a 3 year comparison of Unreserved Equity. Through the first 6 months, unreserved equity is on pace with FY16 but has work to do to reach the numbers reflected in FY15. LEPFA Board of Commissioners Meeting Page 5 January 24, 2017 c. Lansing Center: The chart in the upper left-hand corner shows a 3 year comparison of actual revenue compared to budget for December, as well as a 3 year view of YTD actuals compared to YTD budget. Operating Revenue has increased by 26 compared to last year. $38K is from groups that were not here in 2015. The chart in the upper right-hand corner shows a 3 year comparison of actual expense compared to budget for December, as well as a 3 year view of YTD actuals compared to budget. YTD Operating Expense has increased by 12% compared to last year. A few of the contributing factors for December's expense increase were: Utilities categories of Steam(5o%) and Water(40%), Event Expenses related to Dart, Midwest Reps, CPA's and AAA(Carpet) and AV equipment needed for events. The chart in the lower left-hand corner is a view of where the Lansing Center is through December when compared to the fiscal year budget. The Lansing Center expenses are 55% of the expense budget with 6 months remaining in the year. At the end of 6 months, expenses are up to budget. Switching to revenue, the Lansing Center has captured 56% of the revenue budget with 6 months remaining in the year. At the end of 6 months, excess revenue over expense is ahead of budget. This chart shows a 3 year comparison of Unearned Revenue-Advance Rent which is an indicator of future business. Through the first 6 months, Unearned Revenue-Advance Rent is climbing but has work to do to reach the numbers reflected in FY15. Secretary/Treasurer Cindy Bowen made a motion to accept the October 2016 financials for the Lansing City Market, Cooley Law School Stadium and the Lansing Center be received as published and further that the monthly expenses for each entity be accepted. MOTION: Commissioner Bowen ACCEPT: Commissioner Janssen Motion unanimously carried. 3. FY'16 - '17 DRAFT Budget: Scott distributed a copy of the FY'16 — '17 Budget in DRAFT form to everyone. Scott reviewed all three properties and highlighted budget items and key increases/decreases in line items. Scott reported he will ask for an increase (or remain steady) in subsidy dollars for the City Market and Stadium; however a decrease in subsidy dollars for Lansing Center. Scott stated he is still working on Lansing Center,but it will be aggressive. Scott stated he LEPFA Board of Commissioners Meeting Page 6 January 24, 2017 anticipates a strong year due to the number of events in the three year cycle rotation and already on the books. D. PERSONNEL COMMITTEE: Scott reported on behalf of Commissioner Dobernick and noted the committee met last week to discuss FLSA,the Committee also discussed vacant positions and current CBA negotiations.A discussion regarding the President &CEO annual review was held as well. The OSHA report was reviewed and Scott reported the Health Care Committee will begin meeting soon. E. STRATEGIC PLANNING COMMITTEE: Commissioner Barron reported the Committee met last week and discussed scheduling of the next Ad Hoc Committee meeting,the hotel agreement with The Radisson Hotel and an update on the Baird agreement was provided.A long-term CIP discussion was held as well. F. VICE-PRESIDENT/STAFF COMMENTS: 1. Tristan Wright: Tristan stated LED lighting was installed at the City Market noting there should be a reduction in expenses related to the new lighting. Tristan is also working on combining contracts to reduce expenses; elevator contracts and the Nelson Trane contract are two under consideration. The Safety Committee will present awareness tips during Employee of the Month presentations for 2017. Tristan thanked everyone who supports the MLK Luncheon and congratulated the F&B Department on a job well done. Commissioner Bowen asked if Lansing Center lighting has been converted to LED lighting. Tristan stated Lansing Center has not converted yet, however, that project is in the works. 2. Paul Ntoko: Paul reported his department if off to a strong start for the second half of the year. Meetings with Groesbeck will begin soon to discuss the upcoming season. Commissioner Bowen asked if Paul is focusing on grab and go or specialty coffee options for Lansing Center. Paul stated we have reached out to Biggby and no interest on their end. Grab and Go items have been added, however, the challenge is our building calendar doesn't allow for consistent business. 3. Heidi: Heidi reported she is working on health care for the new year; with meetings to begin next month. Interviews are in the works for filling vacant positions. Heidi provided an update on the LEPFA U session held in December as well as what is planned for 2017. LEPFA Board of Commissioners Meeting Page 7 January 24, 2017 VII. COMMISSIONER&STAFF COMMENTS: A. Commissioner Barron: Reported he attended a large wedding at Lansing Center on New Year's Eve and commended the staff on a great event. VIII. OLD BUSINESS: None. IX. NEW BUSINESS: None. X. ADJOURNMENT: The meeting was adjourned at 9:12 a.m. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: MARCH 28, 2017 LANSING CENTER - GOVERNOR'S ROOM Respectfully Submitted, Shelly Busse, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING February 28,2017 MINUTES At 8:04 a.m. Vice Chairman James W. Butler III called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue;Lansing,Michigan 48933. COMMISSIONERS PRESENT: Tim Barron, Cindy Bowen, Eric Brewer (Ex-Officio), James W. Butler III,Price Dobernick, Charles Janssen,and Linda Sims-Wright. COMMISSIONERS EXCUSED: Angela Bennett (Ex-Officio), Robert Johnson (Ex-officio), Tim Kaltenbach, and Charles Mickens. OTHERS PRESENT: Heidi Brown, Scott Keith,Jennifer McFatridge, Paul Ntoko, Audrey Tipper, and Tristan Wright-Lansing Entertainment&Public Facilities Authority; and Jack Alexander II. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. III. PUBLIC COMMENT: Jack Alexander noted at the stadium, on the Larch Street side at the first opening there is a broken waste can that has been there for a month; Scott Keith will inform the Lugnuts of the can. Jack questioned the new board and the cost and if it would be ready by opening night; Scott Keith stated he is unsure the board will be ready for the opening night festivities, including the Hall of Fame. Scott noted he will be unable to attend,but Tristan Wright will be on hand and the Lugnuts are handling the event, including invitation, and the event that may include a drumline competition. *At 8:06 a.m.Commissioner Linda Sims Wright entered the meeting. Scott noted the board repair cost quoted by Daktronics is $128,000 and he is discussing costs with the Lugnuts;this may be delayed and may occur in the following fiscal year. V. APPROVAL OF THE MINUTES OF JANUARY 24, 2017: Approval of the minutes as published. MOTION: Commissioner Barron SECOND: Commissioner Sims-Wright Motion approved. VI. REPORTS: A. CHAIRMAN'S REPORT: None. B. FINANCE COMMITTEE REPORT: Secretary/Treasurer Cindy Bowen reported the committee met yesterday and requested Jennifer