Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS December 14, 2023 A regular meeting of the Odessa Development Corporation (ODC) was held on December 14, 2023, at 2:08 p.m. in the Council Chambers, 5 th floor, City Hall, 411 W. 8th St. Odessa, Texas. Members present: David Boutin, Melanie Hollmann, Kris Crow, Larry Robinson, James Kirk, and Jeff Russell. Member absent: Ismael “Mikky” Navarette Others present: Dan Jones, City Attorney; John Beckmeyer, City Manager; Christina Buhnerkempe, Legal Assistant; Elizabeth Prieto, Downtown Executive Director; and ODC Contractors: Renee Earls, Chamber of Commerce; Tom Manskey, Office of Economic Development; Kathi Vaughn, Office of Economic Development; Tracy Jones, Office of Economic Development; Christi Callicoatte, Current Media. A quorum being present, Mr. Crow called the meeting to order, and the following proceedings were held: Larry Robinson gave the invocation. The Pledge of Allegiance and Texas Pledge were recited. November 9, 2023 meeting minutes. Motion was made by James Kirk and seconded by David Boutin 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 distributed GCA’s Fall Activity report to the ODC board members. The Economic Development Department’s October financial report is included in the board packet. November financials should be available next week. David Boutin stated that the financial report provided is the balance sheet. The income statement should be included as well. Consultants were in Odessa for Project Legion and Project Molecule. Project Legion is 1PointFive and attended Ector County Commissioners court for approval of an MOU. The consultants wanted to have an MOU approved because their commitment is long term. The consultants were also here for Project Molecule which is Mathison Tri Gas Inc. They were able to get a reinvestment zone established today with commissioner’s court. They plan on building an air separation plant. This is an ancillary business to 1PointFive.The reinvestment zone will be within 1PointFives’ 4.2-acre property and will be approximately a $100,000,000 investment. Mr. Manskey discussed future improvements to the BR&E program. Past visits have been drop-ins, however that is becoming less successful. The 2024 goal for Economic Development will be 120 in person visits which began 12/1/2023 through 12/31/24. Mr. Manskey has been working on a new survey. The survey will ODC Minutes December 14, 2023 Page 2 discuss workforce related issues and provide a lot of data. BR&E will schedule 3 hours for appointment setting each week. Mr. Manskey is working with Odessa College on a grant request which we were the lead on. It is a program of ACCE, American Chamber of Commerce Executives, for economic development departments affiliated with a chamber to participate. It is the Equitable Credential Attainment Program. Mr. Russell has requested 1PointFive give a presentation to the ODC Board to update them on the DAC project. Mr. Manskey has tentatively requested an update at the January 11 th ODC Board meeting. Mr. Russell had a question regarding qualifications for enterprise zones and reinvestment zones. Mr. Manskey stated those are done by census tract. Additional research will need to be done to provide a report. Mrs. Callicoatte reported the Target Industry Analysis is taking longer than expected due to the lack of people taking the survey when it’s emailed to them. They will close the survey down in a week to get more results in. The surveys they have received are very good feedback. Golden Shovel will begin conducting one on one interviews in January. Probably will have results of the survey in February. Website numbers are down from last month. A couple of reasons, add campaigns; digital, paid social and programmatic budget was reduced beginning November 1st. Current Media plans to continue focusing on advanced manufacturing at the lowest level, will keep BR&E campaigns in the middle, and will put more behind workforce with the Workforce Summit coming up. The lead forensics component gives very detailed information on companies looking at the website. Many local companies are looking at the website and that information is being shared with the economic development team who are reaching out to those companies. Mrs. Callicoatte will separate the forensics report into local and external companies. Digital campaigns are still performing above industry standards even with the reduced budget. A very simple year end update of activities has been posted on the website. A campaign was conducted during the Oil Show and retargeted those people for 45 days. Performance was strong. Continues to work with the economic development department on activities sitting in on calls every week working on the upcoming Workforce Summit. Mr. Mathew Magee, Finance Controller for the City of Odessa, reported on financials. The last financial report was given in May. The department