Donald Trump and Ferry Point Park
Critics have slammed the deal the city reached with Donald Trump for a championship golf course in the Bronx that doesn’t require the developer to pay any licensing for four years, but the New York Times noted that Trump and his Trump Golf company aren’t guaranteed to profit off the apparently sweet deal.
The city will spend more than $180 million to build the municipal course — mostly on taxpayers’ dimes — and leave Trump Golf to build only a $10 million clubhouse and operate the facility. In exchange Trump will pay nothing for four years, and escalating amounts for the next 16 that start at the greater of $300,000 or 7 percent of gross revenue and end in year 20 at $470,000 or 10 percent of revenue.
The deal initially looks worse considering a similar agreement the city reached with Ferry Point Partners in 2000 to build a golf course on the 222-acre Ferry Point Park. The firm signed a 35-year lease and vowed to fund the then-estimated $22 million construction and pay the city at least $1.25 million in annual licensing fees. But construction was delayed for years by several problems, including the discovery of toxins beneath the soil. By 2006 the city voided the contract and couldn’t find another developer thanks to the problems at hand.
While park advocates pan the city for giving away parkland and not even profiting off of it, and others note the failed history of publicly funded sports venues, Mayor Michael Bloomberg defended the decision.
The city still hopes to earn some money from the course, and its existence will benefit youth and school athletic programs.
“I’m not sure he got a great deal,” Mayor Bloomberg said. “These are not terribly profitable things in this day and age. More golf courses are closing than opening across the country.” [NYT]
January 10, 2012 at 9:30 am, Get Real said:
Who cares about the deal? Just like Wollman rink; unlike the city, Trump will get the job done and it will be a great addition to our local golf courses. What’s not to like about that?
January 10, 2012 at 9:46 am, David Malitzky said:
Trump can get it done!
January 10, 2012 at 9:50 am, wbudd21 said:
Privatization of public space should see a return for the city.
March 15, 2012 at 6:46 pm, Latest distressed property type investors are increasingly eyeing: golf courses said:
[...] including Donald Trump himself, whose Trump Golf company has plans for courses from Scotland to the Bronx, are snapping up the properties, Bloomberg [...]