HomeMy WebLinkAbout2019 LEPFA Minutes LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
JANUARY 22, 2019
MINUTES
At 8:04 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),
James W. Butler III, Price Dobernick, Charles Janssen, Larry Leatherwood, Charles
Mickens, and James Stajos.
COMMISSIONERS EXCUSED: Angela Bennett (Ex-Officio) and Brian McGrain
(Ex-Offcio).
OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko,
Tristan Wright, Heidi Brown, Shelly Busse - Lansing Entertainment & Public Facilities
Authority; Mark Kettner— Rehmann Robson, and Jack Alexander.
III. ESTABLISHMENT OF THE AGENDA: No changes.
IV. PUBLIC COMMENT: No public comment.
V. APPROVAL OF THE MINUTES OF NOVEMBER 22, 2oi8:
Chairwoman Bowen asked for a motion for approval of the minutes as published.
MOTION: Commissioner Barron SECOND: Commissioner Janssen
Motion unanimously carried.
VI. REPORTS:
A. CHAIRWOMAN: Chairwoman Bowen noted the Employee of the Year
presentation has been moved to next month's meeting.
B. FINANCE COMMITTEE :
1. FYE 2o18 Audit Review: Jennifer introduced Mark Kettner, of Rehmann
Robson. Mark is here to present the FY2oi8 Audit findings.
Mark stated he is here to provide a small report; but more so to answer any
questions anyone may have about the audit. Mark reviewed page i of the
"Unmodified Clean Opinion" noting there are two additional columns. This is
because Groesbeck has been added along with a "Gasby Statement 8o"
(which is for non-profits that have a sole member as does Center Park
Productions). Mark reviewed the Income statement's net positions for each
property. Before taking questions, Mark stated there is a separate letter noting
there are "no findings", which is a good thing.
Eric Brewer (Ex-Officio) asked when the audit was started and when was this
letter issued? Jennifer stated the audit started on October 22, 2019 and the
date of the letter is December 14, 2018.
LEPFA Board of Commissioners Meeting
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January 22,2019
Eric Brewer (Ex-Officio) asked how LEPFA's healthcare is structured.
Scott stated LEPFA uses a broker for insurance; employees pay a portion of
the premium of the insurance and LEPFA covers the difference. Mark Kettner
explained the differences between how the City handles insurance vs. how
LEPFA handles insurance costs.
Finance Chair James Stajos stated he reviewed the audit last week and is very
happy with the audit findings and stated Jennifer and her team did a great job.
2. December 2oi8 Financial Review: Jennifer reported the following
financial information:
a. Groesbeck Golf Course: December Operating Revenue indicates a
traditional golf season that ended. The sole revenue for December was the
purchase of a gift round of golf for future use. December revenue is up to
budget for the month as well as YTD. Switching to expense, 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, Communications and Maintenance of Equipment. 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 have reviewed our
allocation process in order to have a better target. In the category of
Communications, the expense is related to the invoice from ACD for the
Fiber project. Finally, in Maintenance, the expenses are related to
equipment repair and winterization of equipment.
b. Lansing City Market: December Operating Revenue is up to budget
for the month and YTD. Building revenue has dropped by 12% and
Operating revenue has dropped by 17%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 $20,350 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.
Overall, Operating expenses finished down to budget for the month as well
as YTD. The categories providing the largest impact to the monthly budget
were Utilities and Maintenance of Facilities. While the utilities category is
down to budget for the year and relatively flat to last year,we received a
corrected invoice to address a water service meter that has been deemed
stuck since 2017. The value of that correction is about $580o with LEPFA's
LEPFA Board of Commissioners Meeting
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January 22, 2019
share being $2900. In Maintenance of Facilities, there were a few Trane
repairs equating to $2800. An ignitor kit was replaced, a service call for the
West End not heating and a reset of an alarm switch.
d. Lansing Center: December Operating Revenue increased over last year
nearly $12,000 or 3.5%. December revenue is down to budget for the
month, however, it is up YTD. There were 5 events that occurred in
December 2017 that did not repeat in December of 2018. Of those that did
not repeat, four of them had nearly $2ok in Food and Beverage, all of them
had Equipment rental of$2k and rent of$5k. The flip side of this is we have
4 events that are in December 2018 that did not occur in December 2017,
capturing $23k among rent, food and beverage and Equipment rental. Some
events that occurred in December include Midwest Reps Winter Program,
Dart Container Holiday Banquet, MYWAY Wrestling and the Greater
Lansing Convention and Visitor's Bureau Holiday Showcase. Overall,
Operating Expenses finished down to budget for the month, however,were
up to budget YTD. Categories providing the largest impact to the December
budget include Professional Services, Events, and Security. In Professional
Services,there was a System maintenance renewal reflecting expense for
Sept-Dec. as the invoice was submitted late from the vendor amounting to
about $3800 as well as the $33oo expense for our audit report that was
completed in December. In Event expenses, 65% of the expense is carpeting
for Dart. Finally, in Security, 65% of the expense is attributed to the
Wrestling event. Unearned Revenue-Advance rent has established the high
point of the fiscal year; increased when compared to last month; remains
strong when compared to last fiscal year. At the end of six months of the
fiscal year, the Lansing Center has captured 47% of the revenue budget and
contained expenses to 48% of the budget.
Finance Chair James Stajos asked for a motion to accept the December
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 Barron ACCEPT: Commissioner Mickens
Motion unanimously carried.
3. Resolution for Reinstatement of Pension Savings Plan: Jennifer
reported the language in this document has been updated from the 2002
document to reflect current terminology.
A motion was asked to accept the document language changes in the
Reinstatement of Pension and Savings Plan.
MOTION: Commissioner Barron ACCEPT: Commissioner Janssen
LEPFA Board of Commissioners Meeting
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January 22, 2019
Commissioner Stajos stated that it's disturbing that no subsidy has been
received and that checks are bouncing for the City Market; noting this is
not a good look for anyone.
Commissioner Butler asked if this information has been brought to the
attention of the Mayor. Scott Keith stated he and Jennifer will make one
last attempt to meet with Angie Bennett before going to the Mayor.
Scott Keith reported a review of the DRAFT Budget will be done with
Brian McGrain (Ex-Officio) and then will be brought to the Board for its
acceptance in DRAFT form. Scott reported there will be a reduction in
subsidy for Groesbeck, and increase of$9o,000 for the Stadium (to cover
soccer costs), a slight or no increase for Lansing Center— along with some
capital funding requests.
A discussion regarding how soccer revenue will impact on larger repairs/
improvements for the stadium was held.
Eric Brewer (Ex-Officio) asked how Capital funds are requested. Scott stated
the funds are requested to the City, then City reviews and then makes the
decision.
*Commissioner Leatherwood entered the meeting at 8:46 a.m.
Chairwoman Cindy Bowen asked that the Board be provided with the net
amount of subsidy money LEPFA is asking of the City.
C. PRESIDENT &CEO: Scott Keith reported the following:
1.Annual Report: Scott reviewed a document he is providing to the Mayor
highlighting LEPFA's 2o18 accomplishments.
2. Whiskey Warmer: The event is scheduled for March 1, 2oi9 and will be
held in the Gazebo along the Riverwalk. Scott reviewed the activities and
stated tickets will be sold for $40.
3. Common Ground: We are moving to a concert series throughout the
summer. Common Ground and the Lugnuts have partnered together to
bring "I Love the 9os"tour. The dates for Common Ground this year have been
moved to June 27th—June 3oth, so there is no conflict with the 4th of July
holiday.
4. Simulator: Groesbeck now has a golf simulator. There are two dates reserved
this week for Board members to test it.
5. Funding mechanisms and Stadium: Scott will provide talking points for
everyone in case these topics come up in conversation.
6. Business Monthly: Scott Keith was featured in this month's issue in the
"Newsmakers" section, page 15.
D. PERSONNEL COMMITTEE: Commissioner Butler reported the
Committee met last week and discussed the Employee of the Year program.
Also on the agenda were evaluations are completed, revisions to the
Supervisor's Manual, and recruiting efforts for food service positions at all
LEPFA Board of Commissioners Meeting
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January 22, 2019
properties. Heidi is working with attorneys to make sure that LEPFA is
prepared for paid sick leave implementation that goes into effect on March
29th. Discussion was also had regarding the Reinstatement of the Pension
Savings Plan and updates to the CEO job description.
E. STRATEGIC PLANNING COMMITTEE: Commissioner Dobernick
reported the Committee met last week and discussed the RFP for the Facilities
Audit; noting three proposals were received. Two of the three received were
well over budget; the third as well,but by far less. Since the proposal is at the
$30,000 threshold for approval by the Board; a motion needs to be made to
approve the expense.
MOTION: Commissioner Leatherwood APPROVE: Commissioner Barron
F.VICE-PRESIDENT&STAFF REPORTS:
1. Scott Horgan: The simulator at Groesbeck is installed and in use. The use
of the simulator is a private experience for each individual or group. Lessons
are one on one.
Ten of 12 season pass members are already paid for next season. We were able
to secure our last league as well. MHSAA has approved 2 high school
tournaments.
Scott reviewed media coverage Groesbeck is and will receive.
Scott reviewed the 2o18 Customer Evaluation Summary; noting all
departments scored between 95% and 98% in the Meets/Exceeds category.
this survey will also be incorporated into Groesbeck.
*Commissioner Stajos exited the meeting at 9:18 a.m.
2. Tristan Wright: A CPR and tourniquet training class was held on
January 29 and 25 full-time staff members attended the training. Tristan
also reviewed the autism training that was provided during LEPFA U and
stated the Safety Committee will add autism section to the Emergency
Procedure Manual.
Tristan reported on stadium activities and getting ready to open it for the
season.
Tristan thanked everyone for their continued support of the MLK Jr.
Luncheon; noting it was another great event.
Commissioner Dobernick asked how many AEDs are on hand. Tristan
stated there are two at Lansing Center, one at the stadium and one will be
purchased for Groesbeck.
3. Paul Ntoko: Paul reported that in 2018 a record 19,000 pounds of food
was donated to the Greater Lansing Food Bank. Paul stated he is currently
reviewing management positions between properties.
4. Heidi Brown: Heidi stated most of her department's information can be
found on the Admin Report. However, highlighted there are many on-call
positions available in both facilities and food&beverage.
there have been zero claims for worker's comp. Currently prepping for CBA
renewals that take place this spring. Heidi provided a review of LEPFA
LEPFA Board of Commissioners Meeting
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January 22, 2019
that took place on January loth.
Tristan stated Julie Pingston from GLCVB also attended the autism training
and she suggested this would be a good thing for many downtown entities to
do.
VII. COMMISSIONER AND STAFF COMMENTS: No comments.
VIII. OLD BUSINESS: No report.
IX. NEW BUSINESS: No report.
X. ADJOURNMENT: At 9:41 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR:
MARCH 19, 2019
LANSING CENTER - HALL C
Respectfully submitted,
Shelly Busse, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
FEBRUARY 26, 2019
MINUTES
At 8:o6 a.m. Chairwoman Cindy Bowen, called the meeting to order in the Conference
Room of the Greater Lansing Convention &Visitor's Bureau, located at Soo E. Michigan
Avenue; Lansing, Michigan 48933.
COMMISSIONERS PRESENT: Tim Barron, Cindy Bowen, Price Dobernick, Charles
Janssen, Larry Leatherwood, Brian McGrain (Ex-Officio), and Charles Mickens.
COMMISSIONERS EXCUSED: Angela Bennett (Ex-Officio), Eric Brewer (Ex-
Officio), James W. Butler III and James Stajos.
OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko,
Tristan Wright, Heidi Brown, Shelly Busse, Mike Loomis - Lansing Entertainment &
Public Facilities Authority; Heather Sumner — Lansing City Attorney's Office, Tiffany
Dowling, Zack Krieger— M3 Group, and Jack Alexander.
III. ESTABLISHMENT OF THE AGENDA: No changes.
IV. PUBLIC COMMENT: Jack Alexander asked Scott for an update on naming
rights for Lansing Center, how much will be received, and what the money will be
used for.
Scott stated LEPFA is working with M3 Group on naming rights for Lansing
Center. How the money will be used will be up to the City with input from Scott;
but will most likely go toward capital improvements and signage that will identify
the sponsor. the money will be strictly used for Lansing Center.
V. APPROVAL OF THE MINUTES OF January 22, 2019:
Chairwoman Bowen asked for a motion for approval of the minutes as published.
MOTION: Commissioner Janssen SECOND: Commissioner Mickens
Motion unanimously carried.
VI. REPORTS:
A. CHAIRWOMAN: Chairwoman Bowen asked Scott Keith to provide an
overview of the Employee of the Year Program and then recognition of Mike
Loomis, as LEPFA's first Employee of the Year award recipient.
Scott reviewed the Employee of the Year program, along with the meaning of it
and who it was created in honor of. Scott stated 2o18 is the first year the award
was given and the recipient is Mike Loomis. Mike is the second Shift Facilities
Foreperson.
Chairwoman Bowen reviewed Mike's employment background, presented him
with a framed certificate and offered Mike congratulations. The LEPFA Board
and all staff present, also offered congratulations.
LEPFA Board of Commissioners Meeting
Page 2
January 22, 2019
B. FINANCE COMMITTEE :
1. January 2oig Financial Information: Jennifer McFatridge,
Vice-President of Finance reported the following:
a. Groesbeck Golf Course: January Operating Revenue indicates
traditional golf season has ended and the start of Simulator Golf season.
Simulator League revenue is spread out over the time frame of their
season. A year ago,we began operating Groesbeck and did not have
revenue sources (concessions or simulator) at that time. January revenue
is up to budget for the month as well as YTD. Switching to expenses,
Operating Expenses finished down to budget for the month and YTD.
Categories providing the largest impact to the overall budget include
Fringe/related costs and Food and Beverage. In the category of
Fringe/Related Costs adjustments to the FY2o budget were necessary as
we reviewed our allocations in order to have a better target. In the
category of Food and Beverage, menu options are being reviewed and the
budget for FY2o has been adjusted.
b. Lansing City Market: While January Operating Revenue is up to
budget for the month and YTD; we have received 2 payments out of the 8
months that have been invoiced. Building revenue has dropped by 12%
and Operating revenue has dropped by 17%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.
YTD our legal fees are $53,296. 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 $10,175
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. Overall, Operating expenses finished down to budget for the month
as well as YTD. The category providing the largest impact to the YTD
budget was Maintenance of Facilities.While there weren't any repairs
this month to report, we have discussed repairs in prior months (8/18
-Breaker repairs to Pepsi Porch/Chevy Terrace and 12/18-Trane repairs
to HVAC).
d. Lansing Center: January Operating Revenue decreased from last year
nearly$13,000 or 2%. January revenue is up over budget for the month
as well as YTD. There were 4 events that occurred in January 2o18 that
did not repeat in January of 2019. Of those that did not repeat,those
events accounted for nearly $95k in Food and Beverage, $54k in
Equipment rental and $1ok of rent. The flip side of this is we have 7
events that are in January 2019 that did not occur in January 2o18,
capturing $1ok among rent, $91k in food and beverage and $20k in
Equipment rental. Some events that occurred in January include the
LEPFA Board of Commissioners Meeting
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February 26, 2019
Legislative Luncheon for Governor Whitmer, Trinity Health, Michigan
Agri-Business, Greater Lansing Area Holiday Commission, Michigan
Veterinary Association and Michigan Nursery and Landscape Association.
Overall, Operating Expenses finished up to budget for the month and
YTD. Categories providing an impact to the January budget include
Professional Services, Supplies/materials, and Events. In Professional
Services, we had labor of$280o related to our server replacement. In
Supplies/Materials, nearly$ilk or 61% is for the purchase of the server
that was replaced. Finally, in Event expenses, 61% of the expense is
carpeting and 12% is for microphones. Unearned Revenue-Advance rent
has established the high point of the fiscal year; increased when compared
to last month; remains strong when compared to last fiscal year. At the
end of seven months of the fiscal year, the Lansing Center has captured
58% of the revenue budget and contained expenses to 58% of the budget.
Chairwoman Cindy Bowen, asked for a motion to accept the January 2019
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 Leatherwood ACCEPT: Commissioner Mickens
'Commissioner Barron entered the meeting at 8:ry a.m.
2. Resolution for Common Ground Liquor License:
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 Leatherwood ACCEPT: Commissioner Dobernick
C. PRESIDENT& CEO: Scott Keith reported the following:
1. PR Branding Update: Scott introduced Tiffany Dowling of M3Group, and
reviewed the project M3 Group is working on for LEPFA.
