Donald Trump successfully used EB-5 for a New Jersey project and is hoping to do the same in Texas
What do presidential candidates Donald Trump, Hillary Clinton and China’s richest man all have in common? They all have an interest in America’s EB-5 investor visa program.
Trump has lent his name and his marketing appeal to a new Texas hotel to raise funds in China via EB-5 for a $130 million project in Austin, the state’s capital. Slightly further north, billionaire Wang Jianlin’s Wanda Vista Tower project in Chicago is also leveraging the dollars for visas program. Meanwhile, Clinton’s brother saw his EB-5 regional center shut down by the Department of Homeland Security one day before the program was originally scheduled to end.
The fate of the scheme, which has predominantly served in recent years as a pathway to US residency for wealthy Chinese, remains up in the air after the US Congress extended the EB-5’s validity without any reforms until later this year. Lawmakers will once again review the program that gives permanent US residency to foreigners who invest at least $500,000 after the presidential election, with the legislation set to expire on December 9.
Critics continue to slam the program for failing to create jobs and providing a lift for economically depressed areas, the two things it was established for. Instead, they point to a number of Manhattan deals, including the $500 million raised by developer Larry Silverstein for his 2 World Trade, and note rule relaxations and gerrymandering have rendered it ineffective.
Those claims were backed up by a recently released report from the US Government Accountability Office that estimated 90 percent of all EB-5 petitions were for areas that had combined low-income districts with affluent neighborhoods.
Is $500K Part of Trump’s Extreme Vetting?
While the controversial presidential candidate has been calling for “extreme vetting” of immigrants to ensure US borders he’s been vague on the details. Now it appears the billionaire endorser of steaks and bottled water, may see a $500,000 investment in a Trump-branded project as adequate qualification for a green card.
Trump Bay Street, a luxury condo project in Jersey City being built by Donald Trump’s son-in-law, used EB-5 to raise funds for the development. According to the New York Times, developer Global Management Resources is hoping to raise $40 million in funding from EB-5 investors for the proposed 33-story Mirabeau Trump in the heart of Texas.
Of course, like most things Trump, details about the Republican candidate’s involvement are a bit sketchy. No one from the former reality star’s camp was willing to confirm or deny his involvement in the project.
“While we do not have confirmed deals nor any investments in Austin, we remain interested in this market from a brand and management standpoint,” Jennifer Rodstrom, a spokeswoman for Trump hotels, told the WSJ.
Clinton Gets Caught Up in EB-5
Tony Rodham (left) will have more time to hit the links with brother-in-law Bill (right) after his EB-5 center was closed
While developers like Trump want to secure funding via EB-5 and investors, most of the time from China, want that green card, Washington entrusts “regional centers” approved by state governments to manage EB-5 projects and investor cash. One of those centers, the Virginia Center For Foreign Investment and Job Creation, counts Anthony “Tony” Rodham, Clinton’s brother, as its primary agent.
U.S. Citizenship and Immigration Services closed the center run by the democratic nominee’s sibling in late September, but no reason has been given as to why the operations were terminated.
Former Chicago Mayor Funnelling Cash into Chinese Project
Magellan’s David Carlins said the Wanda Vista Tower will likely use EB-5 funds
Wanda Chairman Wang Jianlin may not have a cozy relationship with the US government — lawmakers have accused the mall tycoon of trying to influence Hollywood — but EB-5 might be one thing he has in common with politicians such as Trump, Clinton and former Chicago Mayor Richard Daley.
Tur Partners, founded by Daley and his son, aims to raise $150 million from the visa scheme. The company would then loan that money to Magellan Development Group, the Chicago firm that has partnered with Wanda for the Vista Tower, which broke ground earlier this year.
While Magellan’s President David Carlins denied money from the Daley’s EB-5 center would be earmarked specifically for the Wanda project, he did admit that funds from the investor visa program could find their way into the $900 million tower.
“No final decision has been made with respect to the use of EB-5 funds for either project, though Vista is much further along and is more likely to use EB-5,” Carlins explained to the Chicago Sun Times.
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