Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS September 12, 2024 A regular meeting of the Odessa Development Corporation (ODC) was held on September 12, 2024, at 2:00 p.m. in the Council Chambers, 5th floor, City Hall, 411 W. 8th St. Odessa, Texas. Members present: James Kirk, David Boutin, Melanie Hollmann, Tim Harry, Gene Chavez, and Larry Robinson. Others present: Dan Jones, City Attorney; Christina Buhnerkempe, Legal Assistant; John Beckmeyer, City Manager; Gilbert Vasquez, City Council; Kaylie Banda, Director of Finance; Renee Earls, Odessa Chamber of Commerce; Tom Manskey, Office of Economic Development; Kathi Vaughn, Office of Economic Development; Tracy Jones, Office of Economic Development; Peggy Dean, ODC Compliance and Others: and other interested citizens A quorum being present, Dr. Kirk 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. Consider the minutes of August 8, 2024, meeting and August 1, 20 and 29, 2024, Special Meetings. Mr. Boutin advised of corrections to the August 8th and August 20th. Motion was made by Mr. Boutin with a second by Ms. Hollmann to approve all minutes as amended. The motion was carried by unanimous vote. Mr. Jeff Russell advised that during the August 8th ODC Board meeting the board went into Executive Session and part of what the board discussed were some things regarding the attorney, Jeff Moore, and a letter received from the attorney. Mr. Russell asked the board if they recalled at that meeting, he asked for permission as acting ODC Board President to deliver a copy of that information to the city attorney’s office which we had not done. Mr. Russell stated that he gave a copy to Ms. Vaughn and asked that the document be included in the minutes so the board would have record of the information. Mr. Russell requests that the information received during the Executive Session be included in the August 8th minutes. Mr. Boutin amended the previous motion to approve the August 8, 2024 minutes to include the document received by Mr. Russell with a second by Ms. Hollmann. The motion was carried by unanimous vote. ODC Minutes September 12, 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 Dragon Slayer, a manufacturing company looking for 40,000 to 50,000 SF and has been provided with an application. Mr. Manskey has met with the prospect and toured their existing Odessa facility. The company would be unique to Odessa. This is something that is utilized here but is being manufactured in other places. Mr. Manskey continues to work with Texas Clean Energy, a $200 million capital investment looking for 100-200 acres. Project Molecule is still moving forward. They have talked about filling out an application but have not completed one yet. They are in the midst of getting a 312 agreement and they have been before the County Commissioners Court. This project is ancillary to the 1PointFive project. Mr. Manskey stated that he will provide the agenda to the ODC board for the “Immigration is Big Business for Workforce” event on Thursday, September 19th at Odessa College. The hopes are that the event leads to an immigration resource center locally to work with immigrants who may not be able to work here currently but are already in the area and provide them a pathway to become legal so they can contribute to the workforce. Mr. Manskey stated he will be scheduling meetings within the next few days with board members individually and will provide the report of projects the board has been requesting so he can get their input. Mr. Boutin stated that a formal presentation of the project report should be given at the next ODC Board meeting because it needs to be a public document. Mr. Harry wanted to know where we are on the request to Nacero to refund the $2 million dollars. Mr. Manskey stated that he placed a call to the Nacero representative last week but has not received a response. The attorney did send a letter as previously requested by the board, the letter terminated the agreement and requested the almost $2 million be refunded. The letter was emailed to the board. The certified letter was returned but the letter sent via regular mail was not returned. Mr. Jones requested a copy of the letter from the attorney be sent to Ms. Banda. Dr. Kirk stated Current Media Partners, Mrs. Callicoate and Mrs. Mann are out of town but provided a report in the board packet. Ms. Banda discussed the June and July ODC financials. Total assets for June were $89,187.150. The total fund balance was $4,513,165. The total Reserved balance was $31,308,109. Assigned (TXDOT Projects) $7,000,000. There were no payouts for the month of June. Ms. Banda stated that on the Short-Term Commitments and the Long- Term Commitments she does not want to remove Nacero until she has a letter showing the date of the