Jenn, who pays the city for parking in garage?

[Marguerite Harkness]

I have a couple city finance questions for Jenn Pae, now that she's back:

1. Jenn, who pays the city for the free parking the hospital employees get in the south garage? How much annual income is that? How much other (non-employee) parking income do we get annually from the south garage? How much is the usual annual expense for that garage?

2. I remember that the North Garage used to be city owned (I know, because the City took our house so they could build the garage for the developer who was supposed to build his own garage). Then the city (Cain?) turned it over to someone else. Is that still city-owned but operated by a manager, or is it owned and operated by somebody else? If city-owned, how much income do we get from it and how much annual expense does it cost? If not city-owned, how much real estate tax do we get from it?

I assume this isn't exactly at your fingertips, and that you have to dig through some records to find this info - but would appreciate learning more about this. And THANKS! SO glad to have you back!

[Jennifer Pae]

I have a couple city finance questions for Jenn Pae, now that she's back:

1. Jenn, who pays the city for the free parking the hospital employees get in the south garage? How much annual income is that? How much other (non-employee) parking income do we get annually from the south garage? How much is the usual annual expense for that garage?

2. I remember that the North Garage used to be city owned (I know, because the City took our house so they could build the garage for the developer who was supposed to build his own garage). Then the city (Cain?) turned it over to someone else. Is that still city-owned but operated by a manager, or is it owned and operated by somebody else? If city-owned, how much income do we get from it and how much annual expense does it cost? If not city-owned, how much real estate tax do we get from it?

I assume this isn't exactly at your fingertips, and that you have to dig through some records to find this info - but would appreciate learning more about this. And THANKS! SO glad to have you back!

Thanks Marguerite.

To answer your first question, it is one for LHA. None of LHA's revenues and expenditures are on the City's financial statements, and have been not since 1987.

The second one will require more research on the property regarding parcel number and property taxes paid, but like the Lakewood Hospital Garage, the City does not receive any revenues from the operations of those two garages because neither is City-owned.

[Marguerite Harkness]

Hmmm. If the City does not own either garage; and therefore the City doesn't get any income from the garages - why is the City fretting about the $5 million in repairs that are supposedly needed?

WHO owns the two garages?

[Bill Call]

WHO owns the two garages?

And why wasn't the South parking garage properly maintained?

And if repairing a parking garage is so difficult why is it that the North garage is being repaired?

And if the South garage is going to be demolished where will people park? How many acres of parking are needed to replace a parking garage?

If the new development and new medical office building are going to be such a big draw then won't all of those customers and employees need a place to park?

Why is the City tying itself into knots to relocate two Cleveland Clinic office buildings onto the choicest piece of real estate in Lakewood?

[Jim O'Bryan]

Which is why Dru Siley told Councilman Sam O'Leary, your park will be paved and turned into
a parking lot as they need the room for business parking. BAR PARKING

Speaking of...

One reason parking is tight, is that they have allowed bars and restaurants to increase their
occupancy, with patios.

In the past the second largest thing taken into account on occupancy was parking. This is
why Mahall'a and Sullivan's were allowed to increase occupancy, was allowing the drunks
to park in Madison Park after they closed it at dusk to the residents.

Mayor Summers, Dru Siley, LOVE PUBLIC DRUNKS.

This city has lost its moral compass.

.

[Jennifer Pae]

Hmmm. If the City does not own either garage; and therefore the City doesn't get any income from the garages - why is the City fretting about the $5 million in repairs that are supposedly needed?

WHO owns the two garages?

The Lakewood Center North Garage is privately owned and you are more than welcome to search property records as to who it is owned and operated by.

The Lakewood Hospital Garage is owned and operated by Lakewood Hospital Association, and their designee. The property has not been on the City's books as an asset since 1987, nor has the City been responsible for its upkeep or accounted for revenue from its operations since that time.

The concern is due to the proposal for the property in the now expired Letter of Intent, and if Lakewood Hospital Association ceased to exist and the LHA properties listed in the Lease document revert back to the City.

[tom monahan]

Marguerite & Bill:

The South Garage is owned by LHA as evidenced in the Amended and Restated Agreement. A description of the facility is noted on Exhibit Page C - 4. There it states that the garage was built in two phases: the first four levels were completed in 1967 and the remaining two levels were completed in 1975.

[Lori Allen _]

Jenn is correct. The north garage is not owned by the City of Lakewood. It is currently owned by a Lakewood Equities LLC. The tax mailing address goes to the attention of a Bobby Cohan at Time Equities, 55 Fifth Avenue in New York City.

