Island Equipment Land Co., a Corporation, and Pacific Retread, Inc., a Corporation v. Guam Economic Development Authority, a Public Corporation

Appellants sue as Guam taxpayers and citizens to set aside a 90-year sublease of certain public lands by defendant Guam Economic Development Authority (GEDA) to defendant Dillingham Corporation for use as a site for a shopping center.

Acting pursuant to statutory authority, the Governor of Guam leased the property to GEDA in 1966 for a period of 50 years on condition (1) that the property be “administered, maintained and used as light industrial areas and for no other purpose”; and (2) that it be sublet only “for light industrial use.” Consideration for the original lease was $1.00 and GEDA’s promise to use the property in “the promotion of the economic development of Guam.”

In 1967 the Governor agreed to an amendment to the lease adding additional land to the leasehold and extending the lease term to 99 years. Early in 1969 the Guam legislature terminated the Governor’s authority to lease public lands. Thereafter, on September 15, 1969, the Governor agreed to a “Clarifying Amendment” to the lease providing that GEDA “may use the demised land for any purpose included within and treated as an allowable use under M-l Light Industrial zone as determined in accordance with the…