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HomeMy WebLinkAbout2018 LEPFA Minutes LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING JANUARY 23, 2018 MINUTES At 8:0o a.m. Chairman James W. Butler III called the meeting to order at The View of Cooley Law School Stadium, 505 E. Michigan Avenue; Lansing, Michigan 48912. COMMISSIONERS PRESENT: Cindy Bowen, Eric Brewer (Ex-Officio), James W. Butler III, Price Dobernick, Charles Janssen, Larry Leatherwood, Brian McGrain (Ex- Officio), Charles Mickens, and James Stajos. COMMISSIONERS EXCUSED: Tim Barron and Angela Bennett (Ex-Officio) OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko, Tristan Wright, Heidi Brown, Shelly Busse - Lansing Entertainment & Public Facilities Authority; Jody Washington — Lansing City Council, Heather Sumner — Lansing City Attorney's Office, and Jack Alexander, III. ESTABLISHMENT OF THE AGENDA: No changes to the agenda. IV. PUBLIC COMMENT: Jack Alexander asked Scott if he has reviewed the second set of numbers for the digital board. Jack also asked if the scoreboard is available to be used as advertising space. Scott stated he is reviewing the numbers for the marquee. Scott stated the scoreboard is owned by the team and any revenue generated from that is in the Lugnut's budget. Jack asked Scott if he plans to spend any additional money on the digital boards out front. Scott stated that is yet to be determined. V. APPROVAL OF THE MINUTES OF NOVEMBER 28 2oi7• Approval of the minutes as published. MOTION: Commissioner Janssen SECOND: Commissioner Dobernick VI. REPORTS: A. CHAIRMAN'S REPORT: Chairman Butler reported the activity for the Martin Luther King Jr. Luncheon was outstanding and complimented Scott and the LEPFA Staff on an outstanding job. B. FINANCE COMMITTEE REPORT: Secretary/Treasurer Cindy Bowen reported the Finance Committee met yesterday and discussed Agenda item 1 (December year-to-date financials), but not item 2 (FY 2018 - 2019 Budget). Scott noted there are still many moving pieces in the budget process and he will cover briefly. Secretary/Treasurer Bowen stated the first six months of this fiscal year is performing well; however, the second half of this fiscal year will not be the same pace, but we will still make budget. Scott noted we will end strong, but flat to last year; noting ancillary income will be up 2% - 5%. LEPFA Board of Commissioners Meeting Page 2 January 23, 2o18 Scott reported we are not able to review the budget due to continued work on Groesbeck Golf Course budget. Lansing Center rental revenue will drop due to the 3 year cycle trend. Expenses will need to be held; which will be difficult due to rising healthcare costs. Scott reported the City Market has a DRAFT budget set; but operational changes are expected, and this DRAFT budget is considered a "placeholder budget". Scott stated the biggest impact for Cooley Law School Stadium is utilities increase. Scott stated he doesn't anticipate asking the City for any subsidy increases for any of the properties (although the Stadium may need a 2% increase to cover the utilities). Scott stated we are working hard to hold the budgets to no significant increases and he will meet with City Administration next week to complete Groesbeck budget. Scott stated he is still working on capital requests for the properties. Scott reported it has been 12 years since any significant investments have been made to Lansing Center; noting the outdoor marquee and sound system are both failing. Additionally, the fire safety and security systems are in need of immediate upgrades. There are many other items that will need addressing as well, so as not to affect our customers. Secretary/Treasurer Bowen reviewed the three year cycle of Lansing Center business (for new Board members) and explained the cycle trend. The good news is that both the Lansing Center Team and the CVB Team are working on creative solutions to utilize Lansing Center space for other types of events. Jennifer McFatridge,Vice-President of Finance reported the following financial information for all three properties: City Market Chart 1: City Market Revenue Review This 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. YTD Operating Revenue has decreased by $5,782 or 11%when compared to last year. December revenue is up over last year, and this is attributed to sponsorship monies received for the Winter Solstice event held at the market. Chart 2: City Market Expense Review This is 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. Overall, our monthly expenses came in under budget and to last year. We are recognizing a savings in Salaries and Wages due to the current vacancy in the market manager role. Chart 3: YTD Revenue and Expense compared to Annual Budget This 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 39% of the expense budget while capturing 43% of the revenue budget. At the end of the December, excess revenue over expense is ahead of budget. LEPFA Board of Commissioners Meeting Page 3 January 23,2018 Chart 4: City Market Unreserved Equity This is a 3 year comparison of Unreserved Equity. Through six months of the fiscal year, unreserved equity continues climbing, and has now established the high point when comparing the three fiscal years presented in the chart. Cooley Law School Stadium Chart 1: Cooley Law School Stadium Expense Review This is 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. Overall, our monthly expenses came in over budget by$1,700 with utilities and maintenance of facilities providing the most impact. YTD Operating Expense has increased by $23,000 compared to last year with the supplies/materials categories providing the biggest impact. This increase is attributed to the replacement of the nets. Chart 2: YTD Actual Expense compared to Annual Budget This is a view of where the stadium is through December when compared to the fiscal year budget. The stadium has contained its expenses to 49% of the expense budget. At the end of the December, excess revenue over expense is ahead of budget. Chart 3: Cooley Law School Stadium Unreserved Equity This is a 3 year comparison of Unreserved Equity. Through six months of the fiscal year, unreserved equity has begun climbing, but has work to do to reach the numbers reflected at the high point of FY16. Lansing Center Chart 1: Lansing Center Revenue Review This is 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. YTD Operating Revenue has increased by 7% or $214,764 when compared to last year. Revenue for December 2017 is down to last year with the largest impact being the loss of the Auto Club event, Crest Pontoon was a November event this year and finally there were 2 large weddings held in December of 2016. Chart 2: Lansing Center Expense Review This is 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 when compared to last year by 3% or $95k with Salaries and Wages, Event Expenses and Food &Beverage providing the largest impact. LEPFA Board of Commissioners Meeting Page 4 January 23, 2018 Chart 3: Lansing Center Revenue Budget to Actual The blue part of the bar represents our FY18 YTD Budget,while the orange part of the bar represents the amount that we exceeded the budget for revenue. YTD Revenue exceeds budget by more than $513K. Chart 4: Lansing Center Expense Budget to Actual The blue part of the bar represents our FY18 YTD Budget,while the orange part of the bar represents the amount that we exceeded the budget for expense. YTD Expenses exceeds budget by more than $217k. Chart 5: Lansing Center Unreserved Equity This represents a 3 year comparison of Unreserved Equity. Through six months, unreserved equity reflected upward movement with November results and has held flat for December, but remains strong compared to the prior two fiscal years. Chart 6: Lansing Center Unearned Revenue-Advance Rent This is a 3 year comparison of Unearned Revenue-Advance Rent which is an indicator of future business. Unearned Revenue-Advance Rent has begun to climb, is slightly over last year and is following the trend of the prior two fiscal years indicating signs of growth. Chart 7: YTD Revenue and Expense to Annual Budget This is a view of where the Lansing Center is through December when compared to the fiscal year budget. The Lansing Center expenses are 50% of the expense budget. At the end of six months, expenses are up to budget with Event Expense providing the greatest impact. Switching to revenue, the Lansing Center has captured 52% of the revenue budget. At the end of the six month of the fiscal year, excess revenue over expense is ahead of budget. Secretary/Treasurer, Cindy Bowen, made a motion to accept the December 2017 financial statements for 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. C. PRESIDENT& CEO REPORT: Scott Keith reported the following: 1. Notice: A letter from City Council stating Councilwoman Jody Washington will remain as LEPFA's Council Representative for 2018 and a letter from City Administration regarding the review of LEPFA Board Member appointments. 2. Mayor Transition Report: Included in this report was a recommendation for a Performing Arts center. Scott clarified that we are looking for a live entertainment piece. Scott stated we have been focusing on a permanent outdoor space for summer events. LEPFA Board of Commissioners Meeting Page 5 January 23, 2018 Scott reported an Executive Order announcing the Planning & Neighborhood Development is now the Planning &Economic Development Department and is headed by Brian McGrain. Brian will serve as Ex-Officio for LEPFA Board. Scott introduced Brian to all present. 3. Chamber Dinner: If anyone is interested in attending the Chamber Dinner, please let Scott or Shelly know.Attendance will determine if LEPFA purchases a table or tickets to the event. 4. MLK Luncheon: This year's luncheon was once again held at Lansing Center and was a sold out event! Scott extended his compliments to the Commission and reviewed the program. LEPFA purchased an ad recognizing Commissioner Leatherwood as the recipient of the King Legacy Award for his service to Lansing. 5. Groesbeck: The Golf Pro/General Manager position has been filled. Greg Webber was hired recently and is already working to secure business. Lansing Catholic Central's Boys' gold team used to be with Groesbeck and Greg was able to get them back. We are still looking for a Course Superintendent as well as some part-time positions. A new POS system (VEND)was installed, we have contracted with Crono Golf for a tee system that allows online registration. Golf carts have been contracted and a website has been secured. Many other pieces are being handled as well. 6. Pa, a� bles: Jennifer is working with Angela Bennett, City Finance Director, to get open items resolved. There are outstanding payments for the stadium, golf course, and Common Ground. 7. LEPFA Staff: Scott complimented LEPFA team on the great job they all do. Scott stated he could not do his job effectively without their hard work and offered his thanks to LEPFA Staff. 8. Margaritafest: Scott stated we are in the early planning stages of this event; but so far, everything seems to be moving forward. The date has been determined, along with MLCC cooperation. 9. Adado Park: LEPFA and LEAP are working together to secure funding to make improvements to this area. In addition,we are looking into obtaining a liquor license for the area. 10. Healthcare Committee: LEPFA's Healthcare Committee will begin to meet soon to start this year's renewal process. 11. Pension: We received five proposals in response to the RFP that was sent out. We have narrowed the field to two companies and will meet with each separately later this week to ask some follow-up questions and make a decision. 12. Common Ground: An announcement is forthcoming, and Scott met with LCC to work on a potential sponsorship inside Lansing Center. 13. Customer Evaluations: This will be the last time we will see this type of evaluation. We are moving to a new format that provides more concrete feedback using a system of Exceeds, Meets, or Does Not Meet expectations. D. PERSONNEL COMMITTEE: Commissioner Dobernick reported the Committee met a few weeks ago and Scott has already covered the information. LEPFA Board of Commissioners Meeting Page 6 January 23, 2018 E. STRATEGIC PLANNING COMMITTEE: No report. F. VICE-PRESIDENT/STAFF REPORTS: 1. Scott Horgan: Scott reported on the changes to the Customer Evaluation system and why the changes are necessary. It was determined at the last Customer Advisory Board meeting that customer service rankings are not where they should be, and we need to focus more on enhancing the customer experience. We are meeting monthly to do team building exercises to improve the customer's experience. Chairman Butler asked what the specific concerns related to customer service are. Scott Horgan stated adequate parking, Fire Marshall expectations, and IATSE service were the main concerns. Scott Horgan stated a training session for IATSE was held in December to address the challenges. Scott Horgan stated he has received several phone calls from some of the CAB members noting the changes already evident. Chairman Butler asked if staff are being recognized for going above and beyond and asked Commissioner Bowen to share what she and her staff do to recognize outstanding performance. Commissioner Bowen provided a review on what processes she uses for staff recognition. 2. Paul Ntoko: Paul reported a strong first quarter for Food&Beverage Dept. There are currently two full time positions open in Food&Beverage. 3. Heidi Brown: Heidi reviewed vacant positions. LEPFA has had 199 accident free days. Negotiations with AMTA continue. Heidi will review the OSHA report at February's meeting. Working on healthcare renewal information, the new pension plan, and LEPFA U. *Commissioner Leatherwood entered the meeting at 8:49 a.m. VII. COMMISSIONER AND STAFF COMMENTS: A. Commissioner Janssen: Congratulated LEPFA Staff on a great job. B. Commissioner Bowen: Stated LEPFA has a positive influence on the community thanks to Sales and Operations. C. Councilwoman Washington: Happy to be back this year and hope to attend more meetings than last year. Complimented MLK Luncheon and noted Lansing Center does need some capital improvements. Chairman Butler asked what types of improvements you feel are needed. Councilwoman Washington stated perhaps some color or artwork. D. Brian McGrain: Excited to be here and a part of LEPFA. Have used Lansing Center for events for 20 years and looking forward to supporting this process. E. Commissioner Stajos: Echoed staff compliments and stated excited to hear about improvements and the VEND system. F. Commissioner Leatherwood: Apologized for late arrival and appreciates LEPFA Board and staff for the MLK ad in the program. G. Commissioner Mickens: Commended Staff for hard work and planning; noting it takes a lot of work to make every event seem seamless. LEPFA Board of Commissioners Meeting Page 7 January 23,2018 H. Scott Keith: Reminded all to enjoy some breakfast before departing. VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: No report. X. ADJOURNMENT: At 9:10 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: MARCH 27, 2oi8 LANSING CENTER - GOVERNOR'S ROOM Respectfully submitted, Shelly Busse, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING FEBRUARY 27, 2oi8 MINUTES At 8:0o a.m. Chairman James W. Butler III called the meeting to order at Lansing Center, Meeting Rooms 204-205, 333 E. Michigan Avenue; Lansing, Michigan 48933• COMMISSIONERS PRESENT: Tim Barron, Angela Bennett (Ex-Officio), Cindy Bowen, Eric Brewer (Ex-Officio), James W. Butler III, Price Dobernick, Charles Janssen, Larry Leatherwood, Brian McGrain (Ex-Officio), and James Stajos. COMMISSIONERS EXCUSED: Charles Mickens OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko, Tristan Wright, Heidi Brown, Shelly Busse - Lansing Entertainment & Public Facilities Authority; Samantha Harkins — City of Lansing, Mayor's Office; Jack Schripsema — GLCVB; Jody Washington — Lansing City Council, Heather Sumner — Lansing City Attorney's Office, Dirk Spillemaeckers —AMTA, and Jack Alexander. III. ESTABLISHMENT OF THE AGENDA: No changes to the agenda. IV. PUBLIC COMMENT: Jack Alexander asked Scott how much money will be invested in the new digital boards and when the new boards will be installed. In addition, Jack asked what will be printed on the new boards once they are installed. Scott stated the message on the boards will be kept generic due to (potential) changes in naming rights. Scott also reported funding for the new boards did not make it into this year's budget. Scott stated LEPFA continues to work with Daktronics to tweak the quotes. Dirk Spillemaeckers stated he came to this meeting to discuss AMTA bargaining. Dirk stated that after reviewing the document, the unit will receive a significant cut in wages and asked "why, after a year and a half of negotiating, nothing has changed". Dirk stated he reports this as information for this Board. *Dirk Spillemaeckers exited the meeting @ 8:03 a.m. V. APPROVAL OF THE MINUTES OF JANUARY 23 2o18: Approval of the minutes as published. MOTION: Commissioner Janssen SECOND: Commissioner Barron VI. REPORTS: A. CHAIRMAN'S REPORT: Chairman Butler recognized Samantha Harkins, Chief of Staff to Mayor Schor, as well as other City staff members present at today's meeting. Samantha Harkins introduced herself and thanked Scott for the invitation to join today's meeting. Samantha stated she and members of the City's Staff look forward to working with Scott, LEPFA and the focus on the downtown region. LEPFA Board of Commissioners Meeting Page 2 February 27, 2018 B. FINANCE COMMITTEE REPORT: Secretary/Treasurer Cindy Bowen reported the Finance Committee met yesterday and discussed January financial information for all properties as well as an update on FY 2019 DRAFT Budget. Jennifer McFatridge,Vice-President of Finance, reported Groesbeck Golf Course is not included in this month's report as we are still testing the reporting system for accuracy. Jennifer provided an update for Groesbeck that includes no income for the month of January(as the course is closed). Expenses for January are $13,500 which account for salary/wages for the Golf Pro and for computer equipment. Jennifer stated starting next month, a traditional finance report will be included. 