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Odessa Development Corporation ends work on proposed inland port after contract and due-diligence concerns

January 03, 2025 | Odessa, Ector County, Texas


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Odessa Development Corporation ends work on proposed inland port after contract and due-diligence concerns
The Odessa Development Corporation Board voted unanimously at a special session to terminate any further work on a proposed inland port identified in meeting materials as “Project Logical Location,” citing conflicting information from the project’s potential partner and because the receiver overseeing the property moved on.

Board member David Tennant moved to terminate future work on the project and Melanie Homan seconded; the motion passed on a unanimous voice vote.

The board had convened an executive session under Texas Government Code §551.072 to deliberate real-property matters before returning to open session and announcing the decision. In open session a board member said the receiver had moved on and that conflicting information provided by parties involved had not been resolved, leaving the board unable to proceed.

Public commenters had urged the board to slow the process. For example, resident Ronnie Lewis urged the board to table action so voters could be “sorted out,” saying he had received substantial feedback from Odessa voters and asking the board to delay given the proximity of an election and concerns about a donation connected to the proposed transaction: “What I’d like to see y’all do is table this so we can sort this out,” Lewis said.

Another resident, Chris Crow, told the board he reviewed the memorandum of understanding and the proposed contract included in the meeting packet and raised several specific concerns. Crow said a 30-day feasibility period in the proposed contract was too short and recommended a minimum of 90 days, preferably 180, to allow for appraisals and a full review. He also questioned the purchase price listed in the draft contract: “The purchase price for the property is $8,250,000,” Crow said, noting that earlier discussions had referenced a figure closer to $3,000,000 and that appendix material listed roughly $117,000 in personal property items.

Crow also described a refundable $1,000,000 deposit in the contract with an exception that $25,000 could be retained if the contract were broken. He said those and other contract changes made the board’s packet substantially different from earlier discussions and argued the changes and the short feasibility period warranted more time for review.

On returning from executive session, a board member summarized the situation and proposed ending work on the project because the receiver had moved on and the board continued to receive conflicting information from the potential partner. Another board member who seconded the termination motion said she remained open to pursuing an inland port project with different parties in the future but emphasized the need to work with parties whose information the city could rely on.

The board invoked Texas Government Code §551.072 when it moved into executive session to deliberate real-property matters. The memorandum of understanding (MOU) and a proposed purchase agreement were part of the meeting packet and were discussed in public comment and board deliberations.

No further timeline or next steps for pursuing a similar project were specified in the meeting record. The board moved to adjourn after approving termination of further work on Project Logical Location.

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Scribe from Workplace AI
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