While the government is going after tenants in the Tafuna Industrial Park to pay their leases, ASG itself owes some of those same tenants “huge sums of money” according to the Department of Commerce’s fiscal year 2014 Fourth Quarter performance report, for the period of July 1-Sept. 30, 2014.

For many years, the private sector has complained to lawmakers and to the news media that the government has declined to offset what they owe to the business community, while ASG is going after them for rent on government property, or for taxes. The biggest complaints from tenants are from those at the Industrial Park.

At the end of the 4th quarter, DOC said that it's important to bring to light “problems and issues” Industrial Park tenants have experienced in the past with payments owed to them by ASG — with most of those payments still pending.

“Several tenants have provided documentation verifying ASG owing them huge sums of money and these same tenants have obligated their companies to sign over these monies towards payments for their arrears… it's an option that has provided to be suitable for both ASG and our Industrial Park tenants with this particular circumstance,” the report states.

Regarding the issue of outstanding lease payments, the report states that at the end of the 4th quarter, Industrial Park arrears stand at just over $988,674 and of that amount, $926,000 is well over 90 days in arrears. 

The report went on to point out that with the support of the Treasury Department and the Attorney General’s Office, collection of arrears has increased drastically.

The report notes that the DOC has identified several tenants who unfortunately are unable to continue payments as stipulated in their leases, although several attempts to provide assistance through payment plans were offered to them. But in the end, it just compounded the problem, resulting in increasing instead of decreasing arrearage, according to the report, and as a result, ASG has no other option but to recommend to the governor the termination of those leases.

The report didn’t say how many leases are being recommended to the governor for termination.

NEW LEASES

The report notes that the Fono has approved (during the special session), Pacific Grading Company and GHC Reid lease extensions — each for 30 years. (The two companies each chose to exercise their options in the original leases to extend .)

Additionally, DOC anticipates the drafting of several new leases for new tenants once approved by the governor. Proposed activities for these new leases vary from auto services to heavy-duty recycling — an important service to the local community, the report says.

According to the report, the importance of the increase in new tenants moves ASG towards one of its important goals for the Industrial Park — and that is full occupancy, which in turn generates more revenue for the local government.

BACKGROUND

Samoa News should point out that the local government has never said whether or not it will honor a 1973 map of the Federal Aviation Administration that represents “airport” property, which includes the industrial park lots. Honoring the map would necessitate the lots being leased at ‘fair market value”.

In May of this year, Samoa News reported that the Port Administration is hoping the Lolo and Lemanu Administration will honor a 1973 map which was recently uncovered, when the Federal Aviation Administration came to the territory in March 2014, to conduct an audit or inventory on all of the airport property and its usage, in relationship to federal grant applications by the Port.

The map presented to ASG officials in March indicates the extended Airport property, which includes all the Industrial Park lots, Tafuna Housing, the Correctional facilities, and lands that extend to Stevens & Sons on the Pala Lagoon side, to the car wash and garage over by the Triple S gas station.

There are over 800 acres, according to the 1973 map, which also shows airport land includes the VA Stadium, the ASTCA offices, the Election and TEO offices, McDonald’s, CSL and on back to the DOE school lunch and Aveina Brothers Wholesale, as well as along the main airport road on both sides — including the ASPA compound.

The Director of the Port Administration Taimalelagi Claire Tuia Poumele, in speaking with Samoa News, at the time, said she is hoping the revenue generated from businesses on airport designated land — which contains more than 50 businesses — will be given to the Port for development of the Airport.

She told Samoa News that two officials from the FAA are looking into the Airport’s revenue or cash flow from the tenants on the Airport property.

“Part of everything that’s listed as airport property that’s on this map and with the grants that we are applying for have grant assurances. If we’re applying for grants, we are going to need to meet these conditions and part of these conditions is that everything on airport property has to be fair market value.”

Taimalelagi said for instance, the property at the Industrial Park seems to be leased out for less than market value, i.e. what ASG is currently charging per square foot.

Samoa News noted in its story that businesses located at the Industrial Park are not all paying the same amount, with charges ranging from 15 cents up to $1.65 per square foot, according to a copy of the industrial park tenants database recorded by the Department of Commerce, which Samoa News obtained.