Odessa Development Corporation

PUBLIC NOTICE ODESSA DEVELOPMENT CORPORATION BOARD OF DIRECTORS MEETING City Council Chambers - City Hall, 5TH Floor 411 W. 8th Street, Odessa, Texas 79761 Thursday, March 12, 2020, at 2:00 p.m. In accordance with the Open Meetings Act, Chapter 551 of the Government Code of Texas, notice is hereby given to all interested persons that the Odessa Development Corporation will meet as set out above to consider the following items: 1. Invocation 2. Consider Minutes of February 13, 2020 ODC Board 3. Contractors reports: A. Economic Development Dept.-Odessa Chamber - Wesley Burnett B. CVA Advertising & Marketing - Craig Van Amburgh C. UTPB-America’s SBDC - Tyler Patton, Sr. Business Consultant D. UTPB-Business Challenge - Bryan Bierwirth E. MOTRAN - James Beauchamp, President F. City Administrative Support; Financials - Cindy Muncy 4. Discuss Council request that ODC provide feedback regarding increasing the Robert Carroll number of Directors from 5 directors to 7 directors. 5. ODC Committee and Officer reports 6. Adjourn This notice is being posted on the south door of City Hall and on the bulletin board of the first floor of City Hall, Odessa, Texas, on the City of Odessa’s website www.odessa-tx.gov, and on the Odessa Development Corporation’s website www.odessatex.com, this the _____ day of _______________, 2020, at _______ ___.m., said time being more than seventy-two hours (72) prior to the time at which the subject meeting will be convened and called to order. The meeting is available to all persons regardless of disability. Individuals with disabilities who require special assistance should contact the City Secretary's Office at 432-335-3276, or 411 West 8th Street, First Floor, Odessa, Texas, during normal business hours at least twenty-four hours (24) in advance of the meeting. ____________________________________________ Norma Aguilar-Grimaldo, City Secretary  ODESSA DEVELOPMENT CORPORATION CITY OF ODESSA, TEXAS February 13, 2020 A regular meeting of the Odessa Development Corporation (ODC) was held on February 13, 2020 at 2:00 p.m., in the Council Chambers, fifth floor, City Hall, 411 W. 8th St., Odessa, Texas. Members present: Tim Edgmon, Gene Collins, Melanie Hollmann, David Boutin, Chris Cole; and Mayor David R. Turner, ex-officio. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Natasha Brooks, City Attorney; Robert Carroll, Assistant City Attorney; Cindy Muncy, Interim Assistant City Manager and Michael Marrero City Manager; ODC Contractors: Craig Van Amburgh, CVA; Wesley Burnett, Economic Development; Tyler Patton, UTPB-SBDC; Bryan Bierwirth, UTPB-SBDC; and Kathy Vaughn, Chamber of Commerce; and Others: Council member Tom Sprawls, and other interested citizens. A quorum being present, Mr. Edgmon called the meeting to order and the following proceedings were held: Mr. Collins gave the invocation. January 9, 2020 minutes. Motion was made by Mr. Boutin and seconded by Mr. Cole to approve the minutes. The motion was approved by unanimous vote. Contractors report: Economic Development: Odessa Chamber, CVA Advertising and Marketing, UTPB-America’s SBDC, MOTRAN, and City Administrative support. Mr. Burnett had ongoing projects and housing projects would be coming soon. There was no slowdown in activity. The Sabre Chemical was expanding. The OHFC housing project on 87th St. was moving forward. PSP approved $6 million for the project. Mr. Collins asked about the business project of townhomes. Mr. Burnett stated that the program was created to assist with infrastructure to develop economic development. It was also developed for priced workforce. It was not specific to a business. The grant incentives assisted to buy down a home through infrastructure. Mr. Boutin stated with less expensive housing the buyer benefits. Mr. Van Amburgh reported on January’s advertising activity. The podcast ran featuring the community funding to the survivors, which received good feedback. Spirit of Odessa had segments on housing, education and local expansion. Investing at Home featured Bubba Saulsbury. Television spots continued to run on sports channels for business retention. It featured a testimony by Nick Fowler. Mr. Patton reported on SBDC’s January activity. January’s capitalization was $6 million, which was trending well. There were 200 counseling session and 215 counseling hours. Seminars were presented. Seminars included marketing and QuickBooks. Mr. Bierwirth reported that the Business Challenge orientation had 89 attendees with 37 people signed up for the Challenge. There was an increase in numbers from last year. A workshop was held, as all the workshops were mandatory. The first round of ODC Minutes February 13, 2020 Page 2 