McFatridge review January's chart information as follows: 1. Lansing City Market: January results are as follows: Chart 1: The chart in the upper left hand corner shows a three (3) year comparison of actual revenue compared to budget for January and a three year view of year-to-date (YTD) actuals compared to year-to-date (YTD)budget. Operating Revenue has increased by 7%compared to last year Chart 2: The chart in the upper right hand corner shows a three (3) year comparison of actual expense compared to budget for January, as well as a three (3) view of YTD actuals compared to YTD budget. Overall, monthly expenses were under budget by 2.5%; YTD actual Operating Expense was 10% under YTD budget. January 2017 compared to January 2016 Utilities increased about 10%; additionally there is a City Market bathroom painting expense that did not occur in 2016. LEPFA Board of Commissioners Meeting Page 2 February 28,2017 Chart 3: The chart in the lower left hand corner is a view of the City Market through January 2017 compared to the fiscal year budget. Expenses are at 50% of the Expense Budget with 5 months remaining the fiscal year. Revenue is captured at 53% of the Revenue Budget with 5 months remaining in the fiscal year. At the end of seven (7) months excess revenue over expense is ahead of budget by$8,725. Chart 4: This chart shows a three (3) year comparison of Unreserved Equity. Through seven (7) months, Unreserved Equity is climbing, but has work to do to reach FY15 numbers. 2. Cooley Law School Stadium: January results are as follows: Chart 1: The chart in the upper left-hand corner shows a three (3) year comparison of Actual Expense compared to budget for January, and a three (3) year view of YTD Actuals compared to YTD Budget. Overall,the monthly budget was exceeded by a 1/2%; while YTD Actual Expenses were under budget by nearly 1%. YTD Operating Expense has increased by nearly 12%, compared to last year. The largest contributing factor for the increase in Expense is Utilities. Comparing January 2016 to this year, Electric is up 33%. This month also reflects the expense for the suite, last year this expense appeared in February. Chart 2: The chart in the upper right-hand corner is a view of the stadium is through January 2017, compared to the fiscal year budget. The stadium Actual Operating expenses to date reflect 59% of the annual budget with 5 months remaining in the year. Chart 3: This chart shows a 3 year comparison of Unreserved Equity. Through seven months,unreserved equity dipped below pace with FYI 6,but is showing an upward trend represented historically same time of year. 3. Lansing Center: January results are as follows: Chart 1: This represents a three (3) year comparison of Actual Revenue compared to budget for January, and a three (3) year view of YTD actuals compared to YTD budget. Operating Revenue has increased by 26%compared to last year. Chart 2: This reflects a three(3)year comparison of Actual Expense compared to budget for January, and a three (3) year view of YTD actuals compared to YTD budget. YTD Operating Expense has increased by 10% compared to last year with the largest impact being Event Expenses. Chart 3: The blue part of the bar represents our FY17 YTD Budget, while the orange part of the bar represents the amount that we exceeded or fell short of meeting the budget for revenue. Chart 4: The blue part of the bar represents our FY17 YTD Budget, and the orange part of the bar represents the amount that we exceeded or fell short of meeting the budget for expense. Chart 5: This represents a three (3) year comparison of Unreserved Equity.Through seven (7) months, unreserved equity is on an upward climb almost reaching our high point from FYI 5. Chart 6: This represents a three (3) year comparison of Unearned Revenue-Advance Rent which is an indicator of future business. Unearned Revenue-Advance Rent has plateaued through the last three (3) months and has work to do to reach the numbers reflected in FYI 5. Chart 7: This is a view of the Lansing Center through January when compared to the fiscal year budget. The Lansing Center expenses are 65% of the expense budget with 5 months remaining in the year. At the end of seven(7)months, expenses are up to budget. LEPFA Board of Commissioners Meeting Page 3 February 28,2017 The Lansing Center has captured 67% of the revenue budget with 5 months remaining in the fiscal year. At the end of seven (7) months, excess revenue over expense is ahead of budget. Commission Sims-Wright asked if we will exceed budget between now and December; and it was explained that that if expenses rise and exceed revenue it could be the case but revenue will be the big factor. Secretary/Treasurer Cindy Bowen thanked Jennifer McFatridge for her hard work on the charts. She further explained that utilities are up at the stadium due to activity at the View. Secretary/Treasurer Bowen also complimented Paul Ntoko and the team on the food inventory and the overall performance for January. Commissioner Barron clarified his understanding of Secretary/Treasurer Bowen's compliment and this that sales increased without increasing the inventory; Commissioner Bowen explained it is due to management of ordering and usage. Applause was given for Paul. Motion to accept the January, 2017 financials for the Lansing City Market, Cooley Law School Stadium, and Lansing Center, as presented: MOTION: Commissioner Bowen; SECOND: Commissioner Barron Unanimously approved. C. PRESIDENT& CEO'S REPORT: Scott Keith reported the following: 1. Miscellaneous: Scott noted that the Food and Beverage team has been operating without an Executive Chef and is doing very well. He also noted January utility numbers are good due to Tristan Wright and the team monitoring utilities as well as favorable weather. 2. Annual Report: Copies of the 2016 Annual Report were distributed and the high lights were reviewed. Scott noted the report will be used for an advertorial in April. Points emphasized were the renewal of the agreement with the City; economic impact statement; room nights; visitors; and at the City Market the increase in visitors and occupancy. Groesbeck Golf Course, Common Ground Music Festival, and community impact including food movers and staff contribution was mentioned. Sponsors, goals, and Board of Commissioners and Staff were also listed. The photos were complimented. Scott noted a 360 virtual tour—which we are working on in conjunction with the GLCVB. Web analytics were included and it was noted most of the traffic on the web comes from the GLCVB web site. Vice Chair Butler asked for an update on the wayfinding program; Scott noted it is being routed through DLI and is awaiting funding. 3. Vacancy: Scott reported there are five (5) interviews scheduled for the VP of Sales and Services. Secretary/Treasurer Bowen noted there are multiple strong candidates. 4. Administrative Report: Scott indicated events are up which helps with Event Days numbers. LEPFA Board of Commissioners Meeting Page 4 February 28,2017 5. Budget: The draft budget was submitted with CIP which includes an alternate request for the marquees—however, $100,000 was not expected for the cost of replacement. 