Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS January 14, 2021 A regular meeting of the Odessa Development Corporation (ODC) was held on January 14, 2021 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. Member absent: Mayor Joven, 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; Paul Garza, Odessa Hispanic Chamber of Commerce; and Chris Walker and Gloria Wright, Black Chamber of Commerce; and Others: Gregory Williams, Dick Sivalls, Sheila Perry, Tracy Jones, Ken Zartner, Nicole Hays, Kris Crow, 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. December 10, 2020 minutes. Motion was made by Mr. Boutin and seconded by Mr. Collins to approve the minutes. The motion was approved by unanimous vote. Contractors report: Economic Development Department - 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 Project Sabre was on hold due to the pandemic. There were no updates but there were local visits and Zoom meetings. The sales tax was down by 30%. Mr. Van Amburgh reported that there were 15 podcasts about Odessa. The Permian Fuels America would be featured on NFL playoff games and the super bowl. There were three outdoor advertising locations. Newspaper advertising ran every other week. With the website, page views were down due to the holiday season. Mr. Walker reported that the Black Chamber of Commerce received two installments, but funds have not been used. A separate account will be made for the ODC funds to provide transparency on activity. Mr. Edgmon offered assistance if needed. Mr. Collins ODC Minutes January 14, 2021 Page 2 asked if SBDC has contacted the Black Chamber. Mr. Walker reported that they have not been contacted. Mr. Patton needed the contact information. Mr. Edgmon asked that a meeting be held with SBDC and the Black Chamber prior to the next ODC board meeting. Mr. Garza was the new CEO for the Hispanic Chamber of Commerce. He spoke to Mr. Patton and would cosponsor events with SBDC to reach out to the community. There would be events held in Spanish. Mr. Edgmon welcomed Mr. Garza. Mr. Garza provided his background information. He served on the Hispanic Chamber board, a freelancer in marketing and had experienced with the non-profit organizations. Mr. Patton reported on SBDC’s December activity. There were 324 counseling sessions, and Odessa’s capitalization was $419,000. He identified new businesses. There were three seminars presented with 33 attendees. The Zoom seminars provided flexibility and it was easier for attendees to attend. He reported that assistance was given to fill out the applications for the CARES Funding. Advertising for the assistance was done through social media and contacts from the financial institution lenders. Mr. Fawcett reported that MOTRAN had its audit completed. MOTRAN would advocate for road issues with over 30% of all freight in Texas came through the Permian Basin. The leveraging report was being compiled to include dates for the projects. Projects listed after 2030 were moved up with the leveraging of funds. MOTRAN was not part of the allocation process. MOTRAN has contacted the newly elected City officials. Mr. Collins asked if an ODC sign could be posted at the projects that ODC funded. Mr. Fawcett reported that a sign could not be placed at the projects. Mrs. Muncy reported on November financial reports. There was $58,150,003 in total assets with total reserved of $14,958,540. Sales tax was $1,651,371 for the year. For January, the sales tax was down. There were no changes in the reserved fund balance. She was working on options for the investments. ODC Committee and Officer Reports. No discussion. UTPB third incentive payment based on compliance with the Economic Development Agreement. Mr. Edgmon stated that the Weaver report was not received. The board would consider at a later meeting. Resolution No. ODC-2021R-01 – Glazer’s Beer and Beverage second incentive payment based on compliance with the Economic Development Agreement. Mr. Carroll reported that the requirements were met for the second payment of $226,998.20. Glazer reported full time employees of 131 which was over the required number. Mr. Boutin left the meeting. Motion was made by Mr. Collins and seconded by Ms. Hollmann to approve the financial report. The motion was approved by unanimous vote. Motion was made by Ms. Hollmann and seconded by Mr. Collins to approve the resolution. The motion was approved by unanimous vote. Resolution No. ODC-2021R-02 – Odessa College economic development agreement for the construction of a new Health Sciences Building. Dr. Williams ODC Minutes January 14, 2021 Page 3 provided background information on the proposed Health Sciences Building. He stated that the $40 million facility would educate and train healthcare workforce. The project was a partnership with the local hospitals. The original request was for $18 million. He stated that Odessa College counted on the community for youth facilities and the facilities would provide for a modern-day healthcare. He understood the constraints of the economy with the pandemic. Mr. Edgmon respected the Compliance Committee’s recommendation of $5 million. Ms. Hollmann was comfortable with the Compliance Committee’s recommendation. She stated that the committee reviewed and considered the reserves. Mr. Collins wanted to hear a report from the Compliance Committee’s Chair. He asked about the timeline for construction. Dr. Williams stated that there was time. Mr. Burnett stated that the Chair, Jefferson Cox, was quarantined and could not make the meeting. He reported that the Committee reviewed, in detail, the request. Mr. Carroll stated that there were past amendments to agreements. There was the ability to amend, if needed. Motion was made by Ms. Hollmann and seconded by Mr. Collins to approve the resolution with any possible future amendments. The motion was approved by unanimous vote. Tabled - Ellen Noel Art Museum economic development agreement. Mr. Burnett reported that the Compliance Committee reviewed the request in detail and recommended a $600,000 grant from the $1 million request. Mr. Sivalls stated that the museum was 35 years old and the update would include outside improvements and reuse of space. The project investment was $12 million. Ms. Perry stated that the Museum had unique space, open over 300 days a year, provided tours free of charge, and served many events. The added space would provide for a generated revenue stream. The Museum partnered with other cultural organizations, fulfilled an educational mandate, and supported small businesses and the new convention center. She thanked the ODC for the support. Mr. Collins asked if there were other ODC funding categories that could be used such as the marketing. Mr. Burnett stated that the project fit the usage of libraries and museums. The marketing funds had a 10% limit and most of the funds were allocated for other efforts. Mr. Crow asked how the request fit into the North American Industry Classification System (NAICS). He understood that the project was under the Type B tax. Mr. Carroll explained that the request fit under the creation of primary jobs. Mr. Crow stated that ODC was originally created to diversify Odessa out of the oil and gas. He cautioned the board that it was not a permissible project to fund. Mr. Carroll stated it was allowed to spend funds in creating primary jobs. He explained the NAICS Code. Ms. Hollmann had questioned the project if allowed and understood that it was discussed and legally allowed. It was not accurate that it was not an allowable expenditure. Motion was made by Mr. Collins to approve the resolution. The motion died for a lack of a second. Mrs. Hollmann preferred to have the other board members present to discuss the request. Mr. Cole joined the meeting at 3:02 p.m. Mr. Cole agreed to discuss at the next meeting. Motion was made by Ms. Hollmann and seconded by Mr. Cole to table the item until the next meeting. The motion was approved by unanimous vote. Discuss emergency assistance options related to the COVID-19 pandemic. No ODC Minutes January 14, 2021 Page 4 discussion. Permian Fuels America Task Force Report update. Mr. Edgmon stated that a meeting was held with Kirk Edwards and strategic ideas were being developed. Contacts were being confirmed in Washington, D.C. Motion was made by Ms. Hollmann and seconded by Mr. Collins to adjourn the meeting. The motion was approved by unanimous vote. The meeting adjourned at 3:05 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Tim Edgmon City Secretary President