Can NYS Rename Trump State Park?

 

photo by Jeffrey Putman

Politifact quoted me in Can New York State Rename Donald J. Trump State Park? It reads,

Even after officially decamping for Palm Beach, Fla., former President Donald Trump has continued to stir emotions in his previous home state of New York.

New York Assemblywoman Sandy Galef, a Democrat, said she believes a park currently named for Trump north of New York City should be renamed. Trump donated the land for the park, and it was agreed at the time it would be named after him.

In a Jan. 14 letter to Erik Kulleseid, the Parks, Recreation and Historic Preservation Commissioner in New York, Galef wrote, “It is my understanding that Mr. Trump did not sign the appropriate documents with the state, rendering any claim of breach of contract moot. We can and should rename the park.”

In an interview, Galef added that the park “really hasn’t been fixed up” and that efforts to do so would be hobbled by having Trump’s name on it. Galef said she believes the park should instead be named after former New York Gov. George Pataki, a Republican.

“Around this area, when you have ‘Trump’ on the name of something, it doesn’t go over very well,” Galef said. “My concern is that people aren’t going to want to put money into Trump Park, whether it’s state dollars or any private dollars.”

Galef has support in her quest to rename the park: On Feb. 11, a bill advanced in the Assembly to continue talks on renaming the park.

But the former president may pursue litigation against the state if the Parks Department decides to rename the park, a Trump spokesman said.

“Despite the fact that the state has done a horrible job running and maintaining the park in question, an utter disgrace to such incredible land and a generous donation, the conditions of this gift, formally documented and accepted by the state of New York, could not be clearer: the park must bear Trump’s name,” Trump’s office said in a statement. “This would be breaching its agreement by removing Trump’s name, and Trump will take whatever legal action that may be necessary to fully enforce his rights under this agreement.”

Is Galef right that New York state could change the name without too much difficulty? The answer isn’t clear enough for us to render a Truth-O-Meter verdict. But we decided to take a look at the issue and explain what we found.

How the park came to be

Donald J. Trump State Park sits on the border of Putnam and Westchester counties along the Taconic Parkway. Trump gave the land to New York State in 2006 after the former president failed in building a golf course on it.

The land deed for the property does not include any naming provisions, but the state named the park after Trump based on a letter of agreement between the Parks Department and Trump’s lawyers.

The letter outlined several terms, one of which is the following: “Each of the properties will bear a name which includes Mr. Trump’s name, in acknowledgment of these gifts. The name will be prominently displayed at least at each entrance to each property.”

The letter includes signatures by Trump’s lawyers and by Trump himself, and it was “acknowledged and accepted” by James Sponable, who was then the Parks Department’s director of real property.

The New York State Attorney General’s office referred questions about the park’s possible renaming to the Parks Department. The Parks Department did not respond to multiple requests for comment.

But legal experts say it isn’t clear how ironclad the terms in the letter are.

“The land is called a gift, so this seems to be memorializing the terms of a gift,” David Reiss, a real estate law specialist at Brooklyn Law School, told PolitiFact. “So, one question is, ‘What’s the enforceability of this letter?’ It’s not obvious to me that this would be analyzed as a contractual dispute.”

Reiss said because the letter does not clearly state that it is a binding contract, it is unclear how a court would treat it if the state were to rename the park and Trump legally challenged it.

“The letter says, ‘We have this understanding,’ but it doesn’t say what would happen if the understanding isn’t held to,” Reiss said. “It doesn’t say what would happen if, at some later time, it changed. There is no promise that the naming would be perpetual. So it’s unclear what Trump’s rights would be to enforce this based on the language of this document.”

Ultimately, Reiss said, “the one sure thing is there could be a lot of litigation about these issues, if the parties chose to litigate.”

A possible plan B

As an alternative, Galef said Trump’s name could be removed from a sign on the Taconic Parkway, which is the most common way for motorists to see it. The letter “doesn’t say you have to have a sign on the Taconic Parkway, … That could come down,” Galef said in the interview.

Reiss, the legal expert, agreed with Galef’s interpretation and said that it might be a feasible option.

“The sign on the Taconic is not the entrance of the park, so you could comply with the letter and still take that sign down,” he said. “It might be confusing to people if you say, ‘Unnamed State Park, next right,” but if you stuck to the black letter of this letter, you could say, ‘Right at the entrance of the park is where we’re going to put the sign, but nowhere before.’”

Decay at Donald J. Trump State Park

photo by Alan Kroeger

Yahoo News quoted me in New York’s Donald J. Trump State Park: A Story of Abandonment and Decay. It opens,

Donald J. Trump State Park is dilapidated and forgotten. No running path, no picnic table, no basketball hoop, no hiking trail, no ball field. It’s 436 acres of neglected land, overrun by weeds and brush. Most of the buildings that once stood on it have been demolished, and the few that remain are in utter disrepair: broken windows, rusted metal, corroded walls, missing or boarded-up doors and caved-in roofs.

