News
Movie Towne, Port of Spain. FILE PHOTO/AYANNA KINSALE –
MovieTowne’s leaseholder Trinbago Commercial Development Company Ltd (TCDC) has paid the $3 million it was ordered to pay by the court in its ongoing legal battle against the Port of Spain Infrastructure Development Company (POSINCO).
On August 23, bailiffs took control of MovieTowne’s office and banquet hall as POSINCO claimed TCDC, a MovieTowne Holdings subsidiary company, owed $10,904,121.23 million in rent accumulated between May 2021 and August 2024.
TCDC however claimed that amount was inaccurate as it was based on a flawed valuation. MovieTowne multiplex, entertainment and commercial centre at Invaders Bay, Port of Spain, sits on land leased to TCDC by POSINCO.
The lease allowed for a rate review every five years and having started at $6,500, ballooned to more than $280,000 per month in 2021 and TCDC stopped making payments as the dispute was being addressed.
At a virtual hearing on August 26, before Justice Eleanor Donaldson-Honeywell, attorneys for TCDC and POSINCO trashed out an agreement which will stay in place until the High Court determines the rent dispute between them.
According to the order, TCDC had until August 28 to pay $3 million while POSINCO was instructed to not disturb the occupation of MovieTowne’s tenants pending the outcome of the High Court matter.
MovieTowne director Ryan Chin confirmed the money was paid before Wednesday’s deadline.
“It was paid prior to today (Wednesday). Everything is still presently ongoing. Our legal side is still in communication with our tenants.”
On August 27, MovieTowne wrote to its tenants asking them to pay all future rents to the company as usual. It said once the rent was paid, the tenants do not need to worry about any reprisal from the Port of Port of Spain.
In the letter, TCDC said the court order was based on the Port’s undertaking not to disturb the occupation of the tenants, pending the hearing and determination of TCDC’s application for interim relief and reminded the tenants the dispute was between TCDC and the Port.
“The legal claim filed by TCDC seeks a declaration that the lease is subsisting. It is the court that will decide this issue, not the Port.”
TCDC said it would continue to discharge all its obligations to the tenants, including observing the covenants made to them as their landlord.
“We recognise there may be some uncertainty and anxiety concerning the actions of the Port and in particular the payment of rent…
“We confirm with you that once the rent is paid to TCDC in the usual way, this discharges your obligation completely for the rent that was due and you need not worry about any reprisal from the Port.”
It said if PATT asked the tenants for rent, it was not obliged to pay and the company stood ready to protect its interest, the tenants’ and the landlord/tenant relationship.
It said if PATT lawfully claimed rents in the future that were paid to TCDC, it would pay the tenants back.
“We have been advised by our attorneys that this undertaking is legally binding on TCDC.”
Asked by Newsday what would happen if tenants decided to pay the money to the court instead of TCDC or POSINCO, Chin said, “The last injunction (stated) we are the only ones having communications with our tenants, and they are also still our tenants. So, therefore, the status quo should remain the same at present.”
He added the company was doing all it could to assuage tenants’s concerns and remind them that MovieTowne, not POSINCO, was in control of the compound.
“We have advised them that based on the fact that we are still the landlords, that all of the communication from outside is not to be entertained. And that is being advising accordingly. We’re just reassuring the client, the tenants of that and that’s basically all I could say at this point in time.”
Chin also addressed concerns raised by tenants about the upkeep of the compound.
Tenants have complained to Newsday of a lack of maintenance on the compound and accused MovieTowne’s management of neglecting the mall.
“The escalators not working. We had to beg them to fix the toilet and certain enhancements were supposed to take place but they were never done. Even the tenant map has not been updated. Stores have closed down years now and they are still on the map,” said one tenant.
Chin, in response, said the company faced problems beyond its control regarding the replacement of the escalators, but added those issues were being addressed even before the court issue arose.
“Work has actually been going on even prior to all of this that has been happening this week and last week. A lot of those different things were being attended to prior to all of these developments.”