1. January Financial Information: Jennifer reported the following financial information for the month of January: a. Lansing City Market: Chart 1: City Market Revenue Review This a 3 year comparison of actual revenue compared to budget for January, as well as a 3 year view of YTD actuals compared to YTD budget. YTD Operating Revenue has decreased by lo% or $6,013 when compared to last year. January revenue is relatively flat to last year. Chart 2: City Market Expense Review This is a 3 year comparison of actual expense compared to budget for January, as well as a 3 year view of YTD actuals compared to YTD budget. Overall, our monthly expenses came in under budget and to last year. We are recognizing a savings in Salaries and Wages due to the current vacancy in the market manager role. Chart 3: YTD Revenue and Expense compared to Annual Budget This is a view of where the City Market is through January when compared to the fiscal year budget. The market has contained its expenses to 43% of the expense budget while capturing 49% of the revenue budget. At the end of the January, excess revenue over expense is ahead of budget. Chart 4: City Market Unreserved Equity This is a 3 year comparison of Unreserved Equity. Through seven months of the fiscal year, unreserved equity continues climbing, and again, has established the high point when comparing the three fiscal years presented in the chart. b. Cooley Law School Stadium: Chart 1: Cooley Law School Stadium Expense Review This is a 3 year comparison of actual expense compared to budget for January, as well as a 3 year view of YTD actuals compared to YTD LEPFA Board of Commissioners Meeting Page 3 February 27, 2018 budget. Overall, our monthly expenses came in over budget by $88o with utilities and maintenance of facilities providing the most impact. There were some repairs in the HVAC category, specifically Good Hops area and the DOAS Unit. YTD Operating Expense has increased by $17,000 compared to last year with the supplies/materials categories providing the biggest impact. This increase is attributed to the replacement of the nets. Chart 2: YTD Actual Expense compared to Annual Budget This is a view of where the stadium is through January when compared to the fiscal year budget. The stadium has contained its expenses to 56% of the expense budget.At the end of January, excess revenue over expense is ahead of budget. Chart 3: Cooley Law School Stadium Unreserved Equity This is a 3 year comparison of Unreserved Equity. Through seven months of the fiscal year, unreserved equity continues climbing, but has work to do to reach the numbers reflected at the high point of FY16. c. Lansing Center: Chart 1: Lansing Center Revenue Review This is a 3 year comparison of actual revenue compared to budget for January, as well as a 3 year view of YTD actuals compared to YTD budget. YTD Operating Revenue has increased by 8% or $267,738 when compared to last year. Revenue for January 2o18 is up compared to last year. Some events that occurred this month include The Lansing Boat Show, Bridal World, Martin Luther King Luncheon, MSUFCU and Michigan Veterinary Conference. Chart 2: Lansing Center Expense Review This is a 3 year comparison of actual expense compared to budget for January, as well as a 3 year view of YTD actuals compared to YTD budget. YTD Operating Expense has increased when compared to last year by 5% or $194k with Utilities, Event Expenses and Food&Beverage providing the largest impact. Chart 3: Lansing Center Revenue Budget to Actual The blue part of the bar represents our FY18 YTD Budget, while the orange part of the bar represents the amount that we exceeded the budget for revenue. YTD Revenue exceeds budget by more than $664K. Chart 4: Lansing Center Expense Budget to Actual The blue part of the bar represents our FY18 YTD Budget, while the orange part of the bar represents the amount that we exceeded the budget for expense. YTD Expenses exceeds budget by more than $346k. LEPFA Board of Commissioners Meeting Page 4 February 27, 2018 Chart 5: Lansing Center Unreserved Equity This represents a 3 year comparison of Unreserved Equity. Through seven months, unreserved equity dropped slightly from December, but remains strong compared to the prior two fiscal years. Chart 6: Lansing Center Unearned Revenue-Advance Rent This is a 3 year comparison of Unearned Revenue-Advance Rent which is an indicator of future business. Unearned Revenue-Advance Rent continues to climb, exceeds last year boy almost $4ok and is following the trend of the prior two fiscal years indicating signs of growth. Chart 7: YTD Revenue and Expense to Annual Budget This is a view of where the Lansing Center is through January when compared to the fiscal year budget. The Lansing Center expenses are 61% of the expense budget. At the end of seven months, expenses are up to budget with Event Expense and Food&Beverage providing the greatest impact. Switching to revenue, the Lansing Center has captured 63% of the revenue budget. At the end of the seven months of the fiscal year, excess revenue over expense is ahead of budget. Secretary/Treasurer, Cindy Bowen, asked for a motion to accept the January 2018 financial statements for 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 Janssen ACCEPT: Commissioner Barron Motion unanimously carried. 2. FY 2oig DRAFT Budget: Scott presented the DRAFT version of the FY 2019 Budget, noting the budget will stay in DRAFT form until it is presented to Council in April and formally accepted by Council in May. Scott noted LEPFA will ask for a 3.3% increase in subsidy dollars, of which Lansing Center will account for $23,000 of that increase. Scott reminded everyone that we are in the 3 year cycle and going into the "down"year of the cycle. There are two major pieces of business that are not in our rotation this year, including MI Dental Association and MI Safety. Scott stated we are working hard with the CVB to book groups to fill these gaps. Utilities will see an increase of 6% - 9%based upon BWL increases and healthcare costs are once again, expected to rise. Scott reviewed financial plans for the City Market, noting this plan will be reduced and potentially the eliminated, based upon planned operational changes. These changes may not go into effect until late fall, however. LEPFA Board of Commissioners Meeting Page 5 February 27, 2oi8 Scott reported a $14,000 increase due to utility rate increases. Since the ball park is used more often for other events, it is expected that utility costs increase. Scott thanked Jennifer for a job well done in putting all this information together and stated next month we will show current changes compared to budget and where we will finish for the year. Commissioner Janssen asked Scott how much of the expenses are attributed to utilities. Scott stated about 1o% of expenses is utility based. Commissioner Janssen asked if any capital improvements for 2019 will be marked for energy savings. Scott reported the last round of energy improvements helped to pay for energy savings. For example, the HVAC system for the stadium is computerized, however, it is archaic and is a challenge to program. Scott stated if all HVAC systems would be controlled from one location, that would be a big help. In addition, energy saving lighting and adding additional vestibules could also help save energy. *Heather Sumner entered the meeting at 8:2o a.m. Secretary/Treasurer, Cindy Bowen, asked for a motion to accept the the FY 2019 DRAFT Budget. MOTION: Commissioner Janssen ACCEPT: Commissioner Dobernick C. PRESIDENT&CEO REPORT: Scott Keith reported the following: 1. GLCVB Annual MeetinZ: Scott stated this meeting was held last week and was well attended by community partners and stakeholders. There were several community folks who were recognized for events in the community. Scott asked Jack Schripsema to provide a report on the meeting. Jack thanked Scott and the Board for having him at the meeting this morning. Jack reported the year of 2017 for tourism saw a 5th record year for growth. We saw approximately 5,000,000 visitors to the region. Jack reviewed dollars invested into City. Key metrics, hotel occupancy rate was a record year. Lansing used to lag the statewide average and now for 2 —3 years Lansing is over 65%. There are several contributing factors for this increase. Notably, sports events have a major impact on our community. Amateur events (not including MSU sports) make up the bulk of sporting events for the community. Jack noted group meetings and our central location contribute as well. Growth in regional associations has also contributed to this increase. Nationwide average is slightly over 65% and Lansing is right at that average. Jack noted Lansing exceeded 2016(over) 1,000,000 room nights and 2017 saw over 1,000,000 again. Three hotels opened this year and there are a number of hotel projects under discussion. Jack reported during this meeting we recognize community champions who LEPFA Board of Commissioners Meeting Page 6 February 27, 2018 bring their groups to the Lansing a region. We recognize 5 year CTA's and there were 3o recognized. Tim Barron and James Butler were not at this meeting, so their 5 year pins today are awarded today. Jack stated the CVB Board and LEPFA Board meet 3 - 4 times a year to collaborate on business and relationships. We receive great comments from guests noting the staff is doing well. Chairman Butler stated our collaboration and relationship is great. It is a win-win for both organizations. Jack told all to please take annual report with you. Commissioner Janssen commented having served this Board for a long time and working with CVB board the CVB was recognized as the best CVB for 2nd year in a row. Scott displayed the "Sports Partner of the Year" award Lansing Center received for bringing sports events to the city. Scott stated have worked hard to grow the sports activities in the region. It is a great filler for our space when the building is available. 2. Groesbeck: LEPFA has received a commitment from Mayor Schor and the Administration for the calendar year 2o18 to manage the golf course.At the end of the year, the performance will be reviewed. There is an increase in the business already and we have a commitment from all 17 leagues to return. Greg has been communicating with Lansing Catholic Central High School's boys' team about returning to the golf course this year. The team would like to be back at Groesbeck full-time. Groesbeck will host the LCC Jamborees this year. We hope to secure GLAGA event and All City Tournament event. Team is working hard on staffing and improvements. 3. City Market: We continue to work on events for the Market traffic. "Speed Friending" was the most recent event. This event allowed participants to get to know each other on a timed basis. It was well attended. Work has started on this year's Grand Concert Series and a schedule will be published soon. River-town will be making some changes to their business in the next few weeks. Rivertown was also awarded "Best New Attraction of the Year". We are working on a plan to host food trucks at the Market this summer; this will be a sponsored event so that coupons can be distributed. 4. Stadium: Opening Day is April nth, game time has been changed from 6:oo P.m. to 7:00 p.m. due to MSU Spring Football game having a late start time. Opening Day will see a block party and Michigan Ave. will be closed to traffic during this time. Scott asked that we spread the word on this event, so it will grow into an event where people will want to take the day off from work or school to attend. Taste of Country is scheduled for June 9th with Brett Eldridge announced as the headliner. The All Star Game is set for mid-June and LEPFA will have a suite reserved for this game. The nets and cabling will be in place due to new regulations and safety issues to protect patrons. 5. Common Ground: Some announcements have been made; Hip-Hop and country night is set. There will be additional announcements for pop LEPFA Board of Commissioners Meeting Page 7 February 27, 2o18 night and Opening night soon. Dates for this year's festival July 5th — July 8th. 6.Annual Report: We are working on this and it will be ready for next month's Board meeting. 7. Budget: We are in the final stages of the budget and it will be ready for presentation to Council in April. 8. Pension Management: The firm of Brogan, Reed, Van Gorder&Associates has been selected as LEPFA's new pension manager. The transition should be completed by May. g.AM TA: The new contract was tentatively agreed to last week; but we learned yesterday it was not ratified. io. LRCC Annual Dinner: The annual dinner is tonight; LEPFA has a table. If you are interested in attending, please contact Scott or Shelly. Commissioner Barron asked if there is any pushback from DLI (regarding "brick and mortar" establishments) when hosting food trucks at the Market. Scott stated the goal is to get the food trucks to see there is success by being downtown, so that they will consider opening a permanent "brick and mortar" store. In addition, having the food trucks at the Market will also include an entertainment component,which offers variety to patrons. Scott stated he hopes to get AF Group as a sponsor (along with Realtors Assn.) to get their staff members to get out of their building for lunch. Commissioner Dobernick asked if, in the event the weather changes to warmer temperatures, will Groesbeck be ready to open. Scott Horgan replied the golf carts will arrive next Monday, so technically we could be ready to go. D. PERSONNEL COMMITTEE: Commissioner Dobernick reported the Committee met last Thursday; noting Scott already covered most of the information from the meeting. Discussion included on-going staff issues, AMTA negotiations and two policy updates. Commissioner Dobernick stated the CEO Evaluation process will begin soon and all Commissioners will have a chance to "weigh-in". *Samantha Harkins exited the meeting @ 8:56 a.m. E. STRATEGIC PLANNING COMMITTEE: Commissioner Janssen reported the Committee met last week and discussed hotel prospects for the downtown area, parking issues and the growing demand for parking on the east side of the river. Regional funding was discussed along with the importance of long -term funding. The need to stay ahead of capital improvements was stressed. Competitor improvements and building safety/security are main concerns. Scott stated the safety and security of this building and (in general) is a concern because this building is considered a "soft target". There are a lot on entrances and doors to the building making it difficult to lock down quickly. LEPFA Board of Commissioners Meeting Page 8 February 27, 2018 Further noting that security and safety improvements are long overdue for the building; door locks are needed, and the fire panel is 40 years old. Scott noted there are several cosmetic improvements that should be made as well. Scott reported approximately $ioo,000 is spent (annually) out of our budget on improvements. The competition is trying to get ahead of the game with their improvements. *Commissioner Janssen exited the meeting at 9:02 a.m. F.VICE-PRESIDENT/STAFF REPORTS: 1. Scott Horgan: Scott stated growth can be found in attendance numbers for large conventions and reviewed groups who are looking at other venues because of the updates to their facilities. *Commissioner Dobernick exited the meeting at 9:03 a.m. 2. Paul Ntoko: Paul reported his department is working on the spring conference season and reviewed vacant F&B positions. 3. Tristan Wright: Tristan shared new phone charging stations that have been placed around the building. These stations were provided by the CVB. Tristan reviewed the ALICE Training session she attended in early February. This training focused on safety and security. 4. Heidi Brown: Heidi reported an offer has been extended to a candidate for the Golf Operations Manager position and reviewed other vacant positions. 5. Scott Keith: Scott congratulated Chairman Butler and Commissioner Barron on their 5 year CTA designation. If any other Board members are interested in CTA training, please let us know. VII. COMMISSIONER AND STAFF COMMENTS: A. Councilwoman Washington: Stated she would like to report back to Council on an issue brought to their attention last night regarding an electric shock and that it happens often due to non-certified electricians working in the building. Tristan stated it was a vendor (who this happened to) and an outside piece of equipment. Not one of our employees was injured nor were any of our outlets the issue. Councilwoman Washington asked about open positions for the golf course Operations Manager and Pro; what other persons need to be filled and how many to be filled? Scott Horgan stated there are 14 positions to be filled. We are accepting applications for pro shop staff and will hold interviews next week. Golf cart attendants and volunteer positions will be added later. Councilwoman Washington asked if there are any special qualifications? Scott Horgan stated the Golf Pro has a PGA license and the Operations Manager candidate was offered position a few days ago and has qualifications. LEPFA Board of Commissioners Meeting Page 9 February 27, 2o18 Councilwoman Washington asked if the golf course did not have golf carts before? Scott Horgan stated the City leased them; as will we. Councilwoman reminded of the need for some artwork in Lansing Center. Scott Keith stated we are working with LCC and others to remedy that. VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: No report. X. ADJOURNMENT: At 9:15 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: APRIL 24, 2018 LANSING CENTER - GOVERNOR'S ROOM Respectfully submitted, Shelly Busse, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING MARCH 27, 2018 MINUTES At 8:03 a.m. Chairman James W. Butler III called the meeting to order in the Governor's Room, of 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, Larry Leatherwood, Brian McGrain (Ex-Officio), Charles Mickens, and James Stajos. COMMISSIONERS EXCUSED: Angela Bennett (Ex-Officio) and Charles Janssen. OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko, Tristan Wright, Heidi Brown, Shelly Busse - Lansing Entertainment & Public Facilities Authority; Jody Washington — Lansing City Council, Joy Gleason — Glad Tours, Harrold Lehman, and Jack Alexander. III. ESTABLISHMENT OF THE AGENDA: No changes to the agenda. IV. PUBLIC COMMENT: Jack Alexander asked Scott if the additional space for signage has been determined for the stadium. Scott stated he will check into that. Jack asked when the new netting will be installed at the stadium. Scott stated he and the Lugnuts management have been working on a schedule to get that done; there is a potential window of opportunity to do this in May. Jack reported he has noticed people sleeping in the alcoves of the stadium on both the Larch St. side and Cedar St. side. Jack stated he would like to see lighting installed in those areas so that Lansing Police officers will be able to see the sleepers. Jack asked if Scott would help speed up the process. Scott stated he will investigate that as well. Joy Gleason introduced herself as the owner of Glad Tours; noting she is present today to observe this Board's proceedings. Joy stated she uses the Lansing Center as a meeting spot for tour buses. Once construction begins on Michigan Ave. she may move the meeting spot to the Stadium. V. APPROVAL OF THE MINUTES OF FEBRUARY 27, 2oi8: Approval of the minutes as published. MOTION: Commissioner Barron SECOND: Commissioner Leatherwood VI. REPORTS: A. CHAIRMAN'S REPORT: No report. B. FINANCE COMMITTEE REPORT: Secretary/Treasurer Cindy Bowen reported the Finance Committee met yesterday and discussed February financial information for all properties; including the first report for Groesbeck Golf Course. Commissioner Bowen reported the month of February for the community as a whole for visitor/convention business,was not a good month; noting poor weather LEPFA Board of Commissioners Meeting Page 2 March 27,2o18 conditions and mix of events as contributors. Scott stated the mix of events, a lot of one day events (as opposed to overnight stays) did contribute to February's low performance.A brief discussion was held how to offset these types of events to capture lost revenue. 