Pae/City Admit Hospital Sold to Clinic: Audit Report Shows Clinic Paid Only $9.6M
Posted: Fri Oct 14, 2016 4:52 am
David Anderson wrote:Mr. Essi -
The LHA September of 2015 financial statements were provided to you which shows a book value of the hospital building and land at $20.0 M. This remains in City/taxpayer possession and was not sold as your headline claimed. In addition, the city is receiving lease payments from the Clinic for the continued use of a portion of the building for the ER.
How is it possible to sell something yet still,own it and collect rent?
David Anderson
Mr. Anderson,
The $20M figure you keep mentioning is not on the financial statements I have---please produce the People's records that you claim show this number--put them on the Deck--back up what you say with documents like i have.
Please recall that Jenn Pae, said Lakewood Hospital was not the "bricks and mortar" --Rather it was a going concern with real doctors and nurses that saved lives and you sold it. You, the rest of City Council and Mayor Summers sold it per the Master Agreement and you granted the Clinic a non compete/restrictive covenant so that the city and nobody else can ever operate a Hospital at the Hospital site until the Master Agreement is overturned by Issue 64 or a successful legal action. is the hospital open? No! If you didn't sell it, why did you give the noncompete?
According to the CAFR, which was prepared with the participation of Mayor Summers and his administration including Jenn Pae: The Master Agreement disposed of "The City-owned Lakewood Hospital" (CAFR, page 47) in a “sale of Lakewood Hospital to the Cleveland Clinic” (CAFR, pages 42 and 44). The full CAFR can be found at https://ohioauditor.gov/auditsearch/Rep ... yahoga.pdf Jenn Pae, Mike Summers and the State Auditors have characterized the hospital as having been sold--I am just quoting the CAFR so if it was not sold, your beef is with Summers, et al.
The net proceeds from the sale of 850 Columbia Road complex and proceeds from the sale of the Medical Office Building and the parking garage were both included and reported in the 2015 CAFR as follows:
I. The 2015 CAFR (and the recently release records below) show the city received $9.6 million from CCF for Lakewood Hospital, which includes:
1. $ 6,644,731 sale proceeds Columbia Road property (Per CAFR).
2. $1,400,00 promissory note from CCF for sale of Columbia Road (Per CAFR)
3. $1,576,000 for sale of Detroit/Belle land sold to CCF (Per CAFR).
Total Received from CCF: $9,620,731.
This is all in the CAFR and work papers.
Further details can be found at: http://lakewoodobserver.com/read/2016/1 ... -million-a
You and the city fought hard and are fighting hard against Mr. Graham and others in Court to achieve this result--a sale of the hospital in which the Clinic pats only $9.6 M to the city. Its' a fact you cannot avoid--you own it--but it is not a hospital.
If you had any evidence to contradict your own CAFR and the facts I present you and Mr. Butler would present it. But you don't have any evidence. Please show us OUR documents.