has gone through some changes. The finance department continues to work on bringing finances up to date. Financials have been updated through October. Kaylie Banda the new Finance Director will give an update at the January ODC Board meeting. ODC Investment Summary October 2023 the beginning balance is $77,378,936, ending balance is $78,934,212. Many of the Municipal Securities are set to mature 2024, will look at reinvesting. Sales Tax Revenue coming in for fiscal year 2023-2024 YTD is $3.5 million, did have budgeted for $2.8 million. Mr. Russell stated that the month of December 2024 is down compared to the month of December 2022 -4.15%. Also, noticed on the Investment Portfolio that a 12-month CD with West Texas National Bank has matured. Mr. Magee stated they will be looking into reinvesting. Mr. Boutin would like to see at the next meeting an analysis showing why the sales tax numbers would be down from 2022. Mr. Crow would like to see at the next meeting what expenses over the next quarter ODC will have going out. Mr. Beckmeyer would like the board to sit down with the finance department and show them what the ODC board wants to see on the financials. Mr. Beckmeyer stated that year over year December sales tax numbers have been coming lower across the nation. Mr. Russell stated he would like to see a comparison of sales tax numbers, Odessa to other cities. Mr. Boutin recommended board members think about what they want to see on the financials. Tabled - Discuss and take any necessary action regarding EDA for infrastructure grant at 423 N. Grant with E&L Home Builders. Mr. Jones recommended tabling the ODC Minutes December 14, 2023 Page 3 façade and infrastructure agreements until the ODC board addresses guidelines for the program. Ms. Prieto agreed to table façade and infrastructure agreements stating all could be approved at the January 11th ODC Board Meeting. Mr. Crow recommended the board have a special meeting to amend the guidelines before the January meeting. The board agreed to meet on Monday, December 18 th at 1:00 p.m. Motion was made by Dr. Kirk and seconded by Mr. Russell to table the item. The motion was approved by unanimous vote. Tabled - Discuss and take any necessary action regarding EDA for façade grant at 423 N. Grant with E&L Home Builders. Motion was made by Ms. Hollmann and seconded by Dr. Kirk to table the item. The motion was approved by unanimous vote. Tabled - Discuss and take any necessary action regarding EDA for façade grant at 406 N. Texas Ave. with by Amber Young. Motion was made by Dr. Kirk and seconded by Mr. Boutin to table the item. The motion was approved by unanimous vote. Tabled - Discuss and take any necessary action regarding EDA for infrastructure grant at 801 N. Grant with Scooter’s Coffee. Motion was made by Mr. Russell and seconded by Mr. Boutin to table the item. The motion was approved by unanimous vote. Tabled - Discuss and take any necessary action regarding EDA for façade grant at 801 N. Grant with Scooter’s Coffee. Motion was made by Dr. Kirk and seconded by Mr. Russell to table the item. The motion was approved by unanimous vote. Tabled - Discuss and take any necessary action regarding EDA for Liberty Oilfield Services. Liberty has asked for a change to be made to the indemnity page. Mr. Jones stated the council has already acted on this agreement and it cannot be changed. City Legal’s recommendation was to decline. Mr. Moore will respond to Liberty Oilfield with the agreement as approved by council on October 10, 2023 is what will be accepted. Motion was made by Mr. Russell and seconded by Mr. Robinson to approve no changes to the agreement. The motion was approved by unanimous vote. Discuss and take any necessary action regarding an ODC Planning Retreat in the next two or three months including potential date. Mr. Crow stated that he would like Mr. Moore to be present. The retreat will be at least half a day, either morning or afternoon. Consensus of the board was to meet January 25th beginning at noon. Mr. Manskey will contact Mr. Moore. ODC Committee and Officer reports: Partnership, Tax Incentive, Advertising, DOI Grants Design Review Board, and Compliance. Advertising committee met before the board meeting for updates. DOI will meet next week. Closed Session the board may recess into Executive Session in compliance with section 551.001 et. Seq. Texas Government Code. No action. Citizens comments on non-agenda items. No comments. ODC Minutes December 14, 2023 Page 4 Upcoming dates for future ODC Board meetings. The next ODC meeting was scheduled for January 11, 2024, at 2:00 p.m. Motion was made by Ms. Hollmann and seconded by Mr. Russell to adjourn the meeting. The motion was approved by unanimous vote. The meeting was adjourned at 3:01 p.m. PREPARED BY: APPROVED: Kathi Vaughn, Economic Development Kris Crow Specialist President ATTEST: Norma Aguilar-Grimaldo, TRMC, CMC City Secretary