House minority to block lease extension initiatives

The minority bloc in the House of Representatives is opposing the passage of two initiatives that aim to extend land leases up to 75 years.

House minority leader Rep. Arnold I. Palacios said his group does not support Senate Legislative Initiative 14-3, which seeks to extend land leases of private land from 55 years to 75 years, as well as House Legislative Initiative 14-10, which extends public land leases from 25 years to 50 years.

“We might as well sell it if we extend it to 75 years,” quipped Palacios yesterday.

He said efforts to extend land leases are a way of disenfranchising the indigenous people in the Commonwealth.

“We’re opposing it because we don’t believe it’s necessary to dilute the land alienation provision in the Constitution. This is indigenous land, very limited, very scarce, very valuable and we can’t afford to play with it,” said Palacios.

Citing land alienation as reason for the CNMI’s poor economic showing is a lame excuse, he said.

“That’s a lame disguise to eventually disenfranchise the indigenous people. As elected officials, we are here to protect the rights of our indigenous community,” he said.

SLI 14-3, authored by Rota Sen. Diego Songao, amends Article 12 of the CNMI Constitution.

It said that extending land lease period from 55 to 75 years “will revitalize major investments projects in the Commonwealth.”

“Such change will also revive the real estate market, benefiting landowners, real estate brokers, and investors,” it said.

It further said that longer lease period will facilitate banking and other lending institutions in funding major development loans, mortgages, and enhance business opportunities as a whole.

Meantime, HLI 14-10, introduced by House Committee on Commerce chair Rep. Martin Ada, aims to amend Article 11 of the Constitution to increase the leasehold interests in public lands from 25 to 50 years.

Ada, in the proposal, cited that government leases such as Hyatt Regency and Grand Hotel would be expiring soon and the government “will be left with the dilemma of disposing of such developed properties.”

Ada believes that the government is not capable or competent to manage such properties.

“Accordingly, it would be in the best interest of the Commonwealth to increase the term of leases of public lands so as to allow the proper people or entities to manage such developed properties or establishments,” he said.

He said that extending it to 50 years would further create stability within the local real estate market and generate revenues for the Commonwealth.

If voted by three-fourths of the members of each house, the initiatives would be placed on the ballot for the people to ratify at the next general election.

SLI 14-3 has passed the Senate and is now up for discussion at the House during a session today. The House, meantime, has adopted HLI 14-10.