Donald Trump's company has completed the purchase of a once-contested piece of property in Rancho Palos Verdes near the ninth and 10th holes of Trump National Golf Club.
Trump's VH Property Corp., which runs the seaside golf course, today completed its payment of $4 million to the Palos Verdes Peninsula Unified School District for an 8.5-acre piece of property refered to as the "Loma del Mar" site.
The payment was part of the terms of a settlement reached in 2004. The agreement, which came after Trump's company sued the school district, required $200,000 in rent for five years and then a $4 million purchase.
Press releases from the school district and Trump follow.
Issued Monday (despite the date) by VH Property Corp.:
Donald J. Trump Announces Closing of Purchase of $4 Million Parcel from Palos Verdes Peninsula Unified School District
New York, New York, June 30, 2009 - Donald J. Trump announced today that Trump National Golf Club - Los Angeles has paid $3.6 million in cash to the Palos Verdes Peninsula Unified School District, which represents the balance of a $4 million total purchase price. Pursuant to California law, the funds are to be used to improve the quality of the district's 11 elementary, 3 intermediate and 3 high schools.
The funds were delivered to the District today in exchange for a parcel of land that the District leased to Mr. Trump since 2002, and for which he paid over $1 million in rent. During the lease term, Mr. Trump employed numerous students from the District and allowed teams from high schools within the District to practice regularly at Trump National free of charge.
Mr. Trump said: "I am proud that the proceeds from this significant purchase will support the students, teachers and families of the Palos Verdes Peninsula Unified School District. I am pleased to announce that I will continue to provide free practice and tee times to the high schools' golf teams and by employing students from the District at Trump National. Each of these decisions has been made with the children in mind."
Issued today by PVPUSD Superintendent Walker Williams:
On behalf of the Palos Verdes Peninsula Unified School District Board of Education, I would like to thank Donald Trump and VH Property Corporation for the successful completion of the sale of
the Loma del Mar site.
For the past five years, the district has leased the Loma del Mar site to VH Property Corporation for use as part of the Trump National Golf Course. The property itself was unsuitable for school
construction.
Under the terms of the 2004 settlement agreement, the district received $200,000 a year for a total of $1 million in ground rent over the past five years. At the end of the five year period, VH
Property Corporation was obligated to purchase the property for $4 million.
In order to finalize the purchase of the property, the parties opened escrow during the first week of June. The sale was finalized on June 30, 2009, and $4 million was transferred to the District
account.
Under California law, the proceeds from the sale of property can only be used for construction and other capital improvement projects. The successful completion of the sale of this property will benefit students in our community for many years to come through new classrooms, science labs, and other construction projects.
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