CPA to give 75% relief to tenants

The Commonwealth Ports Authority board of directors unanimously agreed to give 75% discount to its tenants at the Francisco C. Ada/Saipan International Airport that have been critically hit as a result of the COVID-19 pandemic.

CPA waived 100% of the payment leases for a total of three months, April to June, then 50% which ended in July, and now a 75% relief until December because there are no international flights. According to Saipan Tribune archives, there are 50 tenants at the CNMI airport, and 37 tenants at its seaport that have, and will still, benefit from the waiver/discount.

Although there is no money coming in for CPA, CPA board chair Kimberlyn King-Hinds said that they are able to stay afloat with funding from the Coronavirus Aid, Relief, and Economic Security Act that they received last April 16, which will also allow CPA to “share and spread” the relief with their tenants.

In an interview with King-Hinds, she said that their tenants need to be able to come out of this pandemic with CPA, which is why she thinks that a 75% discount is reasonable on the rental. “I think that the board will also be open to having one-on-one discussions with our tenants as it relates to deferments, if they’re unable to meet their obligations,” she added.

Even if tenants, at seaport and the airport, aren’t able to pay the full amount that they owe, King-Hinds said that it will be a case by case basis. “We’re not here to hurt our tenants, we’re here to support them, and we’re here to get out of the situation together. Our tenants are our lifeline, and we are very open to having these discussions with them,” she said.

Even with the four flights a day, the situation at CPA hasn’t changed, same goes for their tenants. With no tourist coming in, the car rental operators are not seeing any revenue, and also Saipan Skydiving Adventure has not seen any activity since the pandemic hit.

According to King-Hinds, CPA’s revenue comes from their tenants, however, because of the CARES Act, they are able to be “self-sustainable.” Meaning that they are able to carry themselves to the next fiscal year, at current austerity levels. This also means that employees are still working a 64-hour biweekly schedule.

Additionally, King-Hinds says that there has been word going around that there might be potential funding under the Health and Economic Recovery Omnibus Emergency Solutions Act, under airport funding. However, if that doesn’t happen, King-Hinds says that there will be more discussions on what type of relief will be passed on to their tenants.