THE Port Authority of Guam was asked for updates on two parcels of land during a legislative oversight hearing held yesterday evening. The Port was also asked about the anticipated revenues and future plans for Parcel 3-1 and Parcel 3 (Hotel Wharf).
A $20 million facility was built on Parcel 3-1 by the lease holder of the land, Cementon Micronesia LLC. The facility is expected to be instrumental in providing the cement that will be needed for construction in preparation for the military buildup.
The facility remains non-operational, despite the planned commencement date of February 2012.
At this time, revenue is coming mainly from rent collection, pending completion of a 100-foot fuel pipe to be built across the pier by Mobil.
“There have been several efforts and attempts to try and get everyone to the table to resolve outstanding issues,” PAG board chairman Daniel Tydingco said.
“There are some specific matters,” Tydingco explained, “because Mobil is involved and they have the master lease. There are issues regarding the operational user agreement, construction agreement, an issue considering our liability, assumption of liability, and issues centering on the valve.”
Sen. Tom Ada asked the Port about the date of completion for the pending projects so operations could begin.
In response, PAG General Manager Mary Torres explained that two main issues stand in the way of completion. These two obstacles are the installation of the automatic safety valve and the liability consideration, she said.
Risk assessors have been brought in and the Port will work closely with Mobil to resolve the issues, Torres assured.
Parcel 3 (Hotel Wharf) has remained unused since the previous lease holder, YTK, operated the area.
Since then, the area has fallen into disrepair. Several weeks ago it was taken off the list of areas available as the Port works to evaluate the integrity of the pier.
An exact value appraisal of the property was unavailable.
“We embarked on an assessment of the property because it hasn’t been in our hands for several years and it is in a state of disrepair,” Torres stated. “In order to determine what might be a considered use for the Port, we would have to do an assessment of the integrity of the wharf.”
It was taken off the list of available areas pending the assessment of its condition and what would be needed to bring it up to standard, Torres said.
There are still lingering concerns over Parcel 3, as expressed by Vice Speaker Benjamin J.F. Cruz, who reminded Port officials of a clause in the previous lease agreement that had conflicted with legislative authority.
However, the Port’s legal counsel, Michael Phillips, reassured senators that these previous issues would likely not carry over into the present as the lease with YTK had expired.
