Public Lands Secretary Marianne Concepcion-Teregeyo has resubmitted to the Legislature for its approval the application of D&W Saipan Inc. for a 15-year lease extension of its public land lease in Gualo Rai.
In a Feb. 3 letter to legislative leaders, Concepcion-Teregeyo said DPL’s first packet was submitted to the 21st Legislature on Aug. 26, 2020, prior to the expiration of D&W Saipan’s 25-year lease last Sept. 30, 2020. A public hearing was held on Sept. 16, 2020, but it was not acted upon for approval since then.
The secretary said DPL supports D&W’s request for the lease extension. D&W owns the Shell gas station and the tire shop along Middle Road in Gualo Rai.
D&W first entered into a 25-year lease agreement with the Division of Public Lands, Department of Lands and Natural Resources on Oct. 4, 1995.
Concepcion-Teregeyo said the lessee has maintained a good relationship with DPL, had been compliant with the lease’s provisions, and has kept its account current.
Under the proposed lease extension agreement, D&W will pay a 5% increase in its current annual base rent for the first five years of the extended term. The company will then pay 5% of the appraised market value of the improved land every five-year period thereafter, but will not be less than the rate paid by lessee during the preceding five-year period and a percentage of its Business Gross Revenue.
In addition, Concepcion-Teregeyo said the company agrees to give 20% man’amko discounts for parts and maintenance repair services, 10% discount on oil change, and 10% discount for military veterans/active reservists holding authorized cards and loyalty award discount program for regular customers.
She said D&W will also provide $2,500 annually for the educational scholarship of Northern Marianas descent eligible recipients.