THE Senate and the House of Representatives, in a joint session on Tuesday, unanimously approved the lease agreement between the Department of Public Lands and Suwaso Corp. for the 581,585 square meters of public land occupied by Coral Ocean Resort in Koblerville.
All nine senators and 19 House members voted to adopt Joint Resolution 23-2, which allows Suwaso Corp. to continue leasing the land for another 40 years, with an option to extend the term for 15 years.
Rep. Vicente Camacho was excused.
The joint session was presided by Speaker Edmund S. Villagomez and Senate President Edith Deleon Guerrero.
The annual rental rate is 0.6% of the fair market value. Suwaso Corp. will pay DPL the base rent of $110,514 annually for the first five years of the lease term. The annual rental rate will increase to 1.125% for the remainder of the term.
The fee simple value of the premises applicable to the first five years of the lease term is $18.4 million.
The lease also requires Suwaso Corp. to pay between 1% and 1.5% of its business gross receipts and a $250,000 security deposit. Suwaso Corp. will also contribute over $1.8 million supporting the following public benefits:
–A $300,000 environmental improvement project for Agingan Beach, As Gonno Road and Isley Field to install streetlights and a new asphalt road within 144 months, and $300,000 for the maintenance of beach pavilions and restrooms.
–$300,000 for the beautification of the environment for which Suwaso Corp. will spend $7,500 annually to refurbish and maintain the driveway of As Gonno Road near COR.
–A $5,000 annual contribution to educational scholarships for eligible Northern Marianas descent recipients.
–A $5,000 annual contribution to the Indigenous Affairs Office and the Carolinian Affairs Office to support their activities for the promotion of local cultures.
–A $100,000 restroom at Dandan Softball Field.
–$200,000 for road safety initiatives in Precinct 1.
–Support for local farmers, ranchers and fishermen cooperative associations by purchasing local produce for hotel and golf facilities and restaurants.
Suwaso Corp. plans to invest $30 million in renovations of existing structures and new improvements on the premises, including those that were damaged by typhoons. These include the construction of 100 rooms, 100 villas, a Spanish garden, a golf starter building, a beach club, a new restaurant and an upgraded swimming pool.
During the public comment portion of the joint legislative session, Chamorro advocate Liana Hofschneider commended lawmakers and DPL. She also praised the Legislative Bureau for posting an electronic copy of the land lease agreement on a website that is accessible to the public.
She said she doubts whether the lawmakers will still be around to see the fruit of their decision after 55 years. However, “your decision today is very critical,” she added, emphasizing that “the property must provide access to local people.”
