by Sharon Rondeau
(Oct. 3, 2023) — On Tuesday, constitutional activist and P&E reader Robert C. Laity sent the results of a “discussion” he had with Bing AI (Artificial Intelligence) on the value of Mar-a-Lago, a Palm Beach, FL resort belonging to 45th President of the United States Donald J. Trump, who is also the current leading Republican contender for the 2024 nomination.
Valuation of the property took a front-and-center position as on Monday Trump attended court in Manhattan in a civil case brought by New York Attorney General Letitia James accusing the Trump Organization, its executives and Trump personally of over-valuing many of his New York-based properties and Mar-a-Lago, thereby allegedly defrauding the financial institutions which issued loans to the company.
Trump, who returned to court Tuesday morning, has defended his organization’s stated valuations of the properties as lower than actual and accompanied by a prominent disclaimer advising lending institutions to perform their own due diligence. On TruthSocial Tuesday, Trump claimed his Florida resort to be worth as much as $1.5 Billion rather than the $18 million the judge in the case, New York Supreme Court Justice Arthur Engoron, was apparently told by James.
“Judge Engoron has been given false and grossly misleading information about my Net Worth by a lying and incompetent Attorney General, such as Mar-a-Lago being worth $18,000,000 when in fact the number would be much closer to 1.5 Billion Dollars, like other properties, including two that were recently sold for numbers many times those that were listed in the Financial Statements,” Trump wrote. “The N.Y.S. Attorney General, therefore, committed FRAUD for Political and Election Interference reasons. This case should therefore be dismissed!”
As Trump has reminded his followers numerous times on TruthSocial, James campaigned for her current position on a platform of prosecuting Trump for then-unidentified crimes and civil violations. While the Trump Organization remains New-York based, after decades in the city Trump in 2019 declared his legal residence to be Florida.
Upon departing the White House on January 20, 2021 after a highly-contentious election, Trump and his family took up residence at Mar-a-Lago, spending the summers at his golf resort in Bedminster, NJ.
Prior to the now ongoing trial, Engoron ruled the Trump Organization should lose its business certificates as a result of the alleged “fraud.” According to CBS News on September 26:
The ruling came in response to a request by New York Attorney General Letitia James seeking judgment on one of the claims in her $250 million civil lawsuit, which is scheduled to go to trial on Oct. 2. Judge Arthur Engoron agreed in his ruling with James’ office that it is beyond dispute that Trump and his company provided banks with financial statements that misrepresented his wealth by as much as $3.6 billion.
“The documents here clearly contain fraudulent valuations that defendants used in business,” Engoron wrote in his ruling, in which he ordered the defendants’ New York business certificates canceled. He ordered that within 10 days, they must recommend potential independent receivers to manage the dissolution of the canceled LLCs.
According to Reuters, Engoron has often presided over cases involving “ordinary commercial disputes.” “Two of Engoron’s higher-profile earlier rulings also concerned real estate, though both rulings were later overturned,” the outlet reported Monday.
Of Trump’s history at Mar-a-Lago, Wikipedia states:
Trump acquired Mar-a-Lago in 1985 and used the 126-room, 62,500-square-foot (5,810 m2)[1] mansion as a residence before 1994 when he converted it into the Mar-a-Lago Club, a members-only club with guest rooms, a spa and other hotel-style amenities…
Donald Trump learned about the estate after unsuccessfully trying to purchase and combine two apartments in Palm Beach for his family. He offered the Post family $15 million for it, but they rejected it. Trump purchased the land between Mar-a-Lago and the ocean from Jack C. Massey, the former owner of KFC, for $2 million,[23] stating he intended to build a home that would block Mar-a-Lago’s beach view. The threat caused interest in the property to decline, and Trump ended up getting the property for $7 million in 1985.[24][19] Different sources have put the combined total cost of the purchase at around $10 million.[25][26][27] The minimum acceptable bid had been $20 million, and the interior furnishings were appraised at $8 million.[28]
After purchasing the estate, Trump did extensive renovations, adding a 20,000-square-foot (1,900 m2) ballroom.[20] The club also has five clay tennis courts and a waterfront pool. His wife at the time, Ivana Trump, was put in charge of running the property.[29]
Laity has reported previous engagements with Bing AI published here, here and here. The transcript of the latest exchange appears below.
User
what is the fair market value of mar-a-lago?
Bing
The fair market value of Mar-a-Lago seems to be a subject of debate. According to a 2023 market appraisal report by the city of Palm Beach, the total value of the property is $37 million. However, real estate insiders have suggested that if the property were on the market today, it could be listed at around $300 million. Another seasoned real estate agent suggested a conservative estimate of $450 million. Forbes estimated the market value of Mar-a-Lago to be $325 million in April 2023. Please note that these are estimates and the actual market value can vary..
User
Who owns Mar-a-Lago?
Bing
Mar-a-Lago is a resort and National Historic Landmark in Palm Beach, Florida. It has been owned by Donald Trump since 1985. However, a recent search indicates that the current owner of Mar-a-Lago is a company called Mar-a-Lago, Inc., and the owner of the company, as well as its registered agent, is Donald Trump Jr., the ex-president’s oldest son.
User
How big is Mar-a-Lago?
