Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS August 17, 2022 A regular meeting of the Odessa Development Corporation (ODC) was held on August 17, 2022, at 2:00 p.m. in the Council Chambers, 5th floor, City Hall, 411 W. 8th St. Odessa, Texas. Members present: Melanie Hollmann, Tim Edgmon, David Boutin, Chris Cole, Kris Crow, and James Kirk. Member absent: Larry Robinson. Others present: City Staff: Michael Marrero, City Manager; Cindy Muncy, Assistant City Manager; Casey Hallmark, Downtown Odessa Executive Director; Natasha Brooks, City Attorney; Jan Baker Senior Assistant Attorney; Christina Buhnerkempe, Legal Assistant and Celia Senoret, Deputy City Secretary. ODC Contractors: Craig Van Amburgh, CVA; Chris Walker, Black Chamber of Commerce; Tom Manskey, Economic Development; James Beauchamp, MOTRAN and Others: Council members Tom Sprawls and Steven Thompson; and other interested citizens. A quorum being present, Mr. Boutin called the meeting to order, and the following proceedings were held: Mr. Boutin gave the invocation. July 20, 2022 minutes. Motion was made by Mr. Edgmon and seconded by Dr. Kirk 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. Manskey reported of some of the active projects. He stated the first project was going to be pulled as there was a couple of things that did not qualify. Project Faudree application was received. This project was a combination of expansion and relocation for a local company that has presence in Odessa and Midland. They would be moving a number of jobs from Midland to Odessa, create new jobs due to their growth. Project Sunrise Mountain was a project from the Governor’s office. They submitted the information requested. A meeting was held with Project Ophelia it was $150 million capital expenditure. Project Lithia was planning on a date for a visit. This was a large employer, with a billion dollar plus and capital expenditure. There was no communication with Project Rocket. Development of this project would be 225 new jobs on manufacturing. Project Frost had an agreement with Odessa College. They had some changes to the agreement. They had applied to the various taxing entities in the county. They had an agreement with the county. There would be $400 to $500 million expansion and modernization. ODC Minutes August 17, 2022 Page 2 Mr. Van Amburgh stated that this has been a busy month. There was a lot of activity with print materials. A full-page ad was designed for the Odessa Community Guide that focuses on business. They also had an ad in the Texas edition of Business Facilities. There was a new display at the airport, promoting Odessa in the baggage pickup area. It was a joint effort between Discover Odessa, CVA and the Economic Development department. Social Media platforms were up across all platforms. Mr. Walker reported that the Black Chamber of Commerce had an increase in all of the media activity over Facebook page, office visits, phone calls and emails. He spoke with a man from Odessa that was trying to move his business from his home and establish his business. He had a clothing line and shoe brand. They were in the process of helping him and partner with Odessa Chamber and SBDC to help. Another person had a food service. He was in the process of dressing out his food wagon. He eventually, within a year, would like to have a restaurant. They were sending them to the SBDC and to Odessa Chamber for help. They did a ribbon cutting on a new barber school, located on Dixie. They would like a larger facility within a year. They assisted a lady that was inquiring about a property. They were helping her. They were contacted by a company that does fire retardant clothing. They would help them to find a distributor for their product. They were in the process of handing out scholarships for their golf tournament. They were working on the Ebony Board annual banquet for Black Chamber. Mr. Beauchamp stated the Permian Basin Coalition was held with the area officials regarding the air quality standards in the Permian Basin. They collected air quality samples. The results were that Ector County and Odessa had very low levels. The composite score was 12, significantly lower than the EPA standards. On September 15, the Permian Basin One-on-One will be held, which was an educational series of Texas Legislative, the Texas House and the Texas Senate leading up to legislative session. On October 4, they were hosting the Texas House Energy Committee interim hearing. Mr. Boutin asked about the proposed work in Midland County and Ector County related to Yukon. Mr. Beauchamp stated that they had the first part done from FM 1788 back over Hwy. 191, which was a project by Midland County and was back on schedule. The project should be completed no later than December of this year. The cost of this project was originally $3.1 million. It actually was $6.3 million. They use county road grant funds. They were updating map