mortgage home loan company

Document Sample
mortgage home loan company Powered By Docstoc

                                   October 6, 2005

Mayor Carl R. Gerlach called the Overland Park City Council meeting to order at
7:30 p.m. The following members were present, constituting a quorum:

      Mr. George Kandt, Council President; Mr. Terry Goodman; Ms. Marcia A.
      Gilliland; Mrs. Terry Happer Scheier; Mr. Fred Spears; Mr. Dave Janson;
      Mr. John H. Thompson; Mr. Curt Skoog; Mrs. Donna Owens; and Mr. Dan
      Stock. Mr. David White and Mr. Jim Hix were absent. (excused)

       Also present were: Mr. John M. Nachbar, City Manager; Mr. Bob Watson, City
       Attorney; Mrs. Kristy Stallings, Director of Finance, Budget and Administration;
       Mrs. Penny Postoak Ferguson, Deputy City Manager; Mr. Sean Reilly, Com-
       munications Manager; Mr. Mike Santos, Senior Assistant City Attorney;
       Mr. Adam Lee, Sun Publication; Mr. Brad Cooper, Kansas City Star; and
       Ms. Nancee Ellis, Recording Secretary. Approximately 15 people were in the


Mayor Carl R. Gerlach led the audience in the Pledge of Allegiance.

Mayor Gerlach recognized a member of Boy Scout Troop No. 122 from Grace Covenant
Presbyterian Church who was in the audience.


      AMOUNT NOT TO EXCEED $61,000,000 – For the benefit of K City, L.L.C.,
      Capital One Home Loans, L.L.C., and Capital One Services, Inc., and to
      consider the granting of tax exemption incentives for acquisition, construction
      and equipping a corporate headquarters for Capital One Home Loans.

      RESOLUTION NO. 3488 – Declaring the intent of the City to issue Federally
      Taxable Private Activity Revenue Bonds in the aggregate principal amount not
      to exceed $61,000,000 for the purpose of financing the acquisition, construc-
      tion and equipping of a corporate headquarters for Capital One Home Loans,
      L.L.C, and Capital One Services, Inc., and to grant property tax exemption.

Director of Finance, Budget and Administration Kristy Stallings advised that on
September 21, 2005, the Finance, Administration and Economic Development (FAED)
Committee reviewed this application request. The Committee considered the cost
benefit analysis that has been prepared in conjunction with this project in accordance
with the state statute.

Mrs. Stallings said the Committee recommended that this public hearing be scheduled
for City Council consideration of the request for issuance of economic development
revenue bonds and tax abatement. After the public hearing, if the Council finds it
appropriate to grant the economic development revenue bonds and tax abatement, it
Overland Park City Council Meeting                                      October 6, 2005
Page 2

would be in order to adopt Resolution No. 3488, a resolution of intent regarding this

Mrs. Stallings advised that Janet Garms, Kutak Rock LLP, the City’s bond counsel, is
present to respond to questions. Also present to provide additional information were
Tracey Osborne, president of the Overland Park Chamber of Commerce, and repre-
sentatives from Capital One.

Mayor Gerlach opened the public hearing.

Ms. Tracey Osborne, Overland Park Chamber of Commerce (Chamber), said she
resides at 10024 Ballentine Drive. She said this application comes to the City Council
with the unanimous support of the FAED Committee from their meeting on
September 21, 2005. There was also unanimous support from the Overland Park
Economic Development Council’s Executive Committee. Ms. Osborne stated that this
process involved a team effort of representatives from both the Chamber and Capital

Ms. Osborne said this has been a fairly short project that began in early June when
the Chamber was presented with a local company who had been purchased by a
national company, which was Capital One. She said Capital One was in a rapid
growth mode and was looking for a new home. Ms. Osborne advised that Overland
Park was in competition with Kansas City, Missouri, and neighbors in Johnson
County; however, Capital One has chosen Overland Park as their new home. She said
approval of Resolution No. 3488 will be an opportunity to allow a local company to
grow and expand in a very favorable way.

Ms. Osborne advised that the Chamber supports these incentives for four reasons:
(1) Growth projection is significant. Capital One currently has 150 employees and
projects to grow to 900 employees; (2) Salaries are significant in the six-figure range,
and the Chamber’s goal is to provide high-quality jobs for Overland Park residents and
produce income to make the economy prosperous; (3) The capital investment is
significant in the $40 million range; and (4) One of the goals of the Economic
Development Council at the Chamber is to make sure that Overland Park is known for
companies’ headquarters, and Capital One’s Homes Loans is a division headquarters
for Capital One.

