Trump Plaza's developer hits $$$ 'bumps' for 2nd tower

The developer of Trump Plaza in Jersey City has defaulted on a construction loan for the waterfront project's second tower, sending a bank after him for over $13 million.

Not to worry, says the developer, Dean Geibel of Hoboken-based Metro Homes LLC. He said he is working on refinancing the $24 million loan, and the 50-story, 418-unit highrise will still get underway some time next year.

Geibel stressed that the default does not reflect Trump's own financial situation, since Trump's involvement is limited to a licensing agreement allowing the use of his name.

"This is not really about Donald Trump, it's about Metro Homes," Geibel said.

Capital One filed the complaint against Geibel in state Superior Court in August, seeking to enforce a guarantee by the developer to pay back at least $11 million by January 2008. The loan, backed by the property on which the tower will be built, was signed in January 2006.

Asked about the complaint, Geibel attorney Leo Leyva wrote in an e-mail: "We are in complex negotiations with a number of parties in an effort to resolve the outstanding issues which many real estate developers are currently facing."

He added that the action should not have been filed because the guarantee is "only effective in the scenario that the real estate was worth less than the indebtedness, and that is clearly not the case."

Capital One's complaint said that as of Aug. 5, Geibel owed almost $2.3 million in late fees, attorney fees and interest payments in addition to the $11 million guarantee, with another $8,667 being tacked on each day.

He said he still has a "good working relationship" with the bank and is looking to add a partner to help with financing the second building, which will cost around $150 million and take about two years to finish. "We just hit a couple bumps along the way," Geibel said.

He said the first Trump Plaza building has been "very successful," with 375 of its 444 units sold.

Original Story NJ.com