Looks like #2 was wrong (or is an employee of Trump). See today's Villager. The most relevant part of the art. says the following:
"But building the luxury condo-hotel may not be so simple. The area is zoned for manufacturing, which does not generally permit long-term-stay hotel uses.
“No way, they can’t do that here, it’s against the zoning,” said architect David Reck, chairperson of the Community Board 2 Zoning Committee.
According to the Department of Buildings, there are some exceptions to the rule, but Jennifer Givner, a department spokesperson, could not confirm by press time whether the swath of land in question allows for long-term-stay hotel use.
So far, Trump has been unable to get his applications approved by Buildings. Last month, three applications to the department were not approved."