Trump and Me (4 page)

One day, when I was in Trump's office, he took a phone call from an investment banker, an opaque conversation that, after he hung up, I asked him to elucidate.

“Whatever complicates the world more I do,” he said.

Come again?

“It's always good to do things nice and complicated so that nobody can figure it out.”

Case in point: The widely held perception is that Trump is the sole visionary and master builder of Riverside South, the mega-development planned for the former Penn Central Yards, on the West Side. Trump began pawing at the property in 1974, obtained a formal option in 1977, allowed it to lapse in 1979, and re-entered the picture in 1984, when Chase Manhattan lent him eighty-four million dollars for land-purchase and development expenses. In the years that followed, he trotted out several elephantine proposals, diverse and invariably overly dense residential and commercial mixtures. “Zoning for me is a life process,” Trump told me. “Zoning is something I have done and ultimately always get because people appreciate what I'm asking for and they know it's going to be the highest quality.” In fact, the consensus among the West Side neighbors who studied Trump's designs was that they did not appreciate what he was asking for. An exotically banal hundred-and-fifty-story phallus—“The World's Tallest Building”—provided the centerpiece of his most vilified scheme.

The oddest passage in this byzantine history began in the late eighties, when an assortment of high-minded civic groups united to oppose Trump, enlisted their own architects, and drafted a greatly scaled-back alternative plan. The civic groups hoped to persuade Chase Manhattan, which held Trump's mortgage, to help them entice a developer who could wrest the property from their nemesis. To their dismay, and sheepish amazement, they discovered that one developer was willing to pursue their design: Trump. Over time, the so-called civic alternative has become, in the public mind, thanks to Trump's drumbeating,
his
proposal; he has appropriated conceptual ownership.

Three years ago, a syndicate of Asian investors, led by Henry Cheng, of Hong Kong's New World Development Company, assumed the task of arranging construction financing. This transaction altered Trump's involvement to a glorified form of sweat equity; for a fee paid by the investment syndicate, Trump Organization staff people would collaborate with a team from New World, monitoring the construction already under way and working on designs, zoning, and planning for the phases to come. Only when New World has recovered its investment, plus interest, will Trump begin to see any real profit—twenty-five years, at least, after he first cast his covetous eye at the Penn Central rail yards. According to Trump's unaudited net-worth statement, which identifies Riverside South as “Trump Boulevard,” he “owns 30–50% of the project, depending on performance.” This “ownership,” however, is a potential profit share rather than actual equity. Six hundred million dollars is the value Trump imputes to this highly provisional asset.

Of course, the “comeback” Trump is much the same as the Trump of the '80s; there is no “new” Trump, just as there was never a “new” Nixon. Rather, all along there have been several Trumps: the hyperbole addict who prevaricates for fun and profit; the knowledgeable builder whose associates profess awe at his attention to detail; the narcissist whose self-absorption doesn't account for his dead-on ability to exploit other people's weaknesses; the perpetual seventeen-year-old
^*1
who lives in a zero-sum world of winners and “total losers,” loyal friends and “complete scumbags”; the insatiable publicity hound who courts the press on a daily basis and, when he doesn't like what he reads, attacks the messengers as “human garbage”; the chairman and largest stockholder of a billion-dollar public corporation who seems unable to resist heralding overly optimistic earnings projections, which then fail to materialize, thereby eroding the value of his investment—in sum, a fellow both slippery and naïve, artfully calculating and recklessly heedless of consequences.

Trump's most caustic detractors in New York real-estate circles disparage him as “a casino operator in New Jersey,” as if to say, “He's not really even one of us.” Such derision is rooted in resentment that his rescue from oblivion—his strategy for remaining the marketable real-estate commodity “Trump”—hinged upon his ability to pump cash out of Atlantic City. The Trump image is nowhere more concentrated than in Atlantic City, and it is there, of late, that the Trump alchemy—transforming other people's money into his own wealth—has been most strenuously tested.

