Interim Odessa City Manager Richard Morton, Councilman Steve Thompson and some finance gurus have figured out how to pay for the new sports complex and the good news is 65% of it will be paid for in cash and residents will not see their property taxes increase.
The complex, which is now expected to cost $130 million, will be paid for with $75 million in funds left over from old certificates of obligation and extra general fund money, $15 million in hotel occupancy taxes and $45 million in certificates of obligation, Thompson said.
During the city council meeting on Tuesday, Morton intends to ask the council to authorize the publication of a notice of intention to issue the certificates of obligation.
According to materials given to the council, the notice will be published once a week for two consecutive weeks starting at least 46 days before the city council will vote on the issuance of the certificates.
“This is a defensive posture because the state legislature has a bill on the floor to limit cities from issuing COs. If that passes, we’re dead meat, because we don’t have a bond rating. So if we get this done before Sept. 1, which is what our intent is, that leaves that option open for us,” Thompson said.
The money obtained from the bank with the COs will be the last money spent on the project, which is expected to take about 18 months, he said.
“When we get to that point, then the bank will issue refinance bonds to the marketplace and pay off that bridge loan, but by then, we’ll have our ratings back,” Thompson said.
The plan came together after a bank involved in several City of Midland projects approached the city and meetings were held with Morton, the city’s bond council, the city’s financial advisor, the bank’s bond people and himself, Thompson said.
Since Morton came aboard last November, Thompson said staff has discovered a great deal of uncommitted funds just sitting in the bank.
Experts recommend cities always have 90 days of operating expenses on hand and the city has six months, Thompson said.
Above and beyond that, Thompson said the city has the money it needs to address the issues at the Derrington Wastewater Treatment plant and to move forward with a downtown revitalization project.
In addition, Thompson said staff believes there will be money left over from the nearly completed rehab of the water treatment plant and it, too, can be put toward the Derrington plant or other water issues.
Despite having money in the bank, Thompson said the city is going to issue certificates of obligation for the sports complex because the funds in the bank have to be used on water and sewer projects by law.
Councilmember Craig Stoker was the first to let the cat out of the bag about the sports complex funding
“In our talks with the money folks it seems we have found a path forward that provides the city with a sports complex, and it does so without a bunch of convoluted agreements amongst out of state corporations that would have ultimately left us holding the bag anyway,” Stoker said.
Stoker said there has been a lot of misinformation swirling on social media about the original funding and the scope of the sports complex, but the public will have opportunities to ask their questions of the council about the funding.
He strongly encourages the public to “hold this council accountable by engaging with us in the conversation.”
“We saw a fantastic conversation happen over the last hot topic and that showed me that the system works. That public discourse has a place and time, but as much as social media has added to folk’s ability to participate, that doesn’t mean they are being heard, officially. That being said, I invite everyone to join us at council and to take the opportunity to have their voice heard,” Stoker said, referring to the recent uproar over proposed changes to mobile home ordinances.
For the past several months, Morton had been looking into other funding sources for the complex, which will be built on the city’s north side.
Morton and several council members wanted to confirm some numbers that were provided to the former city council.
That council had worked out a deal that called for a company called Centurion to sell revenue bonds in either Texas or Georgia and lease the property to Sports Med Properties, which would then lease it to the Amy Bell Sports Foundation. Under the terms of the deal, a company named Synergy was expected to operate the facility.
Thompson said Centurion is no longer involved in the project.
Sports Med, which has already been paid $2.4 million for engineering and designing the complex, will be invited to submit a new bid after the city issues an RFQ to design and build the complex, Thompson said.
Synergy is working with Gainey Sports Ventures from Scottsdale, Arizona to find sponsorships for the complex and the Edge Sports Group may end up managing it, Thompson said.
The complex is going to be 140,000 square feet with 30 pickle ball courts, 20 volleyball courts, 10 hardwood courts, a portable 200-meter banked competition track, fitness centers, conference rooms, offices, a concession area, a cafe and a retailer. In addition, outside there will be 12 fields for soccer, football and lacrosse and up to eight softball and baseball fields. There are also plans for athletic training and physical therapy.
Originally envisioned as a $50 million project, Thompson said the price has steadily increased due to inflation.
In other news, Odessans will soon have quick and easy ways to point out issues they’d like to see resolved.
Monica McDaniel, the city’s communications director, will be giving a presentation during the city council’s work session Tuesday about SeeClickFix and a new chatbot coming to the city’s website.
According to materials provided to the council, residents will soon be able to download an app to their cell phone or computer they can use to report potholes, streetlight outages and other issues and then track the city’s progress on resolving it.
In addition, a Chatbot that can speak 80 languages will be added to the city’s website that can answer residents’ most common questions.
The city council is also expected to discuss the possibility of putting in new curbside parking meters, ones that are automated. A representative of MPS will fill the council in on the technology, which the city hopes will improve parking compliance and reduce illegal parking.
The city’s current meters, most of which are around the Ector County Courthouse, are outdated and take quarters, Stoker said.
“For years, I’ve been an advocate for creating a parking improvement district. It was brought up in the 2022 master plan refresh by Kimley Horn. It would allow us to raise revenue and pay for improvements and repairs to infrastructure. There are companies who will come run the whole thing and split the revenue 50/50 with the city,” Stoker said. “There are also studies that show increases to parking turnover and improved parking in areas. The tendency is for workers and staff to take the best spots and then clients can’t park close so they just don’t go.”
In other matters, the council will:
>>Consider approving a water agreement with the Odessa Country Club that combines three existing agreements. It will be a 20-year agreement that will automatically renew for two subsequent 10-year periods.
>>Consider purchasing security cameras for Municipal Plaza and City Hall for approximately $67,000.
>>Receive year-t0-date revenue figures for the city.
>>Consider approving the business application of Ronald Lynn Wilkerson Sr., who wants to start a one-vehicle taxi service called MGM Transportation.
