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L&T wins back land lease
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Posted on Dec 02 1998
The Board of Public Land has reinstated the lease contract of the L&T Group of Companies to develop a commercial complex in a sprawling government property in Navy Hill, barely a month after losing the lease for alleged failure to pay land lease fees.
According to BPL Chairman Tomas B. Aldan, members of the board gave their stamp of approval on condition that L&T will settle its outstanding obligation amounting $118,500, rent it did not pay since late 1996.
The Division of Public Lands has terminated the lease agreement, accusing L&T of breach of contract for failing to pay fees and begin construction in 1997. The project was supposed to be completed by March 1999.
But Steven Pixley, legal counsel of L&T, told DPL in a letter that a civil lawsuit against the commercial project has imperiled plans to construct the Pacific Mall Complex in a 38,574-square meter public land in lower Navy Hill.
“…L&T is unable to proceed with this project until the civil litigation is resolved,” Pixley said, as he contended that the termination was null and void because it was issued without prior notice – a requirement provided in the lease agreement.
In 1995, a taxpayer’s lawsuit questioned the legality of the lease contract on the grounds that the terms of the land lease deal were unfavorable to the Northern Marianas since the government property is worth $18 million.
However, Aldan explained the board will meet with DPL to discuss changes in the previous agreement and accommodate the concerns raised by the division.
He said DPL Director Bertha C. Leon Guerrero is proposing to renegotiate some terms of the lease to ensure that CNMI will get the maximum benefits from the deal.
“The wise part about it is the fact that L&T will continue to pay instead of the property sitting there idle. If the complex is built I think that would give a boost to the economy,” Aldan said.