Tiffany introduced Zach and reviewed what M3 has done so far for the PR
Branding of LEPFA. Tiffany discussed the S.W.O.T. Analysis regarding all
properties. Tiffany stated LEPFA has little brand recognition. People know
what LEPFA is,but not what LEPFA does. The Analysis shows there are
opportunities to grow,because people want entertainment in the area. There
is confusion why Lansing Center receives a subsidy from the City.
Tiffany reviewed threats to the brand and noted when people don't
understand, that creates a problem with growing the Organization.An online
poll was created about LEPFA and was distributed via social media. In
addition Focus Groups were held to discuss LEPFA. These Focus groups
included leadership staff, internal staff, LEPFA Board members, and one
external public Focus group.
LEPFA Board of Commissioners Meeting
Page 4
February 26, 2019
Zach reviewed the internal group and stated the group was a nice cross
section of people from within LEPFA. Zach noted that it was interesting to
understand both internal and external perceptions of LEPFA. LEPFA as an
acronym doesn't translate well with public. The Public doesn't understand
the contribution LEPFA makes to the City and its properties.
Tiffany explained who received the poll survey in the City.
Commissioner Leatherwood recommend targeting diverse population.
Tiffany reviewed the next steps that M3 will take with the project. Data will
analyzed and the positives and challenges will be reviewed to build an
understandable brand. Tiffany stated a name for LEPFA is possible, so it is
more understood. Promoting what LEPFA is and what LEPFA does will also
allow for more community understanding of the brand. Once we are through
this process, M3 would help create the collateral to help. M3 will also roll this
information out and help support it. The survey indicates strongly that a
name change is needed. The name change should be something simple, so
people understand quickly, and recovery from negative experiences is
quicker. Within the next four weeks M3 will present new naming options.
Scott stated he will provide electronic version of M3 results. As far as
naming rights progress: we are working diligently with organizations in
our community and beyond. There is great opportunity to nail down naming
rights in the next 6 months to happen in 2020.
2. Budget: Scott reported the FY2o DRAFT Budget has been submitted to the
City, and at this time we have not been given notice of any changes. Scott
reviewed highlights for each property from the DRAFT Budget. The budget is
Up 2.5% -with a reduction due to City Market going away, but an increase at
stadium due to Ignite. We were able to reduce Groesbeck contribution and
still provide a resident discount at golf course.
Commissioner Janssen asked if the stadium amount increased because Ignite
was added. Also, where does revenue from Ignite go?
Scott stated LEPFA won't see the revenue increase as all revenue goes to the
City. Scott reported that we also asked for capital dollars. Minimal amount
for Groesbeck($20,000) Stadium minimum of$75,000 for a mixture of
improvements), and Lansing Center needs a water treatment tower
($70,000) and river side balcony repairs.
3. Silver Bells: The City has transferred operations to LEPFA. A full-time
position for Director of Outside Events will be posted.
4. Whiskey Warmer: Scott reported the date has been changed to March 22nd.
The date change was a weather related decision.
5. Suite: Lansing Ignite Opener suite reserved April 13th, for the Board.
6. Common Ground: The I Love the gos tour is scheduled for June 7th. Tickets
are selling well. We are also looking at the 8th for another artist. Common
Ground dates are June 27th -June 3oth. Scott reviewed Saturday Country
Night schedule and noted Sunday night should be wrapped up this week; it
will be a Hip Hop night. Work continues for Thursday and Friday. By moving
the dates to June, the revenue and expenses will be in the current fiscal year
LEPFA Board of Commissioners Meeting
Page 5
February 26, 2019
budget.
7. Regional Funding: Work continues with the City, County, and CVB for a
different funding model for Lansing Center.
8. Outdoor Life Show: (Formerly known as Deer&Turkey show). We have
tickets available if interested.
D. PERSONNEL COMMITTEE: Scott reported on behalf of Committee Chair
James W. Butler III. The Committee met last Thursday. Discussion included
Director of Outside Events full-time position. Researching a"Work from
Home"policy, and F&B working on title changes in the department.
The Separation Agreement with an AMTA member has been completed, and
there were no issues. Education/discussions continue regarding the law for
paid sick leave for part time staff. This goes into effect at the end of March.
The OSHA annual report was discussed as well.
Chairwoman Bowen asked if the paid medical leave will be fair with what is
already established for full time staff.
*Commissioner Leatherwood exited the meeting at 9:16 a.m.
E. STRATEGIC PLANNING COMMITTEE: No report.
F. VICE-PRESIDENT&STAFF REPORTS:
1. Scott Horgan: Scott reported the simulator at Groesbeck opened for business
January 14th,but was closed from the 21st to the 24th due to poor weather.
Scott reviewed usage and reservations for the simulator, along with a review
of leagues and lessons. Scott stated the new rates gave been approved and all
night time golf leagues are filled. Scott stated we are ahead of pace for
outings and tournaments.
2. Tristan Wright: Tristan reported all CBAs expire in June, and we have been
meeting internally to review and prepare for renewal. The Lansing Center
Audit/Feasibility Study"Kick Off' is scheduled for April loth. Tristan
reviewed the agenda for the day.
Tristan reported that de-winterizing of the stadium has started. Tristan
reported there will be training for staff in April, for first aid mental health.
3. Paul Ntoko: Paul stated he is working to finalize an integration of a
structured cancellation policy in our contracts.
4. Heidi Brown: Heidi stated the part-time accounting associate position has
been filled. Currently, there is a Groundskeeper position open, along with on
call positions also available. Heidi reviewed items that were on the Board
Administrative report; noting there are no workers comp cases, or short
term/long term cases. Training continues with individual departments on the
Supervisor's manual.
Heidi stated the paid medical leave time at is all-encompassing for her at
moment. The Health Care Committee will start meeting to discuss renewals
of dental, vision, and life insurance. Heidi stated work has begun on the next
LEPFA U session.
5. Scott Keith: Scott provided updates on the Waterfront legal case as well as
Shuto Con legal case.
LEPFA Board of Commissioners Meeting
Page 6
February 26, 2019
VII. COMMISSIONER AND STAFF COMMENTS: No comments.
VIII. OLD BUSINESS: No report.
IX. NEW BUSINESS: No report.
X. ADJOURNMENT: At 9:32 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR:
APRIL 239 2019
LANSING CENTER
GOVERNOR'S ROOM
Respectfully submitted,
Shelly Busse, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
MARCH 19, 2019
MINUTES
At 8:o7 a.m. Chairwoman Cindy Bowen, called the meeting to order in Hall C of the
Lansing Center, located at 333 E. Michigan Avenue; Lansing, Michigan 48933•
COMMISSIONERS PRESENT: Cindy Bowen, Eric Brewer, James W. Butler III,
Price Dobernick, Charles Janssen, Brian McGrain (Ex-Officio), and Charles Mickens.
COMMISSIONERS EXCUSED: Tim Barron, Angela Bennett (Ex-Officio), and
James Stajos.
OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko,
Tristan Wright, Heidi Brown, Shelly Busse - Lansing Entertainment & Public Facilities
Authority; Jim Smiertka— Lansing City Attorney's Office, and Jack Alexander.
III. ESTABLISHMENT OF THE AGENDA: No changes.
IV. PUBLIC COMMENT: Jack Alexander asked Scott to provide an update on a
practice facility for Lansing Ignite soccer, if he is aware of what is happening with
a parcel of property located at the corner of Saginaw and Larch St., and what is
the plan for the City Market once Waterfront has vacated the space.
Scott reported Lansing Ignite will practice on Lansing Catholic Central's turf
field; long term plans for a practice location are being discussed. Scott stated he
isn't sure what the plans for the empty parcel are at this time. Once the City
Market is vacant, the building reverts back to the City and the City will determine
what its use will be.
V. APPROVAL OF FEBRUARY 26, 2019 MINUTES:
Chairwoman Bowen asked for a motion for approval of the minutes as published.
MOTION: Commissioner Janssen SECOND: Commissioner Mickens
Motion unanimously carried.
VI. REPORTS:
A. CHAIRWOMAN: No report.
B. FINANCE COMMITTEE :
1. February 2o1A Financial Information: Jennifer McFatridge,
Vice-President of Finance reported the following:
a. Groesbeck Golf Course: February Operating Revenue is up to budget
for the month and YTD. Simulator League revenue is spread out over the
time frame of their season. A year ago,we began operating Groesbeck
and did not have revenue sources (concessions or simulator) at that
time. There is a correcting entry to Green Fees revenue as this is the
LEPFA Board of Commissioners Meeting
Page 2
March 19, 2019
amount of unredeemed gift cards.
The revenue will be allocated at the time of use, not the time of purchase.
Switching to expense, Operating Expenses finished down to budget for
the month and YTD, however, were up over last year. Categories
providing the largest impact to the overall budget include Fringe/related
costs, Communications, and Food and Beverage. In the category of
Fringe/Related Costs adjustments to the FY2o budget were necessary as
we reviewed our allocations in order to have a better target.
Communications expenses are related to the Phone and Fiber project
with ACD that was completed in the Fall. Finally, in the category of Food
and Beverage, menu options are being reviewed and the budget for FY20
has been adjusted.
b. Lansing City Market: February Operating Revenue is up to budget for
the month and YTD. Building revenue has dropped by 12% and
Operating revenue has dropped by 17%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.
YTD our legal fees are $61k. We continue to review all anticipated
expenses to determine when the City of Lansing subsidy we receive will
be depleted. We have $10,175 subsidy funds due to us for the remainder
of the fiscal year.
c. Cooley Law School Stadium: Operating Revenue at Cooley Law
School Stadium 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 YTD
budget was Maintenance of Facilities. While there weren't any repairs
this month to report, we have discussed repairs in prior months (8/18-
Breaker repairs to Pepsi Porch/Chevy Terrace and 12/18-Trane repairs to
HVAC). We will be repairing the elevators near the Pepsi Porch in March.
d. Lansing Center: February Operating Revenue decreased from last year
nearly$297,000 or 7%. February revenue is down to budget for the
month but is up YTD. There were 10 events that occurred in February
2018 that did not repeat in February of 2019. Of those that did not
repeat, those events accounted for nearly $57k in Food and Beverage,
$32k in Equipment rental and $54k of rent. The flip side of this is we
have 9 events that are in February 2019 that did not occur in February
2018, capturing $3ok in food and beverage, $8k in Equipment, rental
and $26k among rent. Some events that occurred in February include
Kohler Expos (Mid-Michigan Women's Expo),American Water Works
Association,Arboriculture Society of Michigan, Michigan Farm Bureau
and Munciana Volleyball Club. Overall, Operating Expenses finished up
to budget for the month and YTD. Categories providing an impact to the
February budget include Professional Services, Marketing, and Events. In
Professional Services, we had labor of$890o related to our server
replacement that was installed at the beginning of the month. In
Marketing, nearly $9k is for the services and projects that are ongoing
LEPFA Board of Commissioners Meeting
Page 3
March 19, 2019
with M3. Finally, in Event expenses, 56% or $35k of the expense is AV
Supplies (laptops, projectors, etc.) and 7% or $4546 is for microphones.
Unearned Revenue-Advance rent has established the high point of the
last three fiscal years; increased when compared to last month; remains
strong when compared to last fiscal year. At the end of eight months of
the fiscal year, the Lansing Center has captured 66% of the revenue
budget and contained expenses to 67% of the budget.
2. Budget Review: Jennifer reported the fiscal year 202o Budget was
reviewed in Finance committee yesterday. LEPFA overall annual subsidy
request is up 2.7%when compared to last year. The City Market subsidy has
been eliminated. We were able to reduce Groesbeck subsidy by$13,000 and
we held the Lansing Center subsidy to the same amount as last year. We
have increased the Stadium subsidy in preparation for the additional
expense related to Lansing Ignite.
Chairwoman Cindy Bowen, asked for a motion to accept the February 2019
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 Leatherwood ACCEPT: Commissioner Mickens
C. PRESIDENT&CEO: Scott Keith reported the following:
1. Whiskey Warmer: The event is this Friday, from 6:oo p.m. until 9:oo p.m.
Scott reviewed highlights of the event.
2. Ignite: April 13, 2019 is Opening Day for Lansing Ignite. The suite is
available for the Board's use.Yesterday, the "kits" (jerseys) were unveiled.
Scott noted it is important that we refer to Cooley Law School Stadium, as
"stadium" and not "ballpark."
3. Lu nuts: Opening Day is April 6, 2019. The suite is reserved for the Board.
If interested in attending either game, please let Shelly know.
4. Common Ground: Friday night line-up has been announced; headliner is
Zedd. Scott stated he will forward the press release to everyone.A review of
the scheduled performers was provided.
5. Funding Model: A lot of discussion has taken place, and another meeting is
scheduled for April 17, 2019 that will include the CVB Executive Board,
LEPFA's Executive Board, The Mayor, and several County Commissioners.
6. Silver Bells: We are working on the transission from DLI to LEPFA; more
information will be provided during next month's meeting.
7. Waterfront: Scott distributed a memo from LEPFA's attorney that provides
an update on the litigation.
At 8:26 a.m. the meeting went into CLOSED Session. Roll was taken and
Commissioners present: Bowe, Butler, Dobernick, Janssen, and Mickens.
Also present: Jim Smiertka, City Attorney.
At 8:36 a.m. the meeting resumed OPEN Session. Roll was taken and
Commissioners present: Bowe, Butler, Janssen, and Mickens.
LEPFA Board of Commissioners Meeting
Page 4
March 19, 2019
*Commissioner Dobernick exited the meeting at 8:36 a.m.
8. Shuto Con: A debt settlement was reached through mediation that both
parties have agreed to.
9.Vacation: Scott reported he will be on vacation next week.
D. PERSONNEL COMMITTEE: The Committee meets this Thursday.
E. STRATEGIC PLANNING COMMITTEE: No report.
F.VICE-PRESIDENT&STAFF REPORTS:
1. Scott Horgan: Scott provided a review of the National Archery in Schools
Tournament. The event was held last weekend and was very successful;
with great attendance. Scott noted we are currently running a promo code
for 2o% room rental rate, in hopes the promotion will garner some short
term filler business.
Scott provided a review of Groesbeck preseason membership numbers;
noting all leagues are full and a newly announced "couples league"will be
incorporated into Friday night golfing. The course may open for walkers
this weekend, depending on weather.
Chairwoman Bowen stated it seems we could be doing more to promote the
good work that LEPFA is doing with the golf course. Scott Horgan reviewed
what we're doing and stated if anyone has ideas of what else can be done to
promote LEPFA's work to let him know.
2. Tristan Wright: The In-House Security RFP was sent out for bids.A meeting
to review the RFPs is scheduled for this week. Tristan reminded those
attending the Johnson Consulting Kick-Off of the date,April lo, 2019. The
Operations staff continues to prep the stadium for Opening Day.
3. Paul Ntoko: The State of MI per diem has been finalized and effective April
1, 2019 the beverage portion will be separated from the foo d portion.
A new supervisory structure is in place and some titles will change in the
F&B Department effective April 1, 2019.
4. Heidi Brown: Heidi review vacant positions and worker's comp claims;
noting there were two new claims last month. Internal meetings continue
to discuss upcoming CBA expirations. The Supervisor Manual and training
has been completed. Work continues on updating job descriptions. The
Paid Medical Leave Act and Minimum Wage increase are both effective at
the end of March. FLSA changes will also be forthcoming.
LEPFA Board of Commissioners Meeting
Page 5
March 19, 2019
VII. COMMISSIONER AND STAFF COMMENTS: No comments.
VIII. OLD BUSINESS: No report.
IX. NEW BUSINESS: No report.
X. ADJOURNMENT: At 8:55 a.m. the meeting was adjourned.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR:
MAY 21, 2019
LANSING CENTER
GOVERNOR'S ROOM
Respectfully submitted,
Shelly Busse, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
APRIL 23, 2019
MINUTES
At 8:07 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, James W.
Butler III, Price Dobernick, Charles Janssen, Larry Leatherwood, Charles Mickens, and
James Stajos.
COMMISSIONERS EXCUSED: Angela Bennett (Ex-Officio) and Brian McGrain
(Ex-Officio).
OTHERS PRESENT: Scott Keith, Jennifer McFatridge, Scott Horgan, Paul Ntoko,
Tristan Wright, Heidi Brown, Shelly Busse, Mindy Biladeau - Lansing Entertainment &
Public Facilities Authority; Heather Sumner — Lansing City Attorney's Office, and Jack
Alexander.
III. ESTABLISHMENT OF THE AGENDA: No changes.
IV. PUBLIC COMMENT: No public comment.
V. APPROVAL OF MARCH 19, 2019 MINUTES:
Chairwoman Bowen asked for a motion for approval of the minutes as published.
