‘USPS initial 25-year lease was only $1 a year’
The U.S. Postal Services 25-year lease of a public land in Chalan Kanoa cost only a dollar per year, according to Department of Public Lands Secretary Sixto K. Igisomar.
In response to Saipan Tribune’s inquiries about the lease, Igisomar said Wednesday that the basic term of the U.S. Postal Service’s lease of the Chalan Kanaoa property was for a period of 25 years and was signed on July 9, 1997, with an option to extend/renew for an additional 15 years, which the U.S. Postal Service has now chosen to exercise, “hence it’s extended/renewed for another 15 years.”
In response to follow-up questions, Igisomar said yesterday that the 25-year lease expired last July 19, but the U.S. Postal Service exercised its option for extension/renewal for 15 years.
Igisomar said the initial rental since inception and as previously negotiated was only $1each year.
DPL has already expressed support for the U.S. Postal Services’ request to extend the lease by another 15 years.
In his letter dated Sept. 21, 2022, to Diana Alvarado, who is the U.S. Postal Services contracting officer, Igisomar said that they support the request, provided that the 15-year extension is approved by the CNMI Legislature.
He said DPL’s Real Estate Division will prepare a draft extension agreement and first amendment to lease agreement and that they will be contacting the Postal Service when it is ready for review.