Senate President Tuaolo Manaia Fruean has declared as unfair the different lease rates being charged to tenants at the Tafuna Industrial Park.
He said some businesses are paying 10 cents per sq ft, some are paying a flat rate of $1,200 a year, while others are paying 45 and 60 cents per square ft.
Tuaolo asked the Director of Commerce Magdalene Petaia who was testifying on her department’s budget who sets the rates. The director explained that the rates are determined by DOC together with the Attorney General’s Office.
The Senate President repeated that the different rates are very unfair and asked who will correct this?
Petaia said it should be DOC and the AG’s Office in consultation with the Governor.
Tuaolo remarked that so many things were hidden by previous administrations. He said not too long ago checks of $25,000 were distributed to groups that are not businesses. But he did not elaborate on what he was referring to.
Tuaolo had a report of the Tafuna Industrial Park leases and copies of the report were distributed to all senators and representatives present at the budget hearing.
The report showed that the lowest lease rate was 10 cents and the highest is 70 cents a sq ft.
The highest annual lease rate is $72,828, the next highest is $31,135, followed by $25,397.
The lowest annual lease rate is $1,200.
The report also showed arrears of $733,340 for tenants of the Industrial Park as of March 1 this year,
The highest unpaid rent was $206,353. DOC officials said that some of the companies owing rent have payment plans to settle their arrears.
Vice Speaker Fetui Fetu complained that some of the companies that signed leases at the same time as his company were paying 25 cents while his business is charged 45 cents. Deputy Director Uili Leauanae who oversees the Industrial Park explained that the Lolo Adminsit5ration had reduced the rate to 25 cents to help businesses after covid. He said in the case of Fetui’s company the rate was increased to 45 cents after his business operation changed, in that his company subleased their building to other tenants.
Questions were also asked of the State Small Business Credit Initiative. The Director explained that SSBCI.1 has been completed. DOC is trying to collect $2.4 million that have not been repaid by businesses that received loans from the program. This amount is owed by 8 businesses.
The SSBCI.2 program which is funded for $57 million is underway.
