Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS February 15, 2024 A regular meeting of the Odessa Development Corporation (ODC) was held on February 15, 2024, at 2:32 p.m. in the Council Chambers, 5 th floor, City Hall, 411 W. 8th St. Odessa, Texas. Members present: David Boutin, Kris Crow, Melanie Hollmann, Ismael “Mikky” Navarette, Larry Robinson, James Kirk, and Jeff Russell. Others present: Dan Jones, City Attorney; Christina Buhnerkempe, Legal Assistant; John Beckmeyer, City Manager; Christina Burns, Asst. City Manager; Kaylie Banda, Director of Finance; Tom Manskey, Office of Economic Development; Kathi Vaughn, Office of Economic Development; Tracy Jones, Office of Economic Development; Christi Callicoatte, Current Media; Chris Walker, Black Chamber of Commerce; and Others: John Bushman, ICA Development, LLC; Callie Norris, ICA Development, LLC; Tom Glasman, ICA Development, LLC; Dr. Sandra Woodley, UT Permian Basin; Jacqui Gore, UT Permian Basin; and other interested citizens 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. Discuss and take any necessary action regarding the appointment of officers. Motion was made by Mr. Russell to nominate Mr. Crow for President and seconded by Mr. Robinson. The motion was approved by unanimous vote. Motion was made by Mr. Navarette to nominate Mr. Russell for Vice President and seconded by Dr. Kirk. The motion was approved by unanimous vote. Motion was made by Mr. Russell to nominate Dr. Kirk for Assistant Secretary and seconded by Mr. Navarette. The motion was approved by unanimous vote. January 11, 2024 meeting, January 25, 2024 Planning Meeting, and January 29, 2024 Special Meeting minutes. Mr. Boutin advised of corrections to the January 25, 2024 Planning Meeting. Motion was made by David Boutin and seconded by Mr. Navarette to approve all minutes as amended. The motion was approved by unanimous vote. UTPB Campus and Future Plans Presentation. Dr. Sandra Woodley thanked the ODC Board for investing in the university and shared future plans for the university and how they plan to assist with the workforce issues. ODC Minutes February 15, 2024 Page 2 Contractors’ reports: Economic Development Department, Current Media Partners, Black Chamber of Commerce, UTPB-America’s SBDC, MOTRAN, and City administrative support: financials. Mr. Manskey discussed Project Molecule ancillary to the 1PointFive project. Representatives have been in Odessa several times within the last few weeks. The project is moving forward. Ultimately the project will be a $75-$100 million cap ex with less than 10 FTE’s. Multiple meetings with representatives of Project Lone Star Lithium, the electric car battery project. Due to some recent Federal Legislation this project is moving along again. BR&E visits are increasing in number. Sales tax figures were up for the month of February 2024 representing sales tax revenue collected in the month of December 2023. There has been an increase in inquiries regarding the availability of land. Mr. Russell requested that the economic development team attend events that can show a return on investment. Mr. Russell would like an update on the 1PointFive project. Mr. Crow would like a project update on Nacero as well. Mr. Manskey will contact both to schedule updates to the ODC Board. Mrs. Callicoatte discussed the Target Industry Analysis. They are working on the one- on-one interviews and should have a report available for the next board meeting. Multiple attempts to reach out and get people to take calls. Mrs. Callicoatte would like to meet with the Advertising Committee before the next ODC Board meeting to review. Website, the differences in January were a result of the Workforce Summit. Lead Forensics callouts are being shared with Mr. Manskey and Mrs. Jones. BR&E, Site Selector and Workforce digital campaigns continued through January at the reduced budget and will continue in February at the same budget. Mr. Russell had a question about the process of when a company/person downloads the ODC application for incentives. Mrs. Callicoatte stated the information about the company or person who downloaded the ODC application is shared with the economic development team. Per Mr. Manskey, those go to the top of the contact list. Once the target industry analysis is complete, tactics will change, but emphasis in the first quarter will continue to be on workforce and BR&E. Current Media ran a geo-fence campaign around the SHOT Show in Vegas that continued to run 30-days after the show. A report will be provided at the March board meeting. Mrs. Callicoatte and Mrs. Jones are working on a check list from the workforce retreat in terms of tools. They are working to develop an eblast. Mr. Walker gave a report for the Black Chamber of Commerce. They