6. Lug-nuts Opening Day: Opening Day is April 8 and the suite will be available. Scott noted he will not be attending due to previously scheduled travel out of state; Tristan will work with the Lugnuts,however our involvement should be minimal. 7. Pace Report: 2017/18 budget is in place and now will proceed month by month to address monthly goals. 8. Photo Op—June: Scott reminded Board members that group and individual photos will be taken in June. Vice Chairman Butler asked where photos will be displayed, Scott explained on the reader boards and in the Administrative Office; however, he was open to suggestions and is contemplating locations. Commissioner Butler noted most organizations post photos in the main lobby area. 9. Mayoral Election: Scott noted the Mayor is not seeking re-election. Board reappointments may be impacted however, Scott is recommending renewal of appointments for continuity and suggested Board members converse with the Mayor and the Administration regarding their appointments as well. 10. Common Ground: The contract with MI Entertainment Group (formerly Meridian) is up for amendment. D. PERSONNEL COMMITTEE: Committee Chair Price Dobernick reported he, Linda Sims Wright and Scott Keith met last week. Topics discussed include CBAs — IATSE is completed, UAW awaits ratification; and AMTA is stalled. The Executive Chef position has been filled by Patrick Shaffer and an offer has been made and the Chef will be introduced at the March Board Meeting.The Committee discussed the President &CEO's evaluation. The Committee also discussed the upcoming renewal of Healthcare Benefits as well as the progress of the Vice President of Sales position. Chairman Dobernick moved that the report as presented be approved SECOND: Commissioner Sims-Wright Unanimously approved. E. STRATEGIC PLANNING COMMITTEE: Commissioner Janssen stated that the committee met and discussed specific items, including the proposed budget process and GLCVB and full funding mechanisms for the Lansing Center. Scott noted the funding mechanisms are being reviewed in a study with Brian Lefler and is being discussed with Jack Schripsema, Andy Schor as well as the expiration of the hotel agreement and parking. Scott noted the Committee is also considering a strategic plan for the facility and facilitator recommendations should be forwarded to Scott Keith. Motion was made by Commissioner Janssen to accept the report as presented SECOND: Cominissioner Bowen Unanimously approved. F. VICE PRESIDENT/STAFF REPORTS: 1. Jennifer McFatridge: Jennifer reported she is working on the paperwork for the liquor license for the Chili Cook off and Common Ground Music Festival. 2. Tristan Wright: Tristan reported the photographers for the 360 photo/virtual tour were here last week. Signs for the back of the house docks/entrances have been updated and the team continues to move forward. Scott referenced the signage in the lower lobby compliments of the GLCVB. LEPFA Board of Commissioners Meeting Page 5 February 28,2017 3. Paul Ntoko: Paul stated an offer has been made to a candidate for the Executive Chef s position. Paul noted he is working on department standards. A meeting is scheduled for tomorrow regarding Groesbeck promotions. Commissioner Bowen questioned concessions trends for healthy eating. Paul noted we work with the customers and offer healthy items, but are also looking at minimizing waste of healthy option and we tailor options to groups; an example is Shuto Con; healthy options were offered, however it wasn't successful. 4. Heidi Brown: Heidi commented that her report was well reviewed in previous reports. We have filled the Executive Chef position, and open positions include the VP of Sales and Services and the HR/Payroll Coordinator position. Vice Chairman Butler questioned how long the position had been vacant and how we are progressing— Heidi indicated it had been open since January 11, the position has been posted and we are receiving applications. 5. Scott Keith: Scott noted he has tickets available as been shared(Swap Meet). VII. COMMISSIONER AND STAFF COMMENTS: A. Audrey Tipper: Audrey reported there is space at the Market and if anyone is interested or if anyone knows of anyone potentially interested to send them to Audrey. B. Commissioner Janssen: Commissioner Janssen thanked and complimented Jennifer McFatridge on the improvement of the Finance Committee report with the graphs and congratulated Paul Ntoko on the hiring of the Chef. C. Eric Brewer: Eric complimented the Board on the way the information is structured at Board meetings. D. Commissioner Linda Sims-Wright: Commissioner Sims-Wright complimented the layout of the Annual Report, noting it is easy to read and asked Paul if there is any chance of a temporary food vendor at the City Market during Shuto Con. E. Tristan Wright: Tristan indicated staff is doing well, and noted, "If you see something, say something." F. Commissioner Barron: Commissioner Barron complimented the graphics and annual report. April 81h is Opening Date of Lugnuts. Promise Dinner is April 27th. G. Vice Chairman Butler: Vice Chairman Butler complimented Scott and the leadership team. VIII. OLD BUSINESS: No report. IX. NEW BUSINESS:No report. X. ADJOURNMENT: At 8:55 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR MARCH 28,2017 LANSING CENTER—GOVERNOR'S ROOM Respectfully submitted, Heidi Brown,Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING March 28,2017 MINUTES At 8:oo a.m. Chairman Tim Kaltenbach called the meeting to order in the Governor's Room of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933• COMMISSIONERS PRESENT: Tim Barron, Cindy Bowen, Eric Brewer (Ex-o icio), James W. Butler III, Price Dobernick, Charles Janssen, Robert Johnson �g-x-O€ficio),, Tim-Kaltenbach, Charles Mickens and Linda Sims-Wright. : 'r COMMISSIONERS EXCUSED: Angela Bennett(Ex-Officio). OTHERS PRESENT: Heidi Brown, Scott Keith, Jennifer McFatridge, Sul=Rtok_p',. Audrey Tipper, Shelly Busse, Tristan Wright and Patrick Shaffer M", If-hsing Entertainment&Public Facilities Authority; and Jack Alexander. 3 III. ESTABLISHMENT OF THE AGENDA: There were no changes to the agenda. IV. PUBLIC COMMENT: Jack Alexander asked Scott to confirm the plan to spend $120,000 for new digital boards at the Stadium is still in place. Jack also asked Scott to discuss how much the Lugnuts intend to pay for the boards. Scott stated the money for the boards will not be available until next year.This expense was not able to be put in the year's budget. Scott stated he is working with the Lugnuts on how the cost will be split. *Commissioner Mickens entered the meeting at 8:oi a.m. V. APPROVAL OF THE MINUTES OF FEBRUARY 28, 2oi7: Approval of the minutes as published. MOTION: Commissioner Barron SECOND: Commissioner Dobernick Motion unanimously approved. VI. REPORTS: A. CHAIRMAN'S REPORT: None. *Commissioner Bowen entered the meeting at 8:03 a.m. B. FINANCE COMMITTEE REPORT: Secretary/Treasurer Cindy Bowen reported the committee was not able to meet yesterday and requested Jennifer McFatridge review February financial information as follows: LEPFA Board of Commissioners Meeting Page 2 March 28, 2017 Lansing City Market This