Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS August 12, 2021 A regular meeting of the Odessa Development Corporation (ODC) was held on August 12, 2021, at 2:00 p.m. in the Council Chambers, 5th floor, City Hall, 411 W. 8th St. Odessa, Texas. Members present: Tim Edgmon, Melanie Hollmann, David Boutin, Larry Robinson, Chris Cole, Kris Crow and Jeff Russell. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Natasha Brooks, City Attorney; and Cindy Muncy, Assistant City Manager; Alexa Moulakis Downtown Odessa Event Coordinator; Larry Fry, Director of Finance; Michael Marrero, City Manager; and Christina Buhnerkempe, Legal Assistant. ODC Contractors: Wesley Burnett, Economic Development; Tyler Patton, UTPB- SBDC; Craig Van Amburgh, CVA; James Beauchamp, MOTRAN; Sarina Banuelos, Odessa Hispanic Chamber of Commerce; Chris Walker, Black Chamber of Commerce; and Renee Earls, Odessa Chamber of Commerce; and Others: Council members Steven Thompson and Tom Sprawls; Ben Quiroz, Hispanic Chamber of Commerce; Steven Beach, UTPB, and other interested citizens. A quorum being present, Mr. Edgmon called the meeting to order, and the following proceedings were held: Mr. Burnett gave the invocation. July 8, 2021 minutes. Motion was made by Mr. Boutin and seconded by Mr. Russell to approve the minutes as corrected. The motion was approved by unanimous vote. Contractors’ reports: 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 - Financials. Mr. Burnett reported that Nacero worked on the mineral and surface site and there was positive response. Groundbreaking would be held in November and December. Mrs. Banuelos reported that the Color Fun Run had 300 participants and was a successful event. The Chamber was speaking with Chihuahua representatives for teachers’ visas. Dr. Quiroz stated that the Hispanic Chamber of Commerce would hold its banquet in September. He stated that there were administrative changes and the Chamber was moving forward. Mr. Cole arrived at 2:06 p.m. ODC Minutes August 12, 2021 Page 2 Mr. Patton reported on the Biz Accelerator program. The final presentation would be held August 17. There would be at least seven business presentations. The participants worked hard and had good business presentations. Mr. Fry reported on the June financial report. There were $59,402,248 in total assets, year to date revenues were $7,645,200, and expenditures were $2,169,725. Municipal securities were purchased for $620,000. Nacero and Ellen Noel Art Museum were added to the reserved long term commitments. He stated that the sales tax increased for June. He stated that the TexPool had gone up to 0.018%. Resolution No. ODC-2021R-11 - Addendum to third training facilities grant economic development agreement with UTPB. Steven Beach, UTPB Dean, stated that the amendment to the agreement would allow for expanding the programs with a larger set of courses. The original agreement was $2.1 million to be paid out over three years. Ms. Hollmann asked if the request went through the Compliance Committee. Ms. Brooks reported that it did not go through Compliance as there were no changes to the funding only expansion of programs. Motion was made by Mr. Cole and seconded by Mr. Boutin to approve the resolution. The motion was approved by unanimous vote. Resolution No. ODC-2021R-12 - Downtown infrastructure grant for La Catrina and Company. Ms. Moulakis stated that the grant application was reviewed by the board and City Attorney’s office. The infrastructure grant was for the HVAC system. La Catrina and Company was located at 301 W. 2nd St. The grant was for $5,114.81. Motion was made by Mr. Boutin and seconded by Mr. Cole to approve the resolution. The motion was approved by unanimous vote. Finance Report. Motion was made by Mr. Boutin and seconded by Mr. Crow to approve the finance report. The motion was approved by unanimous vote. Resolution No. ODC-2021R-13 – General Development Plan FY 2021-2022 and forward to City Council for approval. Mr. Boutin stated that the Permian Fuels America should be a part of the strategic plan for 2021-22. The initiative needed to be pursued. Mr. Crow asked if it was prudent to continue with the current environment. Mr. Boutin stated that it would complement MOTRAN on the State level. Mr. Cole agreed as oil and gas made West Texas and it was prudent to keep for viability. He stated it may not be necessary to spend