Commissioner Mickens stated he would approve on condition the statement in
Strategic Planning Report be changed to read "Did not have a meeting".
MOTION: Commissioner Janssen SECOND: Commissioner Mickens
Motion unanimously carried.
VI. REPORTS:
A. CHAIRWOMAN: No report.
B. FINANCE COMMITTEE:
1. March 2o1Q Financial Information: Jennifer McFatridge,
Vice-President of Finance reported the following:
a. Groesbeck Golf Course: March Operating Revenue is down to budget for
the month but is up YTD. A year ago,we were in our third month of
managing Groesbeck, the Simulator was not active at that time and
revenue sources (concessions or green fees) were minimal at that time.
Switching to expense, Operating Expenses finished down to budget for
the month and YTD. Categories providing the largest impact to the
overall budget include Fringe/related costs, Communications, and Food
and Beverage. In the category of Fringe/Related Costs adjustments to the
LEPFA Board of Commissioners Meeting
Page 2
April 23,2019
FY2o budget were necessary as we reviewed our allocations in order to
have a better target. Communications expenses are related to the Phone
and Fiber project with ACD that was completed in the Fall. Finally, in the
category of Food and Beverage, menu options are being reviewed and the
budget for FY2o has been adjusted.
b. Lansing City Market: March Operating Revenue is up to budget for the
month and YTD. Building revenue has dropped by 13% and Operating
revenue has dropped by 18%when compared to the prior year. Overall,
Operating expenses finished down to budget for the month, but are up
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. We have received the
final subsidy funds for the fiscal year.
c. Cooley Law School Stadium: Operating Revenue at Cooley Law School
Stadium comes from the ATM machine that is positioned on the
concourse. Revenue is down to budget YTD. We will start to see revenue
again, in April as Baseball and Soccer seasons have begun. Overall,
Operating expenses finished up to budget for the month, however, it is
down to budget YTD. The category providing the largest impact to the
YTD budget was Maintenance of Facilities. In March we incurred repairs
to a perimeter fence as well as HVAC repairs.
d. Lansing Center: March YTD Operating Revenue decreased from last year
by more than $300,000 or 6%. March revenue is up to budget for the
month as well as YTD. Some events that occurred in March include
Michigan Outdoor Life (formerly known as Deer and Turkey) Michigan
Municipal League, Michigan Association of Treatment Court
Professionals and Michigan Milk Producers. There were 14 events that
occurred in March 2018 that did not repeat in March of 2019. Of those
that did not repeat, those events accounted for nearly $86k in Food and
Beverage, $95k in Equipment rental and $68k of rent. In March of 2019,
we have 8 events that are in March 2019 that did not occur in March
2018, capturing $105k in food and beverage, $38k in Equipment rental
and $38k in rent. Overall, Operating Expenses finished up to budget for
the month and YTD. Categories providing an impact to the March budget
include Professional Services, Marketing, and Events. In Professional
Services and Marketing, we have allocated expenses related to the Facility
Audit. Finally, in Event expenses, 43% or $31k of the expense is AV
Supplies (laptops, projectors, etc.) and 10% or $7K is for event supplies.
Unearned Revenue-Advance rent has followed trend with the prior two
fiscal years; decreased when compared to last month; remains on par to
last fiscal year. At the end of nine months of the fiscal year, the Lansing
Center has captured 79% of the revenue budget and contained expenses
to 76% of the budget.
LEPFA Board of Commissioners Meeting
Page 3
April 23,2019
Secretary/Treasurer, Commissioner James Stajos commented on the
revenue shortage and noted that expenses are below budget, so overall
April was a great month.
Chairwoman Cindy Bowen, asked for a motion to accept the March 2019
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 Barron
Motion unanimously carried.
C. PRESIDENT &CEO: Scott Keith reported the following:
1. Lugnuts: Opening Day for Lugnuts baseball was greeted with beautiful
weather; a perfect night for baseball.
2. Ignite: Opening night for the Ignite was a chilly night. Attendance was
around 3,400 people. Scott compared the timelines of when the Lugnuts
came to Lansing vs. when the Ignite team was announced and how little
time was left to plan for the Ignite. Scott stated this is an educational
experience and we are learning through the process of the new franchise.
Chairwoman Bowen asked if the use of social media could help educate the
public on the soccer experience.
Scott stated that this may be a good opportunity for the Ignite to provide
some public training on the sport.
3. Budget Presentation: LEPFA's budget will be presented to City Council on
Monday,April 29th. Scott stated he anticipates a good presentation with
good questions.
4. Waterfront: There was a Court of Appeals hearing last month and a decision
from the Court was received last week. The ruling is in LEPFA's favor on all
three counts.
5. Rotary Park: Currently the park is under construction to make
improvements. LEPFA may be asked to work with the City to develop events
for the park.
6. Common Ground: Thursday night's opening act was announced las week.
Scott reviewed the Lansing State Journal article that discussed Taste of
Country not returning this year. Scott stated the article is inaccurate; noting
there were dates available for the event.
Scott reviewed this year's line-up and discussed the reduction in funding
from the City. Further noted is Common Ground is now in this fiscal year
and not next fiscal year.
7. Silver Bells:_Scott stated a formal motion is needed to accept the transfer of
Silver Bells from Downtown Lansing Inc. to LEPFA. There are no changes
with Lansing Board of Water &Light involvement.
LEPFA Board of Commissioners Meeting
Page 4
April 23, 2019
Commissioner Janssen asked how Silver Bells will help with revenue. Scott
stated we will lose the sponsorship from the City and this is not a revenue
generating event for LEPFA.
Commissioner Butler asked if the new position was in the budget. Scott
stated it was partially in the budget and partially funded by the events that
the position will oversee.
Commissioner Barron made a motion to accept the transfer of Silver Bells
from Downtown Lansing Inc. to LEPFA.
MOTION: Commissioner Barron ACCEPT: Commissioner Stajos
Motion unanimously carried.
8. April Financials: A discussion was held yesterday during the Finance
Committee meeting regarding April financials. Scott explained how there
were various ill-timed school district Spring Breaks this year and the late
date of Easter, no one was scheduling events during the month of April.
Scott asked for support when discussing this legislation and proposing a set
schedule for spring breaks and post Labor Day school start the community.
9. Golf Balls: Groesbeck logo golf balls are available for anyone today who
would like a pack.
10. CAUW: Scott stated he has been elected to Chair this Board for the
upcoming year.
11. Funding Model Meeting: This meeting was held last week with CVB,
County, Mayor, Executive Boards. We hope to schedule another meeting
soon. Scott stated the meeting started off rough,with the CVB not wanting
to give up any of the tax funds to LEPFA.
Chairwoman Bowen stated the two boards are working together to obtain
funding. By the end of the meeting, everyone agreed Lansing Center is an
asset to the community.
Commissioner Stajos stated he is disappointed with CVB's position; noting
it was clear that there were other entities that did not agree with the
funding.
Commissioner Dobernick agreed with what was stated by Chairwoman
Bowen and Commissioner Stajos; noting there is room for further
discussion.
Commissioner Butler asked how the Mayor feels about the outcome?
Scott stated the Mayor was clear that something has to happen. Proposed
was a 2% change in the hotel tax
12. 2018 Annual Report: Distributed to everyone and will discuss at next
meeting.
D. PERSONNEL COMMITTEE: Commissioner Butler reported the Committee
met last Thursday,April 18th. Discussion items included CEO job description,
upcoming CEO annual review, the Director of Outside events job description,
and the minimum wage increase -which doesn't affect us. The CEO contract
will also be refined.
LEPFA Board of Commissioners Meeting
Page 4
April 23, 2019
E. STRATEGIC PLANNING COMMITTEE: No report.
F. VICE-PRESIDENT&STAFF REPORTS:
1. Heidi: Heidi stated she will reference her report that is in the
Administrative Board Report. Currently,there are no monthly employee
leaves this month, there were four employee referrals this month. We are
55 days accident free. Heidi stated the team is working on upcoming CBA
expirations.As always,job descriptions are under review. We met with
Brogan Reed to move all benefits to a Jan. 1 renewal. The Healthcare
Committee will meet in September to discuss healthcare renewal. Heidi
reminded everyone that tomorrow is Administrative Professionals Day.
2. Paul: We are modifying supervisory roles in F&B dept. and there are some
challenges to work through. Recruitments for Margarita Fest are going well.
3. Tristan: Thanks to Board members who met for the Facility Audit Study.
An RFP for Security service was sent out earlier and we will retain DK for
another two years, with a small rate increase. All F/T staff will attend mental
health training tomorrow.
4. Scott H.: Finished simulator golf season and lessons. Learned from it and
where opportunities lie. Golf Course is open, March 27th. One day later than
last year. Outings are up 36% to LY. Leagues will also see an increase.
Lansing Center is running a spring business promo to draw business through
end of the fiscal year. Next year's pace is strong.
VII. COMMISSIONER AND STAFF COMMENTS: No comments.
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:
May 21, 2019
Lansing Center
Governor's Room
Respectfully submitted,
Shelly Busse, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
May 28, 2019
MINUTES
At 8:04 a.m. Vice Chairman Price Dobernick, 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, James W. Butler III, Price Dobernick, Charles Janssen, Larry
Leatherwood and James Stajos.
COMMISSIONERS EXCUSED: Angela Bennett (Ex-Officio), Cindy Bowen, Eric Brewer, Brian McGrain (Ex-
Officio) and Charles Mickens,
OTHERS PRESENT: Heidi Brown, Scott Horgan, Scott Keith, Jennifer McFatridge, Paul Ntoko, Tristan
Wright - Lansing Entertainment & Public Facilities Authority; Tiffany Dowling and Zach Krieger — M3
Group, and Jack Alexander.
III. ESTABLISHMENT OF THE AGENDA: No changes.
IV. PUBLIC COMMENT: No public comment.
V. APPROVAL OF APRIL 23, 2019 MINUTES:
Vice Chairman Price Dobernick requested a motion for approval of the minutes as published.
MOTION: Commissioner Leatherwood SECOND: Commissioner Janssen
Motion unanimously carried.
VI. REPORTS:
A. CHAIRWOMAN: Scott Keith reported on behalf of Chairwoman Bowen that they are moving
forward with LEPFA Board of Commissioners Officer nominations in June. Board members may
forward nominations to Chairwoman Bowen or Scott Keith.
B. FINANCE COMMITTEE:
1. April 2019 Finance Information: Jennifer McFatridge, Vice President Finance reported
the following:
a. Groesbeck Golf Course: April Operating Revenue is down compared to budget for the month
but is up for year-to-date (YTD). One year ago, LEPFA was in the fourth month of managing
Groesbeck Golf Course. To-date, green fees, cart rentals and concessions are up about 30%
compared to April 2018. League play began in April with the revenue reflected on the financials
moving forward. Operating Expenses are down compared to budget for the month and YTD.
Categories providing the largest impact to the overall budget include Fringe/Related Costs,
Marketing and Supplies/Materials.
LEPFA Board of Commissioners Meeting
Page 2
May 28, 2019
In the category of Fringe/Related Costs, adjustments to the FY20 budget were necessary as we
reviewed our allocations in order to have a better target. Marketing Expenses are related to the
purchase of scorecards for the season, and additional signage. Supplies/Materials included a
new AED purchased for the clubhouse, fuel delivery for carts and equipment used on the course,
and additional uniforms for seasonal staff.
b. City Market: April Operating Revenue is up compared to budget for the month and year-to-
date (YTD). Building Revenue has dropped by 13% and Operating Revenue has dropped by 18%
compared to 2018. Overall, Operating Expenses finished down compared to budget for the
month but are up year-to-date (YTD). The category providing the largest impact to the budget is
Professional Services with 97% of the expense attributed to legal fees. We continue to review
all anticipated expenses to determine when LEPFA's City of Lansing Subsidy will be depleted.
LEPFA has received the final fiscal year subsidy funds.
c. Cooley Law School Stadium: Operating Revenue at Cooley Law School Stadium is from the
concourse ATM machine. Revenue is down compared to budget for year-to-date (YTD).
Revenue from the ATM will start appearing as baseball games and soccer matches have begun.
Operating Expenses for the month are up compared to budget and are down compared to
budget for YTD. The categories providing the largest impact to the YTD budget are Maintenance
of Facilities and Concessions/Catering. In April LEPFA incurred repairs/service to an elevator and
a repair to an Outfield HVAC unit. In Concessions/Catering there were repairs to walk-in and
reach-in coolers and filter replacements.
d. Lansing Center: April YTD Operating Revenue decreased over last year by more than
$600,000 or 11%. April revenue is down compared to budget for the month as well as YTD.
April events included: MYWAY (Wrestling), Michigan HR, Capital Area Michigan Works! and
Planned Parenthood of Michigan. There were three large events in April 2018 that accounted for
$270,000 of the Lansing Center's overall revenue - Michigan Dental, Michigan Safety
Conference and MEA and all three were not here in April 2019, which impacted revenue.
Overall, there were 12 events that occurred in April 2018 that did not repeat in April 2019. Of
those that did not repeat, those events accounted for nearly $184,000 in Food and Beverage,
$110,000 in Equipment Rental and $92,000 in rent. We had 12 events in April 2019 that did not
occur in April 2018, capturing $39,000 in food and beverage, $35,000 in Equipment Rental and
$22,000 in rent. Operating Expenses were down compared to budget for the month and up for
YTD. Categories impacting the April budget include Professional Services, Marketing and Events.
In Professional Services and Marketing, we have allocated expenses related to the Facility Audit.
For Event Expenses, 58% or $30,000 of the expense are AV Supplies (laptops, projectors, etc.)
and 10% or $6,000 is for event supplies. Unearned Revenue-Advance Rent has followed trend
with the prior two fiscal years, and it has
LEPFA Board of Commissioners Meeting
Page 3
May 28, 2019
increased when compared to last month and remains on par compared to last fiscal year. At the
end of ten months of the fiscal year, the Lansing Center has captured 84% of the revenue budget
and contained expenses to 84% of the budget.
Scott Keith commented that as he shared at the April Board meeting we anticipated that we
would be impacted by the late Easter and rolling spring breaks throughout the school districts.
Next year it does not appear that we will have this issue. Scott noted the Lansing Center
financials are marked as a "draft" to allow for further review of the financials. He also reported
that a walk through of the Market took place last week and all utilities will be turned over to the
City due to no budget. Commissioner Leatherwood questioned if there is follow up with
organizations that leave or move their rotations, and the response was yes. Commissioner
Leatherwood also questioned if we reach out to others to fill in business? Scott Keith responded
we do, as booking is similar to a puzzle in trying to make all of the pieces fit and that we started
looking at how to fill in the business over a year and a half prior; we also adjusted the budget
20% to account for the lost business.
Vice Chairman Price Dobernick requested a motion to accept the April 2019 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 Barron
Motion unanimously carried.
C. PRESIDENT& CEO: Scott Keith, LEPFA President & CEO reported the
following:
1. M3 Group Presentation: Tiffany Dowling and Zach Krieger provided an update on the LEPFA's
branding process by recapping the survey results indicating that people don't understand what
LEPFA does as organization and the need for more understanding of LEPFA's brand. Tiffany
reviewed timeline, noting that a presentation was made to the LEPFA Board in March and in
March/April they met with Scott Keith to present three (3) branding designs. The name
presented was: Regional Entertainment & Venues (rev) which simplifies what we do and is easy
to understand. The simplified name makes marketing easier and she displayed the logo selected.
The next steps are today's LEPFA Board presentation, discussion and messaging development;
standardization and the brand launch. Work will begin on the tag line and messaging; they will
then bring it back to leadership and will be working on plan implementation and discussion.
Commissioner Leatherwood questioned if M3 Group will return feedback to survey groups;
Tiffany noted after discussion with the Board they will go back, should feedback be necessary.
LEPFA Board of Commissioners Meeting
Page 4
May 28, 2019
Commissioner Barron commented he thought the brand was great, and there would be no
image or branding to overcome. Commissioner Janssen asked if Lansing should be added to the
logo to represent which regional entity. Tiffany explained Lansing is currently not included to
keep "rev" generic, because LEPFA events all have locators on messaging, so they didn't feel
geographic location is needed on the logo. Scott Keith noted they can tag line Lansing—because
the change in logo is moving us forward toward a regional concept. Commissioner Barron noted
we may use the second line for messaging. Commissioner Leatherwood recalled that "LEPFA"
was unfamiliar and asked what will we do to get the message out? Tiffany responded currently
we are looking at ways to put new brand into play in current happenings, for example a
"Margaritafest" poster was displayed with the "rev" logo. A brand launch will occur, and we will
display the rev logo on event materials.
