Odessa Development Corporation

PUBLIC NOTICE ODESSA DEVELOPMENT CORPORATION BOARD OF DIRECTORS MEETING Thursday, December 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 November 12, 2020 ODC Board 3. Contractors reports: A. Economic Development Dept.-Odessa Chamber ...Wesley Burnett B. CVA Advertising & Marketing ..........................Craig Van Amburgh C. Black Chamber of Commerce………………………….Gloria Wright D. Hispanic Chamber of Commerce………………….Sarina Banuelos E. UTPB-America’s SBDC ....... Tyler Patton, Sr. Business Consultant F. MOTRAN ....................................... James Beauchamp, President G. City Administrative Support; Financials ..................... Cindy Muncy 4. 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 5. Discuss emergency assistance options related to the COVID-19 ODC Board pandemic 6. Update Task Force Report Kirk Edwards/Tim Edgmon 7. 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 November 12, 2020 A regular meeting of the Odessa Development Corporation (ODC) was held on November 12, 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, David Boutin and Chris Cole and Mayor Pro Tem Dewey Bryant, ex-officio. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; 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; Dustin Fawcett, MOTRAN; Arnulfo Martinez, Odessa Hispanic Chamber of Commerce; and Gloria Wright, Black Chamber of Commerce; and Others: 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. October 8, 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, Black Chamber of Commerce, Hispanic Chamber of Commerce, UTPB-America’s SBDC, MOTRAN, and City Administrative support. Mr. Burnett reported that there was a new project, but details would be provided soon. The company was moving forward for the tax abatements. The site was the Penwell property. The City’s Small Business Assistance Program was successful, and the funds were distributed. The sales tax continued with a downward trend. Mr. Collins asked about the follow-up on the water needs for the new project. Mr. Burnett stated that the CRMWD was addressing the projects water needs and the company was not concerned with the water. Mr. Collins stated that City staff should be included in the water discussions. Mr. Van Amburgh reported that TV spots were completed with the COBAP program. The Permian Fuels America campaign was back on the TV sports. New podcasts were airing featuring Kirk Edwards, Willie Taylor, and Peggy Dean. The television spots continued airing on sports channels. There were two new television sports featuring contact information for organizations that offer services for the unemployed. He discussed the website and social media numbers. ODC Minutes November 12, 2020 Page 2 Ms. Wright stated that the Black Chamber of Commerce agreement had to be updated and was waiting to hear from the City. Mr. Martinez stated that the Hispanic Chamber of Commerce agreement was executed and delivered. Mr. Carroll stated that the Chamber had to request funding from the Finance Department. Mr. Patton reported on SBDC’s October activity. There were 496 counseling sessions and 214 counseling hours. There was one new business in Odessa and the capitalization was $902,000. There were 6 seminars presented with 107 attendees through Zoom meetings. He outlined the upcoming seminar topics. Mr. Fawcett reported that a broadband meeting was held with ECISD. Information would be sent to students and families. He stated a company was going to install towers in the area to improve the service. There was an opportunity for public and private partnerships. Service would be provided where it was needed. The freight study was completed. The study found that 106,000 truck trips were not included. He outlined the number of truck trips for a well. With the truck trip numbers, the road deterioration and the freight metrics will be included in the TxDOT system. Mr. Fawcett stated that West Odessa would have expanded corridors that would provide for economic development opportunities. The Hwy. 302 study provided for a four-way divided highway and the Hwy. 349 study provided for a four-lane divided roadway. Mrs. Muncy reported that the year end adjustments were being wrapped up. The board would be provided with the September and October financial reports at the next meeting. She reported on the sales tax with ODC receiving $874,162. It was down from last year. Resolution ODC 2020R-17 – Odessa College economic development agreement sixth incentive payment based on compliance. Mr. Carroll stated that this would be the sixth and final payment for the training grant that was awarded to Odessa College. The total grant was for $8 million. He reviewed the prior payments. An audit was completed, and it met requirements. He stated that 850 students completed the program. The final payment was for $500,000. Motion was made by Mr. Cole and seconded by Mr. Collins to approve the resolution. The motion was approved by unanimous vote. Resolution ODC 2020R-17 – Weaver contract to conduct the annual ODC