The Observation Deck

I hate to confuse too many people with too many things, but I wanted to bring up an
economics lesson for the community to mull over.

A 16oz bag of potato chips costs $2 dollars ($0.12.5 cents and ounce)



Then you go back, and get your next bag for $2 dollars but it is only 12 oz.
($16.6 cents and ounce)

The price went up.

We have done this with City Services before, You pay $2,000 a year for city services that
included backyard trash collection. Curbside has added 15 minutes a week to work you give
the city, and you bill at $60.00 an hour. You taxes went up $15 a week or $780.00 dollars
a year. A simple fact, we get lease for the same amount, which is a raise in cost.
(Going to automated pick up actually only saved us $2.00 a year, which I would have gladly paid.)

So the City sells off a $150 million dollar asset, and nothing comes back to the City.

You taxes just went up, $7,500.00, one time charge. What you just lost in the deal. After
all the money could be sent back to the property owners.

Now on top of that will be a $65.00 a month charge*, in "Wellness Center" and perhaps
another $200 a year in actual property taxes. Now Mike was looking for an income tax
raise as well, but why confuse the issue for this demonstration. *projected membership fee.

So over the same 10 years the Hospital was making money or breaking even, the average
homeowner in Lakewood, loses

- $7,500.00 in loss of assets
- $7,800 in loss of cash for membership
- $2,110 in new taxes. (the only part you vote for)

Which would mean, the average homeowner loses -$17,400.00 in this deal.

Look at your family tonight, and tell them, and think about the city taking $20,000 out
of your pocket, their mouths.

How do you feel now about the deal.

FACTS based on the information given to us by City Hall, the Schools, and the lawsuit.

Party on Lakewood.

.

Jim,

You make good points, but here is a fact check:
In the LOI, The City gets $8 million for Columbia Road and 6+ acres of cleared land to use or sell--with some restrictions. To help Summers out, I'll say he is able to $7 million for the land from CCF and the hotel, etc. developers. So Let's take $15 million away from your $150 million estimate.
Then its only a $6,750 immediate loss to each household so its only $16,650 per household over ten years--I'm giving you your assumptions on the other matters e.g. 20,000 households etc.

The Hospital Has Paid An Easy 6% ROI To Lakewood For Years
Here is the alternative way of looking at it: Since 1996, WITHOUT ONE NICKEL OF TAXES FROM LAKEWOOD RESIDENTS, the hospital has generated about $2 million each year in rent and income taxes---$100 per household positive cash flow. The hospital also generated on average about $7 million in charity care to the underserved every year.---That's $350 per year that each household "gives" to charity by keeping the hospital (but it doesn't come out of our pockets)---we are just a generous City that takes care of our people and the people in surrounding communities. Stated differently, and using your $150 million asset figure, the hospital generates a 6% return on investment ($9M/$150M). As Dr. Terry Kilroy repeatedly and correctly points out--we need to decide as a community if we will continue to take care of the most vulnerable in our community or not. Of course the are many other important economic and non economic benefits the hospital provides--little things like saving lives. Keep in mind that the hospital has been providing these dividends despite years of FAILED leadership and management that has allowed or ignored valuable services and personnel to be transferred from Lakewood to other CCF facilities. Just imagine if we had honest competent management that wasn't working against us.

FAILURES IN FACT
CCF, Summers and LHA cannot get around in Judge O'Donnell's court or in the public arena is the fact that the startling erosion of Lakewood's cash reserves only started after:
1. Their illegal announcement of the Hospital closure.
2. CCFs accelerated removal of services and "poaching" of caregivers to their other facilities.

Build Lakewood supports those FAILED culprits that are tearing down Lakewood not building it--they are on the side of the liars and the FAILURES.