chart represents a 3 year comparison of actual revenue compared to budget for February, as well as a 3 year view of YTD actuals compared to YTD budget.YTD Operating Revenue has increased by$4,80o compared to last year . Chart 2: City Market Expense Review This chart represents a 3 year comparison of actual expense compared to budget for February, as well as a 3 year view of YTD actuals compared to YTD budget. Overall, our monthly expenses came in under budget by $1,700 while our YTD actual Operating expense came in $17,000 under YTD budget. Our mild weather for February resulted in a savings of almost $60o in our Utility Expense when compared to last year. Chart 3:YTD Revenue and Expense compared to Annual Budget This chart is a view of where the City Market is through February when compared to the fiscal year budget. The market has contained its expenses to 57% of the expense budget with 4 months remaining in the year. Switching to revenue, the market has captured 6o% of the revenue budget with 4 months remaining in the year. At the end of 8 months, excess revenue over expense is ahead of budget. Chart 4: City Market Unreserved Equity This chart shows a 3 year comparison of Unreserved Equity. Through 8 months, unreserved equity continues to climb,but has work to do to reach the numbers reflected in FY15. Cooley Law School Stadium Chart 1: Cooley Law School Stadium Expense Review Chart 2:YTD Actual Expense compared to Annual Budget This chart is a view of where the stadium is through February when compared to the fiscal year budget. The stadium actual operating expenses to date reflect 66% of the annual budget with 4 months remaining in the year. Chart 3: Cooley Law School Stadium Unreserved Equity This chart shows a 3 year comparison of Unreserved Equity. Through 8 months, unreserved equity dipped below pace with FY16,but continues to reflect an upward trend represented historically same time of year. LEPFA Board of Commissioners Meeting Page 3 March 28, 2017 Lansing Center This represents a 3 year comparison of actual revenue compared to budget for February, as well as a 3 year view of YTD actuals compared to YTD budget.YTD Operating Revenue has increased by 22% or$739,o89 compared to last year. Some events that occurred in February include Women's Expo, Deer and Turkey, and MI Republicans. Chart 2: Lansing Center Expense Review This reflects a 3 year comparison of actual expense compared to budget for February, as well as a 3 year view of YTD actuals compared to YTD budget. YTD Operating Expense has increased by 9% compared to last year with the largest contributing factor being Event Expenses. Chart 3: Lansing Center Revenue Budget to Actual The blue part of the bar represents our FY17 YTD Budget,while the orange part of the bar represents the amount that we exceeded or fell short of meeting the budget for revenue. February Revenue has exceeded budget by more than $92,000. Chart 4: Lansing Center Expense Budget to Actual The blue part of the bar represents our FY17 YTD Budget,while the orange part of the bar represents the amount that we exceeded or fell short of meeting the budget for expense. February Expenses has exceeded budget by more than $39,000 This represents a 3 year comparison of Unreserved Equity. Through 8 months, unreserved equity continues an upward climb exceeding our high point from FY15. Chart 6: Lansing Center Unearned Revenue-Advance Rent This represents a 3 year comparison of Unearned Revenue-Advance Rent which is an indicator of future business. Unearned Revenue-Advance Rent has plateaued through the last three months and has work to do to reach the numbers reflected in FY15. *Robert Johnson(Ex-Officio)entered the meeting at 8:og a.m. This is a view of where the Lansing Center is through February when compared to the fiscal year budget. The Lansing Center expenses are 74% of the expense budget with 4 months remaining in the year. At the end of 8 months, expenses are up to budget. Switching to revenue,the Lansing Center has captured 8o% of the revenue budget with 4 months remaining in the year. At the end of 8 months, excess revenue over expense is ahead of budget. LEPFA Board of Commissioners Meeting Page 4 March 28, 2017 Secretary/Treasurer Cindy Bowen made a motion to accept the February 2017 financials for the Lansing City Market, Cooley Law School Stadium and the Lansing Center be received as published and further that the monthly expenses for each entity be accepted. MOTION: Commissioner Bowen ACCEPT: Commissioner Janssen Motion unanimously carried 2. Liquor License Resolutions: Jennifer stated she is in the process of completing applications for liquor licenses for Common Ground and Chili Cook-Off. Resolutions from this Board are required for these applications. Jennifer asked for a motion to approve the liquor license applications as presented. MOTION: Commissioner Barron SECOND: Commissioner Mickens C. PRESIDENT&CEO'S REPORT: Prior to Scott providing his report, he asked Paul to introduce Patrick Shaffer, LEPFA's new Executive Chef. 1. VP of Sales/Services: Scott reiterated the hiring of Scott Horgan as the new VP of Sales&Services. Scott Horgan had a vacation scheduled prior to his hire date and is out of the office this week,but returns next week. *Commissioner Sims-Wright entered the meeting at 8:13 a.m. 2. Common Ground: Sunday night's hip-hop artist announcement will be made this afternoon; Big Sean and Fetty Wap are scheduled to perform. Scott stated this should be one of the biggest hip-hop nights Common Ground has ever had. Scott reported he and Kevin met with the Playmakers Foundation last week to discuss a "Rock `n Roll" 5K event to replace the Color Run this year. Proceeds of the event will benefit the Playmakers Foundation and Center Park Productions. 3. Upcoming Dates: Lugnuts Opening Day is scheduled for Saturday, April 8th. The suite is available to Board members; please let Shelly or Scott know if interested in attending. The Lansing Promise Dinner is scheduled for April 27th at Lansing Center. LEPFA has a table for this event; if interested in attending, please let Shelly or Scott know. Tickets are available for the Capitol City Film Festival,which is scheduled for next week. 4. Groesbeck: LEPFA has been asked to assume operations of the golf course effective 1/1/18. Scott reported he is working on a draft budget and contract; these will be brought to a future Board meeting for review. Having LEPFA assume operations of the golf course could save the City between $150,000 and $300,000 annually. Scott noted improvements to the golf course include a new entrance and club house/deck. Commissioner Butler asked how LEPFA operating the course saves the City LEPFA Board of Commissioners Meeting Page 5 March 28, 2017 money. Scott stated a combination of wages/salaries and benefits packages saves money. 