By Gemma Q. Casas
Variety News Staff

THE House of Representatives and the Senate in a joint session yesterday adopted a resolution granting approval to Marianas Resort Development Co. Inc.’s request to lease for 25 years 136.5 hectares of public land on Tinian where it plans to build a golf resort with a casino.
MRDC will build an 18-hole golf course, a hotel and casino, guest cottages and make related improvements on the 1.365 million square meters of public land within the next two years.
Joint Session Resolution 15-4, which deals with MRDC’s lease agreement with the Department of Public Lands, was introduced by Rep. Edwin P. Aldan, Covenant-Tinian and chairman of the House Committee on Natural Resources, and Sen. Maria Frica T. Pangelinan, D-Saipan and chairwoman of the Senate Committee on Resources, Economic Development and Programs.
Except for Rep. Candido B. Taman, R-Saipan, all present lawmakers voted in favor of JSR 15-4.
Reps. Jacinta M. Kaipat, Covenant-Saipan, and Absalon Waki Jr., Covenant-Saipan, were excused.
Among the senators, seven members voted yes. Sen. Luis P. Crisostimo, D-Saipan, abstained while Sen. Jude U. Hofschneider, R-Tinian, was excused.
The resolution states that MRDC’s project will substantially contribute to the future economic development of Tinian in terms of new investments and economic opportunities, thus reducing its dependence on the central government.
“Economic opportunity of this nature and magnitude is difficult to come by and. . . the people of Tinian availed themselves of this type of economic development through a referendum;. . . the Legislature is not aware of any impediment to the implementation of such a lease,” according to J.S.R. 15-4.
“The Legislature finds the proposed project in the best interests of the people of Tinian and the commonwealth and, therefore, grants legislative approval of the lease agreement for the initial lease term pursuant to Article XI, Section 5(d) of the Northern Marianas Constitution,” it added.
The 25-year lease is subject to extension of up to 15 years.
In the same session, the Legislature also approved Grace Christian Academy of Saipan Inc.’s request to extend its lease on a 14,255 square meters of public land on Navy Hill, for another 15 years.
The lease for a separate parcel of public land which the school uses as a parking lot was also extended for 15 years.
The terms of both leases run concurrently and will expire simultaneously on April 27, 2009.
According to the joint committee report on MRDC’s request, members raised concerns and questions before the final favorable recommendation on the lease deal was made.
The issues raised included the lack of an appraisal report in connection with the guaranteed annual minimum rental payment set at 1 percent of the fair market value of the land; increased public benefit obligations on the part of MRDC if the 50 percent deferment of the guaranteed annual payment for the first 10 years of the lease is granted, among others.
In public hearings held on the lease plan, several witnesses opposed it and recommended that private land be leased instead.
Others believe the public land leased to MRDC would better be developed for homestead purposes since two-thirds of the island’s land area is already leased to the U.S. military.
Subsequently, more negotiations followed to accommodate all the concerns raised by the different parties.
The members of the gaming commission of Tinian, which issued MRDC a conditional casino gaming license traveled to South Korea in March 2007 to investigate MRDC’s declarations regarding its casino gaming license application, financial condition and status.
“The joint committee has been informed that the Tinian gaming commission plans to approve MRDC’s casino gaming license once all the conditions of the license are satisfied by MRDC, which includes securing a public land lease,” the committee report stated.
The proponents of MRDC’s Matua Bay Resort project, are infusing an initial $75 million to build the facilities, which include a 300-room hotel.