Trump Tower developer: "I was never that good at math"

Some random quotes and thoughts from a bankruptcy hearing on Friday for developers of Trump Tower Tampa. It was a 52-story luxury condo tower that local guys planned to build under license from Donald Trump. Developers owe creditors close to $40-million, debt that likely will deal the project a fatal blow:

1. Project head Frank Dagostino, who made his money in medical publishing before he lept into large-scale development, struggled through the hearing to provide exact numbers: A million dollars here, a million dollars there. At one point he referenced needing a calculator.  "I was never that good at math," he said, admitting later he never did day-to-day accounting for the tower. Once, when rifling through a list of creditors to answer a question from the bankruptcy trustee, Dagostino observed, "Geez, lots of pages."
2. Condo buyers remained remarkably patient, despite a couple snickers from the two dozen creditors and their representatives in attendance. I'd be less generous after losing $250,000 or more. Just goes to show that the housing boom made a lot of true believers. Condo buyer David Kim, a professor of finance in real life, said he bought a unit on trust. "From now on I'll ask questions," Kim said. Good idea, Professor Kim.
3. Dagostino vowed to pay off his creditors before repaying himself. "I don't intend to get 1 dime until everyone gets paid," he said. Dagostino estimated he's owed about $100,000, part of the compensation he never received as president of the development company.  Mighty nice of him. Lots of creditors haven't been paid for years.
4. Plans to resurrect the project as a condo-hotel seem about as realistic as expecting Barack Obama and John McCain to have a Nerf bat fight atop the Empire State Building. Dagostino suggested using Trump Tower's architectural plans with a redesign of the interior. But the "suitor" mentioned by Dagostino, smelling desperation, is clearly in a low-balling mood. Dagostino expressed unhappiness about the offer price. Nor has Donald Trump agreed to any new deal. In fact, despite the bankruptcy filing, Trump is pushing forward with a lawsuit against Dagostino for unpaid royalties. Expect the building site to be auctioned to pay off creditors, a possibility Dagostino and his lawyer themselves raised. 

Comments

[Fuzzy Bear]

I believe you can sum up all four points with two words.

GREED and HYPE!

"From now on I'll ask questions," Kim said. Good idea, Professor Kim.

Sounds like Professor Kim need more education on finance and the forming of economic bubbles. Then again, Greed and Hype often clouds a persons better judgement.

[Tino]

Clarence, you should call SimDag and Father Barney. They need the help.