5. Strategic Planning: Scott noted he is working with one consultant and will meet with another soon. Commissioner Bowen asked Scott if the PACE report is still being reviewed. Scott stated, yes, he receives the report weekly and it is posted in the Board Portal for each monthly LEPFA Board meeting. D. PERSONNEL COMMITTEE: Committee Chair Price Dobernick reported the Committee met last week. Topics discussed include annual staff evaluations and the President/CEO evaluation. An email will be sent to each Board member soon regarding President/CEO evaluation and then a Closed Session will be held during the June Board meeting. E. STRATEGIC PLANNING COMMITTEE: No report. F. VICE PRESIDENT/STAFF REPORTS: 1. Tristan Wright: Tristan reported on a security and safety conference she attended last week in Dallas. Tristan stated she earned a certificate of completion for this course. 2. Paul Ntoko: Paul reported the kitchen has been at high volume and Chef Patrick has been doing very well. Working on operational standards, checks and balances; as well as a second cycle of menu updates. Groesbeck preparations are in place for regular season opening. 3. Heidi Brown: Heidi reported she has received notice of a vacant Event Coordinator/Catering position available. The Health Care Committee met for the first time last week to review benefits renewal for the upcoming year. 4. Audrey Tipper: Audrey reported on the success of the "Ladies Day Out" event which was held this past Saturday at the Market.Audrey stated there were several hundred people in attendance and the vendors left very happy. Audrey reported she is nearly finished with the Grand Concert Series and is looking for an opening act for some of the shows. Audrey attended a women's organization entrepreneurship seminar and met a few women who may be future potential vendors for the Market. 5. Scott Keith: Scott announced Commissioner Sims-Wright will be receiving a "Pillar of the Community" award. VII. COMMISSIONER AND STAFF COMMENTS: A. Commissioner Janssen: Commissioner Janssen thanked and complimented staff on doing a fabulous job on the budget and noted he appreciates the hard work. B. Commissioner Mickens: Commissioner Mickens stated he likes the new LEPFA Board of Commissioners Meeting Page 6 March 28, 2017 Finance reporting system. C. Eric Brewer: Stated he feels prepared for the budget hearings since the budget information has been provided. D. Commissioner Butler: Commissioner Butler stated, "the leaders are leading" and he hears nothing but positive comments about Lansing Center and LEPFA. E. Commissioner Sims-Wright: Commissioner Sims-Wright stated she appreciates the updates provided to the Board between monthly meetings. F. Robert Johnson: Excited about Big Sean and Fetty Wap as hip-hop artists at Common Ground this year. G. Commissioner Barron: Stated it's great to hear good things about LEPFA and the three properties. VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: No report. X. ADJOURNMENT: At 8:54 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR APRIL 25, 2017 LANSING CENTER - HALL A Respectfully submitted, Shelly Busse, Recording Secretary LANSING ENTERT`MNt%lE1NT &iPi � FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING MINUTES At 8:05 p.m., Chairman Tim Kaltenbach called the meeting to order in Hall A of the Lansing Center;located at 333 E. Michigan Avenue, Lansing, MI 48933. COMMISSIONERS PRESENT: Tim Barron,Angela Bennett (Ex-Officio), Cindy Bowen, Eric Brewer(Ex-Officio),James W. Butler III, Price Dobernick, Robert Johnson(Ex-Officio), Tim Kaltenbach, Charles Mickens and Linda Sims-Wright. COMMISSIONERS EXCUSED: Charles Janssen OTHERS PRESENT: Scott Keith, Scott Horgan, Heidi Brown, Paul Ntoko,Tristan Wright, Shelly Busse,Audrey Tipper— Lansing Entertainment&Public Facilities Authority, and Jack Alexander. III. ESTABLISHMENT OF THE AGENDA: No changes. IV. PUBLIC COMMENT: V. APPROVAL OF THE MINUTES FOR MARCH 28, 2017: Chairman Kaltenbach asked for a motion to approve the meeting minutes from last month's meeting. MOTION: Commissioner Butler SUPPORT: Commissioner Mickens Motion unanimously carried. VI. REPORTS: A. CHAIRMAN'S REPORT: No report. B. SECRETARYJTREASURER'S REPORT: Secretary/Treasurer Cindy Bowen reported the Finance Committee met yesterday to review March financial information. In Jennifer's absence, Scott Keith, President&CEO, provided the financial update through the month of March 2017. 1. March 2017 Financial Statements: a. Lansing City Market: Total Operating Revenue year-to-date is $7509 compared to the prior year's amount of$70,643.Total Expenses year-to-date is $121,387 compared to the prior year's amount of$115,658. Excess Revenues over Expenses year-to-date is a $16,892 compared to last year's loss amount of ($1,114)• LEPFA Board of Commissioners Meeting Page 2 April 25, 2017 Balance Sheet: Total Cash is $80,153 compared to last year's amount of $62,526.Total Current Assets is $85,356 compared to last year's amount of $79,992.Accounts Receivable is $3,516 compared to the prior year's amount of $16,121.Accounts Payable is $29,251 compared to the prior year's amount of $49,769• Unreserved Equity is $28,271 compared to the prior year's amount of $12,266. Budget vs.Actual: Total Operating Revenue is behind budget by($9,298).Total Operating Expenses is ahead of budget by $23,188. Excess Revenues over Expenses year-to-date is ahead of budget by$13,890. b. Cooley Stadium: Total Operating Revenue year-to-date is $3,100 compared to last year's amount of$3,334•Total Expenses year-to-date is $268,793 compared to the prior year's amount of$243,946. Excess Revenues over Expenses is a loss of($11,029) compared to last year's loss amount of($1,967). Balance Sheet: Total Cash is $199,244 compared to last year's amount of $113,285.Total Assets are $438,758 compared to the prior year's amount of $235,813.Accounts Receivable is $151,495 compared to the prior year's amount Of$30,884. Unreserved Equity year-to-date is $71,691 compared to the prior year's amount of$83,719. Budget vs.Actual: Total Operating Revenue year-to-date is behind budget by ($1,519).Total Expenses are over budget by($3,789). Excess Revenues over Expenses are behind budget by($5,309)• c. Lansing Center: Total Operating Revenue year-to-date is $5,033,929 compared to the prior year's amount of$4,010,847.Total Expenses year-to -date is $5,545,521 compared to the prior year's amount of$4,956,614. Excess Revenue over Expenses is $367,013 compared to the prior year's loss amount of ($96,564)• Balance Sheet: Total Cash is $61,113 compared to last year's amount of $64,182.Accounts Receivable is $1,400,649 compared to the prior year's amount of$601,517. Unearned Revenue/Advance Rent is $315,569 compared to the prior year's amount of$334,347• Unreserved Equity year-to-date is $1,451,136 compared to the prior year's amount of$785,600. LEPFA Board of Commissioners Meeting Page 3 April 25, 2017 Budget vs.Actual: Total Operating Revenue is ahead of budget by$1,309,253• Total Expenses are over budget by($846,185). Excess Revenue over Expenses is ahead of budget by $471,305. Notes for City Market: Salaries/Wages higher this year due to 3 pay cycles in the month of March., UAW increases, and staff increases.There was also a credit in this line item from the previous Market Manager. Notes for Cooley Law School Stadium:The freezing/thawing back and forth has caused some maintenance issues for the structure.We will work hard to get this line item back within budget guideline.The turf project expenses are