Power to lease out public lands pushed

Municipal mayors must be given flexibility to lease out 30 hectares of public land in their jurisdiction for commercial use as part of the incentive package to entice foreign investments, according to Rota Mayor Benjamin T. Manglona.

“We desperately need this flexibility. We need some incentives for investors. We need to be able to attract business with benefits,” he said in his comment to the Omnibus Labor and Business Reform Act.

Investors “need to see benefits not available in other jurisdictions. Accommodating them with land is key,” added Mr. Manglona.

Noting that the present land management system in the CNMI does not help improve the investment climate, he endorsed earlier proposal attached to a bill creating free trade zones here which had sought such power to be given to Rota and Tinian mayors.

He believed that with enough checks and balances in place, each island municipality can oversee management of public lands for possible commercial use.

“If we mean to assist business, then the simple reform of giving mayors a little public land to manage for possible investment be included in the Omnibus,” Mr. Manglona said.

Gov. Pedro P. Tenorio vetoed the free trade zone bill in February because of provisions inserted by the Senate which would have placed control of large tracts of land for such special site under Tinian and Rota mayor’s authority.

He maintained such lands do not necessarily have to be utilized for free trade zones, raising concern that it would violate constitutional provisions granting the Board of Public Lands the rights to manage and dispose public lands.

But Mr. Tenorio had urged the Legislature and the administration to work together in resolving the differences so that the plan to create special economic areas on each of the three islands would push through.

The House of Representatives in March passed a similar proposal, but again the Senate amended it to include the same questionable provisions — courting another possible veto by the governor.

There is no final action yet from the House on the new amendment pending a ruling from the Supreme Court concerning use of public lands in the Commonwealth.

But Mr. Manglona prodded lawmakers to pass the free trade zone bill to give municipalities “more scope to attract investors” and the mayors the control over some public land for commercial development.

Envisioned as a milestone for the Tenorio administration, the grand project was broached in early 1998 amid the worsening economic difficulties confronting the Commonwealth.

It would attempt to attract foreign investors by offering a package of incentives, including tax breaks and cheap land leases, which island leaders hope would diversify the economy and provide job opportunities for local people.