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30 Year Land Lease Deal Starkist And Samoa Close

A 30 year land lease between StarKist Samoa and the American Samoa Government has been authorized by the Samoan Senate. The company has been granted a lease with the price of 29-cents per square foot for the land in Atu’u which houses the tuna cannery.

Local law stipulates that if no action is taken on a lease after 30 days of receiving it, the agreement is automatically approved. It is unclear as to why the house did not act on the lease, despite it being one of the issues on the governor’s agenda for a session that ended last week.

At the close of the 30 year contract, StarKist will have the option to renew the tenancy for a further 25 years. The lease covers an area of 408,203 square feet, which includes 138,077 square feet of additional land to cover housing surrounding the canned tuna processing plant.

The 29 cents per square foot price will result in a monthly payment of USD 9,864.91, amounting to USD 118,378.87 annually. Included in the deal the government has granted StarKist a “road-right-of-way” for increased access to the cannery.

Another provision of the lease calls for the adjustment for inflation every five years to reflect the fair rental value of the property.  Additionally, the lease shall be renegotiated after the first three years and every year thereafter to adjust for changes in circumstances.

The agreement stipulates that only American Samoans, permanent residents or US nationals are authorized for employment in the processing plant. The company “may be authorized” to bring in necessary supervisory, technical and other skilled personnel who are not readily available in the territory.

Governor Lolo Matalasi Moliga said: “StarKist is a key partner in the economic development of the territory and we are therefore pleased with the company’s commitment to its long-term future in American Samoa.”