By Emmanuel T. Erediano
emmanuel@mvariety.com
Variety News Staff
SENATOR Manny Gregory T. Castro on Friday introduced Senate Legislative Initiative 24-3, seeking to amend Article 12 of the CNMI Constitution to increase the maximum leasehold interest on real property in the Commonwealth from 55 years to 99 years.
Article 12 restricts the sale or inheritance of land or real property to persons of Northern Marianas Descent but allows leasehold interests of more than 55 years — including renewal rights — except for interests acquired above the first floor of a condominium building for non-NMDs.
S.L.I. 24-3, which requires three-fourths of the affirmative votes of both the House and Senate before it can be placed on the general election ballot, also includes a new section setting criteria for acquiring leasehold interests:
– A provision for the payment of a fixed annual rent to the landowner, ensuring predictable and stable income.
– A provision for the landowner to receive a percentage of the gross revenues or net profits generated from the use, development, or commercialization of the land, ensuring participation in the financial success of the project.
– Financial terms that are fair, transparent, and enforceable, designed to protect landowners from economic exploitation while allowing reasonable investor returns.
– Financial clauses subject to review and renegotiation at intervals not exceeding 20 years to account for economic changes and land-use development.
– All lease agreements shall be filed with the appropriate Commonwealth agency and made accessible for review to ensure compliance and transparency.
The proposal also requires the enactment of a law to establish minimum base rent standards and profit/revenue sharing thresholds; provide definitions, valuation methodologies, and adjustment procedures; and enforce compliance while resolving disputes arising under such lease agreements.
In a statement on Monday, Castro said S.L.I. 24-3 will strengthen landowner protections while revitalizing economic growth in the CNMI. He said the proposed amendment is “designed to balance indigenous land protection with sustainable economic investment” by increasing the maximum term of private land leases while mandating financial protections for NMDs to prevent exploitation and promote long-term benefits for local landowners.
If ratified by voters in the general election, S.L.I. 24-3 will give NMD landowners the flexibility to enter lease agreements of up to 99 years, empowering them to compete in a modern, investment-driven economy without compromising ownership rights, Castro said.
He added that his proposal “does not automatically convert existing leases, nor does it require landowners to agree to the full 99 years. Instead, it introduces mandatory financial safeguards.”
These safeguards include:
– A fixed annual rent to guarantee predictable income.
– A performance-based clause, such as profit or revenue sharing.
– Periodic financial reviews at least every 20 years.
– Transparency and public filing of lease terms.
– Legislative authority to create minimum standards and enforcement mechanisms.
“This initiative does more than just extend lease terms — it puts local landowners in a stronger position to negotiate deals that reflect the true value of their land, with legally enforceable protections,” Castro said. “It’s about securing our land and our future.”
CEDA support
During the Senate session on Friday, Commonwealth Economic Development Authority Executive Director Derek T. Sasamoto praised the initiative for its “dual approach to landowner protection and investment readiness.”
“I support the intent of the initiative as it will allow landowners to better leverage their properties. It also gives investors a longer-term foothold in the Marianas, providing greater security for developing their investments,” Sasamoto said during the public comment portion of the session.
He added that the financial clauses in S.L.I. 24-3 are well-balanced.
“They protect landowners while also considering investor returns — creating a mutually beneficial arrangement. And most importantly, the 99-year term is not mandatory; it’s an option that landowners can exercise based on their personal financial goals and market conditions. The inclusion of a 20-year review clause also serves as a smart safeguard. Though landowners can exercise this option at shorter intervals if they choose, this is a thoughtful and flexible approach,” Sasamoto said.
“We’ve built a safety-first framework that protects landowners, increases transparency, and encourages responsible, long-term investment. I trust the people of the CNMI will see this for what it is — a smart and fair step forward,” Castro said.
