Odessa Development Corporation

PUBLIC NOTICE ODESSA DEVELOPMENT CORPORATION BOARD OF DIRECTORS MEETING Thursday, September 10, 2020, at 2:00 p.m. The Public can participate in the meeting by joining through Zoom Meeting link: https://us02web.zoom.us/j/7734675376 By toll free phone number: 1-346-248-7799 Enter meeting number: 773 467 5376 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 August 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................ Tim Edgmon/Ryan Peckham E. MOTRAN ........................................ James Beauchamp, President F. City Administrative Support; Financials ..................... Cindy Muncy 4. Consider approval of an Economic Development Agreement with Wesley Burnett Gasket & Packings, Inc. 5. ODC Committee and Officer reports: A. Partnership ................................................................ Tim Edgmon B. Tax Incentive ............................... Melanie Hollmann, David Boutin C. Advertising ........................................... Gene Collins, Tim Edgmon D. DOI Design ............................................. Chris Cole, Gene Collins 6. Discuss emergency assistance options related to the COVID-19 ODC Board pandemic 7. Update Task Force Report Kirk Edwards/Tim Edgmon 8. 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 MINUTES CITY OF ODESSA, TEXAS August 13, 2020 A regular meeting of the Odessa Development Corporation (ODC) was held on August 13, 2020 at 2:00 p.m. Odessa, Texas. Due to the COVID-19, the meeting was teleconferenced, as allowed by Governor Abbott’s executive order. The board was present through teleconference. Members present: Tim Edgmon, Gene Collins, Melanie Hollmann, Chris Cole, and David Boutin. Member absent: Mayor David R. Turner, ex-officio. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Natasha Brook, City Attorney; Robert Carroll, Assistant City Attorney; and Cindy Muncy, Assistant City Manager; and ODC Contractors: Craig Van Amburgh, CVA; Wesley Burnett, Economic Development; Tyler Patton, UTPB-SBDC; Ryan Peckham, UTPB Business Challenge; Renee Earls, Chamber of Commerce; James Beauchamp, MOTRAN; and Dustin Fawcett, MOTRAN; and Others: Council members Michael Shelton and Mari Willis; Sandra Woodley, UTPB; Chris Walker, Black Chamber of Commerce; Ben Quiroz, Hispanic Chamber of Commerce; Arnulfo Martinez, Hispanic Chamber of Commerce; 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. July 9, 2020 minutes. Motion was made by Mr. Collins and seconded by Mr. Boutin to approve the minutes with corrections. The motion was approved by unanimous vote. Resolution ODC 2020R-10 - Apergy Economic Development Agreement. Mr. Burnett stated that the Compliance Committee recommended a $1 million grant to Apergy, a local business. The busines would consolidate its Midland company to Odessa. The property would be expanded and the capital investment was $1.8 million. The company would retain 107 jobs and create 21 new jobs. The annual payroll would be $8.6 million. The grant was for a three-year payout. He stated that there were no physical assets purchased in Odessa but would be in the facility. Mr. Boutin recommended that the grant be for five years and spread the grant over the five years. He suggested the yearly payout be $300,000, $200,000, $200,000, $200,000, and $100,000. ODC Minutes August 13, 2020 Page 2 Motion was made by Mr. Boutin and seconded by Ms. Hollmann to approve the resolution with a five-year grant and payouts as recommended. The motion was approved by unanimous vote. Resolution ODC 2020R-11 - Amend UTPB Economic Development Agreement executed on April 19, 2017. Mr. Burnet stated that the Compliance Committee reviewed and worked with UTPB on clarifications of the workforce training request. The request was for $2.1 million to be paid out over three-years. Dr. Woodley stated that UTPB was investing in economic development. UTPB would leverage the funds with UTPB funds and a grant. UTPB would train the workforce as it was needed in our community. Mr. Burnett stated that the request could be an amendment to the current agreement or a new agreement. Mr. Cole and Ms. Hollmann preferred a separate agreement. Motion was made by Mr. Cole and seconded by Mr. Collins to approve the resolution as a new agreement for three-years. The motion was approved by unanimous vote. Contractors report: Economic Development: Odessa Chamber, CVA Advertising and Marketing, UTPB-America’s SBDC, UTPB-Business Challenge, MOTRAN, and City Administrative support. Mr. Burnett stated there were no updates due to the pandemic and economic downturn. He reported that there would be an expansion and a housing project. The business retention visits were going well as it was good public relations. The Small Business Assistance Program was positive. The sales tax was down by 33%. The airport planes and deplanes were slowly going up. Council member Shelton reported that five approvals were made for the Small Business Assistance grant program. Forty applications were received. Mr. Burnett stated marketing for the program included ODC billboards, city website, and the Chamber’s social media. Mr. Boutin asked if the applicants could identify how each found out about the program. Mr. Collins asked about the funds on capping the well on the former Summit site. Mr. Boutin reported that there was no cost to ODC. Mr. Cole asked for the individual profile information from the CARES Act. He wanted all to know about the opportunity of the funds. Marketing should continue to capture all levels of businesses. Mr. Van Amburgh reported that the Permian Fuels America campaign was kicked off. There were