1. February Financials: Jennifer McFatridge,Vice-President of Finance, reported the following financial information: a. Groesbeck Golf Course: Chart 2: Groesbeck Expense Review This is a view of actual expense compared to budget for February, as well as a view of YTD actuals compared to YTD budget. Overall, our monthly expenses came in under budget. Categories providing the largest impact to the budget were Professional Services and Insurance/Bonding. In the professional services category, we incurred Guardian Alarm expenses to changes to the existing set with COL as well as hosting fees for Chronogolf and Vend (concessions). In February, we remitted a 25% down payment on our annual fee for insurance for the course. Chart 4: Groesbeck Unreserved Equity This is a view of Unreserved Equity. This will begin to change its appearance as the golf course is opened for the season, revenue starts to flow and season startup expenses occur. b. Lansing City Market: Chart 1: City Market Revenue Review This 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 decreased by 8% or $5,659 when compared to last year. February revenue is slightly above last year and is attributed to the Speed Friending event. Chart 2: City Market Expense Review This is 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 and to last year.We are recognizing a savings in Salaries and Wages due to the current vacancy in the market manager role. Chart 3: YTD Revenue and Expense compared to Annual Budget This 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 48% of the expense budget while capturing 56% of the revenue budget. At the end of the February, excess revenue over expense is ahead of budget. Chart 4: City Market Unreserved Equity This is a 3 year comparison of Unreserved Equity. Through seven months of the fiscal year, unreserved equity continues climbing, and again has LEPFA Board of Commissioners Meeting Page 3 March 27,2oi8 established the high point when comparing the three fiscal years presented in the chart. c. Cooley Law School Stadium: Chart 1: Cooley Law School Stadium Expense Review This is 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 over budget by $4800 with utilities, maintenance of facilities and concessions providing the most impact. There were some repairs and software upgrades in the HVAC category. YTD Operating Expense has increased by $26,000 compared to last year with the supplies/materials categories providing the biggest impact. This increase is attributed to the replacement of the nets. Chart 2: YTD Actual Expense compared to Annual Budget This is a view of where the stadium is through February when compared to the fiscal year budget. The stadium has contained its expenses to 64% of the expense budget. At the end of February, excess revenue over expense is ahead of budget. Chart 3: Cooley Law School Stadium Unreserved Equity This is a 3 year comparison of Unreserved Equity. Through eight months of the fiscal year, unreserved equity continues climbing, but has work to do to reach the numbers reflected at the high point of FY16. Brian McGrain(Ex-Officio)exited the meeting at 8:13 a.m. d. Lansing Center: Chart 1: Lansing Center Revenue Review This is 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% or $115,518 when compared to last year. Revenue for February 2018 is down $92K when compared to last year. Some events that occurred this month include Women's Expo, Great Lakes Ice Cream &Fast Food, and MI Deer and Turkey. Chart 2: Lansing Center Expense Review This is 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 when compared to last year by 4% or $202k with Utilities, Event Expenses and Food&Beverage providing the largest impact. Chart 3: Lansing Center Revenue Budget to Actual The blue part of the bar represents our FY18 YTD Budget, while the LEPFA Board of Commissioners Meeting Page 4 March 27, 2018 orange part of the bar represents the amount that we exceeded the budget for revenue. YTD Revenue exceeds budget by more than $662K. Chart 4: Lansing Center Expense Budget to Actual The blue part of the bar represents our FY18 YTD Budget, while the orange part of the bar represents the amount that we exceeded the budget for expense. YTD Expenses exceeds budget by more than $347k. Chart 5: Lansing Center Unreserved Equity This represents a 3 year comparison of Unreserved Equity. Through eight months, unreserved equity has increased slightly and remains strong compared to the prior two fiscal years. Chart 6: Lansing Center Unearned Revenue-Advance Rent This is a 3 year comparison of Unearned Revenue-Advance Rent which is an indicator of future business. Unearned Revenue-Advance Rent continues to climb, exceeds last year by $8ok and is following the trend of the prior two fiscal years indicating signs of growth. Chart 7: YTD Revenue and Expense to Annual Budget This is a view of where the Lansing Center is through February when compared to the fiscal year budget. The Lansing Center expenses are 69 of the expense budget. At the end of eight months, expenses are up to budget with Event Expense and Supplies and Materials providing the greatest impact. Switching to revenue, the Lansing Center has captured 72% of the revenue budget. At the end of eight months of the fiscal year, excess revenue over expense is ahead of budget. Secretary/Treasurer, Cindy Bowen, made a motion to accept the February 2018 financial statements for Groesbeck Golf Course, 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 Janssen ACCEPT: Commissioner Barron Motion unanimously carried. *Councilwoman Jody Washington entered the meeting at 8:24 a.m. 2. Common Ground Liquor License Resolution: Jennifer reported she is in the process of completing the Common Ground Liquor License application for Michigan Liquor Control Commission and a resolution by this Board is needed for completion. Jennifer asked for a motion to approve the Liquor License application as presented. MOTION: Commissioner Barron APPROVE: Commissioner Dobernick Motion unanimously carried. LEPFA Board of Commissioners Meeting Page 5 March 27,2018 C. PRESIDENT&CEO REPORT: Scott Keith reported the following: 1. Award: Scott offered Chairman James W. Butler III congratulations on receiving the Sparrow Founder's Day award. 2. Board Photo: Scott thanked everyone for arriving early this morning so the Board photo could be taken; noting if anyone is interested in personal headshots they can be taken in the Pub after this meeting. 3. Common Ground: Scott distributed the 2017 Recap and reviewed the details. Scott reviewed this year's line-up; stating there are more announcements that will be made soon. Scott reported of the artists performing this year; 5 will perform at Lollapalooza, 2 will perform at Coachella, and one artist will play at Bonnaroo. Commissioner Barron stated by signing younger artists we are on track with groups who put on much larger music festivals. 4. Groesbeck: The course opened yesterday; good weather for the next several days will help sales. Scott stated season passes are selling well pacing ahead of last year. 5. Budget Presentation: Scott reported LEPFA's presentation is scheduled for Monday,April end—between 6:0o p.m. — 6:30 p.m. Scott noted LEPFA did not receive any capital funding for Lansing Center or Groesbeck; the stadium did receive the minimum funding per the agreement with TMO. 6. Other Convention Facilities: Scott distributed information on what our competitors are doing to improve their facilities, this was reviewed with the Strategic Planning Committee. 7. MargaritaFest: Scott stated there will be an announcement about this event as soon as MLCC approves the liquor license. Scott noted we are seeking Sponsorships for the event and food vendors (there are 5 signed vendors so far). 8. Healthcare Committee: Scott reported we hope to stay with PHP; but move to a PPO. LEPFA is now considered a "large employer", so there will be increases for some and decreases for other employees. g. PACE Report/Projections-Lansing Center: Scott reported ancillary revenues will be flat; however, we are confident we will make budget for the year. 10.Lugnuts: Opening Day is April nth. A block party will close Michigan Ave. between Cedar St. and Larch St. 11.Customer Evaluation Form: Scott noted the changes to the form that are in line with the new survey; overall, we have positive remarks. 12.Ring a Bell for Freedom: This event will be held on April 4th at the Capitol; it is hosted by the MLK Commission. 13.Dapper Dads: Scot reported he has been nominated to participate in this event. The event is in conjunction with the Sparrow Foundation and money raised benefits the foundation. Scott hopes all will go online to vote for him; noting he would like to make the cut for the calendar. D. PERSONNEL COMMITTEE: No report. E. STRATEGIC PLANNING COMMITTEE: Commissioner Stajos reported LEPFA Board of Commissioners Meeting Page 6 March 27,2oi8 the Committee met last week, and it was a great meeting. The meeting was led by Barry Freed (of Art Craft). Barry reviewed his perspective of Lansing Center in relation to its competitors. It was reported other facilities (competition) are expanding and that is a concern for Lansing Center. Revenue is garnered from parking fees, F&B, and ancillary fees.A review of the much needed updates to Lansing Center was presented; noting these updates are needed to keep up with the competition. It was reported that Lansing Center has a public relations issue if we do not stay up to date on safety/security needs. Lansing Center has an economic impact to the Lansing region and the public needs to know this. All businesses benefit when downtown Lansing is busy and the businesses gain revenue. We need to get funding and the public relations piece will help get the funding. *Commissioner Bowen exited the meeting at 8:43 a.m. Scott reviewed what other facilities are doing with improvements and how those improvements could hurt Lansing Center. Scott stated Novi, Grand Rapids are all making improvements. Lansing Center has less meeting space and parking. Scott stated it is imperative Lansing Center receive the funding necessary for improvements; noting these improvements will only bring Lansing Center up to standards — not for expansion. F. VICE-PRESIDENTISTAFF REPORTS: 1. Heidi Brown: Heid reported the Workers Comp clock has been reset to zero; LEPFA is currently 21 days accident free. LEPFA has received notice of increases for healthcare and the committee is reviewing the increases. H/R Dept. is working with Sales &Services, Operations, and Groesbeck departments to fill vacant positions. Work is underway to update the Supervisor's Manual. Once the manual is updated; and in -service will be held to communicate changes. 2. Tristan Wright: Tristan reiterated the importance of funding for improve- ments to Lansing Center; noting the most important piece of the improvements is for safety/security features. Tristan stated the fire system needs updates and the need for emergency lockdown doors is essential. Tristan reported the Golf Course Operations Manager position has been filled and he is eager to get to work. Tristan distributed a flier for the "Ring a Bell for Freedom" event. 3. Paul Ntoko: Paul reported that Groesbeck opened yesterday, with little F&B movement - excited to see what will take place at the golf course. 4. Scott Horgan: Scott reported on the opening of Groesbeck as well; noting 20 golfers showed up to golf. The Lansing Catholic high school boys' golf team will be practicing at Groesbeck. The website for Groesbeck is up and running and purchases were tested on the website as well. The entrance needs a final paving and a sign installed. LEPFA Board of Commissioners Meeting Page 7 March 27, 2018 VII. COMMISSIONER AND STAFF COMMENTS: A. Councilwoman Washington: Reported the budget process has started; looking forward to hearing LEPFA's presentation. B. Commissioner Stajos: Commissioner Stajos congratulated Chairman Butler for the receipt of the Founder's Day award from Sparrow. Commissioner Stajos went back to the fire safety issue noting he is surprised that Lansing Center is not able to communicate with LFD. He stated this is something we really need to work on to resolve. C. Commissioner Dobernick: Commissioner Dobernick had a follow-up question regarding the Lansing Center safety issues; noting it is hard to believe the building is so antiquated. Are there quotes available for safety improvements? Scott stated there is a quote from Honeywell. Commissioner Dobernick asked that Honeywell come to a meeting top present this information to the Board. D. Joy Gleason: Ms. Gleason stated it is nice that Common Ground wants to do good and noted it is better to do better. Ms. Gleason stated the schedule/set-up is not conducive to staying in a hotel. Holding the events from 5P — midnight makes it structured to drive in and enough time to go home - if structured differently you may make it compelling to stay overnight.A lot of comparative study can be done to make sure the festival continues to grow. Commissioner Barron reviewed the demise of the Muskegon Summer festival was due to municipal decisions (out of the Festival's control). He further stated choice is the biggest thing that we have learned; this is what people want. If choices are forced on people, they will figure that out. Day events are generally poorly attended; we have a decade of records that supports that statement. He thanked Ms. Gleason and stated he is glad she participated in the discussion. Councilwoman Washington reported on the Muskegon municipalities mistakes regarding the festival held there; noting the City of Lansing does not want to make the same mistakes. Commissioner Barron stated the Festival organizer, Kevin Meyer, would be a better person to educate the group. Scott Keith stated he will work with Kevin Meyer at a future meeting to make this happen. VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: No report. X. ADJOURNMENT: At 9:12 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: MAY 22, 2018 LANSING CENTER - HALL B Respectfully submitted, Shelly Busse, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING APRIL 24, 2018 MINUTES At 8:oo a.m. Chairman James W. Butler III called the meeting to order in the Governor's Room, of Lansing Center, 333 E. Michigan Avenue; Lansing, Michigan 48933• COMMISSIONERS PRESENT: Tim Barron, Cindy Bowen, Eric Brewer (Ex-Officio), James W. Butler III, Brian McGrain (Ex-Officio), and Charles Mickens. COMMISSIONERS EXCUSED: Angela Bennett (Ex-Officio), Price Dobernick, Larry Leatherwood, and James Stajos OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko, Tristan Wright, Heidi Brown, Shelly Busse - Lansing Entertainment & Public Facilities Authority; Jody Washington — Lansing City Council, and Jack Alexander. III. ESTABLISHMENT OF THE AGENDA: No changes to the agenda. IV. PUBLIC COMMENT: Jack Alexander asked Scott is the information signs on the streets will have the name of the stadium added and if not, why. Jack also reported the digital boards in front of the stadium are still incorrect and was told nothing can be done to fix the problem he is seeing. Jack also asked Scott to disclose how much work (both immediate and total work) needs to be done to bring the stadium up to date. Jack stated he doesn't want a "political" response and wants the truth. Scott stated reported the signage posted does include the word "Stadium", but to add Cooley Law School Stadium would be problematic, due to changing of naming rights, so the signage should be "generic" in that regard. Scott noted that half of the signs are done, and the other half should be done soon. Scott reported there is a Capital Improvement Plan for additional work; an will have to look at the amounts as he doesn't recall off the top of his head. *Commissioner Bowen entered the meeting at 8:04 a.m. V. APPROVAL OF THE MINUTES OF MARCH 27, 2018: Chairman Butler asked for a motion for approval of the minutes as published. MOTION: Commissioner Janssen SECOND: Commissioner Barron Motion unanimously carried. VI. REPORTS: A. CHAIRMAN'S REPORT: No report. B. FINANCE COMMITTEE REPORT: Secretary/Treasurer Cindy Bowen reported the Finance Committee met yesterday and discussed March financial information for all properties; noting Jennifer has included footnotes to the charts as requested during last month's meeting. LEPFA Board of Commissioners Meeting Page 2 April 24, 2018 i. March Financials: Jennifer McFatridge,Vice-President of Finance, reported the following financial information: a. Groesbeck Golf Course: Chart is Groesbeck Revenue Review This a view of actual revenue compared to budget for March, as well as a view of YTD actuals compared to YTD budget. The overall budget for Groesbeck from January to June was predetermined by City of Lansing/Parks and Rec. Revenue will begin to increase as Season Pass revenue begins being allocated in April through September. In March, we collected nearly $5K in Season Pass revenue. Remittance of league payments have also begun. Leagues begin in the next few weeks. Chart 2: Groesbeck Expense Review This is a view of actual expense compared to budget for March, as well as a view of YTD actuals compared to YTD budget. Overall, our monthly expenses came in under budget. Categories providing the largest impact to the budget were Professional Services, Supplies and Materials and Insurance/Bonding. In the professional services and supplies and materials category, we incurred IT expenses to create a network, with wire/line runs within the clubhouse. We also incurred expenses related to preparation of the grounds for Golf season. Chart 3: Groesbeck Unreserved Equity This is a view of Unreserved Equity. This will begin to change its appearance as the golf course is opened for the season, revenue starts to flow and season startup expenses occur. b. Lansing City Market: Chart 1: City Market Revenue Review This a 3 year comparison of actual revenue compared to budget for March, as well as a 3 year view of YTD actuals compared to YTD budget. YTD Operating Revenue has decreased by 7% or $5,352 when compared to last year. March revenue is slightly above last year and is attributed to the ATM fees collected from usage. Chart 2: City Market Expense Review This is a 3 year comparison of actual expense compared to budget for March, as well as a 3 year view of YTD actuals compared to YTD budget. Overall, our monthly expenses came in under budget and to last year. The categories providing the largest impact are Salaries/Wages, Fringe due to the vacancy in the market manager role as well as the Utilities category. Chart 3:YTD Revenue and Expense compared to Annual Budget This is a view of where the City Market is through March when compared to the fiscal year budget. The market has contained its expenses to 53% of the expense budget while capturing 63% of the revenue budget. At the LEPFA Board of Commissioners Meeting Page 3 April 24,2018 end of the March, excess revenue over expense is ahead of budget. Chart 4: City Market Unreserved Equity This is a 3 year comparison of Unreserved Equity. Through nine months of the fiscal year, unreserved equity continues climbing, and again has established the high point when comparing the three fiscal years presented in the chart. c. Cooley Law School Stadium: Chart 1: Cooley Law School Stadium Expense Review This is a 3 year comparison of actual expense compared to budget for March, as well as a 3 year view of YTD actuals compared to YTD budget. Overall, our monthly expenses came in over budget by $360o with utilities, maintenance of equipment and concessions/catering providing the most impact. There was a repair