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Senate legislative initiative would allow private land leases up to 99 years; sponsor says financial clauses protect locals
Summary
Senate Legislative Initiative 24-03 was introduced to amend Article 12 to increase private land lease terms from 55 to 99 years and to require financial clauses aimed at protecting persons of Northern Marianas descent; public commenters told the Senate the 99-year term is optional and the bill contains reevaluation provisions.
Senate Legislative Initiative (SLI) 24-03, introduced Oct. 3, 2025, would amend Article 12 of the Commonwealth’s constitution to allow private land leases to extend from the current 55-year limit up to 99 years and would require lease agreements to include financial clauses intended to protect persons of Northern Marianas descent from exploitation and to ensure a fair share of upside gains, sponsor Senator Castro said on the floor.
During the public-comment portion of the session, Derek Sasamoto of the Commonwealth Economic Development Authority said he supports the initiative’s intent and described several provisions he said would mitigate risk for landowners. Sasamoto said the 99‑year option is not a mandatory lock-in for landowners and that landowners could choose shorter terms that fit their financial plans. He also pointed to a 20‑year “stop gap” reevaluation provision in the initiative and noted landowners could opt for reevaluation earlier than 20 years.
Sasamoto told the Senate the initiative includes financial clauses that consider both landowners’ protections and investor returns, and he characterized that balance as appropriate so agreements are “mutually beneficial” while reflecting market conditions. The transcript records Sasamoto saying the financial clauses “seem to protect not only the land owners, but also takes the investor returns into consideration.” He also stated, “if there's any concerns about the 99 years, landowners do not have to lock in the full 99 years.”
Senator Castro formally introduced SLI 24-03 during the bill-introduction portion of the Oct. 3 session and asked that it be considered for committee referral and further action. The transcript does not record committee referrals or votes on the initiative during the Oct. 3 session.
The initiative’s backers on the floor argued that longer lease options could help landowners better leverage property and provide investors with longer-term security to encourage development; opponents or formal concerns were not recorded during the session. The record shows the public comment in support and the sponsor’s formal introduction; additional details such as committee referral assignment, fiscal analysis, or implementation timing were not specified on the floor.