outdoor billboards, radio and TV spots. Interviewees would be selected for the podcast highlighting The Permian Fuels America. The landing page for The Permian Fuels America was active and linked to the ODC website. A petition was on the website to show support of the industry. The social media campaign was underway with the campaign. Mr. Collins commended Mr. Van Amburgh for the diverse, colorful and descriptive campaign. He stated it was an exceptional job. Mr. Patton reported on SBDC’s July activity. There were 341 counseling sessions and 258 counseling hours. There was two new business in Odessa. June’s capitalization was $7,169,437 and Odessa had $2,732,900. The capitalization was from disaster loans. There were two full time jobs for Odessa. There were 479 Odessa’s PPE loan/grants of $150,000 or more. A portion were SBDC clients. A newsletter was launched. There were seven workshops held virtually. The ethnicity of business owners was tracked with the seminars. There were sessions that included PPE training for clients. Mr. Peckham reported that Fox 4 News would highlight the Business Challenge winners and would be aired twice. He was working with City staff to streamline the payments. He suggested a time frame to spend the funds for future challenges. Mr. Collins was ODC Minutes August 13, 2020 Page 3 concerned with the criteria. One of the winners made the product out of state. Mr. Peckham stated that the business headquarter must have an Odessa zip code. Mr. Boutin stated that the Business Challenge was to help stimulate the economy and a time limitation needed to be discussed. Mr. Beauchamp reported that the Unified Transportation Program allocated $235 million for the Permian Basin area and $2 million will be used in Midland and Odessa projects. The funds dedicated to Midland and Odessa increased. In the past, the Odessa District received 1% to 2% of funds but since 2014-2019 the transportation funds increased by 3% for our area. He thanked the ODC board for the funds that has provided local leveraging for the projects. MOTRAN would keep moving forward with designing Loop 338 to a standard loop and make State Hwy. 302 a four-lane divided road. The improvements would provide mobility to major corridors. Mrs. Muncy reported on June’s financial activities. She reviewed the revenues and expenditures. She reviewed the payments to be made. Sales tax received for August was $896,000 which was 94% of the $12 million budget. Motion was made by Mr. Boutin and seconded by Mr. Collins to approve the financial statement. The motion was approved by unanimous vote. Development Finance Program Administrative Policy. Mr. Carroll reviewed the proposed changes to the policy. Motion was made by Mr. Collins and seconded by Ms. Hollmann to approve the Development Finance Program Administrative Policy with the changes. The motion was approved by unanimous vote. Resolution ODC 2020R-12 - FY 2020-2021 General Development Plan. Mr. Carroll reviewed the changes and updates made to the plan. Motion was made by Mr. Boutin and seconded by Ms. Hollmann to approve the resolution with the changes. The motion was approved by unanimous vote. Resolution ODC 2020R-13 - ODC FY 2020-2021 Budget. Mrs. Muncy reviewed the budget line items. Mr. Cole stated that after reviewing and meeting with the Black Chamber of Commerce, the budget fit under the ODC marketing line item. Mr. Collins stated that the proposal had information missing and it was their first proposal submission. Mr. Cole stated that their request was specific to ODC’s accomplishments and it would help building bridges and service. Mr. Boutin stated that ODC’s program was to target industrial manufacturing type of businesses. He suggested to provide a road map as they would collaborate with SBDC and make referrals to the Chamber. Mr. Burnett stated that there was a narrow scope on business types in assisting within the ODC guidelines. Mr. Cole wanted the Black Chamber to be successful. The proposal was in line from a marketing standpoint. Mr. Boutin suggested providing clear expectations for the contractors to be successful. Mr. Collins stated that there was more flexibility in the marketing line item. The Black Chamber of Commerce would engage in businesses and work with the Chamber in applications. Mr. Cole stated that with time and collaboration, the Black Chamber of Commerce would move into the ODC general budget. Mr. Edgmon stated to work with the Black Chamber of Commerce and the Hispanic Chamber of Commerce to guide them with the first year for both to be successful. Mrs. Muncy continued with the line items. Discussion was held on the ODC Minutes August 13, 2020 Page 4 entrepreneurial program. Mr. Collins stated it was difficult to get information and no control over checks and balances. He suggested to adjust the funded amount. Mr. Edgmon stated that there were problems with the contracts as the payout was not in a timely manner. Ms. Hollmann stated that the program was valuable, but the program needed an overhaul. MOTRAN was aggressive and provided outstanding results. Mr. Collins suggested to provide MOTRAN with a budget of $142,500. SBDC would partner with the Hispanic Chamber of Commerce to provide seminars in Spanish. CVA’s budget increase was due to the Permian Fuels America campaign. Mr. Van Amburgh stated that the campaign’s expenses were paid out of some of the current year’s budget. He stated that the budget could be reduced by $150,000. Mrs. Muncy provided some of the Business Challenge’s history funding awards. Mr. Boutin suggested to have the Business Challenge line item to zero and work out the issues in the program. The