to the box office intercom system as well as filter replacements for most kitchen equipment (start of season). YTD Operating Expense has increased by $22,000 compared to last year with the supplies/materials categories providing the biggest impact. This increase is attributed to the replacement of the nets. Chart 2: YTD Actual Expense compared to Annual Budget This is a view of where the stadium is through March when compared to the fiscal year budget. The stadium has contained its expenses to 72% of the expense budget. At the end of March, excess revenue over expense is ahead of budget. Chart 3: Cooley Law School Stadium Unreserved Equity This is a 3 year comparison of Unreserved Equity. Through nine months of the fiscal year, unreserved equity continues climbing, but has work to do to reach the numbers reflected at the high point of FY16. d. Lansing Center: Chart 1: Lansing Center Revenue Review This is a 3 year comparison of actual revenue compared to budget for March, as well as a 3 year view of YTD actuals compared to YTD budget. YTD Operating Revenue has increased by 2% or $1i1,837 when compared to last year. Revenue for March 2018 is down $64K when compared to last year as some of the events from March 2017 have shifted to April 2o18 or simply are not repeating this year. Some events that occurred this month include MI Assoc. of Broadcasters, MI Milk Producers, Mary Kay and MI Municipal League. Chart 2: Lansing Center Expense Review This is a 3 year comparison of actual expense compared to budget for March, as well as a 3 year view of YTD actuals compared to YTD budget. YTD Operating Expense has increased when compared to last year by 2% or $ggk with Event Expenses and Food&Beverage providing the largest impact. LEPFA Board of Commissioners Meeting Page 4 April 24, 2018 Chart 3: Lansing Center Revenue Budget to Actual The blue part of the bar represents our FY18 YTD Budget,while the orange part of the bar represents the amount that we exceeded the budget for revenue. YTD Revenue exceeds budget by more than $813K. Chart 4: Lansing Center Expense Budget to Actual The blue part of the bar represents our FY18 YTD Budget,while the orange part of the bar represents the amount that we exceeded the budget for expense. YTD Expenses exceeds budget by more than $432k. Chart 5: Lansing Center Unreserved Equity This represents a 3 year comparison of Unreserved Equity. Through nine months, unreserved equity has increased, continues to climb and remains strong compared to the prior two fiscal years. Chart 6: Lansing Center Unearned Revenue-Advance Rent This is a 3 year comparison of Unearned Revenue-Advance Rent which is an indicator of future business. Unearned Revenue-Advance Rent has dropped when compared to last month, but continues to follow the trend of the prior two fiscal years. Chart 7: YTD Revenue and Expense to Annual Budget This is a view of where the Lansing Center is through March when compared to the fiscal year budget. The Lansing Center expenses are 79% of the expense budget. At the end of nine months, expenses are up to budget with Event Expense and Food and Beverage providing the greatest impact. We did recognize the expense of our second adjusting entry that was a result of our audit that was completed in October 2017. The final adjusting entry will happen in the final quarter of the fiscal year. Switching to revenue, the Lansing Center has captured 86% of the revenue budget. At the end of the ninth month of the fiscal year, excess revenue over expense is ahead of budget. Secretary/Treasurer, Cindy Bowen, made a motion to accept the March 2o18 financial statements for Groesbeck Golf Course, 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. C. PRESIDENT&CEO REPORT: Scott Keith reported the following: 1. Annual Report: Scott distributed copies of the 2017 Annual Report to everyone present and reviewed highlights in the report. Most notable in the review include minor improvements to the interior of Lansing Center, IT infrastructure, active shooter/emergency training, customer service training. Scott reported on the other three properties as well and commented on the pictures inside. Scott reported the July 4th game at LEPFA Board of Commissioners Meeting Page 5 April 24, 2018 Cooley Law School Stadium was the highest attended minor league game in in history. Scott thanked LEPFA Departments who created this report; as it is done completely in-house. 2. Thank-You Notes: Scott shared a letter from the food bank thanking LEPFA for the food donations made to their facility. In addition, a thank -you note from Burcham Hills for the donation made in Kevin Meyer's dad's name on behalf of LEPFA due to his passing and from Shelly for the gift basket and sympathies on the passing of her grandma. Scott noted there were several staff family losses in April in addition to the above: Steve Keast's grandpa and Paul Ntoko's father-in-law. 3. Lu nuts: Scott has extra Lugnuts magnets available to anyone who wants one. The All-Star Game will be held at the Stadium on June 19th and there will be many events on that day. Scott reported all 16 teams want to host the All-Star game, so it will be another 16 years before the game is held in Lansing. Hosting this game brings many room nights to Lansing based upon crowd numbers up to 10,000 in attendance. Weather has impacted the first few games of the season. 4. LSJ Golf Guide: Scott reported the gold guide in last Sunday's LSJ featured Groesbeck in three of the pages of the guide; including the paid ad we inserted. Scott complimented the Marketing team on a job well done for this article. 5. DLI Community Impact Information: Scott distributed this and noted Shelly will send an electronic copy to everyone. 6. Dapper Dads: Scott stated he is currently in 8th place and reminded everyone to keep voting. 7. Groesbeck: Scott noted both Greg and Tom are doing a great job and are working hard on the course's physical appearance and club house repairs. 8. Common Ground: Scott stated there is one final announcement to come next week. 9. MargaritaFest: This event will be announced next week; as MI Liquor Control has approved the event. Scott reviewed the details of the event and noted sponsorships are needed if anyone knows who may like to sponsor the event. 10. Administrative Professionals Day: Scott reminded everyone to thank their Administrative Professionals tomorrow; extending his thanks to Shelly, Marci, Julie, and Kemoni. Commissioner Barron asked of there was any damage due to the recent flooding. Scott stated there wasn't too much damage, most of the debris in the river floated to the other side of the river. Some mulch was washed away, and cleaning continues along the Riverwalk. Commissioner Barron also complimented the look in the lower level parking lobby. Commissioner Bowen asked Paul if Lansing Center has/had any of the contaminated romaine lettuce in inventory. Paul stated that neither Sysco nor GFS receive romaine lettuce from Arizona. D. PERSONNEL COMMITTEE: Scott reported on behalf of Commissioner LEPFA Board of Commissioners Meeting Page 6 April 24, 2018 Dobernick(who is absent due to illness). Scott reported the Committee met last week and AMTA ratification of their contract, pension plan transfer, and healthcare renewal were topics discussed. Scott stated the pension transfer could take a couple of months and we are keeping staff informed of the process. Scott reported the Healthcare Committee has completed it's evaluation of plans offered and will stay with PHP but move to a PPO system. Scott stated this about $9,000 over budget and he and Jennifer were able to make changes in the budget to accommodate this increase. Scott stated information for the CEO Annual Evaluation will be forthcoming. Chairman Butler asked for a motion to approve the Personnel Committee report as presented by Scott Keith. MOTION: Commissioner Janssen SECOND: Commissioner Barron E. STRATEGIC PLANNING COMMITTEE: Commissioner Mickens stated this Committee's meeting has been rescheduled for May loth to accommodate many schedules. F.VICE-PRESIDENT/STAFF REPORTS: 1. Scott H.: Scott stated the golf course is now officially open; as weather permits. The weekend saw about 300 golfers on the course. A report was presented about G.A.M. which is a golf course rating system and that because of the ongoing relationship Greg has with them, they will provide a rating by June. Scott Keith discussed the ShutoCon event and the financial challenges associated with the owner of the event. Scott explained that a payment system was put in place last year to accommodate the owner and will likely do that again this year. Scott brings this to the attention of this Board so they will be informed in case they hear negative talk about Lansing Center not hosting any longer. Commissioner Bowen asked why we continue to have a relationship with this event is we are not receiving payments. Scott explained we were trying to be tolerant and offer payment solutions, since we've had a good relationship. Scott noted last year was the first year (in 5 years) that payment has been an issue for this event. A lengthy discussion regarding this event and the pros/cons of having it or letting it go, was held. Councilwoman Washington and Commissioner Barron both stated their concerns about nonpayment and Lansing Center being a City funded entity. Eric Brewer (Ex-Officio), asked how much revenue will be lost if this event is cut from Lansing Center. LEPFA Board of Commissioners Meeting Page 7 April 24, 2018 Scott stated Lansing Center will lost about $40,000; however, the revenue loss to the community is huge. Scott stated he brings this issue to the Board because he wants everyone aware of the circumstances surrounding this event in case there is backlash later for not having the event at Lansing Center. 2. Paul: Paul reported his department has been working on menu updates and should be ready by the new fiscal year. The menu will feature new packages and an increase in prices. Commissioner Bowen asked how much of an increase will we see? Paul stated 5% - io%; which is comparable to local competition. 3. Heidi: Heidi stated that Scott Keith summarized many points in the Administrative report.A review of Worker's Comp claims was presented. A health benefits meeting for all staff will be held soon. Heidi reported on travel insurance for those who may travel out of the country. VII. COMMISSIONER AND STAFF COMMENTS: A. Commissioner Barron: Asked if Comcast worked with LEPFA on the fiber issue for Groesbeck. Scott K. stated Comcast did not, it was pricey and ACDnet came through for us. B. Brian McGrain (Ex-Officio): Reported his department is working on many items for LEPFA and the downtown area. VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: Jack Alexander provided a history of the bidding process that used to be in place for hosting the All Star game. X. ADJOURNMENT: At 9:o8 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: JUNE 269 2018 LANSING CENTER - GOVERNOR'S ROOM Respectfully submitted, Shelly Busse, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING MAY 22, 2018 MINUTES At 8:oi a.m. Chairman James W. Butler III called the meeting to order in the Governor's Room, of Lansing Center, 333 E. Michigan Avenue; Lansing, Michigan 48933• COMMISSIONERS PRESENT: Tim Barron, Angela Bennett (Ex-Officio), Cindy Bowen, Eric Brewer (Ex-Officio), James W. Butler III, Price Dobernick, Larry Leatherwood, Brian McGrain (Ex-Officio), Charles Mickens and James Stajos. COMMISSIONERS EXCUSED: Charles Janssen OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko, Tristan Wright, Heidi Brown, Shelly Busse, Thomas Stouffer, Greg Webber - Lansing Entertainment & Public Facilities Authority; Jody Washington — Lansing City Council, Chad Gamble, Joseph Abood — City of Lansing, Joseph Abood, Patrice Drainville — Waterfront Bar &Grill, Harrold Lehman, and Jack Alexander. III. ESTABLISHMENT OF THE AGENDA: No changes to the agenda. IV. PUBLIC COMMENT: Jack Alexander asked Scott if the attendance numbers for the last few years (335,000, 320,000, 311,000) going down is a concern. Jack also asked for follow-up information concerning the immediate needs of the ball park, long term needs of the ball park and how much money total is needed to meet the immediate and long term needs of the ball park. Scott stated the attendance numbers aren't a concern; there are shifts/cycles in any event that is based on weather. The first several games of last year and even more this year, had to be cancelled due to poor weather. Scott stated that Tristan will provide Jack with information regarding the immediate/future needs of the ball park. Patrice Drainville, of Waterfront Bar &Grill (City Market) stated she is here today to ask what the future of the Lansing City Market is. Scott reported that during last night's City Council meeting; Council voted to cut the subsidy for the Lansing City Market in half; noting this was a decision made by the Mayor and City Council. Due to this cut; the City Market will not have enough funds to operate for the entire year — potentially only through the summer season. There are plans in the works for an operational change to the City Market. Brian McGrain (Ex-Officio) stated that he intends to meet with City Market vendors within the next couple of days to discuss this issue. V. APPROVAL OF THE MINUTES OF APRIL 24, 2o18• Chairman Butler asked for a motion for approval of the minutes as published. MOTION: Commissioner Barron SECOND: Commissioner Mickens Motion unanimously carried. LEPFA Board of Commissioners Meeting Page 2 May 22, 2018 VI. REPORTS: A. CHAIRMAN'S REPORT: No report. B. FINANCE COMMITTEE REPORT: Vice-Chair, Cindy Bowen reported the Finance Committee met yesterday and discussed April financial information for all properties. 1.April Financials: Jennifer McFatridge,Vice-President of Finance, reported the following financial information: a. Groesbeck Golf Course: Chart 1: Groesbeck Revenue Review This a view of actual revenue compared to budget for April, as well as a view of YTD actuals compared to YTD budget. The overall budget for Groesbeck from January to June was predetermined by City of Lansing/Parks and Rec. Revenue will begin to increase as League and Season Pass funds have started being allocated in April and will continue through September. In April, we collected $2oK in League payments as 1/3 of the leagues began at the end of April. Concession Sales are up about go% when compared to last year. Finally, in April there were more than 1400 rounds of golf. Chart 2: Groesbeck Expense Review This is a view of actual expense compared to budget for April, as well as a view of YTD actuals compared to YTD budget. Overall, our monthly expenses came in under budget. Categories providing the largest impact to the budget were Rents/Leases, Professional Services, and Food and Beverage. In the Rents/Leases category is the expense of Golf Cart rental as well as some Grounds equipment to cut sod. The professional services category expense is related to WIFI services established between the Clubhouse and Maintenance Barn. Finally, Food and Beverage is related to annual renewal of food services licenses and equipment purchases. Chart 3: Groesbeck Unreserved Equity This is a view of Unreserved Equity. This continues to change its appearance as the golf course is in full operation for the season, revenue has begun to flow and season startup expenses are occurring. b. Lansing City Market: Chart 1: City Market Revenue Review This a 3 year comparison of actual revenue compared to budget for April, as well as a 3 year view of YTD actuals compared to YTD budget. YTD Operating Revenue has decreased by 6% or $5,184 when compared to last year.April revenue is slightly above last year and is attributed an increase in daily booth rental. LEPFA Board of Commissioners Meeting Page 3 May 22, 2018 Chart 2: City Market Expense Review This is a 3 year comparison of actual expense compared to budget for April, as well as a 3 year view of YTD actuals compared to YTD budget. Overall, our monthly expenses came in under budget and to last year. The categories providing the largest impact are Salaries/Wages, Fringe due to the vacancy in the market manager role as well as the Utilities category. Chart 3: YTD Revenue and Expense compared to Annual Budget This is a view of where the City Market is through April when compared to the fiscal year budget. The market has contained its expenses to 57% of the expense budget while capturing 70% of the revenue budget. At the end of the April, excess revenue over expense is ahead of budget. Chart 4: City Market Unreserved Equity This is a 3 year comparison of Unreserved Equity. Through io months of the fiscal year, unreserved equity continues climbing, and again has established the high point when comparing the three fiscal years presented in the chart. c. Cooley Law School Stadium: Chart is Cooley Law School Stadium Expense Review This is a 3 year comparison of actual expense compared to budget for April, as well as a 3 year view of YTD actuals compared to YTD budget. Overall, our monthly expenses came in over budget with rents/leases, maintenance of facilities and supplies/materials providing the most impact. Space heaters were rented to assist with temperature control in the locker rooms, water being turned on and April weather created concern for pipes to freeze. Maintenance of Facilities experienced repairs to the elevators as well as HVAC repairs. Finally, supplies and materials incurred the settlement of the stadium renovation. YTD Operating Expense has increased by nearly $46,00o compared to last year with the supplies/materials categories providing the biggest impact. This increase is attributed to the settlement of the stadium renovation and replacement of the nets. Chart 2: YTD Actual Expense compared to Annual Budget This is a view of where the stadium is through April when compared to the fiscal year budget. The stadium has contained its expenses to 87% of the expense budget.At the end of April, excess revenue over expense is behind budget. Chart 3: Cooley Law School Stadium Unreserved Equity This is a 3 year comparison of Unreserved Equity. Through 10 months of the fiscal year, unreserved equity is following a downward trend represented historically at this same time of year. *Councilwoman Jody Washington entered the meeting at 8;18 a.m. LEPFA Board of Commissioners Meeting Page 4 May 22, 2018 d. Lansing Center: Chart 1: Lansing Center Revenue Review This is a 3 year comparison of actual revenue compared to budget for April, as well as a 3 year view of YTD actuals compared to YTD budget.YTD Operating Revenue has decreased by less than 1% or $7,520 when compared to last year. Revenue for April 2018 is down $119K when compared to last year as some of the events from April 2017 have shifted to May 2018 or simply are not repeating this year. Some events that occurred this month include Michigan Safety Conference, MI Dental, NUWAY Nationals 2018 (Wrestling), and Nexstar National Talent. Chart 2: Lansing Center Expense Review This is a 3 year comparison of actual expense compared to budget for April, as well as a 3 year view of YTD actuals compared to YTD budget. YTD Operating Expense has increased when compared to last year by 1% or $67k with Event Expenses, Supplies/Materials and Misc. Expenses providing the largest impact. Chart 3: Lansing Center Revenue Budget to Actual The blue part of the bar