Scott Keith noted the color schemes are similar to LEAP and the GLCVB and suggested "rev"
sounds like we are moving forward and also ties into our auto history; and ties the name into
what we do. It is a DBA currently and LEPFA remains our legal name until we are ready for a
change to include revision of the Articles of Incorporation, etc. Commissioner Leatherwood
indicated he liked it—and referred back to the survey, asking if it would be helpful to define what
is "regional" and suggested listing in small print the counties. Tiffany suggested adding more
would make the logo too heavy, but perhaps it could be added in messaging and she explained
branding is what you understand and how you feel about an organization; and as such, we need
to build our brand first and deliver the message so people will understand. She noted, through
this process we are taking control, pushing out the brand and will be a part of the message so
people understand and are excited. Scott Keith explained the next step is the messaging and the
Mayor's blessing on moving forward; furthermore, it is important our county entities feel a part
of the organization. Commissioner Janssen clarified that LEPFA will disappear and events will be
managed by rev and no longer will the message be that we manage public facilities. Scott noted
because "public facilities" is not clear and with "rev" we are trying not to confuse our facilities
with the jail, library, etc. Tiffany noted the public may not care, but they need to know it is
venues and this captures what is relevant to what ppl need to know. Commissioner Stajos asked
if it is trademarked? Tiffany noted it is available but is not trademarked yet.
2. Mackinac Island Conference—Tristan Wright and Commissioner James Stajos to attend this
year in Scott Keith's absence, due to daughter's graduation. Tiffany and Zach to handle display
and LEPFA representation will be in great hands.
3. Margarita Fest—Scheduled for Friday, May 31 -weather looks good; close to sell-out 50 tix left.
LEPFA Board of Commissioners Meeting
Page 5
May 28, 2019
4. Common Ground—Scott Keith reviewed the lineup for Common Ground and noted he had
posters for Board to share and noted this is the most diverse lineup for Common Ground. "I
Love the 90s" is scheduled in two weeks, ticket sales are picking up.
5. Waterfront Update—Scott Keith indicated Waterfront has filed a motion for reconsideration
which delays the process. We have filed our response and hope to have a response this week or
next. Scott met with the attorneys, and Brian McGrain last week; Waterfront indicated a
settlement is considered and LEPFA will make an offer with a deadline date. Scott noted the
redevelopment of their liquor license is not feasible. LEPFA may forgive a portion of the funds
owed if they move out and not file with the Supreme Court. Scott noted he will continue to
update the Board.
At 8:49 Commissioner James Butler exited the meeting.
6. June Board Meeting Date Change—Scott extended his thanks for the approval of the
June meeting change (due to Common Ground) to June 18 at 3:00 p.m., Room 201.
D. PERSONNEL COMMITTEE: Scott Keith reported a Personnel Committee meeting
was held and discussion items included completion of the President & CEO's
evaluation; an IATSE matter; the Anti-Harassment Training on May 23; and t he
rescheduling of the Mental Healthy Training.
E. STRATEGIC PLANNING COMMITTEE: No report.
F. VICE PRESIDENT/STAFF REPORTS:
1. Jennifer McFatridge - No report.
2. Scott Horgan —Scott reported simulator use wrapped up in April and covered 55% of
the cost this year; simulator use was extended by a week and a half due to the
weather. We are anticipating a good golf season this year; league play is up 15% and
additional outings are up 50%. It was a great weekend this last weekend and the
course is in great condition; we have had many compliments. The GLAGA match play
tournament is this weekend. At the Lansing Center Org Pro is coming up and the PACE report
looks good for the Lansing Center.
At 8:54 a.m. Commissioner James Butler entered the meeting.
Upcoming groups are: IHOP, CBD Oil Manufacturers in the Midwest, which is
a great opportunity for us. Scott Keith noted based on the PACE report, August is the only month
we are behind, due to the varying return to school dates.
LEPFA Board of Commissioners Meeting
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May 28, 2019
3. Tristan Wright—Tristan reported the fountain is on at ballpark. The Grand Concert
series kicks off on June 13 - with Everett High School; and the event has moved to
the Lansing Center gazebo area due to construction. Tristan thanked Scott Keith and noted she
will represent LEPFA well. Vice Chairman Price Dobernick offered an endorsement for the
Plumbers and Pipefitters local for their installation of the stadium's fountain, and
noted he was in the pit as a member of the installation team.
4. Paul Ntoko— Paul noted everyone is getting ready and excited for Margaritafest—
and tickets are selling well. Interviews are underway for the Foodservice
Supervisor.
5. Heidi Brown — Currently we have two full-time vacant positions Foodservice Supervisor
and Administration Assistant, as well as on-call and seasonal vacancies. Collective
Bargaining Agreement internal review has concluded for UAW, and the team will
address IATSE and AMTA, all expiring in June 2019. An Anti-Harassment Policy
review was held on May 23 and presented by FSCS Attorney Cliff Hammond, with two
sessions offered. LEFPA U Committee continues to meet to plan upcoming
session with is slated to address "Workplace Inclusion and Diversity" pending a date.
Appointments and review of internal committees is slated to coincide with the start of the
fiscal year.
VII. COMMISSIONER & STAFF COMMENTS: No comments.
VIII. OLD BUSINESS: No report.
IX. NEW BUSINESS: No report.
X. ADJOURNMENT: At 9:04 a.m. the meting was adjourned. MOTION: Commissioner
Janssen SECOND: Commissioner Barron Motion unanimously carried.
THE NEXT MONTLY MEETING IS SCHEDULED FOR:
JUNE 18, 2019 at 3:00 p.m.
LANSING CENTER - ROOM 201
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
JUNE 18, 2019
MINUTES
At 3:04 p.m. Chairwoman Cindy Bowen, called the meeting to order in Room 201 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, Charles Mickens and James Stajos.
COMMISSIONERS EXCUSED: Angela Bennett (Ex-Officio) and Brian McGrain (Ex-Officio).
OTHERS PRESENT: Heidi Brown, Scott Horgan, Scott Keith, Jennifer McFatridge, Paul Ntoko,
Tristan Wright - Lansing Entertainment & Public Facilities Authority and Tom Dobson, IATSE &
MPMT, Local M274.
III. ESTABLISHMENT OF THE AGENDA: No changes.
IV. PUBLIC COMMENT: No public comment.
V. APPROVAL OF MAY 28, 2019 MINUTES:
Chairwoman Cindy Bowen requested a motion for approval of the minutes as published.
MOTION: Commissioner Janssen
SECOND: Commissioner Stajos
Motion unanimously carried.
VI. REPORTS:
A. CHAIRWOMAN: Scott Keith presented the 2019/2020 slate of LEPFA Board of
Commissioners Officers as follows:
Chairman: Price Dobernick
Vice Chairman: James Stajos
Secretary/Treasurer: Larry Leatherwood
Chairwoman Bowen requested a motion to accept the 2019-2020 slate of officers as presented.
MOTION: Commissioner Janssen
SECOND: Commissioner Butler
Motion unanimously carried
B. FINANCE COMMITTEE:
1. MAY 2019 Finance Report: Jennifer McFatridge, Vice President Finance reported
the following:
LEPFA Board of Commissioners Meeting
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June 18, 2019
At 3:11 p.m. Commissioner Barron entered.
a. Groesbeck Golf Course: May Operating Revenue is up compared to budget for the
month and for year to date. LEPFA was in the fifth month of managing Groesbeck at this
time last year; this season has kicked off with green fees, cart rentals and concessions
being up more than 10% compared to May 2018. Leagues began in April with the revenue
being reflected on the financials moving forward. Operating Expenses are down
compared to budget for the month and year to date. Categories providing the largest
impact to the May budget include Fringe/Related Costs, Marketing, and Food/Beverage.
Adjustments to the FY20 budget were necessary for Fringe/Related Costs, as we reviewed
our allocations, in order to have a better target. Marketing expenses apply to the various
forms of advertising purchased and additional signage. Finally, in the category of Food
and Beverage, the expense is related to Concessions Labor and Cost of Goods purchased.
b. City Market: May Operating Revenue is up compared to budget for the month and
year to date. Building Revenue dropped by 14% and Operating Revenue dropped
by 18%when compared to the prior year. Operating Expenses are down compared to
budget for the month and are up for year to date. The category providing the largest impact
to the budget is Professional Services, where 96% of the expense is legal fees.
Review of all anticipated expenses continues to determine when reserves will be depleted.
LEPFA has received the final subsidy funds for the fiscal year.
c. Cooley Law School Stadium: Operating Revenue at Cooley Law School Stadium typically
comes from the concourse ATM machine. Revenue is up compared to budget for the month
and year to date. Overall, Operating Expenses finished up compared to budget for the month;
however, it is down compared to budget for year to date. The category providing the largest
impact to the May budget was Utilities. The Stadium is now equipped with smart meters to
provide more accurate utility readings. There were 17 scheduled home baseball games,
3 scheduled Ignite matches, in addition to scheduled use of The View and activities at the
stadium such as "BeerFest." Also impacting the year to date budget is Maintenance of
Facilities, which includes repairs reviewed in monthly board meetings, such as repairs to
breakers in the Pepsi Porch and Chevy Terrace. Additional repairs were made to light poles,
HVAC units, perimeter fencing and elevators.
d. Lansing Center: May year to date Operating Revenue decreased from last year by more than
$700,000 or 11%. May Revenue is up compared to budget for the month; and is down for
year to date. May events include MSHDA, MSU Extension Services Science T's, Michigan
Disability Rights Coalition and MALA. There were four (4) large events in May 2018 that
accounted for$185k of the overall revenue. MI Celebrates, McDonalds, Northwest
Lower Michigan Synod and Consumers Energy were not here in May 2019. Overall, there
LEPFA Board of Commissioners Meeting
Page 3
June 18, 2019
were 18 events that occurred in May 2018 that did not repeat in May of 2019 accounting
for nearly $16,000 in Food and Beverage, $66,000 in Equipment Rental and $45,000 in Rent.
In May 2019, we have 12 events that did not occur in May 2018, capturing $83,000
in Food and Beverage, $42,000 in Equipment Rental and $28,000 in Rent. Overall,
Operating Expenses are down compared to budget for the month and up for year to
date. Categories impacting the May budget include Marketing and Events. In Marketing,
the expenses are related to the Mackinac Policy Conference. Regarding Event Expenses, 49% or
$33,000 of the expense is AV Supplies (laptops, projectors, etc.) and 16% or $11,000 is for
microphones. Unearned Revenue-Advance Rent has increased when compared to last
month; but remains strong compared to the last two fiscal years. At the end of 11 months
of the fiscal year, the Lansing Center has captured 93% of the revenue budget and contained
expenses to 92% of the budget.
Chairwoman Bowen requested a motion to accept the May 2019 Financial Statements
for: Groesbeck Golf Course, Lansing City Market, Cooley Law School Stadium, and Lansing
Center be received as published; and further that the monthly expenses for each entity
be accepted as presented.
Scott Horgan explained the loss of events and noted April was a difficult month despite
budgeting 20% less in revenue, attributed to the rolling spring breaks. Also, in April SBAM and
the Children's Trust went to the Breslin Center and typically they aren't booked more than one
year out. The SBAM loss was about$45,000 in F&B and the Children's Trust Fund not as much.
SBAM is typically in halls; Trust Fund in the ballrooms.
MOTION: Commissioner Butler
SECOND: Commissioner Barron
Motion unanimously carried.
2. Special Liquor License: Chairwoman Bowen requested a motion to approve use of a
special liquor license for the "Prime Fest" to be held on September 20 and 21, 2019,
MOTION: Commissioner Barron
SECOND: Commissioner Dobernick
Motion unanimously carried
C. PRESIDENT& CEO: Scott Keith, LEPFA President & CEO reported the following:
1. Scott clarified that we operate the Liquor License for Prime Fest and receive a fee.
2. Financials: Groesbeck Golf Course is doing well despite the weather.
LEPFA Board of Commissioners Meeting
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June 18, 2019
3. Lansing City Market: We are working on having the City Market utilities transferred to
the City as there is no budget as of July 1,2019.
Tom Dobson entered the meeting at 3:23 p.m.
4. Cooley Law School Stadium— Based on the use of smart meters at Cooley Law School
Stadium, we budgeted for an increase in utilities. The Lugnuts and Ignite have two
different budgets allowing for allocation of the cost and the smart meters will allow for
real time readings.
5. Common Ground -tickets will be distributed to the Board.
6. 1 Love the 90s—the event went well, overall it was a good night, and was well attended;
we are working on the settlement. Set up occurred the morning of the event and we
were out that night, and therefore costs were limited. Attendance was around 4,000.
7. Lansing Center—We have received complaints from customers regarding walkers in the
building, Scott indicated that we responded clearly to complaints about limiting the
walkers and has had no further response. Signage has been posted and we have been
diligent in our efforts to meet our customers requests.
8. Labor Complaint— "I Love the 90s" received a complaint for not using union labor for
stagehands. They had their own staff, which meant there was no need for labor. The
production company hired for the load out.
9. Margarita Fest - 1000 people were in attendance. "Best Margarita" winner was Cantina
Eastwood and they won by 2 votes. Overall it was a good event, we had great weather
and generated revenue.
10. Silver Bells in the City—Scott reported the Board of Water and Light is a Signature
Sponsors for two (2) years and sponsorship is over $100,000. City declined their
sponsorship and Crest Pontoon is a new sponsor.
11. Parking—Scott reported he is meeting with Brian McGrain on Thursday. There are
issues with the lot behind the Lansing Center, customers are complaining, and while
LEPFA is working to get revenue for the City, it is creating issues for our convention
business. Commissioner Barron questioned who is creating the issues? Scott noted it is
the Lugnuts staff and players who are utilizing the lot and are leaving vehicles parked for
3-4 days in premium parking spots. Scott noted he and Brian McGrain are meeting to
resolve the matter in the best interest of all parties.
12. Waterfront Bar & Grille Update- Scott noted their motion for reconsideration was
denied and the 42 days started at that point. July 15 they have to vacate or apply to
Supreme Court; LEPFA made an offer and will remind them of the offer or consider
something new. They submitted a FOIA request last week. The settlement expiration
date is June 30. They will either vacate or apply to the Supreme Court. They have been
denied,
LEPFA Board of Commissioners Meeting
Page 5
June 18, 2019
and we are not sure why they would apply, other than application allows for delay up to
November. Commissioner Stajos encouraged Scott Keith to keep working to get the
matter resolved.
13. Facility Audit—Scott reported we are waiting on pieces and should have a draft of audit
in next two weeks.
14. Brand Change Proposal —Chairwoman Bowen questioned the status of proposed brand
change, noting she has concerns. Scott Keith noted the purpose of the presentation was
to get feedback. Scott Keith will schedule a time for Commissioners Mickens and Bowen
to meet with M3 Group as he is looking for feedback to a more regional
approach. Legalities were questioned, Scott noted it would be a DBA, but we would
revert to the LEPFA by-laws and Articles to make legal. Chairwomen Bowen questioned
the cost-Scott noted it was approximately $30,000 with additional fee potential.
Commissioner James Stajos noted at Mackinac Island people had no idea who/what
LEPFA was, and we need to do something because people don't understand the current
brand. Scott Keith noted it is a challenge and we are trying to move to a logo that
represents what LEPFA does—and its t is a process. Scott will forward the presentation
and set a meeting for those interested in attending. Chairwoman Bowen commented
that there is no guarantee that the change will acknowledge brand recognition; and she
brings history with business and association branding experiences and noted timing is
important. Chairwoman Bowen commented that she feels it is incumbent upon the
Board to understand the process and that it is a huge undertaking and may be
costly. Chairwomen Bowen requested detail on changes, costs, time frame, how we will
accomplish the change. Commissioner Barron suggested the presentation be held at
her property. Chair Bowen indicated that she has been through the process and it is
costly. She explained in her past experience two entities didn't merge and timing was
the issue and they couldn't ramp up the new brand and membership didn't grow after
two years. Scott Keith noted in the feedback of the concept -the purpose for the
change is public image related and to boost up property and experience recognition
such as Silver Bells, Groesbeck Golf Course, and should have a positive connotation.
We are trying to boost recognition and display our positives . Currently, you have to explain
LEPFA and based on the explanation, they may already have a negative impression. Other
business have the same issues.
D. PERSONNEL COMMITTEE: James W. Butler III, Personnel Committee Chairman moved to move
to closed session to discuss the President & CEOs performance evaluation at 4:03 p.m.
