Some members of the community believe that the administration is leasing public lands at a price disadvantageous to the local people of the commonwealth.
Although the court already dismissed the lawsuit filed by four residents challenging the legality of the Laolao Bay land lease, concerned citizens still want to know how much DPL is charging for the lease of public lands.
A DPL report on land lease revenues between March 2008 and March 2009 puzzled Rep. Ramon A. Tebuteb, R-Saipan and chairman of the House Committee on Natural Resources.
From a consistently downward trend in revenues, there was sudden change in the figures last March, he said.
Tebuteb wants to find out what exactly happened with land lease deals during that period.
In an interview yesterday, Del Rosario said there is a difference between value and cost.
Some people, however, always look at the dollar amount when it comes to land lease deals, he added.
“All land leases are base on an appraisal of the value of public land,” Del Rosario said.
The value of the land, he added, is determined by its location and the availability of basic infrastructure and utilities in the area.
The price of a square meter of land along Beach Road is higher than the price of the same size of land on Mount Tapuchao, he said.
According to Del Rosario, the price of land cannot be higher than the cost of the project or investment to be established in the area.
However, in light of the investors’ economic hardship, DPL may allow the deferment of land lease payments up to six months, he added.
These investors still have to pay the balance, Del Rosario said.
DPL has an appraisal reviewer who makes sure that the cost of the land lease is closest to the appraised value, he added.
Del Rosario admitted that in the past there were many public land leaseholders who subleased the property.
But DPL has already banned such practice, he said.
“We have disallowed sub-leasing of public lands. Unless it’s purchased, public land cannot be subleased.”
