Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS February 9, 2023 A regular meeting of the Odessa Development Corporation (ODC) was held on February 9, 2023, at 2:00 p.m. in the Council Chambers, 5th floor, City Hall, 411 W. 8th St. Odessa, Texas. Members present: Melanie Hollmann, Larry Robinson, James Kirk, Jeff Russell, and Ismael “Mikky” Navarrete. Members absent: David Boutin and Kris Crow. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Dan Jones, Interim City Attorney; Larry Fry, Director of Finance; Seth Boyles, Controller; Elizabeth Prieto, Interim Downtown Odessa Executive Director; Christina Buhnerkempe, Legal Assistant; Tom Kerr, Director of Public Works/Utilities; and ODC Contractors: Tom Manskey, Chamber of Commerce; Kathleen McNeil, UPTB-SBDC; James Beauchamp, MOTRAN, Renee Earls, Chamber of Commerce; Tracy Jones, Chamber of Commerce, Christi Callicoatte, Current Media Partners; Chris Walker, Black Chamber of Commerce; and Others: John Herriage, Peggy Dean and others. A quorum being present, Mr. Russell called the meeting to order, and the following proceedings were held: Mr. Walker gave the invocation. The Pledge of Allegiance and Texas Pledge were recited. January 12, 2023 minutes. Motion was made by Mr. Robinson and seconded by Dr. Kirk to approve the minutes as amended. The motion was approved by unanimous vote. Contractors’ reports: Economic Development Department - Odessa Chamber, Current Media Partners, Black Chamber of Commerce, UTPB-America’s SBDC, MOTRAN, City administrative support – financials, and Annual Financial Audit Report. Mr. Manskey stated that there were no changes on the projects. A project was moving forward for a $180 million investment. The financial report was sent through email. The Economic Development Department returned $300,000 in funds to the City. Ms. Callicoatte presented the marketing research and plan for ODC. She highlighted print ads of competitors that focused on QR codes and industry announcements. The tag line was “Only Odessa”. There would be uses in different applications. She did a social media audit. She provided a list of target industries. The website would be revamped, and it would be within the budget. The budget was a nine month contract. She did a lot of research and the General Development Plan was reviewed. Mr. Russell stated that companies needed to be identified that would be within in the target ODC Minutes February 9, 2023 Page 2 industries. She was working with the Economic Development Department. Mr. Navarrete had ideas on mining. Mr. Walker reported that the Black Chamber of Commerce social media was average. There were increase numbers in other areas with calls and meetings. There were over 200 contacts for January. The eyelash salon and beauty studio found private investors and were going to open and create two or three new jobs. The food truck vendor/restaurant/catering was looking for funding. The owner met with SBDC. A workshop was held with SBDC. The Black Chamber was working to bring in more clientele to the workshops. A cleaning service was interested in opening a business. Ms. McNeil reviewed SBDC’s January report. She reported that the numbers were lower than December. There were five seminars presented with 90 attendees. There were two new businesses in Odessa. There were 14 full time employees. Five seminars would be held in February. Mr. Beauchamp stated the I-14 public hearing meeting was held. MOTRAN’s social media was down. MOTRAN was focusing on the legislative session. A public hearing would be held on Hwy. 302 for a four-lane divided highway which would build a good corridor. He provided a map of I-27 and statewide and rural connectivity. The feasibility study for the I-27 excluded Odessa and Midland. He would be supporting a reroute for I- 27 to include Odessa and Midland. Mr. Fry reviewed the December financial report. Sales tax receipts were $1,110,386. Interest income from investments was $220,287 and a gain of $26,287. The January sales tax was $1,338,340. The year to date sales tax was $5,939,403. Motion was made by Ms. Hollmann and seconded by Dr. Kirk to approve the December financial report. The motion was approved by unanimous vote. Annual Financial Audit Report. Greg Peterson, Weaver and Tidwell, stated that ODC received an unmodified opinion. There were no deficiencies or weaknesses. An overview of management’s discussion and analysis was included in the report. He reviewed the balance sheet ending September 30, 2022. Total assets were $71,483,223 and liabilities were $5,317,298. The end of the year Fund Balance was $66,165,925. There were no unfavorable variances. Mr. Russell stated that the income was growing but the incentive payments were not. He stated that ODC’s job was to incentivize businesses and asked