Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS May 14, 2020 A regular meeting of the Odessa Development Corporation (ODC) was held on May 14, 2020 at 2:00 p.m., in the Council Chambers, fifth floor, City Hall, 411 W. 8th St., Odessa, Texas. Due to the COVID-19, the meeting was teleconferenced, as allowed by the Governor’s executive order. Members present: Tim Edgmon, Gene Collins, Melanie Hollmann, David Boutin, and Chris Cole. Member absent: 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; Lawanna Lambert, Downtown Odessa Director; and Michael Marrero City Manager; ODC Contractors: Craig Van Amburgh, CVA; Wesley Burnett, Economic Development; Tyler Patton, UTPB-SBDC; Bryan Bierwirth, UTPB-SBDC; Renee Earls, Chamber of Commerce; and Dustin Fawcett, MOTRAN; and Others: Council members Mari Willis and Peggy Dean, and Michael Shelton; Ray Perryman, Lorraine Perryman; 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. March 12, April 7 and May 1, 2020 minutes. Motion was made by Mr. Collins and seconded by Ms. Hollmann 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 was working on a gas liquid project. Mr. Boutin asked about the PSP report on its withdrawal of its six million dollar support with the Odessa Housing Finance housing project. Mr. Edgmon stated that OHFC would reapply as it has stopped due to the COVID-19 pandemic. Mr. Collins asked about the ODC funds if it stayed allocated. Ms. Muncy explained the allocation in reserve for the project until expenditures were expended. Odessa Housing Finance Corp. was looking for other options. Mr. Van Amburgh reported on advertising activity. The podcast would be scheduled once the COVID-19 restrictions were lifted. The TV segment was cancelled and be rescheduled. The testimonial TV spots were cancelled. An ad was in the Odessa ODC Minutes May 14, 2020 Page 2 American featuring Nick Fowler. The website would be reconstructed. A survey was sent to local companies regarding its effect from COVID-19. He provided the results. He reported on the social media as Facebook increased but Twitter declined. Mr. Patton reported on SBDC’s April activity. April’s capitalization was $228,000 with Odessa at $178,000. There were 232 counseling sessions and 202 counseling hours. No seminars were presented. He explained March’s activity as staff was sent home due to COVID-19. Assistance was provided through phone call consulting. On-line training was provided. He stated that its blog provided information on the Paycheck Protection Program and other relief efforts. Mr. Edgmon asked that the information be provided to the ODC board to assist with getting the message out. Mr. Bierwirth reported that the Business Challenge had its top 15 businesses. The seminars were being held on Zoom. The business plans were due on April 24. The pitch presentations would be on June 9 but closed to the public. The award ceremony was cancelled due to the COVID-19 but the winners would be announced on June 10. He provided the results of the survey to determine factors on participating in the challenge. Mr. Fawcett provided the economic analysis for the I-27 study. With the challenging times, the data shows that state resources and stimulus funding to the Permian Basin would make for a long-term economic growth and state revenue benefit. He provided an update on the local and regional planning priorities. He updated the board on the WI-FI broadband project as many people were working from home. The program would utilize grand funding. Mr. Collins asked about the broadband task force committee. Mr. Burnett stated that the task force was not set up. There would be contact with the school, Chamber, City, ODC, and County that would be represented. Ms. Muncy reported on the financial activities. Total expenditures were $1,270,160 for March. Interest income was $489,734. She reviewed the investment portfolio. She explained how the funds would stay in reserve and when it was moved from long term to short term. The medical invoices and the Perryman report would be paid in May. Resolution No. ODC-2020R-05 - Downtown Façade Economic Development Agreement with Karla Flores. Ms. Lambert stated that the request was for a $25,000 grant. She explained the tier levels for the reimbursement. The property was 513 N. Grant and total investment was $46,810. She provided pictures of the property. The proposal fit the design standard and the plan was to rent the building. It would be a 12- month project for completion. The Odessa Design Committee approved the agreement for $25,000. Motion was made by Mr. Cole and seconded by Ms. Hollmann to approve the resolution. The motion was approved by unanimous vote. Resolution No. ODC-2020R-06 – Odessa College fifth incentive payment based on compliance with the economic development agreement. Mr. Carroll reported that Weaver reviewed the documentation and it was in compliance. The fifth incentive would be for $526,779.64. Motion was made by Ms. Hollmann and seconded by Mr. Collins to approve the resolution. The motion was approved by unanimous vote. ODC Minutes May 14, 2020 Page 3 Resolution No. ODC-2020R-07 – FMC Technologies third incentive payment based on compliance with the economic development agreement. Mr. Carroll stated that there were no issues with the FMC documentation. He recommended the third incentive payment. Payroll was $3 million with 57 jobs. Motion was