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DPL terminates two public land leases
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Posted on Jun 10 2008
The Secretary of the Department of Public Lands has terminated land leases for MDC on Tinian and KSA Corporation on Saipan for breach of their respective agreements.
Each lease contains substantive performance provisions that must be met by lessees. Both companies, however, have failed to fulfill them, according to DPL Secretary John S. DelRosario, Jr.
The submissions include a business plan detailing the company’s recovery proposal, source of funds to finance the project, an architectural engineer’s rendering of the proposed project, among others.
MDC’s plan included the construction of a hotel, golf course, retirement village, agriculture and other major plans. KSA’s plan included a hotel with villas and condotels. Both companies were given extensions but again failed to submit the requisite documents spelled-out under their lease agreements.
“We regret the termination of these leases but we’re not prepared to entertain speculators who tie up public lands with no benefit to the Commonwealth. The CNMI is only interested in investors of substance with real investment funds,” DelRosario said.
“It would be an abrogation of responsibility if DPL continues granting extensions that would result in more extensions, a clear sign that lessees really don’t have the investment funds to infuse into the local economy,” he further noted.
“We welcome investors but only those who are ready to begin building and sharing their investments with the CNMI in real partnership,” he concluded.
The Department of Public Lands also previously terminated the JG Sablan Pagan mining permit for repeatedly failing to abide by the permit conditions. [B][I](PR)[/I][/B]