Bing
Mar-a-Lago is a vast 17-acre estate located in Palm Beach, Florida. The mansion itself is 62,500 square feet (5,810 m²) and contains 126 rooms. This includes 58 bedrooms, 33 bathrooms, and a 20,000 square-foot ballroom decorated with gold leaf. The estate also boasts 12 fireplaces, five tennis courts, and other amenities like a spa. The living quarters of Mar-a-Lago are speculated to be somewhere between 2,000 and 3,000 square feet.
Bing
Mar-a-Lago size
User
Is “18 Million dollars” a reasonable assessment of the value of this property?
Bing
Based on the estimates I found, a value of $18 million seems to be significantly lower than the recent appraisals and estimates for Mar-a-Lago. The city of Palm Beach’s 2023 market appraisal report valued the property at $37 million. Real estate insiders have suggested that if the property were on the market today, it could be listed at around $300 million. Another seasoned real estate agent suggested a conservative estimate of $450 million. Forbes estimated the market value of Mar-a-Lago to be $325 million in April 2023. However, real estate values can fluctuate based on a variety of factors, so it’s always best to consult with a professional for the most accurate assessment.
User
Is the Judge in the lawsuit against Trump in NY City abusing his authority by placing an arbitrary appraisal price of 18 Million dollars on Mar a Lago?
Bing
The judge in the lawsuit against Trump in New York City, Justice Arthur Engoron, ruled that Trump committed fraud by falsely valuing multiple of his properties, including Mar-a-Lago. The New York attorney general’s lawsuit alleges Trump’s Mar-a-Lago property in Florida was valued “as high as $739 million based on the false premise that it was unrestricted property and could be developed and sold for residential use,” and continues, “in reality, the club generated annual revenues of less than $25 million and should have been valued at closer to $75 million.”
However, it’s important to note that judges in legal proceedings are tasked with making decisions based on the evidence presented to them. If there is a dispute about the valuation of a property, it would typically be resolved through expert testimony or other forms of evidence. The judge’s role is to evaluate this evidence and make a ruling based on the law.
As for whether the judge is “abusing his authority,” that would be a matter for legal experts to determine. It’s also worth noting that decisions made by a judge can be appealed if one party believes there has been an error. In this case, Eric Trump has claimed that the judge undervalued Mar-a-Lago in his ruling.
Please note that this information is based on available public records and news reports. For a full understanding of the situation, one would need to review all the legal documents and evidence associated with the case.
User
Isn’t it a fact that a charge of over valuing property in Florida should be in a court IN Florida?
Bing
Under Florida law, venue rules are prescribed by statutes, which provide for the appropriate county to file a lawsuit. Fla. Stat. § 47.011 provides that “actions shall be brought only in the county where the defendant resides, where the cause of action accrued, or where the property in litigation is located. However, it’s important to note that jurisdiction and venue can be complex legal issues that depend on a variety of factors, including the nature of the lawsuit, the location of the parties involved, and the specific facts of the case. Therefore, while it might seem logical for a case involving property in Florida to be heard in a Florida court, there could be other factors at play that would make a different venue appropriate. For a full understanding of these issues, one would need to consult with a legal expert.
User
Mar a Lago is far more valuable than 18 Million dollars.
Bing
I agree with you. The estimates I found suggest that Mar-a-Lago is valued significantly higher than $18 million. For instance, the city of Palm Beach’s 2023 market appraisal report valued the property at $37 million. Real estate insiders have suggested that if the property were on the market today, it could be listed at around $300 million. Another seasoned real estate agent suggested a conservative estimate of $450 million. Forbes estimated the market value of Mar-a-Lago to be $325 million in April 2023. However, real estate values can fluctuate based on a variety of factors, so it’s always best to consult with a professional for the most accurate assessment.
User
Thank you Bing.
Bing
You’re welcome! If you have any other questions, feel free to ask. I’m here to help! 😊
A couple of observations.
First, both the defense and the OAG provided the judge with valuations of Mar-a-Lago. The OAG used the 2011 assessed value from Palm Beach County’s assessor. Trump presented an affidavit from a Palm Beach Real Estate Broker Lawrence Moens. Mr. Moens presented his opinion on the value Mar-a-Lago. but he failed to provide any foundation for that opinion. Judge Engoron points out that an expert opinion that is based on only his opinion or speculation has “no probative” value and cannot “withstand summary judgement.” As Bing AI points out “judges in legal proceedings are tasked with making decisions based on the evidence presented to them.” Since the only valuation available to Judge Engoron is the OAG’s, it was the only one he could use.
Second, the use of Mar-a-Lago (and the other Trump properties discussed) does not make this a Florida case because the Trump Organization is a New York based company.
Third, the value of Mar-a-Lago must be adjusted by the fact there are considerable deed restrictions that limit it’s use as anything other than a private club. Judge Engoron lists the restrictions in his decision.
Judge Engoron’s decision can be read here:
https://int.nyt.com/data/documenttools/trump-judges-ruling/ce6de7d636227e1b/full.pdf
If it’s helpful, the judge cited Palm Beach County Property Appraiser valuations putting the property at between $18 million and $28 million, depending on the year, from 2011 to 2021. That’s where the $18M came from. It was an official appraisal, not the judge’s estimate. As Mr. Laity notes, it’s worth much more, an appraisal and a market value aren’t the same thing. That will come out at trial.