Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS October 18, 2021 A regular meeting of the Odessa Development Corporation (ODC) was held on October 18, 2021, at 2:00 p.m. in the Council Chambers, 5th floor, City Hall, 411 W. 8th St. Odessa, Texas. Members present: Tim Edgmon, Chris Cole, Melanie Hollmann, David Boutin, Larry Robinson, Jeff Russell, and Kris Crow. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Natasha Brooks, City Attorney; and Cindy Muncy, Assistant City Manager; Larry Fry, Director of Finance; Alexa Moulakis, Downtown Odessa Events Coordinator; and Christina Buhnerkempe, Legal Assistant; and ODC Contractors: Tracy Jones, Economic Development; Tyler Patton, UTPB- SBDC; Craig Van Amburgh, CVA; James Beauchamp, MOTRAN; Chris Walker, Black Chamber of Commerce; Wes Burnett, Economic Development; and Renee Earls, Odessa Chamber of Commerce; and Others: Council members Mari Willis, Tom Sprawls, Steven Thompson and Detra White; and other interested citizens. A quorum being present, Mr. Edgmon called the meeting to order, and the following proceedings were held: Mr. Boutin gave the invocation. September 9, 2021 minutes. Motion was made by Mr. Boutin and seconded by Ms. Hollmann 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, UTPB-America’s SBDC, MOTRAN, and City administrative support - financials. Ms. Jones reported an updated on projects. The Compliance Committee requested additional information for Project Build. Project CTV would provide 200 plus jobs and was finalizing its Chapter 313 with ECISD. The Economic Development Department was working with other projects and completed the apartment survey. Mr. Van Amburgh reported that television spots on during the golf schedule was closing. The outdoor advertising was welcoming the Oil Show visitors. The social media was slightly down. Mr. Walker stated that the Black Chamber of Commerce had a slight increase in social media. There were three visits with potential start-ups. SBDC information was provided to the businesses. The Ebony Bar Awards was scheduled for November 13. The ODC Minutes October 18, 2021 Page 2 seventh small business workshop was hosted with SBDC. A networking breakfast was held with 150 attendees. Mr. Patton reported on SBDC’s September activity. There were 260 counseling sessions, three seminars presented, 194 counseling hours and six new businesses. He identified the types of new businesses. The total capitalization was $1,094,500 with Odessa’s capitalization of $152,000. He reported that there were four scheduled workshops in October. Mr. Beauchamp handed out a report. Mr. Fry reported on the August financial report. He reviewed the year to date budget with revenues of $9,583,947 and expenditures of $2,331,793. He reviewed the October sales tax receipts which was a 12.8% increase over last year. Resolution No. ODC-2021R-19 – Adopt City of Odessa and Odessa Development Corporation Investment Policy and the approved Brokers/Dealers and Financial Institution list. Mr. Fry stated that the investment policy was to be reviewed and considered on an annual basis for all financial funds. He identified the objectives, officers and policy brokers and dealers. Mr. Cole asked about the segregation of duties. Mr. Fry explained the authorities. He explained the conditions of market changes and the return was secondary to safety. A list of prohibited investments was included in the policy. He explained the cash flow needed and the interest rate risk. Mr. Crow stated that ODC knew its commitments and obligations longer than five years and investments should be locked in a better rate. He had concerns with funds not being effective for ODC. Mr. Fry stated that solicitors were sought for competitive bids. Mr. Crow suggested approaching the investors for the securities. Mrs. Muncy reported that the two officers agreed on the investments. Motion was made by Mr. Cole and seconded by Mr. Robinson to approve the resolution. The motion was approved by unanimous vote. Motion was made by Mr. Robinson and seconded by Ms. Hollmann to approve the finance report. The motion was approved by unanimous vote. Annual incentive payments based on compliance with the economic development agreement: Resolution No. ODC-2021R-20 - UTPB 2nd Training Facilities Grant and Resolution No. ODC-2021R-21 - UTPB 3rd Training Facilities Grant. Mrs. Muncy stated that the second UTPB training facilities grant audit had no findings and recommended the payment of $1.5 million. She reported that the third UTPB training facilities grant had no findings and recommended the payment of $700,000. Motion was made by Mr. Boutin and seconded by Mr. Cole to approve the resolutions. The motion was approved by unanimous vote. There was a short recess from 2:41 p.m. to 2:49 p.m. Suspension of the insurance requirement for the Downtown Infrastructure Economic Development Agreement with La Catrina until completion of project and prior to reimbursement. Ms. Moulakis reported that La Catrina owned the property and the contract was to provide insurance. She stated that there was no insurance on ODC Minutes October 18, 2021 Page 3 the building but ODC did not have funds invested at this time. There was no exposure to ODC. Motion was made by Mr. Russell and seconded by Ms. Hollmann to suspend the insurance requirement and provide a deadline for six additional months before ODC paid funds out to La Catrina. The motion was approved by unanimous vote. Downtown Infrastructure/Facade Grant. No discussion. Resolution No. ODC-2021R-22 – Net Ops economic development agreement. Ms. Jones stated that Net Ops would provide a capital investment of $14 million with four retained jobs and 18 new jobs to expand its broadband. The Compliance Committee recommended a grant for $868,784 to be paid out over five years in arrears and an audit performed before Net Ops’ payment was received. The payroll was $1.4 million. Mr. Russell stated that there was not enough information provided and asked if the broadband overlapped with the school district. Mr. Beauchamp stated that there were shortfalls and needs with broadband. The biggest gap was in West and South Odessa. Net Ops received a federal internet grant of $67,000 and the project was $14 million. Net Ops was filling the gap with fiber in