Business Challenge did not affect the SBDC as it was a different program. Ms. Hollmann did not want to eliminate the program. Mr. Cole suggested that the Black Chamber of Commerce and Hispanic Chamber of Commerce have a budget of $50,000 each. Dr. Quiroz stated that the Hispanic Chamber would help to achieve ODC’s goal. Mr. Martinez stated that the Hispanic Chamber would collaborate with SBDC. Mr. Walker stated that the Black Chamber of Commerce would work with the Chamber and Mr. Collins. The Black Chamber of Commerce wanted to assist the small businesses that were overlooked. It would be a conduit for the Chamber and work with the two chambers. The facade line item was reduced to $100,000. Mrs. Muncy explained the contingency line item and the marketing promotional limit. Motion was made by Mr. Cole and seconded by Mr. Collins to approve the resolution with changes to the budget. The motion was approved by unanimous vote. Mr. Edgmon would contact UTPB about the Business Challenge. Resolution ODC 2020R-14 – Economic Development Contractor Agreements for FY 2020-20201. Mr. Carroll stated that the ODC board approved the agreements to form. Each contractor agreement would reflect the approved budget amount in the contract. Motion was made by Mr. Collins and seconded by Mr. Boutin to approve the resolution. The motion was approved by unanimous vote. ODC Committee and Officer Reports. Mr. Burnett reported on the Perryman Study Task Force. The Permian Strategic Partnership would meet with the task force to discuss broadband. There was coordination with the school and the task force on the broadband issue. The Permian Fuels America message was moving forward. Discuss emergency assistance options related to the COVID-19 pandemic. The City was providing the Small Business Assistance program as it was tied to COVID-19. Mr. Burnett stated that the marketing was effective. Mr. Cole emphasized that people should not miss the opportunity of the program. The meeting adjourned at 4:43 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 August 2020 Projects 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 • 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 • Company re-evaluating timeline due to recent situation • No update 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 1 • 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 • No update 2019-01 • Project Rockhound is a 1000-megawatt solar project in western Ector County. $1 billion CapEx, process of incentives with taxing entities ongoing • Project has moved forward, ECHD and OC both approved tax abatements • County tabled and will consider again soon 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 • ODC Board and City Council approved an incentives package for the project • Agreement executed • Development delayed due to current situation • No update 2020-01 • DEF Plant • $2.5-3 capital investment • 15-20 jobs • Project in early stage of planning • Ongoing • No update 2020-02 • Site location consultants and staff conducted virtual site visit for a new heavy industrial manufacturing facility • 2,950 construction jobs during 3-4 year construction 2  • 250-380 permanent employees • $3-6 billion CapEx, 24/7 operation • Completed, follow up, over 250 questions on site, utilities, rail etc • Clarification requested, addressed • Zoom follow up, very favorable • Awaiting next steps with consultants and company • Possibility of larger project, $9 b`illion capex, possible 5,000 construction jobs for 5 years, up to 500 permanent jobs, average salary +/- $90K • Grow Odessa, Penwell property as possible location , ongoing discussions on property, road access, incentives • Ongoing 2020-03 • Apergy/ChampionX consolidation project, $1 million incentive, 20 new jobs with 100+ retained • $2 million CapEx • Approved by ODC and City 2020-04 • Gasket manufacturing and seal distribution company • CapEx $250,000 • 5 new jobs, 5 retained Local Business Retention and Expansion • Multiple local expansions in beginning stages • Project Who, food manufacturer, working on ODC application. Still plans for Odessa location, timeline extended due to current situation Odessa Partnership • No meeting in May due to current situation. No meeting in July. Looking at September meeting to catch up on activity of each entity. Business Retention and Expansion Visits • 3 new business consultations in office • 7 business visits out of office 3 Housing • OHFC approved for incentives on 216-unit multi-family project expansion on 87th Street. PSP has withdrawn project investment of $6 million due to recent economic situation, construction on hold. • 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. Project put on hold. • Approved two housing grants. 7 single family, 6 townhomes. Funding has begun. • LOA Land Development, 192 lot subdivision working on infrastructure grant application. Ongoing • Compliance looking at other possible projects Services and Other Activities • Ingham Economic Index May and June Reports sent via Mailchimp and posted to website • Odessa Development News / Economic Indicators for July sent via Mailchimp and posted to website • 2020 Apartment Survey complete • Demographic information to Daelyn Sumuel with Sewell Family of Companies • Demographic information to Juan with Walgreens • Property search for Jon Holverson with CitiDevelopment Group, developers for national convenience store chain which also operates travel centers 4  Partner Visits Information and Discussion Group Mtg Director Weekly Stakeholder Meeting Director Permian Basin MPO – Roa and Infrastructure Planning Director CARES Task Force Meeting Director and Staff