Update sought on land compensation claims

Gov. Juan N. Babauta gave the Marianas Public Lands Authority and the Commonwealth Development Authority until Aug. 24 to provide him the latest information and an action plan on land compensation claims.

In an Aug. 10, 2005 letter to MPLA chair Ana Demapan-Castro and CDA chair Tom Glen Quitugua, Babauta expressed his concern over the dwindling funds for land compensation and the long period that some landowners have had to endure awaiting compensation.

“From all reports, funding from the land compensation bond is nearing an end, but there are many right-of-way and other land compensation cases still pending,” Babauta wrote. “I am writing to you to ask for clarification of the amount of outstanding claims and for your recommendations [on] what further action can be taken to address these claims.”

The governor tasked MPLA to provide him a list by categories for each outstanding claim. He asked CDA for a plan of action to address the outstanding claims. He asked MPLA to explain how it plans to compensate landowners, including their recommendation on the advisability of floating another bond.

Three years ago, Babauta signed Public Law 13-17, or the Land Compensation Act of 2002, authorizing MPLA and CDA to incur a $40-million public debt for the settlement of land compensation claims against the Commonwealth.

About $28 million of this $40 million bond was allocated to land compensation payments.

Some $9.1 million was used for the Susupe adult prison project, while another $1.9 million was set aside for interim financing. The rest of the fund was budgeted for underwriter fees, amounting $584,000, and issuance costs including bond counsel fees, amounting $415,309.

A May 2005 report stated that about $15 million of the land compensation fund had been disbursed or set aside for certain land claimants. This amount includes the $4.41 million released to the heirs of Rita Kaipat several months ago, as well as the $3.45 million being reserved for the payment of the controversial Malite Estate land compensation.

More land compensation payments have reportedly been made since May 2005.

Babauta said he was concerned over who had received compensation and who had not.

Some landowners received other parcels of government land as compensation, but public land is becoming more and more scarce, he added.

Furthermore, Babauta demanded action on unresolved issues regarding rights-of–way and areas needed off-site for drainage. These problems were hampering road and other public projects for which the government had an ample stream of federal grant funds, he said.

“We need to break through this impediment to our economic progress,” Babauta added.

The governor made a similar request to the MPLA last month, as he signed a bill transferring a piece of land from MPLA to the heirs of Joaquin Cruz Lizama.

For over 20 years, the Lizama family had been waiting to be compensated for the 60,501 square meters of land taken by the government to build infrastructure in Koblerville.

House Bill 14-305, which became Public Law 14-78 upon signing by the governor, instructs MPLA to enter into land exchange agreement with the heirs of Lizama and deed to them—within 60 days after passage of the act—a fee simple title of public land in Saipan comparable in value to the land taken from the family.

“Although procedures exist to address the intent of this measure, both administratively and judicially, neither MPLA nor the predecessors in interest have resolved this matter for over 20 years. Accordingly, I have decided to sign the bill into law,” said Babauta.

“The administration notes, however, that there are more than 400 outstanding land compensation claims on Saipan, in addition to numerous outstanding land claims on Rota and Tinian. Accordingly, I urge MPLA to address these land compensation claims in a timely manner so that legislation such as this is not necessary,” he added.

P.L. 14-78 states that Joaquin Cruz Lizama, who died in 1944, owned and leased a total of 60,501 square meters of land in As Perdido to several Japanese businesses in the 1930s.

These properties were later taken by the Trust Territory government to construct the Kobler Field, road, and homestead in Koblerville.

The law notes that the Lizama heirs had repeatedly notified the lands title officer for the Marianas Island District that they were the rightful owners of the As Perdido properties. But their requests for a formal hearing were ignored.

“The only reply the heirs received was an oral reply, which essentially told them that Joaquin Cruz Lizama sold his properties to the Japanese citizens,” the law adds.

P.L. 14-78 maintains that the taking of the private land by the Trust Territory District Land Commission from Lizama was “improper and without fair compensation to the heirs.” Thus, the heirs should be fairly compensated.