Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS June 15, 2023 A regular meeting of the Odessa Development Corporation (ODC) was held on June 15, 2023, at 3:00 p.m. in the Council Chambers, 5th floor, City Hall, 411 W. 8th St. Odessa, Texas. Members present: Melanie Hollmann, David Boutin, Kris Crow, Larry Robinson, James Kirk, and Jeff Russell. Member absent: Ismael “Mikky” Navarrete. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Dan Jones, City Attorney; Elizabeth Prieto, Downtown Odessa Executive Director; Christina Buhnerkempe, Legal Assistant; and ODC Contractors: Renee Earls, Chamber of Commerce; Tracy Jones, Chamber of Commerce, Christi Callicoatte, Current Media Partners; Chris Walker, Black Chamber of Commerce; and Others: Mayor Javier Joven, Kaylie Banda and others. A quorum being present, Mr. Crow called the meeting to order, and the following proceedings were held: Dr. Kirk gave the invocation. The Pledge of Allegiance and Texas Pledge were recited. Motion was made by Mr. Boutin and seconded by Mr. Robinson to suspend the rules. The motion was approved by unanimous vote. May 18, 2023 minutes. Motion was made by Mr. Russell and seconded by Ms. Hollmann to approve the minutes as amended. The motion was approved by unanimous vote. Discuss and consider Odessa Development Corporation annual budget calendar for Fiscal Year 2023-2024 and ODC request for proposals Fiscal Year 2023-2024. Discussion was held on the budget calendar and the meetings for July 13 and August 3, 2023. Mrs. Buhnerkempe stated that the request for proposal letters to the contractors would be sent. Motion was made by Mr. Boutin and seconded by Dr. Kirk to approve the amended budget calendar with the July 13 meeting including financials and the sales tax workshop and the August 3 meeting including the General Development Plan and proposals. The motion was approved by unanimous vote. The letter would be sent by the Finance Department. Mr. Russell asked that the Communications Department publicize the letter of proposals. ODC Minutes June 15, 2023 Page 2 Motion was made by Ms. Hollmann and seconded by Dr. Kirk to send the letter for proposals with the revised included language “and develop local workforce”. The motion was approved by unanimous vote. Mr. Russell stated that the July 13 ODC meeting would be at 1 p.m. followed by the sales tax training. Contractors’ reports: Economic Development Department, Current Media Partners, Black Chamber of Commerce, UTPB-America’s SBDC, MOTRAN, City administrative support – financials, and Annual Financial Audit Report. Mrs. Jones reported on the projects that were recruited from Select USA. Project Air was a new project for expansion. Project Seragio was a battery storage company that had a $180 million capital investment. She provided updates on other projects. She stated that the local business retention and expansion visits were slow. Ms. Callicoatte reported that the website would have its soft launch. She was working on videos and the web banner was complete. Testimonials would be done with business retention companies. A community flip book was digital and new. There would be a podcast, flyer and social campaign. She presented a marketing logo of Only Odessa. A brochure would be made that would list ODC supported projects and workforce training. Motion was made by Mr. Russell and seconded by Dr. Kirk to move agenda items 8, 9, 10 before number 6. The motion was approved by unanimous vote. Grant application for Project Air. Ms. Banda stated that Texline Energy Services rebuilt components for natural gas compressors and servicing. Texline would add 15 new employees with a total of 35 employees at project completion. The capital investment was $2.27 million. The Compliance Committee recommended a grant of $942,459.60 to be paid out over five years. Motion was made by Mr. Boutin and seconded by Dr. Kirk to approve the grant for Texline Energy Services for $942,459.60. The motion was approved by unanimous vote. Grant application for Project Liberty. Ms. Banda stated that Liberty Oilfield Services provided completion services and technology to on shore oil and natural gas exploration. Liberty wanted to consolidate and relocate to Odessa. Total new added employees were 1,456 with total payroll of $103,051,904. Liberty’s capital investment was $34 million. The Compliance Committee recommended a grant of $2,500,000 to be paid out over five years. Mr. Russell asked how many employees were in the Odessa and Midland area. Ms. Jones would provide that information. Motion was made by Mr. Boutin and seconded by Ms. Hollmann to approve the grant for Liberty Oilfield Services for $2,500,000. The motion was approved by unanimous vote. Resolution No. ODC-2023R-06 - Authorize ODC payment to Kaige Equipment. Ms. Banda stated that the audit was for April 2021 through April 2022. There were issues which delayed the audit. Kaige was in compliance and met requirements in payroll of $1,804,249 and 33 employees. The 941 reports did not match with the Texas Workforce quarterly reports as it did not match time frames. ODC Minutes June 15, 2023 Page 3 She suggested revising the maturity date. Mrs. Jones recommended that it be based quarterly. Motion was made by Dr. Kirk and seconded by Mr. Russell to approve the resolution for the payment to Kaige Equipment. 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. The Partnership would be meeting. Mr. Russell encouraged that the entities’ representatives try to attend. He asked for a summary of technology data and services for its agenda. Mr. Crow stated to remove the legal services from the agenda. He asked that the contracts be sent to the contractor. Amendment to Downtown Infrastructure Improvement Grant with PediCardio. Ms. Prieto stated that PediCardio requested a six month extension for its grant. The owner had issue with materials and delays. He was confident he would finish in six months. Motion was made by Mr. Boutin and seconded by Dr. Kirk to approve a six month extension to the grant. The motion was approved by unanimous vote. Resolution No. ODC-2023R-07 - Authorize ODC to enter into an EDA with GCC. Ms. Buhnerkempe stated that Mr. Moore was waiting on the added language for the contract. Mr. Russell stated changes included the taxable value. Motion was made by Dr. Kirk and seconded by Mr. Robinson to approve resolution. The motion was approved by unanimous vote. The City Attorney’s office would work with Mr. Moore with the contract. The GCC contract would be brought back to the ODC. Resolution No. ODC-2023R-08 - Authorize ODC to enter into an EDA with Border States Industries, Inc. Mrs. Jones stated that Border States approved the changes. Motion was made by Mr. Boutin and seconded by Dr. Kirk to approve resolution. The motion was approved by unanimous vote. Close Session. The board recessed into Executive Session in compliance with Section 55.001 et. Seq. Texas Government Code in accordance with: Section 551.087. Deliberation regarding Economic Development negotiations: i. Discussion regarding Project Ironman Motion was made by Mr. Boutin and seconded by Mr. Russell to recess for Executive Session under Section 551.087. The motion was approved by unanimous vote. Motion was made by Mr. Russell and seconded by Dr. Kirk to return from Executive Session. The motion was approved by unanimous vote. Mr. Jones stated that no action was taken in executive session. Citizen comments on non-agenda items. None. ODC Minutes June 15, 2023 Page 4 Upcoming dates for future ODC Board meetings. Mr. Crow stated that the ODC board meeting and the sales tax workshop was scheduled for July 13, 2023. Motion was made by Dr. Kirk and seconded by Mr. Russell to adjourn the meeting. The motion was approved by unanimous vote. The meeting adjourned at 4:28 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Kris Crow City Secretary President