Ms. Osborne said the Chamber has been very supportive of the Governing Body’s role
in being very fiscally conservative; therefore, the Chamber does not take it lightly when
asking the City for economic incentives. She said the Governing Body has been
provided the cost benefit analysis which shows that it is extremely favorable.
Regarding the cost benefit analysis, the state of Kansas recommends that any
governing body consider at least a 1.3:1 return when considering incentives.
Ms. Osborne stated that Overland Park’s return is 5.98:1 which is significant and
worthy of the Council’s consideration.

While it is the Chamber’s role in economic development is to seek exciting new jobs,
Ms. Osborne said it is just as critical to look within the community to find those
companies that are growing and support them. She stressed that this is a fantastic
opportunity for the Governing Body to look within at a rapidly growing company.
Overland Park City Council Meeting                                     October 6, 2005
Page 3

What Ms. Osborne found unique about this company is its local story. Mr. Lance
Melber, President of Capital One Home Loans, grew up here, is a product of the local
school system, had a dream and turned it into a business. The business captured the
attention and investment of a national company, which brought them to Overland
Park and will result in hundreds of jobs for Overland Park’s citizens.

Mr. Lance Melber, President, Capital One Home Loans, said he grew up in Overland
Park. In 2001, he started a business with eight employees and 9,000 square feet of
office space, with a dream to make it the best home loan business in the United

Mr. Melber said it was very exciting to think that eight people in a small office in
Corporate Woods could create a dream to be an on-line lender with the goal of being a
nationwide lender and partnering with Horizon National bank in Leawood. He said the
company grew in four years to where it generated over a billion dollars in loans.

Mr. Melber said he had the best mortgage/home loan company in the nation. He said
the company is efficient, focuses on customer service and is able to do things no other
mortgage lender can do. He said great people have joined the team and have moved
here from other states.

Last year, Mr. Melber said after his company outgrew the Horizon National Bank, he
knew it was time to look at creating a larger organization. He hired an investment
banker out of Charlotte, North Carolina, which resulted in merging with Capital One.
Capital One has 47 million customers and over $85 billion in assets.

Mr. Melber said an 180,000 square foot facility, proposed to house 900 employees, is
projected to be built in the Deer Creek Commons area with the help of Opus
Northwest, one of five regional companies within the Opus Group, a Minneapolis-
based development firm.

Mr. Melber asked for the Council’s support with making this project a reality and
offered to answer any questions.

With no one else wanting to comment, the public hearing was closed.

Council President George Kandt stated that this is an exciting opportunity for
Overland Park. He said the City was grateful because the project would bring huge
economic benefits to Overland Park. Mr. Kandt also pointed out that these kinds of
economic development opportunities do not present themselves very often. Mr. Kandt
then moved for the approval of Resolution No. 3488, declaring the intent of the City to
issue Federally Taxable Private Activity Revenue Bonds in the aggregate principal
amount not to exceed $61,000,000 for the purpose of financing the acquisition,
construction and equipping of a corporate headquarters for Capital One Home Loans,
L.L.C., and Capital One Services, Inc., and to grant property tax exemption.
Ms. Marcia A. Gilliland seconded the motion.

Mayor Gerlach stated that the quality of this company is outstanding in not only the
way they treat their customers but also their employees. He stressed that Overland
Park was very fortunate that such a quality company chose to locate its headquarters
here and that will provide such a great economic return to the City.
Overland Park City Council Meeting                                  October 6, 2005
Page 4

The motion passed by a 10 to 0 roll-call vote.




      Kansas Association of Beverage Retailers for an event to be held Monday,
      October 17, 2005, from noon until 5 p.m., 8787 Reeder. James L. Scott,

Mr. Kandt moved for the approval of the preceding consent agenda item. After a
second by Ms. Gilliland, the motion carried by a 10 to 0 roll-call vote.


At 7:50 p.m., Mr. Dan Stock moved to adjourn the meeting. Mr. Fred Spears seconded
the motion, which passed by a 10 to 0 vote.

                                                    Carl R. Gerlach, Mayor


Marian Cook, City Clerk

Shared By: