Civic Accountability -- Honesty in Local Government IV

[Mark Kindt]

Source: All Public Documents

Is the City of Lakewood truly contemplating the transfer of a $20,000,000 municipal asset to a private party for the nominal value of $1.00?

[Mark Kindt]

Also note that Council Member David W. Anderson publicly concurred with the $20M figure for the value of the hospital site in his Lakewood Observer article.

"20.0 (in millions) Value of hospital site (land still controlled by the City and will be sold in the future for redevelopment)"

He, at least, opined that it would be "sold", not given away.

[Jim O'Bryan]

Also note that Council Member David W. Anderson publicly concurred with the $20M figure for the value of the hospital site in his Lakewood Observer article.

"20.0 (in millions) Value of hospital site (land still controlled by the City and will be sold in the future for redevelopment)"

He, at least, opined that it would be "sold", not given away.

Well it was $1.00

.

[Mark Kindt]

Until I see a public document that estimates the value of the former hospital site at a different value, I am sticking with the value used with the public in 2016 of $20M.

Here is my update:

[Mark Kindt]

A few more points:

1. Before the City of Lakewood transfers the former hospital site to its recommended developer for a nominal amount ("nothing or $1"), council members and citizens deserve to have a full understanding of the commercial real estate value of the former hospital site.

2. Is the former hospital site really worth $20,000,000 or is that just another "bogus" number anchored in public relations blather from the city administration. We don't know.

3. An independent commercial real estate appraisal of the former hospital site is a fundamental necessity.

4. We deserve to have a clear understanding of the approximate dollar size of any proposed municipal subsidy to the recommended developer whether direct (transfer of land for nominal value) or indirect (benefit of site demolition and remediation).

3. We also deserve to have a clear understanding of any other economic development incentives, e.g., loans, grants, guarantees, tax abatement/deferral, provided to the recommended developer.

[Mark Kindt]

Just for clarity, here is the official source that supports my assertion that between $7M to $10M will be used for the benefit of the selected developer for site demolition and site remediation.

[Mark Kindt]

Stewardship of the Public Trust or Errant Mismanagement

By my count Lakewood has 13 elected public officials across two units of government (City & School District).

We can quickly rate their performance. As we rate their performance, we can see why Lakewood is destined for tax increases.

1. Abandonment of the employee income tax revenue of 1600 Lakewood Hospital employees. (City)

2. Abandonment of the multi-year future lease revenue stream from Lakewood Hospital. (City)

3. Abandonment of $100,000,000 investment and 10 year operational offer from Metro Health System to run Lakewood Hospital that would have maintained employment tax and lease revenues. (City)

4. Permanent closure of Lakewood Hospital eliminating the future revenue sources described in 1, 2 and 3 above. (City).

5. Future transfer of $32,200,000 in municipal contractual reversion rights to a private party that does not exist. (City)

6. Future transfer of the former hospital site to the recommended developer for "nothing or $1". (City)

How are we doing so far? Should I go on? --Yes?

7. Future transfer of between $7,000,000 to $10,000,000 in site demolition, site remediation and site preparation costs to recommended developer of former hospital site. (City)

8. Transfer of office space, goods and services for free or nominal cost to subsidize largest health care provider in the state for school-based clinic services. (School District)

9. As yet unknown, current and future expenditures and costs for planning, construction and operation of a superfluous adult recreation center. (School District)

You be the judge. Stewardship or Mismanagement?

[Stan Austin]

I would like the City to give to me a share in Bitcoin, an upscale domestic CX vehicle, a new leaf blower, and a Double Whopper with cheese.

[Jim O'Bryan]

Stewardship of the Public Trust or Errant Mismanagement

By my count Lakewood has 13 elected public officials across two units of government (City & School District).

We can quickly rate their performance. As we rate their performance, we can see why Lakewood is destined for tax increases.

1. Abandonment of the employee income tax revenue of 1600 Lakewood Hospital employees. (City)

2. Abandonment of the multi-year future lease revenue stream from Lakewood Hospital. (City)

3. Abandonment of $100,000,000 investment and 10 year operational offer from Metro Health System to run Lakewood Hospital that would have maintained employment tax and lease revenues. (City)

4. Permanent closure of Lakewood Hospital eliminating the future revenue sources described in 1, 2 and 3 above. (City).

5. Future transfer of $32,200,000 in municipal contractual reversion rights to a private party that does not exist. (City)

6. Future transfer of the former hospital site to the recommended developer for "nothing or $1". (City)

How are we doing so far? Should I go on? --Yes?

7. Future transfer of between $7,000,000 to $10,000,000 in site demolition, site remediation and site preparation costs to recommended developer of former hospital site. (City)

8. Transfer of office space, goods and services for free or nominal cost to subsidize largest health care provider in the state for school-based clinic services. (School District)

9. As yet unknown, current and future expenditures and costs for planning, construction and operation of a superfluous adult recreation center. (School District)

You be the judge. Stewardship or Mismanagement?

