KSAC unable to collect $817,000 in overdue rent
THE Kingston and St Andrew Corporation (KSAC) said it has been unable to collect $817,000 in overdue rent from more than half of its tenants and that much of this money has been owing for more than a year.
The KSAC said one of its tenants, who operates a wholesale business on Slipe Road, was responsible for $205,000 of this amount as the $15,000 monthly rental fee had not been paid in more than a year.
Leibert McKenzie, chief revenue officer at the KSAC, told the corporation’s finance committee that this particular tenant had been sued and was due to appear in court on March 13, when recovery of possession and recovery of amount outstanding would be dealt with.
“We have not been having a very good relationship with this particular gentleman. He owes us over one year rental. We can’t continue like that he wants to be there for nothing, so a decision has been taken to remove him, ” William Hasfal, chairman of the finance committee said.
In fact, the finance committee was informed last week that this Slipe Road tenant’s case was not unique. The meeting was told that of 45 properties owned by the KSAC in New Kingston, downtown Kingston, on the Half -Way-Tree Road, rural St Andrew and Bull Bay, 26 were in arrears.
These figures were calculated up to January this year.
THE KSAC noted that some of its tenants currently in arrears were required to pay minimal rental fees ranging from a low of $4.80 to a high of $110.
For instance, the KSAC said the lease for a property on Gordon Avenue is $4.80 per quarter, yet the leasee currently owes $179.20 Similarly, the KSAC said another of its tenants at East Queen Street was in arrears by a $110 in a case where the annual rent is only $10.
In addition, Leasees on a property the KSAC claims to own at Weise Road, Bull Bay, who should be paying $1,000 per month for house spots, have arrears totalling $223,000 00.
The KSAC is still trying to establish ownership of the property, and the tenants say they have been paying other people for the land.
McKenzie told the finance committee that the KSAC wanted to regularise the payments and was searching for the title for the Weiss Road property.
But Lincoln Evans, city treasurer, told the Observer that the KSAC was yet to establish ownership of Weiss Road. He added that the property which was owned by paupers, was transferred to KSAC ownership under legislation enacted in the 1970s but which was later rescinded. The 1970s legislation allowed for property owned by paupers to be vested to the state which saw to their welfare.