elimination was March 6. There was a $350 fee to enter the competition. After the first round of elimination, the individuals eliminated would be referred to SBDC. Discuss audit draft of ODC financials performed by Weaver and Tidwell. Greg Peterson, Weaver and Tidwell, stated that the audit was an unmodified report for Fiscal Year ending September 2019. He pointed out the financial narrative of the activity. He reviewed the balance sheet. He reviewed the assets and explained the prepaid items. There were $8.1 million in contracts payables. He reviewed the itemized list for committed funds. A correction would be made on Summit as it was $5 million. The investment income was $1,441,461 with expenditures of $10,976,106 with incentives of $8,546,914. The investments were invested at low risk and conservative. There were no unfavorable variances with the budget and actual. Motion was made by Mr. Boutin and seconded by Ms. Hollmann to approve the audit with the one correction. The motion was approved by unanimous vote. City Administrative Support: Financials. Mrs. Muncy reported the December’s financials. Total assets were $58,737,616 with accounts payable to TxDOT and Odessa College of $6,049,123. She reviewed the reserved short term and long-term commitments. The investment summary was reviewed. Motion was made by Mr. Cole and seconded by Mr. Boutin to approve the finance report. The motion was approved by unanimous vote. Consideration and possible action regarding newly drafted ODC bylaws. Mr. Carroll stated that that the bylaws were reviewed in November. The bylaws included the requested clause of conflict of interest Section 2.10. Mr. Boutin asked about the Downtown Committee appointments. Mr. Carroll reported that there was no limit to the committee. Motion was made by Mr. Boutin and seconded by Mr. Collins to approve the bylaws. The motion was approved by unanimous vote. Resolution No. ODC-2020R-02 - Economic development agreement auditing and payment process and amend economic development agreements to reflect potential changes. Ms. Brooks stated that Section 4 was added regarding Compliance Committee procedures. Motion was made by Mr. Collins and seconded by Ms. Hollmann to approve the resolution. The motion was approved by unanimous vote. Discuss and possible action regarding Economic Development Agreement with Kaige Equipment, LLC. Mr. Burnett stated that Compliance reviewed the application. Eight jobs would be retained with six new jobs and a new building. The Compliance Committee recommended a $318,000 incentive grant to be paid out in five years. Motion was made by Ms. Holllmann and seconded by Mr. Cole to approve the Kaige economic development agreement. The motion was approved by unanimous vote. Discussion and possible action regarding Tar Heel Holdings, LLC Housing Project and JARB Holdings, LLC Housing Project. Mr. Burnett stated that there were two companies with the same owners. One project was to provide townhomes and the other ODC Minutes February 13, 2020 Page 3 was to provide single-family housing. The projects were reviewed by Compliance. The projects were in the city limits. The values needed to be certified. Ms. Hollmann stated that the projects followed the guidelines to incentives workforce housing. Motion was made by Ms. Hollmann and seconded by Mr. Cole to approve the two projects. Mr. Boutin asked about the reassurance of the buy down of cost to the end user. Mr. Burnett stated that the guidelines for the cost of the homes was $130,000 to $225,000. One of the obstacles was the high cost of infrastructure. Mr. Collins supported affordable housing but wanted to assure that the ODC followed the state statute. He stated that the housing fell under Type B. Mr. Burnett stated that the guidelines was for economic development of new developing enterprises. Ms. Brooks stated that the funds were used to pay for infrastructure as many other cities were doing. The funds were paid to the businesses. Ms. Hollmann called the question. Any business had the opportunity to build housing and apply for the funds under a certain amount. Mr. Burnett stated that the infrastructure development was for business enterprise. The motion was approved by a 4-1 vote with Mr. Collins casting the nay vote. ODC Committee and Officer Reports. Mr. Edgmon reported that the Partnership discussed the Juvenile Center and the memorial for August 31. The Sewell Auto Tech grand opening was February 27 at 5 p.m. Mayor Turner reported that KOB would furnish cigarette boxes through a grant program for the Downtown businesses, if businesses wanted the boxes. Mr. Collins stated that the Downtown merchants would be meeting on input for the Grant St. development. Mr. Edgmon suggested