audit. Mrs. Muncy stated that the Weaver contract was a continuation for an ODC audit. The fee was $23,000 and it would include an Economic Development audit for $6,700. Mr. Boutin asked about a request for proposals. Mrs. Muncy explained that it was not required but proposals were received about seven years ago. The City converted to a new system last year and the auditor needed to be familiar due to the transition from an old to the new system. Proposals will be requested next year. She explained the audits from the Chamber of Commerce. Other contractors have audits performed. Motion was made by Mr. Boutin and seconded by Mr. Cole to approve the resolution. The motion was approved by unanimous vote. ODC Committee and Officer Reports. The committees have not met. Mr. Carroll stated that the DOI Design Committee meets on as needed basis. New applications were submitted, and the committee would be reviewing soon. Mr. Burnett stated that the Tax Incentive Committee would meet soon. ODC Minutes November 12, 2020 Page 3 Discuss emergency assistance options related to the COVID-19 pandemic. No discussion. Task Force Report update. Mr. Edgmon stated that a report would be given next month. Mr. Boutin stated that the Permian Fuels America strategy may change with the upcoming city runoff election. Mr. Edgmon will check on the committee and a joint meeting with the City Council regarding the bylaws. The meeting adjourned at 2:44 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 November 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 2019-03 • 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 • 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 2 • Possibility of larger project, $9 billion 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 • Site visit October 6th, meetings with stakeholders and property review • Continuing forward, contractor in Odessa doing research and engineering field work • Moving forward, incentive discussions, future visit planned 2020-03 • Apergy/ChampionX consolidation project, $1 million incentive, 20 new jobs with 100+ retained • $2 million CapEx • Approved by ODC and City • Contract adjustments being considered • ODC and council approved changes to terms • Contracts currently being reviewed 2020-04 • Gasket manufacturing and seal distribution company • CapEx $250,000 • 5 new jobs, 5 retained • ODC and city approved $125K incentive 2020-05 • Data center project • 50-100K acres within 2-4 miles of a substation • Ongoing • No update 2020-06 • $750 million CapEx • 200+/- jobs • Consultant doing due diligence for possible community incentives 3 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 • Project considering Permian Basin for oilfield waste solution facility Odessa Partnership • No meeting in May due to current situation. No meeting in July. Looking at 2021 meeting to catch up on activity of each entity. Business Retention and Expansion Visits • 4 new business consultations in office • No business visits out of office 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 • August Ingham Economic Index report sent via Mailchimp and posted to website • Demographic Information sent to Al Escamilla, Rig ID • Demographic Information sent to Shem Culpepper, First Basin Credit Union 4  Partner Visits Information and Discussion Group Mtg Director Weekly Stakeholder Meeting Director ECISD Meal Delivery Staff Chamber of Commerce Directors Meeting Director OU-EDI Staff SPAG CORE for High Ground Director Chamber of Commerce – Brainstorm Session Director and Staff TEDC – Forward Planning Director Early Childhood Action Network / Coalition Meeting Director Consultant Connect Virtual Meeting Director Presidents Advisory Council Director Education Partnership Leadership Team Meeting Director PB Rehab Board of Directors Meeting Director Chanber Education Committee Director and Staff OC Welding Technology Advisory Staff TEDC New Member Orientation Director ECISD Student Meal Delivery Staff 5 United Way Board Meeting Director Governors Office EDT & High Ground Economic Development Updates Director THBI Presidents Call Director 6  Odessa Economic Indicators 2020 Building Permits September 2020 Total Value 2019 Total Value New Single Family 43 $9,303,900 77 $14,801,605 New Commercial 2 $715,163 6 $8,747,404 Other 139 $25,844,078 87 $15,548,320 Totals 184 $35,863,141 170 $39,097,329 YTD Totals 1,745 $262,936,451 1,420 $322,480,948 Sales and Use Tax October 2020 2019 % Change City of Odessa $3,886,046 $5,925,412 -34.42% Totals YTD $46,268,990 $61,352,806 -24.59% Labor Market Statistics Permian Basin Rig Count October 2020 2019 Month 2020 2019 Civilian Labor Force 86,375 88,389 October 87 307 Total Employment 76,561 85,963 September 81 310 Total Unemployment 9,814 2,426 August 77 329 Unemployment Rate 11.4% 2.7% July 75 335 Payroll Employment Estimate 74,400 84,000 Midland International Air and Space Port MLS Statistics-Residential (SF/COND/TH) October 2020 2019 October 2020 2019 Enplaned 29,155 55,884 Total Sold 147 135 Deplaned 28,096 56,847 Dollar Volume $35,214,619 $32,199,759 Enplaned YTD 258,540 537,891 Total Sold YTD 1,176 1,364 Deplaned YTD 259,415 435,398 Volume YTD $279,849,263 $353,486,150 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 NOVEMBER 2020 ACTIVITIES PODCAST/TV AD SERIES Podcast - Opportunity Odessa New podcasts are currently airing featuring Kirk Edwards, Willie Tyler, and Peggy Dean. TELEVISION Our “The Permian Fuels America” campaign continues with spots running on KOSA, KMID, KWES, KPEJ, Telemundo and Univision in early morning news, 5:00 PM, 6:00PM and 10:00 PM newscasts. In addition, our spots are airing in the resumed sporting events for NFL football, and PGA Golf. Two new television spots were written and produced that began airing in mid-No- vember. Both spots feature the names and how to contact organizations and groups that are offering services for the unemployed such as retraining, child care, food distri- bution, and more. In addition, statistics and graphics are included in both spots em- phasizing how important the Permian is financially to the state of Texas (in severance taxes) and the amount of reserves the Permian has (as compared to Alaska) to show the importance of scale. OUTDOOR ADVERTISING Our outdoor messages continue to appear on three highly-visible locations: 8th & Dixie and Kermit Highway & Andrews Highway in Odessa, and on I-20 between Odessa & MIdland. 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 NEWSPAPER ADVERTISING “The Permian Fuels America” ads continue to run every other Sunday in the Odessa American. In addition, the TPFA campaign continues to be featured in small digital ads on the Odessa American’s web site. WEBSITE Our website metrics were down in November. Last month 40% of our traffic came from social media. This dropped to only 15.8% in November. The largest source of traffic in November was organic search. Our top pages for views, in order, were location-maps, the homepage, demographics, and properties. SOCIAL MEDIA/DIGITAL MEDIA Overview In November, ODC’s overall social media engagement and shares across all platforms were down, after a particularly successful month in October. We continued the page likes campaign on Facebook, resulting in 12 new page likes. Our Twitter impressions and profile visits were down due to a lower tweet volume, and we gained 2 new follo- wers. Facebook Over the last month on Facebook, we have continued to generate content from rele- vant articles of local news organizations. Facebook metrics in October were extremely high, particularly on page likes, which were up 438%, and views were up 158%, so this month shows a decline after such a sharp increase. Our campaigns resulted in 12 new page likes and reached a total of 17,416 people. Twitter We have continued to tweet the same content we share on Facebook to engage new and existing followers as well as retweeting relevant content. Over the last month on 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 Twitter our ODC metrics were down after a particularly good month in October, and due to a lower tweet volume. Permian Fuels America The Permian Fuels America social media was positive in November, with Facebook reach and engagement up, and Twitter profile visits up 300%. We received 35 new pe- tition signatures, an increase over last month. We should be reaching 300 total signatu- res within the next two months. ODC: Facebook: 12 new page likes Twitter: 2 new followers The Permian Fuels America: Facebook: 13 new page likes Instagram: 31 new followers Twitter: 78 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 November, 2020 Social Overview Facebook Overview Top Facebook Posts Twitter Overview Top Tweets Website Performance Permian Fuels America Social Overview TPFA Facebook Overview TPFA Top Facebook Posts TPFA Twitter Overview TPFA Top Tweets TPFA Website Overview  UTPB SMALL BUSINESS DEVELOPMENT CENTER 2020-2021 New Business Start-Ups & Expansions November-20 ODESSA OTHER LOCATIONS ACTIVITIES Counseling New Businesses 3 New Businesses 3 497 Seminars 5 Sessions Am Am FTE's 4 FTE's 10 24 0 Ind/N/Alaskan Ind/N/Alaskan Asian/pac. Asian/pac. 14 0 Islander Islander Black 64 Black 4 Hispanic 153 Hispanic 30 Non-Hispanic 319 Non-Hispanic 30 Total Clients 497 Total Attendees 45 Counseling 284 Training Hours 45 Hours Cumulative End of Year 2020-2021 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 2019/20 Totals Totals Counseling Sessions 496 497 0 0 0 0 0 0 0 0 0 0 993 3,731 Counseling Hours 214 284 0 0 0 0 0 0 0 0 0 0 498 2604 Seminars Presented 6 5 0 0 0 0 0 0 0 0 0 0 11 27 Attendees 107 45 0 0 0 0 0 0 0 0 0 0 152 393 Training Hours 180.0 45 0 0 0 0 0 0 0 0 0 0 225 1079 New Businesses 4 6 0 0 0 0 0 0 0 0 0 0 10 48 Odessa New Business 1 3 0 0 0 0 0 0 0 0 0 0 4 19 Capitalization $3,034,539 $2,701,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,735,539 $28,630,819 Odessa Capitalization $902,000 $59,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $961,000 $11,281,624 Total FTE's 15.00 14.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 29.00 237.50 12/1/2020 KAM