ASG Prepares Counter Offer on Lease Rate for StarKist

img_3896

ASG is preparing a counter offer for the StarKist Samoa land lease at the shipyard at Satala to build additional cold storage.

StarKist maintains that ASG upped the rate which they agreed to in March of last year but the chairman of the Shipyard Services Board and Acting Director of Commerce Keniseli Lafaele gives a slightly different version.

He said his recollection of what was said in March of 2016, is that “we assured StarKist they would get extra space for their cold storage.

“We don’t not recall stating such space would be available at 29 cents per sq feet per year which is their current rate.”

StarKist Vice president Michelle Faist told KHJ News that the lease rate that ASG is now proposing is higher than what they and ASG agreed to last March.

She said StarKist is seeking a rate that’s comparable to that paid by tenants in the cannery area.

According to Lafaele, ASG is proposing rates that other tenants are paying for space at the shipyard and the current shipyard tenants pay a monthly rate.

He told KHJ News StarKist wishes to maintain a rate that’s yearly conforming to their global lease agreements.

Ms Faist said their company wants to pay rates others are paying now, like Samoa Tuna Processors.

STP is paying 32 cents per sq foot per year for their Atuu location.

Lafaele explains that other tenants leasing at the shipyard pay a monthly rate.

Asked for the justification in raising the lease rate, he said negotiations are on going, not at a stalemate as mentioned in the media.

Lafaele said both sides will come to the table again this week and engage in further discussions.

He said “we aim to arrive at a lease agreement that’s good for all and do so before the Governor leaves for DC.”

StarKist Vice President Faist, who was here last week, said it was because negotiations on the land lease broke down that a planned visit to the territory by StarKist President Mr. Andrew Cho was cancelled.

She too was optimistic that their company and ASG would arrive at a mutually beneficial decision on the lease rate.

Tags: , , , , , , , , , , , , , , ,