Guam - An amendment to the 2009 lease agreement between Core Tech International Corporation and the Government of Guam has been approved, as to form and legality, and was signed today by the Attorney General of Guam. All payments due to Core Tech under the lease and amendment will be made in the form of tax credits, as originally authorized by the legislature in Public Law 30-37 and affirmed later in PL 31-76.
"This really is a win-win situation, especially for the students of Untalan Middle School," Governor Eddie Baza Calvo said. "Their safety and education is the most important issue at this moment and we've finalized the financial and legal aspects necessary to move forward with their transfer to the Tiyan facility. I encourage the Board of Education to move quickly on this and authorizes the move soon."
Despite recent statements made about the requirement of an appropriation for the Core Tech International Corp., the legislature authorized the use of tax credits in lieu of cash payments. The unambiguous language of PL 30-37, as amended by PL 31-76, clearly permits the issuance of a tax credit for lease payments to Core Tech International Corp.
"There will be no cash payments in accordance with the law authorizing the lease agreement with Core Tech International Corp.," explained Director of the Bureau of Budget Management and Research John Rios. "The rent payments under the lease ‘will be made in the form of tax credits' as approved and passed by lawmakers with PL 31-76."
The amendment extends the term of the original lease from 2019 to 2024 to allow for the recovery of investments for additional improvements and new collateral equipment by both Core Tech International Corp. and the Government of Guam.
In addition, the first of these tax credit payments will begin in February 2012, after Untalan is expected to occupy the premises. Although the agreement did not require Core Tech International Corp. to do so, the lessor agreed to abate the rent for four months, during which time negotiations were ongoing and the facility was unused.