Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS August 3, 2023 A workshop meeting of the Odessa Development Corporation (ODC) was held on August 3, 2023, at 3:03 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, and Ismael “Mikky” Navarrete. Others present: City Staff: Norma Aguilar-Grimaldo, City Secretary; Dan Jones, City Attorney; Seth Boles, Interim Finance Director; Christina Buhnerkempe, 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; Britney Mann, Current Media Partners; Chris Walker, Black Chamber of Commerce; Tyler Patton, SBDC; James Beauchamp, MOTRAN; and Others: other interested citizens. A quorum being present, Mr. Crow called the meeting to order, and the following proceedings were held: Mr. Boutin gave the invocation. The Pledge of Allegiance and Texas Pledge were recited. Discuss and review the Odessa Chamber of Commerce FY 23-24 economic development contractor proposal. Mr. Manskey stated that any funds not spent were returned to the City and audits were conducted. He reviewed the budget line items that had changes. He requested an additional staff member to work with the City development team in communicating and help with the building process for clients. The person would link the projects that come through the Chamber, be a self-starter and set appointments. He reviewed the Economic Development staff’s roles. He discussed the subscriptions, promotion, advertising and prospect development line items. Mr. Russell stated that any advertising should be through Current Media. The funds would not be spent until there was board approval for land development and workforce programs. Mr. Crow suggested a workforce program to grow our own through local schools, college and university. Discuss and review the Current Media FY 23-24 economic development marketing proposal. Mrs. Callicoatte stated that the marketing contract started in February. There was a new website and video. She reviewed the goals for the year that included promoting the city with external prospects, local prospects, targeting audiences, and workforce development. The key industries would be highlighted with manufacturing. Mr. Russell stated to focus on our strong resources. Ms. Mann discussed targeting through programmatic digital to target decision makers and adjustments would be made with evaluating results. Mrs. Callicoatte would be collaborating with the Economic ODC Minutes August 3, 2023 Page 2 Development Department to ensure the strategy aligns with the marketing plan The marketing budget proposal was $586,950 and with the contingencies of workforce development and public relations brought the total to $748,950. Discuss and review the Black Chamber of Commerce FY 23-24 economic development contractor proposal. Mr. Walker stated that the Black Chamber was a conduit to the Odessa Chamber and Hispanic Chamber and was a support group to assist. The partnership connected people with the proper agencies. The budget request was $50,000. The Black Chamber of Commerce had about 226 memberships. Discuss and review the UTPB-America’s SBDC FY 23-24 economic development contractor proposal. Mr. Patton stated that SBDC supported clients in starting new businesses. For the current year, 41 new businesses were started. He reported that 56% owners were underserved in the community. Discuss and review MOTRAN FY 23-24 economic development contractor proposal. Mr. Beauchamp stated that MOTRAN’s budget was supported by private contributors, ODC and the Midland Economic Development Corporation. The goal was to obtain more State funds. An additional $5 million in Federal funding for Ector County was obtained for the US Hwy. 385 and Loop 338. The Permian Basin Regional Freight Study was updated, and more funding would be added to the area. The social media campaign has allowed to transmit information and has provided more effective conversations. Projects would be prioritized based on traffic patterns. He reviewed a map that had 80% tied to the Midland Odessa area in making a transportation hub. Discuss and review the City administrative support FY 23-24 proposal. The City payment was changed to $205,249 for monthly payments of $17,112.42. Exhibit A had minor changes regarding the ODC agenda. Mr. Russell stated for the City Attorney’s office to review the ODC agenda. Motion was made by Mr. Russell and seconded by Ms. Hollmann to suspend the rules. The motion was approved by unanimous vote. Discuss and consider ODC proposals, contracts, budgets, operations, structure and/or organization of economic development. Mr. Boles reviewed the proposed budget with sales tax budgeted conservative of $12 million. The expenditures were reviewed. Any contingencies to be spent would require board approval. Ms. Hollmann wanted to see a breakdown of man hours from the City staff. With the outside counsel, there would be less amount of time from the City Attorney. The outside counsel was paid from Special Services. Jeff Moore’s rate was $250 an hour. Ms. Hollmann suggested to budget $2,500 a month for Mr. Moore. She asked that the City staff track the time. She expected that the City’s responsibility would be reduced with the outside counsel. Special Services would have $30,000 budgeted and the City’s expenditure would be dropped to $175,000. Motion was made by Mr. Robinson and seconded by Dr. Kirk to amend the City of Odessa’s budget to $175,000. The motion was approved by unanimous vote. Motion was made by Mr. Russell and seconded by Mr. Navarrete to add $30,000 to Special Services. The motion was approved by unanimous vote. ODC Minutes August 3, 2023 Page 3 Motion was made by Mr. Robinson and seconded by Mr. Navarrete to approve the MOTRAN’s budget for $142,500. The motion was approved by