Guam Ancestral Lands Commission Seeks Approval for Long-Term Lease of Tiyan Property

The Guam Ancestral Lands Commission (GALC) is requesting approval from the Guam Legislature to lease property along the Tiyan cliff line for up to 50 years, with options to renew for an additional 49 years, totaling up to 99 years, for commercial or industrial use. Currently, government of Guam land deals are limited to five years, but there is a process in place to allow longer leasing of public property, which requires legislative review and approval.

GALC, through its property manager, the Guam Economic Development Authority (GEDA), has written to Speaker Therese Terlaje seeking approval for an exceptional term contract. This contract would enable GALC to issue a request for proposal for the commercial leasing of Lots 5175-1REM and 5182-1REM in Tiyan, Barrigada. The combined 13,712 square meters of property, located near the A.B. Won Pat International Airport Guam, has the potential for commercial or industrial use, according to GALC.

The property, situated across from the CTSI freight forwarding facility, offers views of Tamuning and the Philippine Sea. If the potential offeror intends to utilize the property for commercial or industrial purposes, the three houses currently located on the lots would need to be demolished. Previously used by the U.S. Navy for enlisted family housing, the property was cleaned for industrial use before being transferred to GovGuam and GALC.

GEDA stated that GALC intends to award a lease of up to 50 years, with options to renew for an additional 49 years, to allow a prospective developer to invest in the property and profit from their investments. The specific lease terms will be subject to negotiations based on the lessee’s financing requirements and investment recovery. GEDA emphasized the need for a lease longer than five years, as it would provide opportunities for small local businesses to participate, employ local workers, and have a chance at success.

The proposed use of the GALC property will determine the amount of investment required by the selected offeror. Additionally, the condition of the existing houses and the potential presence of environmental contaminants, such as asbestos and lead-based paint, left over from the Navy’s use of the property, may necessitate a significant investment for reuse. The property is currently overgrown with vegetation, and the condition of the houses may be poor.

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