Office of Citizen
Rest in Peace,
No bill from Fred Nance
Submitted by Roldo on Fri, 05/16/2008 - 15:41.
Some people just must have too much money.
Fred Nance of Squire, Sanders & Dempsey hasn’t submitted a bill yet to Cuyahoga County for his work on the $900 million deal for a medical mart and convention center. He’s the county’s lawyer on these matters.
Thus far, Nance has completed the first phase of the deal which involved examining different financing structures and working out a memo of understanding with MMPI (Merchandize Mart Properties, Inc.).
That was worth up to $50,000 in legal fees.
Nance and the County are in the second phase, which is working out a lease involving the development agreement that’s worth another $50,000 in legal fees. Nance says that these negotiations will still take months to accomplish.
His third segment of work for the County will be to finish all aspects of the deal, including the financing structure. That will cost up to $75,000.
So in all, though no bill has been submitted, the expertise of Mr. Nance and Squire-Sanders will cost up to $175,000.
Well, not quite all.
Nance mentioned he had read where I called the deal a $900 million deal when the building cost will be $400 million. Yes, I added in the interest (and other incidentals) since, as I told him, that’s a cost to the public. He demurred some by saying that if you buy a house at a certain amount that’s what you call the cost of the house, you don’t add in the interest and say the house cost the price plus interest. Well, when I’m talking about the public cost, I certainly do add in the interest because that’s what a public body has to pay with public funds.
That financing will be done with bonds. “And you will do the bonds,” I suggested.
“Ah, yeah,” said Nance. So the $175,000 is really going to pale in what Cuyahoga County will eventually, some day, pay Squire-Sanders.
I guess none of us shouldn’t worry whether Squire-Sanders has submitted a bill.
It will come.
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