TEDC’s PAC Committee Meeting Director Consultant Connect Virtual Meeting Director Education Partnership Leadership Team Meeting Director City Council Work Session Director and Staff Governor’s Small Business Webinar Staff First Basin Board Meeting Director Chamber Challenge Golf Tournament Director and Staff Chamber of Commerce Staff Meeting Director and Staff Chamber of Commerce Directors Meeting Director Wildcatters Trail Update Meeting Director and Staff AHA Community Stakeholders Meeting Director United Way Board Meeting Director 5  Odessa Economic Indicators 2020 Building Permits July 2020 Total Value 2019 Total Value New Single Family 83 $16,902,726 45 $9,277,695 New Commercial 4 $11,192,400 7 $7,780,707 Other 150 $15,461,482 108 $2,365,662 Totals 237 $43,556,608 250 $19,424,064 YTD Totals 1,348 $200,202,182 1,086 $264,265,776 Sales and Use Tax July 2020 2019 % Change City of Odessa $3,783,653 $5,906,411 -35.94% Totals YTD $34,153,325 $43,013,834 -20.60% Labor Market Statistics Permian Basin Rig Count July 2020 2019 Month 2020 2019 Civilian Labor Force 85,549 88,454 July 75 335 Total Employment 74,788 85,933 June 82 321 Total Unemployment 10,761 2,521 May 115 351 Unemployment Rate 12.6% 2.9% April 213 356 Payroll Employment Estimate 73,300 83,700 Midland International Air and Space Port MLS Statistics-Residential (SF/COND/TH) July 2020 2019 July 2020 2019 Enplaned 22,152 58,126 Total Sold 135 73 Deplaned 21,385 58,838 Dollar Volume $31,399,197 $43,691,196 Enplaned YTD 179,390 371,236 Total Sold YTD 765 925 Deplaned YTD 180,902 365,833 Volume YTD $182,027,095 $244,386,273 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 AUGUST 2020 ACTIVITIES STRATEGIC COMMUNICATION PLAN “The Permian Fuels America” campaign is fully underway and catching the attention of Odessans and legislators in Washington, D.C. The steering committee under Kirk Ed- wards continues to make headway in telling the challenging story how independent Texas oil and gas providers are being devastated by Saudi oil imports as important connections with the Trump administration are being built. The campaign will continue through the end of the year as we gain traction and see even more positive results. PODCAST/TV AD SERIES Podcast - Opportunity Odessa We are currently selecting new interviewees based on their relevance to the new cam- paign, and we will also spotlight local business people helped by ODC. TELEVISION Our “The Permian Fuels America” campaign continues with spots running on KOSA, KMID, KWES, and KPEJ news casts, as well as Telemundo and Univision. The three :30 spots, targeted to Persons 18 - 54 years of age, focus on the importance of the Permi- an Basin to America’s energy future. The spots also drive residents of the Permian Basin to the “The Permian Fuels America” website for more information on services available to citizens who need assistance to remain in Odessa and the surrounding area until the oil industry recovers, such as the city’s COBAP program. Also, a number of the sport- ing events that we originally had planned are now resuming their seasons and our spots will air as originally presented going forward. 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 OUTDOOR ADVERTISING Our outdoor advertising continues with our four TPFA billboards featuring oil and gas workers, oil rigs and pump jacks with our campaign theme and web address. They are following the brief schedule placed while President Trump visited Odessa mid-month welcoming him to our city. Also being featured periodically on our boards are the city’s billboard designs geared toward the on-going COBAP program for small businesses. These boards, in both English and Spanish, will stay in our rotation of messages until the available funds are exhausted. NEWSPAPER ADVERTISING “The Permian Fuels America” ads are running every other Sunday in the Odessa Amer- ican. In addition, TPFA campaign is being featured in small digital ads on the Odessa American’s web site. WEBSITE The new TPFA landing page is now active at thepermianfuelsamerica.com, and con- tains resources for local citizens, the objectives of the campaign and a petition that can be signed by residents of the Permian Basin. Over 140 people have signed the peti- tion to date, and we continue to track comments made on both the ODC website and TPFA site. With regard to our flagship website (odessatx.com), our metrics were flat this month, staying within 1-2% of last month’s numbers. The majority of our traffic this month came from organic search, which comprised 42% of visits, social media made up 32%, and direct website entry was 16%. Our top pages for views, in order, were the homepage, location-maps, the MRT article, “Study: Permian’s Economics Will Help Weather Down- turn” and the MRT article, “Oilfield Service Sector Expected to Get Leaner, More Effi- cient.” The two articles that received so much traffic were both linked in social media posts. Hosting the content of these articles on the ODC site, instead of sending traffic to the MRT website, has really improved our numbers. 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  SOCIAL MEDIA/DIGITAL MEDIA Overview Our social media committee meets every Monday via Zoom to discuss up coming so- cial media posts and what changes should be made for each week. Recently, we have featured our TPFA spots, posts featuring Peggy Dean discussing the small business loan program, Carlos Hernandez as a local businessman who is adapting his business to meet the changing marketplace, and Kirk Edwards as head of TPFA task force. In August, our overall social media engagement and shares across all platforms were mixed. Total social shares were up 76% and likes were up 44%, but impressions were down 30%. We continued the page likes campaign on Facebook, resulting in 51 new page likes, up almost 60%. Our Twitter impressions and profile visits were down due to a lower tweet volume, but we still gained 9 new followers. 