Guam – A bill that would extend a lease agreement between Cementon Micronesia and The Port Authority of Guam was discussed in the Legislative Hearing Room this morning.
Concrete supplier Cementon currently leases 4,983 square meters of Port Authority Property. Bill 442 would allow their five year lease that began in 2009 to be extended for a term of up to 20 years.
Under the current agreement Cementon and the Port Authority will meet every five years to redetermine the cost to lease the land. Port Authority General Manager Rick Agustin says this allows the port make sure the rent keeps up with the property value.
“As the value of Port Property values goes up then you’re not getting the best value for the property.” Agustin said during the hearing referring to leases the Port currently has that don’t allow for rent to be renegotiated.
Cementon plans to invest close to $50 Million in the property to build concrete stave silos.
Senator Rory Respicio suggested that property improvements could result in Cementon’s rent increasing. Senator Eddie Calvo added that Hyper Inflation could occur with the Military Buildup also causing the property value to increase. The Senators suggested that the Port and Cementon agree on a rate “ceiling” during their negotiation process.