moving the March 12 meeting to March 17 for a joint meeting with City Council and to hear Dr. Perryman’s economic development report. More information would soon be provided. The meeting adjourned at 2:58 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Tim Edgmon City Secretary President  Odessa Chamber of Commerce Economic Development Services for the Odessa Development Corporation February 2020 Projects 2017-04 Project American Standard has received an incentive application and plans for major consolidation / expansion project, 60 sf with 6 acres of yard storage. They are exploring lease options in Odessa to retain 50 employees and hire 10 new. Company has contracted with CBRE for building search and will be working with Economic Development staff. This is an ongoing project information will be forthcoming as collaboration efforts proceed. • Company continues to seek assistance with expansion in Odessa • Company is working with landowner for location and increasing footprint • Company has purchased land • Waiting on Company to complete application • No update • Inactive • 2018-01 • Lead from the Governor’s office; Sabre Chemical, a chemical manufacturing business is seeking a HQ location in Odessa, adding 200 jobs to the workforce • Seeking rail service location • Company narrowing facilities list, will be working with Economic Development staff • Negotiating for a facility continues and is close to completion • Company is in final negotiation on existing facility in Odessa, will submit incentive application soon • Company has closed on building, currently has 60 employees, plans to ramp up to 200 over 3 years • HQ and distribution office, incentive application should be submitted soon • Company continues to develop options for increasing facility size and job numbers. Discussion of locating more of operation in Odessa 1 • Company has incentive application, negotiations for increasing and expanding operations in Odessa • Company making improvements / upgrades to existing local facility • No update, waiting on application from company 2018-05 • X-Energy is seeking to construct and operate a specific nuclear reactor in Ector County, Texas. This is a long-term project that would not expect to be in operation until 2024 and a $1.5 billion project • This intrinsically safe procedure is expected to generate the sale of electricity and process heat from this facility which could self-suffice the plant operations and costs • A feasibility study has returned favorable and positive feedback • Ongoing discussion with company for further information • Company visited Odessa, toured GCA-very favorable, feasibility moving forward on business model • Company will return to Odessa and discuss water issues surrounding communities moving forward • Company plans to be in Odessa in December 2018 with DOE representatives to explore options and Odessa investments • Company and DOE, TRRC visited Odessa, project to move forward • Ongoing, no report 2019-01 • Project Rockhound is a 1000-megawatt solar project in western Ector County. $1 billion CapEx, process of incentives with taxing entities ongoing • No update 2019-02 • Manufacturer of housing components, 200-300 jobs, interest in locating facility in Odessa, initial discussions, application ongoing • Exploring property in Opportunity Zone • Negotiations continue for project location in Odessa • Company is working on application • No update 2019-03 • Oil and Gas manufacturing company out of state wishes to consolidate operations into Odessa • 62 retained and transferred jobs, 46 new jobs created, $7 million payroll • Compliance met and will be recommending incentives to ODC board 2 • ODC Board and City Council approved an incentives package for the project • Agreement executed 2020-01 • DEF Plant • $2.5-3 capital investment • 15-20 jobs • Project in early stage of planning 3 Local Business Retention and Expansion • Multiple local expansions in beginning stages • Kaige Equipment $2.8 million expansion, 6 new jobs 8 retained. ODC approved awaiting city council approval • Project Who, food manufacturer, working on ODC application Odessa Partnership • Partnership met January 16, 2020 • The next meeting is scheduled March 26, 2020 Business Retention and Expansion • Completed 10 visits to local industries Housing • OHFC approved for incentives on 216-unit multi-family project expansion on 87th Street. PSP approved project for investment of $6 million. Construction could begin April/May. • Housing pod project with interest in multi-family, mixed use and single-family pursuing project for Downtown and NE Odessa. Evaluating investments to partner with PSP and Downtown Odessa area interest. Project moving forward on all fronts. • Approved two housing grants. 