MOTION: Commissioner Barron
SECOND: Commission Mickens
Roll Call Vote:YES—Commissioners Tim Barron, Cindy Bowen,James Butler, Price Dobernick,
Charles Janssen, Larry Leatherwood, Charles Mickens, and James Stajos. NO- none. Motion carried.
At 4:18 p.m. Commissioner Charles Janssen exited the meeting.
LEPFA Board of Commissioners Meeting
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June 18, 2019
At 4:27 p.m. the closed meeting was adjourned, and Commissioner James W. Butler III moved to
adjourn closed session and return to the regular monthly meeting.
MOTION: Commissioner Barron
SECOND: Commission Mickens
Roll Call Vote: YES- Commissioners Tim Barron, Cindy Bowen,James Butler, Price Dobernick, Larry
Leatherwood, Charles Mickens, and James Stajos. NO- none. Motion carried.
E. STRATEGIC PLANNING COMMITTEE: No report. Chairwoman Bowen questions the status of
the Committee Goals and Committee Chair Mickens reported they are in process. Chair Mickens
reported he and Scott Keith met and moving forward they will not have monthly set meetings and
will outline areas address regarding funding and building needs and will be involved in the facility
audit. Scott Keith and the Committee Chair will provide updates to the Board as needed.
F. VICE-PRESIDENT&STAFF REPORTS:
1. Jennifer McFatridge—Vice President Finance: No additional report.
2. Scott Horgan—Vice President Sales &Services: Groesbeck Golf Course is doing well. We hosted
two (2) Best Ball Golf Tournaments for 13 different High Schools which is about 158 players in
May. The girl's tournament will take place in the fall. Leagues are at full strength. Golf outings
are up about 45%; and we are up 62% compared to last year-despite weather. Last year at this
time we were in a drought- next few months will tell.
3. Tristan Wright—Vice President Operations- the first Grand Concert Series took place and
Mindy did well overseeing the event, which had to be moved inside. Work continues at the
ballpark on minor repairs. Maintenance continues working on work orders. Ryan and his team
converted the field for"I Love the 90s." Soccer is being embraced by community 3,000-4,000
for the Ignite opener. The seating is the challenge, but the crowds are louder and lots of
families are attending. Commissioner Barron noted the many families and multicultural interest
in soccer. Scott Keith noted the concessions are different from baseball, because people don't
leave seats until half time.There are more hawkers because pp] don't leave their seats. Sports
becoming more that way with phone delivery and the different set-ups.
4. Paul Ntoko—Vice President Foodservice- Interviews are completed for the Foodservice
Supervisor position and the new team member will start next week, which will allow for them to
have the Common Ground experience. Paul extended his thanks for the help from all
departments with Margarita Fest. Cindy Bowen questioned the fiscal year menu
revisions? Paul noted they will be addressed in August after Common Ground, Wedding menus
will be updated in July. Chairwoman Bowen asked if prices are compared to competition, and
Paul noted they are and some items lower, some higher; for example, our chicken breasts are
done freshly which results in no complaints.
5. Heidi Brown—Vice President of Administration- Recapped the report in the Administrative
Board Report—there were two Workers Comp claims and one FML leave. Work continues on
the collective bargaining agreements with all three unions. The Anti-Harassment training took
place in 2 sessions with Cliff Hammond. All LEPFA Committees will be reviewed regarding chairs
and members. Employee Performance Evaluations and job descriptions are under review and
due to Scott Keith by September 13. Interviews are underway for full-time positions.
LEPFA Board of Commissioners Meeting
Page 7
June 18, 2019
VII. COMMISSIONER &STAFF COMMENTS: Commissioner Barron noted in regard to Waterfront
Grille—he is hearing great things about LEPFA. He extended his "hats off"to LEPFA's Management
Staff. He noted all is handled very well. when he visits he sees friendly faces, has good experiences and
is proud of how everything has been handled, and everyone is fantastic. He noted that he really means
his comments, noting it has been tough, and our team has been resilient.
VIII. OLD BUSINESS: No report.
IX. NEW BUSINESS: No report.
X. ADJOURNMENT: At 4:37 p.m. the meeting was adjourned.
THE NEXT MONTLY MEETING IS SCHEDULED FOR:
AUGUST 27, 2019 at 8:00 a.m.
LANSING CENTER — GOVERNOR'S ROOM
Respectfully submitted,
Heidi Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
AUGUST 27, 2019
MINUTES
At 8:03 a.m. Chairman Price Dobernick, 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, 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: Heidi Brown, Scott Horgan, Scott Keith, Jennifer McFatridge, Paul Ntoko,
Tristan Wright, Ashley Proper-Lansing Entertainment& Public Facilities Authority; and Jack
Alexander.
III. ESTABLISHMENT OF THE AGENDA: No changes.
IV. PUBLIC COMMENT: No public comment.
V. APPROVAL OF JUNE 18, 2019 MINUTES:
Chairman Price Dobernick requested a motion for approval of the minutes as published.
MOTION: Commissioner Leatherwood
SECOND: Commissioner Bowen
Motion unanimously carried.
VI. REPORTS:
A. CHAIRMAN'S REPORT: Chairman Price Dobernick and Scott Keith extended their thanks and
appreciation to past Board of Commissioner Chairwoman Cindy Bowen on behalf of the LEPFA
Board of Commissioners and staff for her leadership over the past year and presented her with thank
you gifts and a plaque.
At 8:06 a.m. Chairman Dobernick exited the meeting and Vice Chair James Stajos chaired the meeting.
B. FINANCE COMMITTEE:
1. June 2019 Draft Financials: Jennifer McFatridge,Vice President Finance presented the
following draft June financials,the reports for June are in draft format until the conclusion of
LEPFA's annual audit in October and are draft pending any changes:
a. Groesbeck Golf Course: June operating revenue is up compared to budget for the month and
year to date. Last year at this time, we were in our sixth month of managing Groesbeck. Green fees,
cart rentals, and concessions are up more than 11% compared to last June. Leagues began in April
and their revenue is reflected on the financials moving forward. Monthly operating expenses are up
compared to budget but are down compared to budget for year to date.
LEPFA Board of Commissioners Meeting
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August 27, 2019
Categories providing the largest impact to the June budget include fringe/related costs, maintenance
of facilities and food and beverage. Fringe/related costs adjustments to the fiscal year 2020 budget
were necessary in order to have a better target. Maintenance of facilities expenses are related to
ground supplies and irrigation repairs. Finally, in the category of food and beverage the expense is
related to concessions labor and cost of goods purchased.
b. Lansing City Market: There will be no financial statements reviewed at this meeting because
LEPFA no longer receives a City of Lansing subsidy as of July 1, 2019. June operating revenue is
up compared to budget for the month and year to date. Building revenue is down by 11%
and operating revenue dropped by 2 1% compared to the prior year. Overall, operating
expenses are up compared to budget for the month and year to date. The category
providing the largest impact to the budget is professional services with 96% of the expense
allocated to legal fees, The Market will continue operating using the remaining minimal
reserves. City Market financials will continue to be reviewed and discussed in finance
committee monthly meeting only.
c. Cooley Law School Stadium: Operating revenue at Cooley Law School Stadium typically
comes from the concourse ATM machine. Monthly revenue is down compared to budget
and for year to date. Overall, operating expenses are down compared to budget for the
month and year to date. The category providing the largest impact to the June budget was
utilities. The Stadium is now equipped with"smart meters"to provide accurate utility
usage. There were eleven(11) home Lugnuts games, two (2) Ignite matches, in addition to
use of The View and activities held at the stadium. Also impacting the year to date budget
is the category"maintenance of facilities." Repairs as previously discussed include:
repairs to breakers in the Pepsi Porch as well as Chevy Terrace; and repairs to light poles,
HVAC units, perimeter fencing and elevators.
d. Lansing Center: June year to date operating revenue decreased compared to last year by more
than $800,000 or 13%. June monthly revenue is down compared to budget and year to date. June events
included: Small Business Association of Michigan, Michigan Health Information Network, and Michigan
Department of Health and Human Services. There were two (2) large events in June 2018 that accounted
for nearly $185,000 of overall revenue. Michigan Department of Environmental Quality and Michigan
Department of Education were not here in June 2019. Overall, there were thirteen (13) events in June
2018 that did not repeat in June 2019 accounting for nearly$145,000 in food and beverage, $82,000 in
equipment rental and $32,000 in rent. In June of 2019, there were fourteen (14) events that did not occur
in June 2018, capturing nearly $59,000 in food and beverage, $27,000 in equipment rental and$21,000 in
rent. Overall, operating expenses are up compared to budget for the month and year to date. Categories
impacting the June budget include professional services, marketing and events. In professional services,
expenses consist of legal service,payroll upgrade to LEPFA's financial reporting system and the facility
audit. In marketing, the expenses are related to the facility audit, and travel expenses for the Honeywell
trip. In event expenses, nearly half of the expense is AV supplies (laptops, projectors, etc.). Unearned
revenue-advance rent increased compared to last month and remains strong when compared to the last
two (2) fiscal years. At the end of the fiscal year, the Lansing Center captured 99% of the revenue budget
and expenses finished at 101% of the budgeted amount.
Commissioner Cindy Bowen asked if the significant business loss was to another community and was it
based on competition sets and rotation. Scott Horgan noted the majority of business lost was part of a
rotation. Horgan noted rent was behind budget by $200,000 at beginning of the year, and 80% was
replaced and this year we are back in the cycle and have replaced business so that this doesn't happen
LEPFA Board of Commissioners Meeting
Page 13
August 27, 2019
again. The Sales team and the GLCVB have reviewed and we need to replace$170,000 in rent shortfall.
In late April we added additional elements to our contract on the food and beverage side (minimums and
cancellation fees). Commissioner Bowen asked if May/June included a marketing campaign? Scott
Horgan explained sales targeted the corporate market, which was disappointing—but as a result we are
learning more about marijuana side of the corporate market. The LAURA Mid-West conference will be
here in January, and we will be looking at the marijuana industry. The sales team attended a good Org
Pro Meeting and had good networking with associations and in terms of long-term business they made
connections with associations. Scott Keith also commented that in June 2018 State of Michigan agencies
spent more on food costs, and we saw bump in State groups at the end of June of 2018 compared to June
2019. Commissioner Barron verified we knew the bump was coming, and we tried to replace the
business. Scott Horgan noted we knew what we were going into, and the ultimate goal is to move into
future years minimizing the cycle and finding groups for the cycle. He also noted going into the year we
were down 20% as anticipated and were able to replace 15%. Commissioner James Butler noted there
will be no report on City Market after today and questioned why? Scott Keith clarified there is no longer a
budget affiliated with the City Market and City Market information will continue to be shared in the
Finance Committee; currently the utilities have been transferred to the City. Scott Keith stated that the
Waterfront has appealed to the Supreme Court and the City has taken over expenses.
Vice Chairman Stajos requested a motion to accept the June 2019 Financials in Draft pending LEPFA's
Audit for the Lansing Center, Groesbeck Golf Course, Cooley Law School Stadium; the Lansing City
Market be received as published and further that the monthly expenses for each entity be accepted.
MOTION: Commissioner Barron
SECOND: Commissioner Mickens
Motion unanimously carried.
2. July 2019 Financials: Jennifer McFatridge, Vice President Finance presented the following July
financials:
a. Groesbeck Golf Course: July operating revenue is up compared to budget for the month and
year to date. Green fees and cart rentals are up more than 4% compared to last July. Concessions
revenue has increased more than 21% compared to last July with beer sales accounting for 55%
of the revenue. Operating expenses finished up compared to budget for the month as well as year
to date. Categories providing the largest impact to the July budget include marketing and food
and beverage. For Marketing the expenses are related to advertising to promote the course, For
food and beverage, while the July budget increased 25% over last year, the expenses related to
concessions labor and cost of goods purchased confirm the budget increase wasn't sufficient.
b. Cooley Law School Stadium: Operating revenue at Cooley Law School Stadium is from the
concourse ATM machine. Revenue is down compared to budget for the month and year to date.
Overall, operating expenses are down compared to budget for the month and year to date.
Impacting the July budget was utilities due to the use of smart meters at the stadium. Electric was
up 33% compared to last year, while water was up 94% compared to last year. July weather was
drier and hotter, requiring increased water for turf and cooling for the offices and meeting spaces.
There were twelve (12) scheduled home Lugnuts games, three (3) scheduled Ignite matches, in
addition to scheduled use of The View and activities held at the Stadium.
c. Lansing Center: July year to date operating revenue increased over last year by more than
$40,000 or 18%. July revenue is up compared to budget for the month and year to date. Events
LEPFA Board of Commissioners Meeting
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August 27, 2019
that occurred in July included: MYWAY (Wrestling), Crest Pontoon Boats, Triton Industries
(Manitou Pontoon Boats) and Greater Lansing Area Sports Hall of Fame. Nine(9) events
occurred in July 2018 that did not repeat in July of 2019, for a nearly$30,000 loss in food and
beverage, $10,000 in equipment rental and$13,000 in rent. Operating expenses finished up
compared to budget for the month and year to date. Categories providing an impact to the July
budget include marketing, events and food and beverage. In Marketing,the expenses are related
to the facility audit and travel expenses for the annual Venue Connect Conference with IAVM.
In Event expenses,more than 50% of the expense is AV& event supplies (laptops, projectors,
etc.). For Food and Beverage, a good portion of the expense each month is tied to fixed salaries
and wages for full-time staff. We also incurred an increase in wages for staff that are covered by
the UAW contract effective July 1. Unearned Revenue-Advance rent increased compared to last
month; and remains strong compared to the last two fiscal years. This is the highest amount
advance rent has been and is attributed to the efforts of the Sales Team. At the end of the first
month of the fiscal year,the Lansing Center has captured 4% of the revenue budget and contained
expenses to 7% of the budget.
Scott Keith noted July had the right mix of events,which is critical, and we are ahead of budget; however,
August does not look good. Our concern is pre and post Labor Day school start dates consistency which
impacts business/people hosting events. Scott referenced an article regarding how the start of school is
affecting all business, the work force and tourism; and it does impact us when there isn't
consistency. Vice Chair Stajos noted he sees the impact in his industry/business as well with the
legalization of fireworks, it was a booming Labor Day business and has died out now.
Vice Chairman Stajos requested a motion to accept the July 2019 financial statements for: Lansing
Center, Groesbeck Golf Course, Cooley Stadium, be received as published and further that the monthly
expenses for each entity be accepted
MOTION: Commissioner Barron
SECOND: Commissioner Leatherwood
Motion unanimously carried
C. PRESIDENT & CEO: Scott Keith, LEPFA President& CEO reported the following:
1. Ashley Proper— Scott Introduced Ashley.
2. Facility Audit—Board members in need of a copy of the audit may contact Scott Keith. The
current version is a first draft, pending a meeting with Tristan Wright and the consulting agency.
Scott indicated he felt they did a great job on IT and AV analysis; next they will focus on
prioritizing, costs and highlighting trends with estimation of costs.
3. Creative Placemaking Summit: LEPFA has a table and we are a sponsor. It is a great one day
event.
4. House Bill 4816—This bill is to provide funding based on assessments to hotels in a county
(including Ingham) and applies to LEPFA. Scott noted we have made suggested changes -i.e, include
funding to cover operating costs. The purpose of the Bill is to fund an arena in downtown Kalamazoo.
Scott noted the language is confusing regarding bureaus and funding which may be an error in writing
of Bill. Scott noted he has a meeting scheduled after Labor Day to discuss the Bill.
5. Rotary Park- September 1 Oth is the Grand Opening which is being promoted by Delta Dental.
The Grand Concert Series was moved to same date. It will be a public event, Brenda Loomis Band will be
performing at the grand opening. Delta Dental has asked about using our liquor license; Scott Keith
introduced them to Waterfront. Commissioner Barron commented it was the right thing to do.
6. Golf Outings—Scott noted this year we participated in the Capital Area Credit Union Association
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August 27, 2019
golf outing which supports the Davies Project. He noted he is sharing this because the credit union
was pleased to see LEPFA participate. Scott also discussed their fourth player,Mr. Earl Anderson;
a retired teacher and counselor who also helped integrate African Americans into Big 10 Football.
Scott noted it was a good experience.
8. Branding Meeting—Scott reported there was great dialog, questions, discussion, and the
conversation was more in-depth regarding the logo discussion REV—to including Lansing and should
the"E"represent events or entertainment.
At 8:47 a.m. Commissioner Cindy Bowen exited the meeting.
There was great dialog and discussion, which lead to a better understanding. Scott noted he will have a
plan in September and estimated costs.
