City Hall Releases New Master Agreement Trading $120M In Public Asset for only $18.5 M

[Brian Essi]

Attached is the 95 page document just released by City Hall

The City will only receive about $18.5 million in this deal:
1. 8.2 m for Columbia Rd.
2. 7 m for demo of gutted hospital
3. 0.3 m est. for transfer of Curtis Block to City
4. 1 m est. for land sold to CCF
5. 2 m est. for land ultimately sold to private developer. This might be high because the land will be impaired by a restrictive covenant/non compete.

The New Foundation is less than $24 m on a present value basis. The $500k x 16 years has a present value of 3m per Huron but that is CCF giving to itself because it decides how that is spent. BTW the "In the words of City Council" printed on the LO front page says "doctors and others" (other than Lakewoodites) will be on the new board to be appointed by the old LHA board. Since the only doctors left in Lakewood will be CCF Drs it would appear that CCF will continue to control the new foundation just like it currently controls LHA.

So getting 18.5 from the value of assets is $120 m is about 15 cents on the dollar based on the Summers/LHA appraisal by Subsidium.

Bill Gorton signed the 1996 Lease and DA and lined his pockets with insurance business with CCF affiliates says its a "even better" deal than he cut---it is better for him, not Lakewood.

http://www.onelakewood.com/wp-content/u ... 102015.pdf