Core Tech wants at least $130M and rent in government land dispute – Guam Pacific Daily News

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Construction company Core Tech International wants the government of Guam to pay it at least $130 million and monthly rent for as long as the Guam Waterworks Authority operates the islands wastewater treatment plant in Dededo.

Core Tech also wants the Superior Court of Guam to order the payment of 42 years of back rent, plus interest, for the wastewater plant, which Core Tech alleges sits on ancestral land Core Tech acquired in 2015.

Construction work continues of the Guam Waterworks Authoritys new Northern District Wastewater Treatment Plant in Dededo on Monday, Jan. 31, 2022.

According to GWA, if Core Tech wins its land case in the Superior Court of Guam, the enormous payments to Core Tech could result in higher water bills for the island.

Although GWA has argued it clearly owns the land used for the Northern District Wastewater Treatment Plant, which started operating in 1980, Superior Court Judge Elyze Iriarte in November ruled that Core Tech has an ownership interest in the land and therefore can continue to pursue its claims in court.

Construction work continues of the Guam Waterworks Authoritys new Northern District Wastewater Treatment Plant in Dededo on Monday, Jan. 31, 2022.

She rejected a request by the Department of Land Management and GWA to dismiss Core Techs claim.

Construction work continues on upgrades being implemented at the existing Guam Waterworks Authoritys Northern District Wastewater Treatment Plant on Monday, Jan. 31, 2022.

Land Management and GWA have argued that Core Techs ownership claim is based on flawed certificates of title issued by Land Management in 2010, and that Guam law prohibits the wastewater plant site from ever being transferred to private ownership. Land Management has asked the court for permission to change and revoke those certificates of title.

Land Management and GWA in early January petitioned the Supreme Court of Guam, challenging Iriartes ruling.

The Supreme Court assigned a case number to the governments petition, but has not issued any orders or set any deadlines in connection with the petition.

Construction work continues on upgrades being implemented at the existing Guam Waterworks Authoritys Northern District Wastewater Treatment Plant on Monday, Jan. 31, 2022.

If justices agree to hear the petition, they will be asked to consider two issues: whether the five-year statute of limitations expired for Core Tech to file an inverse condemnation claim against GovGuam; and whether the Superior Court made an error when it stated Core Tech has an interest in the property, despite two public laws that prohibit the transfer of excess federal land that is being used for public easements.

The case started in December 2018, when Land Management sued Core Tech, asking the Superior Court to allow Land Management to cancel and change the certificates of title.

Core Tech counter-sued in January 2020, claiming GovGuam and GWA illegally condemned the land without paying for it and are encroaching on Core Tech property after tearing down Core Techs fences in order to expand the wastewater facility.

GWA currently is spending $122 million, provided by the military in connection with the military buildup, to upgrade the wastewater plant, including new secondary treatment facilities. Black Construction won the contract in June 2019. The wastewater plant serves residents of northern Guam and Andersen Air Force Base and also will serve the new Marine Corps base under construction in Dededo.

The federal government in 1980 gave GovGuam a lease to maintain and operate the wastewater plant, which was built on 13 acres of military land within the 862-acre Air Force communications annex.

The federal government later returned 3,213 acres of excess federal land to the government of Guam, including the communications annex.

The Guam Ancestral Lands Commission in 2006 deeded 257 acres of excess federal land to the estate of Jose Martinez Torres, including part of the communications annex.

The Torres estate in September 2007 sold 252 acres of its ancestral land to Kil Yoo Yoon for $21.4 million. Yoon in 2008 subdivided the property into eight smaller lots, and in January 2010 deeded the land to his company, Younex Enterprises Corporation.

Core Tech acquired the property in May 2015, for $178.1 million, after Younex defaulted on its mortgage with Core Tech, documents state.

According to Judge Iriarte, Core Techs ownership interest is related to that mortgage and the sale of the property to Core Tech, which resulted in Core Tech receiving a mortgagees deed.

According to Core Techs counterclaim in Superior Court, the government of Guam and GWA have used and occupied lot 10184-7 for the wastewater plant without the consent and permission of Core Tech, which amounts to an illegal taking and a violation of the Fifth Amendment of the U.S. Constitution.

Core Tech states GovGuam and GWA failed to pay Core Tech or any prior owner for using the property, and Core Tech suffered serious severance damages to its property of at least $130 million.

Core Tech wants back rent and interest, retroactive to May 1980, with monthly rent payments until GovGuam and GWA vacate the premises.

The federal government, which owned the land for decades, including when it was an Air Force communications annex, still has an interest in the Dededo property, according to the U.S. Attorneys Office, which stated only a federal judge can decide cases related to federal land ownership.

The United States has a particular interest in the resolution of this case because Core Techs counterclaims threaten to adversely impact the chain of real estate title under which the United States reserved a reversionary interest in real estate if not used for public benefit, specifically a wastewater treatment plant that serves U.S. facilities at Andersen Air Force Base and Marine Corps Camp Blaz, Assistant U.S. Attorney Mikel Schwab told the Superior Court last August.

Even if the property on which the plant sits is no longer owned by GovGuam, it is at a minimum encumbered by the federal lease and easements that allow GWA to operate the plant, Schwab stated. If defendants wish to challenge the United States interests in and title to real property they must bring an action in federal district court.

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Core Tech wants at least $130M and rent in government land dispute - Guam Pacific Daily News