Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS July 20, 2022 A regular meeting of the Odessa Development Corporation (ODC) was held on July 20, 2022, at 2:00 p.m. in the Council Chambers, 5th floor, City Hall, 411 W. 8th St. Odessa, Texas. Members present: Melanie Hollmann, David Boutin, Chris Cole, Larry Robinson, and Tim Edgmon. Members absent: Kris Crow and James Kirk. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Natasha Brooks, City Attorney; and Cindy Muncy, Assistant City Manager; Casey Hallmark, Downtown Odessa Executive Director; Jan Baker, Senior Assistant City Attorney; and Christina Buhnerkempe, Legal Assistant; and ODC Contractors: Craig Van Amburgh, CVA; Tyler Patton, UPTB-SBDC; Chris Walker, Black Chamber of Commerce; James Beauchamp, MOTRAN, Renee Earls, Chamber of Commerce; Tracy Jones, Chamber of Commerce; and Others: Council members Steven Thompson and Tom Sprawls and other interested citizens. A quorum being present, Mr. Boutin called the meeting to order, and the following proceedings were held: Mr. Robinson gave the invocation. Consider termination language (Sec. 2.6) in proposed economic development agreement with Downing Wellhead Equipment. Ms. Baker stated that the termination language included mutual agreement of the parties or by default of one party. Adam Mourning, Downing, stated that the company was looking forward in doing business in Odessa. Motion was made by Mr. Cole and seconded by Ms. Hollmann to approve the Downing economic development agreement with the amended changes. The motion was approved by unanimous vote. June 14, 2022 minutes. Motion was made by Ms. Hollmann and seconded by Mr. Robinson to approve the minutes. 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. Mr. Van Amburgh reported that the outdoor print and TV have business retention and expansion messages. Advertising was placed in the Trade & Industry Development Magazine. The social ODC Minutes July 20, 2022 Page 2 media engagement and shares were up. Mr. Robinson would like to see more social media and less TV. He wanted a goal of one million hits with social media. He suggested that the website provide less descriptive words with shorter articles. Ms. Jones reported that there was an inquiry about an entertainment venue and information was sent to the representatives. The entertainment business needed ten acres. A project of an electric car battery manufacturing was needing 50 acres that would create 3,000 jobs. Project Frost was negotiating the tax abatement with the taxing entities which would retain 105 existing jobs. Project Legion was negotiating the incentives with the taxing entities which would be a build out over six years. The apartment survey and the tracking program were being updated. Industry visits were being made. Nacero would working with schedules with the Governor and Congressman Pfluger for a groundbreaking date. Mr. Walker reported that the Black Chamber of Commerce had an increase in social media. The Black Chamber worked with UTPB on its Falcon Free program to help promote the program. The golf tournament was a success. The Black Chamber will give out backpacks at the Reading Festival at the Woodson Boys and Girls Club to encourage reading. Mr. Patton reported on SBDC’s June activities. He stated that there were 210 counseling sessions with 183 counseling hours. Two seminars were presented with 15 attendees. There were three new businesses with two in Odessa. He reviewed the types of business. Total capitalization was $1,030,000 in Odessa. There were 28.5 full time employees. SBDC staff consultants and outside consultants were used for the seminars. He reported that there was possible client for an ODC grant and would follow up. Mr. Beauchamp reviewed the Local Leveraging Project Report. He reviewed the authorized projects for Odessa. He reviewed the fund balance projects. There were five projects and the intersection improvements at 52nd St and Loop 338 would begin in January 2030. The recommendations were to expedite the execution of US 385 and Loop 338 South overpass, the development of new BI-20 and Faudree overpass, and development of 52nd overpass. There was $3.5 million in funds not authorized. He explained the build out of Loop 338 in which there was the opportunity for the unauthorized funds to be used for the acquisition of the right-of-way to complete Loop 338. Mr. Boutin stated that the General Development Plan would address the use of the funds to accelerate the projects. Mr. Beauchamp stated that the I-20 project was expanding its lanes with a one-way frontage roads. Mr. Fry reported on