Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS July 13, 2023 A sales tax training workshop meeting of the Odessa Development Corporation (ODC) was held on July 13, 2023, at 2:00 p.m. at Lecture Hall #128, Gregory Williams Building, Odessa College, 201 W. University, Odessa, Texas. Members present: Melanie Hollmann, David Boutin, Kris Crow, Larry Robinson, Jeff Russell and Ismael “Mikky” Navarrete. Member absent: James Kirk. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Dan Jones, City Attorney; Christina Buhnerkempe, Legal Assistant; Naira Enriquez, Legal Assistant; and ODC Contractors: Renee Earls, Chamber of Commerce; Tom Manskey, Chamber of Commerce; Tracy Jones, Chamber of Commerce, Christi Callicoatte, Current Media Partners; and Others: Council members Steven Thompson, Greg Connell, Gilbert Vasquez; Mayor Javier Joven, and others. Sales Tax Training Workshop. Carlton Schwab, TEDC President, provided the background on TEDC. It offered resources, advocacy and legislative affairs for economic development. He gave the background on the economic development sales tax and explained how the tax worked. The economic development supported local businesses through site development, skilled workforce, community revitalization, problem solving and building strong relationships. Statewide economic development organizations implemented a plan of action to improve the economic well-being and the quality of life. It was important to diversify the economy, control one’s own destiny and compete for investment. The key players included local government, workforce development organizations, the chamber, business associations, and state government agencies. He stated that Texas was having workforce challenges and explained the importance of Texas with location to the United States. Mr. Schwab highlighted Type A and Type B governance. He recommended to have both Type A and B. If the city had both types, then each Type must have its own board. Type A provided for primary job development. He reviewed the requirements of each type and its reporting requirements. The permissible projects were reviewed for Type A, which was to create or retain primary jobs, provide infrastructure improvement projects or be manufacturing, industrial or warehouse. Council member Thompson asked if roads qualified under Type A. Mr. Schwab stated it was an acceptable expenditure. Mr. Russell was concerned with funds for roads. Mr. Schwab stated that there was no policing enforced and someone must sue. There was a penalty. The economic sales tax was for economic and community development. He reviewed the changes in laws with the last legislative session. He explained the Texas Enterprise Fund which awarded funds if there was one Texas city site. The funds were offered after the incentives and there were claw back provisions. The Tax Abatement program was reviewed. Mr. Schwab explained the Opportunity Zone that was a federal designated area by census tracts. It was determined by location and boundaries. The enterprise zones were a tool to drive ODC Minutes July 13, 2023 Page 2 investment into an area of the city. Mr. Manskey stated that it was for an area below a certain income level with lower wages and employment. The prospects were not interested in the enterprise zone. Career and technical centers were allowable projects. The workshop adjourned at 4:06 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Kris Crow City Secretary President