By Peter Woodifield
Sept. 22 (Bloomberg) -- Donald Trump offered four Scottish homeowners more for their properties as the entrepreneur tries to capture land for the 1 billion-pound ($1.63 billion) golf resort he plans to start building this year.
None has accepted the improved offer, Donald Trump Jr., vice-president of development at his father’s company, said in a telephone interview today. The company has about six months to reach an agreement to ensure it can start building houses at the resort within two years, he said.
“We are continuing the conversations; some have gone better than the others,” said Trump Jr., 31. “We can delay temporarily but it can’t be indefinitely.”
Trump senior, 63, plans to build two golf courses, a 450- room hotel, 500 homes and 950 short-term rental apartments on the 1,400-acre (567 hectares) Menie Estate north of Aberdeen. The original development was the subject of a 2008 public inquiry when the Scottish government intervened after Aberdeenshire Council rejected the original application.
David Milne, whose four-bedroom house, Hermit Point, is a former coastguard station, rejected a price of 230,000 pounds, he said in a telephone interview today. He turned down a bid of 175,000 pounds three years ago.
“The offer is of no interest to us as our home is still not for sale,” said Milne, 45. “Even if I was minded to accept, there is no incentive to sell with this offer.”
Building Houses
Should talks fail over the next six months, the Trump Organization would have to ask Aberdeenshire Council to agree to compulsory purchase orders, Trump Jr. said.
The four had been offered a premium of 15 percent over the value of their homes, based on advice from local appraisers, he said. In addition, they would get free lifetime use of all the facilities at the new resort, he said.
They were also offered the opportunity to buy one of the new houses at cost, according to Trump Jr. “We’re trying to do this amicably,” he said.
Trump can apply to the council for compulsory purchase orders should the landowners continue to refuse to sell. The New York investor wants to buy five plots of land that weren’t included in the original planning application.
The Aberdeenshire municipality may look at a proposal at its Oct. 1 meeting to ban the use of compulsory purchase orders for commercial developments, said council spokesman Gordon Lyon. A decision on whether the motion will be debated and voted on will be taken later this week, he said.
Trump Jr. said he had asked the municipality to delay taking a decision on the issue as talks are still continuing.
The Trump Organization hopes to reach agreement with the municipality to enable it to start building the first golf course on Nov. 1, he said.
To contact the reporter on this story: Peter Woodifield in Edinburgh at pwoodifield@bloomberg.net.
Last Updated: September 22, 2009 10:39 EDT
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