CPA Executive Director Efrain Camacho on Tuesday said a three-month delinquency will result in the termination of the lease contracts involving airport and seaport properties.
“CPA wants to help tenants and lessees…but it is not doing anybody a favor by allowing these leases to continue without the lease being paid. It’s better to cut it off while it’s manageable,” Camacho said.
He said the management and the board will have a comprehensive report on the existing CPA leases to identify the affected tenants.
“We’re reviewing all leases and unfortunately, some of them are out for collection through legal means. and CPA wants to avoid that because there’s really no point of allowing these companies and individuals to continue on,” Camacho said.
Collection efforts, he added, are causing CPA significant amounts of money and effort.
Before the automatic lease termination is implemented, CPA will meet with the affected lessees to “avoid legal proceedings and allow them to settle obligations, and move on.”
