ODESSA, Texas — In a statement sent to NewsWest 9 on Thursday, Former Odessa Development Corporation President Kris Crow and Former Vice President and Acting Chair Jeff Russell spoke out following their recent removal from the ODC. The decision to remove them was made by Odessa City Council.
According to the Crow and Russell's statement, the decision was a deliberate effort by Odessa City Manager John Beckmeyer, Odessa Mayor Javier Joven and city council "to clear obstacles to the illegal reallocation of $90 million in ODC-controlled taxpayer funds toward development projects in Midland County."
“We believed our efforts to find legal ways to allocate the surplus from the $90 million ODC account for critical infrastructure repairs would be welcomed. Clearly, we were wrong,” Russell said in the statement.
The ODC recently de-allocated $18 million from the "failed" Nacero project, planning to redirect those funds toward addressing Odessa’s aging water infrastructure, according to the statement.
The statement also touched on the recent water outages by three major line breaks and their impact on the local economy.
“We had received thorough legal advice from the ODC attorney indicating that a portion of the needed repairs could be legally funded by the ODC if tied to business needs. Yet, when the item was brought up in June’s ODC meeting, City Manager Beckmeyer quickly intervened, citing incorrect legal advice to block the discussion,” Crow said in the statement.
Crow and Russell said in the statement that, "the motive behind Beckmeyer’s intervention has now become clear: the Council’s intention is to funnel the bulk of ODC reserves into new development projects in Midland County. These projects would be in addition to over $10 million in grants already approved supporting the ICA project, which will feature a Bass Pro Shop, and the Parks Bell project, aimed at constructing a new industrial park."
According to the statement, city council is reportedly considering issuing revenue bonds backed by the future ODC sales tax receipts. That statement claims that such a move would commit future tax income and could potentially drain the ability for the ODC to fund local business growth and attract new employers.
NewsWest 9 reached out to the City of Odessa for comment on Crow and Russell's statement.
Below is Odessa Mayor Javier Joven's response:
"In their statement, the Odessa City Council and staff are being attacked for rejecting the proposal from Kris Crow and Jeff Russell, the former president and vice president of the Odessa Development Corporation. This proposal can only be seen as, at best, an attempt to circumvent the current laws regulating the operation of an economic development corporation and, at worst, nothing less than a scheme that would defraud the taxpayers of the City of Odessa by allocating collected sales tax revenue to a project that doesn’t qualify for support, and away from projects that are required or suitable for infrastructure necessary to promote or develop new or expanded business enterprises as is outlined in the Local Government Code.
Inherent even in the name, 'Development Corporation' and consistent with the stated purpose of the governing legislation is the development and expansion of new business. This is what the citizens of Odessa voted for when the ODC was created. It is our aim to stay true to the mission, as fiduciaries of the collected funds, for which the ODC was created.
It is alleged that the Council removed the former president and vice president of the corporation to '…clear obstacles to the illegal reallocation of $90 million in ODC-controlled taxpayer funds toward development projects in Midland County.' In reality, the two were removed from the board for overstepping their bounds and treating the ODC as their personal political and economic organization. On numerous occasions they met individually with potential recipients of ODC funding, placing onerous restrictions upon them to receive funding, without the knowledge of the other ODC board members. Meetings and direction were given to the City’s council, retained by the City to advise the board, without the knowledge of other ODC board members or the City Council. City staff have been subjected to road blocks as they work to bring in new business and plan the development of the City. An atmosphere of 'How can we impede development' has been fostered over one of 'How do we make it easier for businesses to come to Odessa.'
In the statement much is made of future projects being located in Midland County. This is an effort to deflect residents attention from the importance of these projects. We should remember that Bass Pro Shops will be in Midland County – ODC built infrastructure near this project. The Cinergy complex is in Midland County. Many of our new neighborhoods are in the City of Odessa but in Midland County. The undeniable fact is that the City of Odessa is quickly growing into Midland County and this should never be an Ector vs. Midland County discussion but rather a 'How do we grow the City of Odessa.'
We are saddened that Mr. Crow and Mr. Russell have resorted to misrepresentation of facts and defamatory accusations. Those appointed to board positions serve at the pleasure of the City Council and at times there are reasons for removals. As reflected in the votes of the Council this was one of those times.
-Mayor Javier Joven, City of Odessa."
Following Mayor Joven's statement, Odessa Councilmember Chris Hanie responded. Hanie disagreed with the mayor's response and says "his response only represents him," not all of city council.