Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS November 18, 2021 A regular meeting of the Odessa Development Corporation (ODC) was held on November 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, David Boutin, Larry Robinson, Jeff Russell, and Kris Crow. Member absent: Melanie Hollmann. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Natasha Brooks, City Attorney; and Cindy Muncy, Assistant City Manager; 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; and Renee Earls, Odessa Chamber of Commerce; and Others: Council members Mari Willis, Tom Sprawls, Steven Thompson, Detra White, Mark Matta, Denise Swanner; Wesley Burnett, Nacero; Hal Bouknight, Nacero, 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. October 18, 2021 minutes. Motion was made by Mr. Boutin and seconded by Mr. Crow to approve the minutes. The motion was approved by unanimous vote. Nacero TX 1 LLC status update. Mr. Bouknight stated that Nacero was progressing and thanked the board for its support in promoting Nacero. The design was progressing and the bids were out for the general contractors. He explained the methodology for the process of construction and it would build the labor force to build other Texas sites. He outlined the milestones and accomplishments. Milestones included committed natural gas supplier, a 25 year contractor, and approved air permit. Construction would begin the first quarter of next year. The property was closed and owned by Nacero. He reviewed Phase I and II. The site would be cleaned up that included the close and cap of wells. Mr. Bouknight reported that there were no issues on the financing. He stated that the gasoline will be available for commercial production in late 2025 or early 2026. The project would focus on lowering the carbon molecule footprint in the fuel industry. He explained the net zero carbon gasoline. Mr. Boutin stated that Dr. Ray Perryman cited the Nacero project in the economic forecast update on a cleaner fossil fuel. Mr. Bouknight explained the first train at a cost of $2.5 billion. He stated that there was a 6% increase added to the cost with inflation. He stated that there was the opportunity to train ODC Minutes November 18, 2021 Page 2 and grow the workforce for the community. Nacero would bring in workforce and there would be new residents to Odessa. He stated that local contractors would be part of the project and explained the process. There were approximately 20 qualified contractors. 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 that project CTV was working on its tax abatements and Project Build was tweaking its application. Project Roadrunner would build to suit and a virtual meeting would be held in December. She stated that there were local businesses for expansion. Project GSI had a change in management. Mrs. Earls reported on the search for the Economic Development Director. Progress was being made with interviews and the goal of January 15 to fill the vacancy. Mr. Van Amburgh reported that outdoor billboards had welcomed Oil show visitors. A direct mail piece would be sent to the delegates. Social media increased. Mr. Walker stated that the Black Chamber of Commerce had an increase in social media. There were three potential small businesses and meetings will be held to encourage to open in Odessa. The Ebony Bar Awards was a bug success. The Black Chamber assisted with St. James Baptist Church in handing out food boxes to 125 needy families. A Turkey Leg Tussle would be held on November 27 that will benefit the Woodson Young Scholars Academy. Mr. Patton reported on SBDC’s October activity. There were 384 counseling sessions, five seminars presented, 289 counseling hours and three Odessa new businesses. He stated that there was one new expansion. The total capitalization was $1,146,076 with Odessa’s capitalization of $304,000. Mr. Beauchamp reported that Southwest Airlines added a direct flight to Austin. He reported that the infrastructure bills would provide for an additional $12 million. He outlined the projects that would benefit from the funds. Mrs. Muncy reported on the September financial report. She reported the total assets and liabilities. She reviewed the Fund Balance. Sales Tax receipts increased in October and November. September’s total revenues were $10,469,695 and expenditures were $3,065,750. Mrs. Muncy reviewed the payments on short term and long term commitments. The Downing Wellhead contract was terminated and the funds would be moved to unreserved funds. Mr. Crow asked about the investment beginning balance and ending balance. Mrs. Muncy explained the change. She stated as payments were made out the total was decreased. Mr. Cole asked about the Workforce Housing Incentives line item. Ms. Brooks stated that there has not been a review of the program. Mr. Boutin stated for it to be placed on the agenda to discuss the value or deficiency in the program. Mrs. Muncy reported that there were two contracts for the infrastructure funds. The payouts would be made once it was completed. Motion was made by Mr. Cole and seconded by Mr. Boutin to approve the finance report. The motion was approved by unanimous vote. Tabled – Rhodes USA economic development agreement. Mr. Edgmon stated that Rhodes was making some changes to the application. ODC Minutes November 18, 2021 Page 3 Motion was made by Mr. Cole and seconded by Mr. Boutin to table the item. The motion was approved by unanimous vote. Tabled - Annual incentive payment for Select Energy based on Compliance Committee recommendation. Mr. Edgmon stated that further analysis was needed to be discussed. Mr. Cole stated that Weaver was hired for the services to be provided on the contractors’ compliance. Mrs. Muncy explained Weaver’s process for reviewing the compliance in the contracts. She explained that there were questions regarding the full time employees (FTE) and its calculation from its reports. Select had excessive hours on individuals which may affect the total FTE. Mr. Russell stated that Form 941 reported the number of employees. Mr. Russell was concerned with the number being overstated and the number that was used to calculate the FTE. He stated that there were a lot of non-salary related items on the total payroll. He was concerned if there were other instances with the other contracts and the methodology. Mrs. Muncy stated that Weaver would get information from Select and report back to the Compliance Committee. Motion was made by Mr. Cole and seconded by Mr. Robinson to table the item. The motion was approved by unanimous vote. Tabled – Weaver and Tidwell compliance consulting services agreement. Motion was made by Mr. Cole and seconded by Mr. Russell to table the item. The motion was approved by unanimous vote. Resolution No. ODC-2021R-24 – Budget amendment to reallocate funds from CVA to the Chamber EDD and amend economic development contractor agreements with CVA and the Chamber EDD. Mrs. Muncy stated that based on a committee review it was recommended to provide for a budget amendment from CVA to the Odessa Chamber EDD and the individual agreements. The total budget was not changed only the transfer of $86,500 from the CVA to the Chamber budget. Motion was made by Mr. Boutin and seconded by Mr. Russell to approve the resolution. The motion was approved by unanimous vote. Consider the ODC meeting in December. Mr. Edmon stated with the tabled items that there would be an ODC meeting on December 9. ODC Committee and Officer Reports: Partnership, Tax Incentive, Advertising and Downtown Grants Design Review Board. Mr. Russell stated that there were downtown applications in progress There were no other reports. Citizen comments on non-agenda items. None. Motion was made by Mr. Crow and seconded by Mr. Cole to adjourn the meeting. The motion was approved by unanimous vote. The meeting adjourned at 3:13 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Tim Edgmon City Secretary President