represents our FY18 YTD Budget, while the orange part of the bar represents the amount that we exceeded the budget for revenue. YTD Revenue exceeds budget by more than $719K. Chart 4: Lansing Center Expense Budget to Actual The blue part of the bar represents our FY18 YTD Budget,while the orange part of the bar represents the amount that we exceeded the budget for expense. YTD Expenses exceeds budget by more than $442k. Chart 5: Lansing Center Unreserved Equity This represents a 3 year comparison of Unreserved Equity. Through to months, unreserved equity has increased, continues to climb and remains strong compared to the prior two fiscal years. Chart 6: Lansing Center Unearned Revenue-Advance Rent This is a 3 year comparison of Unearned Revenue-Advance Rent which is an indicator of future business. Unearned Revenue-Advance Rent has climbed when compared to last month and continues to follow the trend of the prior two fiscal years. Chart 7: YTD Revenue and Expense to Annual Budget This is a view of where the Lansing Center is through April when compared to the fiscal year budget. The Lansing Center expenses are 89% of the expense budget. At the end of to months, expenses are up to budget with Event Expense and Supplies/Materials providing the greatest impact. Switching to revenue, the Lansing Center has captured 96% of the revenue budget. At the end of the to month of the fiscal year, excess revenue over expense is ahead of budget. LEPFA Board of Commissioners Meeting Page 5 May 22, 2o18 Vice-Chair, Cindy Bowen, asked for a motion to accept the April 2018 financial statements for Groesbeck Golf Course, 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 Stajos Motion unanimously carried. C. PRESIDENT&CEO REPORT: Scott Keith reported the following: 1. Introduction: Tristan introduced Tom Stouffer, Groesbeck Golf Course Operations Manager; noting Tom has been working hard the last two months in preparation for the golf course's opening and has been doing a greatjob. Tom thanked Tristan and Scott for having him here today. Tom reported he and Greg have been working hard to make the golf experience at Groesbeck more pleasing to golfers; noting many things have been neglected over the years that need improvements. Tom stated he and Greg believe they are in a position to make things better that will make Groesbeck more competitive other neighboring golf courses. Tom stated they have a good plan and if we invest in and care for the course, it will only get better. Scott Keith stated LEPFA is glad to have both Tom and Greg. Scott Keith reported the paving of the entrance will be done when weather permits and the sign has been delayed due to a material issue; should be complete by mid-June.As part of the new hole construction project; the barn area will be paved soon. Scott stated he had a meeting to discuss future improvements to the course. Chairman Butler asked when the Board could expect a tour of the golf course. Scott stated as soon as the weather cooperates, and the sign/entrance has been completed. 2. MargaritaFest: Scott reported so far, 12 or 13 restaurants have singed up; including Bordeaux of the Crowne Plaza West—thanks to CVB for making that happen. Scott reported VIP tickets have sold out and 38o of 600 GA tickets have been sold so far. Scott reviewed the sponsors and vendors; along with the schedule of events for the night. Scott reported there will be Art Path on the Rivertrail on June 8th; if interested in attending, please let Scott know. 3. Common Ground: Scott reported ticket sales are 6% - 7% ahead of last year. We are working on final logistics; it is a challenge to start on July 5th since the City has the park on the 4th for fireworks —but we'll be ready. Commissioner Leatherwood asked who has control of riverfront improvements — LEPFA, City or a combination. Scott stated that the Adado improvements are handled by the Parks &Rec department, along with the City,Arts Council and noted LEPFA will help. 4. Healthcare: Scott reported LEPFA will stay with PHP,but will move to PPO system due to ratings changes. Scott noted this is a good move; however, an increase in cost of 9% is expected. 5. Pension: A meeting for Staff will be held so Alan Van Gorder can review plan. LEPFA Board of Commissioners Meeting Page 6 May 22, 2018 *Greg Webber entered the meeting at 8:45 a.m. 6. Nominating Committee: The Committee will meet directly following this meeting to discuss next year's Committee. 7.Ad Hoc Committee: Scott reported the Ad Hoc Committee had a meeting last week; focus was on Lansing Center and how it compares to other competitive facilities in the area. Items of note include Grand Rapids planning the next renovation and Novi is under construction to expand. These cities are attempting to attract Association business —which is our core customer base. Both LEPFA and the CVB are aware, but it is difficult to compete when the competition is new or newly renovated. Brian McGrain (Ex-Officio) spoke about parking in the downtown Lansing area. The CVB and LEPFA are working together on a joint facility feasibility study. Funding mechanisms for Lansing Center were discussed; along with raising the bed tax. In addition to Committee members present, the Mayor and Samantha Harkins were present as well. Discussion regarding the Lansing City Market included Angela Bennett (Ex-Officio) reporting Council initially cut the City Market budget completely, but compromised on cutting the budget in half. Councilwoman Jody Washington confirmed this information. 8. Budget: Scott reported LEPFA budget was passed through City Council last night; with the subsidy for the City Market cut in half. A plan for redeveloping the City Market must be developed or it will close. 9. Parking Presentation: Scott introduced Chad Gamble to everyone and Chad gave a presentation on parking in the Lansing area and an overview of the five year parking plan for the downtown area. D. PERSONNEL COMMITTEE: Scott reported the committee had a conference call in lieu of a meeting. The call focused on the President& CEO annual review as well as the updated weapons policy. Scott stated policy was approved by our attorney and will be presented to Board next month. E. STRATEGIC PLANNING COMMITTEE: Commissioner Stajos reported the committee met and was given a presentation by Honeywell regarding the Lansing Center infrastructure. Commissioner Stajos stated he can't see how we can afford not to do this based on the savings that will be had by having the upgrades done. Brian McGrain (Ex-Officio) stated there were a lot of opportunities for savings that should be explored. A discussion regarding the outdated fire system, new security for doors, and a move away from steam was held. It was noted a meeting with Bill Danhoff would be beneficial to discuss funding/financing for these upgrades. F. COMINATING COMMITTEE: Scott stated this committee will meet directly following this meeting. LEPFA Board of Commissioners Meeting Page 7 May 22, 2o18 G. VICE-PRESIDENT&STAFF REPORTS: 1. Scott Horgan: Scott stated the new customer service survey has been well received and the feedback is much better than the previous evaluation. Since the new survey has been in use; customer expectations have been exceeded 88% of the time. Staff engagement, customer service, and seamless communication are the highest rated categories. Better parking options along with much needed cosmetic updates to the Lansing Center are the top two areas our customers say we need to improve upon. Scott stated other comments include Lansing Center as being outdated and lacking technology. MI Dental Assn. has implied they would be open to other venues that offer these things. Chairman Butler asked Scott what the economic impact would be on Lansing should MDA decide to leave. Scott stated MDA is the leader in Associations and if the leave; others will follow. Commissioner Bowen stated the hospitality business is vested in this as well; noting their business suffers too. She stated we have to get ahead of this so future business won't be lost to competition. Scott stated Greg Horgan, Groesbeck Golf Course Manager is here to introduce himself. Greg introduced himself to the Board and reviewed his golf course management experience. Greg stated he and tom have been working hard and business is doing well; although the weather could be better. 2. Paul Ntoko: Paul reported he and his staff are prepping for MargaritaFest and Common Ground. 3. Heidi Brown: Heidi reported healthcare benefits for yearly renewal will be effective June 1, 2018. Heidi reported on LEPFA U planning, the weapons policy, and a pension update. VII. COMMISSIONER AND STAFF COMMENTS: A. Scott Keith: Scott invited everyone to the All Star game scheduled for June 19, 2018. The LEPFA suite is available; if interested in attending, please let Shelly or Scott know. Scott also reported that both he and Commissioner Bowen will attend the Mackinac Conference next week. B. Commissioner Stajos: Commissioner Stajos emphasized the importance of events held downtown, including MargaritaFest, and the economic impact these events have for downtown businesses. C. Angela Bennett (Ex-Officio): Angela thanked Scott Keith for his work with the budget process. D. Patrice Drainville (,public attendee): Reiterated the need for information on the City Market's future. VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: X. ADJOURNMENT: At 9:38 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: AUGUST 28, 2018 LANSING CENTER - GOVERNOR'S ROOM A REMINDER: THERE IS NO MEETING IN JULY Respectfully submitted, Shelly Busse, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING JUNE 26, 2o18 MINUTES At 8:oo a.m. Chairman James W. Butler III called the meeting to order in the Conference Room of the Greater Lansing Convention &Visitors Bureau, located at 500 E. Michigan Avenue; Lansing, Michigan 48912. COMMISSIONERS PRESENT: Tim Barron, Eric Brewer (Ex-Officio), James W. Butler III, Price Dobernick, Charles Janssen, Larry Leatherwood, Brian McGrain (Ex- Officio). COMMISSIONERS EXCUSED: Angela Bennett (Ex-Officio), Cindy Bowen, Charles Mickens, James Stajos. OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko, Tristan Wright, Heidi Brown, Shelly Busse - Lansing Entertainment & Public Facilities Authority; Patrice Drainville — Waterfront Bar & Grill, Harrold Lehman, and Jack Alexander. III. ESTABLISHMENT OF THE AGENDA: Chairman James W. Butler III stated the Nominating Committee report and Personnel Committee report will be moved to the top of the agenda. IV. PUBLIC COMMENT: Jack Alexander stated the in formation he was seeking was not found in the report he received. Jack stated he is looking for detailed lists of work that needs to be done immediately, and all future work along with the cost of said work. Jack reported the digital board that faces Larch St. is scrambled and the board facing Cedar St. works occasionally. Patrice Drainville, of the Waterfront Bar & Grill, stated her purpose here today is to find out what is happening with the City Market; noting she attended the City Council meeting last night and stated it was reported during that meeting that a Jackson Brewery is moving in to the City Market. Scott Keith, President &CEO, stated the City Market budget has been cut and the budget is not available for the entire fiscal year. Scott stated there are a lot of rumors/speculation with what is happening at the Market; but nothing has been determined. Scott noted there are developmental plans; but in the end, the city will need to find out what the public wants and what options are available. Scott asked Jack Alexander to stick around to talk after the meeting re stadium. V. APPROVAL OF THE MINUTES OF MAY 22, 2018: Chairman Butler asked for a motion for approval of the minutes as published. MOTION: Commissioner Leatherwood SECOND: Commissioner Barron Motion unanimously carried. LEPFA Board of Commissioners Meeting Page 2 June 26, 2018 VI. REPORTS: A. NOMINATING COMMITTEE: Commissioner Barron, Chair of the Committee reported the Committee met on May 22nd to discuss who will serve for the 2o18 — 2019 session. The Committee nominated Commissioner Bowen as Chair, Commissioner Dobernick as Vice-Chair, and Commissioner Stajos as Secretary/Treasurer. Commissioner Barron stated a motion is required to approve the Committee's nominations. MOTION: Chairman Butler APPROVE: Commissioner Janssen Motion unanimously carried. B. PERSONNEL COMMITTEE : Commissioner Dobernick, Chair of the Committee stated the meeting will enter a CLOSED session to discuss the President &CEO's annual evaluation. At 8:05 a.m. roll was taken and Commissioners present: Barron, Butler, Dobernick, Janssen, Leatherwood. At 8:3o a.m. roll was taken to enter into an OPEN session; Commissioners present: Barron, Butler, Dobernick, Janssen, Leatherwood. A Motion was made to approve the President&CEO's evaluation as presented and approve the recommended salary administration as presented by the Personnel Committee. MOTION: Commissioner Dobernick SECOND: Commissioner Janssen Motion unanimously carried. C. CHAIRMAN'S REPORT: No report. D. FINANCE COMMITTEE: Jennifer McFatridge, Vice-President of Finance, reported the following information: 1. May 2o18 Financial Reports: a. Groesbeck Golf Course Chart 1: Groesbeck Revenue Review This a view of actual revenue compared to budget for May, as well as a view of YTD actuals compared to YTD budget. The overall budget for Groesbeck from January to June was predetermined by City of Lansing/Parks and Rec. In yesterday's finance committee, it was shared that the COL gave us the full year budget and not a half year. I will need to make adjustments to our budget to get the reports to reflect accurately. I did not do that before this morning's meeting as I wanted to review the LEPFA Board of Commissioners Meeting Page 3 June 26, 2018 entries and ensure it was correct, rather than doing it in haste. Revenue is increasing as League and Season Pass funds are being allocated and will continue through September. In May, Concession Sales are up more than go% when compared to last year, with Beer sales accounting for 6o% of that number. Finally, in May there were more than 4,30o rounds of golf. Chart 2: Groesbeck Expense Review This is a view of actual expense compared to budget for May, as well as a view of YTD actuals compared to YTD budget. Overall, our monthly expenses came in under budget. Categories providing the largest impact to the budget were Professional Services, Food and Beverage and Supplies/Materials. In the professional services category expense is related to IT services at the Clubhouse and Maintenance Barn. In Food and Beverage the expense is related to concessions labor and the cost of goods purchased. Finally, in Supplies/materials, the largest impact to this line is the purchase of fuel for the different equipment on the course (i.e. cart fuel, diesel fuel and equipment fuel $2400) Chart 3: Groesbeck Unreserved Equity This is a view of Unreserved Equity. This continues to change its appearance as the golf course is in full operation for the season, revenue has begun to flow and season expenses are occurring. b. City Market Chart 1: City Market Revenue Review This 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 decreased by 5% or $5,497 When compared to last year . April revenue is relatively flat to last year. Chart 2: City Market Expense Review This is 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 and to last year. The category providing the largest impact is Professional Services category and is attributed to IT and legal services. Chart 3: YTD Revenue and Expense compared to Annual Budget This is a view of where the City Market is through May when compared to the fiscal year budget. The market has contained its expenses to 67% of the expense budget while capturing 77% of the revenue budget. At the end of the May, excess revenue over expense is ahead of budget. Chart 4: City Market Unreserved Equity This is a 3 year comparison of Unreserved Equity. Through 11 months of the fiscal year, unreserved equity has dropped slightly when compared to last month, but has established the high point when comparing the three fiscal years presented in the chart. LEPFA Board of Commissioners Meeting Page 4 June 26, 2018 c. Cooley Law School Stadium Chart 1: Cooley Law School Stadium Expense Review This is 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 and to last year. The most significant impact to May's budget was an NCR software maintenance agreement fee of$300, most other categories were under budget. YTD Operating Expense has increased by nearly$38,000 compared to last year with the supplies/materials categories providing the biggest impact. This increase is attributed to the settlement of the Stadium Renovation and replacement of the nets. Chart 2: YTD Actual Expense compared to Annual Budget This is a view of where the stadium is through May when compared to the fiscal year budget. The stadium has contained its expenses to 94% of the expense budget.At the end of May, excess revenue over expense is behind budget. Chart 3: Cooley Law School Stadium Unreserved Equity This is a 3 year comparison of Unreserved Equity. Through 11 months of the fiscal year, unreserved equity has begun climbing, but has work to do to reach the numbers reflected at the high point of FY16. d. Lansing Center Chart 1: Lansing Center Revenue Review This is 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 less than 1% or $18,372 when compared to last year. Revenue for May 2018 is up $26K when compared to last year. Some events that occurred this month include MSHDA, MALA, MI Industrial and Technology Education Society(MITES), and INCH Chart 2: Lansing Center Expense Review This is 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 when compared to last year by 1% or $47k with Professional Services, Marketing and Maintenance of Facilities providing the largest impact. Chart 3: Lansing Center Revenue Budget to Actual The blue part of the bar represents our FY18 YTD Budget, while the orange part of the bar represents the amount that we exceeded the budget for revenue. YTD Revenue exceeds budget by more than $844K. Chart 4: Lansing Center Expense Budget to Actual The blue part of the bar represents our FY18 YTD Budget, while the orange LEPFA Board of Commissioners Meeting Page 5 June 26, 2018 part of the bar represents the amount that we exceeded the budget for expense. YTD Expenses exceeds budget by more than $472k. Chart 5: Lansing Center Unreserved Equity This represents a 3 year comparison of Unreserved Equity. Through 11 months, unreserved equity has increased slightly from last month, continues to climb and remains strong compared to the prior two fiscal years. Chart 6: Lansing Center Unearned Revenue-Advance Rent This is a 3 year comparison of Unearned Revenue-Advance Rent which is an indicator of future business. Unearned Revenue-Advance Rent has dropped a when compared to last month, and continues to follow the trend of the prior two fiscal years. 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 98% of the expense budget. At the end of 11 months, expenses are up to budget with Event Expense and Supplies/Materials providing the greatest impact. Switching to revenue, the Lansing Center has captured 107% of the revenue budget. At the end of the 11 month of the fiscal year, excess revenue over expense is ahead of budget. Secretary/Treasurer, Price Dobernick, made a motion to accept the May 2o18 financial statements for Groesbeck Golf Course, 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 Dobernick ACCEPT: Commissioner Barron Motion unanimously carried. 