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, particularly on post reach, which was up 35%, and likes were up 59%. Our campaigns resulted in 51 new page likes and reached a total of 28,547 people. Our post about the mass shooting reached 13,151 people alone and received a whopping 2,109 engagements. Twitter Over the last month on Twitter our metrics were down across the board, with the ex- ception of followers, which were up by 9. Though our metrics are down, most of that is due to a fewer number of tweets this month. 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 2,078 impressions and 45 visits to our profile. 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 Website Our website metrics were flat this month, staying within 1-2% of last month’s numbers. The majority of our traffic this month came from organic search, which comprised 42% of visits, social media made up 32%, and direct website entry was 16%. Our top pages for views, in order, were the homepage, location-maps, the MRT article, “Study: Permi- an’s Economics Will Help Weather Downturn” and the MRT article, “Oilfield Service Sector Expected to Get Leaner, More Efficient.” The two articles that received so much traffic were both linked in social media posts. Hosting the content of these articles on the ODC site, instead of sending traffic to the MRT website, has really improved our numbers. Info on new followers/likes: Facebook: 51 new page likes Twitter: 9 new followers The Permian Fuels America: Facebook: 244 followers Instagram: 121 followers Twitter: 55 followers LinkedIn page is up, but hasn’t been active long enough to provide meaningful data 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 August, 2020 Social Overview Facebook Overview Facebook Top Posts Twitter Overview Top Tweets Website Performance The Permian Fuels America Social Media Overview August 2020 Facebook Overview Facebook Top Posts Twitter Overview Top Tweets  UTPB SMALL BUSINESS DEVELOPMENT CENTER 2019-2020 New Business Start-Ups & Expansions August-20 ODESSA OTHER LOCATIONS ACTIVITIES Counseling New Businesses 2 New Businesses 5 838 Seminars 3 Sessions Am Am Full-Time Jobs 11 Full-Time Jobs 9 9 1 Ind/N/Alaskan Ind/N/Alaskan Asian/pac. Asian/pac. Part Time Jobs 0 Part Time Jobs 0 18 0 Islander Islander Black 86 Black 3 Total Jobs 11 Total Jobs 9 Hispanic 302 Hispanic 8 Non-Hispanic 372 Non-Hispanic 12 Total Clients 838 Total Attendees 21 Counseling 381 Training Hours 32 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 212 148 149 200 214 743 232 258 210 341 838 3545 3403 Counseling Hours 229 142 150 216 202 562 202 162 196 258 381 2699 2927 Seminars Presented 3 2 1 1 3 5 0 0 0 0 3 18 42 Attendees 90 14 11 20 48 227 0 0 0 0 21 431 736 Training Hours 180.0 91 22 40 96 34 0 0 0 0 32 495 1446 New Businesses 1 11 2 3 4 2 2 6 3 4 7 45 43 Odessa New Business 0 4 1 0 1 1 2 2 1 2 2 16 13 Capitalization $1,025,000 $3,709,600 $1,000,000 $273,000 $721,600 $490,000 $228,000 $435,827 $594,987 $7,169,437 $8,412,559 $24,060,010 $19,824,583 Odessa Capitalization $250,000 $3,265,000 $0 $50,000 $521,600 $0 $178,000 $408,827 $590,800 $2,732,900 $1,625,988 $9,623,115 $3,895,616 Full-Time Jobs 8 39 4 23 22 2 7 15 32 17 20 189 192 Odessa FullTime 4 19 2 4 0 1 4 2 2 2 11 51 70 Jobs Part Time Jobs 0 28 0 5 0 0 0 0 0 16 0 49 72 Odessa Part Time 0 25 0 0 0 0 0 0 0 0 0 25 24 Jobs Total Jobs 8 53 4 26 22 2 7 15 32 25 20 214 236 9/4/2020 KAM  ODESSA DEVELOPMENT CORPORATION BALANCE SHEET JULY 2020 ASSETS Investments - Local Government Pools $ 26,432,475 Investments - CDs and CDARs 3,233,570 Investments - Municipal Securities 11,894,923 Investments - Money Market 13,754,069 Interest Receivable - Municipal Securities 237,328 TOTAL ASSETS $ 55,552,365 LIABILITIES Accounts Payable 187,684 TOTAL LIABILITIES $ 187,684 FUND BALANCE Reserved - Short Term Commitments Due Within One Year Glazer's Beer & Beverage $ 226,998 West Texas Food Bank 558,075 Odessa College - 2nd Project Training Facility 822,391 UTPB - 2nd Project Training Facility 1,500,000 Total Short Term Commitments 3,107,464 Reserved - Long Term Commitments Due in More Than One Year FMC Technologies 152,798 Glazer's Beer & Beverage 680,995 Select Energy 55,123 West Texas Food Bank 146,866 UTPB - 2nd Project Training Facility 3,000,000 Downing Wellhead Equipment, LLC 1,640,000 Rack Industries, LLC 2,757,294 Kaige Industries, LLC 318,000 Total Long Term Commitments 8,751,076 Total Reserved 11,858,540 Assigned (TXDOT Projects) 9,135,890 Assigned (Workforce Housing Infrastructure Incentives) 4,987,774 Unreserved 29,382,477 TOTAL FUND BALANCE $ 55,364,681 TOTAL LIABILITIES AND FUND BALANCE $ 55,552,365  ODESSA DEVELOPMENT CORPORATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TOTAL BUDGET COMPARISON JULY 2020 TOTAL REMAINING BUDGET ACTUAL - YTD BALANCE REVENUES 4-A Sales Tax Receipts $ 12,000,000 $ 10,402,650 $ (1,597,350) Miscellaneous Income/Refunds - - - Interest Income 500,000 685,012 185,012 Gain and or (Loss) on Investments (200,000) (63,054) 136,946 TOTAL REVENUES $ 12,300,000 $ 11,024,608 $ (1,275,392) EXPENDITURES Supplies and Materials $ 1,500 $ 441 $ 1,059 Audit Services 35,000 40,300 (5,300) Special Services 202,200 201,800 400 Insurance 15,000 13,454 1,546 Bank Services 6,000 5,171 829 Administration Fee - City of Odessa 205,349 171,124 34,225 Contingencies 100,000 - 100,000 