New York City to Terminate Trump Organization Contracts

U.S. President Donald Trump has steadily created a new reputation for himself in recent times. Following, events from immediate past and recent times, Trump’s relationship with New York City and the US has been on a sharp decline.

The outgoing President’s name was removed from private properties. He often referred to New York as an “anarchist jurisdiction”, and changed his legal residency to Florida. The city finally announced that it would end all its contracts with the Trump Organization, after the President incited the riot at the U.S. Capitol last week, according to New York City Mayor Bill de Blasio.

“I’m here to announce that the city of New York is severing all contracts with the Trump Organization,” de Blasio said in an interview, on Wednesday. “Inciting an insurrection – let’s be very clear, let’s say the words again – inciting an insurrection against the United States government clearly constitutes criminal activity.”

A city has the right to legally terminate any contract if the leadership or management of a company is found guilty of criminal activity. De Blasio said the city does not support the riot incited by the President and it was taking immediate steps to disassociate itself with the Trump Organization.

The Mayor said The Trump Organization earns as much as $17 million annually in profits from its contracts to run a gold course in the Bronx, two ice skating rinks, and a carousel in Central Park. The terminations for the golf course and skating rinks will take effect 30 days after the notices are issued, while the termination of the carousel will go into effect 25 days after notice.

The Trump Organization responded to the terminations as a “political discrimination” they intend to fight in court.

“The City of New York has no legal right to end our contracts and if they elect to proceed, they will owe the Trump Organization over $30 million dollars,” said a company spokesperson. “This is nothing more than a political discrimination, an attempt to infringe on the First Amendment and we plan to fight vigorously.”

Other organizations have also made moves to disassociate themselves from President Trump and the Trump Organization after the attack on the Capitol last week. On Sunday, the PGA canceled its plans to hold its 2022 championship at the Trump golf course in Bedminster. Several banks, credit card, and financial tech companies have stopped processing all payments and funds linked to the Trump campaign.

De Blasio earlier said that the city was carefully examining its legal options to terminate all its contracts with the Trump Organization. He added that city lawyers were certain that if President Trump sues over the move; the city would surely win.

“Trump incited a mob to attack the Capitol, de Blasio said. “The lawyers looked at it and it was just as clear as a bell that’s grounds for severing these contracts and we’re moving to do that right away.”

The head of the city law department, Jim Johnson said that the PGA’s decision to disassociate from the Trump Organization gives the city more grounds to terminate the golf course contract.

“One of the reasons that he was given the contract was his ability to attract major golf tournaments,” Johnson said. Adding that the city is “entitled to” and is invoking its right to declare Trump in default.