Odessa Development Corporation

ODESSA DEVELOPMENT CORPORATION MINUTES CITY OF ODESSA, TEXAS October 3, 2024 A regular meeting of the Odessa Development Corporation (ODC) was held on October 3, 2024, at 2:47 p.m. in the Council Chambers, 5th floor, City Hall, 411 W. 8th St, Odessa, Texas. Members present: James Kirk, Melanie Hollmann, David Boutin, Larry Robinson, Tim Harry, and Gene Chavez. Others present: Norma Aguilar, City Secretary; Dan Jones, City Attorney; Kaylie Banda, Finance Director; Christina Buhnerkempe, Legal Assistant; Renee Earls, Chamber of Commerce; Tracy Jones, Chamber of Commerce; Kathi Vaugh, Chamber of Commerce; and others. A quorum being present, Dr. Kirk called the meeting to order, and the following proceedings were held: Mr. Robinson gave the invocation. The Pledge of Allegiance and Texas Pledge were recited. Motion was made by Mr. Boutin and seconded by Mr. Harry to suspend the rules. The motion was approved by unanimous vote. Convene into Executive Session: As authorized by the Texas Government Code Sec. 551.072 (Deliberation regarding real property), the ODC Board may adjourn into executive session to: Deliberate the purchase, exchange, lease, or value of real property if deliberation in an open meeting would have a detrimental effect on the position of the governmental body in negotiations with a third person regarding Project Logical Location. B. As authorized by the Texas Government Code Sec. 551.087 (Deliberation regarding economic development negotiations), the ODC Board may adjourn into executive session to: (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1) regarding Project Logical Location. Motion was made by Mr. Boutin and seconded by Ms. Hollmann to go into executive session under 551.072 and 551.087. The motion was approved by unanimous vote. Reconvene in open session. No action was taken in executive session. ODC Minutes October 3, 2024 Page 2 Motion was made by Mr. Harry and seconded by Ms. Hollmann to return from executive session. The motion was approved by unanimous vote. Possible action on Project Logical Location. Motion was made by Mr. Boutin and seconded by Mr. Harry declaring ODCs intent to purchase property associated with Project Logical Location pending consideration approval of the ODC and City Council on the terms discussed in executive session including a fully refundable up to $1 million escrow. The motion was approved by unanimous vote. September 12, 2024 minutes. Motion was made by Mr. Boutin and seconded by Mr. Robinson to approve the amended minutes. The motion was approved by unanimous vote. Contractors’ reports: Economic Development Department, Current Media Partners, Black Chamber of Commerce, UTPB-America’s SBDC, MOTRAN, City Administrative support, financials, Mrs. Jones reported on the projects and activities. A site visit would be scheduled with Project Texwest and representatives would meet with the taxing entities. The data center would provide 200 jobs. Project Texas Clean Energy was working on a site. Project Molecule was finalizing its tax abatement. Mrs. Earls stated that there was good attendance for the Governors Small Business Summitt as it was well represented. Mr. Boutin asked about a pathway for immigrants working. Mrs. Earls stated it was a policy issue and efforts were being discussed to address. She stated it was an issue throughout the country. Mr. Harry encouraged to follow the laws and protect the taxpayer’s money. Ms. Banda reviewed the August financials. She reported investments were $73,733,961 with prepaid expense of $93,602,870. There were $57,542,293 in unreserved. She reviewed the revenues and expenditures and sales tax. The investment had an ending balance of $92,635,770 and the type of investments were reviewed. The estimated liquidity balance was $73,868,677. There was flexibility in investing the funds up to five years, according to policy. Mr. Boutin discussed the options for the best way of investing the funds. Discussion was held on how to invest the funds. Mr. Boutin suggested a subcommittee to provide a recommendation to the board. ODC Committee and officer reports: Odessa Partnership, Tax Incentive, Advertising, DOI Grants Design Review Board, and Compliance. Dr. Kirk reported that the advertising committee meeting went well. There were no other committee meetings. Resolution No. ODC-2024R-19 – Amending the ODC Bylaws. Mr. Jones stated that the Tax Incentive Committee would be dissolved, and the responsibility of reviewing guidelines would be for the Compliance Committee to review. Mrs. Buhnerkempe stated that the Compliance Committee would also review applicants for tax abatements. There was one tax abatement but no information has been provided yet. The bylaws amendment reflected the additional responsibilities of the Compliance Committee. Mrs. Buhnerkempe also stated that there was one additional amendment due to the withdrawal of the City’s participation in Downtown Odessa, Inc. and the process for infrastructure and façade grant applications. Motion was made by Mr. Boutin and seconded by Ms. Hollmann to approve the resolution. The motion was approved by unanimous vote. ODC Minutes October 3, 2024 Page 3 Tabled – Annual compliance monitoring report and incentive payment for Kaige Equipment, LLC. Mrs. Jones reported that the Kaige report was in compliance. Kaige had $1.9 million in wages. Kaige would receive its third incentive payment of $63,600. Mr. Boutin had concerns that the report stated that there were 17 employees not reconciled. He asked that clarification be provided even though the employees exceeded the requirements. Motion was made by Ms. Hollmann and seconded by Mr. Harry to table the Kaige compliance monitoring report and incentive payment. The motion was approved by unanimous vote. Citizen comments on non-agenda items. None. Upcoming dates for future ODC Board meetings. Dr. Kirk stated that the next meeting was November 14 at 2 p.m. Motion was made by Ms. Hollmann and seconded by Mr. Harry to adjourn the meeting. The motion was approved by unanimous vote. The meeting adjourned at 4:28 p.m. ATTEST: APPROVED: Norma Aguilar, TRMC, CMC James Kirk City Secretary President