Council asks ODC to add contract protections before approving downtown facade and infrastructure grant

The City of Odessa council directed staff to revise a performance agreement between the Odessa Development Corporation (ODC) and the owners of Grupo Tapatio before final approval, saying the contract should include explicit protections for the city. The request followed a staff presentation about a facade and infrastructure grant request tied to a corner property the developer has bought for a restaurant. David, an ODC presenter, told council that the owners plan roughly $780,000 in infrastructure work, of which $360,000 are eligible expenses; about $71,000 is expected in façade work with $45,000 eligible. He said ODC had approved $25,000 for façade and $180,000 for infrastructure. Council members and the city attorney’s office told the council those template agreements currently lack common protections — such as indemnity, insurance requirements, venue clauses, and notice or termination language — and that omission exposes the city to litigation risk. Jeff Moore, who reviews ODC contracts, and other city attorneys noted a 2019 Texas Supreme Court decision removing immunity for economic development corporations, meaning municipalities can be named in suits tied to development agreements. Councilmember Keith asked that the contract be revised to include “protective language for the city,” and the council directed staff to return the updated contract for formal approval at a subsequent meeting. No final vote on the Grupo Tapatio agreement was taken at the meeting; council members said they expect the item to return on the next regular agenda after the revisions are made. The council also clarified how legal review will be processed going forward: the city attorney’s office will be the primary reviewer of ODC legal documents, and Jeff Moore will coordinate with that office on technical questions. The ODC presentation emphasized downtown revitalization and continuation of the corporation’s façade and infrastructure grant program. The council asked staff to prepare a revised agreement consistent with best practices and the 2019 court guidance before the council considers final approval.