made by Mr. Collins and seconded by Mr. Cole to approve the resolution. The motion was approved by unanimous vote. Ms. Hollmann asked about the payments being paid in a timely manner. Ms. Muncy explained the payment authorization process and it would be paid on the next check run. Report on Preserving the Permian Basin Energy Sector Structure and the Odessa Economy through the COVID-19 and Oil Supply Shock Challenges. Dr. Perryman reported that the state of the economy was a health crisis issue and not any other type that we have had in the past. It was vital that we keep the structure together and it would come back rapidly once the health crisis was over. It was a terrible challenge with the downturn as a global perspective. The oil and gas industry was a problem due to the close of the economy. He stated it was very important to keep the workforce together. It was a very viable industry and it did not need to be dismantled. He recommended supporting the local employees and not losing the workforce, which could cause delay. He explained the difference of the oil crisis from the 1980s. It was completely different from what was being experienced today even though it looked like the 80s. He strongly recommended that advocacy be done for the local area as it was under represented in Austin and Washington. The Permian Basin was a major player in oil and gas and it was less than 1% represented in Congress. The community needed to continue to solve its housing, infrastructure and workforce issues. It also needed to improve the broadband for schools and industries. Mr. Boutin stated it was a good report and not easy solutions but ODC could participate. He stated that a task force would be beneficial with industry representatives on the committee. Mr. Edgmon stated that ODC has assisted with the food bank and a possible project with UTPB on scholarships. He asked how to get Austin’s attention. Dr. Perryman stated that a PR and advocacy campaign was needed and include the private sector. The message needed to be carried outside our area. Mrs. Perryman stated that a small group advocacy would help that had knowledge of the industry to organize a campaign. It needed to have the coordination of the industry. Mr. Cole agreed with the report and asked if it would be driven through the Chamber. Mrs. Perryman stated that ODC and the Chamber could be the driving force. It was an opportunity for all of Odessa to work together in its efforts by a community driven leadership. Representatives were needed on each area. Task forces should be developed. She emphasized the importance on the broadband, as it was needed for education and those working from home. Our community had a double hit with the oil industry and the pandemic. Mrs. Perryman stressed the importance of advocating. Mr. Boutin envisioned making the Perryman report a month update on the agenda, continue the focus on broadband Wi-Fi and the Compliance Committee work on a new program for existing business. He stated that the marketing should be lead by the task force with the industry representatives to be facilitated by the Chamber. He would assist as a liaison to the task force. He stated time was an essence. Mr. Collins stated that Odessa did not utilize all the representatives and it was a good time to work together. The whole community needed to be utilized as it had resources that could be used in Austin and Washington. All the governmental entities needed to be involved. Mrs. ODC Minutes May 14, 2020 Page 4 Perryman stated for the community to be proactive not reactive. The report would be posted on the ODC website. Plan of action in response to the fall of oil and gas in Odessa and ODC’s role in its recovery, based on the Perryman study. Create a task force to implement the plan of action in response to the fall of oil and gas as well as extend the message to the people of Odessa that this situation is not a long-term failure and discuss issues related to the COVID-19 pandemic, the effects it has had on the community and ways that ODC may help. Mr. Collins asked for the City Attorney’s office to establish the ways on assisting in the response to the pandemic that was within the scope of the ODC guidelines. Ms. Brooks stated that the Council directed that each project be reviewed on a case-by-case basis. She reported that there were no guidelines in this unprecedented time. Mr. Edgmon stated that the projects would be brought to ODC to be evaluated. Mr. Edgmon stated that Mr. Boutin would be the point person for working together on the study. He would be on the task force. Kirk Edwards was identified to lead up the advocacy as he had contacts in Austin and Washington. ODC Committee and Officer Reports. There were no meetings for Partnership or the Tax Incentive. The Tax Incentive guidelines were approved as required every two years. There was no advertising meeting. CVA would assist with the PR campaign and educate our local community as recommended from the Perryman study. Mr. Burnett stated that the electronic billboard had a rotating message. Mr. Collins had a project for Legal to consider if it met the ODC guidelines for funding. The project was a tracing and tracking app to identify areas on test results and to be used as a passport to enter venues. The meeting adjourned at 4:01 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Tim Edgmon City Secretary President