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Lease term extension needs charter revision: Governor
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Posted on Mar 31 1999
Gov. Pedro P. Tenorio is not keen on a proposal to ease land lease restriction as a way of attracting big investors to pour in fresh capital into the slumping economy of the Northern Marianas.
A director of accounting firm Burger & Comer has prodded island officials to relax the current lease term for private and public lands in order to lure big business, especially at this time when investments come in trickles.
According to David Burger, the 55 years limitation is impeding Chinese and US investors to put up businesses in the Commonwealth.
He cited the case of Outrigger hotels which skipped CNMI from its expansion plans. The hotel chain developer has expanded its investments in Hawaii, Majuro and Belau, and soon in neighboring Guam.
The NMI Constitution prohibits land ownership by foreigners in the Northern Marianas but allows land lease of up to 55 years for properties owned by the government.
There are approximately 5,790 acres of public lands available on Saipan, or about 19 percent of the land mass on the island, according to Burger. The island of Tinian has over 9,000 acres of unused government-owned properties, while Rota has 8,258 acres available public lands. It is not clear, however, if these public lands are suitable for commercial development.
However, the governor said he would rather keep his hands off unless the indigenous people decide to lift the restriction.
“It’s up to the people if they want to take the initiative to change the constitution,” the CNMI leader said. “The constitutional provision was decided by the people and only them can make any changes in the law.”
The prolonged financial crisis that has pushed the islands into economic distress since late 1997 coupled with stringent business rules have dulled the attraction of the Commonwealth as an investment destination.
Businessmen on the islands have been pushing local leaders to lift restrictions in order to lure investors to pump in fresh capital into the sluggish economy.
