Question to Lakewood Voters for Progress

[Jim O'Bryan]

First a little secret. I am not convinced we need a hospital, but I know we cannot afford to lose the economic impact without something to make it up.

Only because everyone has been disingenuous in representing facts I have had a serious question to ask supporters of Lakewood Voters for Progress.

Question for Build Lakewood / Lakewood Voters for Progress

I have seen many, many, many scenarios laid out as to what was, what could be, etc.

It would seem your members are excited about the property and the $19.7 million dollars for Lakewood's next money maker.

Why wouldn't it be better to get $25 million? $50 million? $150 million or $350 million?

These are various payoffs for various forms of redesigning the contract, or litigation. None of it very risky when you consider what we have in our hands now.

$350 million is 3 Fairview Rec Centers, and the money to run them for 3 year.

Through this entire debacle, the city has never really tried for more money. They have never used the leverage of community outrage to get more money.

Just seems odd to me. If I were to dream big with $19.7 million, imagine how big we could all dream with $350 million.

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[Jim Kenny]

Jim: I can respond as someone who supports Build Lakewood, yet please know that I don’t speak for the body as a whole.

I do agree that $350 million is a good deal. In fact, I think that $500k would even be better. I like $1 million even more, though we might need more community outrage and a great deal of time.

Our problem is how long should we have held out and continued absorbing operating losses? Where would the money have come from once the Lakewood Hospital Foundation went bankrupt? The hospital was losing money in last five years of operations faster than a drunk sailor on leave. During this same period these losses required Lakewood Hospital Foundation to eliminate costly and unprofitable or low volume services so that the institution could break even or eke a small profit. In other words, the hospital was near profit, yet losing substantial revenue year over year. Meanwhile, LHA was starving the facility for updates because of no capacity for reinvestment. In the end, the hospital desperately needed $90 million in upgrades just to remain competitive. It's hard to find investors who are willing to put capital into a business with declining revenues.

If you have ever participated in the liquidation of a business, you know it’s foolhardy to think you can get book value for assets during a fire sale. More so, the price for any operation is always discounted for the repairs or reinvestment needed.

For all these reasons and countless more, I am for City Council’s unanimous vote on the ordinance that partners with the Cleveland Clinic to build $34 million ER and health care facility in the heart of Lakewood.

[Stan Austin]

Jim-- you sound like a shrewd bargainer just like Mike Summers--- offer of $4million---Summers I'll take 3.5 and not a penny more

[Brian Essi]

Jim: I can respond as someone who supports Build Lakewood, yet please know that I don’t speak for the body as a whole.

I do agree that $350 million is a good deal. In fact, I think that $500k would even be better. I like $1 million even more, though we might need more community outrage and a great deal of time.

Our problem is how long should we have held out and continued absorbing operating losses? Where would the money have come from once the Lakewood Hospital Foundation went bankrupt? The hospital was losing money in last five years of operations faster than a drunk sailor on leave. During this same period these losses required Lakewood Hospital Foundation to eliminate costly and unprofitable or low volume services so that the institution could break even or eke a small profit. In other words, the hospital was near profit, yet losing substantial revenue year over year. Meanwhile, LHA was starving the facility for updates because of no capacity for reinvestment. In the end, the hospital desperately needed $90 million in upgrades just to remain competitive. It's hard to find investors who are willing to put capital into a business with declining revenues.

If you have ever participated in the liquidation of a business, you know it’s foolhardy to think you can get book value for assets during a fire sale. More so, the price for any operation is always discounted for the repairs or reinvestment needed.

For all these reasons and countless more, I am for City Council’s unanimous vote on the ordinance that partners with the Cleveland Clinic to build $34 million ER and health care facility in the heart of Lakewood.

To steal a line from Steve Davis: What do they mean by that?

Huh?

Hmmm.

These fickle fuddled words confuse me...like will it rain today?

[Bridget Conant]

We need Mike Deneen here to translate.

[Jim Kenny]

Stan: I admit that your comment made me chuckle. I suspect Mayor Summers might agree with your assessment too, which might explain why the City contracted with the law firm Thompson & Hine to manage the negotiations with CCF. The deal the law firm secured was then evaluated by the 16 members of the Lakewood Hospital Association before receiving its approval. Among this body was Ken Haber, former CFO of OM Group, which was a publicly traded company that was involved in a number of major transactions in his tenure. Lastly, the deal was evaluated and renegotiated again after a year of study by City Council before that body gave its unanimous approval.

Needless to say, many smarter heads than the Mayor or me reviewed, negotiated, evaluated and renegotiated CCF's offer before it was drafted in the ordinance that recognizes the one and only offer to replace Lakewood Hospital with a 24/7 ER and Family Wellness Center.

[cameron karslake]

Hey JOB,

Where is this $19.5 million amount coming from? I haven't seen this number thrown around. The cost of the new development on the property?


Hey Jim K,

Lakewood Hospital was a cash cow for the CCF (!), enriching themselves to the tune of $24 million/year (2014) in "administrative" fees. They took a few million more every year for years. The CCF saw their gravy train coming to an end and wanted out. So, our mayor was only too glad to let them do as they pleased.

[Brian Essi]

The hospital was losing money in last five years of operations faster than a drunk sailor on leave.

Neighbor Kenny,

There it is again.

A blatantly false statement from a Host Committee member of the Insider Build Lakewood Rebranded as Lakewood Voters for Progress.

Per the E &Y audited financial statements, the hospital was profitable in the two years (2013 & 2014) right before Summers, Bullock and LHA/LHF?CCF Insiders announced the closing in 2015---They killed it by spreading lies about it to sell the closure of it.