Let's not forget

10) McKinley School acreage after paying for site prep, given away to company ex-Planning Director was at for $1.00 (School District)

11) Board of Education Building on Warren talk is another $1.00 deal (School District)

.

[Stan Austin]

Maybe I'im setting my sights too low. Just give me Lakewood Park. I'll tell you some bullshit story about what I'll do with it but it will still be mine. And, I might want you (the City) to demo that pool and other crap on it at your cost so I can have a clean slate to do anything I want at absolutely no risk to me. We can have a nice signing ceremony at the soon to not be Womens' Pavillion.

[Mark Kindt]

Stewardship of the Public Trust or Errant Mismanagement

By my count Lakewood has 13 elected public officials across two units of government (City & School District).

We can quickly rate their performance. As we rate their performance, we can see why Lakewood is destined for tax increases.

1. Abandonment of the employee income tax revenue of 1600 Lakewood Hospital employees. (City)

2. Abandonment of the multi-year future lease revenue stream from Lakewood Hospital. (City)

3. Abandonment of $100,000,000 investment and 10 year operational offer from Metro Health System to run Lakewood Hospital that would have maintained employment tax and lease revenues. (City)

4. Permanent closure of Lakewood Hospital eliminating the future revenue sources described in 1, 2 and 3 above. (City).

5. Future transfer of $32,200,000 in municipal contractual reversion rights to a private party that does not exist. (City)

6. Future transfer of the former hospital site to the recommended developer for "nothing or $1". (City)

How are we doing so far? Should I go on? --Yes?

7. Future transfer of between $7,000,000 to $10,000,000 in site demolition, site remediation and site preparation costs to recommended developer of former hospital site. (City)

8. Transfer of office space, goods and services for free or nominal cost to subsidize largest health care provider in the state for school-based clinic services. (School District)

9. As yet unknown, current and future expenditures and costs for planning, construction and operation of a superfluous adult recreation center. (School District)

You be the judge. Stewardship or Mismanagement?

Let's not forget

10) McKinley School acreage after paying for site prep, given away to company ex-Planning Director was at for $1.00 (School District)

11) Board of Education Building on Warren talk is another $1.00 deal (School District)

.

This makes absolutely no sense from any public policy basis at all.

[Mark Kindt]

A Game of Smoke and Mirrors I

The City of Lakewood’s budget for 2018 is over $129,000,000.

Likely to commence in 2018 and to continue for several years into the future are massive municipal subsidies to private parties that can be estimated to range between about $40,000,000 to $60,000,000.
We should also be deeply troubled because most of these subsidies will never be reported on the books of the City of Lakewood.

The liquidation of Lakewood Hospital was structured by the city administration in such a way that these future transfers are managed through the distribution mechanisms of the Master Agreement.

Some of the largest transfers have been kept off-book or under-reported.

As a result, they are opaque and difficult to understand and track.

As I have explained previously, there will be a future structured distribution of hospital liquidation proceeds of $32,200,000 to a foundation that has yet to be created and for which no purpose has yet been established.

Additionally, there will be a future structured distribution of $7,000.000 for site preparation of the former hospital site likely to be used for the direct benefit and subsidy of the selected developer.

I have just described more than $39,000,000 in transfers to private parties; all subsidies from funds generated by the liquidation of the City’s contractual reversion rights under prior agreements.

Numerous elected officials have reported that the former hospital site has an asset value of $20,000,000; but that value is under-reported by the City and is proposed as another direct subsidy to the selected developer.

Hence, my conclusion that the range of municipal subsidy transfers to private parties is between $40M and $60M.

[Stan Austin]

Hate to play the Joker role here but Bridget-- do you want Fire Engine 1 ? It's brand new and probably still under warranty. Good for grocery shopping.

[Mark Kindt]

A Game of Smoke and Mirrors II

In this Series, I have previously reviewed material financial misrepresentations made by the city administration related to the hospital transaction as potential violations of the federal securities laws.

I raise it again here, because I am convinced that this was another aspect of the city administration’s intentional attempt to screen these massive municipal transfers and subsidies from public view.

The city administration retained public relations consultants and launched a disinformation campaign to convince voters that we didn’t need our hospital; that we didn’t own our hospital; and that anything we got was better than getting nothing.

Despite that smoke-screen, lawyers attempted to gain evidence and documents, but found those efforts obstructed by “scorched earth” litigation tactics designed to deny the public key information by blocking case discovery, as well as, intentional violations of the public records access laws by the city administration.

Citizens who criticized city administration policy soon found themselves the victims of an organized campaign of harassment or on the wrong side of court subpoenas seeking First Amendment protected materials.

And, generally, maligned as geriatric cases or the "tin-foil-hat" crowd.

[Mark Kindt]

A Game of Smoke and Mirrors III

I will keep this very simple. The City of Lakewood does not have a current real estate appraisal of the value for the former hospital site.

The Master Agreement was approved two years ago. The city administration has been deep in a redevelopment planning process since then and has chosen its recommended developer for the site.

The city administration (the mayor) has publicly stated that the developer is getting the site for "nothing or $1".