DPL, Rota Resort strike deal on lease extension

The Division of Public Lands has struck an agreement with the Rota Resort and Country Club regarding its request for a 15-year lease extension, but the deal has to be approved first by the Board of Public Lands and the Legislature.

Rep. Manuel A. Tenorio, chair of the House Natural Resources Committee, yesterday expressed hope that it will finally resolve the differences between the two sides to push a plan by lawmakers to grant the extension.

“They have come very close to addressing pending problems, particularly the lawsuits,” the representative said in an interview.

DPL and SNM Corporation, owner of the distressed resort, submitted early this week their joint recommendations to the legislative panel, along with the Senate Committee on Resources, Economic Development and Programs that will review the agreement before they approve the request.

Tenorio declined to divulge details of the agreement, but said he was “pleased” that they had ironed out most of the major problems, including lease payment, pending land disputes and some of the terms and conditions in the initial lease that SNM has yet to fulfill.

“It seems that they are moving forward and making progress,” he added.

But the legislator disclosed that public lands officials have asked the Japanese-owned resort to come up with a payment plan for overdue lease charges to settle hundreds of thousands it owes DPL for the use of parcel of lands on Rota.

This will be considered by lawmakers when they start reviewing the agreement.

Tenorio said they hope that a board decision will be made by early next month so that they can complete the proceedings that would give SNM additional 15 years on top of the 25-year initially granted in lease agreement.

“There are still minor problems that they need to address but I am glad that they have set aside the differences so we can move on,” he pointed out.

DPL has come under fire from legislators over apparent stalling by some officials on the resort’s request, but public lands officials have opposed a move to wipe off its debts to the government.

SNM has threatened to shut down without the extension, saying they need it as a guarantee to entice new investors it hoped would infuse fresh money for its operations.

Based on the financial records of the division, SNM owes $291,000 in unpaid rent and $180,000 in late fees. But the resort claimed it has paid the dues since the agreement was enforced in 1991.

Initially the division had pegged the total debts to more than $700,000, but went down to $471,000 after lease payments covering 1989 to 1991 were excluded, the time when the agreement had yet to be implemented.

The lands they are occupying also have been a center of dispute between the government and a local family on charges of encroachment on private property — a matter that DPL should face squarely and must not involve SNM, according to Tenorio.