Fitial: Let hotels, golf courses own land

Gov. Benigno R. Fitial is proposing to allow existing hotels and golf courses to acquire through fee simple the public lands they are currently leasing from the CNMI government within 180 days after voters approve of such a move-a proposal that some lawmakers said is “bold” and needs careful consideration.

That initiative will allow, for example, Hyatt Regency Saipan, Coral Ocean Point Resort and Golf Course, LaoLao Bay Golf Resort, Rota Resort Golf Course, Pacific Islands Club Saipan, and Marianas Country Club and Golf Course, among other hotels and golf courses, to acquire the lands they are leasing fee simple.

While no lawmaker objected to the proposal, some said the Legislature has to really weigh the initiative to amend Article 11 of the NMI Constitution before presenting it to voters in the Nov. 6 elections.

Fitial shared his proposal with 23 lawmakers yesterday at a closed-door luncheon meeting at the Saipan World Resort in Susupe, paid for by the governor at a cost of at least $435 or $15 for at least 29 individuals.

“This is only a one-time [program]. My idea is to allow the existing lessees to acquire the property or fee simple within 180 days [after voters’ ratification]. That’s my proposal so that we can realize the cash.We’re talking big money if all of the properties that are now being leased by hotels and golf courses [are bought],” Fitial said in an interview after the meeting.

But the governor said it will be up to the Legislature if it wants to present such an initiative to voters.

Eight joint House and Senate committees were formed yesterday to look into the eight key issues that will grow the local economy, and one of those committees will focus on this so-called fee simple initiative.

Senate President Paul Manglona (Ind-Rota) said the governor’s proposal could have been an expanded form of his initiative that the Senate passed in December.

Manglona’s initiative transfers the disposition and management decision of public land golf course leases to the cash-strapped NMI Retirement Fund. It allows the Fund to lease these 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.

The Senate president said he supports having public hearings on the governor’s proposal. The earlier the public is educated about the matter, the better, he added.

House floor leader George Camacho (Ind-Saipan) said the governor’s proposal is a “bold move,” which he and others say will immediately boost the economy.

“It’s definitely a new way of thinking. It may not be acceptable to most, but the intent is to quickly infuse revenue, new money to stimulate the economy,” Camacho told Saipan Tribune.

Sen. Ralph Torres (R-Saipan) said at this point, it’s not about opposing or supporting the governor’s proposal but “about looking into its merits, its impacts.”

“No one’s objecting to anything because they have yet to really study the proposal,” he said.

Torres said the luncheon meeting gave lawmakers and the governor a chance to once again share ideas on how to save the economy, which now relies solely on tourism.

“We all have to work together. Having a meeting like this is good, but what’s more important is that we follow up and actually work on the things discussed,” he said.

The governor’s proposal covers public land leases on Saipan, Tinian, and Rota.

Rep. Froilan Tenorio (Cov-Saipan), who was not in the meeting, and other lawmakers continue to push for the legalization of casino operations on Saipan to infuse millions of dollars into the economy.

The CNMI government has seen dramatic decrease in revenues after the budget peaked in 1997 at $247 million because of the Asian economic crisis, the demise of the garment industry, and the pullout of Japan Airlines. By fiscal year 2012, government budget is down to only $102 million and may remain at the same level in 2013.

Present and absent

Of the 29 members of the House and Senate, only 23 were present at the leadership meeting.

Accompanying Fitial were Attorney General Edward Buckingham, Finance Secretary Larrisa Larson, special assistant for administration Esther Fleming, press secretary Angel Demapan, and the governor’s police escort.

Lt. Gov. Eloy S. Inos was not at the meeting. The press secretary said that Inos was in Guam for medical reasons.

In the Senate, two of nine senators couldn’t make it to the meeting: Sen. Luis Crisostimo (Ind-Saipan) and Sen. Henry San Nicolas.

Four of 20 House members were also not there: Rep. Froilan Tenorio (Cov-Saipan), Rep. Fred Deleon Guerrero (Ind-Saipan), Rep. Sylvester Iguel (Cov-Saipan), and Rep. Edmund Villagomez (Cov-Saipan). Rep. Ray Yumul (R-Saipan) came late.

The governor called for the joint meeting to share with lawmakers his economic ideas, including the establishment of a “thriving casino industry on Saipan.”

The meeting came a little over a year since their much publicized full leadership meeting that produced at least one revenue-generating law-the tourism incentive program whose rules have yet to be finalized for actual implementation.