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Lengthier land leases endorsed
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Posted on Dec 12 2006
The Fitial administration is endorsing amendments to constitutional provisions that limit leasehold for persons not of Northern Marianas descent.
Acting Gov. Timothy P. Villagomez, in a letter to the non-profit CNMI Enterprise Group, asked the organization to support a proposal to extend the leasehold term from 55 to 75 years and, at the same time, allow a landlord and tenant to terminate existing lease agreements and enter into a new agreement for the full term permitted under the Constitution.
These initiatives are pending in the Legislature. They have the support of the Governor’s Strategic Economic Development Council.
Villagomez also said that the clarification on the renewal issue should be done through constitutional amendment to give investors full assurance.
This statement was in response to the CNMI Enterprise Group’s position that “the easiest [and fastest] way” of resolving the investors’ dilemma with regard to leasehold interests is by enacting a statutory procedure for parties to terminate their existing leaseholds and enter into an entirely new lease with a full term of 55 years.
“Because of the uncertainty within the business and legal communities, SEDC and this administration concluded that addressing this renewal issue by proposed constitutional language would be the most effective means of providing the clarity and certainty desired by investors,” Villagomez said.
“We are hopeful you will endorse this approach. First, a constitutional amendment is being proposed to extend the leasehold term and it makes sense, therefore, to deal with the renewal issue at the same time. Second, I am sure you will agree that no statutory approach, no matter how detailed or well intentioned, can provide the same level of assurance as a constitutional amendment,” he added.
