Leases
The Authority's acting as landlord, is empowered to grant leases for lands and buildings located on the peninsula. Applications for leases are reviewed under the Tenancy Assessment System. This system derived from the CDA's Leasing Policy, ensures transparency and objectivity in assessing applications for leases. The system is based on six evaluation criteria, which, are biased against 'smokestack" industries and favours environmentally sensitive development of the tourism, knowledge based, and marine industry sectors.
The evaluation criteria for reviewing applications for leases are:
- The nature of the proposed business enterprise
- The professional and business profile of the prospective tenant
- The financial viability of the business enterprise
- Environmental Impact Assessment
- Other Impact Assessments (employment & foreign exchange - generation)
- Regulatory Compliance (building codes & other statutory - - approvals)
Leasing Terms and Conditions
Lease rentals are derived from the application of economic capital recovery rates to the value of the property as determined by licensed valuators.
Term of Lease
Under the CDA Act the Authority is empowered to grant leases for a term no more than 30 years with an option for renew for a further term not exceeding 30 years except with the consent of the President of the Republic Trinidad & Tobago.
Annual Rental
Open market value is the basis for all rents charged by the Authority. The open market rental value is determined by the application of the appropriate rental rate of return to the capital value of the property. Current rental rates of return range from a low 2% of capital for agricultural properties to a high of 5% for hotel resort properties. The capital return rates are subject to review by the Authority.
Rent Review
Leases for periods of 10 years and over will be subject to rent review by the Authority at five year intervals and will be based on an open market valuation of the property as determined by a licensed valuator.
Joint Ventures
The Authority, in furtherance of its practical investment facilitation approach, is prepared to consider joint venture initiatives that will realise the objective of transforming the peninsula into a vibrant economic zone.