funds. Mr. Boutin stated it was an important long term initiative. Mr. Edgmon requested a Permian Fuels America report for September. Motion was made by Mr. Boutin and seconded by Mr. Cole to approve the resolution and to include the Permian Fuels America language in the General Development Plan. Mr. Russell stated that a cohesive Downtown development was needed as there were many groups that had roles in Downtown. The focus needed to be streamlined. He stated that the housing grant may need to be revised or removed since the impact fees were approved by the City Council. He stated that there was value in the program but needed to revise or deallocate funds for other use. Mr. Edgmon stated it would be discussed at another meeting. The motion was approved by unanimous vote. ODC Minutes August 12, 2021 Page 3 Resolution No. ODC-2021R-14 – FY 2021-2022 Budget and forward to City Council for approval and Resolution No. ODC-2021R- 15 – Contract proposals FY 2021- 2022 and forward to City Council for approval. Mrs. Muncy stated that the budget was based on proposals received. She reviewed each budgeted line item. She explained the Business Incentives calculation and the promotional limit of 10% of revenues. The promotional budget included the contractors of CVA, Hispanic Chamber of Commerce, Black Chamber of Commerce, and the façade grant. Mr. Russell stated that there were several items that were paid from CVA as a pass through from the Chamber of Commerce. He stated that the items should be reviewed and moved to the Chamber budget. Mr. Van Amburgh stated the items were services or fees such as information for economic development. Mr. Crow questioned the High Ground dues and licenses. Mr. Burnett stated that High Ground was a marketing group. The TEDC was for bids. He stated that the items were necessary. Mr. Crow stated that the report expenses could be in the Chamber budget. Mr. Crow, Mrs. Earls, Mr. Burnett, and Mr. Boutin would meet to discuss the items. Mr. Russell was concerned with the $20,000 in community strategies. Mr. Burnett stated it was to access people in Austin and Washington on community impact issues. It was used for the Permian Fuels America campaign and economic development. He stated consultant High Water was used for a good resource. Mr. Crow did not see the value in the line item. Mr. Boutin suggested to suspend the monthly payments but leave in the budget. Motion was made by Mr. Boutin and seconded by Ms. Hollmann to approve the Odessa Chamber budget amount, work on moving certain item expenses from CVA to the Chamber if it fell under the Chamber and suspend payments for High Water and consider in the future. The motion was approved by unanimous vote. Mr. Edgmon stated that the Odessa Hispanic Chamber requested $182,300. He stated that due to its current situation that its budget will be removed from the ODC budget until it gets its business together. Mr. Crow applauded MOTRAN’s reports. Motion was made by Mr. Cole and seconded by Mr. Crow to approve MOTRAN’s proposed budget. The motion was approved by unanimous vote. Mr. Edgmon stated that there were great results and recognized UTPB-SBDC’s work with ODC’s contractors. Motion was made by Ms. Hollmann and seconded by Mr. Cole to approve UTPB-SBDC’s proposed budget. The motion was approved by unanimous vote. Mr. Russell stated that there needed to be streamlined changes of moving items from the CVA budget to the Chamber budget. He reviewed invoices in detail. He questioned the $120,000 social media marketing line item. Mr. Van Amburgh stated that the cost in social media was not in placement but to boost the post on certain media. Mr. Russell asked the effectiveness with the followers and the return on investment. Mr. Van Amburgh stated that the target audience was geared to owners and site selectors. Mr. Crow stated it was prudent to have due diligence by going to bid for the marketing. Mr. Robinson questioned the social media front door. Mr. Van Amburgh stated that it should direct people to the ODC website. Mrs. Muncy explained the RFP process for professional services. Mr. Boutin stated that the advertising committee should evaluate and provide a recommendation on the RFP process but allow to continue the marketing ODC Minutes August 12, 2021 Page 4 plan for the upcoming year. Mrs. Muncy recommended that the RFP process should be for the FY 2022-23 budget year. The RFP whould