Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS October 13, 2022 A regular meeting of the Odessa Development Corporation (ODC) was held on October 13, 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, Kris Crow, James Kirk, and Tim Edgmon. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Natasha Brooks, City Attorney; Cindy Muncy, Assistant City Manager; Casey Hallmark, Downtown Odessa Executive Director; Christina Buhnerkempe, Legal Assistant; and ODC Contractors: Craig Van Amburgh, CVA; Kathleen McNeil, UPTB-SBDC; James Beauchamp, MOTRAN, and Tracy Jones, Chamber of Commerce; Chris Walker, Black Chamber of Commerce; and Others: Council members Steven Thompson, Mark Matta, Denise Swanner; Mayor Javier Joven; and other interested citizens. A quorum being present, Mr. Boutin called the meeting to order, and the following proceedings were held: Mr. Cole gave the invocation. September 9, 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. Mrs. Jones reported on updates with projects. Project Lithium had a site visit planned which was an electric vehicle battery manufacture. Project Frost’s capital expansion was $300 to $350 million. Project Legion had a $24 billion capital expansion. The Chamber was working with four expansion project applications. The apartment survey would be updated. Mr. Van Amburgh reported on September activities. The television messages were completed. There were no new trade publication ads for September. CVA’s budget was under budget with $230,000 in unspent funds. Mr. Walker reported that the Black Chamber of Commerce’s website activity increased. A networking breakfast would be held on October 15 and information would be provided on breast cancer and Medicare. The Black Chamber was assisting with giving away food boxes to the needy. The Black Chamber was going to have an outreach with the young adults in getting them back to work. There were two potential businesses, a ODC Minutes October 13, 2022 Page 2 specialty food store and a boutique, inquiring about assistance. Mr. Boutin asked if there was any information on the younger labor force not inclined to go back to work. Mr. Walker was going to work on finding out information and report to the board. Ms. McNeil reported on SBDC’s September’s activities. She stated that there were 251 counseling sessions with 224 counseling hours. Four seminars were presented with 118 attendees. Total capitalization was $700,802. There were 24.5 full time employees. She reported that banks were not funding. Clients needed financing for equipment and working capital. Banks deny loans due to credit score issues, debt ratio or the bank was not interested in the field. Mr. Cole stated that banks help to encourage minority businesses. Mr. Beauchamp stated that the annual meeting would be on October 26 with Dr. Perryman providing an economic impact update. Meetings have been held with owners off Loop 338 to donate right-of-way. The owners were receptive to the request. He stated that work would be done to address the drainage issues. Mrs. Muncy provided an August financial report. She stated that there was $67,601,835 in total assets. There were $28,499,342 in unreserved. She reported that total revenues were $11,378,924. A Business Challenge payment was paid in September for $28,000. Sales tax for the fiscal year was $12,123,397. A municipal bond matured and it was placed in Frost Bank. There were no investment purchases made in August. Motion was made by Mr. Edgmon and seconded by Mr. Cole to approve the August financial report. The motion was approved by unanimous vote. Resolution No. ODC-2022R-20 – Border State Industries economic development agreement. Mrs. Jones stated that Border State was a local expansion which has been in business since 1952. It has 25 branches and 25 local employees. There would be a construction of a 30,000 sq. ft. facility in South Odessa with a $12 million capital investment and new employees would be added. Motion was made by Dr. Kirk and seconded by Mr. Cole to approve the resolution. The motion was approved by unanimous vote. Annual incentive payments based on compliance with the economic development Agreement: Resolution No. ODC-2022R-21 – FMC Technologies, Inc. Mrs. Muncy reported that FMC met the full time employees and payroll amount requirements for its final payment. There were total hours of 114,375.09, total wages of $4,448,671 and 63 total full time employees. The Compliance Committee did not review the report as there were no findings. Mr. Boutin stated that if there were no findings then the Compliance Committee did not review. Ms. Buhnerkempe stated that ODC Resolution 2020-02, Section 3 stated that if there were no findings it