Let’s just say this building had some problems, some pretty major problems. Also, it was not constructed very well because the outside curtain was made of glass and cheap aluminum, and it was chock full of asbestos. The good news was that the building structure was classic and had wonderfully high ceilings. It was worth saving for those important reasons alone.
When I heard this building was for sale, I called Dale Frey and asked to meet him. That’s when I found out he was receiving calls from many major developers around the country. I would have a lot of competition. However, I arranged for a meeting, and I explained that if the building was completely demolished, it could only be rebuilt as a 19-story building versus the 52 fabulous stories that it was. That alone was a big reason to see what could be salvaged, but it would require a lot of research, which I immediately started doing.
What I suggested was that the steel structure could be strengthened, and the high ceilings would be ideal for a residential building, which was also a hotter item in the market than a business space would be. This was the perfect location for a luxury residential building. General Electric seemed impressed with my ideas, and I felt good about their positive reaction to everything I had presented. My only concern at this point was that I was just emerging from some financial problems, so they might be hesitant to take a chance on me.
What happened next came as a shock. Dale Frey called to tell me that while he liked my plans a lot, they were putting the job out to bid. They would ask some of the biggest real estate firms in the country to put in a bid, and he hoped I’d be among them. I was astonished by this because I had spent a lot of time on my concept, and had explained it to them personally. Now I had to start over and bid like a newcomer to the project.
I felt miserable and a bit outraged by this turn of events. I’d basically be entering a public contest, which I didn’t think was necessary. I was wondering if they had just been humoring me all that time, even though they appeared to be interested and impressed with my ideas. What could I do? I was definitely interested, I’d already spent a lot of time and effort on this, so I finally swallowed my pride and decided to just go for it. I like challenges and this had become an even bigger one, not that I was happy about it. So I worked on a fantastic and detailed presentation. When I say put everything into what you’re doing, this was a good example.
It seemed like ages, but General Electric finally called to say they were going with me. Being chosen by this power group to develop this incredible site was wonderful news. Trump International Hotel & Tower would become a reality. It made all the aggravation of the process worth it. Dale Frey and John Myers at GE made it possible—they are great guys.
In 1995, we began to demolish the former Gulf & Western tower—only the steel structure would remain. I had Philip Johnson lined up as the architect along with Costas Kondylis & Associates, so we were assured of a spectacular as well as elegant building. Philip Johnson had designed the State Theater at Lincoln Center, which is only a few blocks away. This was an important building and I wanted the very best. That’s exactly what all of us got.
Trump International Globe
Trump International Hotel & Tower is now the #1 hotel in New York City. It includes Jean Georges Restaurant, which is acknowledged as one of the great restaurants of the world. The condominiums in the building stay on the market for a very short time. There are waiting lists for everything concerned with this building. It’s also the first time a hotel and condominium have been combined, which people now hail as an innovation. It wasn’t an innovation to me, just common sense. In fact, it’s an idea that is copied around the world today and with great success. So take the time to think things through.
Yes, the original building had major problems; yes, the approval process was confounding, but that was part of the challenge. It also provided me with a great opportunity. Sometimes you have to look a little harder to see those opportunities, but believe me, it’s worth it.
12
COURAGE ISN’T THE ABSENCE OF FEAR, IT’S THE CONQUERING OF FEAR
Courage means never giving up. It’s much easier to give up, and that’s exactly what losers do. Being knocked down is one thing—staying down is another. Some very ordinary people have accomplished remarkable things by simply being persistent and never giving up. Abraham Lincoln is a good example—his courage made him extraordinary.
On The Apprentice, the candidates must first go through a grueling audition process. There have been millions of applicants, and only a few people are chosen. Those aren’t terrific odds. That’s why I firmly believe that there are no losers on that show. The people who try out for the program show great courage to begin with. They are all winners. Being fired in front of millions of people isn’t easy, but that’s part of the deal and they persist anyway. Most of them say the experience was worth everything they put into it, whether they won or not.
Hemingway wrote the now familiar phrase, “Courage is grace under pressure.” Think about it. Some days we are faced with challenges that we’d rather not have to deal with, but we get up and deal with them anyway. That’s courage. It requires a certain poise. Maybe it’s not heroic, maybe every day isn’t going to bring a calamitous situation, but it’s an example of bravery that we can all understand.
Self-confidence is a component of courage that we all need. Sometimes we need a push in the right direction. I worked with a young executive who had never done any public speaking, so he decided he wasn’t any good at it. He told me so, and I thought to myself, “He hasn’t even tried public speaking, and he tells me he’s no good at it!” I had a feeling he’d be good at it. A few months later when I realized I wouldn’t be able to make a dinner engagement that included a short speech, I told him he’d have to step in for me. He told me, “I don’t do public speaking.” I said to him, “You do now.” End of conversation. Do you know what? He’s become an accomplished speaker. Courage isn’t the absence of fear, it’s the conquering of fear.
