Those who currently own a business or are looking to start operations in Guam may have new options when it comes to commercial lease opportunities. Democrat Sen. Roy Quinata recently introduced a bill that would extend the length of leases business take out for use of government land.
What would change?
Current law allows for a five-year lease period. If approved, the new law would increase the term to up to thirty years.
Why the change?
Lawmakers hope the proposal will incentivize business growth and lead to more job opportunities.
Will the proposal become law?
It is currently moving through the process, but not yet law. This is not the first-time lawmakers have proposed these types of changes. Earlier this year Sen. Telo Taitague presented a similar proposal. The main difference is Sen. Taitague’s proposal extends the lease period to ten years instead of thirty.
Both proposals have made it to committee review. If approved as currently written, the proposals will become effective upon enactment.
What should business owners take away from these potential changes?
The proposals and government efforts show that Guam is committed to business growth. It is important to note that there are some exceptions included within the proposals. As such, business owners are wise to carefully review the details of these and other laws before moving forward with operations.
Commercial leases are just one portion of due diligence to complete before moving forward with opening or expanding business operations in Guam. Those who are looking to pursue business interests are wise to take additional matters, like zoning, employment contract negotiations, and applicable regulations, into account before moving forward.