the May financial report. He reported the total assets, liabilities, and fund balance. There was no new securities or investments for the month. The July sales tax was $1,044,813.86 which was an increase from last year. Mr. Boutin stated that the Workforce Housing line item of $4.9 million could be moved to the unreserved balance if the program was removed. Motion was made by Mr. Cole and seconded by Ms. Hollmann to approve the May financial report. The motion was approved by unanimous vote. Discuss options for Downtown on the Rise Incentive Grant Tier changes and grant boundaries. Ms. Hallmark stated that explained the tier and the proposed options for the tier change for the grant programs. After discussion on the options. Ms. Brooks ODC Minutes July 20, 2022 Page 3 stated that the change would require an ordinance amendment with two readings from the City Council. The tier map would encourage more participation in the grant program. The Board agreed to remove tiers 3 & 4 and expand tier 1 at 100% and tier 2 at 75% from Option 2. Motion was made by Mr. Cole and seconded by Mr. Robinson to approve the tier changes for the grant boundaries. The motion was approved by unanimous vote. Discuss and consider terminating the Section 501.103 Workforce Housing Infrastructure Program and releasing the remaining uncommitted funds. Mr. Boutin stated that less than $100,000 was spent for the workforce housing program since 2019. He stated it was not productive and it should be deleted in the General Development Plan and reanalyzed for a more productive housing program. He stated that an infrastructure grant could be done for workforce housing. Mrs. Muncy reported that there were two businesses that had a workforce housing incentive. Mr. Boutin stated to leave the funds allocated to the projects and contact the businesses on the project status for payment. Motion was made by Mr. Cole and seconded by Mr. Robinson to terminate the workforce housing program, release all funds, keep the assigned fund balance of the two projects and contact the businesses regarding the projects for funding payout. The motion was approved by unanimous vote. ODC Committee and officer reports. No reports were given. Review and discuss contractor proposals. Mr. Boutin stated to move forward with the contractors. The Compliance RFP was due August 3 and the Marketing RFP was due August 10. A budget amendment would be required if there were changes. Mrs. Muncy stated that the RFP submitted could have changes from the budget proposal that was submitted. Mrs. Earls stated that more funds were requested for expanded marketing. Review and discuss proposed FY 2022-2023 General Development Plan. Mr. Boutin stated that the messaging program would be added to the oil and gas industry in the plan. Review and discuss proposed FY 2022-2023 Budget. Mrs. Muncy explained the marketing promotional line item and the rollover funds. She gave an overview of the draft budget. There was an increase in sales tax and the investment income was lowered. Contingencies had a line item of $100,000 and Special Services was $75,000. The Façade and Infrastructure line items remained the same. Mr. Cole suggested to consolidate the line item of Special Services. After discussion, the board agreed to increase the Façade line item to $275,000 and keep the contingencies line item to $100,000. The budget could be amended during the year to add more funds to the line items. Mr. Boutin asked that the Black Chamber budget be matched with its request. Mrs. Muncy reviewed the TxDOT funding cash flow. Remove from the table and discuss proposed language amendments to standard economic development agreement. Motion was made by Mr. Cole and seconded by Ms. Hollmann to remove the item from the table. The motion was approved by unanimous vote. Ms. Brooks reviewed the change on the agreement that included ODC Minutes July 20, 2022 Page 4 Section 1.3 with differentiating between the geographical area and governing body. She stated Section 6.2.3 was required by Texas Government Code 2264.052. Motion was made by Ms. Hollmann and seconded by Mr. Edgmon to approve the amendments as presented. The motion was approved by unanimous vote. Citizen comments on non-agenda items. None. Consider date for the next ODC Board meeting. The board agreed that the next ODC meeting would be on August 17. A confirmation will be sent after Mrs. Grimaldo would check with Mr. Crow and Dr. Kirk. There being no additional business, Mr. Boutin adjourned the meeting at 3:38 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC David Boutin City Secretary President