One Lakewood Place

[Pam Wetula]

Thank you PJ, I was unable to attend.

[/How CONVENIENT that the appraisal comes in at "As Though Vacant Land" $5.200,000 and the "As Is Value is $1.00 - ONE DOLLAR !!! b]

How talented our City officials are to have negotiated a contract with Carnegie using the EXACT SAME value as this appraiser has determined the worth to be - after the fact. How SPOT ON Summers, Sylvestor, Bullock, Butler etc...

Why, we DIDN'T NEED an appraiser to come in at all!!! Summers and his friends are SO TALENTED, they figured the value out ALL BY THEMSELVES. ONE WHOLE DOLLAR as is. How much did Lakewood spend on that appraisal?

I guess Carnegie isn't getting a great deal after all because they are paying fair market value - ONE DOLLAR.

NO VALUE given if you repurpose the building. NO thought that the building could be repurposed. Of course the City will have to spent more money than the "As Though Vacant Land" value to tear the building down for their Carnegie/Fitzgerald friends.

Just GENIUSES at work in Lakewood!!!

[m buckley]

A Committee Of the Whole meeting was held tonight, followed by a City Council meeting.

Hmmm, what to say? Well, Ward 3 John Litten made some noise about the Emergency Room. It was pure rhetoric. He just wanted to go public with the fact that he cares that as one Emergency Room closes, that another will open. (Note: there will be no ER for 24 hours, during this transition.)

Council was given the appraisal approx. 3 hrs. prior to the COW meeting. Attached is a letter from Charles Ritley Associates.

The Term Sheet was just updated, and you can read it by clicking on this link.

http://www.onelakewood.com/wp-content/u ... 072018.pdf

Tracey Nichols just had to mention, that "it's a great opportunity that this property became available. That it's a great site."

Really, Tracey? Well..... she's not singular in that comment. What none of them have ever mentioned is the fact that a hospital was deliberately and methodically killed, in order to provide this prime site for development.

(Yes, I continue to be bitter.)

At the time that I left, Council-At-Large Tristan Rader had already stated that he will vote against. And, while she didn't say, I'm certain that Council-At-Large Meghan George will also vote against.

As for the rest of council, well.... I find those boys to be unworthy of their position.

pj bennett,
What a great post, in a series of great posts. And I agree, those boys are unworthy of their position.
But on this vote, is it possible that we're selling Dan O'Malley short?
I've been told he's a hail-fellow-well-met. That he's working behind the scenes.That the pivot is coming.
That he's not a pretender. That he's not a fraud.
Not sure, just putting it out there.

[T Peppard]

A Committee Of the Whole meeting was held tonight, followed by a City Council meeting.

Hmmm, what to say? Well, Ward 3 John Litten made some noise about the Emergency Room. It was pure rhetoric. He just wanted to go public with the fact that he cares that as one Emergency Room closes, that another will open. (Note: there will be no ER for 24 hours, during this transition.)

Council was given the appraisal approx. 3 hrs. prior to the COW meeting. Attached is a letter from Charles Ritley Associates.

The Term Sheet was just updated, and you can read it by clicking on this link.

http://www.onelakewood.com/wp-content/u ... 072018.pdf

Tracey Nichols just had to mention, that "it's a great opportunity that this property became available. That it's a great site."

Really, Tracey? Well..... she's not singular in that comment. What none of them have ever mentioned is the fact that a hospital was deliberately and methodically killed, in order to provide this prime site for development.

(Yes, I continue to be bitter.)

At the time that I left, Council-At-Large Tristan Rader had already stated that he will vote against. And, while she didn't say, I'm certain that Council-At-Large Meghan George will also vote against.

As for the rest of council, well.... I find those boys to be unworthy of their position.

pj bennett,
What a great post, in a series of great posts. And I agree, those boys are unworthy of their position.
But on this vote, is it possible that we're selling Dan O'Malley short?
I've been told he's a hail-fellow-well-met. That he's working behind the scenes.That the pivot is coming.
That he's not a pretender. That he's not a fraud.
Not sure, just putting it out there.

Yes, always a great post from PJ.

Councilman O’Malley and Councilman Litten were of great disappointment to me this evening. They voted in favor of the ordinance. They failed to listen to the wise advice and research given by former Council President Ed Graham, the former safety director Tom Monahan and the CPA Marguerite Harkness. It was truly disheartening to watch.

The politic maneuvering continues.

