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CPA approves new lease agreement with Lower Base firm
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Posted on Aug 16 2011
The Commonwealth Ports Authority board of directors approved a new lease term for Ginen Saipan but junked the company’s proposal to give it 40 years to settle its arrears.
The company will be given a new 25-year lease to use the former Westpac Freight building in Lower Base, a property owned by the ports authority. The new lease will run from Dec. 1, 2011, through Nov. 30, 2036, and, if the lessee is not in default, it will be given the option to extend for three more five-year terms, or an additional 15 years.
Ginen was approved an $826 monthly rental under the new lease, which is also the current lease rate. It will increase by 20 percent every five years, while the sublease will rise by 25 percent during the same period.
The board instructed its legal counsel, Robert Torres, during Friday’s regular meeting to prepare the new lease agreement.
Meantime, the board did not act on Ginen Saipan’s long-term payment plan to settle its $66,000 arrears with the ports authority. Saipan Tribune learned that the arrears were incurred by the former lessee, Antonio Camacho.
During Friday’s deliberation, it was disclosed that Ginen president Gabriel Boyer is proposing a 40-year repayment plan. This translates to a monthly payment of only $140. The proposed amount is on top of the $826 monthly rental for the building and is separate from the lease agreement.
CPA executive director Edward Deleon Guerrero said the board wants a higher monthly collection for the arrears and has instructed him to renegotiate the issue with Ginen Saipan.
