Democrats say Obama administration agrees: Trump must sell D.C. hotel
WASHINGTON – Congressional Democrats led by Rep. Elijah Cummings of Maryland say Obama administration officials have informed them that President-elect Donald Trump will need to divest his interest in his D.C. hotel before being sworn in to avoid breaching the terms of his lease with the government.
Aside from public stocks, Trump has resisted calls from ethics officials to sell stakes in his businesses, saying that he plans to let his children Don Jr. and Eric run them. He added this week on Twitter that “no new deals will be done during my term(s) in office.”
But in the case of his D.C. hotel, the terms of his deal may force him to sell. His firm leases the Old Post Office Pavilion, the federally owned building where the hotel is located, from the General Services Administration on a 60-year deal.
Despite Trump’s recent vow to separate himself from his businesses once he takes office, he may still run afoul of a clause in the lease barring any “elected official of the Government of the United States” from deriving “any benefit” from the agreement.
Congressional Democrats have been pressing the Obama administration on that issue, as well as the possibility that by renting rooms to foreign leaders there Trump may be in violation of the “emoluments clause” of the Constitution, which bars U.S. officials from benefiting from foreign gifts, upon entering office.
After Cummings and Reps. Peter DeFazio of Oregon, Gerald Connolly of Virginia and Andri Carson of Indiana, all Democrats, wrote GSA Administrator Denise Turner Roth recently seeking answers, they say they were briefed by Roth’s deputy for public buildings last week.
In a new letter Wednesday, the Congress members write that the official “informed our staff that GSA assesses that Mr. Trump will be in breach of the lease agreement the moment he takes office on January 20, 2017, unless he fully divests himself of all financial interests in the lease for the Washington D.C. hotel.”
They say the official “made clear that Mr. Trump must divest himself not only of managerial control, but of all ownership interest as well.”
Officials for the GSA and the Trump Organization, as well as for Trump’s transition team, did not immediately respond to requests for comment.
According to the financial disclosure form he filed with the Federal Election Commission as a candidate, Trump owns 76.725 percent of the D.C. hotel project. Three of his children, Don Jr., Ivanka and Eric, each have 7.425 percent of the project.
There is a provision in the federal lease allowing Trump to sell or transfer his stake in the hotel to “any Trump Family Member.” Selling it to an outside entity would likely require approval by the GSA.
Some of the Obama administration’s options may be limited because that clause would not go into effect until Trump is sworn in, leaving the issue to his own administration; he will not technically be in breach of his lease until he himself takes office.
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Keywords: capbiztopnews, Donald Trump, Elijah Cummings
AP-WF-12-14-16 1526GMT