Stalemate between MovieTowne, Port continues
Senior Reporter
derek.achong@guardian.co.tt
There appears to be no temporary respite in the ongoing legal dispute between the developers of MovieTowne Port-of-Spain and the Port Authority of T&T (PATT) over control of the entertainment and shopping complex.
The Port-of-Spain Infrastructure Company Limited (POSINCO), which manages land held by the Port Authority of T&T (PATT), and Trinbago Commercial Development Company Ltd (TCDC) yesterday issued press releases in which they presented opposing views over the status of the dispute.
In its release, which was issued first, POSINCO claimed that it did not request that tenants pay their rent after High Court Judge Eleanor Donaldson-Honeywell left it open to them (the tenants) to make their payments to either of the companies or the court while the dispute was being determined.
“The company will continue to respect the decisions of the court and uphold the right of tenants to continue to operate their businesses without interference,” it said.
It also maintained that it still had control of the facility despite agreeing not to interfere with tenants or collect their rent.
“It must be noted that even after two unsuccessful injunctions, filed by TCDC’s attorneys, POSINCO retains its right of possession of the facility, in accordance with the Deed of Lease,” it said.
POSINCO also maintained that since 2021, it made every effort to resolve its dispute with TCDC over $10,904,121.23 in rental arrears before seeking to take control of the facility, two Fridays ago.
“However, no payments were made by the TCDC towards its rent,” it said.
“In the interest of its stakeholders and business, POSINCO was left with no choice but to take action,” it added.
Hours after POSINCO issued its release, TCDC, through its chairman Derek Chin, issued a statement challenging the former’s claims.
Alleging that POSINCO misrepresented certain facts and events, Chin described the company’s claims as misleading and disingenuous.
“As the architect, building and operator of MovieTowne, the premier family destination, TCDC remains in legal and operational control of the facility,” he said.
“We are committed to upholding the rights and interests of all employees, tenants, and other stakeholders, and we will continue to safeguard these rights in accordance with the rule of law,” he added.
The dispute between the parties relates to a lease for the 9.9 acres (4.0236 hectares) of land off the Audrey Jeffers Highway at Invader’s Bay in Port-of-Spain, occupied by the complex.
Before construction began on the complex in 2001, the monthly rent was reportedly $6,500 per month based on a rate of 1.5 cents per square foot.
The lease allowed for a rate review every five years.
In 2006, the rent was increased to $72,000 per month.
By 2021, the rental rate was set at $283,000 per month based on a rate of 65 cents per square foot.
In its substantive lawsuit, TCDC is challenging the latest rental increase, which was based on a report prepared by registered valuation surveyor GA Farrell & Associates.
In an affidavit, attached to its claim and obtained by Guardian Media, TCDC director Hadyn John Gadsby contended that the increase was invalid and under challenge.
“The claimant’s position is that the rent review carried out by the Farrell Report is irrationally high and is therefore invalid and void as it could not have been carried out in accordance with the special assumption agreed by the parties,” Gadsby said.
Stating that the premises should have been valued on the basis that it was a swamp before being developed by TCDC, Gadsby said that the company received a report from another surveyor, who estimated the monthly rental value to be $82,980.17 based on a comparison with other similar properties.
“At the time of letting, the premises were covered in bush, and vines, subject to severe water retention and the topography varied and significantly below the level of surrounding Port lands to the east,” he said.
“The report fixed the rent at an unlawfully high basis which unjustly enriches the Port,” he added.
He claimed the company paid $5,327,970.74 in additional rent based on the report and is requesting a rebate if it is successful in its case.
Through the lawsuit, TCDC is also seeking compensation for the loss of profits it sustained as a result of POSINCO’s actions.
After POSINCO took control of the facility, TCDC obtained an injunction stopping it from communicating with tenants, who were previously told by the authority that they had to make new arrangements with it over their continued occupation.
Last Monday, TCDC agreed to pay $3 million to the court while the case was being determined, while POSINCO agreed to not interfere with the operations of its tenants.
Justice Donaldson-Honeywell widened the order to include TCDC’s operations but declined to further clarify it when approached late last week.
The injunction is now expected to be reconsidered by another judge assigned to hear the substantive case.
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