9. Liquor Control: LEPFA has worked with Pat Gagliardi, who was recently appointed Chair of
State Liquor Control Commission and therefore we no longer can work with him on liquor control.
10. Chase Creative: Scott noted they have been sold, and we have discussed the contract changes
with our attorney as pertains to our contract and he sees no issues. Tony Bento, from Ann
Arbor is the new owner. He plans to keep the current staff here and Ben will stay on for one year
and our contract has two (2)years remaining.
D. PERSONNEL COMMITTEE: A meeting is scheduled for Thursday to discuss the President&
CEO's contract; a draft will be forwarded to the Personnel Committee and will be review on Thursday.
E. STRATEGIC PLANNING COMMITTEE: Vice Chair James Stajos appreciated that the House
Bill was picked up that it included Lansing and may offer major funding.
F. VICE-PRESIDENT & STAFF REPORTS:
1. Jennifer McFatridge—Vice President Finance: No report.
2. Scott Horgan—Vice President Sales & Service: Groesbeck is doing extremely well; the course
looks good. He noted he is receiving positive feedback daily on the course, from people who have not
golfed there in years. All categories are up, and we are starting High School play again, with two of our
own tournaments in September. League play is up, and we are excited. Outdoor golf will be wrapping up
in October and the second season of simulator will follow. The Lansing Center had a big win this week
with MYWAY wrestling, and they confirmed for the next three (3)years, which was a community effort
with the event moving to the weekend before Christmas. Scott Keith noted they will now be here three
times per year for three (3)years which will impact tourism, with people coming in from all over the
country. This week the FRIB Conference will be in house and is a global event. North American Particle
Conference-FRIB—is here for ten (10) days, and they start arriving on Thursday. Scott Keith noted the
challenge is a third-party group that is very challenging to work with. It is a great learning process for our
team. Vice Chairman Stajos noted that Groesbeck was impressive last year; this year is impressive as we
are meeting and exceeding marks. Scott Horgan noted the outings and walk ups helped. Commissioner
Mickens asked if there is anything being done to get people who are golfing now to the simulator. Scott
Horgan noted they have extended an offer so gofers could see and have captured lot of interest but need to
find our niche for morning golf.
3. Tristan Wright—Vice President Operations: noted Tom Stouffer is doing very well at Groesbeck
with the season coming to an end. Tristan noted Lansing Center projects include: C2A8 looking at
the balcony area and we will likely work with them; we are replacing a cooling tower over Hall C in
September or October,which will be a big project which will need to be done when air conditioning
is not needed. September 10 will be the last of the Grand Concert Series, and Mindy is doing a great
job. The nets will come down at Cooley Law School Stadium in September and the fountain
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August 27, 2019
will be down as well. A Gospel Event was held for the Grand Concert Series with 350 attendees.
Saturday was Harry Potter night at Lugnuts with 10,000 fans,many dressed up.
The Ignite are in first place and may make play offs; with a September 24 friendly match vs Chicago Fire
and they are looking for a huge turnout.
The Cross-Town Showdown is scheduled for September.
4. Paul Ntoko-VP Foodservice: Groesbeck Friday promotions are doing well. NUWAY was a busy
event and Paul noted they have hired George Wills who started last month and his first week was the
week of Common Ground. Paul noted they are looking forward to strong September.
5. Heidi Brown—Vice President Administration: Heidi recapped the current list of vacant positions,
the Monthly Employee Leave and Employee Referral Program numbers. Heidi reported the Worker's
Comp claims and noted that LEPFA has changed providers to Accident Fund effective July 1. Staff
Evaluations are due by September 13 to the President& CEO and coordinated job description changes.
Heidi noted interviews for full-time positions have been completed and filled for the Foodservice
Supervisor, Administration Assistant, and interviews are in progress for the Operations Services
Coordinator and Floating Foreperson. The annual LEPFA Flu Shot Clinic is scheduled for September 25,
2019. Planning is underway for the United Way Campaign and the LEPFA Healthcare Committee will
meet in September with Brogan Reed VanGorder and Associates regarding our January 1 benefit renewal.
VII. COMMISSIONER& STAFF COMMENTS:
1. Brian McGrain noted that Cathleen Edgerly is the new Downtown Inc. Executive Director. She
is from Howell Mainstreet, formerly with CATA, and he noted we are excited to have her back in
area. James Butler questioned the changes for the Mayor's Chief of Staff and Brian explained that
Samantha will be working on special projects, but questions should be directed to Samantha,
2. Commissioner Tim Barron commented that he liked the added conversation today and likes the
less formal feel and appreciated leaving today's meeting as an updated
commissioner. Commissioner Barron noted Paul mention beer sales, and increased worked
Groesbeck, and asked if staff TIPS and TAM certifications are current and on-going to ensure we
have no issues. Paul noted things are in place and we are hyper vigilant. Paul Ntoko noted that
are there are certified members and to-date we have had no issues and we have trained staff and
getting one of our own team members to be a certified trainer. The increased volume is a result
of more people coming through the course now, resulting in more sales. Paul explained the
Friday special includes beer and they are up 50% - 60%. Brian McGrain questioned if we are
fully insured at Groesbeck and Scott Keith noted Groesbeck has their own insurance.
3. Scott Keith extended a thank you to Commissioner Stajos for new fireworks contact for Silver
Bells; the contact grew up in Lansing and is excited to be a part of Silver Bells. Tim Barron
reflected on his part in broadcasting music to fireworks in the 90s Q 106, all automated. Music
will be added to Silver Bells fireworks. Vice Chair Stajos clarified the provider offers
professional fireworks, which is not a part of his business.
VIII. OLD BUSINESS: No report.
IX. NEW BUSINESS: No report.
X. ADJOURNMENT: At 9:33 a.m, the meeting was adjourned.
MOTION: Commissioner Butler
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August 27, 2019
SECOND: Commissioner Barron.
Motion carried.
THE NEXT MONTLY MEETING IS SCHEDULED FOR:
SEPTEMBER 24,2019 at 8:00 a.m.
LANSING CENTER—GOVERNOR'S ROOM
Respectfully submitted,
Heidi K. Brown, Recording Secretary
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
BOARD OF COMMISSIONERS MEETING
MINUTES
September 24, 2019
At 08:03 A.M. Chairman Price Dobernick, 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, Shelbi Frayer(Ex-Officio), Cindy Bowen, Eric Brewer,
James W. Butler III, Price Dobemick, Charles Janssen, Larry Leatherwood, Brian McGrain (Ex-
Officio), Charles Mickens.
Commissioners Excused: Angela Bennett (Ex-Officio), James Stajos.
Others Present: Heidi Brown, Scott Keith, Jennifer McFatridge, Scott Horgan, Melissa Zemer,
Tristan Wright, Paul Ntoko, Ashley Proper—Lansing Entertainment & Public Facilities
Authority; Jim Smiertka—City of Lansing—City Attorney's Office; Councilman Jeremy Garza,
Jack Alexander.
I. Establishment of the Agenda: No Changes.
II. Public Comment: No Public Comment.
III. Approval of August Minutes:
Chairman Price Dobernick requested a motion for approval of the minutes as published.
Motion: Commissioner Barron
Second: Commissioner Mickens
Motion unanimously carried.
IV. Reports:
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September 24, 2019
A. Chairman: Chairman Price Dobernick reported that his goal is to revamp the
personnel process.
B. Finance Committee:
1. August 2019 Finance Report: Jennifer McFatridge, Vice President of
Finance reported the following:
a. Groesbeck Golf Course: August operating revenue continues to
have a positive performance. August revenue is up over last year
and to budget for the month as well as year to date. Season passes
and League funds were allocated and will finish up in September.
Green fees and cart rentals continue to have positive growth being
up more than 29% to last August. August concession sales are up
36% to last year with beer sales accounting for 56% of that
number. Finally, in August there were more than 5,300 rounds of
golf played at the course. Overall, operating expenses finished up
to budget for the month as well as year to date. Categories
providing the largest impact to the budget include: Food and
Beverage, Maintenance of Equipment, and Maintenance of
Facilities. In the category of food and beverage, the expense is
related to concessions labor (21%), and the cost of goods
purchased (31%). In maintenance of equipment, there were several
repairs to small engines that are used to maintain the course.
Finally, the maintenance of facilities expenses are related to
maintaining the grounds (Harrells, Residex). At the end of August,
excess revenue over expenses is ahead of budget.
b. Cooley Law 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 and
year to date. We will review the fiscal year 2021 budget amount
for the ATM as the use of debit/credit cards is greater than
withdrawing cash from an ATM. Overall, operating expenses
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September 24, 2019
finished down to budget for the month and year to date. In the
category of salaries/wages, the expense this year is greater than the
prior year. We changed the allocation of Lansing Center labor to
the Stadium to reflect positions that impact the Stadium operations.
The category providing the largest impact to the August budget
was utilities. When the fiscal year 2020 budget was created, we
planned for a 20% increase in usage with an unknown factor of
how the Ignite matches would impact utility usage. We will
continue to monitor this as the year progresses, with a plan to
increase the utility budget again as our plan isn't meeting actual
numbers. The installation of smart meters is providing accurate
utility usage. Electric was up 29% ($4410) to last year while water
was up 182% ($3410) to last year. There were seventeen (17)
scheduled home Lugnut games, two (2) scheduled Ignite matches,
in addition to scheduled use of The View and activities held at the
Stadium.
c. Lansing Center: August year to date operating revenue decreased
from last year by more than$230,000 or 40%. August revenue is
down to budget for the month and year to date. A few events that
occurred in August include: Michigan Association of Intermediate
Schools, Choice Schools Associates and Michigan Community
Service Commission. Overall, there were 10 events that occurred
in August 2018 that were not re-booked August of 2019
accounting for more than $220,000 in rent, food and beverage, and
equipment rental. In August of 2019, we have seven (7) events that
are new or extra events that did not occur in August 2018,
capturing more than $52,000 in rent, food and beverage and
equipment. Overall, operating expenses finished down to budget
for the month and year to date. Categories providing an impact to
the August budget include utilities, maintenance of equipment and
supplies/materials. In Utilities, the majority of the excess is related
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September 24, 2019
to steam. Steam was up more than$15,000 to last year. This
increase was noticed in our July financials as well. The
maintenance team reviewed our meters and determined that one
meter had radiate heat running on the Riverwalk concourse due to
a cool space temperature along with two (2) roof top valves not
closing. We also had two (2) meters with defective controllers that
allowed heat convertors to overheat past the set point, therefore
using extra steam. Unearned revenue-advance rent has increased
when compared to last month; remains strong when compared to
the last two fiscal years. At the end of the second month of the
fiscal year, the Lansing Center has captured 6% of the revenue
budget and contained expenses to 14% of the budget.
Commissioner Leatherwood stated he was satisfied with the August financials and
is very impressed with Jennifer and her team.
Chairman Price Dobernick requested a motion to accept the August Financial
Statements for: Lansing Center, Groesbeck Golf Course, and Cooley Law
Stadium.
Motion: Commissioner Barron
Second: Commissioner Leather-wood
Motion unanimously carried.
C. President & CEO: Scott Keith, LEPFA President & CEO reported the
following:
Board Picture: We'd like to start a new tradition of getting a picture of the
Board. We would like to do it at the next board meeting. Please let us know if
you will not be able to attend so we can plan a different day.
LEPFA Board of Commissioners Meeting
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September 24, 2019
House Bill 4816: Representative Iden is putting the bill before the committee
and we will have a determination later today. Our team wanted to know before
they put the bill before the committee, because we suggested some changes and
wanted to see if they made them or not. This bill could potentially generate a
good amount of funding for us. We are planning on attending the hearing, but we
are not sure if we will speak or not.
Commissioner Cindy Bowen and City Attorney Jim Smiertka entered the
meeting at 8:15 a.m.
County Hotel Tax: Met with the county commissioners to make some changes
on the current county hotel tax. The Mayor, Mr. McGrain, and Mr. Keith are
working together to make changes and find ways to produce more funding.
Lansing Center: The team is working on the cooling tower in Hall C. We will
be replacing it November—December when we will not need air conditioning.
The team is also working with a firm in Chicago to review the facility audit that
they completed. Mr. Keith did share if any of the Board members would like a
copy, he does have one. Currently working through employee evaluations. This
year we are looking at emphasizing on measured outcomes, and just outcomes.
Groesbeck Golf Course: We are continuing to make improvements at the golf
course. We are upgrading the aeration systems. The team is currently getting bids
for the asphalt repairs that need to be completed. We are still looking a budget to
replace the pavilion.
Cooley Law Stadium: Mr. Keith reported that we are always trying to stay
ahead of the safety curve. One thing we are looking at is adding netting around
the whole stadium to help prevent injuries. We need to start putting "seed"
money away for turf replacement. We have to replace the turf every 5-10 years
and it does cost $100,000 - $150,000.
City Market/Waterfront: The MI Supreme Court has denied the motion from
Waterfront. Waterfront is not filing a motion to reapply. They have reached out
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September 24, 2019
to our attorney to figure out a move out day. Scott said he is okay with a move
out day of October 25, 2019 but we need to have documents in place.
United Way: The United Way is having their 100-year anniversary Gala. It will
take place on October 19, 2019 at the Michigan History Museum.
D. Personnel Committee: Commissioner Janssen reported that the main task of
this committee is to renew Mr. Keith's contract. Commissioner Janssen shared a
bit about Scott Keith. Scott started with LEPFA in 2001 he was the Operations
Manager. In 2010, Mr. Keith was named interim President. In 2011 Scott Keith
became the President & CEO for LEPFA. Since becoming the President & CEO
he has operated under that same contract. Commissioner Janssen said that the
team is looking at the many changes within the organization and the team would
like to make some changes to the contract. The committee did do some research
and looked at comparable salaries in the industry. Commissioner Janssen did
share that he has a draft of the new contract. When the committee meets on
October 17, they will review it and finalize it. The goal is to present it at the next
board meeting.
Commissioner Barron asked how long is Mr. Keith's contract?
Commissioner Janssen replied that the contract is historically one year long, but
they would like to make a change to a three (3) year contract.
E. StrateLxic Planning Committee: Scott Keith reported on behalf of
Commissioner Stajos, the committee has rescheduled the meeting for after the
facility audit on Thursday. The focus of the meeting will be on the facility audit.
F. Vice-President & Staff Reports:
1. Jennifer McFatridge—Vice President of Finance: Reported that the
next board meeting is during audit week. Commissioner Bowen they will
need to speak with you after the meeting.
LEPFA Board of Commissioners Meeting
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September 24, 2019
2. Scott Horgan—Vice President of Sales & Service: Reported that the
Golf Course is doing fantastic. We fell just short of exceeding our total
rounds by 1,000. All the Leagues are wrapping up over the next couple
weeks. We will be opening the simulator on October 18. Greg Webber
and I will be presenting the simulator plans to Scott Keith next week. So
far, we have had a lot of attraction to the simulator. A lot of people are
very happy with our course and feel safe there. Many customers have
said that they are very confident in what we do versus what other courses
are doing. Our goal is to focus on finding a group that likes to golf early
in the morning. One major compliment we have received is on the new
entrance to the course. It has really helped with some of the speeding and
traffic issues. In Sales we just launched our campaign for the holiday
season. We have booked three Christmas parties in a week and a half. As
a team we are going to be looking at how groups fall in rotation as well as
a more strategic way to budget. We will be working alongside Finance on
how we budget for large groups.
There was great discussion and dialogue on how booking looks in our system and
how the financials currently work. There was also discussion on what would work
and what some goals should be moving forward.
3. Tristan Wright—Vice President of Operations: Reported that The
Lugnuts have completed their season. There is a Rugby match on the 27th at
the ballpark. The Ignite has a match tonight. Once the Ignite finishes up their
season the facilities team will continue with the winterization of the Stadium.
As Mr. Keith mentioned one of our cooling towers in Hall C will be replaced
in November - December. The challenge we had with this was finding an
exact window of time where we didn't have a completely full building, and
when we wouldn't need to have the air conditioning on. We are going to be
working with C2AE on the replacement of the Riverside Balcony. A section
of the balcony is failing, and we need to fix it. C2AE will be cutting open the
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September 24, 2019
slab to look at what we need to fix, and we will go from there. This is
something that happens over time with the weather, and the natural elements.
For reference this will be like the work completed back in 2014-2015,just an
expansion. We have closed off that section of the balcony, but it is accessible
in case of an emergency.
