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CLTC terminating delinquent leases

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by Ken Quintanilla

Guam - The Chamorro Land Trust Commission is hard at work at terminating leases regarding delinquent cases. And one tenant is being terminated for accumulating over four and half years worth of back rent payments.

Located on the corner of Route 1 and Harmon Loop Road across the Dededo Flea Market, approximately 5,400 square meters of land is being returned to the CLTC after it terminated the lease of Agfayan Incorporated for failing to pay over $191,000 worth of back rent payments. CLTC administrator Monte Mafnas says in addition to the delinquent rent payments, Agfayan president Peter San Nicolas did not provide any receipts of real estate taxes or any form of public liability and property damage insurance.

San Nicolas' delinquent real estate taxes totaled at $4,500. "I told him he has to make good on the delinquent amount and how he can do that is accelerate the payment provided he pay substantial deposit and he agreed but never did that," he said.

San Nicolas' legal counsel, Randy Cunliffe, preferred not to comment as the case is still in litigation. Mafnas says San Nicolas is questioning the actual amount of about $10,000 less, but still hasn't made any payments. "He clearly did not denote or provide us with information neither did he provide us with proper documentation as to the rent he paid and consequently the burden of proof is his part, his court to substantiate that claim," he noted.

Mafnas says according to the lease, San Nicolas was supposed to pay $3,500 a month but instead was only paying $1,700 resulting in more than $100,000 in back payments. In order to make the payment, Mafnas advised San Nicolas to dispose of nearly 50 acres of his own personal land and use the proceeds to pay for the back payments or deed the property over to CLTC where it could have it appraised based on value for value.

Although he agreed, San Nicolas never followed on his word.

Additionally, Agfayan has a license enabling them to run it as a flea market so they didn't need any written approval from the board to rent and sublease the property as they see fit. However, by failing to make payment, Mafnas says San Nicolas is ultimately denying income to the beneficiaries of the trust. "When you use any property, whether it the government or private property, when you utilize it and make money or just utilizing it, you're encroaching, you're denying income to the owner, therefore you must pay," he said.

The board voted to terminate the lease and gave a 90-day notice to vacate the property by September 30.  Mafnas says affective July 1, tenants were notified and should make necessary payments to the Treasurer of Guam care of CLTC on the subject lot.

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