To bail himself out with the banks, Trump converted his casinos to public ownership, despite the fact that the constraints inherent in answering to shareholders do not come to him naturally. Inside the Trump Organization, for instance, there is talk of “the Donald factor,” the three to five dollars per share that Wall Street presumably discounts Trump Hotels & Casino Resorts by allowing for his braggadocio and unpredictability. The initial public offering, in June 1995, raised a hundred and forty million dollars, at fourteen dollars a share. Less than a year later, a secondary offering, at thirty-one dollars per share, brought in an additional three hundred and eighty million dollars. Trump's personal stake in the company now stands at close to forty percent. As chairman, Donald had an excellent year in 1996, drawing a million-dollar salary, another million for miscellaneous “services,” and a bonus of five million. As a shareholder, however, he did considerably less well. A year ago, the stock traded at thirty-five dollars; it now sells for around ten.

Notwithstanding Trump's insistence that things have never been better, Trump Hotels & Casino Resorts has to cope with several thorny liabilities, starting with a junk-bond debt load of a billion seven hundred million dollars. In 1996, the company's losses amounted to three dollars and twenty-seven cents per share—attributable, in part, to extraordinary expenses but also to the fact that the Atlantic City gaming industry has all but stopped growing. And, most glaringly, there was the burden of the Trump Castle, which experienced a ten percent revenue decline, the worst of any casino in Atlantic City.

Last October, the Castle, a heavily leveraged consistent money loser that had been wholly owned by Trump, was bought into Trump Hotels, a transaction that gave him five million eight hundred and thirty-seven thousand shares of stock. Within two weeks—helped along by a reduced earnings estimate from a leading analyst—the stock price, which had been eroding since the spring, began to slide more precipitously, triggering a shareholder lawsuit that accused Trump of self-dealing and a “gross breach of his fiduciary duties.” At which point he began looking for a partner. The deal Trump came up with called for Colony Capital, a sharp real-estate outfit from Los Angeles, to buy fifty-one percent of the Castle for a price that seemed to vindicate the terms under which he'd unloaded it on the public company. Closer inspection revealed, however, that Colony's capital injection would give it high-yield preferred, rather than common, stock—in other words, less an investment than a loan. Trump-l'oeil: Instead of trying to persuade the world that he owned something that wasn't his, he was trying to convey the impression that he would part with an onerous asset that, as a practical matter, he would still be stuck with. In any event, in March the entire deal fell apart. Trump, in character, claimed that he, not Colony, had called it off.

The short-term attempt to solve the Castle's problems is a four-million-dollar cosmetic overhaul. This so-called re-theming will culminate in June, when the casino acquires a new name: Trump Marina. One day this winter, I accompanied Trump when he buzzed into Atlantic City for a re-theming meeting with Nicholas Ribis, the president and chief executive officer of Trump Hotels, and several Castle executives. The discussion ranged from the size of the lettering on the outside of the building to the sparkling gray granite in the lobby to potential future renderings, including a version with an as yet unbuilt hotel tower and a permanently docked yacht to be called
Miss Universe.
Why the boat? “It's just an attraction,” Trump said. “You understand, this would be part of a phase-two or phase-three expansion. It's going to be the largest yacht in the world.”

From the re-theming meeting, we headed for the casino, and along the way Trump received warm salutations. A white-haired woman wearing a pink warmup suit and carrying a bucket of quarters said, “Mr. Trump, I just love you, darling.” He replied, “Thank you. I love you, too,” then turned to me and said, “You see, they're good people. And I like people. You've gotta be nice. They're like friends.”

The Castle had two thousand two hundred and thirty-nine slot machines, including, in a far corner, thirteen brand-new and slightly terrifying
Wheel of Fortune
–theme contraptions, which were about to be officially unveiled. On hand were representatives of International Game Technology (the machines' manufacturer), a press entourage worthy of a military briefing in the wake of a Grenada-caliber invasion, and a couple of hundred onlookers—all drawn by the prospect of a personal appearance by Vanna White, the doyenne of
Wheel of Fortune
. Trump's arrival generated satisfying expressions of awe from the rubberneckers, though not the spontaneous burst of applause that greeted Vanna, who had been conscripted for what was described as “the ceremonial first pull.”

