MPLT decision to buy private property questioned

The chairman of the House Committee on Natural Resources is questioning the decision by the Marianas Public Land Trust’s board of trustees to purchase land to build an office rather than rent office space.

In a letter to Vianny Hocog, chairman of the MPLT board of trustees, Rep. Ramon A. Tetuteb said he is concerned about the agency’s decision to purchase land on Capital Hill to build an office rather that rent space after receiving additional documents.

An updated analysis comparing the merits of building an office versus renting space conducted by MPLT consultant Bruce MacMillan shows “extreme discrepancies from the first analysis,” Tetuteb said. Those discrepancies include rental square footage space; rental cost per square feet and rental value; cost of construction of building per square feet; and the opportunity costs.

MPLT purchased the private property for $68 per square meter, $3 less than the appraised value, according to Tetuteb.

The representative also questioned MPLT’s explanation that one of the reasons why they chose the Capital HIll property was because it had main road access, when in fact, the new documents show the land has a right-of-way issue.

“If main road frontage for public assess was the main criterion for choosing the selected site, it appears MPLT acquired property contrary to its own criterion, which raises red flags and questions regarding MPLT’s policy decision to purchase such property,” Tetuteb said, noting that there are reports of a personal relationship between a trustee of the board and the owner of the property—a conflict of interest.

The first analysis shows a gain of $315,551 for owning the property over renting, but the second analysis shows a gain of $41,992 for renting the property.

The representative inquired whether other options were considered during the year it took the board to decide to purchase property and build office space.

“Furthermore, the committee would like to know if MPLT explored the possibility of purchasing existing commercial buildings,” Tetuteb said. “There are many commercial buildings fronting the main public roads on Saipan looking for new owners. Another option is to purchase foreclosed buildings from the Commonwealth Development Authority.”