[Bill Call]

I suspect that the City will seek a bespoke appraisal. The appraisal of the City owned building, land and business at Columbia Road was appraised at far less than assessed value because the City insisted it be appraised with a non-profit valuation.

Will the City privately insist on a valuation far lower than the actual value?

The Cuyahoga County website has a lot of information about valuations and recent transfers:

http://myplace.cuyahogacounty.us/

[Mark Kindt]

A Committee Of the Whole meeting was held tonight, followed by a City Council meeting.

Hmmm, what to say? Well, Ward 3 John Litten made some noise about the Emergency Room. It was pure rhetoric. He just wanted to go public with the fact that he cares that as one Emergency Room closes, that another will open. (Note: there will be no ER for 24 hours, during this transition.)

Council was given the appraisal approx. 3 hrs. prior to the COW meeting. Attached is a letter from Charles Ritley Associates.

The Term Sheet was just updated, and you can read it by clicking on this link.

http://www.onelakewood.com/wp-content/u ... 072018.pdf

Tracey Nichols just had to mention, that "it's a great opportunity that this property became available. That it's a great site."

Really, Tracey? Well..... she's not singular in that comment. What none of them have ever mentioned is the fact that a hospital was deliberately and methodically killed, in order to provide this prime site for development.

(Yes, I continue to be bitter.)

At the time that I left, Council-At-Large Tristan Rader had already stated that he will vote against. And, while she didn't say, I'm certain that Council-At-Large Meghan George will also vote against.

As for the rest of council, well.... I find those boys to be unworthy of their position.

pj bennett,
What a great post, in a series of great posts. And I agree, those boys are unworthy of their position.
But on this vote, is it possible that we're selling Dan O'Malley short?
I've been told he's a hail-fellow-well-met. That he's working behind the scenes.That the pivot is coming.
That he's not a pretender. That he's not a fraud.
Not sure, just putting it out there.

Yes, always a great post from PJ.

Councilman O’Malley and Councilman Litten were of great disappointment to me this evening. They voted in favor of the ordinance. They failed to listen to the wise advice and research given by former Council President Ed Graham, the former safety director Tom Monahan and the CPA Marguerite Harkness. It was truly disheartening to watch.

The politic maneuvering continues.

It is my understanding that Council-member Litten was a trustee of the Lakewood Hospital Association when the Master Agreement with LHA was signed.

It seems clear to me that to the extent that the Ordinance effectuates any aspect of the Master Agreement, that Council-member Litten may have a duty to recuse himself from voting on the measure under the ethics provisions of the Third Amended Charter.

Third Amended Charter, Section 8.1(c)(3) provides (in part) as follows:

"No city official or employee, through any improper use of that person's official position with the city, may affect the [...] letting of any contract or any other action by the city that may result in that official or employee, or any of that official or employee's [...] close business associates, securing anything of value."

In this instance, the close business associates would be the Lakewood Hospital Association and its sole-member, the Cleveland Clinic Foundation. As a trustee of Lakewood Hospital Association, Mr. Litton had a duty of loyalty to LHA, a duty of care to LHA, and a duty to participate in corporate compliance related to LHA. (see document, LKWD-PRR158-001767)

I am NOT suggesting that Council-member Litten secured anything of value for himself. I am suggesting that there may have been an ethical duty that needed examination prior to his vote on the Ordinance.

Let's keep in mind that the Master Agreement benefited both LHA and the Cleveland Clinic Foundation and that the respective parties' rights and duties under that contract (including those related to the City of Lakewood) are on-going into the future. It is a living contract that is current and operative well into the future.

[pj bennett]

m buckley wrote

I've been told he's a hail-fellow-well-met. That he's working behind the scenes.That the pivot is coming.
That he's not a pretender. That he's not a fraud.
Not sure, just putting it out there.

Thank you, m buckley….. Neither do I, think that Dan O’Malley is a pretender. Nor, do I think that he is a fraud.
I also do not believe that he is part of the city hall frat club.

Dan O’Malley is a nice guy. He’s likable, and he wants to be liked. I like him. I’ve never heard anyone say anything derogatory about him.
It was about 8 months after he began serving on city council, that I caught a glimpse of what I will call ‘the real Dan’, and I had an uh-oh moment.

Spending his career in the labor movement’, makes union labor dear to his heart. Rightfully so.
One Lakewood Place will provide employment to approx. 600 tradesmen.

