Page 66 - How To Get Rich

My idea was to transform the Commodore into a state-of-the-art hotel.
I had a six-point plan:
1.
Buy the land from the railroad.

2.
Induce the railroad to use the purchase price to pay the City of New
York the back taxes it owed.
3.
Convince a New York State agency with the power of eminent domain
to accept a deed to the land to condemn all existing leases.
4.

Persuade the city to accept a fixed rental and a share of the profits in
lieu of taxes.
5.
Find a big hotel operator to join me in the project, since I had no hotel
experience.
6.

Convince a bank to loan me $80 million to build the hotel.
When I first told my lawyer, George Ross, of my plans, he told me I
was crazy to attempt something so bold in such a bad economic
environment. I told him I was determined to get it done. He agreed to help.
For two years, I stuck to my guns. Eventually, it paid off.
The railroad sold me the land for $12 million and used the money to
pay the city its back taxes.

The Urban Development Corporation accepted the deed to the land and
agreed to condemn all existing leases, provided I would pay all damages to
the displaced tenants.
The city agreed to the lease from UDC with a fixed rent and a share of
the profits.

Hyatt became my partner in the deal and funded half of it.
I got a loan from the Bowery Savings Bank to cover the cost of
acquisition and construction.
The hotel became the Grand Hyatt.
The fact that I was stubborn and had achieved a result others deemed
impossible jump-started my career as a developer.

Be Patient