Following the Failed Jan. 6th Insurrection at the U.S. Capitol, New York City Mayor, Bill de Blasio (D) announced that he would Terminate All of the City’s Contracts with the Trump Organization, including the Management of Wollman Rink, Lasker Rink, and the Carousel, in Central Park, and the Ferry Point Golf Course, in the Bronx.
In making the move, the Mayor joined with Condo Owners, Building Owners, and State Legislators, who in recent years, have attempted to Erase the Trump Name, from a Variety of Properties, in the City, where Trump made his mark.
Aside from Losing the City Contracts to lucrative Tourist Attractions, the Banishment could have Broader Financial Implications. Branding of the Trump surname has been a Moneymaker; over Two years, 2015 and 2016, Trump earned $57 Million in Licensing or Management Deals, according to his Financial Disclosure Forms.
Trump filed a Lawsuit against the City over Ferry Point, where the Organization Operates Trump Links, claiming, de Blasio wrongfully Terminated the Deal and that the Trump Organization had lived up to its End by pouring $30 Million into Revamping and Operating the Site. “Mayor de Blasio had a preexisting, politically based predisposition to terminate Trump-related contracts,” according to a Lawsuit filed by the Company, which Lost 38% of its Revenue last year, which also the City Lost its Revenu. The Company blamed the Pandemic, in large part, for the Drop.
In the City’s eyes, the Capitol Riots “impair[ed] the course's capability to host [tournaments] by tarnishing the Trump brand to the extent that major professional golf associations will not affiliate with the course as long as it is associated with the Trump name,” Commissioner, Michael Silver, of the Department of Parks and Recreation, said in Court Documents.
The Real Estate Company’s troubles go beyond Political controversy. New York Prosecutors have recently convened a Special Grand Jury as part of a Criminal Investigation into Trump's Business Dealings, including Property Valuations and alleged Hush-Money Payments.
A Number of Privately owned Properties, in the City, that once proudly bore a Trump Logo on their Facades through Licensing Agreements, are looking for New Identities or have already Dissociated themselves from the Trump Name.
Where things stand for some of the most High-Profile Trump Branded Properties:
Trump Tower at City Center - The Condo Owners at a White Plains Apartment Building, Voted in February, to Remove the Trump Name from their Property. The Decision, announced in August, means the Trump Organization will No longer Manage the Property, now that it will be Rebranded.
Trump Place - The Oners of the Apartments at 200 Riverside Blvd. Sued in 2018, seeking to Remove Branding from their Building, after Trump Attorneys said it would be a Breach of their Licensing Agreement. Ultimately, their effort Failed. A Justice in State Supreme Court, in Manhattan, allowed the Building to Vote on the Proposed Removal. The Vote fell just Short of the Majority required to Drop the Name.
Trump SoHo - In 2018, the Owners of the former Trump SoHo Hotel, Rebranded the Property as the Dominick, amid growing Losses. As was the Case with Trump Place, the Real Estate Company never Owned the Building, but it had an Agreement with the Owners to License the Trump Name.
Trump Tower - The most iconic Trump Property, Trump Tower at 725 Fifth Ave., probably won’t Rebrand soon. The Company is currently Headquartered there and Trump owns a Residence. The Trump Organization owns a Portion of the Building, although the Primary Owner is now GMAC Commercial Mortgage. Trump Jr. now has his mail fowarded to a Florida address. Eric and a small Executive Group with Support Staff are still there. Its Main Entrance has been surrounded by Security and Steel Barricades since 2016, and the Property was the Site of many Protests against Trump’s Presidency. In February 2021, Gucci decided to Extend the Lease for its 49,000-square-foot Flagship Location at the building. ProPublica Reported, in November 2019, that the Trump Organization Overreported the Building’s Commercial Occupancy Rates by Up-To 16% for Three Consecutive years to its Lenders, allowing the Company to borrow more Money. The Company has Denied the Accusation.
Trump International Hotel - At the Trump International Hotel at Columbus Circle, which is Owned by the G.E. Pension Trust and by Galbreath & Company, and managed by Trump, some Condo Owners say the Name is Toxic to their Property Values.
Prices at Trump-Marked Condos in the City and: Chicago, Honolulu, and Las Vegas, have indeed Dropped, The Associated Press, Reported earlier this month, with some Units Selling at a 30% Discount or more. But the Slashing of Property Prices, during the pandemic, could have a lot do with that.
Trump Parc - At the Trump Parc, a former Hotel, the Company purchased and Converted into Condo Units in 1988. Units in that Building have been Selling at Discounts, as high as, 17% in the past year, StreetEasy Data shows.
Trump Building - The Trump Organization’s 72-story Art Deco Tower at 40 Wall St. has also seen its Value Decline. There has been Pandemic-related Revenue Declines at the Property. The City Lowered its Value for Property Tax purposes by 29%, to $130 Million, Bloomberg News Reported.
Trump State Park - Since 2016, Democratic State Lawmakers have been trying to Remove Trump's Name from Trump State Park. The latest effort Failed to come to a Vote, before the Legislative Session, in Albany, Ended earlier this month.
Trump gifted 436 Acres in Westchester and Putnam Counties, to the State, in 2006 after he Scrapped Plans to Build a Golf Course there. The State Attonery General, is investigating the possiple Inflation of Property Values, and has Deposed the Appraiser who determined their Poperty Values.
But the Future of the City Properties, that were once under the Trump Organization’s Supervision, remains to be seen. At Wollman Rink, the Central Park Conservancy, is vying to take over Management and is in talks with the Department of Parks and Recreation, but the Agency is Not sure who will take over the Golf Course, if the Trump Organization Loses its License there.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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