7 single family, 6 townhomes. • LOA Land Development, 192 lot subdivision working on infrastructure grant application. Services and Other Activities • Ingham Economic Index November Report sent via Mailchimp and posted to website • Odessa Development News / Economic Indicators for January waiting for TWC employment report which will be available March 13th • Certificates of Origin for Eckel International Inc., equipment and parts shipping to Saudi Arabia • Demographic information sent to Janice Haven, Havens Group 4  Partner Visits UTPB National Signing Day Breakfast Director Participated Citizen Of the Year Director and Staff Participated Strategic Planning Team Meeting Director Monahans Chamber Awards Banquet Director Participated MD&M Team Texas Trade Show Staff Participated Oberon Solar Meeting w/Taxing Entities Director and Staff Participated TEDC Winter Conference Director Participated United Way Annual Meeting Director and Staff Participated High Ground Las Vegas SHOT Show Staff Participated ECISD Table Facilitator Meeting Director Participated TWC Meeting w/Robert Andrade Staff Partipated Quint Studor Workshop Director Participated OC Sewell Auto Tech Grand Opening Director and Staff Participated 5 State of Downtown Odessa Director Participated Literacy Conference Director Participated 6  Odessa Economic Indicators 2020 Building Permits January 2020 Total Value 2019 Total Value New Single Family 61 $16,021,250 37 $9,194,910 New Commercial 2 $625,733 3 $2,054,000 Other 83 $2,305,380 93 $8,859,675 Totals 146 $18,952,363 133 $20,108,585 YTD Totals Sales and Use Tax January 2020 2019 % Change City of Odessa $5,075,685 $6,023,322 -15.63% Totals YTD Labor Market Statistics Permian Basin Rig Count January 2020 2019 Month 2020 2019 Civilian Labor Force January 296 378 Total Employment January Report 2019 2018 Total Unemployment Available December 299 382 Unemployment Rate March November 303 387 Payroll Employment Estimate 13th Midland International Air and Space Port MLS Statistics-Residential (SF/COND/TH) January 2020 2019 January 2020 2019 Enplaned 46,175 43,436 Total Sold 94 97 Deplaned 48,532 45,687 Dollar Volume $22,582,917 $20,714,632 Enplaned YTD Total Sold YTD Deplaned YTD Volume YTD Sources: City of Odessa Building Inspection Division, State Comptroller of Public Accounts, Midland International Air and Space Port, Labor Market and Career Information, Odessa Board of Realtors and Baker Hughes Published by the Odessa Chamber of Commerce kathiv@odessaecodev.com (432) 332-9111 ODESSA DEVELOPMENT CORPORATION FEBRUARY 2020 ACTIVITIES PODCAST/TV AD SERIES Podcast - Opportunity Odessa Currently identifying new interviews for this series. TV News Segment - Spirit of Odessa Recording Wesley segments on housing, education, healthcare, local expansion, and explaining ODC’s role in city growth on Wednesday, March 11. KWES - Investing at Home Aired in February: Bubba Saulsbury & Kirk Edwards. TELEVISION Our BR&E :30 TV spot ran on Golf Channel, NASCAR Races on FS1 and NBCS, NBA games on ESPN and TNT. New Nick Fowler testimonial TV spots (3) are completed and will begin airing on March 9, 2020. PUBLICATIONS Preparing new ad for Odessa American BR&E series featuring quotes from Nick Fowler and how ODC helped him grow his business. SOCIAL MEDIA/DIGITAL MEDIA Overview In February, our overall social media engagement and likes were up significantly. Total social impressions and engagement increased 200+% compared to the previous month. We continued the page likes campaign on Facebook, resulting in 14 new page likes, compared to 9 last month. Our Twitter impressions and profile visits were down slightly, but we did see an increase in followers. CVA 5030 E. University, Ste. 401 B Odessa, TX 79762 T 432-368-5483 F 432-366-9434 E craig@cvaadv.com www.cvaadv.com Facebook Over the last month on Facebook, CVA has continued to generate content from rele- vant articles of local news organizations. Facebook metrics were much higher this month, with our post reach increasing by 186% and post engagement increasing by 241%. Our campaigns resulted in 14 new page likes and reached a total of 8,213 peo- ple. Twitter Over the last month on Twitter our followers were up, despite lower impressions and profile visits. We have continued to tweet the same content we share on Facebook to engage new and existing followers as well as retweeting relevant content. Our tweets resulted in 3,023 impressions and 55 visits to our profile. Website Our website metrics were mixed this month, with an increase in users and sessions, but a decrease in page views. The majority of our traffic this month came from organic search, which comprised 49% of visits, direct website entry