HWS was not going to sue, but they were going to fight it in court. And they were joined by every church and most of the not-for-profits in the city. The hospital hired its own lawyers.
What killed the plan you were talking about was the fact that not all homeowners would have gotten a lower tax rate. As an example, anyone living on a corner lot would have seen their taxes go up. At least a couple of Council members said that unless every home owner paid less in tax, they would not vote for the benefit assessment plan.
To eliminate poverty, you need jobs.