When Trump spoke, he told the gathering, “This is the beginning of a new generation of machine.” Vanna pulled the crank, but the crush of reporters made it impossible to tell what was going on or even what denomination of currency had been sacrificed. The demographics of the crowd suggested that the most efficient machine would be one that permitted direct deposit of a Social Security check. After a delay that featured a digital musical cacophony, the machine spat back a few coins. Trump said, “Ladies and gentlemen, it took a little while. We hope it doesn't take you as long. And we just want to thank you for being our friends.” And then we were out of there. “This is what we do. What can I tell you?” Trump said, as we made our way through the casino.

Vanna White was scheduled to join us for the helicopter flight back to New York, and later, as we swung over Long Island City, heading for a heliport on the East Side, Trump gave Vanna a little hug and, not for the first time, praised her star turn at the Castle. “For the opening of thirteen slot machines, I'd say we did all right today,” he said, and then they slapped high fives.

In a 1990
Playboy
interview, Trump said that the yacht, the glitzy casinos, the gleaming bronze of Trump Tower were all “props for the show,” adding that “the show is ‘Trump' and it is sold-out performances everywhere.” In 1985, the show moved to Palm Beach. For ten million dollars, Trump bought Mar-a-Lago, a hundred-and-eighteen-room Hispano-Moorish-Venetian castle built in the '20s by Marjorie Merriweather Post and E. F. Hutton, set on seventeen and a half acres extending from the ocean to Lake Worth. Ever since, his meticulous restoration and literal regilding of the property have been a work in progress. The winter of 1995–96 was Mar-a-Lago's first full season as a commercial venture, a private club with a twenty-five-thousand-dollar initiation fee (which later rose to fifty thousand and is now quoted at seventy-five thousand). The combination of the Post-Hutton pedigree and Trump's stewardship offered a paradigm of how an aggressively enterprising devotion to Good Taste inevitably transmutes to Bad Taste—but might nevertheless pay for itself.

Only Trump and certain of his minions know who among Mar-a-Lago's more than three hundred listed members has actually forked over initiation fees and who's paid how much for the privilege. Across the years, there have been routine leaks by a mysterious unnamed spokesman within the Trump Organization to the effect that this or that member of the British Royal Family was planning to buy a pied-à-terre in Trump Tower. It therefore came as no surprise when, during early recruiting efforts at Mar-a-Lago, Trump announced that the Prince and Princess of Wales, their mutual antipathy notwithstanding, had signed up. Was there any documentation? Well, um, Chuck and Di were
honorary
members. Among the honorary members who have yet to pass through Mar-a-Lago's portals are Henry Kissinger and Elizabeth Taylor.

The most direct but not exactly most serene way to travel to Mar-a-Lago, I discovered one weekend not long ago, is aboard Trump's 727, the same aircraft he gave up during the blip and, after an almost decent interval, bought back. My fellow-passengers included Eric Javits, a lawyer and nephew of the late Senator Jacob Javits, bumming a ride; Ghislaine Maxwell, the daughter of the late publishing tycoon and inadequate swimmer Robert Maxwell, also bumming a ride; Matthew Calamari, a telephone-booth-size bodyguard who is the head of security for the entire Trump Organization; and Eric Trump, Donald's thirteen-year-old son.

The solid-gold fixtures and hardware (sinks, seat-belt clasps, door hinges, screws), well-stocked bar and larder, queen-size bed, and bidet (easily outfitted with a leather-cushioned cover in case of sudden turbulence) implied hedonistic possibilities—the plane often ferried high rollers to Atlantic City—but I witnessed only good clean fun. We hadn't been airborne long when Trump decided to watch a movie. He'd brought along
Michael,
a recent release, but twenty minutes after popping it into the VCR he got bored and switched to an old favorite, a Jean-Claude Van Damme slugfest called
Bloodsport,
which he pronounced “an incredible, fantastic movie.” By assigning to his son the task of fast-forwarding through all the plot exposition—Trump's goal being “to get this two-hour movie down to forty-five minutes”—he eliminated any lulls between the nose hammering, kidney tenderizing, and shin whacking. When a beefy bad guy who was about to squish a normal-sized good guy received a crippling blow to the scrotum, I laughed. “Admit it, you're laughing!” Trump shouted. “You want to write that Donald Trump was loving this ridiculous Jean-Claude Van Damme movie, but are you willing to put in there that you were loving it, too?”