what ODC could do to incentivize the businesses. Motion was made by Dr. Kirk and seconded by Ms. Hollmann to approve the annual financial audit report. The motion was approved by unanimous vote. ODC Committee and officer reports: Partnership, Tax Incentive, Advertising, DOI Grants Design Review Board, Compliance, and Legal Services Committee. No reports were given. Discuss and consider contract for marketing services from Current Media Partners. Ms. Callicoatte asked that the payment terms of net 30 days be added in the contract. Mr. Fry stated that the invoices would be paid within the 30 days. ODC Minutes February 9, 2023 Page 3 Motion was made by Mr. Robinson and seconded by Dr. Kirk to approve the Current Media Partners contract with the amendment of adding the 30 days payment term. The motion was approved by unanimous vote. Discuss and consider grant application for Project Frost/GCC. Mrs. Jones stated that the Compliance Committee approved a $2 million grant to be paid out over five years. The capital investment required was $100,000,000. The sales were based out of the Ector County facility. Motion was made by Ms. Hollmann and seconded by Dr. Kirk to approve the GCC Permian grant for $2 million. The motion was approved by unanimous vote. Discuss and consider UTPB Compliance Report. Mrs. Jones reported that there were no findings from Weaver for the UTPB economic development agreement compliance report. Motion was made by Dr. Kirk and seconded by Ms. Hollmann to approve the UTPB Compliance report. The motion was approved by unanimous vote. Discuss and consider the Taylor Services Solutions economic development agreement. Mr. Russell asked for the changes. He stated to include the red line changes in all the future agreements. The grant was for $862,579 to be paid out over five years. Taylor Services was expanding its facility and the investment was tied in Ector County. Motion was made by Ms. Hollmann and seconded by Dr. Kirk to approve the Taylor Service Solutions economic development agreement. The motion was approved by unanimous vote. Remove from the table to discuss and consider amendment to Downtown Infrastructure Improvement grant with Icon Sports and Entertainment dba Patrick Clay’s Icon Tavern. Motion was made by Dr. Kirk and seconded by Mr. Navarrete to remove from the table. The motion was approved by a 4-0 vote with Ms. Hollmann abstaining. John Herriage introduced Elizabeth Prieto, Interim Downtown Odessa Director. Shawn Rodriguez, Icon Tavern owner, provided two bids for the fire suppression. The total project cost was $70,953 and the grant would be $35,476.50 which was 50% of the cost. Motion was made by Mr. Robinson and seconded by Dr. Kirk. to approve the Icon Tavern amendment of the infrastructure grant for $35,476.50. The motion was approved by a 4-0 vote with Ms. Hollmann abstaining. Impact fee presentation. Tom Kerr, Director of Public Works/Utilities stated that the foundation and purpose for the impact fees was to recover cost for infrastructure. The impact fee has an established a methodology. Odessa impact fees were below the City of Midland’s fees. The Capital Improvement Advisory Committee worked hard to establish the process. The impact fees were determined with service areas of roadway, water and wastewater. Projects would be developed for each service area. He reviewed the service area maps. He explained the recoverable project cost that was based on calculations. Mr. Kerr reviewed the fee structure. He stated that construction ODC Minutes February 9, 2023 Page 4 cost was less with water and wastewater than roadway. Mr. Kerr stated that all fees must be used in the service areas. He provided a comparison with the City of Midland. GCC grant application. Ms. Dean stated that GCC Permian requested $2 million and would retain 104 jobs and 4 new jobs. The matrix provided a $1,118,588 grant. She stated that $1 million was given for the new building. The total grant recommended was $2,118,588. Motion was made by Ms. Hollmann and seconded by Dr. Kirk to reconsider the GCC Permian grant application. The motion was approved by unanimous vote. Motion was made by Dr. Kirk and seconded by Mr. Robinson to amend the GCC Permian grant to $2,111,588. The motion was approved by unanimous vote. Citizen comments on non-agenda items. None. Upcoming dates for future ODC Board meetings. Mr. Russell stated that a joint meeting will be held on February 21 at 6 p.m. with the Council and County Commissioners to discuss interlocal agreements and the tax assistance district. Motion was made by Dr. Kirk and seconded by Ms. Hollmann to adjourn the meeting. The motion was approved by unanimous vote. The meeting adjourned at 4:09 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Jeff Russell City Secretary Vice President