Termination Agreement. Ms. Banda stated there are a handful of agreements that are in transit mode, so they need to get with the legal department to see which agreements have been signed, processed and push them through. Those agreements would be ICA, Walkamin, Orrex, and UTPB. These agreements total approximately $13.8 million. Actual Revenues collected in the month of June were $1,593,843 and Actual YTD was $13,958,052. Total expenditures for June were $142,122 and YTD was $2,021,461. Ms. Banda reviewed the Investment Portfolio. Total Investment Pools at the beginning of the month, $72,583,893 and end of the month $74,103,602. Total Money Market $9,827,18 and at end of the month $9,870,725.CD and CDARs Investments $4,402,476 and end of month $4,418,994. The Municipal Securities beginning balance $2,989,590 and end of month $2,997,780. The Connecticut State Tax matured on the 1st of July. Mr. Robinson asked if Ms. Banda had looked into the CD maturing September 14th for West Texas National Bank. Ms. Banda stated she has called and received quotes on what CD rates are today. They have a 12-month CD for 4.01%, 6 months to 364 days for 4.31%, and 4.47% for a 36-month CD. She will have ODC Minutes September 12, 2024 Page 3 to go to the bank and put herself on the signature card. Ms. Banda reviewed the July Financials. There is a drop in the Local Government Pools, they moved to TexPool. Total assets for July were $88,327,743. Under Short Term Commitments, the third and final payment was made to UTPB – 3rd Project Training Facility for $700,000. In the month of July, the total revenues for the month were $1,575,834 and YTD $15,533,887. Total Expenditures for the month of July were $1,146,228. Final quarterly installments to contractors were issued. Local Government Investment Pools end of month for July $73,616,526. The Money Market Investments at the end of month were $11,933,049. CD totals for the end of July were $4,435,575. Ms. Banda requested direction from the board regarding the West Texas National Bank CD set to expire on September 14th. Mr. Boutin stated he would like to go with the 364 days at 4.31% and the consensus of the board agreed. ODC Committee and Officer reports: Partnership, Tax Incentive, Advertising, DOI Grants Design Review Board, and Compliance. Mr. Boutin discussed the Tax Incentive Committee stating that Michael Forrest who is the Chairman of the Tax Incentive Committee and he who is the Vice Chairman met with the city legal staff and wanted to determine if the Tax Incentive Committee was still viable. When the city agrees to a tax abatement associated with an enterprise zone then it is required by law. There is nothing in place at this point, there is not anything forecasted with regard to tax abatements associated with an enterprise zone, so the committee concluded that it wasn’t necessary. The guidelines do need to be reviewed every couple of years, and it might be viable for the ODC Compliance Committee to do that work. They would like to come back with a formal action item with a change in the By Laws. The City Council will need to decide if they want the Tax Incentive Committee in place or not. The city legal department will take the recommendation to dissolve the Tax Incentive Committee to the city council. Once the decision is made, they will look at changing the By Laws and bring those changes to the ODC Board for approval. The consensus of the ODC Board was they agree to have the ODC Compliance Committee do the work. Per Mr. Jones the Tax Incentive Committee will be discussed at the September 24th City Council Work Session. It will then come back to the ODC Board. Closed Session the board may recess into Executive Session in compliance with section 551.001 et. Seq. Texas Government Code. Section 551.087. Deliberation regarding Economic Development negotiations Project Logical Location Motion was made by Mr. Harry and seconded by Mr. Boutin to recess into executive session to discuss Project Logical Location. The motion was approved by unanimous vote. Recessed into executive session at 2:40 p.m. Motion was made by Mr. Harry and seconded by Mr. Boutin to reconvene from executive session at 3:35 p.m. The motion was approved by unanimous vote. No action was taken. Citizens comments on non-agenda items. No comments. Upcoming dates for future ODC Board meetings. The next ODC Board meeting has been moved from October 10, 2024 to Thursday, October 3, 2024 at 2:00 p.m. ODC Minutes September 12, 2024 Page 4 Motion was made by Ms. Hollmann and seconded by Mr. Harry to adjourn the meeting. The motion was approved by unanimous vote. The meeting was adjourned at 3:37 p.m. PREPARED BY: APPROVED: Kathi Vaughn James Kirk Economic Development Specialist President ATTEST: Norma Aguilar, TRMC, CMC City Secretary