went straight to the board. Mr. Crow stated in the past the Compliance Committee had found issues after Weaver’s review and would like the Compliance to review the report. Motion was made by Mr. Cole and seconded by Ms. Hollmann to approve the resolution. The motion was approved by a 6-1 vote with Mr. Crow casting the nay vote. Resolution No. ODC-2022R-22 – Nacero. Mr. Boutin had some corrections to the resolution. Mrs. Muncy stated that the investment grant was to be used for expenditures towards the gas plant. A sample was selected to verify from the information received. ODC Minutes October 13, 2022 Page 3 Nacero did not meet the year one requirement of $100,000,0000. The total amount invested was $99,578,400 which comprised of 99.58% of the total required. The sample tested was $76,942,400. The expenditures reported by year were from July 1 to June 30 from 2018 through 2022. According to the agreement if the company did not reach the investment benchmark, the incentive payment for that year shall be prorated based on the total percentage. Mr. Robinson asked if there were improvements to the land within the effective date. Ms. Brooks stated that the agreement was effective June 21, 2022. Mr. Boutin stated that any expenditures by the end of year one should be included. He stated that the company was interested in the property and there was the intent to apply for the grant. The purchase of the property was done before the agreement due to the potential of a disadvantage and it was part of the expenses. Mr. Crow had issues with the expenses from 2018 through 2021 which included surveying, design, payroll and miscellaneous. He asked why the report did not go to Compliance. Mrs. Muncy stated that it was according to accounting standards. There were costs incurred to design. It should show up on the tax rolls but was not sure if the Appraisal District would consider. Mr. Crow stated it was a great project but there was no groundbreaking. He stated that before the agreement, Nacero was looking at the project in other locations. He asked if 100% of the expenses were to the Penwell site and not at other places. He stated it should have gone through Compliance. Hal Bouknight, Nacero, stated that survey stakes were on the land and an environmental assessment was done. Dirt has not been turned. He stated that activity was made with a local engineer. He introduced the CFO who was involved in the process. Mr. Crow wanted to make sure there was a viable project and see more tangibles for funding the project. Motion was made by Mr. Edgmon and seconded by Mr. Cole to approve the resolution for a payment of $1,991,600. The motion was approved by a 5-1 vote with Mr. Crow casting the nay vote. Mr. Robinson abstained. Resolution No. ODC-2022R-23 – ODC contract with Weaver for ODC and EDD audit services. Mrs. Muncy stated that the audit fee increased by $1,000. She recommended Weaver as a transfer was made into the new financial system with Billing and Collection. Motion was made by Mr. Cole and seconded by Mr. Edgmon to approve the resolution. Mrs. Muncy stated that the audit was for the ODC audit. The motion was approved by a 5-2 vote with Mr. Crow and Dr. Kirk casting the nay votes. Discuss and consider recommendation of Compliance Consultant Committee. Mrs. Muncy stated that reports were sent from a contractor for Axiom to provide a review on September 23, 2022. After numerous calls to Axiom, there has been no response. Mr. Boutin was concerned with the lack of being responsive to process the payments. Mrs. Muncy stated that Weaver would complete the contracts compliance review that were started before its contract ended on September 30, 2022. She reviewed the contracts that were being reviewed. Ms. Hollmann asked about the options if Axiom did not respond. Mrs. Muncy stated that it could be rejected or choose Weaver. The board had a consensus to continue with Weaver over the next few months. Discuss and consider recommendation of Marketing Contractor Committee. Mr. Edgmon stated that there would be a report at the next meeting. He requested that it be under executive session. ODC Minutes October 13, 2022 Page 4 ODC Committee and officer reports. Mr. Robinson reported that La Catrina had moved out and its contract was not complete. Mr. Boutin asked for an agenda item to review the grant contracts language for its eligibility to include expenses. Citizen comments on non-agenda items. None. Consider date for next ODC Board meeting. Mr. Boutin stated that the next meeting was November 10, 2022. There being no additional business, Mr. Boutin adjourned the meeting at 3:24 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC David Boutin City Secretary President