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Court: '93 Trump Agreements No Longer Binding

NEW YORK CITY-The state's highest court ruled that agreements between Donald Trump and community groups to garner support for a West Side development expired in 2003.

By Joel Stashenko | Updated on November 25, 2009

This story, in slightly different form, originally appeared in the New York Law Journal. NEW YORK CITY-Agreements that Donald Trump made with community groups to secure their support for a development on Manhattan’s West Side expired in 2003 and are not binding on subsequent owners, the New York State Court of Appeals ruled unanimously Tuesday.

The case that once involved Trump, Riverside South Planning Corporation v. CRP/Extell Riverside, hinged on a deal the developer made in March 1993 with a coalition of six community groups called the Riverside South Planning Corp. In exchange for the groups’ support for his plans for a mixed development on a 76-acre Penn Central railway yard, Trump agreed to give the coalition an ongoing role in the planning and development of the site as well as input in design criteria and plans for parks, open spaces and public arts programs. The agreement stated that it “shall continue for 10 years,” or for a shorter period, should Trump no longer own any of the Riverside South property.

After beginning development on the project known as Trump Place, Trump sold a 70% stake in the project to a group of Hong Kong and Chinese businessmen in 1994. Eleven years later, the Asian investors sold all shares in the project to Extell Development Corp. and the Carlyle Group for $1.8 billion. The RSPC sought to assert the agreement it made with Mr. Trump when members objected to the use of glass on a building, and Extell refused.

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