However, according to county records, the south garage at 1422 Belle is owned by the City of Lakewood. LHA is never mentioned in the transfer history. However, the tax mailing address does go to the attention of a Carol Lester of the Cleveland Clinic at 1950 Richmond Rd TR103 in Lyndhurst. I don't know the specifics of the agreement that Tom mentioned, but the county auditor does not show any transfer to LHA.

[Bill Call]

Here is the study on the cost to repair the South parking garage:

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

The garage has 600 spaces. The report indicates that it would cost $10,000 per space to update and repair the garage.

The cost of a new parking garage is about $18,000 per space:

http://www.carlwalker.com/wp-content/up ... r-2014.pdf

The $6,000,000 repair cost amortized over 15 years is about $48,000 per month at 5.25% or about $80 per month per space.

There are a lot of obvious questions that no one at Build Lakewood/City Hall are asking:

1. If the garage rate was $8 per day and had a 50% usage on a average daily basis the annual gross income would have been about $876,000 per year. That seems like more than enough to fund repairs and renovations over a 10 year period. Why wasn't the garage maintained?

2. If the Cleveland Clinic employees were offered free parking in the City owned garage why wasn't the Clinic paying for that privilege? How much was that subsidy worth?

3. If the proposed new development is going to replace the 1,500 jobs at the hospital complex where are all of those people going to park?

Build Lakewood/City Hall are in a big hurry to demolish the parking garage even though potential future revenue pays for the repairs. If occupancy rates are higher than 50% then the garage has the potential to be very profitable.

If the proposed new development can't provide enough business to use 300 parking spaces per day just how great is that development?

Since their public statements on this issue make no sense the public statements must be hiding the real intent.

We will find out what the actual intent is after the election. Council should take no action until then

[Bridget Conant]

Parking garages are typically money makers. If that garage isn't, one has to ask WHY?

If it is like most parking facilities, it was making money. Who got that money and what did they do with it?

[Jay Carson]

I think those focusing on the parking garage are missing, or perhaps seeking to obscure, the bigger issue. If the hospital is not viable in its present configuration--which appears to be the case. And if there is no one willing to operate the hospital in its present configuration--which also appears to be the case, parking garages are irrelevant.

[Bridget Conant]

Who started the focus on the garage, Jay? Look to the city administration and Build Lakewood. They are the ones who repeatedly point to the cost of updating the structure as "proof" that the hospital needs to go.

You can't have it both ways. Don't say it's not relevant when you are the one who brought it up as an excuse. And by you, I mean the Tear-it-down crowd.

[Bill Call]

To answer your first question, it is one for LHA. None of LHA's revenues and expenditures are on the City's financial statements, and have been not since 1987.

The second one will require more research on the property regarding parcel number and property taxes paid, but like the Lakewood Hospital Garage, the City does not receive any revenues from the operations of those two garages because neither is City-owned.

According to County records the parking garage is City owned.

Who has collected the parking lot revenue?

The parking lot is a City asset that generated a lot of money. Where did the money go?

Since the parking garage is owned by the City shouldn't revenue from the garage be accounted for in a separate enterprise fund?

[Jennifer Pae]

To answer your first question, it is one for LHA. None of LHA's revenues and expenditures are on the City's financial statements, and have been not since 1987.

The second one will require more research on the property regarding parcel number and property taxes paid, but like the Lakewood Hospital Garage, the City does not receive any revenues from the operations of those two garages because neither is City-owned.

According to County records the parking garage is City owned.

Who has collected the parking lot revenue?

The parking lot is a City asset that generated a lot of money. Where did the money go?

Since the parking garage is owned by the City shouldn't revenue from the garage be accounted for in a separate enterprise fund?

The City only has title to the land and property per the Lease agreement. That is why it is listed as the Property Owner.

With the 1987 Lease with LHA, and continued with the 1996 revised lease, LHA is responsible for all hospital-related assets and liabilities. That is why none of the properties listed in the Lease have been reported on the City's financial statements since 1986, as well as any revenues or expenditures related to the properties.

The 1996 Definitive Agreement between the Clinic and LHA merged the hospital's financial management with CCF (Section 1.1.1.10). That is why the Tax Mailing Address is "ATTN CAROL LESTER CLEVELAND CLINIC, 1950 RICHMOND RD, TR103, CLEVELAND, OH 44124."

The Hospital Parking Garage is reported on LHA's Financial Statements, and it is fiscally managed by the Cleveland Clinic.

[Bill Call]

The Hospital Parking Garage is reported on LHA's Financial Statements, and it is fiscally managed by the Cleveland Clinic.

Thank you for your reply.

If the Clinic manages the parking garage weren't they responsible for its upkeep and maintenance?

Since the Clinic failed to maintain the garage isn't the Clinic responsible for any repairs?

Where were the members of the Lakewood Hospital Association (LHA) while the parking garage was being wasted away?