Five New York City Properties that Donald Trump Has a Stake in Could Owe Millions in Penalties Over the Next Decade
Properties and Penalties
Five New York City properties that Donald Trump has a stake in could collectively owe millions in penalties over the next decade if they fail to comply with the landmark building emissions law. The properties include Trump Tower, 1290 Avenue of the Americas, 40 Wall St., 4 to 10 East 57th St., and 1240 Avenue of the Americas.
The Law
Local Law 97 (LL97) requires owners of properties larger than 25,000 square feet to reduce their carbon footprint. The law covers 60 different property types, from supermarkets to offices to multifamily buildings. The amount at which they are allowed to pollute becomes more stringent over five compliance periods, from 2024 through 2050.
Potential Fines
According to the Building Energy Exchange’s projected penalty calculator, Trump Tower could owe nearly $58,000 a year in fines starting in 2030 if changes aren’t made. The Trump Organization’s website says the tower is "one of New York City’s most distinguished office buildings in midtown." However, if the site doesn’t reduce its carbon footprint, it could be fined over $835,000 a year between the 2030 and 2039 compliance period.
Who Will Be Picking Up the Tab?
Former President Trump owns a 30 percent stake in 1290 Avenue of the Americas. If the site doesn’t reduce its carbon footprint, it could be fined over $835,000 a year between the 2030 and 2039 compliance period. For the purposes of Local Law 97, Trump would be viewed as the owner of this building because he owns a ground lease.
Other Properties
In the two properties included in the AG’s case where Trump is listed as owning a ground lease, he would be viewed as the owner and would therefore be responsible for covering any potential LL97 fines. For the three other properties, Trump either has a stake in the whole building or owns units and space within condominium buildings.
What Now?
Whether Trump will make the upgrades necessary to comply with the law moving forward remains to be seen. Environmental groups say legislation introduced earlier this year could threaten to gut the law, and they fear potential loopholes in the regulations could give landlords an opportunity to bypass compliance.
Conclusion
The DOB says it’s devoted to seeing the law through, and experts warn that not letting the law play out and fulfill the intended purpose of reducing the city’s carbon footprint will have massive consequences. "Without Local Law 97 there is no way this city will reach its climate goals because 70 percent of all carbon emissions in New York City are tied up in buildings," said John Mandyck, CEO of the decarbonization research hub Urban Green Council.
FAQs
Q: What is Local Law 97?
A: Local Law 97 is a landmark building emissions law that requires owners of properties larger than 25,000 square feet to reduce their carbon footprint.
Q: What are the potential fines for non-compliance?
A: According to the Building Energy Exchange’s projected penalty calculator, properties that fail to comply with the law could owe millions in penalties over the next decade.
Q: Who is responsible for paying the fines?
A: The owners of the building are responsible for paying the fines. In cases where Trump owns a ground lease, he would be viewed as the owner and would therefore be responsible for covering any potential LL97 fines.
Q: What is the purpose of Local Law 97?
A: The purpose of Local Law 97 is to reduce the city’s carbon footprint and help New York City reach its climate goals.