O’Malley has his own agenda, and I see One Lakewood Place as a bullet point on his Curriculum Vitae.
Who knows? Maybe Capitol Hill will be his calling.

I used the word ‘unworthy’ for 5 members of council due to their not digging their heels into the details of this development - with an OPEN MIND.

It’s been so obvious, that their minds were made up, prior to any public meetings.

It is so very obvious, that this is a really bad deal and a very bad idea.

[m buckley]

O’Malley has his own agenda, and I see One Lakewood Place as a bullet point on his Curriculum Vitae.
Who knows? Maybe Capitol Hill will be his calling.

I used the word ‘unworthy’ for 5 members of council due to their not digging their heels into the details of this development - with an OPEN MIND.

It’s been so obvious, that their minds were made up, prior to any public meetings.

It is so very obvious, that this is a really bad deal and a very bad idea.

pj bennett,

I agree that it's a really bad deal and a very bad idea.

I don't agree that we should be measuring Dan O'Malley by a different standard than other 'unworthy' members of council who voted in favor of the ordinance.

[Mark Kindt]

As a former public official, I fought consumer fraud; I fought violations of the antitrust laws; I fought insurance industry abuses against both citizens and business; I testified before Congress; I authored position papers on health care.

I offer these comments:

He builds upon sand who burnishes his resume with the demolition of a public hospital.

The members of city council who support the demolition of Lakewood Hospital will eventually learn that their careers in local politics were exceptionally short.

[Bill Call]

I have attached a copy of the appraisal supplied by Mark Kindt in his post containing the on line documents.

Ritley Lakewood Hospital Appraisal Letter 05072018.pdf

(73.03 KiB) Downloaded 246 times

The $5.2 million appraisal is about $920,000 per acre.

Since the vacant lot on Edwards and Detroit has been in the news lately I thought I would check the value of that property.

PP #'s 311-27-030
PP #'s 311-27-031
PP #'s 311-27-032
PP #'s 311-27-033

This property was purchased on 6/1/11 for $650,00. The total acreage is about .55 acres. That's a purchase price of about $1,181,000 thousand per acre. If the site of the Hospital was as valuable as the Edwards site then the value of the Hospital site is about $6,672,000, assuming that the value of real estate in Lakewood has not increased during the last 7 years.

I don't know if the owners of the Edwards site bought the building and then paid to tear it down. If they bought the building and then paid to tear it down their real purchase price would have been higher than the $650,000. My guestimate would be that each $100,000 in demolition and site preparation costs would increase the per acre price by $200,000 or so.

Is the empty lot at Edwards and Detroit worth more than the Hospital site?
Has their been any inflation in the price of real estate during the last 7 years?

This isn't my field. Feel free to play with the numbers.

http://myplace.cuyahogacounty.us/

[Mark Kindt]

Mr. Call's analysis serves to highlight the fact that council-members were not given any reasonable time to do their own independent assessment of this incomplete appraisal document provided to them on the same day as the vote on the ordinance.

Keep in mind that the appraisal was completed on April 10, 2018 and was then sand-bagged to council a month later, the day of the vote.

The document itself describes the fact that it is incomplete and that further description information will be supplemented at a future date. On its face, it is an incomplete appraisal.

There is one key underlying assumption and that is that the property is vacant. Let's keep in mind that their is a hospital building in good condition siting on that property.

[Mark Kindt]

As we can plainly see from this document, the city administration did not seek a fair market value appraisal of the hospital that it owns.

It sought an estimate based upon the assumption that the hospital would be demolished and the land cleared for redevelopment.

Once again, the public is hoodwinked with bogus financial numbers.

It is now unlikely that we will ever see an independent fair market appraisal of Lakewood Hospital.

I also want to note the continuing misuse of the words "invest" and "investment" in this context. The City of Lakewood is not "investing" anything with the selected developer. The City of Lakewood will have no ownership rights in the as-built development.

The City of Lakewood is providing public subsides to the selected developer:

1. The benefit and value of a site that has been cleared and prepared for redevelopment ($7,000,000);

2. The site itself ($5,200,000, but likely in excess of this amount);

3. Additional future incentives of an unknown value to future tenants of the as-built development;

The City of Lakewood is also destroying the asset value of of the hospital building itself.

So, since this thread was started, we've seen both bogus appraisal figures and totally bogus figures on future tax revenues.

[Stan Austin]

a new phrase-- "subraactive economics" ? Hugo Chavez in Venezuela is an expert at that.