Senate President Paul A. Manglona, Ind.-Rota, told reporters on Wednesday that the Senate Committee on Resources, Economic Development & Programs is gathering information about all land lease applications and extensions still pending with the Department of Public Land, as well as those that will be terminated soon.
This, Manglona said, will assist interested developers who may want to respond to a request for proposals as soon as public land becomes available for new investments.
“We need to encourage investors to submit proposals,” he said in an interview.
Manglona introduced Senate Bill 17-50 last year to require DPL to publish an RFP not less than one year prior to the expiration of any public land lease.
“We want to make sure we have a level playing field for everyone,” he said adding that new investors should also get all the answers to their questions and to understand the laws here.
Citing a now abandoned public land that was occupied by Paupau Hotel years ago, Manglona said his bill will give the government a year to come up with options for such proprties.
Another lease on public land occupied by the Coral Ocean Point Resort Club expired last February, but it was granted a grace period that will end in August.
Suwaso Corp., which runs the golf resort, has applied for a 15-year lease extension but the Legislature has yet to decide on it.
There was a joint resolution that sets the terms and condition before the Legislature will approve the extension, but Manglona said they also want to know “how far they [the company] have to go to satisfy the resolution.”
He said the Senate wants to support the few Japanese investors that are still doing business in the CNMI.
“But we also want to know if they are still interested. If not, let’s open it up to other investors,” Manglona said.
He said the Legislature has to make sure the CNMI gets the best proposal for any new developments.
Just recently, Gov. Benigno R. Fitial informed Manglona of the Supreme Court ruling that “clears the way” for the Legislature to repeal or amend the Constitution’s Article 12 provision to permit transfers of leasehold interests that exceed 25 years.
Based on the court ruling, Fitial told Manglona that a change by statute rather than constitutional amendment could be made to increase the lease period from 55 years.
Manglona ,however, noted that “we don’t have a flood of requests for 55 years (lease).”
He added, “I think we need to set policies in place so that there is an understanding about what it takes to get a lease extension and we want to make sure that the law is applied to all investors and we want to make sure that these new leases will mean more employment and more development as far as public lands is concerned.”