2.Amended City Market Budget: Due to the subsidy cut to the City Market, it necessary to amend the current City Market budget. This amendment requires approval of the Board. MOTION: Commissioner Barron APPROVE: Commissioner Dobernick Motion unanimously carried. E. PRESIDENT&CEO REPORT: Scott Keith reported the following: 1. Weapons Policy: This policy was updated by the Personnel Committee and reviewed by our attorney and approved for implementation. 2. Ad Hoc&Executive Committee Meeting: This meeting was held last month; items of discussion included the Downtown Lansing Entertainment District. It was recommended a member from the Chamber attend the next meeting and suggested this become a long standing committee. Funding mechanisms were also discussed. LEPFA Board of Commissioners Meeting Page 6 June 26, 2018 3.City Council Meeting: During last night's Council meeting; there was a suggested change to the Ordinance for the City Market. Repealing the location of the City Market to eliminate its exact location. This does not mean to eliminate the City Market;just its location. Currently, the way the Ordinance is written, restricts future development of the area. A public hearing is scheduled for the July 9th City Council meeting. 4. Groesbeck Budget: There is a discrepancy between the budget the City gave us and the one the City has on file. 5. Miscellaneous: o Commissioner Janssen was awarded the Governor's Philanthropy Award o WLNS ran a story about the City Market closing and Scott was not informed until yesterday. Scott did provide a response; however, there is a statement in the article that reads: "LEPFA has not communicated with the vendors at the City Market to tell them of the closing." Scott stated this is an untrue statement; as all the vendors have received written notice and a written notice from the Mayor's office. o We received a note of commendation from the Event Coordinator for the 517 Day event o We received a complimentary note from the Lansing Art Gallery as well, for the support of the ARTPath project. 6. MargaritaFest: The event went well; there were 14 restaurants that participated and 2 food trucks. The Event did make money and a portion of the proceeds will go to Ingham County Animal Shelter. MP Social was voted best margarita. 7. Thank Yous: LEPFA received a thank you note from the Freed family with regard to the passing of Barry's Father. LEPFA also received a thank you note from the Empty Plate auction for our donation to the event. Scott offered his thanks to all who supported him in is Dapper Dads effort; the event raised almost one million dollars. 8. Common Ground: The build begins next week. Ticket sales are pacing ahead of last year's sales. Scott stated that some information regarding the proposed plan for Adado Park will be shared at the event. F. STRATEGIC PLANNING COMMITTEE: Scott reported the Committee did not meet last week. The meeting will be rescheduled prior to the next meeting. G.VICE-PRESIDENT&STAFF REPORTS: 1. Tristan Wright: Tristan reported on the Active Violence training that took place during LEPFA U last week and reviewed the session; stating the goal is to have an actual "live" training session. 2. Heidi Brown: Heidi also reported on LEPFA U and reviewed the entire day's program. A gift and recognition certificate were given to those who participated in last year's LEPFA U sessions. Heidi reported she is currently working on the Summary Plan Description and Supervisors training. 3. Scott Horgan: Scott stated year end is wrapping up; and should be a really good year. This Thursday there will be a Sales Strategy Planning (for next year) meeting. Scott stated we are heading into a cycle of deficit and will LEPFA Board of Commissioners Meeting Page 7 June 26, 2018 need to make-up $200,000. Scott reported Groesbeck is doing well; despite 9 days of rain. Scott reviewed upcoming outings and events. 4. Paul Ntoko: Paul stated that MargaritaFest was a success and he's very pleased. He also stated he learned a lot from the experience. 5. Scott Keith: Scott stated that sometime this late summer, he will meet with the Executive team to discuss Committee members for the upcoming LEPFA Board session. Scott reported that M3Group continues working on our Sponsorships and is making progress.A meeting will be held in the next few weeks to discuss contract renewal, branding, and Public Relations. VII. COMMISSIONER AND STAFF COMMENTS: A. Tristan Wright: Tristan thanked the City Parking Department for the construction upgrade on the parking lots associated with Lansing Center and reported that road work on the eastbound lanes of Michigan Ave. will start this Thursday. B. Heidi Brown: Heidi thanked the Board for its support of the Weapons Policy. C. Commissioner Janssen: Commissioner Janssen thanked LEPFA Staff for another great year and thanks in advance for all the hard work that will be put into Common Ground. He also stated that LEPFA has morphed into so much more than it was 20 years ago. D. Harold Lehman: Stated that LEPFA is on top of what is happening at City Council and "good luck." VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: No report. X. ADJOURNMENT: At 9:21 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: SEPTEMBER 25, 2018 LANSING CENTER - GOVERNOR'S ROOM Respectfully submitted, Shelly Busse, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING AUGUST 28, 2o18 MINUTES At 8:oo a.m. Chairwoman Cindy Bowen called the meeting to order in the Governor's Room of the Lansing Center, located at 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, Larry Leatherwood, Brian McGrain (Ex-Officio), and James Stajos, COMMISSIONERS EXCUSED: Angela Bennett (Ex-Officio), Charles Mickens OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko, Tristan Wright, Heidi Brown, Shelly Busse - Lansing Entertainment & Public Facilities Authority; David Russell — Foster, Swift, Collins & Smith, PC, Tiffany Dowling — M3Group, and Jack Alexander. III. ESTABLISHMENT OF THE AGENDA: Chairwoman Cindy Bowen stated the meeting will go into CLOSED SESSION for a legal review (with LEPFA's Attorney) of the Simmons litigation suit. IV. PUBLIC COMMENT: Jack Alexander stated he has been waiting 12 weeks for the ball park report he requested. He stated there has never been a list of repairs made to the ball park and that this report should only take 72 hours to put together. Jack stated he has been waiting, but still has received nothing. Jack stated this is a neglect of duty and asked how anyone could have confidence in you (Scott Keith) going forward. President & CEO, Scott Keith, reported that LEPFA does have a Capital list of projects for the ball park, and we meet with the Lugnuts annually to review and update. This report also covers future projects 5 and to years out. Scott reported there is also a daily and monthly list of projects. Scott stated that what Jack is looking for, may not be the type of report that LEPFA has. Scott stated that Jack did receive a report that included the Capital list last month. Scott told Jack that we would put that report together again and it will be available for pick-up at the Receptionist's desk on Tuesday, September 4, 2o18. We will look at creating a supplemental log of maintenance projects completed monthly/quarterly for review. However, any additional information requested may need to be done through the FOIA process. V. APPROVAL OF THE MINUTES OF JUNE 26 2o18: Chairwoman Bowen asked for a motion for approval of the minutes as published. MOTION: Commissioner Butler SECOND: Commissioner Barron Motion unanimously carried. LEPFA Board of Commissioners Meeting Page 2 August 28,2o18 VI. REPORTS: A. CHAIRWOMAN: Chairwoman Bowen stated at this time, the meeting will go into CLOSED SESSION. Roll Call for CLOSED SESSION: Commissioners Barron, Bowen, Butler, Dobernick, Janssen, Leatherwood, and Stajos — Present At 8:o6 a.m. the meeting went into CLOSED SESSION. Roll Call for OPEN SESSION; Commissioners Barron, Bowen, Butler, Dobernick, Janssen, Leatherwood, and Stajos — Present At 8:33 a.m. the meeting returned to OPEN SESSION. B. FINANCE COMMITTEE : Commissioner Stajos, Finance Committee Chair stated some changes have been made to the way this Committee will report financial information. Commissioner Stajos stated the Committee would like to receive questions from the Board prior to the monthly Board meeting, so the there will be answers ready for this report. This will allow Jennifer to reduce the amount of information she includes in her report. Jennifer will focus her report on highlights, issues, and variances. 1. June (DRAFT) Financials: Jennifer McFatridge, Vice-President of Finance, reported the following information; noting June is in DRAFT form until the completion of the audit. Groesbeck Golf Course: The overall budget for Groesbeck from January to June was predetermined by the City of Lansing Parks and Rec department. The City of Lansing budget adjustment was in late June and the numbers reflected a full year, rather than 6 months. Revenue is increasing as League and Season Pass funds are being allocated and will continue through September. Concession sales are up more than 66% when compared to last year, with beer sales accounting for 59% of that number. Finally, in June, there were more than 4,000 rounds of golf. The monthly expenses came in over budget,but YTD expenses are under budget. Categories providing the largest impact were Salaries/Wages, Food and Beverage, and Maintenance of Facilities. The Salary/Wages category expense is related to part-time casual payroll, which includes grounds, Pro Shop, and rangers. These wages account for 66% of the total expense in June. The Food and Beverage expense is related to concessions labor, a new freezer purchase ($1,995), and the cost of goods purchased. Finally, Maintenance of Facilities , the largest expense line is due to the purchase of grounds supplies to tend to the greens and fairways. LEPFA Board of Commissioners Meeting Page 3 August 28,2o18 Unreserved Equity continues to change its appearance as the golf course is in full operation for the season. Revenue continues to flow and season expenses are occurring. Lansing City Market: YTD Operating Revenue has decreased by 7% or ($7,281) when compared to last year. Monthly Expenses came in over budget and flat to last year. Professional Services category had the largest impact on expenses due to legal services. The market has contained its expenses to 78% of the expense budget and has captured 88% of the revenue budget. At the end of June, Excess Revenue over Expense is ahead of budget.At the end of the fiscal year, Unreserved Equity had dropped slightly when compared to last month, but has established the high point when comparing the last 3 fiscal years. Cooley Law School Stadium: Monthly expenses came in over budget and compared to last year. A forklift repair was the biggest expense, long with HVAC repairs and concessions POS repairs.YTD Operating Expense has increased over last year with the Supplies/Materials categories providing the biggest impact. This increase is attributed to the settlement of the Stadium Renovation and replacement of the nets. At the end of the fiscal year, Unreserved Equity has decreased from the month before,but has finished slightly stronger than where it was at the beginning of the fiscal year. Lansing Center: YTD Operating Revenue has increased by 1%when compared to last year. Revenue for June 2018 is up when compared to last year. Some events that occurred this month include MargaritaFest, Midwestern Representatives, Lansing School District, MIHIN, and MDEQ. YTD Operating Expenses decreased by 4% when compared to last year. Those categories providing the largest impact this year include Maintenance of Equipment, Supplies/Materials, and Event expenses. YTD Revenue exceeds budget by more than $933,000. YTD Expenses exceeds budget by more than $582,000.At the end of the fiscal year, Unreserved Equity has decreased slightly from last month, but remains strong compared to the two prior fiscal years. Unearned Revenue Over Advanced Rent (future indicator of business), has dropped when compared to last month, and continues to follow the trend of the prior two fiscal years. LEPFA Board of Commissioners Meeting Page 4 August 28, 2018 The Lansing Center expenses are at 108% of the expense budget. At the end Of 12 months, expenses are up to budget with Event Expense, Supplies/Materials, and Food and Beverage providing the biggest impact. Lansing Center has captured 116% of the revenue budget.At the end of the 12 month fiscal year, Excess Revenue over Expense is ahead of budget. Secretary/Treasurer, James Stajos, motioned to accept the June (DRAFT) 2018 financial statements for Groesbeck Golf Course, 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 Stajos ACCEPT: Commissioner Barron Motion unanimously carried. 2. July Financials: Jennifer continued financial reports for the following: Groesbeck Golf Course: Revenue is increasing as League and Season Pass funds are being allocated and will continue through September. Concession sales are up more than 75%when compared to last year; with beer sales accounting for 57% of that number. More guests are staying after to mingle, once their game is finished. Monthly expenses are over budget,YTD expenses are over budget as well. Categories providing the largest impact to the budget are Salaries/Wages, Food and Beverage, and Supplies/Materials. Part-time casual PR(grounds and Pro Shop staff) made up 65% of the Salaries/Wages category. Food and Beverage expense is related to concessions labor and the cost of goods purchased. Supplies/Materials was impacted by fuel purchases for the golf carts and equipment; additionally, supplies for the irrigation system. Unreserved Equity continues to change its appearance as the golf course is in full operation for the season, revenue continues to flow and season expenses are occurring. Lansing City Market: YTD Operating Revenue has decreased by 88%, or $6.638 when compared to last year. Rivertown Adventures is currently on month to month tenant. Monthly expenses came in over budget, but less than last year. The category providing the largest impact is Utilities; with electric up 19.7% over last year. Expenses have been contained to 10% of the expense budget while capturing 1% of the revenue budget.At the end of July, Excess Revenue over Expenses is behind budget. LEPFA Board of Commissioners Meeting Page 5 August 28,2018 Cooley Law School Stadium: Monthly expenses came in under budget and to last year. The most significant impact on July's budget included a repair to draft heads within concessions locations.YTD Operating Expenses has decreased by nearly $27,000 compared to last year; with Supplies/Materials categories providing the biggest impact. The increase is attributed to net replacement. The stadium has contained its expenses to 7% of the expense budget. At the end of July, Excess Revenue over Expenses is ahead of budget. At the end of the first month of the fiscal year, Unreserved Equity has dipped below pace with July FY17 and July FY18. Lansing Center: YTD Operating Revenue has decreased by 4% or $8,854 when compared to last year. Revenue for July is down $8,80o when compared to last year. YTD Operating Expense has decreased by 8%when compared to last year. Those categories providing the largest impact this year include: Salaries/Wages, Marketing, and Event Expenses. The budget for FY20 will change to have a stronger July than August. Unreserved Equity has decreased slightly from last month, but remains strong compared to the two prior fiscal years. Unearned Revenue/Advance Rent has increased slightly when compared to last month and continues to follow the trend of the two prior years. The Lansing Center expenses are 7% of the expense budget.At the end of one month, expenses are up to budget with Salaries/Wages, Marketing, and Event Expenses having the greatest impact. The Lansing Center has captured 4% of the revenue budget. At the end of one month; Excess Revenue over Expense is behind budget. Secretary/Treasurer, James Stajos, motioned to accept the July 2018 financial statements for Groesbeck Golf Course, 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 Stajos ACCEPT: Commissioner Butler Motion unanimously carried. Scott Keith mentioned a public speaker who spoke during the public hearing regarding the City Market; noting this man made an attempt to read LEPFA's financial report and reported the information falsely. Scott explained the reality of the City Market and what LEPFA has been doing to make small changes for the anticipated change of the Market. LEPFA Board of Commissioners Meeting Page 6 August 28,2018 There was a discussion regarding the MYWAY wrestling event and the issue with who was to pay for the bleachers. This will be absorbed by LEPFA; however, going forward who pays for what will be spelled out in the contract. C. PRESIDENT &CEO: 1. M3 Group: Scott introduced Tiffany Dowling of M3 Group. LEPFA has contracted with M3 Group to manage PR and branding for LEPFA. Tiffany stated she is excited about this new partnership and explained in detail what M3 Group is contracted to do for LEPFA. The initial plan is gain knowledge of what the public perception of LEPFA is; then create a plan and launch. Commissioner Janssen asked why branding is so important. Tiffany explained that if there is no branding when public opinion becomes truth. Commissioner Stajos stated when he came on as Board member last year, he thought LEPFA had a bad reputation. Then, as a businessowner, he realized the financial impact LEPFA has on the community and stated the public needs to know these things about LEPFA. 2. Ad Hoc Committee: Scott stated there was conversation last week to make to make this a standing committee. Scott stated he will do research, and if we move forward, the By Laws may have to change. 3. Miscellaneous: Scott discussed the passing of Don Fisher, Technical Services Manager; noting he spoke at Don's funeral. To honor Don; a new recognition category is under consideration: Employee of the Year and it will be named after Don. There will be a special announcement made at the corner of Larch and Michigan tomorrow at 2:00 p.m., stop over if you are able. The last Grand Concert Series will be held at the City Market on 9/6/18. There will be a Pop Up Market (led by Brian McGrain, Ex-Officio) on 9/22. Many positive reviews about Groesbeck can be found on Trip Advisor as well as Facebook. Cross Town Showdown is next Tuesday; if you are interested in attending, please contact Shelly or Scott K. 4. Board Chair Recognition: As tradition holds, Commissioner James W. Butler III, was recognized for his service to the LEPFA Board as Board Chair for the 2017— 2018 session. D. PERSONNEL COMMITTEE: No report. E. STRATEGIC PLANNING COMMITTEE: No report. Chairwoman Bowen stated she would like for all Committees to come to the next Board meeting with a goal to achieve for this session and report on those goals. LEPFA Board of Commissioners Meeting Page 7 August 28, 2o18 F. VICE-PRESIDENT&STAFF REPORTS: 1. Scott H.: Scott reported on Groesbeck Golf Course activities and the addition of tournaments to the course. Scott reported there is a lot of ground to make up for Lansing Center this year. We are working with the CVB on a strategy to add more business; noting events already secured. 