Donald Who Will Face Down World Leaders Lost to a School Board

L.A. Times

In at least one huge deal in L.A., Trump got schooled

 

Long before his run for president and his reality TV career as the ruthless boss, Trump fought an ugly decade-long battle over a Los Angeles landmark.

It's not an exploit he's bragging about on the campaign trail. The prize was the Ambassador Hotel. A legendary Hollywood celebrity hangout and the site of the 1968 assassination of Sen. Robert F. Kennedy, it had endured a long downward spiral before closing in 1989.

The Board of Education already had its eye on the property for a badly needed high school when a Trump syndicate swooped it up for $64 million in 1989 and announced plans to erect a 125-story office tower.
The school board countered with a 7-0 vote to take the property from Trump via eminent domain.
Usually that would start a process in which the parties and their appraisers, or a court, would settle on a price. But not when one of the parties was Trump.

His team launched a fierce lobbying campaign to block a $50-million state allocation to help the district buy the property. Goldberg, then the president of the school board, took on the notoriously tough negotiator.

Roused by Goldberg, protesters outside the Ambassador chanted "Dump Trump" and carried signs saying, "Public need over private greed."

In January 1991, he and his partners decided to take the nearly $48-million deposit the school board offered as part of its eminent domain condemnation suit.

In doing so, Trump Wilshire Associates, in effect, conceded the district's right to take the property.

Two and a half years later, as the eminent domain suit was set to go to trial, the school board abruptly dropped its bid to buy the land. The recession had driven the property's value down to $50 million, and Horton saw no reason to pay the previously estimated value of $74 million.

Barbara Res, executive vice president for Trump Wilshire Associates,  accused the district of duplicity, saying it reneged on a promise to pay $82 million for the entire 23.5-acre site "because they said politically it wasn't a good idea." Horton discounted that, saying the offer was only "a potential deal that we didn't accept, because we couldn't figure out a way to pay for it." Early in 1994 a judge sided with the district. Soon Trump, whose share was reported to be 20%, left the partnership with no signature building and little, if any, cash.