Leasing at the Colon Free Zone
Resolution JD No. 002-2017 issued by the Board of Directors of the Colon Free Zone, whereby Lease Agreements of the Colon Free Zone are regulated, was published in Official Gazette of May 9, 2017.
It establishes the new rules for the Free Zone in relation to leasing and introducing the requirements for obtaining the same.
It also regulates the subject of subleasing, defaults and sanctions which shall be imposed in case of non-compliance of the agreements.
Grace Periods are regulated (periods that exempt the payment of rate of rentals, garbage disposal fee and security fee, without affecting the lease agreement and while performing adjustments on the leased plot of land); and deadlines for extensions authorized by the Executive Committee, being a maximum of twenty-four (24) months, and subsequently by the Board of Directors, not exceeding sixty (60) months, are established.
Petitions for Grace Periods must be submitted three (3) months before the expiration of the period, except in case of force majeure. The petition must include the following documentation:
- Explanatory report based on evidence on the need of the Grace Period to make the corresponding works (Performance Report of the Project).
- Updated schedule of the work, describing the corresponding periods.
- Quantitative details of the cost of the work.
- Details on the progress of the fitting of the land and/or development of the infrastructure and investments made, if any.
- Plans or its modifications, performed by a competent professional and approved by the Colon Free Zone and other corresponding institutions.
- Public Registry Certificate evidencing the legal representation and proxy, if any, with a validity not exceeding three (3) months.
- Good Standing Certificate from the Colon Free Zone.
In case of tenants having requested an extension of the Grace Period in due time, after resolution JD No. 002-2017 has been in effect, and the same has not been resolved, shall have two (2) months to file the aforementioned documentation and four (4) months for those tenants having Grace Periods or extensions.
This resolution entered into effect on the date of issuance, therefore tenants of the Colon Free Zone must be up-to-date in relation to the same.
LIC. RUBEN RODRIGUEZ C.