House rejects report on initiative extending private land lease from 55 to 99 years

By a vote of 9-6 with five absences, the House of Representatives rejected on Friday afternoon a committee report on a Senate legislative initiative recommending the extension of private land leases from 55 years to 99 years.

Rep. Joseph Palacios (R-Saipan), chairman of the Natural Resources Committee which reviewed the legislative initiative, expressed disappointment over the rejection of the report recommending passage of Senate Legislative Initiative 17-4, Senate Draft 1, House Draft 1.

Palacios said it does not make sense that the CNMI, which tries to lure investors to help its economy, does not even want to extend the number of years that foreign investors can lease private lands.

“The intent is to raise it (lease) to 99 years so we don’t have to bother with Article 12. Palau has already increased its leases to 99 years and their economy is better,” Palacios said during the session.

House speaker Eli Cabrera (R-Saipan) and Rep. Trenton Conner (R-Tinian) echoed Palacios’ sentiment.

“We need 99 years to get investors. Those investors who started leasing private lands in 1978 or so, now only have less than 20 years left. Some of them cannot make a decision whether to make $1-million or $2-million renovation on the property knowing that their lease would expire in less than 20 years,” he said in an interview.

Cabrera, Conner, and Joseph Palacios were among the six House members who voted “yes” on the adoption of Standing Committee Report 17-77. The others were vice speaker Felicidad Ogumoro (Cov-Saipan), Rep. Sylvester Iguel (Cov-Saipan), and Rep. Raymond Palacios (Cov-Saipan).

Those who voted “no” on the committee report were floor leader George Camacho (Ind-Saipan), Rep. Ray Basa (Cov-Saipan), Rep. Frank Dela Cruz (R-Saipan), Rep. Joseph Deleon Guerrero (R-Saipan), Rep. Fred Deleon Guerrero (Ind-Saipan), Rep. Rafael Demapan (Cov-Saipan), Rep. Ray Tebuteb (R-Saipan), Rep. Stanley Torres (Ind-Saipan), and Rep. Edmund Villagomez (Cov-Saipan).

Rep. Ray Yumul (R-Saipan) was present during the roll call at the start of the session, but left the chamber before the voting on the adoption of the committee report.

Four members were excused from the session: Rep. Froilan Tenorio (Cov-Saipan), Rep. Teresita Santos (Ind-Rota), Rep. Tony Sablan (R-Saipan), and minority leader Diego Benavente (R-Saipan).

Tebuteb said yesterday that his objection to the report was mainly because of his opposition to a legislative initiative to make changes to the constitution. He said he prefers that extending the private land lease be done through a popular initiative which has a higher voter approval threshold.

“I believe if it’s through legislative initiative, you only need simple majority of votes, but popular initiative will need two-thirds or three-fourths which is a higher threshold. I think that’s much fair than simple majority,” he said.

Camacho, for his part, said he voted “no” on the committee report “because there is no need to change Article 12.”

“Article 12 is in place to protect the cultures and traditions of Northern Marianas descents. And as a legislator, it is my duty to protect such cultures and traditions. Article 12 is not created for financial gain,” he said.

The committee recommended only the extension of private land leases from 55 to 99 years, but not a change in the definition of a Northern Marianas descent corporation.

The panel said the initiative should have only one subject, and not two.

SLI 17-4, introduced by Sen. Luis Crisostimo (Ind-Saipan), seeks to revitalize major investments in the CNMI, and revive the real estate market that will in turn benefit landowners, real estate brokers, and investors.

The speaker said because it was only the committee report that was rejected and not the initiative itself, members from the House or Senate can still introduce a similar initiative.

Press secretary Angel Demapan, when asked for comment, said the Fitial administration supports policies that are aimed toward enticing investors to do business in the Commonwealth.

When asked whether the administration recommends reconsideration, he said “this may be a possibility.”

“But it is something that the governor and lieutenant governor will be taking under advisement. The economic challenges we are facing are as real as it gets. Thus, we need to rise above the status quo,” Demapan said.

Over the years, proposals to extend permissible term for private land leases in the CNMI have been unsuccessful. The proposals included extending it to 77 years or 99 years.

Foreign nationals can own land fee simple in Guam, Hawaii, and the U.S. mainland. Palau and the Federated States of Micronesia offer 99-year leases for both public and private lands.

“Investors would rather go to areas where they can lease lands for a longer period of time. So Palau would have an advantage over the CNMI,” Conner added.