start in March 2022. Motion was made by Mr. Cole and seconded by Mr. Boutin to approve CVA’s budget and contract, and move certain item expenses from CVA to the Chamber budget as it related to the Chamber. The motion was approved by a 6-1 vote with Mr. Crow casting the nay vote. Mr. Edgmon stated that the Black Chamber of Commerce requested $25,000. Mr. Walker reported that the membership increased and the goal was for the Black Chamber to be self-sufficient. The membership was growing which was at 80 to 90 members. He was grateful for ODC’s generosity. Mr. Edgmon stated that ODC was supportive and the budget could be amended for future projects. Motion was made by Mr. Crow and seconded by Mr. Cole to approve the Black Chamber of Commerce proposed budget with the understanding if any future projects the Black Chamber would come to the ODC board for consideration of project funding. The motion was approved by unanimous vote. The payments would be paid quarterly. Motion was made by Mr. Boutin and seconded by Ms. Hollmann to approve the façade budget at $150,000. The motion was approved by unanimous vote. Motion was made by Mr. Boutin and seconded by Ms. Hollmann to approve the infrastructure grants budget at $200,000. The motion was approved by unanimous vote. Mrs. Muncy provided a revise ODC budget without the Odessa Hispanic Chamber of Commerce’s request. The Business Incentives budget was raised to $55 million. The TxDOT line item was at $9 million. She explained the ending fund balance. Motion was made by Mr. Boutin and seconded by Ms. Hollmann to approve the resolution with the revised ODC budget and contract proposals. The motion was approved by unanimous vote. Remove from the table and consider revisions to the ODC Bylaws. Motion was made by Mr. Crow and seconded by Mr. Cole to remove the ODC Bylaws from the table. The motion was approved by unanimous vote. Ms. Hollmann referred to the latest bylaws revisions from August 9, 2021. She stated changes were made to the façade grant requirement applications to be more general. The makeup of the Review Board was changed to have two ODC board members. Ms. Moulakis stated that the subcommittee was housed under Downtown Odessa Inc. (DOI). Ms. Hollmann stated it was a program of ODC and its funds. Mr. Russell stated that Downtown Odessa vetted the application and brought it forward to the Design Review then for ODC and Council approval. Ms. Hollmann stated the process was like the economic development projects. Ms. Brooks stated that the subcommittee was under DOI and not ODC. Mr. Boutin stated it could be a joint committee. Mr. Russell explained the restructure of the Design Review Board membership. Ms. Moulakis stated that the subcommittee was DOI members prior to 2019. Motion was made by Ms. Hollmann and seconded by Mr. Russell to approve the ODC Bylaws from the MLH Redline 8.9.21 version. The motion was approved by unanimous vote. Mr. Russell thanked Ms. Hollmann for her work on the bylaws. ODC Minutes August 12, 2021 Page 5 Remove from the table and consider revisions to the guidelines governing the downtown infrastructure and façade grants. Motion was made by Mr. Cole and seconded by Mr. Boutin to remove the downtown infrastructure and façade grant guidelines from the table. The motion was approved by unanimous vote. Ms. Hollmann referred to the latest guidelines for infrastructure and facade grants redline of August 9, 2021. The language was broadened for the regulations under 5.B. under the infrastructure program. There was additional language for 5.J. There was language for a written agreement between the ODC and DOI added. Ms. Buhnerkempe stated that the same changes should be made under the façade program section. Motion was made by Mr. Boutin and seconded by Mr. Crow to approve the downtown infrastructure and façade grant guidelines with the added language of the written agreement with ODC and DOI, and the discussed adjustments. The motion was approved by unanimous vote. ODC Committee and Officer Reports: Partnership, Tax Incentive, Advertising and Downtown Grants Design Review Board. There were no reports. Citizen comments on non-agenda items. None. Motion was made by Mr. Cole and seconded by Mr. Russell to adjourn the meeting. The motion was approved by unanimous vote. The meeting adjourned at 3:41 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Tim Edgmon City Secretary President