included in this year's expenses. This amount will be made up in April due to the large amount of Opening Day ticket sales. Overtime is high due to opening day; as well as utilities due to weather,turf project, and repairs to POS system. Notes for Lansing`Center: Salaries/Wages line item higher due to 3 pay cycles in March,filled vacant VP of Sales/Services and Executive Chef positions, UAW rate increases along with high labor call for Shuto Con event. Revenue is up, so, expenses are also higher. Food&Beverage has already their budget for the year and Lansing Center has already hit budget as well. Scott stated this has been a very strong year; expenses will continue to be monitored. Secretary/Treasurer Cindy Bowen asked for a motion to accept the March 2017 financials for the Lansing City Market, Cooley Law School Stadium and the Lansing Center be received as published and further that the monthly expenses for each entity,be accepted. MOTION: Commissioner Butler ACCEPT: Commissioner Barron Motion unanimously carried. C. PRESIDENT &CEO REPORT: Scott Keith, President&CEO, reported the following: 1. Tickets Available: There are two tickets available to the Community Pillar Awards Dinner(Commissioner Sims-Wright will be receiving an award). The Lugnuts Suite is also available for tomorrow's Noon game. If anyone is interested in these tickets, please contact Scott or Shelly. 2. Strategic Planning: Scott noted the emails sent yesterday regarding strategic planning for the Board and Executive team. Scott stated he would like input regarding the Bernadette Johnson agreement. Scott noted he would like to make a decision by next month; to begin in August or September.An Ad Hoc Committee meeting is scheduled for late June. LEPFA Board of Commissioners Meeting Page 4 April 25, 2017 3. Budget Presentation: Scott reported on LEPFA's presentation that took place last Monday night during Council. Scott stated it was a challenging presentation. Council asked for additional information on the Groesbeck agreement; other than that,very few questions were asked. 4. Miscellaneous: Scott reviewed a press release that covers newly hired staff to LEPFA.A golf guide for Groesbeck inside Lansing State Journal.A Groesbeck article was also included. LEPFA received a thank you note from Melissa Jackson (of Foster Swift) regarding the passing of her father. Scott commented on the Silver Bells picture that was given to sponsors this year; passed this around for all to see. 5. Hotel/Parking Update: Scott reported he and Bob Johnson and Kenric Hall met last week to discuss. 6. Common Ground: Scott reviewed the schedule for this year's line-up and noted the final headliner for this year's event will be announced later this week. D. PERSONNEL COMMITTEE: Commissioner Dobernick reported the Committee did not meet this month; noting the Committee is working on the President/CEO annual evaluation. Commissioner Dobernick stated he will send an email to all later this week. E. STRATEGIC PLANNING COMMITTEE: Scott Keith reported on what the Committee is looking for in a Strategic Planning Facilitator.The Ad Hoc Committee meeting has been moved to late June.The Committee discussed the future of the City Market, hotels and parking. F. STAFF REPORTS —VICE PRESIDENTS/STAFF: 1. Scott Horgan: Scott introduced himself and provided a summary of his background. Scott thanked everyone for their warm welcomes and said he is excited to be a part of LEPFA. His team is working on groups for 2019 and 2020. Scott also reviewed renewals for Michigan Townships and Nursery& Landscaping. 2. Paul: Paul reported the month of April will end strong. Newly hired Executive Chef is doing very well.The feedback received regarding Michigan Townships Association has been positive. 3. Heidi: Heidi reported she is working on annual healthcare renewal; new benefits begin June 1st. LEPFA has gone 57 days with no worker's comp claims. Heidi attended the Michigan HR Day last Wednesday and an FLSA update provided by Lansing Chamber— noting the message is to "sit tight". LEPFA policies are under review; specifically,Anti-Harassment and Workplace Violence. Heidi reminded everyone that tomorrow is Administrative Professionals Day. LEPFA Board of Commissioners Meeting Page 5 April 25, 2017 4. Scott Keith: Scott stated LEPFA has a table for the Children's Trust Dinner scheduled for May 17th. If anyone is interested in attending this event, please contact Shelly or Scott. Scott reviewed the dock area signage that was recently, replaced.A press Release will go out in conjunction with the CVB regarding the new staff changes from LEPFA to CVB. Scott will attend Venue Connect this summer and one topic is the challenge of managing negative comments on social media. 5. Audrey Tipper: Audrey discussed upcoming events including: WKAR Pop-Up Stories this Thursday night, Mother's Day Tea on May 13th, Picnics at the Market on Wednesdays and the Grand Concert Series which begins in June.Audrey will provide a schedule soon. Commissioner Sims-Wright noted the availability of space inside the City Market and encouraged anyone looking for retail space to look at the City Market. VII. COMMISSIONER&STAFF COMMENTS: A. Chairman Kaltenbach: Chairman Kaltenbach noted a Nominating Committee for the upcoming 2017- 2018 Board needs to be formed and Commissioner Bowen has offered to Chair the Committee along with Commissioner Mickens as a member. B. Commissioner Bowen: Commissioner Bowen stated the best practice in the hotel industry is to respond quickly to negative comments on social media. C. Commissioner Barron: Commissioner Barron stated he loves the painted piano at the City Market. D. Commissioner Sims-Wright: Commissioner Sims-Wright thanked LEPFA for supporting the Community Pillar Awards. Noted City Market received a lot of traffic last week from attendees at events at Lansing Center. VIII. OLD BUSINESS: None. IX. NEW BUSINESS: None. X. ADJOURNMENT: At 8:41 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: JUNE 27, 201'7—LOCATION TBD Respectfully Submitted, Shelly Busse, Recording Secretary .4 �G . Chris Swope Lansing City Clerk Cabaret License Application tClty Codified Ordinances—Chapfer 803.1—808.10) htloalml-lenslnp clylpp�us,cxtmli71Jf3uslrtess-Licenses Applicant Checklist: (Ensure All Items Completed) Payment: 0 Treasury Form Completed: Application Completed: ANNUAL NON-REFUNDABLE LICENSE FEE: $500.00 Expires on May 1 at Annually. Business Name DBA Business Phone Number Secondary phone Number 7-/'7 ...