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<\/p>\nGov. Arnold I. Palacios generally supports granting a new land lease to Suwaso Corp. to allow its Coral Ocean Resort\u2019s operation to continue for another 40 years, but concedes that the \u201cdevil is in the details.\u201d<\/p>\n
Palacios said in an interview yesterday that he has not seen the details of the proposed new land lease, but is generally open to the idea.<\/p>\n
He said the Department of Public Lands has already submitted the proposed lease to the Legislature and that he trusts DPL and the lawyers that help craft the proposal.<\/p>\n
Palacios believes the proposed lease was crafted in a way that would be beneficial for the community. He said he is going to look at the executive summary of the proposal.<\/p>\n
\u201cIt has to move on to the Legislature for legislative approval,\u201d said the governor, adding that it does not need his signature once it gets legislative approval.<\/p>\n
Palacios said he was actually the one who introduced the initiative pertaining to any new land lease, referring to Senate Bill 20-35, SD3, HD2 that he introduced in 2017 when he was the Senate president.<\/p>\n
The legislation, which was signed into Public Law 20-84 in 2018, increases the term of public land leases up to 40 years plus an extension up to 15 years, for a total of 55 years.<\/p>\n
The bill authorizes DPL to negotiate a new public land lease with certain existing public land lessees under new terms and consideration without publishing a request for proposal. It also grants the Legislature the authority to approve public land leases.<\/p>\n
Under the DPL proposal, Suwaso is allowed to continue its operation of the Coral Ocean Resort for another 40 years, with an investment of over $30 million. The company will be granted an additional 15-year lease extension if the initial lease is granted by DPL and is approved by the Legislature.<\/p>\n
DPL Secretary Teresita A. Santos submitted to the Legislature last March 11 a packet of documents for the Legislature\u2019s review and consideration of Suwaso\u2019s request to renew its land lease. The Legislature received the packet on Tuesday.<\/p>\n
Santos said Suwaso has sustained a good relationship with DPL and that the company has been complaint with the provisions of the lease and has kept its account current.<\/p>\n
Under the proposed new lease, Suwaso will pay an annual rate of 0.6% of the fair market value for the annual rate of 0.6% of the fair market value for the first 10 years and that will increase to 1.125% for the remaining term of the lease.<\/p>\n
In addition, the company will pay a percentage of its business gross receipts and contribute over $1.8 million in public benefits.<\/p>\n
Suwaso was initially granted a 25-year lease for lands in Unai Dangkulu containing a total area of 581,585 square meters, on Feb. 10, 1986, with an option to extend it for 15 years, for a total of 40 years. After the initial lease expired in 2011, the company opted to avail of its 15-year extension. It is currently on its 38th year. The 15-year extension will expire in 2026.<\/p>\n
<\/p>\n
Arnold I. Palacios<\/p>\n","protected":false},"excerpt":{"rendered":"
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