‘Constitution vague on longer term land leases’

Because the CNMI Constitution is vague on public land leases of more than 40 years, the administration of Gov. Eloy S. Inos is inviting the islands’ hotel industry to provide their own legal opinion on the matter.

For months now, member hotels of the Hotel Association of the Northern Mariana Islands have been holding back on making future investments if they cannot get any assurances that their land lease agreements will be extended.

Without such an assurance, hotels whose public land leases are close to expiration said the uncertainty is putting a damper on their plans to improve amenities and raise hotel standards.

“We acknowledge that this issue is a complicated one given the fact that the intent for a longer term than 40 years in the CNMI Constitution is neither implicitly defined nor provided for. We further acknowledge the hoteliers’ years of investments in the construction, improvements, and including the hard work and sweat put into their hotels/resorts,” press secretary Ivan Blanco told Saipan Tribune.

Blanco said that although all hotels fully understand what is associated with leasing public lands through the lease agreements entered into with the Department of Public Lands, the administration is willing to work with hoteliers on how best to extend or renew their leases while at the same time adhering to the requirements of the CNMI Constitution and conditions of the lease agreements.

“The administration has already extended an open invitation to the members of HANMI whose leases are nearing the 40 years mark to voice their legal interpretations on this important issue. Gov. Eloy S. Inos expressed his desire for open talks with members of HANMI on this particular issue,” Blanco said.

Among HANMI members, Kan Pacific’s public land lease expires on April 30, 2018. It is pursuing a new lease with a commitment of some $30 million in added investment. The corporation owns Mariana Resort & Spa in Marpi.

Other hotels with land leases that are close to expiring are Fiesta Resort and Spa Saipan and Hyatt Regency Saipan in Garapan, Pacific Islands Club Saipan in San Antonio, and Kanoa Resort in Susupe.

HANMI president Gloria Cavanagh she said that HANMI welcomes and supports Inos’ invitation for the organization’s legal opinion on the issue.

“We welcome and support his response and extend to the administration our appreciation for the invitation to present our legal argument that would support renewal or new leases based on the CNMI Constitution,” Cavanagh said.

“We believe that we are close to completion of this summarizing the issues and look forward to sitting down with administration and possibly with the attorney general sometime this month,” she added.

In an interview with Perry Tenorio, managing director of the Marianas Visitors Authority, he expressed high hopes for the parties finally communicating.

“As industry partners, we are happy to know that the lines of communication with affected hoteliers are open in an effort to address this important issue. We hope that the end result of their negotiations would be beneficial to both parties and the CNMI travel industry,” he said.