2. Tristan: Tristan reported the Facilities and Maintenance teams continue to work on various cleaning and repair projects; this time of year allows for these activities. New signage has been added in the restrooms that should help with how the soap dispensers work. Tristan stated she met with Clark Construction regarding the riverside balcony sinking. 3. Paul: Paul reported during the downtime in July and August the F&B department works on many housekeeping projects in anticipation of the fall events. Paul provided a report on the wrestling event revenue the Labor Day promo for Groesbeck Golf Course. 4. Heidi: Heidi reviewed worker's comp claims and disability claims; she noted LEPFA has been accident free for 116 days. Work has begun on the next LEPFA U session and updates are being made to the Supervisor's Manual. Heidi discussed the Flu Shot clinic and shared the date, reviewed the CAUW kickoff, and interviews. Heidi provided an update on the success of the Employee Referral Program. VII. COMMISSIONER AND STAFF COMMENTS: A. Commissioner Barron: Suggested M3Group have some of the HR information for branding purposes and like the idea that M3 will define LEPFA's brand. Commissioner Barron thanked Scott Keith for LEPFA's support of the Get Geek'd event. VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: 1. Arts Project Grant: Scott Keith, President &CEO, reviewed a grant through the MI Council for Arts Cultural Affairs,that we are applying for which will help fund the Grand Concert Series next year. Scott stated Board approval is needed to apply for this grant. Scott noted LEPFA is asking for $4,000.00 A motion was suggested to approve the application for grant money in the amount of$4,000 through the MI Council for Arts Cultural Affairs, which will help fund next year's Grand Concert Series. MOTION: Commissioner Janssen SECOND: Commissioner Dobernick Motion unanimously carried. LEPFA Board of Commissioners Meeting Page 8 August 28, 2018 X. ADJOURNMENT: At 9:54 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: OCTOBER 23, 2o18 LANSING CENTER - GOVERNOR'S ROOM Respectfully submitted, Shelly Busse, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING SEPTEMBER 25, 2o18 MINUTES At 8:o6 a.m. Chairwoman Cindy Bowen called the meeting to order in the Governor's Room of Lansing Center, located at 333 E. Michigan Avenue; Lansing, Michigan 48933• COMMISSIONERS PRESENT: Tim Barron, Angela Bennett (Ex-Officio), Cindy Bowen, Eric Brewer (Ex-Officio), James W. Butler III, Larry Leatherwood, Brian McGrain (Ex-Officio), and James Stajos. COMMISSIONERS EXCUSED: Price Dobernick, Charles Janssen, Charles Mickens OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko, Tristan Wright, Heidi Brown, Shelly Busse - Lansing Entertainment & Public Facilities Authority; and Jack Alexander. III. ESTABLISHMENT OF THE AGENDA: No changes. IV. PUBLIC COMMENT: Jack Alexander stated he has been waiting 16 weeks for the ball park report he requested and asked how can there be a 5 year and to year plan without a report? Mr. Alexander stated this is a clear neglect in duty. Tristan Wright, Vice-President of Operations, addressed Chairwoman Bowen and stated there is a plan, but it is not to Mr. Alexander's liking. Tristan stated she will provide the report to the Board, so as not to distract from the meeting. Scott Keith stated there is a Capital plan for the Stadium. LEPFA does not do an annual audit of the Stadium; an audit is done every ten years; however, an internal report is not kept. Maintenance and repair items are taken care of as they arise. Scott stated that if there is more information that Mr.Alexander would like, he is welcome to utilize the FOIA for specific requests. Chairwoman Bowen asked if a report was provided to Mr.Alexander. Tristan answered yes, a CIP report was provided to him, along with a list of repairs and maintenance that's been done since April. (Commissioner Barron entered the meeting at 8:12 a.m.) Commissioner Stajos asked Scott if facility audits are expensive. Scott stated yes, they are expensive and that is why an audit is only done every io years. City Councilwoman Jody Washington stated, "You all seem to be annoyed with Mr. Alexander and that isn't appropriate." Councilwoman Washington asked Mr. Alexander if he is looking for a report with a list of items that need to be done at the Stadium. Mr.Alexander stated yes, that is what he is looking for. Scott stated that LEPFA and the Lugnuts meet twice a year to walk the facility and compile a list of the type of work that needs addressing; however, the work is done via a work order system and not a reporting system. LEPFA Board of Commissioners Meeting Page 2 September 25,2018 Councilwoman Washington stated that Mr. Alexander's request should be accommodated. Eric Brewer (Ex-Officio) reported that a CIP is a 5 or 10 year plan, but it is more of a "wish list" than anything else and that this "wish list" will change based upon the actual needs and cost of the items on the list. Eric stated these are rough estimates and based upon what happens during the time period. Eric went on to explain how capital projects/purchases are projected. Commissioner Stajos commented on Councilwoman Washington's statement about being annoyed with Mr. Alexander, noting he felt she was looking at him when she made the statement. Commissioner Stajos stated he was not annoyed with Mr. Alexander; noting what Mr. Alexander wants, LEPFA does not have. He stated what has been given to Mr. Alexander should be sufficient. Councilwoman Washington apologized, stating she wasn't singling anyone out, only noting there was an "air of annoyance"toward Mr. Alexander, V. APPROVAL OF THE MINUTES OF AUGUST 28 2018: Chairwoman Bowen asked for a motion for approval of the minutes as published. MOTION: Commissioner Barron SECOND: Commissioner Stajos Motion unanimously carried. VI. REPORTS: A. CHAIRWOMAN: No report. B. FINANCE COMMITTEE : Commissioner Stajos, Finance Committee Chair, stated the Committee met yesterday and Jennifer will report September 2018 financial information. 1. September Financials: Jennifer McFatridge,Vice-President of Finance, reported the following: a. Lansing City Market: August Operating Revenue continues to drop. Rivertown Adventures is on a month to month lease and they will exit the market at the end of September as their season comes to an end. Building and Operating revenue have dropped by more than 8o%when compared to the prior year. August revenue is down to budget for the month as well as YTD. Operating expenses finished up to budget for the month as well as YTD. The category providing the largest impact to the budget is Professional Services, specifically legal fees. Weekly, we are reviewing all anticipated expenses to determine when the City of Lansing subsidy we receive will be depleted and the market will need LEPFA Board of Commissioners Meeting Page 3 September 25, 2018 to close. We have approximately $30,500 remaining due to us for the remainder of the fiscal year. b. Groesbeck Golf Course: August Operating Revenue continues to have a positive performance. Season Pass and League funds were allocated and will wrap up in September. August Concession sales are up 65%to last year with Beer Sales accounting for 55% of that number. August revenue is up to budget for the month as well as YTD. In August, there were more than 4,400 rounds of golf play at the course. Operating Expenses finished up to budget for the month as well as YTD. August was a 3-payroll cycle month with 2/3 of the expense attributed to Pro Shop and Ground Maintenance labor. As we are building the FY20 budget, adjustments will be made to the Fringe/related costs category as the current allocated budget will not sustain the annual expense. The Fringe/related costs line item will be mitigated somewhat as the golf season comes to an end. Food and Beverage expense is related to concessions labor and cost of goods purchased. While the expense exceeded budget by nearly $5k, it was offset by revenue exceeding budget more than $7k. c. Cooley Law School Stadium: August Operating Revenue is from our ATM positioned on the concourse. Revenue is down to budget for the month as well as YTD. In August of 2017, there was miscellaneous equipment rental revenue ($1400). This same transaction did not occur in 2018. Operating expenses finished down to budget for the month as well as YTD. The most significant impact to the budget was in the Maintenance of Facilities category. There were repairs to breakers in the Pepsi Porch and Chevy Terrace. There were also additional repairs to light poles located throughout the stadium. While the utilities category is down to budget for the month and YTD, electric was nearly 22% higher in 2018 than in 2017. There were 5 more home games in 2oi8 than in 2017. Two of those games were day games. d. Lansing Center: August YTD Operating Revenue increased over last year by nearly $60,000 or ii%. F&B Revenue increased more than $45K to last year. Building Revenue is up over last year as we had more than io new events this month. August revenue is up to budget for the month as well as YTD. Some events that occurred this month include MI HS. Athletics Association, Leisure Works, MI Dept of Education, Islamic Society of Greater Lansing and MI Republican Party Convention. LEPFA Board of Commissioners Meeting Page 4 September 25, 2018 Operating Expenses finished down to budget for the month but were up YTD. The excess expense in Professional services is related to an IT email migration project to Office 365, In Marketing, we incurred expense for the M3 Branding project that Tiffany Dowling spoke about in our last board meeting. We also incurred some miscellaneous expenses related to DLI/Principal Shopping District assessment, bank fees and additional parking coupons purchased for customer events. Unearned Revenue-Advance rent has dropped slightly when compared to last month but remains strong when compared to the prior two fiscal year. At the end of two months of the fiscal year, revenue is ahead of the allocated budget more than $119k while the expenses are behind the allocated budget by nearly $35k. Excess revenue over expenses is ahead of the allocated budget by nearly $85k. Secretary/Treasurer, James Stajos, asked for a motion to accept the August 2018 financial statements for Groesbeck Golf Course, 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 Leatherwood Motion unanimously carried. C. PRESIDENT&CEO: 1. Waterfront Litigation: Scott reported the litigation continues; the Waterfront was a "no show" at last week's scheduling hearing. Waterfront's lead attorney resigned and the new attorney wasn't aware of the hearing. Scott stated everything is moving as expected,just as David explained last month during the CLOSED session. 2. Soccer: Scott stated during last night's City Council meeting an announcement was made that Lansing will be home to the state's first professional league. Scott also noted there was a public speaker during last night's Council meeting that stated LEPFA isn't reporting on Groesbeck. Scott reported LEPFA does report to the City of Lansing Parks and Rec Dept. per the Mayor's recommendation. Councilwoman Washington asked Scott for a copy of that report. 3. Lansing Center Facili . Audit: Scott reported the Lansing Center has not had an audit done in 12 years and it is time to get one completed. 4. Employee of the Year Program: Scott stated he will bring this new program's information to next month's meeting. 5. LEPFA Board Photo: Another photo session will be scheduled soon. D. PERSONNEL COMMITTEE: Commissioner Butler reported the committee met last Thursday and discussed the vacant AV Technician position and the new Employee of the Year program. The CEO contract will be discussed at next month's Committee meeting. The timeliness of employee evals was also discussed. LEPFA Board of Commissioners Meeting Page 5 September 25, 2018 E. STRATEGIC PLANNING COMMITTEE: Scott reported in the absence of Committee Chair Dobernick. The Committee met last Tuesday and wrote goals for the Committee.A discussion regarding the facility audit was held and long term success of Lansing Center. F. VICE-PRESIDENT&STAFF REPORTS: 1. Jennifer: The annual audit has been scheduled for the week of October 22nd. Rehman Robson will send the same lead as last year. The audit books are prepared by the Finance team in advance of the audit. 2. Scott Horgan: Greg Webber is working with MHSAA on approval to host tournaments at Groesbeck, and permission was granted. Today will be the first JV tournament, followed tomorrow with varsity tournament. The goal is to promote youth golf. We are working on signage for the front 9 holes and continue to look for sponsors for additional signage. 3. Tristan: The riverside balcony was examined and has dropped the area by 2 inches. The project to begin work on this area will start next spring. An order form for LEPFA logo'd shirts and a picture of said shirts was given to all Board members interested in ordering a shirt. 4. Paul: The first quarter for Lansing Center has started off strong; 13% above budget, and this is normally a difficult quarter to achieve budget. An update on menu updates was provided and a discussion was held regarding State of Michigan pricing. Paul explained to Commissioner Butler how State of MI pays for meals at conferences. Paul reviewed the MDEQ event and it's zero waste goal for the vent. The Pepsi agreement has been signed and we now receive commission from Pepsi. 5. Heidi: Working to fill vacant part time positions, including F&B, Facilities, Event Staff. We are 144 days accident free. The Summary Plan Description was sent to all full time staff in early September. The next LEPFA U is scheduled for January 10, 2019, with safety and service as the topics. Updates on supervisor's manuals continue. The Flu Shot Clinic is scheduled for October 29th from 2p — 4P; this is held in conjunction with Sparrow. VII. COMMISSIONER AND STAFF COMMENTS: A. Commissioner Stajos: Discussed a fundraiser that was held at Ledge Meadows golf course and golf partners discussing Groesbeck and the changes. A lot of great compliments were given. B. Brian McGrain (Ex-Officio): Remind customers about the proper placement of event lawn signage. C. Councilwoman Washington: Discussed the excitement of City Council over the soccer team coming to Lansing. Noted critical updates need to be done to Lansing Center; otherwise there is no pint in adding hotels to the downtown area. Thanked Scott for working with the Mayor to find alternate funding mechanisms; noting if Council doesn't see something different support will not continue. D. Commissioner Butler: Asked Councilwoman Washington what her statement of"support will not continue" means. Councilwoman Washington stated the downtown energy is great,but if we don't see financial energy trickle to the neighborhoods, then the support of LEPFA Board of Commissioners Meeting Page 6 September 25, 2018 Council will not be available —the neighborhoods need money more than the downtown area does. E. Scott Keith: Discussed and invited everyone to Groesbeck's Superintendent's Revenge, asked everyone to read the reviews we're receiving on Groesbeck. The stadium had a 7% increase in attendance this year; the Groundskeeper won the "Groundskeeper of the Year" award. The last Pop Up Market at the City Market was held last Saturday; this is an event we'd like to see return next year. Paul was very modest in his description of the MDEQ zero waste event. His department did a great job! We are working on a winter event similar to this summer's MargaritaFest. "Whisky Warmer" event discussions start soon. VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: No report. X. ADJOURNMENT: At 9:2o a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: NOV-EMBER 27, 2018 LANSING CENTER - GOVERNOR'S ROOM Respectfully submitted, Shelly Busse, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING OCTOBER 23, 2018 MINUTES At 8:03 a.m. Chairwoman Cindy Bowen called the meeting to order in the Governor's Room of Lansing Center, located at 333 E. Michigan Avenue; Lansing, Michigan 48933• COMMISSIONERS PRESENT: Tim Barron, Cindy Bowen, Eric Brewer (Ex-Officio), Charles Janssen, Larry Leatherwood, Brian McGrain (Ex-Officio), and James Stajos. COMMISSIONERS EXCUSED: Angela Bennett (Ex-Officio), Price Dobernick, Charles Mickens OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko, Tristan Wright, Heidi Brown, Shelly Busse - Lansing Entertainment & Public Facilities Authority; and Jack Alexander. Jody Washington — Lansing City Council. III. ESTABLISHMENT OF THE AGENDA: No changes. IV. PUBLIC COMMENT: No public comment. V. APPROVAL OF THE MINUTES OF SEPTEMBER 25, 2018: Chairwoman Bowen asked for a motion for approval of the minutes as published. MOTION: Commissioner Barron SECOND: Commissioner Stajos Motion unanimously carried. VI. REPORTS: A. CHAIRWOMAN: Chairwoman Bowen thanked Committees for submitting their goals and objectives for the 2o18 — 2019 session. *Councilwoman Jody Washington entered the meeting at 8:07 a.m. B. FINANCE COMMITTEE : Commissioner Stajos, Finance Committee Chair, stated the Committee met yesterday and Jennifer will report September 2018 financial information. 