That’s what became of the “gift” Donald Trump once gave to New York State.

Yahoo News sent several recent pictures of the park to Eric F. Trump, the president’s son and executive vice president of the Trump Organization, to see what he thinks of its current state. He responded that the state has failed to maintain the property and that he’s disappointed by what he saw in the photographs.

“It is very disappointing to see the recent pictures of the Donald J. Trump State Park. My father donated this incredible land to the State of New York so that a park could be created for the enjoyment of all New York State’s citizens,” Eric F. Trump told Yahoo News. “Despite the fact that the terms of his gift specifically required the State to maintain the Park, the State has done a poor job running and sustaining the property. While we are looking into various remedies, it is my sincere hope that going forward, the State will exercise greater responsibility and restore the land into the magnificent park it was, and should continue to be.”

In the ’90s, then businessman Trump purchased a large swath of open meadows and thick woods 45 miles north of midtown Manhattan for a reported two million dollars, with plans to build a private golf course. But Trump couldn’t get approval from the towns of Putnam Valley or Yorktown and wound up donating the land to New York State in 2006. He claimed to the media that this “gift” was worth $100 million (though this was likely his characteristic hyperbole), and received a substantial tax write-off.

On April 19, 2006, then Gov. George E. Pataki announced Trump’s “generous and meaningful gift” would become New York’s 174th state park. He said the park would protect open space, increase public access to scenic landscapes and provide recreational opportunities in the city’s far-northern suburbs.

“On behalf of the people of the Empire State, I express our gratitude to Donald Trump for his vision and commitment to preserve the natural resource of this property for the benefit of future generations,” Pataki said at the time.

Trump said, “I have always loved the city and state of New York, and this is my way of trying to give something back. I hope that these 436 acres of property will turn into one of the most beautiful parks anywhere in the world.”

The establishment of Donald J. Trump State Park combined two parcels of land: the 282-acre Indian Hill site, which straddles the border of Westchester and Putnam counties, and the 154-acre French Hill site in Westchester County. Pataki’s office touted the new park as an example of New York’s role as a national leader in stewarding the United States’ natural resources.

But the promised recreational facilities never were built. New York stopped maintaining Donald J. Trump State Park in 2010 because of budget cuts, even though its annual operation costs were only $2,500, and it was cared for by workers at nearby Franklin D. Roosevelt Park.

Randy Simons, a public information officer for the New York State Office of Parks, Recreation and Historic Preservation, told Yahoo News that the park is currently open and serves “as a passive park offering hiking, birdwatching and similar outdoor recreational activities.”

Simons explained that the office recently removed several vacant and shabby buildings to address potential public safety and environmental hazards. This consisted of demolishing a 3,700-square-foot house, four other structures and a swimming pool. They also conducted asbestos and lead paint abatement.

 “Trail planning is underway for a formalized hiking trail network and mountain bike trails. The first step is a natural resources review and state environmental quality review to ensure that sensitive wetlands and plant and animal habitats are protected,” Simons said. “The ultimate timeline will be determined by this review.”

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How much Trump benefited from donating the land is difficult to determine. Bridget J. Crawford, a professor at Pace University School of Law in nearby White Plains, N.Y., and a member at the American Law Institute, said it’s quite common for wealthy people to donate real property to a state or a local government for a park. The Rockefeller family, for instance, donated the Rockefeller State Park Preserve in Sleepy Hollow, N.Y., little by little starting in 1983.“

“There’s nothing unusual about the donation,” Crawford told Yahoo News. “The problem of course here is that the donation of land was made but there was no additional cash gift made in order to maintain or create the park. It seems the state and municipalities don’t have the money to do that. If these sort of deals ‘fail,’ it’s always because of lack of funding.”

Crawford’s scholarship focuses on wealth transfer taxation and property law. She said people who are serious about establishing open space parks that the public can use in meaningful ways often make substantial cash contributions as well to fund the park’s maintenance.

As for how much money Trump saved, it would depend on what valuation the IRS accepted for the land; the figure of $100 million was Trump’s unofficial estimate, for public consumption. Another variable is whether he personally owned the property or purchased it via a pass-through entity like an LLC. Crawford explained that if it were owned through an LLC that was ignored for income tax purposes, which is not unusual, a $100 million donation would have saved Trump about $35 million in taxes.

Nevertheless, it seems unlikely that the IRS would accept a $100 million appraisal of land that was sold for a few million dollars at fair market value in the 1990s.

David Reiss, a professor of law at Brooklyn Law School who focuses on real estate finance and community development, said he doesn’t doubt that Trump got an appraisal that “pushed the limits” to price it as high as possible, a move that is not uncommon. He said it’s possible that Trump got an appraisal that determined he would make more money by donating the land than he would by selling it. And it wouldn’t have to be as high as $100 million.

“If he claimed it was worth $10 million and he bought it for two or three million dollars, it’s conceivable that he came out ahead with this donation,” he said. “He actually could be better off financially. And this is not just for Donald Trump, but any donor in a comparable situation.”