Contracted Economic Development Services Chamber of Commerce 852,280 852,280 - MOTRAN 142,500 142,500 - UTPB - Small Business Center 98,794 98,794 - Promotional Marketing 645,865 327,344 318,521 UTPB - SBDC Entrep. Contest 422,632 - 422,632 Façade Grants 250,000 - 250,000 Business Incentives 51,872,800 3,688,108 48,184,692 Infrastructure Grants 100,000 49,712 50,288 TOTAL EXPENDITURES $ 54,949,920 $ 5,591,028 $ 49,358,892 EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES $ (42,649,920) $ 5,433,580 $ 48,083,500 FUND BALANCE - AT BEGINNING OF YEAR $ 49,931,101 $ 49,931,101 $ - FUND BALANCE - AT END OF YEAR $ 7,281,181 $ 55,364,681 $ 48,083,500  ODESSA DEVELOPMENT CORPORATION CHANGES IN RESERVED FUND BALANCE JULY 2020 Reserved - Short Term Commitments Dates in Fiscal Years Current Month Prior Month Month End Change Pmt Began Expires FMC Technologies $ - $ - $ - 2017-18 2021-22 Select Energy - - - 2017-18 2021-22 Glazer's Beer & Beverage 226,998 226,998 - 2014-15 2018-19 West Texas Food Bank - - - 2016-17 2020-21 West Texas Food Bank-2nd Amendment 558,075 558,075 - 2019-20 2019-20 Odessa College - 2nd Project Training Facility 822,391 822,391 - 2017-18 2019-20 UTPB - 2nd Project Training Facility 1,500,000 1,500,000 - 2017-18 2021-22 Total Short Term Commitments $ 3,107,464 $ 3,107,464 $ - Reserved - Long Term Commitments Dates in Fiscal Years Current Month Prior Month Month End Change Pmt Began Expires FMC Technologies $ 152,798 $ 152,798 $ - 2017-18 2021-22 Glazer's Beer & Beverage 680,995 680,995 - Not started (5 year payout) Select Energy 55,123 55,123 - 2017-18 2021-22 West Texas Food Bank 146,866 146,866 - 2016-17 2020-21 Odessa College - 2nd Project Training Facility - - - 2017-18 2019-20 UTPB - 2nd Project Training Facility 3,000,000 3,000,000 - 2017-18 2021-22 Downing Wellhead Equipment, LLC 1,640,000 1,640,000 - Rack Industries, LLC 2,757,294 2,757,294 - Kaige Equipment, LLC 318,000 318,000 - Total Long Term Commitments $ 8,751,076 $ 8,751,076 $ - Total Reserved Fund Balance $ 11,858,540 $ 11,858,540 $ -  ODESSA DEVELOPMENT CORPORATION INVESTMENT SUMMARY JULY 2020 This investment summary report is in full compliance with the investment strategy as established per the City's Investment Policy and the the Public Funds Investment Act. The fair value for the beginning and end of the reporting period are as follows: CHANGES IN FAIR VALUE BEGINNING PURCHASE AND SALES ENDING INVESTMENT BALANCE AMOUNT INTEREST AMOUNT BALANCE GOVERNMENT POOLS $ 27,668,452 $ 756,731 $ 6,307 $ 1,999,015 $ 26,432,475 CD'S AND CDARS 3,229,325 - 4,245 - 3,233,570 SAVINGS AND MONEY MARKETS 13,396,076 340,000 17,993 - 13,754,069 MUNICIPAL BONDS 12,257,611 - (22,688) 340,000 11,894,923 AGENCY NOTES - - - - - TOTAL $ 56,551,465 $ 1,096,731 $ 5,857 $ 2,339,015 $ 55,315,037 Note: This investment report is prepared in accordance with Generally Accepted Accounting Principles (GAAP), and is in compliance with the City of Odessa's investments strategies in the investment policy, and with relevant provisions of the Public Funds Investment Act.  ODESSA DEVELOPMENT CORPORATION INVESTMENT PORTFOLIO JULY 31, 2020 Beginning of Month INVESTMENT TYPE YTM MATURITY PAR FAIR** Local Government Investment Pools TexPool 0.22% Open $ 20,603,361 $ 20,603,361 Logic 0.63% Open 7,065,090 7,065,090 Total Local Government Investment Pools $ 27,668,452 $ 27,668,452 Weighted Average Rate Per Pools Total 0.32% Money Market Investment Frost Money Market 0.10% Open 13,396,076 13,396,076 Total Money Market $ 13,396,076 $ 13,396,076 Weighted Average Rate Per MM Total 0.10% CD AND CDARs Investments AimBank - 17 Month CD 1.50% 1/31/20 $ 2,173,000 $ 2,183,958 BBVA CD 1.71% 12/15/19 1,032,140 1,045,367 Total CD and CDARs Investments $ 3,205,140 $ 3,229,325 Weighted Average Rate Per CD's Total 1.57% Municipal Securities Arizona ST B Tax 2.18% 7/1/20 $ 340,000 $ 340,000 Florida St Bd A Tax 2.64% 7/1/21 1,000,000 1,020,630 Dallas TX 2.21% 10/1/20 3,325,000 3,337,136 Center Tex ISD Tax 5.40% 2/15/21 1,000,000 1,025,980 Hudson Cnty NJ C-2 Tax 3.00% 9/18/20 1,000,000 1,000,800 Texas Tech University 1.95% 2/15/21 500,000 503,765 Texas St Trans 4.00% 8/27/20 5,000,000 5,029,300 Total Municipal Securities $ 12,165,000 $ 12,257,611 Weighted Average Rate Per Munis Total 3.30% TOTAL INVESTMENTS 0.98% $ 56,434,668 $ 56,551,465 ** Amount does not reflect prior period market adjustments and represents fair market value adjustment as of current period end only.  ODESSA DEVELOPMENT CORPORATION INVESTMENT PORTFOLIO JULY 31, 2020 End of Month INVESTMENT TYPE YTM MATURITY PAR FAIR** Local Government Investment Pools TexPool 0.21% Open $ 19,364,863 $ 19,364,863 Logic 0.42% Open 7,067,612 7,067,612 Total Local Government Investment Pools $ 26,432,475 $ 26,432,475 Weighted Average Rate Per Pools Total 0.26% Money Market Investment Frost Money Market 0.06% Open $ 13,754,069 $ 13,754,069 Total Money Market $ 13,754,069 $ 13,754,069 Weighted Average Rate Per MM Total 0.06% CD AND CDARs Investments AimBank - 17 Month CD 1.50% 1/31/20 $ 2,173,000 $ 2,186,706 BBVA CD 1.71% 12/15/19 1,032,140 1,046,864 Total CD and CDARs Investments $ 3,205,140 $ 3,233,570 Weighted Average Rate Per CD's Total 1.57% Municipal Securities Florida St Bd A Tax 2.64% 7/1/21 $ 1,000,000 1,019,680 Dallas TX 2.21% 10/1/20 3,325,000 3,333,778 Center Tex ISD Tax 5.40% 2/15/21 1,000,000 1,022,670 Hudson Cnty NJ C-2 Tax 3.00% 9/18/20 1,000,000 1,000,520 Texas Tech University 1.95% 2/15/21 500,000 505,475 Texas St Trans 4.00% 8/27/20 5,000,000 5,012,800 Total Municipal Securities $ 11,825,000 $ 11,894,923 Weighted Average Rate Per Munis Total 3.33% TOTAL INVESTMENTS 0.95% $ 55,216,684 $ 55,315,037 ** Amount does not reflect prior period market adjustments and represents fair market value adjustment as of current period end only.  