Shock and outrage as White House says next G-7 summit will be at Trump property


There was widespread today my Mick Mulvaney announced that Donald Trump was in fact going to force the US government and other major governments around the world to pay money by hosting the g seven corral golf resort next year is the Washington Post puts it quote that decision is without precedent in modern American history. The president used his public office to direct a massive contract himself but here's the thing Durell could really use it we're bringing someone who knows more about trump's other business interests than just about anyone he's reporting on all the best three years on a Pulitzer for his invested into the President David Farren hold is great to have you here David let's start with the significance of Durrell which unlike some other properties it's not licensed it's it's it's real directly part of the presence main business holdings correct it is basically the keystone of Donald Trump's entire hospitality Gulf hotel business it produces more revenue for him every year than any hotel or golf course and he has one of its biggest loans on if you were to pick one property the donald trump's financial health dependent on this would be it very levered I mean he's got he owes people money on it he was don't you bank the original one was for one hundred twenty five million dollars to Deutsche Bank it's one of his biggest loans now you tweeted about how it's been doing and the vacancy rate typically in the summer you said the summit will be held in June Miami's hot drills usually emptying 2017 only thirty eight percent rouse rooms were occupied this is one of derails worst month so you're bringing a huge amount of business to resort at a time that is over all not doing very well financially but you're bringing it to this resort at a time when it needs that money the most as you saw Durell June is the second slowest month for Durell only August is worse they're occupancy rate is under forty percent so even if trump just charged the cost which we have no idea if he's going to but even if he didn't try to make a profit on each individual room he's filling the resort at a time it'll be mostly empty rats are great point you also noted that it has not been doing well recently this is not this is not a facility that is on the upswing no in the opposite we got some data that the trump organization itself provided to Miami Dade County that shows that between Twenty fifteen and twenty seven uh-huh span of just two years net operating income dropped seventy percent at this resort that's a huge drop at a time when every other resort in Miami is basically doing the same and the reason we saw video where a representative from the trump organization was talking to the county about why it was doing poorly in she laid the blame directly on trump she said the brand is doing really that's why this place is severely underperforming so you've okay so you've got the crown the crown jewel of his enterprise the brings in the most revenue at a time when it is vacancy rate is under four eight percent and at a time when the revenue and and use of the place the prophet is going down because of the negative brandon impacts of his presidency and what does this mean g seven's a big deal right like a lot of money is going to get spent there just to give you a sense of the scale of this thing I talked to somebody who had planned the last g seven that the US had at a private event which was in two thousand and four in Georgia they served forty five thousand meals during that week they took over this resort for ten days they pay three million dollars in two thousand and four money it's hundreds of people thousands of people that can't even allstate draft to stay at other places but you're talking about an enormous event between security diplomats journalists and the leaders themselves there's also there's also been some health problems at Toronto Daily Be Story from twenty one thousand nine about a rat infestation problem and route situation it has it has had some challenges well this year has been a good year for them they haven't had any any health code violations that's good news and our leaders who will be staying there and hopefully not norovirus but they have had in years past not that long ago they've had problems with the health code called euphemistically small live flying insects insects and other kinds of cleanliness issues in a number of kitchens at Durrell is there any I mean how how is this legal I mean honestly if anyone who's ever out there watching has ever interacted with federal contracting you know that it is one of the most common me that just complicated a legal thicket and incredibly complex process there are thousands of people throughout the government who work on it this seems to fly in the piece of every single policy there is for federal contracting but that's what's interesting about this is one of the few things which by tradition the didn't get to eat to circumvent the entire contracting process they don't put out a request for proposal evaluate bids the president sort of does this secret and then the White House just chooses a place this is Tom was never designed with the idea that the president might choose his own place so this is a case for trump has sort of unfettered unrestricted power to give the contract to whoever he wants and holy gave it to himself we'll see now in the next few weeks hopefully it'll be a little more transparency about what it looks like but they're going to be any scrutiny on the front end my favorite Presley it was a tr- Presley's I blink quoting trump from the trump works and they were honored that they were selected for this which is a really incredible piece the use of language David well thank you as always for your fantastic

Coming up next