The Lemanu Talauega Administration discontinued a Lease Abatement Assistance Program, which the Lolo Lemanu government started to help defray costs of tenants for developing their Tafuna Industrial Park (TIP) lots that are not lease-ready.
Under the program tenants were not charged rent for up to 4-years.
The Governor’s State of the Territory address says that an Executive Order, dated August 2021, rescinded and discontinued the program.
An update in the SOT address states:
● 11 Leases completed their abatement periods.
● 13 Leases have 2 or less months left of abatement; 7 of these leases remain unresolved due to ASG not allowing tenants to use their lots.
● Four leases have more than 2 months left on their abatements; of this 4, 3 were the result of settlements ASG sought with tenants.
● Total arrears for all tenants as of Sep 2021 was $526, 117.00. As a result of collections efforts by the TIP Division, total arrears have dropped as of October 2022 to $498,190.55
● Payment Plans were negotiated and approved for 8 tenants with a total original amount of $518,813.31.
● As of October 2022, the total arrears on payment plan was $487,396.
The report states that the TIP Division:
● Negotiated with an existing tenant to configure its existing lot. This resulted in the creation of 1 new lot that is about to be leased out to a new tenant, thereby generating additional revenues for the TIP.
● Plans on converting some areas of the buffer zone into new lots are ongoing
● Successfully negotiated increases in rental rates of 7 leases, one of which will generate an additional $40,000 in new revenues annually for at least the next 5 years when the next increase is due for review.