4. Paul Ntoko—Vice President of Food Service: Reported that the food
service department is having a fantastic September so far. We are having a
hard time with the part-time on call workers due to the nature of the hours. We
are finding it most difficult in the early parts of the day or in the later parts of
the day. One thing the team is going to start doing is adding an extra cost to
our services to cover any last-minute changes made. The Lansing Center has
donated 12,000 pounds of food to the Food Bank. Chef is doing everything he
can to make sure we waste as little as possible. Over the next few weeks the
team will begin to reduce the inventory at Groesbeck, due to the season
wrapping up.
5. Heidi Brown—Vice President of Administration: Reported that we are
currently at 130 accident free days. Our current record is 296, and we are
hoping to break that record! We have started the collective bargaining
agreement renewal, but we had to put a hold on it due to the UAW/GM Strike.
The final employee evaluations are underway. We are hosting the annual Flu
Shot Clinic tomorrow for our staff that are covered by our PHP insurance. The
annual United Way campaign is being reviewed and underway. Natalie
Glisson and Jennifer McFatridge are partnering together to make this event
very successful. The Health Care Committee will be meeting on October 7, at
2:00 P.M. with the goal of renewing our benefits. Natalie Glisson attended a
job fair at MSU to try and recruit employees to help with the shortages we
have.
V. Commissioner & Staff Comments:
1. Chairman Price Dobernick wanted to thank Brain McGrain, and Councilmen
Garza for attending the meeting.
LEPFA Board of Commissioners Meeting
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September 24, 2019
2. Commissioner Charles Janssen extended his thanks to the LEPFA staff for
keeping the Board prepared and updated.
3. Tristan Wright informed the group that the Board Holiday Party planning has
begun. The party will be on December 12 from 5:00 P.M. — 8:00 P.M. in the
Riverstreet Pub (Lansing Center). Save the dates will be coming out soon, and the
formal invite will follow.
VI. Old Business: None to report.
VII. New Business:
Commissioner Brian McGrain introduced Shelbi Frayer. Shelbi is the new Chief Strategy
Office and is also acting as the interim Finance Director. This is her fifth official week
with the City. Within those five weeks her role has shifted. Shelbi was with Michigan
Department of Treasury before she came on board with the city.
VIII. Adiournment: At 8:46 A.M. Chairman Price Dobernick motioned for the meeting to be
adjourned.
Motion: Commissioner Barron
Second: Commissioner Butler
Motion unanimously carried.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR:
OCTOBER 22, 2019
8:00 A.M.
LANSING CENTER—GOVERNOR'S ROOM
Respectfully Submitted,
Ashley Proper, Recording Secretary
Lansing Entertainment and Public Facilities Authority
Board of Commissioners
Meeting Minutes
October 22, 2019
At 08:04 a.m. Vice Chairman James Stajos, 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: James Stajos, Tim Barron, Charles Janssen, Larry Leatherwood,
Charles Mickens, James W. Butler III, Shelbi Frayer (Ex-Officio), Eric Brewer(Ex-Officio)
Commissioners Excused: Brian McGrain (Ex-Officio), Price Dobernick, Cindy Bowen
Others Present: Scott Keith, Jennifer McFatridge, Mindy Biladeau, Tristan Wright, Paul Ntoko,
Scott Horgan, Heidi Brown, Ashley Proper—Lansing Entertainment & Public Facility Authority,
James Smirtkea— City Attorney, Jack Alexander—Public.
I. Public Comment: No Public Comment Was Made.
II. Establishment of the Agenda: Vice-Chairman James Stajos requested that we go out of
order on the Agenda since we did not have a quorum.
III. Reports:
A. President & CEO: Scott Keith, LEPFA President & CEO reported the following:
LEPFA Board of Commissioners Meeting
Page 12
October 22, 2019
Ignite: Yesterday, Tim Dickson, team owner addressed the media regarding The Ignite folding.
It was not a player decision it was simply a financial one. The Soccer League has higher fees to
play than baseball does. The Financial model is very different when compared to the Lugnuts.
There has been much discussion regarding the costs to convert the field, as well as what will
happen with the equipment that was purchased. The cost to convert the field was minimal
compared to some of the overall costs. The Turf equipment that was purchased costed $150,000
The Convention &Visitors Bureau paid approximately $100,000 of that. Much of the equipment
that was purchased can be used by the stadium. The equipment that cannot be used we are
looking at if it can be used elsewhere in the City. If it cannot be used, we will sell some of it
back.
Commissioner James W. Butler II & Commissioner Charles Mickens entered the meeting
at 8:08 a.m.
Commissioner Barron asked if we can use any of the equipment at Groesbeck?
Mr. Keith replied that we are going to hang on to all the equipment for now and decide later
where it will go to.
Shelbi Frayer asked if the Convention&Visitors Bureau is asking for any of the money back?
Mr. Keith replied that they have not asked for any of the money back as of yet.
Manor League Baseball and Minor LealZue Baseball Contract: Mr. Keith shared an article
regarding the Major League Baseball and the Minor League Baseball Contract. The contract is
up for negotiations. It appears that the Major League has decided to cut ties with some of the
LEPFA Board of Commissioners Meeting
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October 22, 2019
Minor League teams. It does not appear it will affect us, but it is something that we will be
keeping an eye on.
Greater Lansing Convention and Visitors Bureau: It has not been made public knowledge yet
but Jack Schripsema the President & CEO of the Greater Lansing Convention and Visitors
Bureau, announced his retirement yesterday. He has shared that he is planning for late February
to make his departure. He has expressed that he is committed to helping with the upcoming
funding changes.
Groesbeck Golf Course: We received a letter from a current long-time customer of Groesbeck.
In the letter this individual expressed some of his concerns, as well as gave some suggestions to
what he'd like see change at the course. Scott Horgan did speak with the individual, but we will
be sending him an official letter. Some of the items he had requested are just not feasible, and
others we are already working on.
Waterfront: Waterfront is officially out today. Our attorneys will be receiving the keys. Tristan
and team will be doing a walk through with the City staff and start working on the changes.
Waterfront did leave some items behind that we will have to work with them on to obtain them.
Commissioner Barron asked about what will occur with the cameras at the market.
Mr. Keith replied that they are our cameras and they will stay up till a plan is in place for the
building. When those cameras come down, we do have a couple on the Lansing Center that can
see over to the Market.
Branding: Mr. Keith stated that he has been working on finalizing this branding piece. Mr.
Keith stated that he will be compiling a list of all items we will be branding with. We are
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October 22, 2019
working with the City on the timing of when to launch this. Currently looks like early January
will be when we start the full rebranding.
Funding: Currently working with the County Administration on funding. We are evaluating if
LEPFA should receive funding directly instead of the money going to the Convention and
Visitors Bureau and then LEPFA receiving it. Mr. Schripsema has agreed it is a good change and
has proposed that we should do it gradually instead of all at one time.
House Bill 4816—The bill did pass in the Commerce and Tourism Committees. Representative
Iden did acknowledge that he will need help from Lansing's Capital Caucus. This bill will more
than likely pass the Ways and Means Committee with some revisions. The group did make some
changes to the perimeters of the bill to include our operations amendment and to include
Muskegon.
Facility Audit: As a team we continue to work with Christman Constructors on the Facility
Audit Review. The grand number to update and improve this building is right around $41 million
dollars. We have decided to break the renovation up into phases. The first phase is going to cost
$19 million dollars. We noticed that there were some things duplicated and or missing in their
review. Once we have a plan in place, we will have someone from their team come and present
to the Board.
International Alliance of Theatrical Stage Employees (IATSE): We have a tentative
agreement with the IATSE team. We have begun the collective bargaining review. Ryan Tess
and Jennifer McFatridge are working on the updates.
United Auto Workers (UAW): We have signed an extension agreement with the UAW. We
had to do this due to the team being involved in the UAW & General Motors strike.
LEPFA Board of Commissioners Meeting
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October 22, 2019
Health Care Committee: The team met with our broker. We received two proposals back one
from PHP that came in with a 6% increase. Blue Cross Blue Shield numbers came in with a 13%
increase. We are still waiting on McLaren's proposal to come in before we make any choices.
The reason for some of the increases is in part with the affordable health care act tax being
added. Our renewal for our contract is January 1.
IV. New Business: Silver Bells—Mindy Biladeau presented the board with the Silver
Bells Commercial. This is the first year that LEPFA officially oversees Silver
Bells. Mindy stated that this is her 9th year coordinating the event. This is the
cities official launch to the holiday season. The theme this year is a throwback to
1984. The main feature is the Electric Light Parade. This year the parade has 81
units and is completely full! Mindy shared that today a press release will go out
on whom our Grand Marshalls are. This year we wanted to do a throwback and
invited two former Detroit Tigers World Series winners Dan Petry and Dave
Rozema. We will also feature Michigan State University's mascot Sparty and The
Detroit Tigers mascot Paws. After the parade we will have the tree lighting. This
year the tree was donated to the City by the Wolfenberg family and is coming all
the way from Iron Mountain. During the lighting of the tree the famous Ben
Sharks will be preforming. This year with help from Mr. Stajos we have partnered
with a new company to bring back the Firework show. This year it will be eight
(8) minutes long and it is expected to be the best it has ever been in the past.
There will be a live Concert at the Lansing Center featuring the Mega 80s and
Tiffany. People are super excited. Silver Bells Village is going to be so packed
with new vendors this year. New this year is Michigan Lottery; they will have
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October 22, 2019
mobile vending. We have Hudsonville Ice Cream that will be giving out 2,000
samples of peppermint ice cream. Toyota will have a huge presence in the village
as well. For the commemorative ornament we have partnered up with La Fille
Gallery to create a special piece. The Stone for the ornament commemorates the
35-year anniversary and since it is the 351h anniversary of Silver Bells we thought
it would be perfect. Customers can purchase it online or on the night of Silver
Bells. There will be multiple Live Broadcasts. We had 52,000 households tune in
last year to watch the show. It is an Emmy award winning program. We have
Fox47 to make the broadcast happen. The Silver Bells 5k is in its 9ffi year. It
started out with 100 runners. Our goal this year is 1,255 runners. The race starts at
9:00 a.m. in front of the state tree. Brunch with Santa is Sunday at Troppo at 8:00
a.m. —2:00 p.m. The community and economic impact is huge. People travel all
over and that generates revenue.
Commissioner Stajos asked about who airs the commercial and who pays for it
all?
Mindy Biladeau stated that we pay for very little advertising. This year one of our
new partnerships is with Comcast. Our cost is very minimal for coverage. Free
advertising from our partners. We will have television coverage on 20 different
stations. Between raising funds and donations most things are donated or privately
funded.
LEPFA Board of Commissioners Meeting
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October 22,2019
V. Approval of August Minutes: Vice-Chairman James Stajos requested a motion for
approval of the minutes as published.
Motion: Commissioner Butler
Second: Commissioner Barron
Motion unanimously carried.
VI. Reports:
a. Chairman: Vice-Chairman James Stajos stated he did not receive a report from
Chairman Dobernick.
b. Finance Committee:
Commissioner Larry Leatherwood stated that the Finance team did meet and
reviewed everything, and we have a great report to present.
September 2019 Finance Report: Jennifer McFatridge, Vice President of Finance
reported the following:
a. Groesbeck Golf Course: September operating revenue continued
to have a positive performance. September revenue is up over last
year and to budget for the month as well as year to date. Season
passes and league funds finished up this month. September
concession sales are up 28% to last year with beer sales accounting
for 50% of that number. Finally, in September there were more
than three thousand (3,000) rounds of golf played at the
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October 22, 2019
course. Overall, operating expenses finished down to budget for
the month, yet are up year to date. Categories providing the largest
impact to the budget include food and beverage, rents and leases,
and marketing. In the category of food and beverage, the expense
is related to concessions labor and the cost of goods purchased. As
the traditional golf season comes to an end, concessions items are
being reduced or eliminated from inventory. In rents and leases, we
are in the final few months of lease payments for the customer
carts, beverage cart and utility carts. The variance to budget is
attributed to the addition of the utility carts this year. The budget
was set and adopted before this change in our annual lease with US
Golf. Finally, in the category of marketing, the expense is related
to the overall forms of advertising used to promote the course. At
the end of September, excess revenue over expenses is ahead of
budget.
b. Cooley Law 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 and
year to date. We will review the fiscal year 2021 budget amount
for the ATM as the use of debit/credit cards is greater than
withdrawing cash from an ATM. Overall, operating expenses
finished down to budget for the month and year to date. In the
category of salaries and wages, the expense this year is greater than
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October 22, 2019
the prior year. We changed the allocation of the Lansing Center
labor to the Stadium to reflect positions that impact the Stadium
operations. The category providing the largest impact to the
September budget was utilities. When the fiscal year 2020 budget
was created, we planned for a 20% increase in usage as events at
the Stadium and use of The View has been increasing. We will
continue to monitor this as the year progresses, with a plan to
increase the utility budget again as our plan isn't meeting actual.
The installation of Smart Meters is providing accurate utility
usage. Electric was up 28% ($3,474) to last year while water was
up 80% ($1,143) to last year. At the end of September, excess
revenue over expenses is slightly behind budget.
c. Lansing Center: September year to date operating revenue decreased
from last year by more than $21,000 or 2%. September revenue is up
to budget for the month and year to date. A few events that occurred in
September include Institute of Electrical and Electronics Engineers
(NAPAC), Brain Injury Association of Michigan and Michigan State
Housing Development Authority (MSHDA). Overall, there were
eleven (11) events that occurred in September 2018 that were not re-
booked September of 2019 accounting for more than $208,000 in rent,
food and beverage, and equipment rental. In September of 2019, we
have twenty-three (23) events that are new or extra events that did not
occur in September 2018, capturing more than $388,000 in rent, food
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October 22, 2019
and beverage and equipment. Overall, operating expenses finished up
to budget for the month and year to date. Categories providing an
impact to the September budget includes utilities, marketing and
events. In utilities, much of the excess expense is related to electric
and steam. Electric was up more than$8,000 to last year, while steam
was up more than$1,700 to last year. In the category of marketing,
expenses are related to items for Silver Bells promotion and
identification (posters, envelopes, stickers) as well as sponsorship and
trade agreements for Chicken Wing Festival and Creative Placemaking
event. In event expenses, more than 60% of the expense is AV & event
supplies (laptops, projectors, etc.). Finally, unearned revenue-advance
rent has decreased when compared to last month; remains strong when
compared to the last two (2) fiscal years. At the end of the first quarter
of the fiscal year, the Lansing Center has captured 17% of the revenue
budget and contained expenses to 23% of the budget.
c. Personnel Committee: Commissioner Janssen stated that there are a few major
items to discuss. The biggest is Mr. Keith's employment contract ends this month.
Scott joined LEPFA in 2010 and in 2011 became the President and CEO. Since
then we have operated under the same contract. We have updated the contract to
include all the additional items Mr. Keith has taken on. We are recommending
renewing his contract every three (3) years versus every year.
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October 22, 2019
Vice-Chairman James Stajos asked Mr. Keith if he would like Board to go into a Closed Session
to discuss his contract.
Mr. Keith stated that he would.
Vice-Chairman James Stajos made a motion to go into closed session,
Seconded by Commissioner Barron that we will complete a roll call and then go into the closed
session.
Roll Call for CLOSED SESSION: Commissioners Stajos, Barron, Butler, Leatherwood, Janssen
and Mickens.
At 8:36 a.m. the meeting went into CLOSED SESSION.
At 8:57 a.m. the meeting returned for OPEN SESSION.
Roll Call for OPEN SESSION: Commissioners Stajos, Barron, Butler, Leatherwood, Janssen and
Mickens.
Commissioner Janssen requested that the Board now motion to extend Scott Keith's contract for
3-years.
Motion: Commissioner Barron
Second: Commissioner Stajos
Motion unanimously carried.
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October 22, 2019
d. Strategic Planning Committee: Vice-Chairman James Stajos stated all items he
had to discuss Mr. Keith covered in his report.
e. Vice-President & Staff Reports:
Jennifer McFatridge - Stated that our annual audit is currently ongoing.
Commissioner Barron and Mickens exited the meeting at 8:59 a.m.
Scott Horgan—Reported that we are wrapping up the golf season. Excited to
announce we are up 12% to last year. Our goal was to increase our outings. We
are up 47% with outings and tournaments. A lot of that is in thanks to our
partnership with the Michigan High School Athletic Association. We opened our
simulator on Friday. The course was packed all weekend, so we were unable to
get the Simulator going. Leagues and lessons start on November 4. The first
simulator league is 80% full already. The first session is only seven (7) weeks
long. Next session starts in the spring which is ten (10) weeks long.
Vice-Chairman James Stajos stated that we are very impressed with Groesbeck.
Love seeing that revenue is up, and salary is down. Great job and big thank you.