-4-9 C J77 99�7-7,--70 9 Business Address Gity State,Zip Mailing Address(If different) Description of Premises Busingsss'Owner Owner Phone Number q L_. / Sir 7 Owner Address City state,Zip 69 0 W. A�r owner Email Address Lansing Clty Clerk's Dfflce Ninth Floor,City Hall,124 W.Michigan Ave„Lensing,Ml 48933A698 617.403-4131-W-377t000 FAX www.lt InomLnovPolark•city clerk calansinn mi s lov_ 6:0ark StafMlcensosTuslnese LlcansulCabnrot.docx (Rev,2117) Pogo 1 of 4 Same as above: Applicant Name Phone Number Applicant Address T Ity state,Zip -- Applicant Email Address I certify that I, the applicant, do not owe any personal taxes to the City of Lansing I certify that there are no unpaid personal property taxes on any personal property, fixtures, or effects that will be used in the operation of this cabaret. hereby agree and consent that any member of the Lansing Police Department or the Fire Department, Inspectors from the County Health Department, City of Lansing Building Safety Division or other officers of the City of Lansing may enter and Inspect any part of such premises including the locked portions thereof, and further agrees to abide by and comply with the laws of the United States and the State of Michigan and the rules and regulations of the Liquor Control Commission relative to th sal® of ai oh o liquoj• Applicant Sign re Date Lansing City Clerk's pffico Ninth Floor,Gty Hall,V4 W,Michigan Ave„Lansing,MI 46933-1696 517-03-4131•617-377-DO68 FAX www.lansinamLnov/clerk y.clnrk/tt�ianfiing.mi.gov 8:1CIerk_StafAt.iconses\Busiiiess LlcenseslCabaret,doex (Rev.2A7) Page 2 of 4 OFFICAL USE ONLY Approvals: _ /2 (1- 1,, Police Q ment Da e Fire Department Date City Treasurer Date PND— Building Safety Date PND -Zoning Date Health Department Date OFFICIAL USE Amount paid: Date paid: Llcense 4: Lansing City Clerk's Orko Ninth Floor,City Hall,124 W.Michigan Ave.,Lensing,MI 48933.1693 617-4834 131-517-377-0068 FAX wvnv,lgnsinarnUovlclork•51 ggv_ S:1CIerk StafftLirenses\f3usinesa LlcenaarAOabareLdocx (Rev,7J17) Page 3 of 4 LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING JUNE 27, 2017 MINUTES At 8:oo a.m. Chairman Tim Kaltenbach called the meeting to order in Hall C of the Lansing Center; 333 E. Michigan Avenue; Lansing, Michigan 48933• COMMISSIONERS PRESENT: Tim Barron, Angela Bennett (Ex-Officio), Eric Brewer (Ex-Officio), James W. Butler III, Price Dobernick, Charles Janssen, Robert Johnson(Ex-Officio),Tim Kaltenbach, Charles Mickens and Linda Sims-Wright. COMMISSIONERS EXCUSED: Cindy Bowen OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko, Tristan Wright, Shelly Busse - Lansing Entertainment & Public Facilities Authority; Kristy Doak — Greater Lansing Convention & Visitors Bureau, Jody Washington — Lansing City Council, Eric Lacy — Lansing State Journal, Harrold Leemun, Elo Wittig, and Jack Alexander. III. ESTABLISHMENT OF THE AGENDA: Chairman Kaltenbach stated the Personnel Committee report will be moved to the end of the agenda because the Board will go into a Closed Session to discuss the President/CEO annual evaluation. IV. PUBLIC COMMENT: Jack Alexander asked Scott what equipment was last purchased for the ball park and noted since the digital boards will be delayed until next year; the price of the boards is likely to increase. Scott stated a sprayer and mower were the last pieces of equipment purchased. Scott did acknowledge the purchase of digital boards has been allocated to next fiscal year and stated bids for this project will go out in January 2o18. V. APPROVAL OF THE MINUTES OF MAY 23, 2017: Approval of the minutes as published. MOTION: Commissioner Barron SECOND: Commissioner Dobernick VI. REPORTS: A. CHAIRMAN'S REPORT: None. *Angela Bennett(Ex-Officio)entered the meeting at 8:03 a.m. B. FINANCE COMMITTEE REPORT: Jennifer McFatridge reviewed May 2017 financial information as follows: *Commissioner Sims-Wright entered the meeting at 8:04 a.m. LEPFA Board of Commissioners Meeting Page 2 June 27,2017 City Market May Results: Chart 1: City Market Revenue Review This chart represents a 3 year comparison of actual revenue compared to budget for May, as well as a 3 year view of YTD actuals compared to YTD budget.YTD Operating Revenue has increased by$3,100 or 4%when compared to last year. Chart 2: City Market Expense Review This chart represents a 3 year comparison of actual expense compared to budget for May, as well as a 3 year view of YTD actuals compared to YTD budget. Overall, our monthly expenses came in under budget by$2,700 while our YTD actual Operating expense came in $28,00o under YTD budget. Greatest impact was to the Utilities category. We recognized a savings of$300 compared to last year. Chart 3: YTD Revenue and Expense compared to Annual Budget This chart is a view of where the City Market is through May when compared to the fiscal year budget. With one month remaining in the fiscal year, the market has contained its expenses to 76% of the expense budget while capturing 8o% of the revenue budget. At the end of 11 months, excess revenue over expense is ahead of budget. Chart 4: City Market Unreserved Equity This chart shows a 3 year comparison of Unreserved Equity. Through ii months, unreserved equity has remained consistent over last three months, but still has work to do to reach the numbers reflected in FY15. Cooley Law School Stadium May Results: Chart 1: Cooley Law School Stadium Expense Review This chart represents a 3 year comparison of actual expense compared to budget for May, as well as a 3 year view of YTD actuals compared to YTD budget. Overall, our monthly expenses came in over budget by$6,000. The largest impact to the budget this month was the replacement of the Heat Exchanger in the visiting locker room($7,400). YTD Operating Expense has increased by 13% or $40,573 compared to last year with Utilities, Maintenance of Facilities and Concessions/Catering categories providing the biggest impact. Chart 2:YTD Actual Expense compared to Annual Budget This chart is a view of where the stadium is through May when compared to the fiscal year budget. The stadium actual operating expenses to date reflect 97% of the annual budget with 1 month remaining in the year. Chart 3: Cooley Law School Stadium Unreserved Equity This chart shows a 3 year comparison of Unreserved Equity. Through 11 months, LEPFA Board of Commissioners Meeting Page 3 June 27,2017 unreserved equity dipped below pace with FY 15 and FY 16,but continues to reflect the same trend as is typical in the month of May. Lansing Center May Results: Chart 1: Lansing Center Revenue Review This represents a 3 year comparison of actual revenue compared to budget for May, as well as a 3 year view of YTD actuals compared to YTD budget.YTD Operating Revenue has increased by 20% or slightly north of$1M when compared to last year. Some events that contributed to a successful month included MALA, Michigan Celebrates Small Business, LOVE Lansing, and INCH. Chart 2: Lansing Center Expense Review This reflects a 3 year comparison of actual expense compared to budget for May, as well as a 3 year view of YTD actuals compared to YTD budget. YTD Operating Expense has increased by 11% or $676,314 when compared to last year with the largest contributing factor being Event Expenses. Chart 3: Lansing Center Revenue Budget to Actual The blue part of the bar represents our FY17 YTD Budget,while the orange part of the bar represents the amount that we exceeded or fell short of meeting the budget for revenue. YTD Revenue has exceeded budget by more than $1.5M. Chart 4: Lansing Center Expense Budget to Actual The blue part of the bar represents our FY17 YTD Budget,while the orange part of the bar represents the amount that we exceeded or fell short of meeting the budget for expense. YTD Expenses has exceeded budget by more than $1.1M. Chart 5: Lansing Center Unreserved Equity This represents a 3 year comparison of