Rec Center/Hospital Debate--Money Laundering Suggested?

[Brian Essi]

On Monday May 25, 2015, I posed a couple of questions:

About three years ago, Mayor Summers asked the Clinic to support a recreation center for Lakewood. In January, 2014, Mayor Summer approached the Lakewood Board of Education about financing a recreation center in Lakewood. In early 2014, Lakewood Hospital Association (LHA) issued a Request for Proposal (RFP) concerning Lakewood Hospital. There was no mention of a Recreation Center in the RFP. In April, 2014, the Clinic responded to the RFP by proposing a “Community Center” to be funded with “residual resources.” Where do you think the Clinic got the idea to propose supporting a "Community Center" with hospital money? Do you think that the structure of the LOI can now best be explained by the separate goals of the Cleveland Clinic and Mayor Summers—the Clinic wants to tear down a hospital and the Mayor wants money to fund recreation center?

On Friday May 29, 2015, Meg Ostrowski wrote:

Brian,

Talk of a recreation center pre-dates Mayor Summers. In late 2009 during Phase III of the Lakewood City Schools master facilities planning process, then Mayor Ed FitzGerald suggested to me that what I “should really be working on” is advocating for moving our Recreation Department away from the schools and under the city’s domain. Then “Lakewood could build a recreation center like the Gemini Center in Fairview Park.” It was implied that my efforts at the time to maintain a centrally located elementary school were being wasted. He went on to say that “most recreation departments are operated under city government.” At the time, I thought this was an odd suggestion and didn’t give it much thought. I was intently focused on the school issue. Then a short time later, long time school board member Linda Beebe proposed that the Grant Elementary property might better serve the community as a recreation center while explaining her 2010 vote to remove it from the master facilities plan. After that vote, it was discovered that Grant Elementary had already been previously removed from the plan by resolution in 2008 under the guidance of The 50 Year Committee, a group of citizens who served during the first two phases of the process. When the board was questioned about that 2008 resolution, it was explained that Grant Elementary was simply named as a place holder until a public process could take place. That process, known as Phase III, was a debacle. Ultimately, Grant was returned to the plan and is currently being rebuilt.

Now that the hospital is under threat and the language in the Letter of Intent implies that “wellness activities” will minimize the need for healthcare services in Lakewood, I find it peculiar that another citizen group, the Active Living Task Force, has been hard at work while talk of a recreation center abounds.

I was opposed to a recreation center in place of a much needed school. I am opposed to a recreation center in place of a much needed hospital. I am not opposed to a recreation center if I can be convinced that we can afford one…and I don’t just mean financially.

My response to Meg:

Thank you for your thoughtful response that sheds much light on an important issue. It now appears that two mayors were seeking land and money for a recreation center. LHA has $50 million is liquid assets and other hard assets (including real estate) that Subsidium valued at about $70 million. The Mayor’s plan (the LOI) would take $26 million of the liquid assets to destroy almost all of the $70M of assets leaving a parcel a land for the City and the Clinic to divide. There is currently much posturing around town among non-profit organizations eying the $24M “residual resources”—I understand Mayor Summers has a hand in wetting their appetites to garner support for his plan. If the “paradigm” of changes in healthcare are viewed as a smoke screen to disguise funding for a recreation center and to tear down a hospital to prevent competition with the Clinic, then the suggestion to me by one notable citizen that this is a “money laundering scheme” may have some merit. Could this be why the Clinic just hired Attorney James Wooley, a brilliant lawyer with Lakewood roots who has great experience in corporate criminal affairs including knowledge and experience with the US Justice Department? Does anyone know who Mayor Summers has hired as his attorney?

[Bill Call]

Money laundering? I once would have said that was a bit of a stretch but not anymore.

We know the Mayor wants a recreation center.

We know the plans for a recreation center have been in the works since the Fitzgerald administration.

We know that the desire was so strong that supporters of the recreation center were willing to destroy Grant Elementary school.

We know that the desire is so strong that they want to destroy Lakewood Hospital.

We know that various non-profits and other groups have been promised a piece of the action if the get on board.

Rather than go to the voters and ask for a tax increase to subsidize the rec center they engaged in a nefarious plan to destroy the Hospital and loot it of its wealth.

The really, really odd thing is that the City could have a recreation center and hospital.

At this point the destruction of their Hospital has become an obsession. I wouldn't be surprised to find the LHA and Mayor are working to do as much damage to the Hospital as possible to make it impossible to save.

Time is running out.

[Brian Essi]

In my opinion, the damages to the hospital are all self-inflicted. You can take your pick as to whether it is intentional, reckless disregard or simple negligence. It is a fact that the Clinic, LHA and the Mayor are all legally responsible The question remains, will they be held accountable?

[Brian Essi]

Oh My!

Have we all have learned a LOT since May?

[Bill Call]

Too many people out there are afraid to accept the possibility that the reason the Clinic and LHA and the Mayor are fighting so hard to close the Hospital and end the discovery process is because they have a lot to hide.

Are they hiding incompetence or illegal acts?

Look back to 2008.

[Brian Essi]

Bill

They are hiding both incompetence and illegal acts.