Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS September 14, 2023 A regular meeting of the Odessa Development Corporation (ODC) was held on September 14, 2023, at 2:06 p.m. in the Council Chambers, 5th floor, City Hall, 411 W. 8th St. Odessa, Texas. Members present: David Boutin, Kris Crow, Larry Robinson, James Kirk, Jeff Russell, and Ismael “Mikky” Navarrete. Member absent: Melanie Hollmann. 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; and Others: other interested citizens. A quorum being present, Mr. Crow called the meeting to order, and the following proceedings were held: Mr. Navarrete gave the invocation. The Pledge of Allegiance and Texas Pledge were recited. Meetings of July 13th Sales Tax Workshop, August 3, and August 10, 2023, minutes. Motion was made by Mr. Boutin and seconded by Dr. Kirk to approve the minutes as amended. The motion was approved by unanimous vote. Contractors’ reports: Economic Development Department, Current Media Partners, Black Chamber of Commerce, UTPB-America’s SBDC, MOTRAN, and City administrative support: financials. Mr. Manskey reported on the Team Texas Site Selector Summit held on August 28-30, 2023. He reviewed the summit activities for the delegates. He handed out an Only Odessa flyer that would be given to potential companies. He reported that Odessa College would have a summit on October 26, 2023, that would address workforce solutions. He reported that social media was growing. He hoped to get some applications for business retention and expansion. The Project Liberty contract was being updated. Ms. Callicoatte stated that Team Texas had a spike on visits. She was tracking the paid campaigns. LeadForensics was a tool that would track how often people were looking at Odessa. The manufacturing campaign had a very high click through rate. The workforce campaigns had 77,221 impressions. The community profile was almost complete. With social media, Golden Shovel was providing economic development content. ODC Minutes September 14, 2023 Page 2 Mr. Boles reported on the April, May and June financials. The reports provided a breakout of funds including promotional funds, TxDOT projects, infrastructure grants, façade, and the Black Chamber of Commerce. There were no changes in investments in the May report. In June, there was $72,527,477 in total assets. Sales tax for the month was $1,094,465. The sales tax for September was $1,182,661.331. Sales tax year to date was $14,405,851.83. Motion was made by Mr. Boutin and seconded by Mr. Russell to approve the April, May and June financial reports. The motion was approved by unanimous vote. Remove from the table to discuss and consider changes to GCC Performance Agreement that were requested by GCC. Motion was made by Dr. Kirk and seconded by Mr. Navarrete to remove the item from the table. The motion was approved by unanimous vote. Mr. Jones stated that Jeff Moore approved the changes in the contract. The minimum tax assessed value was $320 million. GCC agreed with the language. Motion was made by Mr. Boutin and seconded by Dr. Kirk to approve the GCC agreement. The motion was approved by unanimous vote. Remove from the table to discuss and consider authorizing ODC to enter into an Economic Development Performance Agreement with Standard Industrial Manufacturing. Motion was made by Dr. Kirk and seconded by Mr. Russell to remove the item from the table. The motion was approved by unanimous vote. Blake Miller, Standard Industrial Manufacturing, stated that there would be more jobs created. The building was being leased with an option to purchase. He had plans to purchase. Mrs. Jones reported that there would be 22 new jobs with a cumulative payroll of $3 million. The qualification period was January 1, 2023, through December 2024. The grant was for $951,000. Motion was made by Mr. Boutin and seconded by Dr. Kirk to approve the resolution. The motion was approved by unanimous vote. Resolution No. ODC-2023R-11 - Remove from the table to discuss and consider an amendment to the EDA with Downing Permian Basin. Motion was made by Mr. Russell and seconded by Dr. Kirk to remove the item from the table. The motion was approved by unanimous vote. Mr. Jones stated that Downing had its property in the Leeco Industrial Park. Mrs. Jones stated that there would be 57 retained employees and 53 new jobs. The annual cumulative payroll was $7,720,040. The grant was not based on capital investment but on equipment. The grant was for $1,640,000 over five years. Motion was made by Mr. Boutin and seconded by Dr. Kirk to approve the resolution. The motion was approved by unanimous vote. Discuss and consider requested changes from Liberty Oilfield Services to their proposed EDA with the ODC. Mr. Crow asked if there was a software to track contract changes to view the changes from each contract. Mr. Manskey reviewed the process for ODC Minutes September 14, 2023 Page 3 the contracts being approved by the parties. Liberty would invest $34 million, retain 1,000 jobs, and create 456 new jobs. The grant was for $2.5 million. Mr. Boutin stated that the matrix was a guideline and had flexibility with the board. Motion was made by Mr. Boutin and seconded by Dr. Kirk to approve the Liberty contract changes. The motion was approved by unanimous vote. Discuss and consider RFP for ODC bookkeeping and accounting services. Mr. Crow suggested an RFP to handle ODC bookkeeping and accounting services by an outside account firm. Mr. Boles recommended to keep in house as it was dealing with taxpayer funds and the City monitored the funds. Mr. Boutin stated that it would lose the synergy in providing services. Mr. Boles stated that ODC was a component of the City. Mr. Russell stated that it was the desire of Council for ODC to stand on its own and to quit relying on City staff. Mr. Boutin stated that it was heavily entwined. Mr Russell stated that it should be a discussion with management and Council. Mr. Jones stated that the City would always be tied to ODC. A discussion with staff and Council should be held. Discuss and consider the establishment of a separate ODC bank account. Mr. Boles stated that the funds were from the taxpayers. The daily operations were with the City’s operations. He explained the process. Mr. Crow was trying to simplify the process. Mr. Crow requested more information and hoped to have the financial reports up to date. Discuss and consider the designation of an ODC secretary and the attendant duties thereof. Mr. Crow stated that city staff was used for the ODC economic development which included the minutes and record keeping. It was part of the contract in assigned duties. Ms. Grimaldo stated that the services were available and would continue or turn over the duties if the board desired. Mr. Crow stated to reduce the load off of City staff. He suggested using the Chamber of Commerce Economic Development Department. Mrs. Earls stated that the staff was capable, the contract was $175,000 for the City, and the Chamber contract was on a quarterly basis. She stated that they could handle the duties and did not need to add funds to the budget. ODC Committee and Officer reports: Partnership, Tax Incentive, Advertising, DOI Grants Design Review Board, Compliance. Mr. Russell stated that the advertising was working with the committee and would track monthly leads. Mr. Robinson stated that DOI had three new projects. Closed Session the board may recess into Executive Session in compliance with section 551.001 et. Seq. Texas Government Code. No action. Upcoming dates for future ODC Board meetings. The next ODC meeting was October 12, 2023, at 2:00 p.m. ODC Minutes September 14, 2023 Page 4 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 4:03 p.m. ATTEST: APPROVED: Norma Aguilar-Grimaldo, TRMC, CMC Kris Crow City Secretary President