Civic Accountability -- Honesty in Local Government III

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Mark Kindt
Posts: 2637
Joined: Sat Dec 03, 2016 11:06 am

Re: Civic Accountability -- Honesty in Local Government III

Postby Mark Kindt » Mon Oct 16, 2017 12:40 pm

Basing the values on projected losses only makes sense if the Definitive Agreement is read as requiring CCF to cover those losses--a position long-disputed by the City.


Mark Kindt
Posts: 2637
Joined: Sat Dec 03, 2016 11:06 am

Re: Civic Accountability -- Honesty in Local Government III

Postby Mark Kindt » Mon Oct 16, 2017 3:41 pm

There is something so wooden-headed and so willfully ignorant (if not malign) about all of this.

The Step-Two Committee disregarded a full-scale proposal from a major health care system that was timely made to Subsidium.

Then, in complete contradiction to their duties as hospital trustees, they engaged in what were essentially LHA liquidation negotiations with the lessee (CCF).

Remember, this is the same lessee that was actively wasting the assets by decanting our hospital programs to its other facilities.

Even their consultant is holding its nose on the CCF proposal ("no material advantage to the community").

Step-Two enters into a screwy liquidation proposal that comes nowhere near its written negotiation objectives of "nearer net present value of $150M to $200M".

CCF wins on all fronts:

1. It closes the hospital and retains all of the hospital non-real estate assets;

2. It builds itself a medical office building;

3. It funds a non-profit, where it has board seats and other rights;

4. It pays the City of Lakewood only a fraction of the value of the hospital assets.

Who, in their right mind, would ever do this? Any bankruptcy trustee could have done better than what the Step-Two Committee produced.


Mark Kindt
Posts: 2637
Joined: Sat Dec 03, 2016 11:06 am

Re: Civic Accountability -- Honesty in Local Government III

Postby Mark Kindt » Tue Oct 17, 2017 8:14 am

We will never fully understand the details of the negotiations that resulted in the closure of the hospital.

Why? Because most of the key documents will never become public, despite years of litigation.

Thank you readers! This concludes Series III of Civic Accountability -- Honesty in Local Government.


Mark Kindt
Posts: 2637
Joined: Sat Dec 03, 2016 11:06 am

Re: Civic Accountability -- Honesty in Local Government III

Postby Mark Kindt » Tue Oct 17, 2017 9:33 am

One final document excerpt:

Guess who will actually control the "New Foundation"? Could it be our friends, the Cleveland Clinic Foundation? This is actually worse than the first refusal rights under the original Letter of Intent.
Attachments
15-Master-Agreement-City-of-LaClinic-fully-executed-12212015 9.jpg
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