the area. The funds would be leveraged to fill the need in the areas needed. Mr. Cole stated that there may be overlapping. Mr. Beauchamp stated it would assist small businesses and residents. The number of people the fiber would serve was unknown as people may not utilize the service. Mr. Cole stated that the ODC funds would provide for job creation. The grant was within the ODC guidelines. Ms. Jones stated that agreement was over five years that included installation and maintenance requirements. Mr. Boutin stated that the project applied only full-time jobs and did not include part-time jobs. Mr. Russell requested more information. Mr. Beauchamp stated that Net Ops only had the federal grant and no other subsidy assistance. Motion was made by Mr. Boutin and seconded by Mr. Cole to approve the resolution. The motion was approved by a 5-2 vote with Mr. Russell and Mr. Robinson casting the nay votes. Rhodes USA, LLC economic development agreement. No discussion. Resolution No. ODC-2021R-23 – ODC contract for audit services with Weaver for ODC and the Economic Development Department. Mrs. Muncy stated that the audit services would be with Weaver to be extended due to the City’s system conversion. There was a $1,000 increase over last year. An outside independent audit would be done with ODC and the Economic Development Department. The audit report would be issued to ODC. Motion was made by Mr. Boutin and seconded by Mr. Robinson to approve the resolution. The motion was approved by unanimous vote. Discuss the Odessa Chamber of Commerce receiving the Texas Economic Development Council (TEDC) annual Community Economic Development Awards (CEDA) for communities its size in the state of Texas for 2021. Mr. Edgmon reported that the Odessa Chamber received the TEDC Community Economic Development Award for the Nacero project for 2021. He thanked Mr. Burnett and appreciated the work. Mr. Burnett stated that it was a joint effort with all the support of all the taxing entities, volunteers, and organizations. ODC Minutes October 18, 2021 Page 4 Discuss the Economic Development Contractor Agreement by and between Odessa Development Corporation and Odessa Chamber of Commerce Economic Development Department. Mr. Russell stated that Odessa was unique and the economic development services has been contracted with the Chamber since inception of ODC. He wanted to consider the future and with the process of a new director should it be contracted with the Chamber or have outside services. Mr. Edgmon stated it was researched in the past and it was concluded that contracting with the Chamber has been successful. He was hesitant to make changes since it has been successful. Mrs. Earls stated that the Chamber has led the way of economic development, audited annually and was accountable. The Chamber promoted Odessa, provided synergy and worked for ODC. She reported that if the Chamber was not contracted, ODC would have to set up a full staff. The Chamber worked with partners and was very effective. She reported on the status of the economic development director vacancy. Mr. Boutin stated that there was seasoned staff for daily operations. It has been successful and favored continuing the contract with the Chamber as it was effective. Mr. Crow agreed with both positions. He stated that ODC members needed to do its due diligence for ODC. He stated that the discussion should be held on ODC standing alone including the economic development, legal counsel, and investment advisor. Discuss the Economic Development Administrative Services Agreement between Odessa Development Corporation and the City of Odessa. Mr. Edgmon stated that with a past interim City Attorney there were times that information was not received. Mr. Russell stated that there may be times Legal was conflicted with reporting to the City Manager, City council and ODC and pulled in different directions. He asked if ODC needed to retain its own legal counsel. He stated with outside counsel, there would only be focused with ODC. Ms. Hollmann stated it was worth exploring. Ms. Brooks stated that the City Attorney’s office goal was to follow the law. Staff worked with the Economic Development Director and there were time constraints but the job was done. The City Attorney’s office reported to ODC and Council and there was experience in economic development. Mr. Edgmon stated that Legal staff has done a great job with its responsibilities. Ms. Hollmann suggested to consider someone that was not local and with experience. Mr. Boutin suggested to get information from other same size cities on its legal counsel for economic development. Review the findings and discussion of CVA/Ad Committee meeting. Mr. Russell reported that there were items that were a pass through and should be adjusted accordingly. Mr. Van Amburgh identified the six different budgeted items for a total of $86,500 to be moved to the Chamber’s budget. Mr. Russell requested that more detail in the billing be provided. He requested that the bill be submitted to the Advertising Committee for review and approval. He stated that the target market be an ODC board discussion. The labor and housing shortages should be addressed. A work session will be held to discuss. A budget amendment will be on the next agenda. The invoice should be sent to Mr. Russell and Mr. Edgmon for approval. Appoint two additional board members and three non-voting ex officio members to the Compliance Committee pursuant to the ODC Bylaws approved and adopted August 24, 2021. Mr. Edgmon stated to provide nominees to serve on the Compliance Committee for consideration at the next ODC meeting. Two positions needed to be filled per the updated bylaws. Ms. Hollmann stated that she and Mr. Cole were on the Compliance Committee as ex officio. ODC Minutes October 18, 2021 Page 5 Motion was made by Mr. Boutin and seconded by Mr. Cole to appoint Mr. Crow to serve on the Compliance Committee as ex officio. The motion was approved by unanimous vote. Discuss Compliance Committee. No discussion. 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 Ms. Hollmann to adjourn the meeting. The motion was approved by unanimous vote. The meeting adjourned at 3:59 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Tim Edgmon City Secretary President