Unreserved Equity. Through 11 months, unreserved equity continues an upward climb exceeding our high point from FY15. Chart 6: Lansing Center Unearned Revenue-Advance Rent This represents a 3 year comparison of Unearned Revenue-Advance Rent which is an indicator of future business. Unearned Revenue-Advance Rent has dropped to its lowest point this fiscal year. The hiring of a Director of Sales in late May should allow for this measurement to show improvement as we end our fiscal year. Chart 7: YTD Revenue and Expense to Annual Budget This is a view of where the Lansing Center is through May when compared to the fiscal year budget. The Lansing Center expenses are log% of the expense budget with 1 month remaining in the year. At the end of 11 months, expenses are up to budget. Switching to revenue, the Lansing Center has captured 123% of the revenue budget with 1 month remaining in the year. At the end of 11 months, excess revenue over expense is ahead of budget. LEPFA Board of Commissioners Meeting Page 4 June 27,2017 Chairman Kaltenbach asked for a motion to accept the May 2017 financials for the Lansing City Market, Cooley Law School Stadium and the Lansing Center be received as published and further that the monthly expenses for each entity be accepted. MOTION: Commissioner Barron ACCEPT: Commissioner Mickens Motion unanimously carried *Robert Johnson(Ex-Officio)entered the meeting at 9:10 a.m. C. PRESIDENT&CEO REPORT: Scott Keith reported the following: *Councilwoman Jodi Washington entered the meeting at 8:11 a.m. 1. 2017— 2018 PACE Report: Scott reported Lansing Center is pacing well ahead of the current year. Next year's rental has been increased by 5%.At this time,we are also ahead of next year by 5% - 10%. 2. Lu nuts: The first half of 2017 season shows a 15%increase in revenues and this amount will reflect on the City. Scott noted the second half of the season schedule has no home games scheduled on holiday weekends. 3. Administrative Board Report: There is an interim City Market Manager on board while Audrey is out; he is doing well in the position. Concerts on the Grand are scheduled and the first two had weather issues that brought both inside the market. July 12th is the next concert date. 4. Director of Sales: Scott asked Scott Horgan,Vice-President of Sales & Services to introduce the new Director of Sales — Kristy Doak. Scott Horgan introduced Kristy, noting this position is now an employee of the CVB. Kristy provided previous employment history and stated she is looking forward to working with everyone. 5. Groesbeck: Scott met with the City Attorney last week to work on updates to the current agreement. 6. Thank Yous: We received thank you notes from Audrey Tipper and a staff member with regard to personal happenings in their lives. LEPFA also received a thank you from the CVB for being a sponsor to this year's Be a Tourist in Your Own Town. Scott referenced an article in the Lansing State Journal regarding convention and sports business. 7. Ad Hoc Committee: This Committee meets this Thursday and Scott will provide a report on this meeting at the next LEPFA Board meeting. 8. Recognition: Scott recognized Linda Sims-Wright as an outgoing member of the LEPFA Board and thanked her for her services over the last several years. Likewise,Tim Kaltenbach is outgoing not only as Chair but as a Commissioner as well. Scott thanked him for his extended service to the LEPFA Board for many years as well. Chairman Kaltenbach stated he has been happy to serve on this Board with all the Commissioners and is excited to see the financials for all the properties doing so well. LEPFA Board of Commissioners Meeting Page 5 June 27,2017 D. STRATEGIC PLANNING COMMITTEE: Commissioner Barron reported the Committee met briefly via conference call last week. The Committee discussed all three properties and alternatives for the City Market's vacant spaces. E. NOMINATING COMMITTEE: Commissioner Bowen served as Chair for this Committee; in her absence, Commissioner Mickns reported the following officers for the 2017- 2o18 session: Chairman: James W. Butler III Vice-Chair: Cindy Bowen Secretary/Treasurer: Price Dobernick Commissioner Mickens asked for a motion to approve the 2017 - 2o18 LEPFA Board of Commissioners Officers. MOTION: Commissioner Barron SUPPORT: Commissioner Janssen F. VICE PRESIDENT/STAFF REPORTS: 1. Paul Ntoko: Paul stated he is very pleased with the 2o16 - 2017 results and is looking forward to 2o18. New menus have been added to Common Ground this year and are being finalized. Scott noted he challenged Paul to gain an additional $20,000 to hit $4,000,000 in F&B revenues. 2. Heidi Brown: Heidi reported she is working to fill vacant positions, LEPFA U agenda items and policy reviews with our attorneys. G. PERSONNEL COMMITTEE: Moved to New Business. VII. COMMISSIONER AND STAFF COMMENTS: A. Commissioner Janssen: Commissioner Janssen referenced May meeting minutes noting the Customer Advisory Board meeting and asked Scott to elaborate on the meeting. Scott reviewed the purpose of this Board and reported on the meeting that was held last Thursday. Scott stated the results of this meeting will be shared at the next LEPFA Board meeting. Commissioner Janssen also complimented the staff for a successful year and noted the Active Shooter sessions during LEPFA U is a good idea. B. Commissioner Sims-Wright: Commissioner Sims-Wright thanked Tristan for stepping in at the City Market in the absence of Audrey. Tristan has been keeping the vendors informed of all things Market related. Daryl (temporary manager) has some really good ideas for the Market. Commissioner Sims- Wright thanked everyone for the recognition of her service to the LEPFA Board of Commissioners. C. Commissioner Barron: Commissioner Barron thanked LEPFA Staff for all the work put into make this a successful year. LEPFA Board of Commissioners Meeting Page 6 June 27,2017 VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: At this time,the Board entered a CLOSED SESSION to discuss the annual evaluation of the President/CEO, Scott Keith. Chairman Kaltenbach asked for a motion to go into a CLOSED SESSION. MOTION: Commissioner Janssen SUPPORT: Commissioner Dobernick Motion unanimously carried. At 8:3o a.m.the meeting became a CLOSED SESSION At 8:49 a.m. the meeting returned to a PUBLIC SESSION. Commissioner Dobernick made a motion to approve the annual evaluation of the President/CEO. MOTION: Commissioner Dobernick SUUPORT: Commissioner Janssen Motion unanimously carried. B. July Meeting_: A reminder there will be no meeting in July. C. Liquor License Resolution: A special meeting may need to be called should a resolution for a liquor license for Prime Fest be needed. It was noted that a special meeting may be tough to convene since so many may be on vacation. Chairman Kaltenbach asked for a motion to approve an application for a liquor license for Prime Fest in September. MOTION: Commissioner Mickens SUPPORT: Commissioner Barron Motion unanimously carried. X. ADJOURNMENT: At 8:54 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: SEPTEMBER 26, 2017 LANSING CENTER - GOVERNOR'S ROOM Respectfully submitted, Shelly Busse, Recording Secretary