ASG and McDonald's cancel Utulei Beach lease By La Poasa Samoa News Staff The close to one acre of land on Utulei Beach that was leased by the government to McDonald's American Samoa for its second restaurant is no more, after both parties mutually agreed to cancel the less than 10-year lease. Acting Governor Ipulasi A. Sunia sent a letter to the Acting Territorial Registrar on Thursday, Jan. 18 informing the office that the lease has been canceled. This was also revealed yesterday morning by government attorneys at the High Court during a hearing on the Senate's case against American Samoa 2000 Inc., McDonald's parent company, and the Executive Branch over the lease. "Governor Togiola Tulafono and Representative Agaoleatu Charlie Tautolo, CEO of McDonald's American Samoa have agreed to a mutual cancellation of the current Utulei Beach property lease between the American Samoa Government and the American Samoa 2000, Inc," said a joint statement from the parties yesterday. The statement said that both parties considered the cancellation of the lease to be "in the best interest of both parties and will allow the government to resolve issues involving the United States National Parks Service." "The American Samoa Government and McDonald's American Samoa remain committed to the sustainable economic development of the territory and will continue dialogue on mutually beneficial projects at an appropriate time in the future," the statement said. In High Court yesterday, a hearing was held regarding the Senate's motion for summary judgment in their case against McDonald's and the Executive Branch. The Senate wants the court to order the Executive Branch to bring the lease to the Fono for review. The government made known yesterday that the lease has been canceled, which makes the Senate's case moot because the controversy about the lease is no longer there. However, Jeff Waller of Roy J.D. Hall Jr. and Associates, representing the Senate, sought a ruling on the issue in lieu of an outright dismissal citing that the issue can happen again or "capable of repetition" if another lease comes up or involving other separate leases of government land. The court has taken the matter under advisement. The lease had required McDonald's to pay a little over $5,000 to ASG every month for a period of 9 years and 11 months. The lease also provided that McDonald's had the option to renew the lease for a preiod of 25 years. The National Park Service (NPS), a division of the Interior Department that oversees public parks including Utulei Beach, had advised the government to find other suitable locations for McDonald's restaurant after the lease was signed in 2005. NPS contended that the lease violated ASG's agreement to protect Utulei Beach for recreational use in perpetuity. After much debate, an agreement was reached in June last year between ASG and NPS whereby ASG would look for land to replace the land leased to McDonald's. The replacement had to be of equal or greater recreational and dollar value for public use. The government said last year it was proposing lands in Tafuna and Vaitogi to be converted into protected park lands to replace the land leased to McDonald's. After that, nothing was heard about the proposal. NPS and Congressman Faleomavaega, who have been against the lease from the get-go, have said that the requirements for replacement lands is quite high. Reach the reporter at la@samoanews.com.  © Osini Faleatasi Inc. dba Samoa News reserves all rights.