of landowners for Yukon between Westwood and Loop 338. Mr. Boutin asked if it would carry some of the traffic from the area because of the connection to West Odessa. Mr. Beauchamp stated that there was a study done to see if it would be an amenable to divert traffic-off of 42nd Street. Mr. Beauchamp stated that part of Hwy.191 was in Midland County. Mr. Marrero displayed the map to point out the county lines. Mr. Beauchamp explained that the Midland County portion was being built as two lane county road. Ms. Muncy reported on the June report. She reported the total assets of $65.3 million. There was a reduction to the assigned for workforce housing infrastructure down to $70,000. The reserve balances was $26.2 million. She reviewed the revenues and expenditures and the last payment on contracts. There was excess revenue over expenditures of $7.9 million. On the investment portfolio, they did not purchase any new investments during the month of June. Mr. Crow had some questions about discrepancies of the expenditures and revenues totals. Ms. Muncy will ask the Finance Director to work with him to do a cash flow analysis. ODC Minutes August 17, 2022 Page 3 Motion was made by Mr. Edgmon and second by Mr. Cole to approve the June financial report as presented. The motion was approved by a 5 - 1 vote with Mr. Crow casting the nay vote. Resolution No. ODC-2022R-14 - Request from Icon Tavern for an extension of time to complete the downtown infrastructure and façade projects. Ms. Hallmark presented a request for a six-month extension from their current deadline, which was September 29. She stated Icon was experiencing issues with contractors. Motion was made by Mr. Edgmon and seconded by Mr. Crow to approve the resolution for the extension of time. The motion was approved by 4 aye votes. Ms. Hollmann and Mr. Cole abstained from the vote. Consider responses to marketing and compliance consultant request for proposals. Ms. Muncy reported two responses were received for the compliance consultant. Proposals were from Weaver, who was the current provider, and Axiom Capital Partners. She contacted all the vendors and left messages. There were no responses. The cost with the current contract, with Weaver, was $5,000 per report. In their proposal, they raised it to $6,000. Axiom proposal was $2,425. Mr. Boutin suggested sending the proposals to the advertising committee to make a recommendation, and appointed Dr. Kirk, Mr. Crow and Ms. Hollmann to a task force for compliance interview, and review the proposals for recommendation. Mr. Boutin directed the compliance consultant proposes, marketing proposal to the advertising committee for review and recommendation. Resolution No. ODC-2022R-15 – FY 2022-2023 General Development Plan. Mr. Boutin stated some items were additions in order to match to General Development Plan. Motion was made by Mr. Edgmon and seconded by Dr. Kirk to approve the resolution for the General Development Plan. The motion was approved by unanimous vote. Resolution No. ODC-2022R-16 – FY 2022-2023 Contractor Agreements. Mr. Boutin questioned if the contractors had provided any financial reports and wanted to make sure that the contractors understand they have the obligation to provide it. Ms. Muncy stated that in the past it had not been requested. The board had no objection to the requirement to improve the agreements. Motion was made by Dr. Kirk and seconded by Ms. Hollmann to approve the resolution for the contractor agreement: Chamber of Commerce, MOTRAN, Black Chamber of Commerce, SBDC, and the City of Odessa. The motion was approved by unanimous vote. Resolution No. ODC-2022R-17 – FY 2022-2023 Budget. Ms. Muncy reported there were changes on the proposed budget. She stated that the director’s liability insurance was renewed in August. The premium was at $18,696 and was changed to $18,500 to match the renewal. She reported $75,000 was taken out of special services and put it at zero, and it was added to the infrastructure grants. There was an increase on the line item for auditing compliance services. In 2021, $57,577 was spent and it was raised to $60,000. The amount for contractors were the same. The marketing was on a placeholder for $600,000, which can be amended once a company was selected for marketing. ODC Minutes August 17, 2022 Page 4 Motion was made by Mr. Edgmon and second by Dr. Kirk to approve the resolution for the FY 2022-2023 Budget. The motion was approved by unanimous vote. ODC Committee and Officer Reports: Partnership, Tax Incentive, Compliance, Advertising and Downtown Grants Design Review Board. There were no reports. Citizen comments on non-agenda items. None. Consider date for next ODC Board meeting. The board agreed that the next ODC meeting would be on September 8. There being no additional business, Mr. Boutin adjourned the meeting at 3:14 p.m. ATTEST: APPROVED: Celia Senoret David Boutin Deputy City Secretary President