IS IT TRUE Springleaf Financial Services announced that it is moving its headquarters from Evansville to Connecticut during the third quarter of this year?….it is not clear how the move will affect the employees who work at the downtown campus?….a spokesperson for Springleaf stated that there would continue to be a “significant presence” in Evansville?….the change stems from Springleaf Financial Services’ purchase of One Main Financial, which is a similar business to that of Springleaf but on a larger scale?….One Main Financial is owned by Citi, who will sell the business for $4.25 billion dollars, and has more than 1,000 branches in 43 states with 5,600 employees?….the Springleaf brand will be phased out in 2016 while 200 of its branches will be consolidated that same year?
IS IT TRUE the Evansville City Council voted unanimously for Resolution C-2006-15 at its August 28, 2006 meeting to declare the downtown campus of what was then called American General Finance an Economic Revitalization Area for Property Tax Phase-In for Redevelopment/Rehabilitation of Real Property and for the Acquisition and Installation of New Information Technology?….on September 11, 2006, the Evansville City Council voted unanimously for Resolution C-2006-17 which approved bonding for the project at $3.8 million dollars?….the City Council unanimously approved the 10 year property tax phase-in through Resolution C-2006-20 on September 18, 2006?….the project was presented to City Council at its August 7, 2006 meeting by DMD Director Greg LaMar and Larry Gigerich of Genovis, who was hired by American General Finance to assist with site selection of its new headquarters, and the legislative body unanimously approved Resolution C-2006-14 A Resolution of the City Council in Support of a Project Agreement with American General Finance, Inc.?….the minutes of these meetings are available for review on the City of Evansville’s website?….the package to entice American General Finance to build a new headquarters in Evansville consisted of $3 million of incentives through the State of Indiana, $3.8 million dollars through the City of Evansville and a 10 year property tax phase-in on the new 135,000 square foot structure?
IS IT TRUE at the August 7, 2006 City Council meeting, Mr. Gigerich stated that the company had 1500 branches, 10,000 employees, of which 1,500 were in Evansville, $26 billion dollars in assets, and annual revenue of $3 billion dollars?…Mr. Gigerich stated that approval of the project agreement would “allow the company to make a commitment to stay and grow in downtown Evansville,†and that the incentive package “provides the company with the capability to accommodate future expansion in downtown Evansvilleâ€?….he went on to say that the agreement would retain 960 employees at the downtown campus, add 150 new jobs, and that the payroll for the downtown location would grow to $46 million dollars a year?….the new headquarters itself was to cost $20 million dollars plus $15 million dollars in new personal property purchased over 5 years?….the construction project began in 2007 and was completed in 2009?….the property tax abatements are set to end after 2019 and are most likely on a graduated schedule with the company currently enjoying a 40% abatement?….it is unclear at this time but doubtful that the City has claw back provisions in its project agreement?
IS IT TRUE American General Finance, now Springleaf Financial Services, started to disintegrate before its new headquarters were finished?….the company’s practices in its subprime mortgage lending business created the company’s need for billions of dollars in federal bailout funds in 2008 and 2009?….there was a loss of $1.3 billion dollars for fiscal year 2008 with 179 branches closed and 380 jobs cut before the end of that year?….one of the branches closed in 2008 was here in Evansville?….by the end of 2008, American General Finance had declined to 1,200 branches and only 8,000 employees?….the situation got worse in 2009-2012 with the company put up for sale in 2009?….the company was purchased in 2010 but the financial losses did not stop until well into 2013 and only after its mortgage portfolio was sold, hundreds of branches closed and thousands of employees laid off?….the current number of employees for Evansville is 1,155, and the company is down to 830 branches?….it’s probably inevitable that significant job loss will occur in Evansville through this transition, and the writing has been on the wall for a move to Connecticut for some time, as the top executives for Springleaf already live and run the company from Connecticut?….we will say prayers for the employees of Springleaf who nervously await news of their fate?….it is quite cold of Springleaf management to make such an announcement without specifics and create the kind of stress that these employees are no doubt experiencing today?….on the brighter side, potentially there’s a new use for the relatively new 135,000 square feet structure with a parking garage in downtown Evansville?….it may be available by the fall of 2017?
IS IT TRUE we will talk about the motel announcement from yesterday and run the numbers for the downtown TIF tomorrow?…..we thank you for your support and look forward to bringing you the news in a way that not only brings you into the discussion but makes you feel compelled to participate?