RESOLUTION NO. ODC-2020R-__ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ODESSA DEVELOPMENT CORPORATION APPROVING AN ECONOMIC DEVELOPMENT AGREEMENT WITH GASKET & PACKINGS, INC.; AUTHORIZING THE EXECUTION OF ANY DOCUMENTS NECESSARY TO IMPLEMENT THIS RESOLUTION; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Gasket & Packings, Inc. (the “Company”) proposes to operate an Industrial Sealing business which includes gasket manufacturing, mechanical seal distribution, torque tool equipment, field services etc., classified as #423990 of the North American Industry Classification System (NAICS) in Ector County, Texas, and increase primary jobs which satisfies the requirements of Sections 501 and 504 of the Local Government Code; and WHEREAS, the Company plans to remodel a newly leased building that Company will occupy. The remodel will include more office space, more warehouse space, more fabrication space and in house torque tool calibration lab. The total capital investment will be approximately $250,000; and WHEREAS, the Company will retain 5 jobs with an annual payroll of $154,200 and will add 5 more jobs with an annual payroll of $293,340 during the first year. Over the next 5 years, this will translate in to approximately $447,840 in annual payroll; and WHEREAS, based on the number of jobs and payroll over the next 5 years, the Company qualifies for a total grant of $125,000 to be paid out over the 5-year-period if the Company maintains compliance with all terms and conditions of the agreement; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ODESSA DEVELOPMENT CORPORATION: Section 1. That the statements of fact in the Preamble are found to be true and correct and are approved as findings. Section 2. That an Economic Development Agreement with Gasket & Packings, Inc. in the amount of $125,000 is approved and authorized for execution. Section 3. That this resolution shall be effective at the time of its adoption. The foregoing resolution was approved and adopted on the 10th day of September, A.D., 2020, by the following vote: Tim Edgmon ___ Gene Collins ___ Melanie Hollmann ___ David Boutin ___ Chris Cole ___ CB: ECONOMIC-ODC\RESOLUTIONS\2020\Approving EDA with Gasket & Packings, Inc. Page 1 of 2  Approved the 10th day of September, A.D., 2020. Tim Edgmon, President APPROVED AS TO FORM: ATTEST: Natasha Brooks, City Attorney as Attorney for Norma Aguilar-Grimaldo, City Secretary as ODC Board Assistant Secretary for ODC Board CB: ECONOMIC-ODC\RESOLUTIONS\2020\Approving EDA with Gasket & Packings, Inc. Page 2 of 2  Application for Economic Development Assistance The completion of the following 6-pages of information is required for all projects requesting economic development assistance from the Odessa Development Corporation. Provide information in all blanks of the application form, including the check list for Required Information on page 7. If more space is needed, attach additional pages to the corresponding information. For example, to list employees, number the attachment #5 Employment Information and attach it to page 5. Your signature is required on page 2 and page 7. If the information requested is Not Applicable, enter "N/A" in the space. Incomplete applications will not be considered for assistance. After the application is reviewed, the Odessa Development Corporation may require additional information to indicate the financial abilities or other factors of the company. Three methods to submit the Application: Submit the completed application by mail: Odessa Chamber of Commerce, Economic Development Department PO Box 3626 Odessa, Texas 79760 Submit the completed application in person to: 700 N. Grant, Suite 200 Odessa, Texas 79761 (Bank of America Building) Submit the completed application via email to: wburnett@odessaecodev.com This application must be filed with the Odessa Chamber of Commerce, Economic Development Department prior to making public announcement or filing Building Permit with the City. If you have questions about this application, please contact the Economic Development Department at (432) 333-7880. 1 I. Contact Information Applicant/Business Name (Exact legal name i.e. Corporation, LLC, Limited Partnership) Gasket & Packings, Inc. Mailing Address PO Box 229 Physical Address (If different from mailing address) 405 E. 10th St. City State Zip Code 79007 Borger TX Phone Number/ Office Fax Number 806-464-8968 Phone Number Cell 806-577-3721 Email Address Website mmurry@sealing.com www.sealing.com Applicant's Representative Title Michael Murry General Manager Odessa Development Corporation and the City of Odessa are public entities subject to the Open Records Act (CH. 552, Gov. Code). Applicant waives all rights to confidentiality regarding information it conveys to the Chamber, ODC, and the City of Odessa, unless it identifies in writing the information that is subject to confidentiality and such non-disclosure does not violate the Open Records Act. 8/3/2020 Applicant's Signature Date 2 II. Project Information 1.Description of the Project and Type of Business 2. the estimated new capital investment for equipment and furniture; 3. percentage of physical assets purchased in Odessa; 4. list of new machinery, equipment and other physical assets. 1. Type of business - Industrial Sealing - includes gasket manufacturing, mechanical seal distribution, torque tool equipment, field services and much more. Project includes remodeling a newly leased building that GPI has not moved into yet. The remodel will include more office space, more warehouse space, more fabrication space and our in house Torque tool calibration lab. 2. $250,000 4. Bldg Remodel, Calibration Lab, Office furniture III. Facility Information Current Property Values in Odessa Building Equipment Leasing $318,565 Address and Legal Description of each Address Of Location location (New or Expansion) circle one 2645 Kermit Hwy, Odessa, TX. 79763 1720 E 7th St., Odessa TX. 79761 Estimated New Capital Investment for Estimated Dates for Construction Building Construction Start: Complete: $250,000 12/1/2021 9/1/2020 3 IV. Company Information Description of the Company Year Established Industrial & Fluid Sealing 1982 Gasket Manufacturing Mechanical Seals Torque Tools, Rental, calibrations, repair, new equipment Much more NAICS Code1 NAICS Code Description 423990 Other Miscellaneous Durable Goods Merchant Wholesalers Annual Sales Annual Sales in Odessa2 11 Million 3 million Projected Increase in sales Projected Increase in Odessa sales 25% 50-75% Financial & Supplier References Length of time applicant commits to Odessa Please see attached indefinitely Notes 1. NAICS Code: North American Industrial Classification Code. The NAICS manual is available for use at the Chamber. 2. Annual Sales in Odessa: Estimated sales to Odessa customers. If the company has no Odessa customers, enter "none." 4 V. Employment Information List all Current/Transfer Full Time Employees and the Location of employment. A. Include the number of Salaried workers and Annual Salary for each position. B. Include the number of Hourly workers with hourly Wage and avg. number of hours. A. Salaried Employees: Job Title/Position Number of Employees Annual Salary Job location Sales 1 Commission$110k Odessa Store Supervisor 1 $58,000 Odessa B. Hourly Employees: Job Title/Position Wage Number of Employees Annual Salary Job location Warehouseman $17.00 1 $35,360 Odessa Customer Service $14.75 / $14.50 2 $30,680 / $30,160 Odessa List all New Full Time Employees Resulting from Expansion/Relocation and/or New Location in Odessa. A. Include number of Salaried workers and Annual Salary. B. Include number of Hourly workers with hourly Wage and avg. number of hours. A. Salaried Employees: Job Title/Position Number of Employees Annual Salary Job location Salesman 1 $100,000 Odessa Calibration 1 $ 75,000 Odessa B. Hourly Employees: Job Title/Position Wage Number of Employees Annual Salary Job location Store Supervisor $24hr 1 $50,000 Odessa Fabricator $20hr 1 $41,600 Odessa Delivery $13hr 1 $27,040 Odessa Provide Date when Expected to Reach Full Employment (month/year) Jan/2023 5 VI. Economic Development Assistance Request(s) Financial Assistance Grant Requested from Odessa Development Corp. ($$ Amount) $250,000 How will this funding be used for remodel and in house calibratioin lab. Tax Abatement Requested Number of Years of First Year of Abatement from Taxing Entities Abatement* □ Yes □ No Other Assistance Requested from City Council: Enterprise Zone Sales Tax Rebate □ Yes □ No *Abatement Schedule Requested: Please refer to the City of Odessa Tax Abatement policy statement to determine the applicable tax abatement schedule, found on page _____ of _____. Tax abatements are subject to approval from each taxing entity: City of Odessa, Ector County, Ector County Hospital District, and Odessa College. Ector County Independent School District is excluded from tax abatement by Texas law. Check list for a Completed Application Items 1 – 6 of the printed application, pages 2-6: cx 1. Contact information. c x 2. Summary of Project (including detailed description of construction and a detailed list of machinery, equipment and physical assets.) c x 3. Facility Information cx 4. Company Information cx 5. Employment Information to include list of current employees and list of new employees expected to be created. c 6. Request for Economic Development Grant and/or Tax Abatement and/or Enterprise Zone City Sales Tax Rebate 6 Items to be Submitted by Applicant Existing Enterprise Only c 7. Business Plan, to include Pro Forma financial statement, cash flow forecast and supporting assumptions. c x 8. Prior 2 years and current Year-To-Date financial statements, to include Balance Sheets and Statements of Income & Expenses, and Current Receivable Aging Report. Audited financial information is preferred, if available. c x 9. Income Tax Returns for prior three years. c 10. Letter addressing Tax Abatement Minimum Standards (if applicable) c x 11. Resumé of owner(s) and principal manager(s). c 12. Personal financial statement required, if an individual owns 20% of the company. Items to be Submitted by Applicant New Enterprise Only c 7. Business Plan, to include Pro Forma financial statement, cash flow forecast and supporting assumptions. c 8. Current Year to Date financial statements for all equity owners including personal financial statement for any individuals and balance sheets and statements of income and expenses for any entities, and current receivables aging report c 9. Income Tax Returns for prior three years for all equity owners. c 10. Letter addressing Tax Abatement Minimum Standards (if applicable) c 11. Resumé of owner(s) and principal manager(s). ______________________________________________ Applicant's Signature, attesting all information is provided and accurate This application must be filed with the Odessa Chamber of Commerce, Economic Development Department prior to making public announcement or filing Building Permit with the City. If you have questions about this application, please contact the Economic Development Department at (432) 333-7881. Revised 08/21/2019 7