Despite being the city where President Donald Trump has made a name for himself, he and New York City can hardly say they’ve always gotten along.
According to NPR , the friction between the two parties came to a head in 2019, when Trump and First Lady Melania Trump filed papers for residency in Florida. This came as welcome news to New York Governor Andrew Cuomo, who alleged that Trump hadn’t been paying taxes there anyway.
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Despite this, the Trump Organization has maintained a lucrative presence in the Big Apple through both his landmark real estate properties and contracts to operate public spaces in the city.
However, it appears that complications have arisen for both of these revenue streams in the wake of the riot that took place at the U.S. Capitol last week.
In no uncertain terms, New York City mayor Bill de Blasio has condemned Trump and announced that the city will cease all remaining association with the Trump Organization.
In a statement obtained by NPR, he said, “The President incited a rebellion against the United States government that killed five people and threatened to derail the constitutional transfer of power. The City of New York will not be associated with those unforgivable acts in any shape, way or form, and we are immediately taking steps to terminate all Trump Organization contracts.”
These contracts partially concern the operation of the Central Park Carousel and the Wollman and Lasker ice skating rinks.
As CNN Business reported , the Wollman rink contract has a special significance to the Trump Organization as it is both the longest-running agreement they’ve had with the city and it helped establish Trump’s reputation in business.
This was because his organization was able to renovate and operate the rink within four months and with $2 million in expenses after the city had floundered in reopening it for several years.
This cancellation would also affect the Trump Organization’s ability to operate the Trump Golf Links at Ferry Point.
According to CNN Business, the Trump Organization is seeking to fight this decision, but the outlook in doing so appears unlikely given that the contracts give the city the “sole and absolute discretion” to terminate them at will.
However, that doesn’t mean any of these cancellations will able to take place overnight.
As NPR reported, the contract for the carousel requires 25 days’ written notice before it can occur, while the ones regarding the ice rinks require 30 days’ notice.
As for the golf course, the city isn’t expecting to find a resolution for the more complex contract governing its operation for multiple months.
If and when these contracts are truly dissolved, the city is expected to decrease the Trump Organization’s revenues by about $17 million per year.
That figure is based on data obtained by CNN Business that showed the contracts earning Trump $17.9 million in 2019, with $9.4 million of this money coming from the rinks.
This move also comes at the same time that real estate firm Cushman & Wakefield have announced that they will cease managing the Trump Organization’s office and retail properties, which include the Trump Tower, Trump Plaza, and Trump Building at 40 Wall Street in New York City as well as Chicago’s Trump International Hotel and Tower.
Furthermore, NPR reported that this also comes at a time when Trump owes $340 million in guaranteed loans to Deutsche Bank, which has otherwise cut ties with him.
h/t: NPR , CNN Business
