‘Senate initiative on Fund would stop all DPL programs’

Public Lands Secretary Oscar M. Babauta said a Senate initiative transferring management decisions and revenue proceeds from public land golf course leases to the NMI Retirement Fund would essentially put on hold all Department of Public Lands programs, including long-awaited homestead projects on Rota and Tinian.

Babauta sent a two-page formal comment on Senate Legislative Initiative 17-13, Senate Substitute 1, Senate Draft 1 to the Special House Committee on Retirement Fund Issues.

Rep. Teresita Santos (Ind-Rota), chair of the special committee, said yesterday that the panel welcomes comments and recommendations from affected agencies such as DPL and the general public on how best to help prolong the Fund’s lifespan.

Babauta said SLI 17-13 protects DPL’s interest by mandating that 30 percent of proceeds from the golf course leases be kept by the department.

But he said this is the only protection provided.

“Considering that DPL currently receives 100 percent of proceeds from golf course leases, this is not in DPL’s interest,” Babauta told Santos.

Babauta said the biggest impact will be on DPL’s “ability to finally put to closure the long-awaited homestead projects currently been executed by DPL” on Rota and Tinian.

“Furthermore, the amendment would compel DPL to cease all work currently in progress, as both projects require substantial amount of financial resources to complete,” Babauta said.

Senate President Paul Manglona’s (Ind-Rota) initiative, which seeks to amend Article 11 of the NMI Constitution, also allows the Fund to lease public land golf courses for up to 99 years-instead of only up to 55 years-for $50 million or for an amount determined by two certified independent appraisals, whichever is greater.

Babauta said the initiative cannot impact current leases that DPL has with these golf courses.

“The current leases cannot be eliminated through constitutional amendment-such a move would constitute an impairment of contract because the golf courses would be without any ability to sue for the breach. Since the amendment can only apply prospectively, it is an open question whether the golf courses will want to renegotiate their leases with the Fund. The initiative, if passed, might have no practical effect right away other than taking revenue away from DPL,” Babauta added.

He also pointed out that public lands are only supposed to benefit people of Northern Marianas descent.

“With this proposed amendment, public lands would benefit all government employees regardless of NMD status. While the CNMI Constitution can be amended to reflect this, it goes against the spirit of Articles XI and XII,” he added.

The Marianas Public Land Trust also told the House special committee to give serious considerations to this and other Senate initiative which MPLT says “may do harm than good” and would make land lease interest income funds unavailable for other important programs and needs, among other things.