Chamber: Repeal of Article 12 will enhance Commonwealth economy

The Saipan Chamber of Commerce says repealing Article 12 will enhance the CNMI economy, benefit the people exponentially, and will not force individuals to sell their property.

The 150-member business group said this in support of House Legislative Initiative 17-7, allowing the people to vote to “continue” or “repeal” this constitutional provision.

Article 12 of the NMI Constitution restricts land ownership to persons of Northern Marianas descent.

House minority leader Joseph Deleon Guerrero (R-Saipan) asked the Chamber for comment on his initiative.

In response, Chamber president Douglas Brennan said the business group believes the CNMI’s economic landscape would be enhanced and stimulated “by eliminating the restrictive and suffocating effects current Article XII language now imposes.”

Brennan said land will always be an emotional issue but the Chamber as a business association chose to comment on the economics, the business, and personal implications of whether to put the repeal proposal to a vote.

He said banks are unwilling to offer loans in current investments, as original long-term leases are nearing expiration, thereby stifling growth by those that have already invested in the CNMI.

“Potential investment is stifled as new investors watch what is transpiring with those already under restrictive land ownership conditions,” Brennan told Deleon Guerrero in a Sept. 22 letter, a copy of which was obtained only yesterday.

The Chamber president also said individuals currently owning property and/or the home or buildings on that property cannot mortgage the property or secure bank loans based on the value of the assets to remodel their houses, renovate the business, fund their children’s college educations, address health and personal issues, or other financial matters because of the lack of land liquidity.

“CNMI real estate portfolios reflect the quickest de-escalation in value in any U.S. jurisdiction. This is the effect of Article XII,” Brennan added.

The Chamber is convinced if Article XII were to be repealed there would be an almost immediate response. “Investment in commercial, business, and residential areas would be instantaneous,” Brennan said.

He said it is time to move forward and prosper with unrestrictive land ownership through constitutional amendment as offered in SLI 17-10.

“With any repeal of Article XII, there needs to be a provision that will not, or should not, affect those transactions made 20 years ago where the possible repeal of Article XII would void those transactions as drafted into those lease agreements. The repeal of Article XII should only affect transactions made after the date of enactment of the repeal of Article XII,” Brennan added.

A survey among Chamber members showed that 75.6 percent of those who participated favored the repeal of Article 12.

Only 45 of the 150 Chamber members responded to the survey.