unanimous vote. Motion was made by Mr. Russell and seconded by Mr. Navarrete to approve the UTPB- SBDC’s budget for $106,700. The motion was approved by unanimous vote. Motion was made by Dr. Kirk and seconded by Mr. Navarrete to approve the Black Chamber of Commerce’s budget for $50,000. The motion was approved by unanimous vote. Motion was made by Dr. Kirk and seconded by Mr. Navarrete to approve the Current Media Partners’ budget for $748,950. The motion was approved by unanimous vote. Discuss and review General Development Plan FY 23-24. Mr. Russell stated that the same plan has been in place for a few years. He stated that there was a need for workforce development as discussed in prior meetings. There was a vast majority of ODC efforts on business expansion and retention. The last big diversification was the Family Dollar distribution center. He suggested a shift to workforce development with training and recruiting to develop the work force. He suggested that there be a partnership with entities and the University to recruit retrain and retire. He stated that a lot of community economic developments have split off as a standalone organization. He proposed a shift focus of recruiting companies to workforce development. He stated another area was to develop an idea of marking Odessa an easy place to do business by removing barriers and streamline the process. He asked that the plan be reviewed and decide to stay a part of the Chamber or stand alone. Mr. Russell stated that the Chamber was spending time working for Grow Odessa and ODC was getting billed and was confusing and conflicted. He stated it may not be efficient. He stated that Mr. Manskey was hired with little input from the ODC board with only one ODC board member part of the hiring process. Ms. Hollmann was of an opinion of a successful development corporation. She wanted concrete reasons. Mr. Crow stated that more transparency would be fostered. He stated that the board only sets the budget and didn’t see the activity on what has been done until after the fact. Mr. Boutin stated that the Chamber was our contractor and was utilized for economic development to fulfill the contract. As a standalone, ODC would own the employees and he didn’t want to grow the government. Ms. Hollmann stated that the Chamber handled its payroll, taxes, and benefits and it would be a liability for ODC to have employees. Mr. Crow stated that the ODC Executive Director would oversee the employees. Ms. Hollmann stated that this idea was from personal feelings. She asked to show the weaknesses as it was only generalities. Mr. Russell stated that the RFP was not offered out and given to the Chamber. Mr. Boutin stated that the change could be emphasized in expanding the General Development Plan as opposed to contractors. Ms. Hollmann stated it was a premature discussion without the cost information. Mr. Russell suggested to explore the options. Mr. Robinson stated that there was a lot of dollars to advertising and the Chamber. He suggested to form a committee as a different approach may be needed. Ms. Hollmann stated that this was the first time the Chamber has heard the concerns. She stated that due diligence was needed. Mr. Crow suggested a month to month contract. Ms. Hollman stated the Chamber dealt with site selectors and could not do their job on a month to month contract. She stated that good diligence needed to be made which may take one year. Mr. Boutin stated that month to month would not work. Mr. Crow stated that the contractor had the right to turn down the contract. Mrs. Earls stated that the Chamber was not part of the City. The three areas of the Chamber were memberships, tourism and economic development. The RFP was part of the budget ODC Minutes August 3, 2023 Page 4 process and anyone could apply. In the hiring of Mr. Manskey, Mr. Boutin and Tim Edgmon, former ODC board President, were on the hiring committee. The Chamber had separate books, and funds which provided transparency and accountability. The Chamber was overseen by 30 board members. With the cost of living, it was tough to recruit to Odessa. She stated that Grow Odessa was a volunteer organization that work on economic development. Mr. Boutin stated that if the scope needed to be changed then it should be discussed and provide direction. Mrs. Earls stated that the Chamber worked well together and the focus was on the community. She stated that the Chamber budget was $2.9 million, and all funds were audited. The Chamber was to promote, grow and make Odessa a better place. Mr. Crow suggested a planning session for the General Development Plan. It could be amended. The infrastructure and façade funds were from the promotional fund. Mr. Russell stated the infrastructure and façade grants had a better fit with TIRZ. Mr. Boutin stated that it was unfair for the Chamber to be month to month. Motion was made by Mr. Russell and seconded by Mr. Boutin to work on the language for workforce development for the General Development Plan. The motion was approved by unanimous vote. There would be more emphasis to workforce development. Mr. Russell would work with Mr. Manskey. Motion was made by Mr. Russell and seconded by Mr. Boutin to table the General Development Plan. The motion was approved by unanimous vote. Motion was made by Ms. Hollmann seconded by Mr. Boutin to approve the Chamber economic development proposal for one year as presented. The motion was approved by a 6-1 vote with Mr. Crow casting the nay vote. Motion was made by Ms. Hollmann and seconded by Dr. Kirk to adjourn the meeting. The motion was approved by unanimous vote. The meeting adjourned at 6:00 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Kris Crow City Secretary President