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DPL: IBB willing to negotiate a new lease
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Posted on Jun 20 2011
The Department of Public Lands said the International Broadcasting Bureau “is very much interested in negotiating a new lease” with DPL for the same property it’s been leasing.
Acting DPL secretary Pedro I. Itibus said this in a response letter to Rep. Stanley Torres (Ind-Saipan), who was following up on the status of the IBB lease.
Torres had said DPL has been losing out on IBB’s low rental rate.
Back in February, the House passed a resolution requesting DPL to “officially investigate and rectify the flawed lease agreement” between DPL and IBB, and renegotiate the agreement “and seek back payment for previous years of rental at a lower than appraised rental value that IBB has been paying since the lease expired in 2006.
Itibus told Torres in a June 9 letter that representatives from the Broadcasting Board of Governors/U.S. IBB “presented their proposed additions/revisions of the first draft of the lease agreement DPL provided to the BBG/IBB.”
“They are still very much interested in negotiating a new lease with our department for the same property. The Department of Public Lands will ensure that all requirements are provided by BBG/IBB prior to executing the new lease,” Itibus said.
Torres said yesterday he looks forward to seeing a new lease with higher rates signed between DPL and IBB.
The 25-year lease deal expired in 2006, but DPL said IBB at the time “reluctantly refused” to renegotiate with DPL’s predecessor, the Marianas Public Lands Authority.
As a result, IBB continues to pay DPL $15,000 in annual lease rental even after the 25-year period expired in 2006.
DPL said the $15,000 in annual lease rental was based on IBB’s own appraisal and is the rate that IBB has been paying from 2005 to 2010.
House members had said DPL should renegotiate the agreement and seek back pay from since the lease expired in 2006.