The phenomenon of stage fright is a good example. I read an article recently about how common stage fright is, even among professional actors. There are a lot of very accomplished and famous performers who deal with it regularly, sometimes for decades. They don’t let their fear get in the way of their passion. I’m used to speaking in front of tens of thousands of people, and I find it enjoyable, but I’ve often had people ask me if I get nervous. I don’t. I just go out and do it.
Winston Churchill was a great orator, but I read that he spent a lot of time developing this skill. He wasn’t a natural in the beginning, but he worked at it until he mastered it. He became a powerful and mesmerizing speaker. One of his most famous speeches during World War II included these words:Never, never, never, never, never, in nothing great or small, large or petty, never give in, except to convictions of honour and good sense. Never yield to force; never yield to the apparently overwhelming might of the enemy.
Churchill and his people were in danger of being bombed out and overrun by the German military when he said that. You might not be experiencing the blitz, but you can still apply those words of courage to your daily life. There are days when I have so many problems come at me at once that it can seem like the blitz. I don’t give in to them, and neither should you—ever!
Another important thing about courage is that it will help you think and act in the right way. It will help you focus on the opportunities in front of you instead of on the problems. Problems are often opportunities coming at us in packaging that isn’t what we expect or want. This has happened to me more times than I can count. So when I say I welcome problems, there’s a reason for it. Keep your mind flexible and open to creative solutions to your problems. Einstein said, “You can’t solve a problem with the same thinking that created the problem.” That’s a good way to avoid brain cramps as well as find a solution.
Back to courage. Remember that fear can be conquered. Know that you are capable of courage and that you are designed to succeed—that’s half the battle
. Then go full throttle, and the odds will be on your side.
13
BE PASSIONATE—IT’S THE ONLY WAY TO MOVE MOUNTAINS
Building Trump International Golf Club
When I decided to build my first golf course, I found a good piece of land near my Mar-a-Lago estate in Palm Beach and decided to go all out. I hired Jim Fazio, one of the all-time great golf course designers. When he told me he’d have to move over three million cubic yards of dirt to make the relatively flat land into a spectacular course, I didn’t blink an eye. I was excited about building my first golf course and ready to move mountains if necessary.
I did, however, wonder what I’d gotten myself into once again. Shortly after hearing the three million number, he told me it would be necessary to bring in over five thousand trees, and about a thousand royal palms, and over a thousand coconut trees. Then there would need to be about $2 million worth of little plants to make everything look well groomed. The water feature for one hole, number 17, would cost close to $3 million dollars and take about nine months to complete. This was going to be an 18-hole course. I almost started to worry.
Palm Beach
I knew Jim was giving me straight, well-thought out numbers for his work. His integrity is legend. This is simply how much it costs to get an extraordinary piece of work done, I told myself.
THE LOW POINT
I realized that my original $40 million estimate might be way too low. Is this what happens when a developer who specializes in skyscrapers turns to golf course development? Was I making a huge mistake? Should I have stuck with terrain that I knew more about already?
I’ve always told people to know what they were doing first, to do due diligence to the nth degree, to be cautiously optimistic. I suddenly found myself wondering why I didn’t heed my own advice. I was facing a lot of new issues where I wasn’t yet an expert. However, I was excited about the fact that we were building something outstanding, and that kept me going.
Jim Fazio often says that one of the great things about working with me is that I never asked him if we were spending too much money. Instead I’d ask, “Do you need anything else?” He said that attitude helped his creative process. I’m glad he thought that because in a big way that’s how it was. I have to admit that I had a few moments of doubts. Not big doubts, but doubts nevertheless.
For example, it took a solid year to move three million cubic yards of dirt and to transplant five thousand trees. This wasn’t fast going, but it was necessary, and it was painstaking work on Jim’s part. Then, the Department of Environmental Resources told us that only 50 acres could be cleared at a time, which required us to plan the course in seven sections. This also involved labeling all the trees and building a lake system. So it took a year before the golf course could even begin to be built.
Fortunately, I’m a patient man when it comes to things I care a lot about. I was very excited to have a spectacular course, and I realized that if this is what was required to have that, then so be it. I had made my decision, and I decided to stick with it. I also knew I had a real pro working for me. Jim Fazio’s reputation preceded him, and I could see for myself that he was totally reliable as well as genuinely passionate about his work. Was I expecting the impossible?
When you are faced with situations like these, it’s important to think about why you are doing whatever you’re doing in the first place. There are always going to be some problems, and if you can remind yourself of your original goal, it helps to clarify and shed light on any doubts you might be having. Having done that, I was reassured and ready to move forward.
Then I heard about the oak trees. One thousand of them. It took five months to move them in because each of them had to be wrapped and only three could be hauled in at a time. These oak trees were 20 to 40 feet tall each. They would line the fairways and would be worth it. I hoped.
