Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS September 8, 2022 A regular meeting of the Odessa Development Corporation (ODC) was held on September 8, 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, Larry Robinson, Kris Crow, James Kirk, and Tim Edgmon. Member absent: Chris Cole. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Natasha Brooks, City Attorney; Cindy Muncy, Assistant City Manager; Casey Hallmark, Downtown Odessa Executive Director; Jan Baker, Senior Assistant City Attorney; and Larry Fry, Finance Director; and ODC Contractors: Craig Van Amburgh, CVA; Kathleen McNeil, UPTB-SBDC; James Beauchamp, MOTRAN, Tom Manskey, Economic Development; and Tracy Jones, Chamber of Commerce; and Others: Council member Steven Thompson and other interested citizens. A quorum being present, Mr. Boutin called the meeting to order, and the following proceedings were held: Mrs. Hollmann gave the invocation. August 17, 2022 minutes. Motion was made by Mr. Crow and seconded by Mr. Edgmon to approve the minutes as amended. 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 on the project updates. Projects Pump, Castle, and Faudree would each be submitting its application. Project Ophelia was moving forward with a tax abatement request. Project Lithium, an electric vehicle battery manufacturer, was planning a site visit. The Compliance Committee would review Project Frost’s application for ODC consideration. Project Legion’s application was not submitted. Mexico investors meetings were hosted to develop a business and were bringing in boxing to the city. Mr. Boutin asked about the Rhodes USA business agreement and the grant funds for the workforce housing from the $5 million that was set aside. Mr. Manskey stated that the business agreement was approved by ODC and City Council but was not signed by Rhodes. The company wanted changes to the agreement with more incentives up front and the agreement was not executed. Rhodes would be submitting its request. Mrs. Jones reported that Jill Miller discussed the request, but it did not fit the workforce housing guidelines. The ODC Minutes September 8, 2022 Page 2 guidelines were going to be rewritten. She wanted up front funds for the infrastructure to build the houses. There was no application submitted. Mr. Crow stated that it was discussed in Compliance Committee and was tabled for the rewritten guidelines. Mr. Robinson asked about the Nacero expenditures. Mrs. Muncy reported that submitted expenditures to Weaver was under $100 million. Mr. Van Amburgh reported on August activities. There were television messages through September with business expansion messages. There was a new airport backlit display at the airport. The Facebook impressions were down with Permian Fuels America. The budget for marketing was 60% expenditures and a savings return to ODC of $245,000. Mr. Robinson asked that a Nacero update be generated by ODC for the public. Mr. Boutin stated that Mayor Joven will provide a Nacero update to the Odessa American. Mr. Crow asked about the cause of the discrepancy of Facebook’s page reach and visits. Mr. Van Amburgh stated that the searches were organic. Ms. McNeil reported on SBDC’s August activities. She stated that there were 213 counseling sessions with 172 counseling hours. There was one new business. Total capitalization was $1,162,500. There were 11 full time employees. There would be three training seminars in September. Mr. Beauchamp reported a letter was sent to the Environmental Protection Agency regarding the ozone. He provided an updated list of the Yukon projects. Mrs. Muncy provided a June and July financial updated reports with revisions. She stated that a Kaige payment was made and charged as an expenditure in May. The adjustment was not reported in the June report and corrections were made to the June and July report. She explained the revisions. She reported that the Business Challenge had a remaining amount from FY 20192-20 and extension of deadlines had been given for the outstanding payments to be made to the winners. The deadline was September 30, 2022. She asked if the board would like to extend the deadline. Motion was made by Mr. Edgmon and seconded by Mr. Crow not to change the deadline and keep at September 30,2022. The motion was approved by unanimous vote. Mrs. Muncy reported that the total year for the sales tax was $12,123,397. The sales tax for the September was $1,085,586. Motion was made by Dr. Kirk and seconded by Ms. Hollmann to approve the revised June and July financial reports. The motion was approved by unanimous vote. Resolution No. ODC-2022R-18 – Adopt the City of Odessa, Texas and Odessa Development Corporation, TX Investment Policy and the approved brokers/dealers and financial institutions list. Mr. Fry stated that the policy was required to be updated on an annual basis. The policy included objectives, reporting requirements and investment officers. Mr. Crow stated that there was one company that was interested in being on the brokers list. Mrs. Muncy stated that the list could be amended. Mr. Fry received calls and information from brokers. Mrs. Muncy stated that brokers do not have to be on the list for the government investment pools. Motion was made by Mr. Edgmon and seconded by Dr. Kirk to approve the resolution. The motion was approved by unanimous vote. ODC Minutes September 8, 2022 Page 3 Resolution No. ODC-2022R-19 – Affirm West Texas Food Bank’s annual compliance with the second amended economic development agreement. Mrs. Muncy stated the agreement was from the purchase of the freezer and refrigerator. No payment was needed to be made. West Texas Food Bank did not meet the total FTE requirement of 53 as there were 47 FTEs. The total wages were exceeded as only $1,361,792 was required but had $2,512,278.02. Mr. Crow stated that there was a recapture in the agreement. Mr. Edgmon stated that the wages exceed over $1 million. Motion was made by Mr. Edgmon and seconded by Mr. Robinson not to claw back and approve the resolution. The motion was approved by a 5-1 vote with Mr. Crow casting the nay vote. Mrs. Hollmann stated that the reports be evaluated on a case by case basis. Discuss and consider recommendation of Compliance Consultant Committee. Mr. Crow stated that the committee met and wanted to see an audit from Axiom to compare with Weaver. Mrs. Hollmann stated that Axiom had an automated approach to analyze the data. She stated that they may have underestimated the number of hours for the compliance review. She would like to see the product. Mr. Crow stated that Axiom would upload the documents and could have multiple formats. Mrs. Muncy cautioned the payroll sensitive data. She stated that the board would be moving away from a CPA firm. Mr. Boutin stated that the board wanted to see an Axiom report and that information from the West Texas Food Bank be given to Axiom to review. The report would be reviewed by the board. Discuss and consider recommendation of Marketing Contractor Committee. Mr. Edgmon stated that three proposal were reviewed and each one would make a presentation to the Committee. A decision would be made by September 23. Mrs. Muncy stated that the current contract ended September 30, 2022 and the contract could be extended. Mr. Van Amburgh agreed to extend the contract. Motion was made by Mr. Crow and seconded by Mr. Robinson to extend the CVA marketing contract by 90 days. The motion was approved by unanimous vote. ODC Committee and officer reports. No reports. Citizen comments on non-agenda items. None. Consider date for next ODC Board meeting. Mr. Boutin stated that the next meeting was October 13, 2022. There being no additional business, Mr. Boutin adjourned the meeting at 3:16 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC David Boutin City Secretary President