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The Ambassador Hotel, a landmark in the glitz and glamour heydays of L.A., is preparing for a final thrust into the limelight with a showdown in court this fall between the Los Angeles Unified School District and Trump Wilshire Associates, the real estate heavyweight that purchased the 23-acre site in 1989.
Although a court date hasn't been set, both sides say a jury trial should begin this fall to determine the "fair market value of the property."
"What it's going to come down to is what 12 people in a box are going to say about the numbers floating by them," said Bob Niccum, director of facilities planning and real estate for L.A. Unified, which filed a condemnation suit to wrest control of the property.
The school district, which exerted its authority to condemn a property for public use--in this case a high school--deposited $48 million with the court in August 1990 to purchase 17 acres.
Under state law, public agencies can take needed private property, provided they pay fair market price.
A year ago a spokeswoman for Trump Wilshire Associates said the property was worth in excess of $200 million, but the group is now seeking $120 million, said Kevin Brogan, an attorney for the group.
In 1989, at the height of the real estate market, Donald Trump, along with real estate heavyweights from Europe, purchased the Ambassador site for $63 million.
"I don't know how they (Trump Wilshire Associates) are going to get the numbers they want," said Rich Mason, special counsel for L.A. Unified. "The entire property sold for $63 million. How could a portion be worth more than $60 million?"
Mason said the school district had two appraisals done and went with the highest one before depositing $48 million.
Brogan said Trump Wilshire Associates is supplying two appraisals in court, both between $120 million to $124 million. He said Trump Wilshire is asking for $115 million for the acreage and $9 million in severance damages.
Despite all...