conducted over thirteen counseling sessions in the month of January. Growth in daily contacts, over 400 for the first two months of the 2024 year. The chamber continues to partner with one of the local churches to deliver food boxes to families in need. “The Shirt off my Back” program kicked off January 1, 2024. This program helps local organizations with clothing for individuals that need casual attire. Ms. Banda stated the department now has the technical capacity to pull the financial report that they normally provide to the board and should be back on track by the March meeting. Ms. Banda reviewed the Sales Tax Revenue Report. February was a good month for sales tax. ODC’s sales tax was $1,423,384.58 which is above what was projected for the month and 6.4% above February 2023. Ms. Banda reviewed municipal securities. Some have matured. She will contact the broker to see what rates are available. Mr. Crow would like to shift money from TexPool / Logic accounts over to lock in some higher yields for a longer period. Mr. Crow would like to see the list of ODC’s commitments / obligations of grantees over the next 12 to 36 months. ODC Minutes February 15, 2024 Page 3 Resolution No. ODC-2024R-04 – Discuss and take any necessary action regarding EDA with Walkamin Trading Company, INC. (Resolution). Mr. Manskey stated that previously the resolution did not accompany the agreement when previously presented to the ODC Board and City Council. The agreement and resolution are now being provided for approval. Motion was made by Mr. Boutin and seconded by Mr. Navarette to approve the resolution. The motion was approved by unanimous vote. Resolution No. ODC-2024R-05 – Discuss and take any necessary action regarding EDA with ICA Development, LLC. (Resolution) Mr. Manskey provided a copy of the exhibit for ICA Development’s plans to construct infrastructure improvements including utilities, roadway, and drainage improvements located at the southwest corner of Texas S. H.191 and Yukon Road, located within the City of Odessa. The board discussed how the requested grant funds, almost all dedicated to road and drainage improvements, are necessary to develop the property, a 1,500-acre parcel. Although a retail component is part of planned development of the parcel, the components that dominate the scope of the planned development are commercial, industrial, and workforce housing. The requested funding of road improvements will help facilitate traffic circulation necessary for the overall development. ICA provided the Board with a clear understanding of the road improvements it has completed to date, as well as those that will be funded by ICA in the future to complete the project. ICA demonstrated that the vast majority of circulatory road improvements will ultimately have been funded by ICA. Mrs. Hollmann will abstain from voting. Motion was made by Dr. Kirk and seconded by Mr. Russell to approve the resolution. Mrs. Hollmann abstained. The motion was approved by unanimous vote. 6 votes, 1 abstention. Resolution No. ODC-2024R-06 – Discuss and take any necessary action regarding Compliance Monitoring Report for Apergy / Champion X presented by Whitley Penn. (Resolution) Mr. Manskey stated the grantee did meet the FTE and Cap Ex requirements for their third year. Mr. Crow stated the grant payment is $200,000. $600,000 has been previously paid taking the total to $800,000 of a $1,000,000 grant. 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-2024R-07 – Discuss and take any necessary action regarding Compliance Monitoring Report for West Texas Food Bank presented by Whitley Penn. (Resolution) Mr. Manskey stated that this is not a request for payment. The grantee received $1,116,150 in advance in 2020 for the expansion of a cooler / freezer project. This report is to show the grantee is monitored and in compliance with the agreement. Motion was made by David Boutin and seconded by Mr. Navarette to approve the resolution. The motion was approved by unanimous vote. ODC Committee and Officer reports: Partnership, Tax Incentive, Advertising, DOI Grants Design Review Board, and Compliance. Mr. Crow stated Partnership has not met but is looking at available dates in the near future. ODC Minutes February 15, 2024 Page 4 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. Upcoming dates for future ODC Board meetings. The next ODC Board meeting has been moved from March 14, 2024 to Wednesday, March 20, 2024 at 2:00 p.m. Motion was made by Mr. Russell and seconded by Mrs. Hollmann to adjourn the meeting. The motion was approved by unanimous vote. The meeting was adjourned at 3:49 p.m. PREPARED BY: APPROVED: Kathi Vaughn Kris Crow Economic Development Specialist President ATTEST: Norma Aguilar-Grimaldo, TRMC, CMC City Secretary