Are The New Foundations Just Political Action Committees?

[Bill Call]

Just wondering.

[Stan Austin]

Bill--- it might not technically be a PAC however it could very well be a new part of the Deep State at the municipal level.

[Bill Call]

Bill--- it might not technically be a PAC however it could very well be a new part of the Deep State at the municipal level.

The Three Arches Foundation will be funded by the City of Lakewood’s beneficial interest in the Lakewood Hospital Foundation. That interest was valued at $35.5 million on March 31st 2015. The City recognized the value of that interest by specifically excluding that interest from the Master Agreement.
That beneficial interest was abandoned in a secret negotiation sometime after the execution of the Master agreement.

The new Foundation will be funded by cash and investments that belonged to the City of Lakewood. The total cash and long term investments were $81.7 million on March 31st, 2015.

Mayor Summers was quite clear in his determination to remove future elected officials form any control or influence over the two Foundations. The future membership of the two Foundations will be self –appointed and accountable to no one but themselves.

While the Foundations will make pretense of inclusion and transparency we can be confident that the real work will be done behind closed doors. Even at this early date the Three Arches Foundation refuses to answer any questions and refuses to publicize its grant making proposals.

In the future look for complex mutual contribution transactions across multiple foundations. You scratch my bake I'll scratch yours. G contributes to C and B will contribute to D so that C can contribute to F who by the way is controlled by the spouse of candidate x.

[Stan Austin]

Now here's a question. Bill, you have described a sophisticated interlocking web of entities hidden from public scrutiny. However, given the track record of those kinds of "citizens" in losing a hospital and its concurrent business, how influential and effective can these faux citizens possibly be in the coming years? Within a decade most of them will be dead or debilitated. I would suggest that the new generation who have recently entered our government keep a hawks eye on the assets which are still ours.

[Mark Kindt]

I concur with Mr. Call.

The non-real estate assets of Lakewood Hospital and the Columbia Road real estate asset were liquidated under the Master Agreement primarily to the benefit of third-party entities and not the City of Lakewood.

The amounts of liquidated assets paid to the City of Lakewood were markedly small considering the city's contractual ownership rights.

The real estate assets of Lakewood Hospital are slated to be donated under a new contract to the benefit of a selected developer.

When all the funds are finally disbursed under various past and future agreements, we will be able to describe the transactions as a series of distributions or re-distributions for the benefit of third-parties and not the City itself.

Because the public has no access to the documents of either Lakewood Hospital Association or Lakewood Hospital Foundation, the process of the disengagement of the Foundation from the Association or the Foundation's
continuing relationship with the sole-member of the Lakewood Hospital Association will always remain opaque.

The numbers at play are substantial.

We have been poorly served by our civic leadership.

Kudos to the taxpayers and their legal team for maintaining their litigation against the city administration.