The Capitol riot prompted a wave of businesses to call it quits with former US President Donald Trump, with many saying the one-term president incited the insurrection with calls for his supporters to act out against Congress’ vote certification process. Among those cut ties were several contracts with New York City, including a golf course deal.
The Trump Organization recently filed a lawsuit against New York City over a decision by city leadership to cancel the company’s lucrative contract to operate the Trump Golf Links at Ferry Point, a public 18-hole golf course in the Bronx borough.
The lawsuit, filed Monday in the New York State Supreme Court in Manhattan, alleges that the city’s decision had no legal basis and was politically motivated as the ceased partnership allegedly had no other purpose than to punish the former commander-in-chief following the Capitol riot.
At the time, the Trump Organization was in its sixth year of running the golf course, which first opened in 2015. The long-term contract was not due to expire until 2032.
The organization further noted in the Monday filing that de Blasio used his role as city mayor to denounce Trump and the Trump Organization while also urging “others to terminate business with Trump-related entities.”
New York City Mayor Bill de Blasio speaks before the ribbon cutting and seasonal opening of the Coney Island amusement park area, Friday, April 9, 2021, in the Brooklyn borough of New York.
Early on after the deadly January riot, the New York City mayor announced that the city would be severing all ties with the Trump group, explaining that contracts between the entities stipulated that business dealings would come to an end if the Trump Organization were involved in any criminal activity.
“Inciting an insurrection against the United States government clearly constitutes criminal activity,” de Blasio remarked at the time, during an interview with MSNBC’s “Morning Joe” program. The Trump camp subsequently vowed to fight the de Blasio-headed effort.
Despite de Blasio’s “criminal activity” statements at the time, the official conclusion for the broken partnership later came down to the Trump Organization reportedly defaulting on the agreement by failing to attract a major tournament.
Patrons play the links as the Manhattan skyline looms in the distance at Trump Golf Links at Ferry Point in the Bronx borough of New York on Tuesday, May 4, 2021. Former President Donald Trump has a rich history of fighting back when he’s down and making others pay, and that’s exactly how he intends to deal with New York City over its plans to fire his company from running the city golf course.
Incidentally, the ability to confirm a tournament at the grounds earlier this year were slim-to-none, as the PGA of America Board of Directors canceled its own plans to hold one of its major golf tournaments at a Trump Organization course.
The filing also notes that as the contract was terminated by the city, the agreement between the parties stipulates that a termination payment must be given to the organization for “capital improvement costs and grow-in costs,” among other fees. It’s estimated in the lawsuit that those fees amount to roughly $30 million.
Nicholas Paolucci, a spokesperson for the city’s Law Department, told Bloomberg that officials followed the proper protocols when the Trump Organization contracts were terminated earlier this year. He noted that the city would “vigorously” defend their decision, and that a process is ongoing in selecting a new vendor for the Ferry Point site.
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