12 of the 50 members of the Host Committee were/are LHA trustees who violated fiduciary duties and voted for the rigged/steered deal.

Proactive lies by a dark organization knowingly made about a charity to shut it down.

Now we see why Neighbor Kenny refused to pledge that Lakewood Voters for Progress would not spread lies to raise dark money to keep the stolen money and property in the hands of the Insiders.

[Jim O'Bryan]

Hey JOB,

Where is this $19.5 million amount coming from? I haven't seen this number thrown around. The cost of the new development on the property?


Hey Jim K,

Lakewood Hospital was a cash cow for the CCF (!), enriching themselves to the tune of $24 million/year (2014) in "administrative" fees. They took a few million more every year for years. The CCF saw their gravy train coming to an end and wanted out. So, our mayor was only too glad to let them do as they pleased.

$19.7 is what I see coming back to the new charity.

But here is one of the problems, the numbers presented float too. Then when you figure the same number 3 different ways it gets nuts.

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[Marguerite Harkness]

The OLD charity (Lkwd Hosp. Fndn.) had about $34 million. This is, according to standard 3rd-grade arithmetic, way more than $19.7 million.

The MAIN old charity (Lakewood Hospital) had over $50 million in investments. PLUS the hospital building, cath lab, equipment, bed licenses, etc.

So they promise us $19.7 million for the new charity - which will NOT be earmarked to benefit Lakewood.

IF THEY HAD MERELY CLOSED THE HOSPITAL WE WOULD HAVE HAD OVER $80 MILLION TO INVEST IN A NEW IMPROVED SCENARIO.

[cmager]

The OLD charity (Lkwd Hosp. Fndn.) had about $34 million. This is, according to standard 3rd-grade arithmetic, way more than $19.7 million.

The MAIN old charity (Lakewood Hospital) had over $50 million in investments. PLUS the hospital building, cath lab, equipment, bed licenses, etc.

So they promise us $19.7 million for the new charity - which will NOT be earmarked to benefit Lakewood.

IF THEY HAD MERELY CLOSED THE HOSPITAL WE WOULD HAVE HAD OVER $80 MILLION TO INVEST IN A NEW IMPROVED SCENARIO.

Lakewood ALREADY OWNED these assets. Conflicted dark money Lakewood insiders propose to gift Lakewood pennies of its own assets. That's quite the trickle down.

[Jim O'Bryan]

[quote="cmager"[IF THEY HAD MERELY CLOSED THE HOSPITAL WE WOULD HAVE HAD OVER $80 MILLION TO INVEST IN A NEW IMPROVED SCENARIO.[/quote]
Lakewood ALREADY OWNED these assets. Conflicted dark money Lakewood insiders propose to gift Lakewood pennies of its own assets. That's quite the trickle down.[/quote]


Jim Kenny

And this is the biggest problem. Doing nothing would have netted us 400% more.

Actually we could have depleted a large portion of LHF funding back into our coffers for even more.

Then there is the little part had the Mayor, Bullock and Madigan and the City joined in the lawsuit against LHA for mismanagement, there was a $500 million policy.

The worst deal possible, is the one that took 5 years to deliver in secret. Underwhelming.

If they really want to BUILD Lakewood as they once claimed, join the lawsuit, let's get you some building money.

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[cmager]

IF THEY HAD MERELY CLOSED THE HOSPITAL WE WOULD HAVE HAD OVER $80 MILLION TO INVEST IN A NEW IMPROVED SCENARIO.

Lakewood ALREADY OWNED these assets. Conflicted dark money Lakewood insiders propose to gift Lakewood pennies of its own assets. That's quite the trickle down..

Jim Kenny
And this is the biggest problem. Doing nothing would have netted us 400% more. Actually we could have depleted a large portion of LHF funding back into our coffers for even more. Then there is the little part had the Mayor, Bullock and Madigan and the City joined in the lawsuit against LHA for mismanagement, there was a $500 million policy. The worst deal possible, is the one that took 5 years to deliver in secret. Underwhelming. If they really want to BUILD Lakewood as they once claimed, join the lawsuit, let's get you some building money.

I'm thinking the $80M is a low figure. Had no clue there was a $500M policy. Criminal.
The other biggest problem is what is their motivation, what is in the heart, and what is in their head. Criminal.

[Jim O'Bryan]

Again, I have never been convinced we need a hospital in the future. I have never been convinced we do not need one either. I probably live closer to Fairview Hospital.

The two things that bothered me was from the start was the back room dealing, and why make a deal that is worse than doing nothing. When I say nothing, hospital closes as it calls in the foundation monies, giving the City over $100 million. Throw in the sale of Colombia Road, more than $100 million?

In real world dealinds, SLH should have allowed the Mayor and team to get an even better deal.

At the same time Build Lakewood, would have empowered CCF and LHA to avoid paying fair price, and to get less. Build Lakewood, now Lakewood Voters for Progress has proven time and time again they are working hard for a fast deal, but a deal that is far worse for every Lakewoodite.

OR

What do they know, no one else knows? It has to be amazing. Think of it, it inspires normal everyday citizens to melt down time and time again defending "dream big" with 1/5th the money we have by just working it, not having to dream at all.

Troubling? $91 million the Rec Center they dreamed of. $19.7 million, not even the foundation. $350 million, projected negative impact in Lakewood. State of the Art Rec Center, rebuilt pools, exercise equipment in every park, and no loss of taxes for over a decade.

I would imagine this is why LHA underwrote Build Lakewood.

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[Kevin D Young]

I see all this and I have to wonder what other city assets are being given away at pennies on the dollar. When you look at all the facts, there is a deep down feeling that our city officials have sold us all down the river. Lakewood is a great city. We deserve a better deal.