Guam’s economy faces plenty of challenges today – a lack of tourists and losses of federal funds are among them.
One positive and focused bill at the 38th Guam Legislature was Sen. Joe S. San Agustin’s Bill 8-38, which would have extended leases of Government of Guam properties to 30 years from five years. Sen. Telo Taitague’s amendment reduced that to 15 years and the bill passed.
To make the significant investment called for in a government property – and to see calculated returns on that investment – a 15-year lease is not attractive, to put it mildly.
The NMI saw the writing on the wall in 2020.
The Department of Public Lands in the Northern Mariana Islands can grant a leasehold interest in public land for a maximum of 40 years and extend for up to 15 years, with the approval of its legislature. Before Public Law 20-84, the NMI’s lease limit was 25 years, also with a 15-year extension, clearly not as attractive as a longer lease.
However, there are two bright spots that may encourage potential investors and businesses that are more willing to dig deeper than they would be for 15 years.
One is the repeal of item (d) in the bill, removing Legislative approval of a lease from Bill 8, were a contract to exceed 15 years.
The other is a bill by Sen. Jesse A. Lujan, who is chairman of the Committee on Transportation, Tourism, Customs, Utilities and Federal & Foreign Affairs.
Bill 67 gives the Guam International Airport Authority the ability to award leases for up to 50 years, and award concessions for up to 15 years inside the airport and on Route 10A, known as Airport Road. Lujan’s reasonable bill had its first hearing on March 20 and then moved to the hearing stage. Lujan’s office said the bill received unanimous approval.
Of course, if the airport is put in a fortunate situation where it can negotiate leases for up to 50 years, it’s possible that other government agencies attempting to secure investors will also ask for a similar bill. This paper certainly hopes that Bill 67 is signed into and that other government agencies ask for parity and a similar bill.
That outcome is so much better than shooting down investment. mbj
One positive and focused bill at the 38th Guam Legislature was Sen. Joe S. San Agustin’s Bill 8-38, which would have extended leases of Government of Guam properties to 30 years from five years. Sen. Telo Taitague’s amendment reduced that to 15 years and the bill passed.
To make the significant investment called for in a government property – and to see calculated returns on that investment – a 15-year lease is not attractive, to put it mildly.
The NMI saw the writing on the wall in 2020.
The Department of Public Lands in the Northern Mariana Islands can grant a leasehold interest in public land for a maximum of 40 years and extend for up to 15 years, with the approval of its legislature. Before Public Law 20-84, the NMI’s lease limit was 25 years, also with a 15-year extension, clearly not as attractive as a longer lease.
However, there are two bright spots that may encourage potential investors and businesses that are more willing to dig deeper than they would be for 15 years.
One is the repeal of item (d) in the bill, removing Legislative approval of a lease from Bill 8, were a contract to exceed 15 years.
The other is a bill by Sen. Jesse A. Lujan, who is chairman of the Committee on Transportation, Tourism, Customs, Utilities and Federal & Foreign Affairs.
Bill 67 gives the Guam International Airport Authority the ability to award leases for up to 50 years, and award concessions for up to 15 years inside the airport and on Route 10A, known as Airport Road. Lujan’s reasonable bill had its first hearing on March 20 and then moved to the hearing stage. Lujan’s office said the bill received unanimous approval.
Of course, if the airport is put in a fortunate situation where it can negotiate leases for up to 50 years, it’s possible that other government agencies attempting to secure investors will also ask for a similar bill. This paper certainly hopes that Bill 67 is signed into and that other government agencies ask for parity and a similar bill.
That outcome is so much better than shooting down investment. mbj