House Joint Resolution 17-19, which Torres introduced, is requesting DPL to review the lease contract between its predecessor, the Marianas Public Land Corp., and U.S. Broadcasting Board of Governors which runs the IBB.
Torres, Ind.-Saipan, wants to “completely terminate” the lease which he said is in violation of the CNMI Constitution.
He said the CNMI government should renegotiate for “new terms and better conditions, and back payments.”
DPL Secretary Oscar M. Babauta said IBB is leasing the public land for $15,000 a year, and is making monthly payments.
This issue, according to Torres, should have been raised many years ago.
DPL’s real estate division records show that the land’s annual rent based on the percentage of the market value now ranges from $24,540 to $32,720 annually.
The lease agreement was originally entered between MPLC and Marcom broadcasting company on May 1, 1981. The lease was reassigned on several occasions and the last assignee was the U.S. Broadcasting Board of Governors that runs the IBB.
That 10-year lease agreement provides for an option to extend three additional terms of five years for a total of 25 years that was to end in 2006.
Torres, in his resolution, said any lease extension needs the approval of the Legislature.
But he noted that the lease agreement indicated it could be extended “indefinitely” on a month to month basis after 2006 without the Legislature’s approval — this violates the 25-year limit set by Article 11 of the CNMI Constitution, Torres said.
The IBB has been paying the CNMI government $15,000 based on the appraisal in 2006, he added.
The appraised rental value of the government property that IBB has been leasing has already doubled based on IBB’s own appraisal, he said.
DPL, Torres said, should renegotiate and enter into a new lease agreement with IBB with new terms including back payments for any rent that was below appraised market value.
Babauta said his office is willing to negotiate a new deal but the IBB has not made any commitment yet.