was 22%, and social media made up 20%, up from only 5% last month. Info on new followers/likes: Facebook: 14 new page likes Twitter: 4 new followers LinkedIn: 0 new followers CVA 5030 E. University, Ste. 401 B Odessa, TX 79762 T 432-368-5483 F 432-366-9434 E craig@cvaadv.com www.cvaadv.com  Odessa Development Corporation Digital Report February 2020 Social Overview Facebook Overview Facebook Top Posts Twitter Overview Top Tweets Website Performance  UTPB SMALL BUSINESS DEVELOPMENT CENTER 2019-2020 New Business Start-Ups & Expansions February-20 ODESSA OTHER LOCATIONS ACTIVITIES Counseling New Businesses 1 New Businesses 3 214 Seminars 3 Sessions Am Am Full-Time Jobs 0 Full-Time Jobs 22 4 1 Ind/N/Alaskan Ind/N/Alaskan Asian/pac. Asian/pac. Part Time Jobs 0 Part Time Jobs 0 7 0 Islander Islander Black 24 Black 5 Total Jobs 0 Total Jobs 22 Hispanic 86 Hispanic 16 Non-Hispanic 92 Non-Hispanic 13 Total Clients 214 Total Attendees 48 Counseling 202 Training Hours 96 Hours Cumulative End of Year Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 2019/20 Totals 2018/19 Totals Counseling Sessions 212 148 149 200 214 923 3403 Counseling Hours 229 142 150 216 202 938 2927 Seminars Presented 3 2 1 1 3 10 42 Attendees 90 14 11 20 48 183 736 Training Hours 180.0 91 22 40 96 429 1446 New Businesses 1 11 2 3 4 21 43 Odessa New Business 0 4 1 0 1 6 13 Capitalization $1,025,000 $3,709,600 $1,000,000 $273,000 $721,600 $6,729,200 $19,824,583 Odessa Capitalization $250,000 $3,265,000 $0 $50,000 $521,600 $4,086,600 $3,895,616 Full-Time Jobs 8 39 4 23 22 96 192 Odessa FullTime 4 19 2 4 0 29 70 Jobs Part Time Jobs 0 28 0 5 0 33 72 Odessa Part Time 0 25 0 0 0 25 24 Jobs Total Jobs 8 53 4 26 22 113 236 3/3/2020 KAM 03/02/2020 Odessa Development Corporation Board of Directors, February was a busy month for the 2020 Odessa Business Challenge, but first, I'd like to give a brief recap leading up to this month. At the end of January, we held three orientations, which brought in 89 attendees. Of those 89 attendees, 37 businesses paid to be part of this year's challenge, up from the previous high of 24 from 2019. Our marketing campaign, created by SDB Creative Group, generated 536,981 impressions on Social Media and 66,708 impressions on Digital Streaming TV Ads. Of the 89 Orientation attendees, 39% heard about the OBC20 on Facebook, followed by 18% Word of Mouth, 11% Small Business Development Center, 8% OBC Website, 7% UTPB, 5% Radio, 5% Past Contestants, and 7% other. The four highest age groups of Orientation attendees were 23% 30-34, 18% 25-29, and 16% 35-39 and 16% 50+. The Orientation attendees were 55% male and 45% female, 65% Caucasian, 10% African-American, 7% Native American, 3% Asian, and 15% preferred not to say. Lastly, 52% of all attendees identify as Hispanic or Latino. In January, we administered one seminar, (1) Brainstorming/Business Model Canvas, as all assigned workshops are mandatory. Many participants began scheduling the necessary time with myself, the Director of Business Competitions/Business Challenge Consultant, to discuss their business development. In February, we administered four seminars, (1) How to Write a Business Plan, (2) How to Write an Investor Fact Sheet, (3) Marketing Your Small Business 101, and (4) Marketing Your Small Business 102. Things started to kick in high gear in the month of February. Participants lined up outside my office to go over their business plan and investor fact sheets, which were due on March 6th. Participants would also email rough drafts of the fact sheet to me for review and critique. Once all the Investor Fact Sheets are submitted, they were handed over to our judges for scoring. The judges will have three weeks to score the fact sheets and return them to me to determine which 15 businesses will go on to the next round. The top 15 average scores from the five judges will go on unless there is a tie for 15th place. In the case of a tie, all that are tied for 15th will go on. Looking ahead to March, we will present five seminars, (1) Legal Structure and Intellectual Property, (2) How to Build Your Outside Team, (3) Employee Benefits, (4) New Taxpayer, and (5) Bank Lender Panel. The participants won’t find out who goes on to the next round until April 6th, so in the meantime, the participants will all work hard on their business plans with my assistance. As of today, the program approved a single payment for the required $37,750 expenditure to satisfy the marketing obligation described in the proposal. All remaining monies are allocated for the awards night, confirming the end of the Challenge. Respectfully, Bryan Bierwirth Director of Business Competitions University of Texas Permian Basin 432-552-2463 Bierwirth_b@utpb.edu