Corporation notified of land lease termination for failure to pay $219.2K fees, other violations

The Department of Public Lands has issued a formal notice informing a corporation that its land lease agreement with DPL is terminated for violations of the lease and failure to pay various fees in the total amount of $219,291.

DPL Secretary Teresita A. Santos notified Man Bao Corp. president/treasurer Pingyin Cheung and vice president/secretary Beihua Yuan last April 6 that it has 30 days from receipt of the notice to remit to DPL the full amount.

According to Santos’ notice, a copy of which was obtained by Saipan Tribune last week, Man Bao Corp. owes DPL $158,064 in lease and interest fees for the period beginning Oct. 1, 2015 to April 1, 2023, and in encroachment fee in the amount of $61,226 for the period beginning Nov. 30, 2019 to April 1, 2023, or for a total of $219,291 owed.

The DPL secretary reminded Man Bao Corp. that the total amount due will continue to accrue interest of 1% per month, compounded monthly until the outstanding amount is paid in full.

Santos said if the corporation finds it difficult to pay the full amount in one lump sum, they must visit the DPL office and meet with DPL Financing and Accounting Division director Evelyn Sablan to discuss a workable payment plan. Failure to do so will result in DPL forwarding the matter to their legal counsel for further action, Santos said.

Man Bao Corp. entered into a land lease with DPL on Jan. 30, 2012.

Article 2 of the lease agreement requires the property to be used for the purposes of establishment of businesses such as a tour agency, restaurant, an auto shop, and car rental.

Man Bao Corp. used to own Win Tour.

DPL inspected the leased property last Jan. 19 and found that the premises, including the business establishment, were in disrepair, blocked for access with fence and padlocks, and not open for business as of that date.

Santos also noted that a court order in a civil action dated Feb. 23, 2023, directed Man Bao Corp., which does business as Fantastic Garden, and Cheung Ping Yin, to peacefully vacate the premises and surrender possession of the premises to DPL without further court intervention. The court also noted that defendants have no right to liquidated damages or monetary award for any improvements on the premises.

Santos said that DPL also finds that Man Bao Corp. is in violation of several other provisions of its lease. She said DPL found that the corporation failed to submit to DPL a copy of the lessee’s Business Gross Revenue Tax Quarterly Return from January 2012 through July 2018, and Sept. 2018 through March 2023. The corporation’s only submission of its BGRT was in August 2018.

Man Bao Corp. allegedly failed to submit to DPL an appraisal report to determine the annual minimum annual rental for the second five-year period.

The corporation also allegedly failed to submit to DPL at the end of each calendar year of the lease its financial statements certified by an accountant.

Santos said the only time lessee submitted to DPL its financial statement was for year ending 2015.

DPL cited three more violations of lease provision.