One obvious question is why Trump and his partners aren’t simply building an actual hotel on the site. According to Julius Schwarz, executive vice president of the Bayrock Group (which initially secured the site with the Sapir Organization before bringing in Trump for his inimitable cachet) and the managing partner for the project, “It’s a financing mechanism” designed as a hedge against a potential glut of hotels. “You can model it out 10 years. Right now, there’s a shortage of hotels. So people are going to be building hotels and the rates will eventually come down. Hotel rooms will always be in high demand, but you can’t rely on the $1,200-a-night rates. Even with a very high-end luxury hotel like this, you have to convince a lender. That’s the most important thing; otherwise the deal doesn’t get done.”
What this is likely to mean is that the lawsuit will focus on Trump’s intentions and on the enforceability of his “voluntary” agreement to limit the days his high-rollers are actually in the building. Will he really send the concierge to remove the owner of a $10 million unit about to stay for a 30th straight day? It likewise seems highly unlikely that the New York City Building Department, which is responsible for enforcement, will have either the resources or the inclination to monitor 400 apartments on a daily basis to see exactly who’s behind the closed doors. The scope for scams and greased palms is virtually limitless, and the only real question is whether the city actually believes in the enforceability of the arrangement or is simply acquiescing in a situation it knows to be absurd.
You have 0 complimentary articles remaining.
Unlimited access + premium benefits for as low as $1.99/month.