It was around this time I heard about the gopher tortoises. This was definitely a new dilemma. I’m used to zoning problems, but tortoises? Sixty of them in fact. They had to be cared for, absolutely. We were entering their turf, and we wanted to make sure we found an equal or better environment for them. Safely relocating them became a priority. I learned a lot about gopher tortoises. For example, they have been known to dig burrows as long as 40 feet by 10 feet deep. Just imagine what that could do to a golf course! So while I admired the tortoises for their industry, they had to be carefully relocated.
After more than a year of meticulous preparation, the course was actually being built. Every hole was treated as if it was to be the culmination of a great course, and the end result is that the course is an absolute masterpiece. No other description does it justice.
That’s what I wanted, and that’s what I got. Every tree was worth the time and effort (and believe me, I know about each and every tree). An additional nine hole course was opened in 2006 to equal acclaim. It was been a resounding success on top of being an extraordinary achievement of design.
The success and beauty of Trump International Golf Club set me up for building more golf courses, and all of them have been highly praised and very successful. Each course came with its own set of challenges, but after tackling my first course, I was ready for them. Moving mountains? Moving tortoises? No problem.
COACH TRUMP
MAKE IT HAPPEN IN YOUR LIFE
My point to you is this: If you are passionate about your endeavors, it will be reflected back to you in your end result. Be sure to get the right people to work with you—Jim Fazio is as passionate about his work as I am and this becomes apparent when you see the scope and quality of the finished course. Overcoming tremendous obstacles is all in a day’s work—if you love what you’re doing. Remember that.
14
IF YOU SEE BIG PROBLEMS, LOOK FOR BIG OPPORTUNITIES
Transforming a Dilapidated Neighborhood into a World-Class Hot Spot
Today, Grand Central Station in New York City is beautiful, both as a sight as well as a site. It’s in a thriving, well-kept neighborhood. However, in the 1970s, it was a different situation altogether. The area was in the midst of serious decay. It was crummy, run down, and a destination point for no one except those entering and leaving the city as quickly as they possibly could. Who could blame them? If this depressing area truly represented New York City, I’d want to leave, too.
I’m a New Yorker. I love this city, always have and always will. So this situation merited my attention, and the opportunity, as I saw it, was not just to turn an old hotel into a shiny new one, but to bring up the neighborhood at the same time. It’s that “think big” attitude that I have. Why do one thing when you can accomplish two or more at the same time?
The old Commodore Hotel next to Grand Central was in big trouble. It was a disgraceful sight. The people passing by were on their way to good jobs, coming from good homes and they would continue this daily trek unless the city folded up and went goodbye, which wasn’t likely to happen. I knew that the neighborhood was ready for change, and acquiring the Commodore Hotel became a quest.
Even my father couldn’t believe I was serious. He said “buying the Commodore at a time when even the Chrysler Building is in bankruptcy is like fighting for a seat on the Titanic.” He knew it was a risk and so did I. The flip side was that I knew it was a way to get the city to flourish the way it should. I’d be creating jobs and improving the neighborhood, for starters. I wanted it to be beautiful, and that gave me incentive to get through all the problems and negativity surrounding this project. That’s a good thing to keep in mind—use your mind to visualize how things might be, as you go along. That can make the plethora of details and setbacks just a part of the plan.
About nine months before I was seriously into negotiations for the hotel, the owner—Penn Central Railroad—spent about $2 million in renovations that had no impact whatsoever. The hotel needed far more work. Six million dollars was owed in back taxes. It was not a pleasant situation for the owners, and they were ready to get out. Before I could pur
chase the hotel for $10 million, I had to structure an extremely complex deal with other interested parties. I needed a tax abatement from the City of New York, commitment from a hotel company with experience running hotels, and financing. This was complicated stuff and it took several years to negotiate everything.
At one point, Penn Central wanted me to pay a nonrefundable $250,000 for an exclusive option on the property. I had to stall on that. That was a lot of money for an obviously risky situation. In order to remain in the process but to have more time, I had my lawyers nitpick the contracts and slow everything down.
Meanwhile, I looked for a designer who had what it took to make a spectacular building. One young architect named Der Scutt that I contacted was immediately interested. He understood that I wanted to change the dingy hotel completely, to basically wrap it in something new and shiny and give the whole area a new face.
Note that I wasn’t sure this deal was even going to go through, but because my goal was so clear in my mind, I went ahead and took the time to meet with an architect, as if the project was a done deal. That’s positive thinking, but also pragmatic thinking—keep things moving forward! If one thing doesn’t work out, another will. Meantime, I will have met and connected with an architect that I respected and who respected me. If this deal fell through, I’d already know someone to reach out to for the next big project.
I hired Der Scutt to do some drawings and asked him to make the presentation look as sleek as possible. I also started to look for an operator for the hotel. The hotel business was new to me at the time, so I needed to find someone with experience, a lot of it, because my proposal was for a 1,400-room hotel with 1.5 million square feet. That’s big.
Trump Never Give Up Page 5