1. September Financials: Jennifer McFatridge, Vice-President of Finance, reported the following: a. Groesbeck Golf Course: September Operating Revenue continues to have a positive performance. Season Pass and League funds were wrapped up in September. Overall September concession sales are down 5% to last year. This is attributed to the Friday promo specials. In 2017, there were 5 Friday promos offered whereas in 2018, 1 Friday promo was offered. The promos ended when the Fall golf rates began. September revenue is down to budget for the month, but up YTD. Finally, in September there were more than 2,500 rounds of golf play at the course. Operating Expenses finished up to budget for the month as well as YTD. Categories providing the largest LEPFA Board of Commissioners Meeting Page 2 October 23, 2o18 impact to the budget include Fringe/related costs, Food and Beverage and Maintenance of Facilities. In the category of Fringe/Related Costs as mentioned last month, the budget for Fringe/Related expenses will need to be adjusted for FY20. We are building the FY2o budget and will review our allocation process to have a better target. In the category of Food and Beverage, the expense is related to concessions labor (5o%) and the cost of goods purchased (42%). Maintenance of Facilities, the expenses are related to a ground's supplies (sand, pesticide treatments) and a hot water heater. b. City Market: September Operating Revenue continues to drop. The market had one vendor that was on a month to month lease and they exited the market at the end of September. Building and Operating revenue have dropped by nearly go% when compared to the prior year. September revenue is down to budget for the month as well as YTD. Overall, Operating expenses finished up to budget for the month as well as YTD. The category providing the largest impact to the budget is Professional Services. In this category, 98% of the expense is legal fees. We continue to review all anticipated expenses to determine when the City of Lansing subsidy we receive will be depleted and the market will need to close. We have approximately $30,5oo remaining due to us for the remainder of the fiscal year. c. Cooley Law School Stadium: Operating Revenue at Cooley Law School Stadium typically comes from the ATM machine that is positioned on the concourse. Revenue is down to budget for the month as well as YTD. In September of 2017, there was miscellaneous revenue ($600) for the rental of equipment. This same transaction did not occur in 2018. Overall, Operating expenses finished down to budget for the month as well as YTD. The category providing the largest impact to the budget was the Maintenance of Equipment. There were repairs to a projector in the View. The stadium also had its annual fire sprinkler system inspection in September. There were additional repairs to light poles. While the utilities category is down to budget for the month, electric was more than 9% higher in 2018 than in 2017. The Lansing Lugnuts made the playoffs this year and hosted 1 playoff games in 2018 that did not occur in 2017. d. Lansing Center: September YTD Operating Revenue decreased from last year by nearly $95,000 or 8%. Building Revenue is down from last year as well. September revenue is down to budget for the month but is up to budget YTD. There were three events that occurred in September 2017 that did not repeat in September of 2018. Those three events contributed more than $3ook in Revenue in September 2017. Some events that occurred in September include Brain Injury Association of Michigan, MSDHA, and LEPFA Board of Commissioners Meeting Page 3 October 23, 2018 Government Technology. Overall, Operating Expenses finished up to budget for the month and YTD. Categories providing the largest impact to the budget include Professional Services, Utilities, Events and Food and Beverage. The expense in the Professional Services category is related to labor for IT project for the phone system, data lines were installed at each workstation. Utilities are up more than 4% compared to last September and nearly 6%YTD. In Event expenses, 61% of the expense is AV equipment (laptops, projectors, monitors, etc.) Finally, Food and Beverage expenses are up in the categories of food,beverage,kitchen cleaning and catering waitstaff. Food is related to the Spartan Chassis event as it started on Sunday, September Both with Breakfast, Lunch and Dinner, however it didn't end until October. There were also 3 large dinners (Meijer, Habitat for Humanity and Knights of Columbus. Unearned Revenue-Advance rent has followed trend with the prior two fiscal years, increased when compared to last month and remains strong when compared to the prior two fiscal year. At the end of three months of the fiscal year, the Lansing Center has captured 18% of the revenue budget and contained expenses to 23% of the budget. Brian McGrain (Ex-Officio) asked when did Waterfront last make a payment. Jennifer stated the last payment LEPFA received was in June of this year. On the advice of our Attorney, we stopped invoicing Waterfront then; however, our Attorney has advised us that we may again start sending invoices. Our Scott Keith, President &CEO stated funds for the City Market will be depleted by December. Chairwoman Bowen asked if Sales knew in advance that the three events that didn't rebook for this year, were not going to rebook. Scott Horgan stated the three groups were all booked as tentative (T), so Sales makes a guess when the forecasts are done, as to whether the group will become a definite or not. Chairwoman Bowen asked Paul if additional labor was needed for the larger food functions. Paul stated,yes additional staff was needed and it is a struggle to get temporary staff so we've increased our rates in order to attract temporary staff. Secretary/Treasurer Stajos reported last year's Operating Revenue compared to this year's Operating Revenue is only short by$1oo,000; which speaks volumes to the additional revenue that was added. Secretary/Treasurer, James Stajos, asked for a motion to accept the August 2018 financial statements for Groesbeck Golf Course, 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 Janssen ACCEPT: Commissioner Barron Motion unanimously carried. LEPFA Board of Commissioners Meeting Page 4 October 23,2018 C. PRESIDENT&CEO: i. Creative Placemaking Summit: Lansing Center hosted this event and LEPFA was a Sponsor of the event. Scott reviewed the event and reviewed the package distributed that references their work. A USB drive or hard copy is available for review. 2. Uplift Our Youth: Commissioner Leatherwood is involved in this organization, and an event was held at the Crowne Plaza West as host and LEPFA and Commissioner Stajos also sponsored the event. 3. Public Announcement: New Organization coming to City. The announcement will be made at the Stadium 4 p.m. this Thursday. 4. Common Ground: We are working with City on changes to make the event more cost effective. 5. Hotel Tax Meeting: County Commissioners met to discuss hotel how the hotel tax could be altered to help fund Lansing Center. A lot of positive feedback was received from Commissioners. Scott Keith did confirm he is not running for a County Commissioner seat. D. PERSONNEL COMMITTEE: Scott Keith sated the Committee met last week, discussed the goal of staff evaluations completion. Scott reported F/T staff evaluations are complete and there are complete about half of the P/T evaluations complete. The Committee will meet to complete the EOM and EOY program changes.An updated job description for CEO is also in the works. E. STRATEGIC PLANNING COMMITTEE: Commissioner Janssen reported in the absence of Commissioner Dobernick. The Committee met last week and the hotel revenue tax proposal was the main topic of discussion. Development of the downtown area as well as the Lansing Center Facilities Audit were also topics of discussion. F. VICE-PRESIDENT&STAFF REPORTS: 1. Scott H.: Last month in collaboration with CVB there were 2 pieces of business we were working on.An Archery Tournament secured for March; and if successful,will become a 3 day event. The second piece of business secured is the Michigan Readers Assn. This event was previously held at Cobo. We thank the Mayor for his speech and LCC for making this event successful. The event is booked for 2022 and is an every other year event. We knew this year would be down to last year; and we've been fortunate to find short term business as filler. We are at 85% to budget, with another 9 in potential business. Scott H. reviewed the Groesbeck Admin report; noting the T Markers, MHSAA golf at the course. Scott H. stated we are moving forward with M3 Group branding project. Scott discussed the Focus Groups as one being made up of to community leaders, and a second made up of 4 LEPFA Board Commissioners and 6 staff members. LEPFA Board of Commissioners Meeting Page 5 October 23, 2018 2.Tristan: Winterization of the ballpark will begin soon. Ryan Tess, Operations Manager is now Operations AV Tech Mgr. He's doing very well working with IATSE. We are working on an RFP for a Facility Auditor. The last audit was done in 2oo6. 3. Paul: Paul reported on a highlight event that Lansing Center hosted for the first time- a Jewish fundraising event. It was very successful and educational. Donated over 13,000 lbs. of food to Food Bank. Last Year 12,000 lbs. total, was donated. Kitchen staff taking great steps to save food. Groesbeck will be closing down, limited items available. Gearing up for holiday events: JNL, Dart and Accident Fund. 4. Heidi: Heidi provided an Employee Referral update.Annual Flex renewal underway. CAUW Campaign underway- reviewed fundraising event. LEPFA Flu Shot clinic 10/29 2:30 - 3:30 for F/T staff and dependents. F/T Evaluations are completed. Working on job descriptions. LEPFA U is set for Jan. loth. Full Day of trading. Safety and Customer Service. 182 accident free. We are watching legislation re: sick time for all F/T and P/T staff. VII. COMMISSIONER AND STAFF COMMENTS: A. Shelly Busse: Provided a reminder that a new Board photo will be taken during the November meeting. B. Commissioner Janssen: Noted the Parking category on the Customer Evaluation seems to be marked low on many evaluations and asked if parking is a chronic issue for all convention centers. Scott Keith stated both the security and parking sections of the evaluations will never be t00% meets/exceeds,because it is based upon an individual's perception. C. Scott Keith: The LEPFA Board Holiday party is scheduled for December 12th. VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: No report. X. ADJOURNMENT: At 8:45 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: TBD Respectfully submitted, Shelly Busse, Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING NOVEMBER 27, 2oi8 MINUTES At 8:03 a.m. Vice-Chair Price Dobernick, called the meeting to order in the Governor's Room of Lansing Center, located at 333 E. Michigan Avenue; Lansing, Michigan 48933• COMMISSIONERS PRESENT: Angela Bennett (Ex-Officio), Eric Brewer (Ex- Officio), James W. Butler III, Price Dobernick, Charles Janssen, Larry Leatherwood, Brian McGrain (Ex-Officio), and Charles Mickens. COMMISSIONERS EXCUSED: Tim Barron, Cindy Bowen, and James Stajos OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko, Tristan Wright, Heidi Brown, Shelly Busse - Lansing Entertainment & Public Facilities Authority; Nick Grueser— Lansing Lugnuts/Ignite, and Jack Alexander. III. ESTABLISHMENT OF THE AGENDA: No changes. IV. PUBLIC COMMENT: No public comment. V. APPROVAL OF THE MINUTES OF OCTOBER 23, 2018• Vice-Chair Dobernick asked for a motion for approval of the minutes as published. MOTION: Commissioner Butler SECOND: Commissioner Janssen Motion unanimously carried. VI. REPORTS: A.VICE-CHAIR: No report. B. FINANCE COMMITTEE : Jennifer McFatridge,Vice-President of Finance, reported the following financial information for the month of October 2o18: 1. Groesbeck Golf Course: October Operating Revenue indicates a golf season that is winding down. Overall October concession sales are down 34% to last year. Reduced rounds this month and weather impacted concession sales. October revenue is down to budget for the month, but up YTD. Finally, in October there were about goo rounds of golf played at the course. Switching to expenses: Operating Expenses finished down to budget for the month but were up YTD. Categories providing the largest impact to the budget include Fringe/related costs, Food and Beverage and Marketing. In the category of Fringe/Related Costs as I have mentioned the last few months, the budget for Fringe/Related expenses will need to be adjusted for FY20. We are building the FY2o budget and will review our allocation process in order to have a better target. In the category of Food and Beverage, the expense is related to concessions labor and the cost of goods purchased. Finally, in Marketing, the expenses are related to signage created for some of the holes. LEPFA Board of Commissioners Meeting Page 2 November 27, 2018 2. City Market: October Operating Revenue is reflecting an increase due to the invoicing to The Waterfront Restaurant for their occupancy in the Market since the expiration of their lease on 6/30/18. Building and Operating revenue have dropped by 13%when compared to the prior year. Overall, Operating expenses finished up to budget for the month as well as YTD. The category providing the largest impact to the budget is Professional Services. In this category, 97% of the expense is legal fees. We continue to review all anticipated expenses to determine when the City of Lansing subsidy we receive will be depleted and the market will need to close. We have approximately $30,50o remaining due to us for the remainder of the fiscal year. 3. Cooley Law School Stadium: Operating Revenue at Cooley Law School Stadium typically comes from the ATM machine that is positioned on the concourse. Revenue is down to budget for the month as well as YTD. Overall, Operating expenses finished down to budget for the month as well as YTD. The category providing the largest impact to the monthly budget was Utilities. While the utilities category is down to budget for the year, October electric was 78% higher than in October 2017 and Gas expense was up 182% than in October 2017. There were 20 events at the View in October, the Board of Water and Light Chili Cook-off and the Battle for the Mitten Rugby game were also events held on the field of the Stadium. 4. Lansing Center: October YTD Operating Revenue increased over last year by $34,000 or 4%. October revenue is up to budget for the month as well as YTD. There were 16 events that occurred in October 2017 that did not repeat in October of 2018. Of those that did not repeat, four of them had nearly $look in Food and Beverage, two of them had Equipment rental of$19k and rent of $17k. The flip side of this is we have 13 events that are in October 2018 that did not occur in October 2017. Some events that occurred in October include Spartan Chassis, Lansing Bridal Show, Michigan Optometric, and School Nutrition Association of MI. Overall, Operating Expenses finished up to budget for the month and YTD. Categories providing the largest impact to the October budget include Events, Security and Food and Beverage. In Event expenses, 58% of the expense is AV equipment (laptops, projectors, monitors, etc). In Security, based on two consecutive years of an event during MSU Homecoming weekend, we will need to adjust the October budget moving forward. Finally, Food and Beverage expenses are down to budget as COGS dropped by more than $2oK when compared to last year. Some of this savings was offset by a repair that was necessary for the dishwasher. Unearned Revenue-Advance rent has decreased when compared to last month; however, remains strong when compared to last fiscal year. At the end of four months of the fiscal year, the Lansing Center has captured 30% of the revenue budget and contained expenses to 32% of the budget. LEPFA Board of Commissioners Meeting Page 3 November 27, 2018 Vice-Chair Price Dobernick asked for a motion to accept the October 2018 financial statements for Groesbeck Golf Course, Lansing City Market, Cooley Law School Stadium, and the Lansing Center be received as published and the monthly expenses for each entity be accepted. MOTION: Commissioner Janssen ACCEPT: Commissioner Butler Motion unanimously carried. *Commissioner Leatherwood entered the meeting at 8:05 a.m. C. PRESIDENT&CEO: 1. Lansing Ignite Soccer: Scott Keith introduced Nick Grueser, GM of Lansing Lugnuts, and now Lansing Ignite and stated Nick is present today to discuss Lansing Ignite soccer. Nick Grueser reported the following about Lansing Ignite: •First Sponsorship was signed yesterday; and it is the biggest Sponsor •There will be 3 Full-time dedicated Ignite staff. The goal is 9 staff. •Over too season ticket deposits have been received •Opening Day will be April 13, 2019.A rough schedule has been drafted. The season should conclude October 5, 2019 •Partnership with jersey supplier has been finalized •Working on marketing plans •A coach has been hired, the signing of 4 players is underway. These signings will be announced publicly •Training camp starts February 18, 2019 Many questions were asked, including cost for tickets and the suite. It was noted the suite that LEPFA normally has for baseball will also be shared with the CVB for soccer. Scott distributed Lansing Ignite scarves to everyone; noting they should be worn to all games; as is common practice for soccer games. Nick answered a question about the economic impact of soccer on the downtown area. Nick stated the soccer audience is younger, less family oriented, so once a game is over, the crowd will utilize/visit the bars and restaurants downtown. A question about protecting the baseball field was asked. Nick reported he is working with Trey Rodgers (MSU), who also advises for the ball field and Groesbeck. Nick noted the biggest challenge will be getting maintenance done on the field. It may have to be done at night after games are completed. Nick thanked everyone for their support and asked that the relationship continue to support the stadium with regard to purchases, repair, and updates. 2. Facility Audit: Scott reported he received three proposals for the audit and will review and recommend to the Board. Scott noted a budget of$30,000 was established; and that may not be enough. LEPFA Board of Commissioners Meeting Page 4 November 27, 2018 3. Waterfront: LEPFA won the Summary Disposition; and Waterfront has the option to appeal. Scott discussed what an appeal would mean for the City Market and for LEPFA. The owner for Waterfront has called out attorney and has asked for a settlement. Scott discussed what could happen next. 4.Adado Park Project: Easels placed throughout the room have designs for possibilities for the park. Scott is working on a budget for the project. 5. Funding Mechanisms: Scott is currently working with Mayor Schor, Brian McGrain and County officials on funding mechanisms for Lansing Center. 6. Common Ground: Currently working on changes to make the even more cost effective and evolving to meet the needs of the market. 7. Golf Simulator: We are hoping to purchase a golf simulator for Groesbeck will be used as a revenue source in the off season. This purchase will have to be presented to the Finance Committee due to its high cost. 8. December LEPFA Board Meeting: Scott stated a short meeting may be needed in December. He will discuss with the Executive Committee this week. D. PERSONNEL COMMITTEE: No report. E. STRATEGIC PLANNING COMMITTEE: No report. F. VICE-PRESIDENT&STAFF REPORTS: 1. Scott Horgan: Groesbeck is officially closed for outdoor golf for the season. Weather during the month of October was not favorable for golf, overall though, a very successful season. We are working on additional revenue plans for the golf course during the off season; including the simulator Scott referred to earlier. Other ideas include running events, cross country skiing, fat tire events, and euchre tournaments. 2. Paul Ntoko: Groesbeck season was very successful and we will meet in a few weeks to review the season. Upcoming holiday parties are the focus of the F& B department for the next few weeks. We are currently updating our terms and conditions for Catering. 3. Heidi Brown: We are working with our attorneys on a substance abuse policy that take the newly passed marijuana laws into consideration. Heidi reviewed vacant positions, worker's comp claims, and LEPFA U preparation for the January class. Heidi reported this year's Flu Clinic was a success and we qualify for PHP to come back next year. Heidi provided an update on LEPFA staff giving to CAUW and open enrollment for insurance date change to January instead of June. VII. COMMISSIONER AND STAFF COMMENTS: A. Scott Keith: Scott distributed photos of LEPFA's float for the annual Silver Bells parade, the new signage for Groesbeck and provided and update on drain upgrades at Groesbeck. B. Tristan Wright: Tristan reminded everyone of the LEPFA Board Holiday Party scheduled for December 12th, in the Pub. LEPFA Board of Commissioners Meeting Page 5 November 27, 2018 VIII. OLD BUSINESS: No report. IX. NEW BUSINESS: No report. X. ADJOURNMENT: At 9:08 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR: FEBRUARY 26, 2019 LOCATION - GREATER LANSING CONVENTION & VISITORS BUREAU Respectfully submitted, Shelly Busse, Recording Secretary