Land lease terms stay according to lawmakers

Two key members of the Legislature have thumbed down appeals from the private sector for a longer lease agreement on public lands on the island from 40 years to 55 years, saying the existing system of granting a one-time 15-year extension should stay.

Rep. Manuel A. Tenorio, chair of the House Natural Resources Committee, said the scheme being followed by the government on land leases provide a review mechanism by both the Division of Public Lands and the developer.

Before the end of the initial agreement, any development can request a 15-year extension, but this is not mandatory that will tie up a developer even if he fails to meet the terms of the accord.

“What we have now is a good system,” he explained. “By giving them 25 years, you have check and balance in between.”

According to Tenorio, this system should stay because “at least it gives you ample time to reassess the situation.”

The representative was commenting on the idea being floated by some members of the local business community that the Commonwealth government should raise the lease agreement from 40 years to 55 years to give developers a longer period to their recoup investments.

At present, government land lease is 25 years with an optional 15 years extension which the Legislature must approve before the Division of Public Lands can grant it.

Sen. Juan P. Tenorio, chair of the Senate committee on Resources, Economic Development and Resources, echoed the need to maintain the current status quo, noting that the interest of the Commonwealth is at stake in the land issue.

“The first question any responsible policy-maker should ask is how would the local people benefit,” he said in a separate interview.

The senator stressed government land lease should be conditional which the developer must comply before one is granted an extension beyond the initial deal.

“It’s going to be on a case by case basis because…. I would make that conditional that they have to do certain things for the people,” Tenorio said.

He cited for example that if hotels request longer lease, the government can set the terms that its workforce must be 90 percent hire from the local labor pool. “It’s a two-way street,” the senator added.

Both legislators, however, don’t see any problems in granting lease extension to a resort, hotel or any other development provided that they agree to the conditions stipulated in the contract.

Rep. Tenorio said this is being done on a case-by-case basis in which it goes through review by the Legislature and DPL prior to approval.

“I support any action that will benefit the CNMI in general. We have to look at the land lease very carefully,” he said. “I am very pro-development especially with today’s financial crisis, every single investment is important for us to consider.”

Sen. Tenorio added that lawmakers “have always been accommodating” and that they always weigh the request for any lease extension.

Both legislators are currently reviewing the case of the financially-troubled Rota Resort and Country Club that has asked for a 15-year lease extension. This has drawn controversy after public lands officials cautioned the Legislature against hasty decision to approve the request.