Committee considers Bill 176-38 to let tenants in good standing renew government commercial leases at fair market value

The committee heard testimony Friday on Bill 176-38 COR, a proposed change to how the government renews commercial leases of public land. Under current practice, expiring leases typically are subject to bids and awarded to the highest bidder; the bill would allow existing tenants in good standing to renew at fair market value rather than being required to re-compete immediately for the site.

Christina Garcia, testifying for the Guam Economic Development Authority (GEDA), said the bill would support local businesses by allowing established tenants to continue operations while ensuring rent is adjusted to current fair market value. “Bill 176-38 is clear. Simple, direct, and fair,” Garcia said in testimony.

Business owners who spoke said lease continuity supports local employment and supply chains. Anthony Regis of the Americana Group (doing business as Carpet Store) told senators his family-operated businesses have occupied the site since 1981 and employ 22 local residents; he asked lawmakers to weigh the community value of long-standing tenants against the theoretical gains from re-leasing to highest bidders.

Senators raised procurement and public-asset concerns. Several members noted statutory requirements that land-related transactions meet appraisal standards and that fair market value determinations protect public trust assets; one senator cited 2 GCA §2107(b), which calls for two appraisals on certain land-related legislation. Committee members also asked how “good standing” would be verified; GEDA said it would consider on-time rent payment, compliance with lease terms and routine inspections and expected to present tenant lists and terms to the committee on request.

Opposition points raised during questioning included the risk that the bill could deny competing bidders a chance to secure longer terms and the potential for undervaluing public leases if appraisal procedures are not sufficiently robust. Senators reminded GEDA of a prior controversy involving a proposed extension for a submarine landing-station lease (cited in testimony) in which the governor vetoed an extension in part because of disagreement over fair market valuation.

No final vote was taken. Committee members asked GEDA for a list of affected tenants, copies of current lease terms, and clarification on appraisal procurement and how fair market value would be determined to protect the public interest before any markup.