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CPA tenant complains of ‘unreasonable’ rate
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Posted on Oct 25 2006
For over a year now, Tinian Marine Stevedore Inc. has been asking the Commonwealth Ports Authority to reduce its lease rate, which it said is “unreasonably high,” citing the stark lack of shipping business on Tinian. CPA, however, has not replied on the matter.
“We have not received any response from CPA,” said TMSI chair Roman S. Palacios in an interview Tuesday.
CPA executive director Clyde Norita was reached but was not immediately available for comments.
Palacios said he last wrote CPA on the issue two months ago. His initial letter was sent in July 2005 and the second was in November last year.
In the latest letter dated Aug. 22, 2006, Palacios said that TMSI is paying three times higher than its sister company on Saipan, the Saipan Stevedore Co. Inc.
TMSI pays 15 cents per square foot for one lot and 14 cents per square foot for another lot.
“Based on the above rates, it is very obvious that TMSI has been imposed an unreasonably high rate compared to SSC in relation to the economic activities between these two ports,” said Palacios.
TMSI closed its business 10 years ago when the tuna transhipment ceased operations on Tinian. TMSI has not had any major source of revenue since then except from the sublease of a warehouse “of which income had sustained only the maintenance of these leased properties.”
“In view of low economic conditions in Tinian and our company’s continuing losses as a result of no port activities in the subject leased properties, we humbly request for your kind consideration to lower the cost of our monthly lease to at least the same or proportionate to the rate paid by SSC on its CPA leased property,” said Palacios, a former CPA board chair.
TMSI said that it has paid all its outstanding accounts “in anticipation of reduced rates.”
In previous letters, TMSI said that, although the company had encountered absolutely no other revenue generating activities, it managed to perform its obligations of paying monthly rentals from 1996 to 2003.
In 2004, it said that its cash resources had been nearly depleted, causing a delay in payment.
TMSI said it aims to keep its lease on Tinian in the hopes of increased military activity in the area in coming years.
