DPL blamed for delay in SNM lease deal “This is not a matter of having your cake and eating it too.” – Sen. Juan P. Tenorio

The Division of Public Lands drew fire yesterday from legislators dismayed over apparent stalling by some officials on their plan to grant a 15-year lease extension to the financially-troubled Rota Resort and Country Club.

In a joint meeting by the House of Natural Resources Committee and the Senate Committee on Resources, Economic Development and Programs, members criticized public lands officials for their inability to immediately resolve differences with resort owner SNM Corporation.

Although DPL Director Bertha C. Leon Guerrero took the cudgel for the division during the meeting, Board of Public Lands Chairman Tomas B. Aldan was conspicuously absent, disappointing most committee members who were told the official had been informed prior to the talks.

But the panel ordered public lands to sit down with SNM representatives to thresh out problems plaguing the current lease agreement of the resort which has threatened to close down if its request for extension is not granted.

“This is not a matter of having your cake and eating it too,” said Sen. Juan P. Tenorio, chair of the Senate committee, as he asked both parties to reach an agreement within the week.

His counterpart in the House, Rep. Manuel A. Tenorio underscored the failure by DPL to provide the Legislature the correct records when they voted to extend the lease in 1996 that eventually fell through.

“I am being more careful now,” he told the meeting. “Let us not make decision based on fraudulent records.”

Guerrero admitted committing errors at that time, saying it was on oversight from the division. “We are paying for it and we are now trying to correct the mistake.”

Most legislators agreed to give a deadline until June 15 for both SNM and the DPL to come up with a recommendation that the joint panel will consider before approving the lease extension hopefully by the end of next month.

The Japanese-owned resort has appealed to the Legislature for additional 15 years to its original 25-year lease agreement forged in 1991 in a bid to convince financial institutions to infuse more funds into the hotel and golf facility.

But Aldan has cautioned lawmakers against bypassing the Board on their plan to grant the request, noting the Rota Resort has yet to comply with some conditions stipulated in the initial deal.

SNM says it has fulfilled the lease terms: In a statement read during the meeting, SNM maintained the company has addressed the two concerns of the public lands, namely the 200-room requirement in the accord and the lease payment.

DPL claimed the company owes the division more than $710,000 in unpaid bills, but according to SNM the unsettled amount totaled only at some $500,000.

According to legislators, the division should take into account the $300,000 SNM paid to three families, whose homestead were occupied by the resort as well as the 18-month waiting period to settle the cases.

The resort, however, took its hands off a lawsuit lodged in 1994 by the Imamura family in Rota against DPL involving two to three hectares of parcel it is currently occupying, claiming it was never an issue.

The case is still pending and is scheduled to be tried in November, the company said.

“SNM Corp. has no part in it, and is at no fault, in this legal case,” said Shigeru Fukusawa, the owner’s representative, at the meeting. “We feel that these are two separate issues, and that a decision to grant our request for an extension should not be based on the outcome of this lawsuit.”

Accusing DPL of landgrabbing, House Majority Floor Leader Ana S. Teregeyo urged public lands officials to review the parameter of the SNM property to avoid further legal dispute as she noted that her family’s property within the resort was occupied by the division.

“We have a lot of problems with private properties being taken by the public lands,” she said. “We can’t continue to delay this (request) and we have to act on a clean-cut piece of legislation.”

Guerrero vehemently denied the charge, saying that those with claims on any parcel designated as public lands should verify these at the Land Registration office.

“It’s not the practice of the Public Lands to come in and invade private lands,” she told the panel.

Rota Mayor Benjamin Manglona, meanwhile, threw support behind the SNM request, prodding DPL to resolve the issue with the resort by June 15. “We are victimizing them today by putting them in jeopardy,” he said.

Strongly pitching its $100 million investments on Rota and the key role it plays on the local tourism economy, Fukuzawa said the lease extension would allow the resort to promote the island as well as draw financing for expansion plans.

“The current business environment and a remaining land lease term of only 17 years, makes it very difficult for SNM Corporation to obtain additional funding for its project expansion, and to attract business partners and future investors to join in its efforts,” he said.