CPA cites ‘inconsistencies’ in lease agreements

The Commonwealth Ports Authority now wants to impose uniform requirements for all its tenants following findings of “inconsistencies” in their lease agreements.

For instance, some tenants are not required to secure bonds, leaving the CPA no options in collecting funds but through a lawsuit.

“Some tenants are not required to have bonding. Those with bonding, we’re able to recover costs, while some who don’t have anything, we have to take them to court,” said CPA executive director Clyde Norita.

Pursuing legal actions cost the CPA more money.

He said other requirements would cover compliance with U.S. Environmental Protection Agency regulations.

“We want to create a uniform lease agreement that will set the standards like bonding requirements, compliance with EPA. The issue with the tenants is that some [leases] are not the same as other leases. There are some inconsistencies. So what we are doing is put a new language on all the leases that CPA will be renewing or will be doing with tenants. This is a checklist of requirements such as letter of credit of bonding and environmental impact,” he said.

He said CPA has some 50 tenants in three airports and three seaports.

Recently, CPA sued two car rental companies for allegedly refusing to pay a total of $167,557.57 in arrears on rental payments and finance charges. CPA sued Choson International (NMI) Corp., owner of Thrifty Car Rental, and Island Development Corp., owner of Dollar Car Rental, for breach of contract.

CPA, through counsel Robert T. Torres, asked the Superior Court to order Choson International to pay $53,454.57, and Island Development $114,103 plus damages, attorneys’ fees, and court costs.

CPA and the two companies entered into a lease agreement for rental car concession on Dec. 16, 2004. Torres said the companies leased a sales center, related check-in and check-out locations, and storage areas at Francisco C. Ada Saipan International Airport.

The agreement calls for a two-year contract beginning January 2004. As of Aug. 14, 2006, CPA said that Thrifty was in arrears on rental payments and finance charges, which now totaled $53,454.57. As of Sept. 11, 2006, CPA said the unpaid balance on Dollar Car Rental’s account amounted to $114,103.

CPA said that, despite repeated demands for payment, the companies have failed and refused to pay the outstanding balance.