All new leases in the Industrial park and property known as airport land are now being charged a lease rate of 45 cents per square ft.
Some of the old leases for Industrial Park land pay as low as 15 cents per square foot.
Director of Commerce Fuiavailili Keniseli Lafaele told a Senate hearing Monday that the Federal Aviation Administration has insisted that property which was originally condemned for airport development should be leased at 45 cent per sq ft.
He said the FAA’s main aim is for ASG to raise revenues as matching fund for FAA funding for the development of Pago Pago International Airport.
The DOC Director testified that ASG has taken the position that only property within the airport fence are assigned to the airport, and that acreage is under FAA jurisdiction.
But other land condemned for the airport but now used for other government purposes such as the Industrial Park, belong to ASG.
Fuiavailili said the agreement between ASG and FAA to resolve the airport land issue is that all leases of land surrounding the airport, signed after the new agreement, would be charged a lease rate of 45 cents per square ft.
He said that all old leases are being looked at and they are trying to work out a way to bring them up to the higher lease rate in the quickest way possible.
Senators asked the DOC director for a report on delinquent leases in the Industrial Park, sub leases and other tenant information.
But Fuiavailili said this information was not available at this time.
He reported that since last month, DOC has been working with Treasury in compiling a report on tenants at the Industrial Park and this report should be ready by the end of this month.
Fuiavailili assured that Senators will get a copy of the report once its completed.