Paul Ntoko—Reported that back in the spring we made some changes to how we
execute our events. We have added some additional changes to contracts to
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October 22, 2019
prevent us from wasting money and time. About 80% of our clients have adopted
to it and we are seeing positive effects.
Heidi Brown— Stated that most of her information she has to share is in the
administrative report. We are still working on the Collective bargaining
agreement. The Health Care Committee is continuously meeting to review our
benefits. Fair Labor standard act takes place January 1. The salary level will
increase. The annual United Way Campaign is going on. This year we decided to
host a small carnival. Scott Keith has agreed to get in a dunk tank and raise
money. The Personnel Committee is working on reviewing the employee manual.
VII. Commissioner & Staff Comments: No Comment.
VIII. Old Business: No Old Business.
IX. Adiournment: President & CEO Scott Keith extended his thank you again to the board
and we look forward to the next three (3) years. Meeting adjourned at 9:22 a.m.
THE NEXT MONTHLY MEETING IS SCHEDULED FOR:
November 26t'', 2019—8:00 A.M.
LANSING CENTER—GOVENORS ROOM
Respectfully Submitted,
Ashley Proper, Recording Secretary
LANSING ENTERTAINMENT & PUBLIC FACILITIES AUTHORIY
BOARD OF COMMISSIONERS MEETING
November 26, 2019
MINUTES
At 8:02 a.m. Chairman Price Dobernick 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), Price
Dobernick, Charles Janssen, Larry Leatherwood, Brian McGrain (Ex-Officio), Charles Mickens, and
James Stajos.
COMMISSIONERS EXCUSED: James W. Butler III and Shelbi Frayer (Ex-Officio).
OTHERS PRESENT: Heidi Brown, Scott Horgan, Scott Keith, Jennifer McFatridge, Paul Ntoko,
Ashley Proper—Lansing Entertainment & Public Facilities Authority; Jeremy Garza—Lansing City
Council; and Jack Alexander.
I. ESTABLISHMENT OF THE AGENDA: Chairman Dobernick stated that there were no
changes to the agenda.
II. PUBLIC COMMENT: None.
III. APPROVAL OF OCTOBER 22, 2019 MINUTES: Chairman Dobernick asked for a motion
to approve the October 2019 minutes. Scott Keith noted a correction on page ten (10), his hire
date will be changed to 2001. Motion was made to approve the minutes with the noted
correction.
Motion: Commissioner Bowen
Second: Commissioner Janssen
Motion unanimously carried
IV. REPORTS:
A. CHAIRMAN: Chairman Dobernick stated that Silver Bells was well attended and was a
great event and the Fireworks were great. Commissioner Leatherwood thanked Scott Keith for
hosting a watch party.
B. FINANCE COMMITTEE:
1. 2019 Audit Report: Jennifer McFatridge, Vice-President of Finance, stated that she would
like to start the finance report with the 2019 audit review. Jennifer introduced Will Love; the
on-site Field Manager assigned to LEPFA. Mr. Love stated that this was a fully clean
unmodified audit. All the paperwork was done on time and submitted properly. Mr. Love noted
that page one (1) is the independent audit report. Page two (2) is the audit team's opinion of the
audit.
Commissioner Barron entered the meeting at 8:08 a.m.
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November 26, 2019
He noted on page twenty (20) there is a note regarding the operating leases of the golf carts at
Groesbeck. On page twenty-one (21) is the yellow book report, which is the internal control
system and the general compliance as it reflects in the financial statements. Will stated that
there is no such thing as a perfect system; however, the audit team did not find any items that
were out of compliance. Mr. Love stated that the second document attached is the auditor's
report to the Board explains how the process and the audit team's responsibilities.
Mr. Love stated that on the top of page three (3), the end of the first paragraph there were no
misstatements, and the team only had to make one adjustment due to the umbrella company.
Mr. Love stated that overall there are no concerns.
Mr. Keith thanked Mr. Love for presenting the 2019 Audit review.
Will Love exited the meeting at 8:19 a.m.
Commissioner Leatherwood commended the finance team on the hard work and for teaching
him how the whole process works.
Scott Keith thanked and acknowledged Jennifer McFatridge and the Finance team.
Commissioner McGrain asked if we are paying attention to the net loss of last year. Is this
going to be a trend?
Scott Keith stated that the net loss is not a trend, in fact all the properties are up this year and
that the apparent loss was due to writing off debt.
2. October 2019 Finance Report: Jennifer McFatridge, Vice President of Finance, reviewed
the following:
a. Groesbeck Golf Course: October operating revenue indicates a traditional golf season
winding down, though continued to have a positive performance. October revenue is up over
last year and compared to budget for the month, as well as year to date. October concession
sales are up more than 100% compared to last year; with beer sales accounting for 48% of
sales. In October there were more than 1,500 rounds of golf played at the course. Overall,
operating expenses finished down compared to budget for the month and are up slightly for
year to date. Categories providing the largest impact to the budget include food and beverage,
rents/leases, and marketing. In the category of food and beverage, the expense is related to
concessions labor and the cost of goods purchased. In rents/leases, we are in the final few
months of lease payments for the carts, beverage cart and utility carts. The variance to budget
is attributed to the addition of the utility carts this year. The budget was set and adopted before
this change in our annual lease with US Golf. Finally, in the category of marketing, the
expense is related to the forms of advertising used to promote the course. At the end of
October, excess revenue over expenses is ahead of budget.
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November 26, 2019
Commissioner Stajos stated he is very impressed with the financials for Groesbeck Golf
Course.
b. Cooley Law Stadium: Operating revenue at Cooley Law School Stadium typically comes
from the concourse ATM machine. Revenue is down compared to budget for the month and
for year to date. We will review the fiscal year 2021 budget amount for the ATM as the use of
debit/credit cards are greater than withdrawing cash from an ATM. Overall, operating
expenses finished slightly up compared to budget for the month; however, they were down
compared to budget for year to date. In the category of salaries/wages, the expense this year is
greater than the prior year due to the change in the allocation of Lansing Center labor to the
stadium to reflect positions that impact the stadium operations. The category providing the
largest impact to the October budget was utilities. When the fiscal year 2020 budget was
created, we planned for a 20% increase in utility usage for events at the stadium and use of The
View. We will continue to monitor utilities, with a plan to increase the utility budget again as
our plan isn't meeting actual and the installation of smart meters is providing accurate utility
usage. Electric was up 24% ($2,361) compared to last year, while water was up 79% ($607)
compared to last year. At the end of October, excess revenue over expenses is slightly behind
budget.
Commissioner Bowen asked if we communicate with folks at the stadium regarding the use of
The View and the increased cost of utilities?
Scott Keith stated that it is hard to really dig into what exactly the major costs are or to pinpoint
the high utility bills.
Commissioner Bowen asked if there is communication regarding going green and being
responsible in their utility use?
Scott Keith responded that he and Nick have had conversations regarding events at The View.
Commissioner Mickens commented on an article regarding the Salvation Army and that many
of the Salvation Army Kettles are now accepting digital payment donations. He suggested
looking at digital pay i.e. apple pay or google pay because we are now entering an era where
the majority of the demographic doesn't use cash.
c. Lansing Center: October year to date operating revenue increased over last year by more
than $8,400 or less than 1%. October revenue is up compared to budget for the month and for
year to date. October events include Spartan Motors, MDEQ and Michigan Optometric
Association. Sixteen (16) events occurred in October 2018 that were not re-booked in October
2019 accounting for more than $185,000 in rent, food and beverage, and equipment rental. In
October 2019, we had eighteen (18) events that are new or extra events that did not occur in
October 2018, capturing more than $159,000 in rent, food and beverage, and equipment.
Overall, operating expenses finished up compared to budget for the month and for year to date.
Categories providing an impact to the October budget include utilities, marketing, and events.
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November 26, 2019
The majority of the excess for utilities is related to electric and steam. Electric was up more
than $5,000 compared to last year, while steam was up more than $4,500 to compared last year.
In the category of marketing, expenses related to items for Silver Bells promotion/identification
(brochures, guides, ornaments, etc.) as well as facility audit expenses. In event expenses, more
than 56% of the expense is AV & event supplies (laptops, projectors, etc.). Unearned revenue-
advance rent has increased compared to last month; and remains strong compared to the last
two fiscal years. At the end of the fourth month of the fiscal year, the Lansing Center has
captured 29% of the revenue budget and contained expenses to 32% of the budget.
Chairman Dobernick moved to approve the October 2019 Financial Statements for: Groesbeck Golf
Course, Cooley Law School Stadium, and the Lansing Center be received as published; and further
that the monthly expense for each entity be accepted as presented.
Motion: Commissioner Leatherwood
Second: Commissioner Barron
Motion unanimously carried
Commissioner Janssen asked with the loss of the soccer team does that have a significant impact on the
LEPFA budget?
Scott Keith stated that there will be no negative impact to our budget. The only impact should be less
use of utilities. However, it could mean less potential revenue to the City.
Commissioner Janssen asked when we have a net loss that is significant does it impact just LEPFA's
cash reserves?
Scott Keith stated that it does impact our cash reserves.
Commissioner Janssen asked what happens when CPP/Common Ground has a loss?
Scott Keith stated that LEPFA takes a loss, and we are able to write it off and it is always shown in the
audit.
Commissioner McGrain questioned if we have different workbooks for each property?
Jennifer McFatridge stated that each property has their own checking accounts and bank accounts.
Commissioner McGrain asked if we have a worksheet that shows what is in our bank account?
Jennifer McFatridge stated that yes there is a place in her report that states exactly what is in the bank
accounts for each property.
There was length discussion regarding Center Park Productions running on a calendar year, when the
other entities operate on a fiscal year and therefore the audit does not reflect CPP/Common Ground in
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November 26, 2019
true due to the way the financials are ran. It is not that there is not a loss, it is simply timing of the
filing and audit process.
Eric Brewer provided insight regarding the way that the City completes the audit review to help clarify
some of the questions of the process.
Commissioner Barron asked if there was any update on Common Ground 2020?
Scott Keith stated that he did inform our partners that we cannot move forward as it currently functions
and are having conversations with sponsors regarding restructuring the event. There was additional
discussion regarding explaining the change.
C. PERSONNEL COMMITTEE: Commissioner Janssen stated that the committee did not meet
this month. They will reconvene in January.
D. STRATEGIC PLANNING COMMITTEE: Commissioner Stajos stated that the committee did
not meet this month. They will reconvene in January to review the Facility Audit.
E. PRESIDENT & CEO: Scott Keith, LEPFA President & CEO reported the following:
1. CVB Funding: Scott Keith reported we are still working with the CVB and the City on
changing the funding model; we will be receiving a gradual increase in funding over the
next five (5) years and are working on revising the agreement. We hope to present the
agreement to the Executive Committee in January.
2. Naming Rights: Scott reported we have recently been approached with a naming rights
idea and they are being reviewed and continue to update the status.
3. Facility Audit Review: Last week a final draft of the Facility Audit was reviewed. Scott
noted he and Tristan are reviewing it thoroughly and plan to present it to the Strategic
Planning Committee in January and would like the review team to present to the LEPFA
Board of Commissioners.
4. City Market: Jennifer McFatridge attend the recent court hearing and Scott reported we
have received the formal eviction documentation. He noted the Judge was not pleased that
we had to come back before her. Scott noted we likely will file a second complaint for the
back payment of rent and hope that the Judge will sign off on our proposal and we can
move forward.
5. Cooley Law School: Scott stated that it was announced last week that Nick Grueser is
leaving the Lugnuts in early 2020. We are currently working on the naming rights of the
Stadium which expires next December. We are also working on a memorandum of
understanding between LEPFA and the Stadium to co-produce events together and generate
additional revenue.
6. Groesbeck Golf Course: The staff started the evaluation of the clubhouse options between
completing a pavilion or renovating the clubhouse. The costs between the two were very
similar. There is a review of renovating the Clubhouse for more year-round use and
potential revenue.
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November 26, 2019
7. Silver Bells in the City: Silver Bells was a big success this year; with about 60,000
attendees. The LPD Chief reported that there were no issues, and no arrests. The fireworks
were spectacular, and the parade went well. The concert at the Lansing Center had about
1,000 attendees. Santa and Mrs. Claus had a long line as well. The parade will be
re-broadcast Thursday morning and throughout the rest of the year. Jeremy Garza asked if
there were any prerequisites for the parade and floats? Mr. Keith stated there are
requirements. There must be at least 5,000 lights on the float, and there is height
restrictions. The committee does meet and review and approve every application.
The parade is scripted and timed out.
Commissioner Barron extended his thanks to Scott Keith for getting in the dunk tank and
supporting a great charity cause in the United Way.
F. VICE PRESIDENT & STAFF REPORTS:
1. Scott Horgan, Vice-President of Sales & Marketing reported Groesbeck Golf Course had
almost 100 golfers this weekend and they are up compared to last year and have exceeded the
yearly goal for rounds; compared to last year rounds are up 10%. Scott reported everything is
tracked in segments. Greg has been working with the Michigan High School Athletic Association
and has strengthened our partnership with them. We hope to have a partnership with the Michigan
section of the Pro Golfer Association and will know in January. Simulator season is underway, and
leagues and lessons are full. Sponsorship and advertisement opportunities are under review and
consideration.
We have booked a great deal of last-minute business at the Lansing Center and are going strong.
The calendar is filling for 2021 and are also partnering with the GLCVB and gaining more business
with them. The LEPFA Silver Bells float was a huge hit.
Commissioner Bowed asked if we charge a premium to clients when counts go up at the last
minute?
Paul Ntoko stated that we do add on a percentage per the contract. We just made a revision to our
contracts at the beginning of the year to include this. Scott Horgan stated that we do have the
conversation with the client that we will charge them and moved the accountability to the clients.
2. Paul Ntoko, Vice-President of Foodservice, reported in October we terminated the vendor
agreement with Sysco and have decided to give it some time before we pick a fixed vendor because
we are being offered special pricing from different vendors and will give it a few more months
before we choose a vendor. Paul indicated they decided to pick a new vendor due to the changing
prices.
3. Heidi Brown, Vice-President of Administration, reported they are currently working through
the employee policies and procedures manual. Heidi noted there was one workers compensation
claim last month which has left us with ten (10) accident free days. LEPFA U will take place on
January 22, 2020, and Tristan Wright now chairs the committee. Commissioner Bowen asked if we
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November 26, 2019
need to revise anything in our handbook with regard to recreational marijuana use? Heidi Brown
stated that we are drug free workplace, and our policy addresses marijuana use, regardless if it is
medical, recreational, etc.
G. COMMISSIONERS COMMENTS:
1. Commissioner Stajos: Commissioner Stajos commented that he had a wonderful time at Silver
Bells and love being out in the crowd and noted that he did a pre-check of the fireworks launch
site. Commissioner Stajos noted that Matt has always wanted to do the fireworks for Silver Bells
and that the team really did a wonderful job. He noted he would like to see this show turn into a
pyro-musical going forward. Commissioner Stajos offered his pyro services to the City for the July
Fourth celebration.
2. Commissioner Mickens: Commissioner Mickens noted he enjoyed Silver Bells from home, as
he heard the fireworks from his home. He noted he is onboard with making the show bigger
than ever next year.
3. Commissioner Janssen: Commissioner Janssen thanked everyone for their efforts.
4. Commissioner Bowen: Commissioner Bowen stated that October 2019 revenues for hotels
are going great and this year has proved that revenues are not coinciding with the football
schedules. Commissioner Bowen reported that with Jack Schrispema announcing his
retirement, the team does not have much time to find a replacement.
5. Commissioner Leatherwood: Commissioner Leatherwood stated that he enjoyed Silver
Bells and being able to watch it streamed here was great. It was a great opportunity for
everyone to talk and keep things light.
6. Commissioner Barron: Commissioner Barron shared that he was at an antique store in
Mason and he purchased a piece of artwork from the Lansing Center. Overall enjoyed Silver
Bells,
V. COMMISSIONER & STAFF COMMENTS: No comments.
VI. OLD BUSINESS: No report.
VII. ADJOURNMENT: at 9:30 a.m. the meeting was adjourned. Chairman Dobernick requested a
motion for adjournment
Motion: Commissioner Bowen
Second: Commissioner Barron
Motion unanimously carried
LEPFA Board of Commissioners Meeting
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November 26, 2019
THE NEXT MONTHLY MEETING IS SCHEDULED FOR:
JANUARY 28, 2020 at 8:00 A.M.
GREATER LANSING CONVENTION &
VISITORS BUREAU
Respectfully Submitted,
Ashley Proper, Recording Secretary